The East Grand Forks Economic Development Authority spent a major portion of its Dec. 10 meeting discussing strategies to sell the city’s remaining residential lots and how best to handle a lot held by Forks Builders.

Staff said Forks Builders holds one lot under a $1,000 earnest-money arrangement but that the city absorbed settlement-related costs totaling roughly $3,500 when the transaction was recorded (about $3,000 in realtor commission and roughly $500 in recording/closing fees). Forks Builders has asked whether the city would take the lot back or otherwise alleviate the company’s carrying costs so the builder can clear the property from its books.

“Part of that was the commission to the realtor that was paid,” staff said when describing the settlement costs. The board discussed multiple options: taking the lot back and paying another realtor commission when reselling it, counting the $1,000 earnest payment toward making the city whole, or declining to split the commission to avoid setting a precedent.

Staff also reported three separate inquiries for lots: one buyer interested in all available lots, another interested in a bulk of them, and a third seeking an outlot near the golf course. The board reviewed a spreadsheet showing current sale pricing, an existing 10% discount for buyers who acquire three or more lots (with a special 10% package applied if one buyer wants all 14 buildable lots) and estimated net proceeds after specials and typical closing/realtor fees.

Board members discussed alternatives to simple sale: a sealed-bid or RFP process to evaluate development proposals, setting a reserve/minimum price for auctions, and distinguishing between lots ready to build and larger outlots that would require substantial infrastructure investment. Staff noted wastewater lift-station capacity and special-assessment questions might influence how an outlot is offered and whether infrastructure costs should be included in initial pricing or addressed via specials as development proceeds.

The board agreed to inform interested parties of the existing rules (including the 10% bulk discount) and asked staff to solicit formal offers and proposals. One member moved that staff may proceed to offer the all-14-lots package under the current 10% discount rule; the group also kept the matter under unfinished business for further review and directed staff to bring any formal requests from Forks Builders or other buyers back for board consideration.

Board members repeatedly emphasized they did not want the city to set a precedent that would obligate future taxpayers to absorb developer commissions or to give away public assets without recouping costs. Several members said they preferred a measured approach—using an RFP or sealed-bid process—to avoid taking a large immediate loss while encouraging development and returning parcels to the tax roll.

Staff will proceed to contact interested parties and report back with formal offers, RFP drafts or other recommended sale processes for the board’s review.