TRF Council supports funding request for apartments

by April Scheinoha Reporter Thief River Falls needs more apartments, and the Thief River Falls City Council is trying to help. At a special council meeting Friday, April 19, the council approved a resolution supporting a firm’s request for state funding. DW Jones hopes to build Edge Housing LLC south of Valley Assisted Living. It plans to purchase the property from MAK Properties, which had initially planned to construct a multi-use building there. DW Jones plans to build a three-story apartment building featuring 66 market-rate units on the property at 701 Hwy. 32 S. The project is estimated to cost $13.9 million. However, DW Jones’ plans are contingent on funding from the Workforce Housing Development Program. The program provides an unsecured, zero-interest, three-year deferred forgivable loan. On Friday, the council provided its support for DW Jones to use a nine-year Tax Increment Financing District already created for the property for the required local match. Richard Baker, city economic/community development director, said the TIF district is projected to generate a net of $950,672, allowing DW Jones to leverage an additional $1,901,344 from the program. He indicated that a private equity low-interest loan will be also be utilized for the project, leading to a total of $4,301,344 in loans from Minnesota Housing. Baker said that amounts to 31% of the project cost. The council called the special meeting Friday since it was waiting for final cost estimates three days earlier at its regular council meeting. DW Jones’ loan application is due Tuesday, April 30. The council has already approved rezoning the property back to Multi-Family Residential District (R-4). Rezoning is also contigent on the state funding request. Baker indicated there was only one vacant apartment in Thief River Falls among 225 apartments surveyed in March. He said he had been informed that DigiKey planned to hire 50 to 60 temporary employee before May. As of Monday, DigiKey had 240 open positions. The council approved a temporary intoxicating liquor license for American Legion Post 117. The license will enable the Legion to provide liquor at a wedding reception May 25-26 at the Curling Club. Council member Jason Aarestad noted that the request should have gone first to the Public Safety/Liquor Committee, but the state needs 30 days in order to grant the request. Mayor Brian Holmer said the Legion should be sent a letter, again reminding it of the state deadlines. Aarestad noted that Legion would have been out of luck had the council not already scheduled this special council meeting for the Edge Housing project. Council member Michele McCraw suggested starting an expediency fee for temporary intoxicating liquor licenses. “We keep talking to the public,” said McCraw. “We keep, you know, pushing to get things in sooner and nothing’s changing.” City Attorney Delray Sparby advised against an expediency fee, saying it may encourage applicants to turn their applications in closer to the state deadline.