The Crookston Housing and Economic Development Authority (CHEDA) held a closed meeting at Valley Technology Park on Tuesday morning to discuss the purchase of lots possessed by Bob Herkenhoff located on Eickhof Boulevard.
Herkonhoff proposed a deal to CHEDA in mid-August of this year, which included four of his lots to be sold in hopes that it would open opportunities to young families or the possibility of new families to move into the community.
On these two parcels of land, Herkonhoff is set to receive 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. Herkonhoff is estimated to receive $10,000 per year from the tax reduction of these properties, which he anticipates will “offset” his donation as he nears retirement.
During the meeting, CHEDA members ultimately agreed to make an offer on four lots Herkonhoff proposed. “Three of them (lots) are away from the ponds and are usually for sale for around $25,000 on the east side of the street,” said EDA Director Karie Kirschbaum. “We’ve agreed to offer him $21,000 for each lot on the east side of the road.”
Each of those three lots is already equipped with electricity, water, sewer, cable, and natural gas. Board members see this purchase as cost-effective due to how quickly expenses can add up when installing all utilities into a property.
The fourth proposed lot is yet to be appraised. Once the appraisal is finished, the lot will be donated to CHEDA. “We will probably be looking to build with the school and next year do one lot like that,” said Kirschbaum. “We wanted to secure the rest of the lots so we can continue to build homes in the community.”
Kirschbaum noted that the board believes this street is in a great location, and it could be an ideal place for people to consider living shortly. “I think the whole board was happy to look at and is excited to continue to build,” said Kirschbaum. “We were happy to see all of the utilities are in place and that it’s such a great street to build on.”
Kirschbaum also explained that a big draw to this location for families looking to move is that these lots are adjacent to a couple of ponds, which could create lovely scenery and some fishing opportunities.
