Rochester City Council OKs Financial Help For Housing Project
Rochester, MN (KROC AM News) - If all goes as planned, a new housing project will be open in Rochester’s Country Club Manor neighborhood by the end of next year.
But the developer has been dealing with a problem other projects have been facing - higher-than-expected costs. It’s unknown what impact this may have on the construction schedule.
The City Council Monday approved public financing for the Manor Hills project that is planned to be built at the northwest corner of Country Club Rd W and 36th Ave NW, which is the south entrance to the neighborhood.
It’s described as a 72-unit workforce housing project.
It’s being developed by Titan Development, which told the city there is a current funding gap of $3.5-million because of “rapidly escalating construction costs.” Titan told the city “it will be applying for additional funding sources in an effort to mitigate the gap.”
The city council Monday approved nearly $860,000 in tax increment financing funds. The Minnesota Housing Agency has also awarded tax credits for the project, which had an initial estimated cost of nearly $21-million.
According to a memo, the city agreement requires construction to start no later than Aug. 1 and be substantially completed by Dec. 31, 2023.
Titan says its units will be rented by residents with incomes at or below 60% of the area median income and eight will be set aside for persons with disabilities experiencing homelessness. The project will have underground parking, surface parking, a community room, in-unit laundry, and an exercise room.
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