A swath of unsold city-owned lots on the north end of East Grand Forks has the city's Economic Development Authority brainstorming ideas to convince potential residents to move there.
The EDA's recently formed marketing committee met Wednesday to discuss some ideas being explored by its members and others in the community.
Many of the city lots in question surround Valley Golf Course, which received a five-year tax abatement from the city in December, with representatives telling the City Council it is struggling to keep up with rising costs and taxes.
"The success of the city's development on the north end is tied to the success of the golf course and vice versa,"City Council and EDA board member Mike Pokrzywinski said. "The viability of the golf course and the profitability and financial stability of the golf course is important for us to offer residents."
Potential marketing ideas tied to Valley Golf so far include booking more sponsored golf outings and offering free golf course memberships to those buying homes in the area, formally known as the Waters Edge Development.
ADVERTISEMENT
That development also is the focus of a recently announced pilot program that would seek to spur home construction. On a trial basis, two builders were selected by the EDA Board to build three homes in the area. The city would provide a $100,000 construction loan for each house to be paid back upon the completion of the home.
If the program is successful, city officials have said it would be opened to qualified builders. The program homes would be built on city lots, another area where committee members think the city could increase marketing.
The lots in Waters Edge sell for $38,650 to $48,650 and include special assessment costs.
Two real estate agents attending Wednesday's meeting noted these lot prices are much less than in Grand Forks, where they say it's common to see lots selling for $40,000 to $90,000, not including special assessments, which can add $15,000 to $40,000 in costs to lot prices.
"The biggest things you've got going for you in new developments is the lot differentials," Re/Max agent Rhonda Vanatta said. "I'm still blown away at that compared to Grand Forks."
Vanatta and Greenberg Realty agent Stacey Galstad have been asked by the committee to help gather housing data that can be used to compare home prices between Grand Forks and East Grand Forks.
The data would be used for marketing purposes and include cost breakdowns with construction costs, lot prices, utilities, taxes and other items considered, EDA Director Paul Gorte said. The goal is to create an "apples to apples" comparison of homes on both sides of the river by working with a certified public accountant.
"Raw numbers don't necessarily tell the whole story," Gorte said.
ADVERTISEMENT
A initial breakdown compiled by the agents using a small pool of home sales shows a home in East Grand Forks costs slightly less than a home in Grand Forks-about 15 percent less in this analysis.
Moving forward, more data will be gathered for comparison, including other sources such as building permits.
