Fraley withdraws as East View developer, Rosenbrook Construction and KM Construction interested
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By LeAnn R. Ralph
COLFAX — John Fraley of Homes by Croix Creek has withdrawn his option on two lots in the East View residential development on Dunn Street, while two other developers have indicated an interest.
Fraley recently sent an e-mail message to the Village of Colfax stating that he was not going to build on Lots 1 and 2 in East View because of the current high interest rates, said Carrie Johnson, village administrator-clerk-treasurer, at the Colfax Village Board’s September 23 meeting.
Lots 1 and 2 are located on the north end of Dunn Street.
Fraley’s deadline to complete the last of the houses in Phase 1 of East View was September of 2025.
Fraley’s preference was to build twin homes on Lots 1 and 2 and said that he would pay for the survey costs, the cost with the state of Wisconsin for subdividing the lots, the rezone, and a certified survey map (CSM). The market for the homes was expected to be as starter homes or retiree homes.
Fraley originally had an option on five of the six free lots that the village was offering to developers free of charge to generate interest in building houses in Colfax.
The developer’s agreement for the free lots in East View requires a $2,500 contingency fee and that the dwellings be finished within one year of signing the developer’s agreement with the village.
At the time Fraley secured the options for Phase 1, there were no other developers that were willing to follow through on building houses, although the village had received many inquiries from a variety of developers and individuals who said they wanted to build a house.
The village board has not, as of the September 23 meeting, rescinded the developer’s agreement offering the remaining lots free of charge to developers.
Three lots
The two developers interested in Lots 1 and 2, Dave Rosenbrook of Rosenbrook Construction and Kris Meyer of KM Construction, are expected to build on three lots in Phase 2 of the East View development.
Construction on the three lots in Phase 2 was planned to take place this year.
At the May 13 meeting, the Colfax Village Board unanimously approved a motion to offer one lot to each developer, and that Rosenbrook would be given the first offer on the second lot and KM Construction would be given the second offer, and that the two developers could work together on the third lot.
Discussion at the May meeting for the third lot allowed Rosenbrook and Myer to decide which one wanted to develop the lot, allowed the two developers to work together on developing the lot, or that whichever developer paid for the lot first would have the ability to develop the lot.
The lots in Phase 2 of East View sell for $10,000 each.
The motion also included the provision that construction on the three lots in Phase 2 must be completed by December 31, 2025.
At the September 23 meeting, Rosenbrook and Myer said they had not received any information about which of them would receive the third lot.
Twin homes
Lots 1 and 2 are currently zoned for single family residential.
The cost to re-plat and rezone the two lots from single family residential to two twin home lots would be $8,000 to $10,000, Johnson told the village board.
The village board had some discussion regarding the amount for which the village would sell Lots 1 and 2 to Rosenbrook and Myer, although technically, the lots are still covered under the developer’s agreement that offers them for free.
Fraley would have received the lots for free but had indicated he would pay for the survey, the re-plat and the rezone to build twin homes on the two lots.
Twin homes also are known as zero lot line homes, and while they are similar to a duplex, the two sides are sold as separate units. A duplex has a single property owner.
Buyers of twin homes sign a building maintenance agreement that covers items such as roof replacement.
No rentals
At the May 13 meeting, the Colfax Village Board — on a vote of four “yes” to three “no” — approved a motion prohibiting John Fraley of Homes by Croix Creek from renting out the twin homes when they were finished and also prohibited Fraley from selling either of the twin homes to one buyer who had the intention of living in one side and renting out the other side.
According to state Statute 66.1014, “a political subdivision [town, village, city or county] may not enact or enforce an ordinance that prohibits the rental of a residential dwelling for 7 consecutive days or longer.”
The remainder of that particular statute deals with short-term rentals, such as an AirBnb.
The developer’s agreement does not prohibit owners of the other homes in the East View development from renting out their houses if they wanted to or from selling their houses to someone who wanted to rent them out.
While the Colfax Village Board had taken action to prevent Fraley from selling a twin-home unit to one property owner who would be expected to occupy one side and rent out the other, the village board did not indicate that developers in Phase 2 would be under the same restrictions regarding rentals, even though there was a proposal to build twin homes in Phase 2.
Ease of sale
Myer told the village board at the September 23 meeting that it would be easier to sell twin homes than it would be to sell single family residential homes so close to the railroad tracks.
Myer did not explain why twin homes would be easier to sell in that location.
An out-lot exists between the railroad tracks and Lot 1 that is intended to be the location of a stormwater retention pond that would be constructed after more houses are built east of the first six lots.
The plan to build on the lots in Phase 2 was “lost out” this year, and a conclusion must be reached soon so the development can more forward, said Jeff Prince, village president.
Myer said he would plan to built zero lot line homes in Lot 1 or 2 on a slab and sell the housing units for $269,000 per side.
Rosenbrook said he had planned to construct the houses with basements and would sell each side for $249,000.
Rand Bates, director of public works, reminded the village board that there is a problem with elevation for sewer service regarding the lots in Phase 1 of East View and that building houses either on a slab or as a split level would be workable.
On the north end of East View, elevation is more of a problem, he said.
The Colfax Village Board approved placing Lots 1 and 2 on the agenda for the first meeting in October.
Other business
In other business, the Colfax Village Board:
• Approved drug testing for every commercial driver’s license holder employed by the village at a cost of $65 for the first 10 employees. The state requires the testing every year. It was not clear from the discussion whether any village employees are required to have a CDL.
• Approved an additional cost of $9,518 for the repair of Well No. 3 for a total cost of $32,168.
• Approved a request from Bremer Bank to release the pledge of $720,000 to the Rochester, Minnesota, Independent School District.
• Tabled the agenda item related to introducing Matt Flatland of Flatland Inspections LLC since Flatland was on the agenda but did not attend the village board meeting.
