MARSHALL — A developer is trying for the third year in a row to get state financial support to build a 60-unit apartment complex in Marshall. On Tuesday, members of the Lyon County Board voted to pledge part of their state housing funds to help improve the project’s chances of being selected.

The developer, Tapestry Companies, came to the Marshall City Council and the Lyon County Board last in 2023 and 2024, with a proposal to build an apartment complex on land near London Road in Marshall. Tapestry has been trying to secure tax credits from the Minnesota Housing Finance Agency to build 60 units of affordable family housing.

“Last year, the Lyon County folks were generous enough to agree to provide some funding to help in our application,” said Tim Trimble, of Tapestry. “We’re back reapplying again this year, asking for that same contribution, if we may.”

The Tapestry team was asking the county to pledge a contribution of $224,000 to the apartment project, according to agenda materials for Tuesday’s meeting.

“Last year, our project was next in line for funding . . . and the funds all were used by the time they got to our project,” Trimble said. “So we were close, but not quite. We’re going back with the same application, working with the city once again. We’ve got a few things we’re trying to add to our application so we can increase our scoring.”

Trimble said one key thing Minnesota Housing looks at in a project is what kind of other financial contributions are coming from the community.

“We’re buying the land from the city, and they’re turning around and putting the cash back in,” Trimble said.

Lyon County Administrator Loren Stomberg said the city of Marshall was donating the land for the housing project. “And they’re still working thorugh additional incentives, which could include their housing fund dollars or unobligated pooled TIF money,” he said.

The county’s support for the project could help the project in Marshall get a higher score, Trimble said.

The proposed 60-unit project would include one, two, three and four-bedroom apartments, Trimble said. The project would serve families with incomes at or below 50% of the area median income.

“Our understanding is there hasn’t been a new affordable project built in Marshall in 40 years, or something like that,” Trimble said. “So there’s a huge need for what we’re trying to do.”

Minnesota Housing selects financing recipients in December. Loans would close in late 2026 or early 2027.

Stomberg said the county would not be able to commit the same amount of funding to the project as in previous years.

“The $224,000 represents all of our low income housing grant from the state,” Stomberg said. At its last meeting, the county board approved $100,000 for a nine-apartment project in Balaton. “So, you’ve got about $144,000 of the state funds available.”

Commissioner Todd Draper moved to pledge the county’s remaining state housing funding toward the Tapestry project. The motion passed.