MARSHALL — The city of Marshall has received a new notice that the owners of the Broadmoor Valley mobile home park plan to close it down.

Marshall City Administrator Sharon Hanson said Tuesday that the notice would go to the city planning commission before the city council would need to set a public hearing on the announcement.

Hanson said Marshall received a letter from Broadmoor Valley owners Schierholz and Associates on Feb. 18. The letter said Broadmoor Valley will cease operations as a manufactured home park on March 1, 2026.

At the same time that Marshall City Council members heard an update on the closure notice, Hanson also informed them of a funding request Schierholz and Associates made for an additional $2 million financial commitment from the city.

“My interpretation of the letter is, he was trying to support an additional (grant) request to Minnesota Housing Finance, and he felt that funding from the city in the amount of $2 million would help support that additional funding request,” Hanson said.

“We are all aware that the funding levels at Minnesota Housing Finance is a little tighter in the last year or two. I think it would be challenging with or without city support,” Hanson said.

The city had previously committed to $500,000 in support for infrastructure improvements at Broadmoor Valley, along with a Minnesota Housing grant Broadmoor Valley was awarded in 2022.

But Hanson told city council members that this time, she drafted a letter declining the $2 million funding request.

“I did provide to you a declination letter for his request, simply because we don’t have $2 million available to provide support,” she said.

If council members objected to declining the request, they could discuss it, Hanson said.

Council members didn’t discuss the declination letter further at Tuesday’s meeting.

Hanson and Marshall City Attorney Pam Whitmore said it looked like the new closure notice for Broadmoor Valley was valid, which meant that the city would need to follow procedures to hold a hearing for Broadmoor Valley residents. The city would also be responsible for appointing a neutral third party for part of the closure process.

“We have not heard from (the Minnesota Attorney General) with respect to this notice of closure,” Whitmore said.

The Attorney General’s Office had said a previous closure notice was not valid because it did not meet state requirements.

Hanson said the matter would first need to go to the Marshall planning commission at its March 12 meeting. The commission would then likely recommend it go before the city council on March 25. The council would need to set a date for the hearing.

It’s not certain how a recent lawsuit brought against Schierholz and Associates by the Minnesota Housing Finance Agency will affect plans to close the park next year, said Whitmore.

“We are going to stay in our own lane, and we are in charge of the process for that hearing. Until we are told that it’s not appropriate to have that hearing, we will be moving forward with that,” Whitmore said.

Minnesota Housing sued Schierholz and Associates on Feb. 6. The lawsuit alleges that by announcing plans to close Broadmoor Valley, the owners broke the conditions of their 2022 grant agreement. Part of the agreement conditions included that Broadmoor Valley continue to be operated as a manufactured home community for 25 years.