MARSHALL — A developer proposing to build an affordable housing complex in Marshall was back before the Marshall City Council on Tuesday.

A representative of Tapestry Companies said the company is trying a second time to secure funding from the Minnesota Housing Finance Agency for the project.

“We came forward last year with a pre-development agreement for Tapestry Companies to apply for Minnesota Housing’s tax credit program,” said Marshall Economic Development Authority Director Lauren Deutz.

Tapestry was seeking to build an affordable family apartment building and a senior apartment building on land near London Road.

“Unfortunately, there was a large number of applications, and our project was not approved,” Deutz said.

Now, the developers are trying again with a slightly different project, said Deutz and Tim Trimble of Tapestry.

“We are only going to submit the family housing, not the senior housing,” Deutz said.

The new proposal would be for a 60-unit affordable apartment building only, Deutz said. She said the apartment units would be at or below 50% of the area medium income.

A pre-development agreement brought to the council on Tuesday would give the developer the option to buy property for the apartment project for $325,000, with a cash incentive. The city would also provide $500,000 in pooled TIF funds to support the extension of Paris Road for the project. Deutz said the Marshall EDA also approved the use of $10,000 in Statewide Affordable Housing Aid to support the development.

Earlier this summer, the Lyon County Board voted to use $224,000 in state housing funds to help support the project.

“We feel we are in much better shape for an application that will be reviewed and approved this year,” Trimble said.

Council members voted unanimously to approve the pre-development agreement for the housing project.

“I think this is very needed in the city of Marshall,” said council member James Lozinski.