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City approves transfer of two lots to Mitchell Area Development Corporation for Habitat homes amid public questions about the sale price
Summary
Council approved a transfer agreement that will move two city-owned lots to the Mitchell Area Development Corporation for eventual conveyance to Habitat for Humanity. Residents questioned the $1 transfer price; Habitat representatives described plans for owner-occupied townhomes and training for prospective homeowners.
Mitchell — The City Council approved an agreement to transfer two lots on the north side of East First Avenue to the Mitchell Area Development Corporation, which will in turn convey the parcels to Mitchell Regional Habitat for Humanity for development of owner-occupied homes.
City attorney Justin Johnson described the transfer as similar to prior transfers the city has used to facilitate Habitat projects. Under the agreement, the city transfers the lots to the development corporation, which conveys them to Habitat to build owner-occupied townhomes with attached garages.
Resident Steve Simpson asked why the city had purchased the larger parcel previously for approximately $1 million and was now transferring specific lots for a nominal purchase price. “As a taxpayer, I’m concerned about the city buying property and then transfer it to a corporation,” Simpson said.
Rachel Hegenbaugh, executive director of Mitchell Regional Habitat for Humanity, responded at the meeting: the lots are vacant and Habitat plans affordable, owner-occupied townhomes; the organization is starting homeowner-credit classes and partnering with Lutheran Social Services and local developers to prepare prospective owners. Hegenbaugh said Habitat requires families to complete credit and readiness classes before building.
Councilmembers said the transfer follows the city’s prior practice of using the development corporation as an intermediary for Habitat transfers but noted the city could, under state law, transfer directly to Habitat in future cases. The motion to approve the transfer carried by voice vote.
The council also approved related items on the agenda, including a surplus property resolution and a separate transfer and surplus for manufactured homes in the same broader transaction set. Habitat said it will not immediately build: it is recruiting and educating future homeowners and will start construction once parcels are formally in hand and project funding and scheduling are arranged.
The transfer drew a few public questions about transparency and price; staff and Habitat leaders said the lots are intended for affordable ownership and described next steps for outreach and homeowner readiness training.
