By Logan Wells, News Director | Logan@kymnradio.net
The Northfield Economic Development Authority heard an update at its November meeting on the plans for the development of 5th and Washington. It’s been nearly a year since we last heard about plans for the development of the city-owned parking lot into more than just parking. Will talk more about the context of this project in a minute.
The new proposal focuses on a senior housing cooperative model. Thomas Herzog of Good Neighbor Homes outlined the evolution of the project, noting that earlier concepts—such as high-end condominiums and commercial-only options—proved financially unfeasible.
Listen to the News:
“We ultimately determined that the price to sell those [condos] was going to be far too high… We do not want to produce a bunch of units of housing that are too expensive to buy,” – Thomas Herzog of Good Neighbor Homes at the 11/24/2025 Economic Development Authority Meeting
Instead, the proposal to the EDA is for a 50-60-unit building with underground parking and public restrooms. The municipal liquor store is not included in the project; it is now exploring other options and locations.
Shauna Schmall of Astoria Cooperatives noted the benefits of the model they were proposing, which was for seniors 62 and older:
“Basically, we’re able to use the best financing that’s offered in the marketplace through an FHA HUD-insured master mortgage. It’s the best financing you can get. We’re able to lock a mortgage rate in the construction for 40 years at a fixed rate, and that transfers over to the membership mortgage. So it keeps the share prices reasonably priced, the monthly fees reasonably priced, and members are able to purchase in at about approximately half of the value.” – Shauna Schmall of Astoria Cooperatives at the 11/24/2025 Economic Development Authority Meeting
After the site’s development, the building would be member-owned and member-governed.
EDA members expressed support for the concept; however, several members expressed interest in a design that included some commercial space. Here’s EDA Commissioner Sean Allen:
“I just hope that it doesn’t become just a flat main-level parking housing project… that would be a huge miss for a city-owned piece of property.” – Sean Allen, Northfield EDA Member at the 11/24/2025 Economic Development Authority Meeting
Project Context
When we last heard an update on the project from City Officials in November 2024, it was for a mixed-use building that included moving the Municipal Liquor Store to the site, additional commercial space, apartments, and underground parking for residents. The spot would have included the same number of public parking spots as the current parking lot.
Designs for the project had been presented last year, and the city was actively seeking development partners. However, over the past year, elements of the project have become financially infeasible; hence the shift to a larger focus on housing and the senior cooperative.
The motion passed with amendments that encourage commercial space and prohibit street-facing parking. Additional funding contributions, Tax-Increment Financing, and other support are likely needed and require City Council approval. Next steps include refining design details and seeking City Council feedback in January.
Newscasts on KYMN air on weekdays at 6am, 7am, 8:30am, Noon, 3pm, and 5pm. If you miss it live, you can subscribe on your preferred podcast app:
> Click here to listen on Spotify
> Click here to listen on Apple Podcast
Do you have a news tip or press release? Send it to us email: Logan@kymnradio.net
