FAQs
How is this project funded?
The HRA is funding the project through a variety of sources. First, the owner households will purchase the home for around $305,000. The remaining gap between cost and sale is funded primarily through a $3.2 million grant from Minnesota Housing. Additionally funds from the Metropolitan Council Pre-Development Grant are supporting the St. Marks development. Other funding sources are being finalized but could include HRA Levy Dollars, Tax Increment Financing, and other grants from various agencies.
How many units will this develop?
The goal is to develop 27 owner occupied units. This will mostly be single family homes with a few two family homes to maximize use of larger lots available. This project utilizes recent updates the City's single and two-family code ordinance.
Is the HRA acting as developer?
No, the City is partnering with developers to construct the site. The HRA's role is to acquire sites and in the case of St. Marks develop do the site preparation to make developable lots.
What is the St. Mark's Development Project
The Property at 8630 Xerxes is currently occupied by St. Mark;s United Church of Christ. The HRA has entered into a purchase agreement to purchase the property redevelop the site for 16 units. This 4 acre site will support a typical cul-de-sac with a public street. There will be 12 lots created with 3 lots containing two-family homes. The remaining lots will have single family homes. The goal of the project is to work with emerging developers with limited experience. We hope to provide a ready to develop lots to these developers to help them gain the skills necessary to continue developing single family homes in Bloomington and the region.
The HRA is working closely with the Planning Division, Public Works and Engineering Divisions, as well as consultants to prep the site to be ready for home construction in late 2026.
What are the phases of development?
The BAH Program has three phases.
Phase 1 - The HRA owns 4 vacant sites. It intends to work with a developer or developers through a competitive RFP to develop the sites into 5 units.
Phase 2 - The HRA is partnering with Habitat for Humanity to develop 4 additional sites into 5 units.
Phase 3 - The HRA has a purchase agreement to redevelop 8630 Xerxes Avenue which is currently a 4 acre site occupied by St. Mark's United Church of Christ. This project will remove the existing building, construct a street and storm sewer, and replat the site to be developed in 16 units.