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Redevelopment commission approves option-to-purchase on Kronberg property, with paragraph change
Summary
The Rochester Redevelopment Commission voted to approve an option-to-purchase agreement for the Kronberg property, pending a one‑word amendment to paragraph 8; commissioners were told ROM costing and meetings with Baker Tilly will determine lot pricing and financing options.
The Rochester Redevelopment Commission voted to approve an option‑to‑purchase agreement for the Kronberg property south of town, contingent on a one‑word change to paragraph 8 of the draft contract.
Chair (speaker S1) moved to approve the option with the edit, stating he would make "a motion that we approve the option to purchase the real estate pending the agreement with the change in paragraph 8 to the word before instead of after." The motion was seconded and approved by voice vote; the chair announced, "The motion carries." The transcript records a voice vote only; individual tallies were not specified.
Why it matters: Commission members were shown a preliminary site concept from Club 720 Development Corporation and MB General Construction Services for a workforce housing subdivision that would be built on the Kronberg site. Approving the option bundles the property for further study and allows staff and the joint development committee to proceed with ROM (rough order of magnitude) costing and financing analysis before returning final terms to the commission.
Club 720 representative Ryan Chacey (S3) told commissioners the option would let the group "bundle" properties and keep flexibility on lot sizes and pricing while they identify financing levers. Leticia Pirtle (S6) of MB General Construction Services said the current draft shows about 64 parcels but could land between 29 and 64 depending on final design; she said the team will produce ROM costing that will account for utilities, roads and stormwater so the city can understand feasible lot prices.
Commissioners asked specific questions about target lot price, whether lots could be re‑platted to create larger parcels, and whether the option map included parcels north of the tree line. Staff and the consultants said infrastructure costs will determine a realistic price per lot and that survey work would be required to separate parcels if needed. The timeline for grant or financing applications will depend on the ROM costing and follow‑up meetings with Baker Tilly, a financial advisor the team will consult.
Next steps: The development team will produce the ROM costing, meet with Heidi at Baker Tilly to assess financing tools (including discussion of residential development funding available through the Indiana Finance Authority), and return financing scenarios and a finalized option agreement to the commission for approval.
Outcome: Option‑to‑purchase approved (voice vote); amendment to paragraph 8 to be made before final signature.
