St. Peter council declines to direct staff to negotiate CoNorth deal for Klein Street site

The St. Peter City Council on Nov. 24 rejected a staff‑recommended move to direct the city to negotiate a development agreement with CoNorth for a Klein Street site intended for higher‑density, manufactured unit workforce housing.

Ben Baker, identified in the meeting as the community development director, reviewed the project background and the staff recommendation to focus on the Klein Street property because it was city‑owned and would shorten the project timeline. Supporters, including Council member Carrie, said the site would advance workforce and affordable housing goals and that having people living closer to employment centers can spur economic activity.

Opponents, including Josh and Brad, argued the Klein Street location sits on reserved industrial land and that donating 10.5 acres there would sacrifice one of the city’s last large industrial footprints. Josh noted a valuation math the council had discussed and said the donation’s implied land value would represent a significant city subsidy. Council members also expressed concern about placing large affordable housing projects on the edge of town, preferring locations better integrated with existing neighborhoods.

Dustin and others suggested the council explore alternative city‑owned parcels (including a school‑district parcel previously purchased by the city) before committing to Klein Street. Staff said acquiring alternate sites could add months to the timeline.

The council voted on the motion directing staff to provide a development agreement for CoNorth on the Klein Street property. The roll call recorded Mayor Noel, Council members Johnson and Pettis in favor and Council members Ramp, Weisenfeld, Sharstrom and DVOS opposed; the resolution failed 3–4.

Council members said they remain supportive of pursuing agreements to expand affordable and workforce housing, but they were split on this site and the timing relative to other city priorities.