Affordable housing needed to stimilate growth
News | Published on July 15, 2024 at 12:08pm CDT
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By Tim Douglass
tdouglass@pctribune.com
A housing shortage has been an ongoing issue in Greater Minnesota cities, hindering job growth and causing property tax increases. It is difficult to grow a small city tax base without new home construction or business expansion.
And, it’s difficult to expand business without housing available for new employees.
Glenwood and Pope County may be better off than some communities when it comes to housing, but there is a lack of affordable housing options available to incoming workers and new families, making it difficult to grow businesses and population. There is a drive to build housing, but the shortage reflects a problem not unique to Pope County. Across Greater Minnesota, many cities and towns face a lack of housing and struggle to boost inventory to meet demand for homes.
In Glenwood and most cities in Pope County, construction of new single-family homes is lagging. Other housing options have been pursued by local developers, including town homes and market-rate apartment facilities.
“There is a housing shortage, both on the rental and single-family housing shortage,” said Jason Murray, director of the Pope County HRA/EDA. “In addition, on the single-family housing, limited availability on homes priced under $300,000 affects the workforce availability.
Recently, The Pope County HRA-EDA housing work has focused on:
1. A partnership with CNSP Properties (Starbuck, Cyrus, Villard) roughly 30 units of new town home rentals in the county.
2. Worked with Pope County on a Housing Trust Fund targeting homeownership as a priority. Funding is finalizing and it is hoped it will be launched later this year or early next year.
3. Working with CNSP on a for-sale town home development in Starbuck.
4. The HRA/EDA Board has also been discussing smaller, or what is referred to as ”tiny” home development.
Land availability and infrastructure costs have been the biggest challenge. According to Murray. Land adjacent to or with public infrastructure is limited, especially at a price that ultimately can be priced affordable. To develop and extend infrastructure, average lot price calculates in the $55,000 to $75,000 and up range, which is a challenge competitively with other communities through the area. For example, Sauk Centre is selling lots for $25,000 to $26,000 per lot plus assessment of $23,000.
When it comes to rental housing, there is a 40-unit rental housing project nearing completion in Glenwood that has appeal to new families as well as local senior citizens. That project attracts renters even before the units are ready. The first 10 units of that project became available this spring and were rented before they were able to be occupied. The same happened for another 10 units that became occupied on June 1. “Building #3 and Building #4 of the project are very close as far as construction time frames,” said Rod Lindquist, one of the partners of GTH Partners LLC, the company building the apartment complex in Glenwood. “We expect Building #3 (all 10 units are reserved) to be ready for occupancy late August and Building #4 (8 of the 10 are already reserved) should be ready for occupation in late September,” he added.
The fact that the apartments are reserved before they are available also speaks to the housing shortage. All 40 of the apartments are market-rate rentals with desirable features like a garage with garage door opener, patio and their own laundry facilities. Each 10- unit building contains two, three-bedroom apartments, two, two-bedroom apartments and six, one-bedroom apartments.
A 2022 report by the Center for Rural Policy and Development and the Greater Minnesota Partnership said the cause of the workforce housing shortage is complex. One major factor is increasing construction costs that price young families out of contention for starter homes and skew the market.
For example, in Glenwood, it costs roughly the same to develop homes as it does in larger cities, especially when it comes to labor, price of materials and interest rates.
Another problem, the report says, stems from a higher percentage of seniors in rural communities. When those seniors stay in homes because they want to, or because they lack something desirable to move into, it causes a bottleneck in homes for sale, the report says. It also contributes to a rise in dilapidated houses, because sometimes upkeep and maintenance costs are too much for seniors who want to stay in their homes.
Besides housing, lack of affordable child care is also an issue that stunts the growth of cities within Greater Minnesota.
“The need for housing and daycare go hand in hand. Without a daycare center in town, potential employees will not move here with their young families, said Pope County Commissioner Gordy Wagner. “While housing will be built by individuals, a daycare center is a collaboration between government and the community. It is imperative that the large employers and others contribute to the $600,000 local match needed to access the $1.8 million federal money for the county’s daycare center. Housing then can also reap the benefits if daycare is readily available.”
The apartment complex, town homes with a smattering of single-family homes being built in Pope County, there is another unique housing development that is being pursued by local developers.
Franklin Square, is a proposed housing complex that features high-end, luxury condominium units right in the middle of Glenwood and close to the business community, Central Square and local health care facilities.
The 32-unit complex, is scheduled to be constructed along Franklin Street just west of Central Square in downtown Glenwood and will feature eight housing units on each floor of the four-story building, according to Josh Zavadil, who is an officer for Franklin Square, LLC.
The complex will be built once most of the units are pre-sold, it was stated recently, but those interested can reserve their unit without much risk because if the construction timeline doesn’t fit their needs they can back out and their deposit will be returned with interest, said Colton Iverson, of Glenwood State Bank Real Estate, who is marketing the units and meeting with interested residents on pre-sales.
“There is a lot of excitement around the housing project and we don’t need to have 100 percent pre-sold to start construction,” Iverson explained recently. Reserving a unit now, however, lets the buyer pick the desired unit and location within the complex. Those interested “can secure your spot now with the peace of mind that if for some reason the timing of the project doesn’t work out you can walk away and get your deposit back,” he added.
Iverson said there are a number of units that have been reserved already, another telling sign that lack of affordable, desirable housing is needed in Glenwood.
“We know people are interested in a groundbreaking date for Franklin Square, but the groundbreaking will hinge on the number of units sold. Fluctuating material prices and interest rates have made it challenging to determine the exact count required at this time,” it was stated by the developers.
Area residents interested should contact Colton Iverson at Glenwood State Real Estate or call him at 320-808-1488. He can be reached by email at colton.iverson@glenwoodstate.com.
Unique housing at
Franklin Square
The housing units at Franklin Square will range from $199,000 to mid $400,000 with most units at about 1,000 square feet and some at about 1,200 square feet of living space.
The unique design of the development should give area residents a different choice in housing.
“What is unique about these living units and the overall design is the bridge that it creates between a typical single-family home with its amenities and merging those into a denser living environment,” said Chass Rising, CEO of Rising Architects of St. Cloud, the firm that designed the complex. “For instance, each unit will have two underground parking spaces with easy access to three elevators and three stairways. The comfort continues by providing each unit with its own front porch that creates a personalized entry and the rear balcony creates additional privacy,” Rising explained.
There are also a variety of options for buyers that allows them to select from “end units” that have increased windows and natural daylight.
Rising, who is a 1991 graduate of Glenwood High School, also explained that the top floor units have higher ceilings and superior views of downtown Glenwood and Lake Minnewaska. All owners will have access to the Roof Top Lounge space that has a 44-person capacity. There, development also includes a large open lawn and pet play area, it was stated.
Iverson reiterated that the idea for this housing development is to “free up the local housing market.” He said Franklin Square gives residents the opportunity to move from single-family homes into maintenance-free, luxury living. “That would open more single-family homes to younger families who currently can’t find those home options in Glenwood,” Colton Iverson said. “It’s difficult for a town like Glenwood to grow without housing options available,” Iverson added.
“One of the biggest concerns for new providers moving to our area is housing,” said Kirk Stensrud, CEO of Glacial Ridge Hospital. “We’re so fortunate to live in a beautiful community, but housing has become an issue for families moving to our area. Franklin Square condominiums will greatly help the housing crisis. Not only will it be great for individuals and families looking for maintenance-free living, but it will also provide more availability for single family homes and the growth of our community.”
Glenwood City Administrator Dave Iverson agreed. “After reviewing the concept, it looks like a fantastic development for the city of Glenwood,” Iverson said. “The city can definitely benefit when there’s a variety of housing options available and this one will certainly add to the betterment of the city,” he added.
“The availability of housing is crucial for the growth and success of our community. As the Superintendent of Minnewaska Area School District, I see firsthand the impact that limited housing has on our enrollment numbers and overall potential,” said Chip Rankin, Supt. of Minnewaska Area Schools.
“The Franklin Square Condos present a unique opportunity to address this issue and unlock the potential for growth. By providing housing options for families, we can ensure that our school district continues to thrive with a student body of over 100 per class, he added. “This not only allows us to offer a wide range of activities and opportunities, but also benefits the entire community. I firmly believe that projects like the Franklin Square Condos can pave the way for new families to join our community and contribute to its ongoing success.”
The developers of Franklin Square have focused the housing project on offering an affordable price by unit size and location; the view to the West /Southwest; privacy; two spacious inside parking spaces (and some private parking spaces available); inside access to Central Square building; and close to the downtown business area.