By MaryHelen Swanson

Had the standing-room-only crowd at the North Branch High School commons area last Thursday been able to vote on a city-owned housing development, one guess would be that it would have failed miserably.

The applause that came from the crowd, albeit a very civil group, said a lot about what the people of North Branch want for the future of the city.

It doesnít include ìworkforceî housing at the expense of taxpayers already living here.

A ìTown Meetingî as the gathering was called, was held at the request of City Councilwoman Amy Oehlers who wanted to get the pulse of the public on the subject of the cityís ESSBY development.

That development is a proposed industrial, commercial and housing project on about 400 acres northwest of town.
Most recently, the city has been in the middle of a controversy over an amendment to the cityís comprehensive plan that would allow for denser housing in the area north of 400th St.

The reason? Because the cost of the land purchase and infrastructure improvements has the city in debt some $7 million.

In order to make the project work and not put the burden on the city taxpayers, a housing development is needed on at least 100 of the acres in this project area.

That is so a developer can come in, purchase the land from the city, build an assortment of housing units and make a profit.

Mayor Gloria Karsky was pleased with the turnout last week.

City Administrator Joe Lynch explained that the project was already three years in the planning.

The city brought along its hired consultant Kirstin Barsness and she brought Sherry Harris from the Central Minnesota Housing Partnership. Both were there to explain the meaning of ìworkforce housingî and how individuals could afford homes, that look like every other home in a development, with a smaller mortgage.

The crowd listened quietly and patiently.

The ESSBY housing project is anticipated to include single-family homes starting at $220,000, senior condominiums starting at $120,000, townhomes from $120,000-$140,000, and twinhomes in the $160,000 range. There could be as many as 500 units.
When completed, it is expected the city will have the need for an additional police officer, because of the numbers, at a cost to the city of $60,000 (squad included).

It is expected that the housing project will encourage industrial development. As one presenter said, companies like to see roofs.
A recent meeting with school officials from Dist. 138 eased the cityís worries about the impact of additional students.

It was noted that the school district would appreciate an additional 76 students a year.

The part of the presentation that appeared to disturb the audience the most was the funding aspect.

A ìgapî in financing could cost taxpayers if the housing portion of this development is not completed.

The city has taken out two bonds, a temporary one for land purchases and one for the infrastructure improvements to 400th St.

If the 60 acres north of 400th are not developed into housing, from 2007-2009 the city will need to levy to cover the gap to finance a final bond in the amount of $659,000 each of the three years.

That would mean, on a home valued at $175,000, a tax increase of $171 per year (for three years). On a million-dollar commercial business, the impact would be $1,880 each of the three years.

On the other hand, if the housing was developed, at the rate of 50 units a year, citizens living here now should see a reduction in taxes of $23.22 per year (on a $175,000 home) and the million-dollar business would see a decrease of $242.55.

Community questions

Without stating names, as it was not a public hearing, one after another of the citizens got up with questions and concerns.
Many of the speakers received applause.

There were questions about the proposed bridge over I-35 at 400th and questions about bringing in industry.
One person did not want to be taxed for new homes coming in.

Mayor Karsky interjected that the project was not a ploy to extort money from the citizens, but to meet a goal of providing affordable housing and adding industrial space in the city.

One citizen asked how individuals were supposed to pay for a $175,000 home with $12-$15/hour wages.

The group learned that there are about 20 acres of available commercial land left in city limits, but that outside the limits that number could be 500 acres.

One person questioned the timing issue - building houses first then bringing in jobs? He was concerned with traffic also, and adding more to the problem before the Hwy. 95 bridge is finished.
A number of speakers reiterated concerns with traffic.

One man said he appreciated the fact that the city is trying to plan and add jobs, but he said government shouldnít be in the business of building homes. That should be left to private industry, he said. When he encouraged the city to get out of this development he drew loud applause.
ìIs this a done deal?î asked yet another city resident.

Administrator Lynch reminded the crowd that there still needs to be a 4/5th vote on the comp plan amendment - a super majority is needed on such an amendment. Lynch didnít anticipate there would be another town meeting on the subject.

One man, a resident of five years, asked how this project got to this point without the citizens knowing about it.

At a table near the front of the room one woman was heard to say ìpeople should read the paper, itís all in there.î

Another woman drawing loud applause commented on the affordable housing and the comparisons that had been made to Cambridge.

ìWe need businesses in North Branch before we have houses,î she said. She also said that, as an employee in the NB school system, more kids means layoffs and large class sizes.

Near the end of the town meeting, one passionate woman reminded the others that information about this project had been in the papers for three years.

She was on the committee to study the need for affordable housing, she said. She herself moved to NB 35 years ago as a single mother. If it had not been for an affordable home, she wouldnít have been able to live here, she said. She noted that she had been a business person in town and has been involved in the community.

ìPeople need a place to live,î she said.

Regarding the costs to the taxpayers, another man said he felt the citizens would be in favor of dropping the ESSBY project.
However, at this point, itís not a citizensí option; the future of this project is up to four council members and a mayor.

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