Housing study exposes rental needs
By Rae KrugerFact Box
Officials in Minneota hopeful housing program will spur growth
By Deb Gau
There's room for new faces in Minneota, and both the Minneota EDA and local businesses want people to know it.
"We're saying, 'Consider Minneota,'" said Minnesota City Administrator Dan Canton.
This spring, the Minneota EDA organized a new home incentive program for 2008, which included cash rebates for the construction of a new house. While the incentives haven't led to a housing boom, local businesspeople said any growth is positive.
Canton said the incentive program was finalized this summer.
Incentives include a $3,000 rebate from the EDA after completion of a new house, as well as discounts on lots in the Ousman housing addition ?in the eastern part of town?, homeowner's insurance, propane tank rental and other services offered by local businesses.
"Members of the EDA had seen it done in other cities," Canton said.
The program was well received by local businesses, because new residents benefit the community and the local economy.
"We like to see development in Minneota," said Greg Steele of Bank of the West, one of the Minneota businesses with offers on the incentive program. "We jumped on board with that right away."
Rick Konold, owner of Rick's Taxidermy and Bait Shop, said including an offer on the incentive program was a way to introduce new Minneota residents to his business.
"It's just important from a business standpoint to let people know you're here," he said.
The incentive program was advertised locally, in the Minneota newspaper and on the main page of the city Web site.
Canton said some of the housing incentives encourage building in the Ousman addition because that's where the most available space is. However, he said, the EDA rebate offer applies to any lot in town.
"Sometimes an old building is removed, and the space opens up," Canton said.
Nine of the 19 lots in the Ousman addition have been developed since its construction in 2003, Canton said. A 10th house is on the way.
The incentive program hasn't generated any new construction yet, but Canton said he has had a few calls from people curious about the program. State Farm Insurance agent Kevin Anundson said he had gotten a call about homeowners insurance as a result of the program.
"That's positive," Anundson said.
Even if Minneota isn't able to attract big businesses or other forms of growth, he said, it can offer an attractive place to live. "Housing is important, and it's what we can do."
The Minneota EDA will have to decide whether to continue offering housing incentives next year, Canton said.
MARSHALL - Lyon County needs more rental housing on one level and a few more with underground garages or other features for higher-end renters, a recently completed housing study said.
A housing study was completed for Marshall, Minneota, Tracy, Cottonwood and the county as a whole to help local governments determine what may be missing in existing and future housing markets, Lisa Graphenteen told a group of economic developers and city officials Tuesday night.
"This reaffirms what you are doing and helps you understand what you could be doing," Graphenteen said. "It gives you a picture of what's going on in today's housing market."
Lyon County Enterprise Development Corporation Director Nort Johnson gathered the group Tuesday to talk about economic development and update the group on issues, including the housing study.
The consistent need in Marshall, Tracy, Minneota and Cottonwood is for rental units, and those vary from market rent to contemporary or upper-income rental units, Graphenteen said.
The study recommends mostly one-level rental units with two to three bedrooms, she said. The units shouldn't be age specific but would likely appeal to those 55 and over in most cases, Graphenteen said.
The cities have an adequate supply of available housing lots but need to make sure that supply stays adequate, Graphenteen said.
"(Marshall) has done a great job with that," Graphenteen said of entry level housing lots. The lots in Parkview Addition and North Riverview addition total about 95 lots. No additional lots should be developed until the number drops below 30, Graphenteen said.
The city doesn't need more general residential lots, Graphenteen said. The city should have a supply of 60 and will have many more when the 99 lots in the Stonebridge Addition become available this year.
"That will increase the supply to 250," Graphenteen said.
Families need more market rent options in rental units such as townhomes, Graphenteen said. Those rents would be $650 for two bedrooms and $750 for three bedrooms, she said.
Higher income renters need contemporary apartments, she said.
"Those with underground garages, fitness area, more for higher income professionals," Graphenteen said.
The higher end rents would be $600 to $950 for three bedrooms, she said.
The former Marshall Junior High site would be a good place for rental housing and for public building use, Graphenteen said.
Marshall is meeting the needs of senior citizens, but an alzheimers or memory care facility and assisted living will be needed.
Such projects would be difficult as stand-alones but a developer could combine an assisted living and memory care facility, Graphenteen said.
Johnson had given a similar presentation to the county board recently and said, "The greater unmet need is in Cottonwood. The city has a very high working population."
Employees commute and could use rental options in Cottonwood, Johnson said.
Cottonwood is an exception because of the workforce, Graphenteen said.
"The study recommends more apartment style with eight to 10 units with a combination of one and two bedrooms," Graphenteen said.
Cottonwood should maintain a supply of 10 lots.
The city has 30, but the city also has a lake development on the lake that could cause a need for more than 30 lots, Graphenteen said.
Minneota and Tracy both need a supply of 10 improved lots.
Tracy should move ahead with the Front Street addition to add 15 lots, Graphenteen said.
Rental units should be one-level with rents below $650, Graphenteen said.
Minneota's Ousman Addition will fill the need for improved lots over the next several years, but when it's filled more lots in the $20,000 to $25,000 range will be needed.
As in Tracy, the rental units should be one level, Graphenteen said.
The units should also have two to three bedrooms which is different from Tracy, Graphenteen said.
"That's specific to Minneota," Graphenteen said of two- to three-bedroom rental units.
The recommendation is based on the likelihood families will rent the units, Graphenteen said.
Johnson told the county board recently Minneota also has a need to tear down some existing structures to create space for new construction.
EDA and city officials can use the information to determine if they can help the needed housing development in cities and the county, Graphenteen said.
Local governments can access programs to help offset the cost for development to keep rents at market rates or to encourage the project, Graphenteen said.
Local EDAs and governments also need the studies to apply for grants and programs to help fund new housing development or redevelopment of existing properties, Graphenteen said.
"It's a way to justify what you are asking for and what you want to do in a project," Graphenteen said.
