The council heard an update and financial briefing about the city‑owned Houghton Village property (formerly known as Station 27 site) and directed staff to finalize a development plan and investigate market options for the parcel.

Background: The city purchased the Houghton Village property in 2022 with a short‑term interfund loan of about $14.2 million. Staff issued an RFP earlier in 2025 and received two active development proposals; neither submitted additional revision material following staff’s request for updated financial scenarios. Appraisals in 2025 estimate the property at about $16.5 million under a three‑story assumption and $18.25 million under a five‑story (entitled) scenario.

What staff proposed: A development plan (a required comprehensive‑plan‑level entitlement document for the site) would set target ranges for residential units (staff’s site layout indicates roughly 145 units as a fit target), public open space, and ground‑floor community/retail space, with modest numeric flexibility (for example plus/minus 10 percent for unit counts and a floor‑area range for the podium retail). The plan would codify the expectations for a future development application and can be adopted by council following a public process. Staff also outlined three financing paths for the city’s outstanding interfund loan: (a) explore sale with development plan in place (appraisal indicates potential surplus after loan repayment), (b) sell without a development plan (lower appraisal scenario but still sufficient to repay the loan), or (c) retain the parcel and pursue short‑term financing (bond anticipation notes or other mechanisms) while seeking other funding solutions.

Council direction: After discussion, council members generally supported advancing a formal development plan (to be brought to a public hearing) and directed staff to explore market options, including working with a broker to test market interest and to explore financing paths in parallel. Council members emphasized that adoption of a development plan would not predetermine a sale; it would, however, provide a clear entitlement framework and could increase marketability. Council asked for follow‑up on whether appraisals and broker feedback were consistent and for a clear report back on financing options if the city retains the property.

Financial context: Staff emphasized there is no automatic decision to sell the property; any sale would return to council for approval. If a sale were pursued in the higher‑value appraisal scenario, the appraisal value could cover the outstanding interfund loan and leave a surplus available for city priorities. Staff and council discussed the potential to use any surplus for 2027–28 budget priorities, if available.