Minnetonka-based Roers is pursuing plans to build 100 units of affordable rental housing for people age 55 and older in Duluth's Hillside neighborhood, and the Duluth Economic Development Authority is looking to help.
The authority approved a resolution earlier this week authorizing city staff to pursue up to $1 million in redevelopment grant funding through the Minnesota Department of Employment and Economic Development.
If the grant comes through, the developer will be expected to match it dollar for dollar. Roers should have no trouble reaching that threshold on a project that's expected to cost somewhere around $25 million, said Chris Fleege, director of planning and economic development for the city of Duluth.
The proposed site for the development, Portland Square, is at the corner of Seventh Avenue East and Fourth Street.
Rent in the building is supposed to range from about $700 to $1,200 per month for studios to two-bedroom apartments, respectively.
Fleege said the project could fill a recognized void in Duluth's rental market. He also noted that Roers is an established developer with a proven track record of tackling large projects throughout the Midwest.
The same company also recently took on the First Street Lofts project at the corner of Lake Avenue and East First Street, redeveloping a five-story building and an adjacent three-story building into affordable housing at an estimated cost of about $11 million. First Street Lofts is expected to be completed and ready for occupancy in 2021.
Minnesota's Redevelopment Grant Program is designed to help communities reclaim blighted industrial sites and return them to productive use.
This story originally misidentified where Roers is based. It was updated at 1 p.m. June 1 with the proper spelling. The News Tribune regrets the error.