MITCHELL, SD (Mitchell Now) — Mitchell city leaders approved transferring the city’s former mobile home park property on First Avenue to the Mitchell Area Development Corporation for $1 to move forward with a new housing development.

The Mitchell City Council voted 7-1 on Feb. 2 to approve the redevelopment agreement for the First Avenue site, according to the Mitchell Republic. The plan calls for 24 owner-occupied homes — 10 single-family villa-style homes and 14 ranch-style townhomes — with a deed covenant requiring the homes remain owner-occupied for at least 10 years after the initial sale.

The project is expected to be built by Sioux Falls-based Van Buskirk Construction, with completion targeted within 36 months, the report said. The agreement also includes home price caps for the different unit types.

Council member Mike Bathke cast the lone “no” vote, raising concerns about changes from the original request-for-proposals concept and potential parking impacts near the Mitchell Aquatic Center area, according to the newspaper.

Additional steps, including rezoning requests, are expected to come before the council as the project advances.