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Two Harbors council schedules public hearing after extended debate over joint powers housing agreement
Summary
The council held extended discussion of a proposed joint powers agreement with the Lake County HRA that would let the county HRA operate within city limits; councilors pressed for clarity on governance, required resolutions and public hearings and agreed to schedule a public hearing and additional committee work before a vote.
The Two Harbors City Council continued discussion of a draft joint powers agreement with the Lake County Housing and Redevelopment Authority (HRA), with councilors and HRA leaders outlining competing priorities and seeking clearer decision-making steps.
Mayor Connor framed the agreement as an effort to "build trust or working a foundation for trust to move forward," and said the draft does include the Two Harbors city HRA. Adam Baumann, chair of the Two Harbors HRA, said the city HRA wants to "be an active engaged partner in any joint agreement that talks about any of the development that is being done" and asked for notification when projects affecting the city move forward.
Matthew Johnson, Lake County HRA executive director, told the council the county has prioritized low- and moderate-income housing in recent work and cited concrete spending: "We spent $350,000 to renovate Lakeview Apartments," and said the joint powers approach is meant to keep the partners aligned as projects advance. Johnson also described how projects often require multiple approvals — from the county board, Lake County HRA, the city council and the Two Harbors HRA — but said he is comfortable navigating that process if it helps deliver housing.
Councilors pressed staff and the city attorney to clarify statutory steps. Attorney Kostle and Administrator Nordin described two practical routes: (1) pursue the joint powers agreement as drafted, relying on Lake County HRA as the operating governance body while preserving council approval for projects inside the city; or (2) approve individual projects by piecemeal resolutions. Councilor Erickson emphasized the need to be explicit about the agreement's scope: "I just want to make sure everything's on the table before the council votes to understand the potential differing recommendations."
Rather than vote on the agreement at the meeting, the council directed staff to bring details to the housing committee, solicit input from the Two Harbors HRA and schedule a public hearing and potential vote at the next council meeting so members and affected parties can review proposed changes to Article 3 (governance) and the role of ex‑officio representatives.
