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Council approves $4.38 million subsidy for Westbury subdivision to produce 219 for‑sale homes

Rochester City Council · April 7, 2025
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Summary

Rochester approved a $4,380,000 contribution from the economic‑vitality sales‑tax fund to Bigalow Homes' Westbury subdivision, funding $20,000 per unit to support creation of 219 for‑sale houses, with deed restrictions and milestone payouts to protect the city’s investment.

The Rochester City Council voted unanimously on April 7 to contribute $4,380,000 to the Westbury subdivision proposed by Bigalow Homes under the city’s Home Ownership Creation Program.

Taran Edens, housing coordinator in the Community Development Department, told the council the program is funded from the city’s economic vitality fund (sales tax extension, 2023) and seeks to expand for‑sale housing supply. The Westbury proposal would produce 219 for‑sale homes; 100 of those would be priced between $350,000 and $380,000 (targeted at households up to roughly 115% of area median income) and the remaining 119 would be priced at or below $500,000. Edens said the request equals $20,000 per unit and that the city would pay in staged milestone payments tied to project deliverables.

"We're asking the council to approve a contribution of $4,380,000 to the Westbury subdivision to support the creation of 219 for sale homes," Edens said.

Edens described protections built into the master affordable‑housing agreement: milestone disbursements (25% at grading‑plan approval, 25% at the first building permit for phase one, 25% at first permit for phase two, and final payment when 90% of homes are constructed), recorded deed restrictions limiting resale terms and a seven‑year restriction preventing the homes from being rented during that period.

Council members pressed staff on affordability definitions, the program’s place in the city’s housing continuum and protections if market conditions change. Edens said the deed restrictions and staged payouts are intended to protect the city and to ensure the units are offered at the committed price points. Council discussion also referenced the housing needs assessment and prior program use in the Prairie Ridge subdivision (staff said the program supported about 201 homes previously and that roughly 19% of those units were below a specified ceiling value).

After questions and brief debate, council members moved and unanimously adopted the resolution to contribute $4,380,000 to Westbury. Staff will execute the master affordable‑housing agreement and monitor milestone compliance and resale restrictions.