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Three Rivers lays out childcare, retail and housing options for city-owned 102 North Broadway site

Crookston City Council · May 19, 2025
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Summary

A Three Rivers housing analyst told the Crookston City Council that 102 North Broadway could host childcare 'pods,' retail space or housing, but new construction will likely require substantial subsidy; donating the city-owned site and pursuing Federal Home Loan Bank and LIHTC funding could make an affordable 24-unit project viable over several years.

Three Rivers analyst Chris presented the results of a community-engaged study of the city-owned 102 North Broadway parcel and recommended three principal reuse concepts: shared-use child care, ground-floor retail or restaurant, and housing — with affordable rental housing identified as the most fundable option if the city and local partners can marshal subsidies.

In a remote presentation to the Crookston City Council, Chris said stakeholders ranked childcare, storefront activity and housing as top needs. He described a child-care “pod” model in which multiple small providers share a single building, and noted that while such a concept can increase efficiency for providers, the rents small operators can pay typically will not underwrite new construction without public subsidy.

Chris told the council that a retail or restaurant use would fit downtown character but would face competition from vacant storefronts and likely be difficult to finance as new construction. Housing — whether market-rate, senior or affordable family units — would be expensive to build, but unlike small commercial or daycare uses, it can access state and federal subsidy programs if structured as affordable rental housing.

The analyst highlighted two funding levers for affordable housing: the Low-Income Housing Tax Credit (LIHTC) competition administered by the state (which rewards local contributions) and the Federal Home Loan Bank of Des Moines’ Affordable Housing Program (AHP), which awards grants (up to about $3 million) that can materially strengthen an LIHTC application. Chris said donating the site (an in-kind contribution) or preserving the vacant building at application time can increase competitiveness for those awards.

Chris also warned the council that assembling the necessary funding is a multiyear process with tight annual application cycles: community planning and an RFP this summer could lead to AHP and tax-credit applications in the coming year, awards in December, and — if successful — construction starting several years afterward. He recommended a public process to refine community priorities, an RFQ/RFP for developers, and continued coordination with potential nonprofit developer partners.

The council asked about pedestrian safety at the Broadway intersection and whether reconstruction timing with MnDOT affects site strategy. Staff confirmed the city acquired the property in recent months; councilors expressed a preference to remove a deteriorated building for safety but were also advised that demolition could jeopardize certain funding streams that favor reusing an existing publicly owned structure. The council directed staff to follow up with MnDOT and to pursue community engagement and a developer solicitation process.

The next procedural steps for the city are to hold public outreach on redevelopment priorities, consider whether to contribute the site to a developer, and prepare an RFP or RFQ that would allow applicants to propose concepts that strengthen funding applications.