Council approves purchase of vacant lots from bank

In an attempt to improve the housing situation in Dodge Center, the City Council approved the purchase of 12 vacant lots in the Greystone Subdivision from United Prairie Bank, an action recommended by the city’s Economic Development Authority.
City Administrator Lee Mattson explained that the bank is now the owner of the lots located between East Main Street and the railroad tracks. The subdivision was originally developed by Tracy Mullenbach for townhomes with four townhomes currently in the subdivision.
The bank, he said, is interested in selling the lots and approached the Dodge Center EDA/HRA to see if the city would be interested in buying the lots in an attempt to speed up development of housing in the city.
The lack of affordable housing in Dodge Center has been a continuing problem.
HRA Executive Director Amy Yochum told council members that the lots had been in foreclosure and the bank wanted the city to purchase the lots at a lower rate because it realized there were housing difficulties.
The HRA has said in the past that many new employees at Dodge Center businesses are unable to find affordable housing in the area and have been forced to commute which makes the city a less attractive place to work.
She said the EDA recommended that the city purchase the lots and then sell them to a developer who would develop workforce housing rental units on the site.
The bank originally wanted to sell the lots with the stipulation they be developed solely by non-profit organizations but the EDA recommended no conditions on the purchase.
The purchase price recommended by the EDA was $5,000 a lot for a total of $60,000.
“We’ve got to do something,” said Mayor Bill Ketchum regarding the lack of housing.
Mattson said the land could be purchased by the city using reserve funds. It would be a way for the city to get needed housing and also the property would be on the tax roll.
The council approved making an offer to buy the lots at $5,000 a lot with no conditions.
Two additional EDA-related issues were brought before the council.