A significant portion of the meeting was dedicated to a proposed housing development agreement with New Leaf, a housing development organization. The council considered granting New Leaf an exclusive right to negotiate, which would provide the organization with site control to apply for funding, particularly from the Minnesota Impact Fund. Representatives from the North Country Cooperative Foundation (NCF) presented their affordable housing model, focusing on single-family homes priced at $200,000 or less. This initiative aligns with the city’s housing goals, offering an innovative cooperative ownership model.

The cooperative model, as explained by NCF representatives, allows residents to transition from renting to ownership, or to downsize, while gaining skills in cooperative management. This model differs from traditional homeownership and aims to offer a more accessible path for residents. Questions from the council addressed concerns regarding the community’s perception of ownership and the financing mechanisms involved. Discussions also covered the timeline for funding application responses, with decisions expected in December from the Minnesota Housing Finance Agency.

The council’s debate included the financial aspects of the proposed development, specifically the availability of 30-year loan options for buyers above the area median income. Clarifications were sought on property titling under Minnesota law, with assurances given that these details would be addressed in development planning.

Discussion also extended to manufactured housing and potential reforms to classify such homes as real property. This would allow homeowners to access federally backed mortgages, offering greater security in existing communities with fluctuating land rents. Support was expressed for broader financing opportunities.

The council considered the location for proposed housing projects, favoring the Traverse Road parcel over North Klein Street due to the latter’s industrial designation. The council explored multiple funding opportunities, including the federal Price funding and the Greater Minnesota Infrastructure Grant program, to support infrastructure development. Estimated infrastructure costs were around $3 million, and successful funding could cover significant expenses.

In other matters, the council unanimously approved an amendment to the ADA accessibility grant program. This change shifts the grant forgiveness structure from 15-year partial forgiveness to immediate full forgiveness, reducing administrative burdens. The program, funded through interest on revolving loan funds, not taxpayer money, received 11 applications totaling over $100,000, with a budget of approximately $55,000 set for 2025. Seven businesses were recommended for funding.

Additionally, the council addressed a license for a ramp in the right-of-way for a business receiving grant approval for accessibility improvements. The Historical Preservation Commission had recommended this installation, which would ensure long-term public space use while limiting city liability.

Further financial discussions included a loan application by Brycorp LLC for exterior and interior improvements at 123-125 South Minnesota Avenue. The council approved two separate loans for the project, with terms including a 0% interest loan for exterior work and a 5.5% interest loan for interior improvements.

The council also approved a loan extension for Springtouch on Rit Street, adjusting the interest rate to 5.5% over ten years, aligning with current guidelines.

Mayor Shanon Nowell presented proclamations for John Denver Day on June 13, 2025, and Parks and Recreation Month in July 2025, highlighting local activities and community events. The meeting concluded with plans to cancel a July 7 workshop due to a lack of quorum and scheduled future sessions.