The Housing and Redevelopment Association (HRA) bought nearly 15 acres of land in the Southbridge Development in 2008 with the intention of developing a mixed income housing community with an emphasis on renewable resources and healthy homes. The project received support from Minnesota Housing Finance Agency, Blue Cross Blue Shield Foundation, and Three Rivers Community Action. Unfortunately, the collapse of the housing market prevented the project from getting off the ground and the HRA shelved the plan for a later time.
The HRA began working with Three Rivers Community Action again in early 2011 after receiving concerns from service providers of the lack of larger-sized rental units in Northfield. A rental market study confirming the lack of affordable three and four bedroom units marked the beginning of Phase 1 of the Southbridge Development Project: Spring Creek Townhomes.