Developer Seeks City Funding For $61M Rochester Apartment Project

Rochester, MN (KROC-AM News) - The Rochester City Council is being asked to provide nearly $1.4 million in public assistance for an affordable housing project in southeast Rochester.

Nearly 150 Unit Apartment Building Proposed

Meeting Monday as the city’s Economic Development Authority, the elected officials are expected to vote on adopting a new Tax Increment Financing district and authorizing staff to execute a development assistance agreement with the developers of a project known as The Common at Bear Creek. The proposal calls for a six-story, 149-unit apartment building on the south side of Fourth Street Southeast, just east of the bridge over Bear Creek.

Affordable Housing Project

City documents say an entity called Rochester I Limited Partnership, led by Lincoln Avenue Communities Development, has requested the public assistance to construct a mix of one-, two-, and three-bedroom apartments with surface and below-grade parking. The project amenities also include a fitness room, a clubroom, and secure bike parking.

ALSO SEE: Rochester Sees First Year-Over-Year Job Losses Since Pandemic

The presentation to the City Council indicates the apartment building will, on average, be occupied or reserved for individuals or families with incomes at or below 60% of the area median income (AMI). Two percent of the units will be priced as affordable for households at or below 30% of AMI, another 18% will have rents affordable for those earning 50% of AMI, while 56% of the apartments will target renters at or below 70% of AMI. The remaining 24% will be priced to accommodate incomes at or below 70% of AMI.

Public Assistance For Financing Project

The documentation indicates the proposed $1.379 million in tax increment financing will be provided to the developer on a pay-as-you-go basis. This means the developer will fund the project upfront and will be reimbursed as taxes generated by the new development are collected over time.

Get our free mobile app

Construction Timeline

The overall cost of the apartment project is estimated at $61 million. The proposed development agreement calls for construction to begin before August of next year and to be completed before the end of the year.