The Park Rapids City Council, meeting Tuesday, Jan. 28 as the city’s Economic Development Authority (EDA), agreed to pursue a Greater Minnesota Housing Infrastructure Grant for up to $500,000.
Mary Thompson, executive director with the Heartland Lakes Development Commission (HLDC), said this is a new program with Minnesota Housing Finance. She said it could supplement the $3 million congressionally directed spending allocation already secured to create infrastructure for a housing development off Finley Street.
Thompson said the additional state grant would help compensate for cost increases as well as minimize the amount of special assessments, which could become a cost burden to prospective developers or homeowners.
“Our goal has been to find outside funding that will be able to subsidize the cost of construction, and not pass it on to the eventual property owners of those parcels,” she said.
However, she said, the state requires the city to be the grant applicant, though HLDC would prepare the application, sparing city staff time other than what is needed to subdivide the property.
“There would really be no cost to the city, but it would provide a significant benefit to have those additional resources available,” said Thompson.
She doesn’t know when the grant will open, she said, “but I’m here early so that, as soon as it opens, then we know whether or not you’re willing to be the applicant, and I can immediately start work on the application.”
Thompson shared a draft design of the housing development with the city council, not yet ready for publication. She said it includes a 3.3-acre park and adjacent stormwater basin, adding up to a 4-acre green space at the entrance to the development.
She estimated there would be room for approximately 87 building lots if they all went single-family residential, though there could also be townhomes, duplexes, three-plexes, etc.
Thompson said HLDC’s role would be to develop the roads and look for contractors to develop the lots, with covenants to ensure the target market is owner-occupied, workforce housing.
EDA board member Liz Stone made a motion to authorize Thompson to move forward with the grant application with the city as the applicant. The motion passed 4-0, absent board member Tim Little.
Small Cities funds close to release
Thompson further reported that she has documents in hand for the Small Cities Redevelopment Grant, with about $1 million awaiting release pending completion of an environmental impact study.
“Businesses that are looking to access those resources are going to be very excited once we get this done,” she said.
Documentation will be posted on the city’s website (
), allowing people to comment on the potential environmental impacts for the project.
Once the comment period is over, Thompson said, funds should be released, opening the program to applications for multi-family mixed-use and commercial rehabilitation in the identified “slum and blight area,” flanking Main Avenue and the business corridor along State Hwy. 34.
In other business, the EDA held a closed session for the purpose identified in state law as “to develop or consider offers or counteroffers for the purchase or sale of real or personal property.”
Robin Fish is a staff reporter at the Park Rapids Enterprise. Contact him at rfish@parkrapidsenterprise.com or 218-252-3053.