Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
St. Peter council approves exclusive negotiation period with North Country Cooperative Foundation for factory-built affordable homes
Summary
The council voted to give the North Country Cooperative Foundation a roughly 18-month exclusive right to negotiate on a pilot factory-built housing project intended to produce homes priced around $200,000 or less; staff and NCF described funding pathways including a state infrastructure bond and federal program opportunities.
The St. Peter City Council voted on Monday to grant North Country Cooperative Foundation (NCF) an exclusive right-to-negotiate for about a year and a half to pursue site control and funding for a pilot factory-built affordable housing project.
NCF representatives and city staff told the council the project aims to produce single-family, factory-built homes with a purchase-price target of about $200,000 or less, and that the exclusive negotiation period would allow NCF to apply for grant and bond opportunities that require some demonstration of site control. "Putting that in a price range of $200,000 or less," NCF staff said, describing the project's affordability goal.
Why it matters: staff and NCF said the exclusive period is intended to improve the project's competitiveness for competitive funding and to let the parties work toward a development agreement covering financing, infrastructure and location. Tory Clark West, executive director of NCF, told the council that having a formal commitment demonstrating project readiness helps scoring for programs administered by housing funding entities.
Funding and timeline: NCF outlined three near-term funding avenues staff think are promising: (1) a state-level Greater Minnesota infrastructure grant/bonding allocation the presenters cited at about $3 million for qualifying projects, (2) a federal pool of funds administered locally (discussed as roughly $20 million and managed by a nonprofit administrator), and (3) the Minnesota Impact Fund RFP (applications due in early July). NCF said most competitive decisions for the Minnesota Housing Finance Agency process typically come at the agency’s board meeting in December 2025, creating a lead time for planning and financing.
On financing tools and titling: NCF staff explained efforts to improve access to conventional secondary-market mortgages for factory-built or manufactured housing, describing both product design and legislative work nationally. "The prime path loan program is not income restricted," Tory Clark West said, explaining that the product and titling reforms are aimed at unlocking longer-term, fixed-rate financing for buyers.
Council concerns and site-selection: several council members expressed support for the project's goals while flagging location questions. One council member said they were "pretty against the idea of this going on the North Klein Street lot" and preferred a parcel on Traverse Road, arguing North Klein is intended for industrial and commercial uses; other members said location could be resolved later in workshops if the city enters into negotiations.
Vote and next steps: the council approved the exclusive right-to-negotiate agreement. City staff said the agreement would not obligate the city to sell property but would provide site-control evidence for funding applications; if funding and terms align, the city and NCF would negotiate a development agreement that spells out funding, assessments, and responsibilities for infrastructure build-out.
The council’s decision authorizes staff to proceed with the negotiation period; further public hearings or workshops on site selection, financing details and a development agreement were anticipated in the months ahead.
