EDA Director Mary Somnis was thrilled to announce that the Minnesota Department of Employment and Economic Development (DEED) included the Lutsen housing project in its latest round of grants.
DEED announced the grant awards on Wednesday, Dec. 14.
Rental housing projects in four Greater Minnesota communities were approved for $2.87 million in grants from DEED. Funding was awarded under DEED’s Workforce Housing Development Program, which supports housing projects in Minnesota communities where businesses are struggling to recruit and retain workers because of local housing shortages. This round of funding was awarded for new market-rate rental developments in Worthington, Warroad, Glenwood and Lutsen.
“Businesses in some parts of the state are struggling to expand because of scarce housing resources,” said DEED Commissioner Shawntera Hardy. “This program encourages new housing projects that will help companies attract employees while at the same time making it easier for workers to find housing close to their jobs.”
The funding will help One Roof Community Housing build 16 rental units in Lutsen on property purchased from Arrowhead Electric. DEED funding will cover about 12 percent of the project’s $2.7 million cost. Many businesses in the area have said their ability to grow is limited by a lack of workforce housing. In addition to seasonal employees, full-time year around employment in the region includes Lutsen Resort, Lutsen Ski Area, Bluefin Bay, Caribou Highlands Lodge and Cook County.
“The Cook County/Grand Marais EDA is proud and delighted to receive this grant,” said Somnis. “Many people, wise in the ways of development, have donated lots of volunteer hours to bring this workforce housing to reality. The approval of this state funding is a great example of how the EDA is leveraging the investment of local funds. We are grateful to our partner, One Roof Community Housing, for their commitment to this project. Special thanks to Senator Tom Bakk and Representative Rob Ecklund for their support of our application to MN DEED’s grant program.
“Our pre-construction work is not yet done but our plan is to build in 2017,” Somnis said.
The EDA is contributing $140,000, and local tax abatement proceeds will support a $1.6 million loan. In addition, the Iron Range Resources and Rehabilitation Board may contribute $250,000 and the Greater Minnesota Housing Fund may loan $100,000.
DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development.
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