Historic Red River Flour Mill to be Redeveloped

(Fergus Falls, Minn.) – Greater Fergus Falls (GFF), in partnership with the City of Fergus Falls is privileged to announce the historic Red River Flour Mill located at 309 Stanton Ave. W. in downtown Fergus Falls is on track to be redeveloped into a 5-story boutique hotel. The redevelopment has been made possible through a private-public partnership including private investors, $1.2 million in state and federal historic tax credits, a MN Department of Economic Development and Employment (MNDEED) Redevelopment grant, and Tax Increment Financing (TIF) through the City of Fergus Falls.

Fergus Falls Mayor Ben Schierer said, “The redevelopment of the Flour Mill has been a high priority since the downtown master planning process began five years ago. Leveraging public investments to create private development has created an opportunity to realize the development of the River Market, the former dairy site, and the historic Flour Mill concurrently, “ he continued, “We are thrilled that Mr. Bartram shares our vision and is committed to investing in the future of our community.”

The former flour mill located on the Otter Tail River was placed on the National Register of Historic Places earlier this year, which paved the way for property owner Kevin Bartram, of MBA Architects, to apply for tax credits for historic preservation of the site. In conjunction with other financial incentives and a lofty private investment from Bartram, a $130,000 Redevelopment grant award from MNDEED made the 30-unit boutique hotel feasible. Bartram partnered with GFF for technical assistance services and the City of Fergus Falls to apply for this grant which covers 50% of the eligible redevelopment costs such as asbestos abatement and site demolition. The remaining 50% of the eligible costs will be matched through the establishment of a TIF district that was approved by the Fergus Falls City Council on November 1st. The balance of the estimated $5.2 million capital investment is covered through private investors.

Bartram said, “We are excited to get started on this project and look forward to bringing this one-of-a-kind property back to life,” he continued, “Without the assistance of the City of Fergus Falls and the State of MN, this project would not be possible.”

The project is expected to break ground spring of 2022 with project completion and occupancy slated in the fall of 2023. A second phase of the redevelopment, estimated to begin within 2-3 years, will include a 24-unit apartment complex with a parking garage. The redevelopment of this historic site will tie in to the recent Downtown Riverfront development and future redevelopment of the former Dairy Site, which includes funding from the Legislative-Citizen Commission on Minnesota Resources (LCCMR) to extend the Central Lakes Trail through the Otter Tail River buffer.

State Rep. Jordan Rasmusson also congratulated the City of Fergus Falls and private developers for moving forward with the project. “This is exciting news for Fergus Falls and I congratulate city leaders and private developers for their hard work and vision,”

Rasmusson said. Rasmusson was co-author of the Historic Tax Credit legislation that passed earlier this year and carried legislation on behalf of the City’s downtown redevelopment efforts. “I am glad that my work to extend Minnesota’s Historic Tax Credit and to garner state funding were helpful in making this project a viable redevelopment opportunity.”

Press Release from Greater Fergus Falls and photo from Greater Fergus Falls Facebook