Kasson council approves resolution to pursue Minnesota Housing infrastructure grant for Castle Crossing

The Kasson City Council voted to approve a resolution supporting pursuit of a Minnesota Housing Finance Agency infrastructure grant to extend utilities and improve roadway access to roughly 22–23 acres of city-owned land near the cemetery, a parcel staff and consultants described as constrained by sewer, water and adjacent right-of-way conditions.

Brad (Hoisington and Kegler) and staff told the council the grant is competitive, offers construction funding and requires matching funds. Staff said the city could use the value of land as part of the match, and also discussed options such as deferred assessments against parcels when they are sold so that developers ultimately assume some of the cost; the council noted the program has approximately $7.75 million available statewide and awards are competitive.

A council motion to approve the resolution was made and seconded; the council voted by voice and the motion carried. Council members discussed the potential for a deferred assessment and noted that some construction or design costs may not be eligible for match under the program.

Next steps: staff will complete required application materials, document potential match sources (including land value and proceeds from partial property sale) and return to council with additional implementation details if the grant application is successful.