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Grafton council tables plan to extend utilities for new housing, seeks more cost detail
Summary
City Administrator Nick Ziegelmann outlined utility and paving estimates for proposed residential development areas, but Council members pressed for clearer funding sources and cost detail; the matter was tabled for more information.
City Administrator Nick Ziegelmann told the Grafton City Council on May 12 that the Economic Development Committee is prioritizing two housing expansion sites—Lessard Phase II and Kittson Avenue—with a third site near the golf course to follow if the Lutheran Sunset Home builds a new facility. Ziegelmann presented rough utility cost estimates of about $1.8 million for Lessard Phase II and roughly $734,000 for paving and utilities on Kittson Avenue, and said the city could prepare utility infrastructure first, cover it with gravel to settle, then add curbing and asphalt in a later phase, potentially scheduling utilities work in 2026 and asphalt/curbing in 2028. He said the buildout would allow about 55 lots.
Council member Brian Sieben questioned where roughly $2.3 million in funding would come from and expressed concern that lot prices might reach about $65,000. Ziegelmann said debt service from the sales tax fund was a possible source and that the city might create a tax increment financing (TIF) district so revenue would flow to debt service. Ziegelmann also noted that project costs have increased over time—he said costs for doing this type of project had risen from an earlier $1.8 million to about $2.8 million over the past ten years.
Jenny Dusek, the Economic Development Coordinator, briefed the council on related local development programs: the FlexPACE application approved earlier in the meeting for Xperience Health & Fitness at 1004 Hill Avenue, and the CHDO Sparks program, which she said helped build two homes in Lakota and two in Larimore (all sold). Ziegelmann said the Spark Bill can reduce the gap between appraisal and construction/sale price and that funding is available for building up to four homes per biennium.
After discussion about funding mechanisms, timing and lot pricing, Mr. Sieben moved to table the housing-infrastructure matter and asked Ms. Dusek to provide more detailed information at the next meeting. The motion, seconded by Mr. Wollitz, carried on a unanimous vote.
