Fergus Falls, MN – The City of Fergus Falls is advancing a 39-unit market-rate apartment development following the City Council’s acceptance of Community Asset Development Group’s offer on October 19.
Community Asset Development Group, LLC (CADG) plans a three-story building with 13 one-bedroom apartments and 26 two-bedroom, two-bath apartments on an approximately 2.5-acre site at 801 W Stanton Avenue.
The apartment development is part of a broader housing pipeline as Fergus Falls experiences tremendous growth. Several additional housing projects are expected to follow, including development on the western five acres of the Stanton property.
“Fergus Falls is experiencing tremendous growth, and housing is essential to sustaining that momentum,” said Mayor Anthony Hicks. “This project and the additional developments in our pipeline will help meet the needs of our residents, support our employers and position the community for continued investment; and there are more projects to come.”
The City and CADG will pursue Minnesota workforce housing assistance to support the project’s financing. The current development model includes a $1.95 million state funding request. Securing that assistance is part of completing the financing package needed for construction, alongside final agreements and required approvals.
The development framework includes a $100,000 sale of the City-owned site, City-provided infrastructure and a rebate of 90 percent of the project’s annual tax increment for 19 years. CADG would pay required building and connection charges. Final agreements will establish the obligations.
According to Klara Beck, the City’s Community Development Director, “The Council’s action moves this project forward. Our next priority is working with CADG to secure Minnesota assistance and complete the financing, agreements and site approvals needed for construction.”
CADG anticipates conventional market-rate housing without income or age restrictions. Preliminary opening rents are $1,257 for one-bedroom units and $1,522 for two-bedroom units. Final rents will be established closer to opening.
The current development framework calls for construction to begin before July 31, 2028, with completion within 12 months of the start. The schedule will depend on funding, financing and approvals; dates may be adjusted by mutual agreement. The City will provide further updates on the apartment project, the Stanton property and additional housing developments as financing and plans advance.
Story courtesy of the City of Fergus Falls.
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