Richland Wilkin JPA moves on Hankinson rent-to-own plan and updates multiple housing projects

The Richland Wilkin Joint Powers Authority on May 12 approved negotiating authority for a proposed two-year rent-to-own arrangement for homes in Hankinson and received updates on multiple housing projects across the JPA area.

Nathan Berseth told the board that the JPA is closing today on a Burchill house at 108 16th Street in Breckenridge, leaving one remaining Burchill home in that town. He also said one Silver Line home in Colfax closed last week and another is scheduled to close later this month; Thomsen Homes sold two Colfax units and has one left for sale. Jason Semerad reported showings in Hankinson—300 Prairie Drive had three showings in the prior two weeks and there has been limited activity at 305 Prairie Drive—but said price and interest rates remain barriers, with buyer expectations around $325,000–$350,000.

Berseth said Bob Wurl had spoken with Tracy Olson at the local ethanol plant about a potential purchase of Hankinson homes. He also reported that Bailey Hernandez and Carter Zettica asked to rent the Hankinson homes for two years at $2,000 per month, with $800 of that rent applied monthly toward purchase and a $15,000 nonrefundable option payment up front. Fred Strege said this structure "would work" and advised the arrangement could be set as a lease with an option to buy. The board voted to give Berseth negotiating authority to enter into such leases with an option to buy; the motion carried.

Berseth also updated the board that the Hankinson 8-plex is fully occupied, with rents reported at $1,200–$1,400 per month, and said the Hankinson Housing Authority plans further housing and intends to request a construction note from the JPA. On separate projects, Berseth said Cristaldo accepted an offer on the Rothsay home and that the Red House in Wahpeton is mostly sided.

On Hohenstein twin homes, Berseth and Amy Clark described interest in negotiating a global resolution that might include a JPA buyout; Clark said coordination with the City of Wahpeton will be necessary because the city holds an outstanding loan on that project. The board gave Berseth general consensus to proceed with negotiations.

Berseth reported on Mooreton’s development of seven lots supported by a $400,000 catalyst grant; Bell Bank is financing the remainder and has requested a JPA guaranty that would require the JPA to buy a lot annually if lots do not sell. Berseth said he is comfortable with a JPA lot-purchase guaranty on a 12–18 month cadence if there is a set price and the board authorized him to negotiate sale frequency and lot price.

The meeting record shows the board reviewed the Breckenridge Legacy project and asked that Wilkin County’s approved terms be provided to Amy Clark for follow-up. The items on housing sales, rent-to-own negotiations and the authorized negotiations on Mooreton and Hohenstein will move forward under the staff and board members identified at the meeting.