The Anoka City Council has agreed to an extension with a developer hoping to build senior cooperative housing in Anoka.
This is the second extension on the purchase agreement between Hearth Development and the city of Anoka for 1.57 acres at the southeast corner of Second Avenue and Harrison Street.
Here, Hearth Development plans to build Gladstone Cooperative, a senior housing co-op.
The city and Hearth entered into a purchase agreement on Feb. 2, 2015. Under the original agreement, a closing date of Aug. 31, 2015, was set. That date was extended to March 1, 2016, to give Hearth the time to get the necessary number of reservations to secure financing.
That closing date has now been extended to June 1. According to Darin Berger, Anoka’s Housing and Redevelopment Authority manager, this time the delay has been the process of HUD financing.
The purchase price for the property is $295,000, with a $39,200 brokerage fee.
Heather Harstad of Hearth Development told the council they are completing their full construction plans to satisfy HUD financing requirements and then will be able to start taking down payments. She told the council HUD really likes their project and that Hearth has demonstrated there is a large interest in a senior housing cooperative in Anoka.
“We just need to get that final piece together and then we can hurry up and go,” Harstad said.
About 25 buyers are interested in purchasing co-op units in the building, which will have 43 units.
The current project is a scaled-down version from the original 55-unit proposal that was approved by the City Council.
Ebeneezer has been contracted to manage the co-op.
Members of the City Council are excited to see Gladstone move ahead.
“We know it’s right around the corner and things happen fast when they start happening,” Mayor Phil Rice said.