The city of Grand Forks bought a house, is flipping it and stands to lose about $50,000.
Nope, it's not a scandal; the city meant to do that.
Katie Brockpahler, a community developer with the Urban Development Department, said the goal was to buy an old house in the Near North Neighborhood, renovate it and sell it to someone that was going to live in it.
The house at 604 N. Sixth St. is nice and large and, she said, it stood a good chance of being converted into three rental units.
Funding came from a $1 million Knight Foundation grant to help revitalize the Near North, the city's oldest neighborhood and one most in need of a boost. Part of the money was specifically aimed at buying old homes.
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The 1,900-square-foot home cost $105,000 to buy, $90,000 to renovate -- more than expected, Brockpahler said -- and the city's asking for $145,000.
An open house and a neighborhood holiday party is set for 5 to 8 p.m. today, so interested buyers and area residents are welcome. Brockpahler said the neighborhood also is helping one of its members, Red River Valley Community Action, with a food drive and is asking for donations of perishable goods.
In helping neighborhoods, city leaders have discouraging rentals because they believe owner-occupants will be more committed to helping the neighborhood. One example was the down-zoning of areas near UND so landlords could not cram in more rental units, exacerbating the parking shortage.
In the Near North, the city created a program to offer low-interest loans to encourage homeowners to renovate.
A problem in the neighborhood is the homes are usually really old -- No. 604 was built in 1899, county records show -- and that can make renovation costly.
Ideally, Brockpahler said, the city would break even or come out a little ahead, but this is more about community development than profits. Once No. 604 is sold, she said, the city will report back to the Knight Foundation, so there's been no thoughts of the next home to buy.
Reach Tran at (701) 780-1248; (800) 477-6572, ext. 248; or send e-mail to ttran@gfherald.com .
