The Petersburg Borough will enter negotiations with a local developer who wants to buy seven borough-owned lots between Severson Subdivision and Skylark Way.
Skylark Park LLC wants to develop the land into a major subdivision with roads and utilities that could provide cheaper housing options in Petersburg.
In 2023, a survey found that the town needs over 300 more housing units in the next decade.
Borough Manager Steve Giesbrecht told the Petersburg Borough Assembly at a meeting Dec. 2 that their vote would decide if the sale process continued.
“We’re still quite a bit a long ways away,” he said, “but this is an important step today to say yes, the assembly is interested in moving this forward…”
Assembly members agreed to move forward with the sale and will address remaining questions about the development project through an ordinance process in future meetings.
It’s not the first time the company tried to buy the land. The sale fell through last year because Skylark Park LLC said the land’s assessed value was too expensive for their project and would’ve made the improved lots less affordable for the average buyer.
Earlier this year, the borough changed its code to allow land sales below assessed or appraised value for development projects that benefit the public.
With Skylark’s application back on the table for this “public benefit” purpose, Manager Giesbrecht recommended that the assembly proceed with the sale by direct negotiations at half the appraised value, which came in at $55,500 total for all seven lots.
Nearly all of the lots Skylark wants to buy are appraised at between $13 and $15 thousand each. That’s quite a bit lower than last year’s assessed values.
Mika Cline owns a house next to the lots and testified to the assembly about the notably low price tag.
“The two lots next to my home, [the] market value is $14 thousand. Had I known that, not just making a guess on assessed value, I probably would have bought those years ago,” said Cline.
Manager Giesbrecht proposes the borough sell at half the value in order to reduce the price for future buyers of the developed properties; Skylark would be fully funding and installing infrastructure for roads and utilities at an estimated $1.7 million or more.
Vice Mayor Donna Marsh said it takes courage for the developers to put so much on the line.
“I would wish them every success, but I think we need to do it prudently,” she said.
Several questions regarding road construction, responsibility, penalties, platting, post-development sales and the project’s two-year timeline remain uncertain.
Marsh said she wants answers before the project proceeds.
“I think it would behoove us to get some of these answers ironed out before we commit ourselves to such a large thing. This is a massive project,” said Marsh.
She voted no on the motion.
Mayor Mark Jensen said pushing for housing that is more affordable is something he’d like to try in Petersburg.
“It’d be nice to have all the i’s dotted and t’s crossed before we start, but that would probably take longer than the process we’re going to go through,” he said.
In a 5-1 vote, with vice mayor Marsh opposed and assembly member James Valentine excused from the meeting, the assembly decided to proceed with selling the land to Skylark Park LLC through direct negotiation with Manager Giesbrecht.
But that’s just the beginning of the process.
The project will advance as an ordinance, giving more opportunities for public comment, addressing unresolved questions and solidifying development terms.
Assembly member Jeigh Stanton Gregor said answers to questions about Skylark’s development project, come next.
“For the variety of concerns we may have around that, that’s wired into the ordinance process moving forward, how to address some of those things,” he said.
The final sale price will be determined after the negotiation. The proposed price and other sale terms must ultimately be approved by the assembly.
