Grafton housing study finds strong demand; council approves $36,000 FlexPACE buydown for local shop

Administrator Nick Ziegelmann told the City Council on March 10 that a recent housing study shows very high housing demand in Grafton and a projected population growth of about 4 percent. Ziegelmann identified two development opportunities: Phase 2 near the Lessard and Central Middle School property, for which a cost analysis of required infrastructure will be obtained, and a second potential site about 150 feet off Golf Course Road where sewer already exists but water, gas and power costs must be evaluated.

Ziegelmann said state Senate Bill 2225 includes possible investment in utilities for rural developments serving communities under 8,500 residents; he estimated utilities would not be installed before 2026 and road construction would follow later to allow compaction. As part of local economic development action, the council approved a FlexPACE buydown for Byrdie's Gift Shop at 500 Hill Avenue. The Economic Development Committee recommended a $36,000 buydown (present value); Ziegelmann said the Walsh County Job Development Authority may contribute $10,000 but the city approved the full $36,000 to ensure funding if the JDA cannot provide its portion. The council approved the FlexPACE application by roll call vote (six yes, none opposed; two absent).

Council asked staff to return with cost estimates for infrastructure work needed to advance Phase 2 and to continue coordinating with regional partners on financing options.