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Lakeville reviews $625,000 regional housing allocation, staff recommends committing funds to county program and Fisher property site prep
Summary
Staff reported a $625,000 allocation from the regional housing sales tax for 2025, outlined allowable uses and deadlines, and asked council whether to commit up to $250,000 to a county/CDA program and consider using remaining funds for site prep at a proposed senior housing project on part of the Fisher Broadgate property.
City staff told the Lakeville council on Dec. 8 that Lakeville’s 2025 allocation from the regional housing sales tax is $625,000 and reviewed eligible uses, reporting deadlines and timelines for committing funds. Staff said cities must commit funds within three years and utilize them within four.
Staff recounted that for 2024 the city worked with Dakota County to administer its allocation and that counties and the CDA have asked for a commitment again for 2025 to continue programs such as emergency rental assistance, single-family home improvement loans and radon mitigation. "They submitted us a letter requesting a commitment again for the 2025 allocation of up to $250,000," staff said.
Staff proposed that, if the council supports a county/CDA approach for part of the allocation, the city could commit $250,000 and reserve the remaining $385,458 to support a qualifying project. One option discussed was a senior apartment project on a portion of the Fisher Broadgate parcel; staff said engineers have been hired to examine grading and utilities and that city funds would be used for construction costs related to site readiness (grading, utility extensions and stormwater), not bond financing.
A councilmember raised a statutory-interpretation question about whether the sales-tax statute allows capital spending for domestic violence emergency shelters; staff said the bill author indicated no intention to exclude shelters and legal counsel is reviewing the interpretation.
Staff noted a mid-February timeline for a commitment decision and said they could present a resolution of support in early January if the council wishes to proceed. No formal commitment vote was taken at the work session.
