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Apartment complex with retail planned for East Fourth Street

A new 77-unit apartment building is planned for this section of East Fourth Street in Duluth. Steve Kuchera /

A new, 77-unit apartment complex with both market-rate and low-income units is planned for East Fourth Street in Duluth.

In addition to apartments above, the street level of the building will house retail shops, developers note in the project's application to the federal Department of Housing and Urban Development.

One Roof Community Housing has applied for federal Community Development Block Grants for the Brewery Creek Apartments project, which is slated to be built where two empty buildings and a "blighted" apartment complex now sit, across the street from Whole Foods Co-op.

The property is located along Fourth Street between Sixth and Seventh avenues east. Last Chance Liquor and an oil and lube service station once sat on the property that the city has targeted for new development, so far unsuccessfully, for years. Kwik Trip had eyed the site for a possible convenience store before opting against those plans.

The old buildings will be demolished to make way for the new complex.

One Roof will construct the new apartment building with a combination of one- and two-bedroom units. Depending on tax-increment financing, the building will either be 50 percent market rate and 50 percent so-called "affordable" units, or 40 percent market rate and 60 percent affordable.

The project plans on using federal Community Development Block Grants to help pay for the affordable units that will be available only to households at or below 60 percent of the regional median income.

One Roof Community Housing was the developer of the Steve O'Neil Apartments several blocks to the west on Fourth Street. The nonprofit is "committed to providing housing services and building and sustaining affordable homes and healthy neighborhoods." It was formed by the merger of Northern Communities Land Trust and Neighborhood Housing Services in 2012.

Further details are expected to be announced as the project comes together in coming weeks.