The Brainerd Oaks housing development has officially been transferred to Crow Wing County’s Housing and Redevelopment Authority for it to begin acquiring the tax-forfeited property. 

The Brainerd City Council in March unanimously approved having the Crow Wing County’s HRA manage the disposition of the Brainerd Oaks tax-forfeited development and the Crow Wing County Board Tuesday unanimously approved the transfer.

The Brainerd HRA had purchased the Brainerd Oaks housing development in 2003, but slow sales on the few houses built and more than 80 empty lots resulted in $6.5 million in debt. 

Kirk Titus, county land services supervisor, said the county will transfer title to the lots in the development to the county HRA for less than market value, $1 under the Tax Forfeit Act, to assist low-income housing and return the property to the tax rolls. 

Titus said the HRA is working with Lakes Area Habitat for Humanity, which would rehabilitate the houses for the nonprofit organization. Titus said that the Minnesota Department of Revenue and Habitat are both in support of the transfer.

County commissioner Paul Thiede asked if the city or county would be able to recoup any of the overhead costs from the housing project. Titus said the overhead cost is minimal.

County Administrator Tim Houle said the HRA is trying to take the lots and release them into the market at the market rate. He said the county will not make a dime.

“It has some potential (to make money),” said Houle. “But they’ve been on the market for a long time and its not selling.The county has nothing to gain on this.”

In other county business, the board provided a summary of the closed meeting on July 12 of a performance evaluation for Mark Liedl, the county’s land director.

In the summary it said, “Liedl is a valuable asset to Crow Wing county. He is to be commended for the impressive list of accomplishments and for the transition to a much more customer-focused, outcome driven approach to managing the functions to land services ... His leadership and experience on how best to protect our natural resources while allowing for sensible development in Crow Wing County is noted and appreciated.”

JENNIFER STOCKINGER may be reached at jennifer.stockinger@brainerddispatch.com or 855-5851.