EDA sells land for housing development
It is no secret that there is a lack of affordable, decent housing in Montevideo. After all, a housing study commissioned by the City of Montevideo in late 2018 came to the very conclusion.
On Tuesday evening, the Montevideo EDA met to hold a public hearing on the sale of EDA-owned property to Montevideo Multi-Family, LLC. The group is interested in building two apartment complexes on the site, which is known as Outlot B, Mills East Side Estates.
Alek Schulz, Community and Business Development Specialist for the City of Montevideo, spoke of the land sale to the developers. He said: “Montevideo Multi-Family, LLC., is a group of builders and management personnel that have been building and managing multi-family living facilities in Minnesota. For now, they will be using that name until they come up with a name for the project.”
According to Schulz the group has constructed nine other apartment complexes in Minnesota, with the most recent one being completed in Staples. Montevideo Multi-Family, LLC., will be handling the development of the property, although some of the work will be contracted to local businesses.
Two complexes are planned for the Mills Ease Side Estates site. “There are two phases planned,” said Schulz. “The first phase will consist of a 38-unit complex, and the second phase will consist of a 24-unit complex. These apartments will range from one-bedroom to three-bedroom apartments,” he said.
According to Schulz, rent for the apartments will be market rate, ranging from $795 to $1,295 per month.
Both the city council and Chippewa County Board considered providing incentives for the developers during their meetings on Monday evening and Tuesday afternoon, respectively. “What the city and county considered was a Tax Abatement Program for the project,” said Schulz. “A portion of the taxes they pay will come back to them to help offset construction costs over a period of 10 to 15 years. No other taxpayers would be impacted by this plan.”
If the city and county reach an agreement on a plan for tax abatement, Schulz is optimistic that the project could begin soon. “Once abatement is finalized, construction can begin, maybe as early as sometime late this summer or early fall,” he said.
Once construction begins, Minnesota Multi-Family, LLC., expects construction to take 12 to 14 months.