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BOB HERKENHOFF PROPOSES DONATION OF 4 LOTS TO THE CITY OF CROOKSTON

The Crookston Housing and Economic Development Authority (CHEDA) met Tuesday morning at Technology Valley Park.

Chief Manager of Nature View Development Bob Herkenhoff proposed donating land to CHEDA. Herkenhoff’s latest projects have involved developing housing in the northeast part of Crookston and with retirement in his future, he wanted to make a deal. “My goal is to retire at 65, and I’m about half a year away from that,” said Herkenhoff. “With four properties left, I figured I could do a deal with the city and give them these lots.”

Herkenhoff is looking to donate two lots located on Eickhoff Boulevard, hoping it will open housing opportunities for young families or the possibility of new families moving to Crookston. These lots are estimated at $25-50,000, and banks can accept the purchase as a down payment on a home. Herkenhoff made a deal in the past on Barrette Street that included 14 lots for donation. “It can be so hard for young families, and it worked out well in the last deal, and it’s something to try and help get young families in town,” said Herkenhoff. “This could be huge for the town to keep it growing.”

On these two parcels of land, Herkenhoff is set to receive a tax abatement for the next six years. He is currently on a 15-year agreement on these properties, and nine of those years are completed. Herkenhoff is estimated to receive $10,000 per year from the tax reduction of these properties. “This would help me offset my donation; it would also help to get housing going again,” said Herkenhoff. “It would also help me with retirement and help me shut down my development corporations.” The board will now suggest this proposal to the city council.

The board approved Crookston Housing and Economic Development to partner with the Minnesota Wild to advertise the city during home Wild games. The advertising will run during the 2023-2024 Wild hockey season. This will be featured in the programs of season ticket holders. The cost for the advertising is $5,000, which will come from the 2024 Crookston Housing and Economic Development marketing fund.

CHEDA was also presented with a 2023 audit report which included $1.6 million in net appreciable assets, $187,000 received in federal awards, and a current budget of $2.1 million.

The Economic Development report included updates on the Laura Musser Foundation. There is a $25,000 grant available for rural development. CHEDA is now looking for a project fit for that grant. “We have a few projects; one would be to insulate and finish the inside of the red barn building, the other is the amphitheater, and lastly, the park and playground equipment,” said Crookston Housing and Economic Development Executive Director Kari Kirschbaum.

CHEDA is now looking to make an offer to the city for the Washington school building even though the school district owns Washington School. “We must make an offer to the city. But for the city to decide, they want to know what will happen to the building, what will we do with it, the cost, etc.,” said Kirschbaum. “It’s a lot of discussion of what the possibilities are there.” CHEDA is leaning toward converting the building into a childcare center, and they have reportedly found additional state grants that can be used toward renovations.

The preliminary budget update was proposed to the board during the meeting. The budget included additional funding to be spent on childcare, housing development, marketing, and workforce development.

 

 

 

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