Fate of Sawtooth Cottages Still Undecided

Submitted by newsherald on Wed, 07/23/2008 - 12:02pm

In spite of a special Economic Development Authority (EDA) meeting Monday, the Sawtooth Cottages Development project is still in limbo. 

Sawtooth Cottages, the housing development planned for land near the Cedar Grove Business Park, is meant to provide affordable, green housing for community residents. The project has been in limbo since EDA members questioned its financial viability in early June.

At Monday’s special meeting, Jamie Mehle, a representative of the city’s engineering firm, presented the bids for the development’s infrastructure. The lowest bid was $1,580,724, or about $44,000 per lot, not including potential bond interest. Ultimately the project’s financial success would be dependent on selling at least two lots per year on the open market to support the cost of installing infrastructure. EDA members agreed that moving forward with the project would be a risk in the current housing market. 

“Unless it pays for itself we shouldn’t go forward and I don’t see a way that it supports itself,” Tim Kennedy, EDA member said. “Bottom line, I don’t see how, economically, this can go forward.”

Sarah Hannigan, housing development director for Northern Communities Land Trust (NCLT), the group planning to build 10 affordable homes in the development was also at the meeting. 

“We are hopeful this project goes forward,” Hannigan said. “We are in support of any decision made, but we are hopeful that you can honor the agreement with Northern Communities Land Trust.” 

Hannigan said NCLT has been ready to start on the homes for almost a year and all of the funding is in place. She added that if the EDA decides to delay the Sawtooth Cottages project until the housing market improves, then the money NCLT raised may not be available. 

“Everything would have to be reevaluated.” Hannigan said.

After two hours of discussion EDA members decided to postpone their decision until the next regular EDA meeting scheduled for August 12. In the meantime EDA members will try to find out the interest rate for a bond, determine if there are further refinements to infrastructure costs that would bring the project to positive economic status, and ask the city and the county for input. 

“Another two to three weeks may be futile,” said Mike Littfin, EDA chair. “But we haven’t given up on it. We need direct input from others in the city and the county.”