By Rich Larson
The City of Northfield is considering folding its Housing and Redevelopment Authority into its Economic Development Authority, a move city staff said would save money and sharpen the city’s focus on large-scale housing projects.
The Northfield City Council held a public hearing on the proposal Tuesday night but took no action.
Community Development Director Scott Wopota said budget pressure was one driving factor. The department recently cut two staff positions and consolidated them into one role overseeing both housing and economic development.
“We found a way we think we can reduce an FTE,” Wopota said. “One of the things that can help with that is looking for other areas to consolidate.”
Wopota said many similar-sized communities already combine the two bodies or place their HRA under the city council, as Northfield currently does.
He said the second reason was priorities. The EDA approaches development from a financial, systems-level perspective, and Wopota said the city wants its housing work to follow suit, focusing on larger projects such as redevelopment of the Archer site through tools like tax increment financing.
Under the plan, the city would shift some individual assistance programs to nonprofit partners. Wopota said the city intends to keep down payment assistance funding in its budget but have Three Rivers Community Action administer the program.
“If I’m direct and honest, I think they’re doing it better than we do it,” Wopota said.
In July, the HRA approved moving the city’s mobile home rehabilitation funds to Three Rivers, which Wopota said could pair the money with its weatherization program and bilingual staff.
Wopota said EDA members responded positively but raised concerns about spreading the board too thin. He said the city hopes not to add EDA seats and is reviewing state statutes on its options. The housing and economic development funds and authorities would remain separate.
Holly Hansen will start Nov. 2 as the city’s community development manager, overseeing both economic development and housing development.
During public comment Tuesday, residents raised concerns about following proper notice and procedural requirements. Wopota said he welcomed that scrutiny.
The proposal is moving through a four-meeting process. The EDA will review a more detailed draft later this month before the plan returns to the council in November for a possible vote.
Timing remains a challenge. New council members, who would become HRA members under the current structure, take office in January, while EDA terms end in the spring.
Rich Larson is the owner and General manager of KYMN Radio. Contact him at rich@kymnradio.net
