Dayton Council Delays Affordable Housing Fund Decision
The Dayton City Council's Economic Development Authority postponed a decision on how to spend approximately $136,000 in state affordable housing funds, asking staff to research different program models before the next meeting. The delay comes as council members weigh competing priorities: helping residents with home repairs versus providing rent and utility assistance.
The council faced a fundamental question Tuesday: Should the city partner with nonprofits to administer the Local Affordable Housing Aid (LAA) funds, or manage the program itself? The state legislature allocated the money to cities based on population in 2024, requiring each municipality to develop a policy for spending it.
Three options were presented. Cross Services, a Rogers-based nonprofit, could provide rent and utility assistance through their existing "Peace of Mind" program. The Center for Energy and the Environment (CE) could administer grants and loans, though at an estimated cost of $6,000 to $10,000 annually. Or the city could run the program directly, though council members expressed concerns about staff capacity and the time needed to launch it.
Resident Jane Trolls advocated for home exterior improvements, noting that many neighbors in older parts of Dayton need work done on their houses and weren't even aware the grant money existed. This highlighted a key tension: the council must decide whether LAA funds should primarily support home improvements or direct financial assistance for rent and utilities—two very different objectives.
One council member acknowledged the dilemma: "If we do this ourselves, and I think that's ultimately the right answer, but it's going to take us forever to launch this thing." The council directed staff to research further and provide a sample policy from a neighboring city before making a final decision.
In other business, the council gave direction to staff on the Ballome Gateway Sign Easement. The Rain Tree Plaza owner offered a no-cost easement for a city gateway sign in exchange for advertising space. The council approved allowing digital advertising for Rain Tree businesses, capped at approximately 10% of display time, but rejected a permanent business logo. Staff will continue discussions about who should administer the digital sign content.
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Votes (4)
Ballome Gateway Sign Easement
Dissent: Consensus to allow digital advertising for Rain Tree businesses (e.g., 10% of time) but no permanent logo. Discussion regarding administration will continue.
The EDA discussed an easement agreement for the city's gateway sign. The Rain Tree Plaza owner offered an easement at no cost if they could advertise on the sign. Debate centered on whether to allow a permanent business logo or only digital advertising for Rain Tree businesses, and the extent of free advertising. The EDA also considered who would administer the digital sign content (city staff or an advertising company).
Local Affordable Housing Aid (LAA) Policy Development
Dissent: No formal dissent, but clear differing views on administrative approach and program scope. The body leaned towards continued discussion and reviewing a neighboring city's program.
Discussion focused on establishing a policy for utilizing LAA funds (approximately $136,000 received so far). Options explored included partnering with Cross Services (for rent/utility assistance) or the Center for Energy and the Environment (CE) for program administration (grants/loans), or self-administration by the city. Concerns were raised regarding administrative costs (CE estimated $6,000-$10,000 annually), city staff capacity, and defining the program's objectives (e.g., home exterior improvements vs. financial aid). Residents offered to assist with administration while acknowledging potential conflicts of interest.
Closed Session (Tax Forfeit Property on Robinson Street)
A closed session was held pursuant to Minnesota Statute 13D.05 subsection 3C, to develop or consider offers/counter offers for the purchase or sale of real estate at parcel P 31120 2213 and 0010.
Closed Session (Triangle Property on Dayton Parkway)
A second closed session was held pursuant to Minnesota Statute 13D.05 subsection 3C, to develop or consider offers/counter offers for the purchase or sale of real estate at parcel P 31121 2231 00056.
Notable Quotes (9)
I say I thought I thought the idea was to promote businesses along that whole stretch and putting one business on there is seems kind of out of whack to me.
I mean I would be my opinion is I'd be in agreement with we we talked about the businesses could buy their space on there. Right. And it rotates. Well Rainree would get that rotating space at no cost.
And again, I I'm not looking for an answer on this now, but does the EDA want to administer the sign or does it want to lease it to a advertising company?
The legislature in in 2024 allocated funds to cities and counties uh based on uh population uh for those local governments to create policies and plans for how to spend funds for uh affordable housing.
So um C, we're nonprofit um as an organization. We do a lot of other energy focused activities, but our lending department, we administer programs for about 21 cities, a bunch of neighborhoods in Minneapolis, Minnesota Housing Finance Agency, um their loan programs, and a lot of the cities, we have about seven or eight right now using their LAA dollars.
Our uh focus is on food programs where we have a a food shelf that we distribute food out to uh families in need. We have programs that uh support families around financial assistance. It's a program that's called peace of mind, which is where this would fit into where we actually have an application process.
Our house is old. We need work done on the outside of it. And this would be very helpful for us. Um, I think a lot of our neighbors are also in similar situations because we live in an older part of Dayton and I've been talking to my neighbors and they were not aware that this we even had this grant money.
My feeling is if they want to do it, let them do it. My concern is that if we do this ourselves, and I think that's that may ultimately be the right answer, but it's going to take us forever to launch this thing.
But I think one of the I that's a great idea and I think one of the things we got to decide as the city is do we want the funds to be primarily targeted at but these what what you have said which is you know improving the facelifting homes so to speak or is it more like because the cross thing is very different that's like rent assistance utility assistance so they're to me those are very very different objectives and I we got to decide what is the objective we want these funds to go to.
Ordinances & Resolutions (6)
Agreement provided to Rain Tree Plaza owner regarding the Ballome Gateway sign.
City document regulating signs, requested for review and potential modification.
Statute cited for conducting closed sessions related to property negotiations.
State-allocated funds for cities and counties to create affordable housing policies and programs.
Champlain's program administered by CE, similar to potential LAA uses.
The objective of the $60,000 grant verbally awarded by Hennepin County.
Source document
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Other Topics from This Document
Sign Ordinance Review
Local Affordable Housing Aid (LAA) Policy Development
Closed Session for Property Sales
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