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When built, the $5.5 million Downtown Tofte Project might not look exactly as it was first proposed. Costs keep rising, and winter never lets go, which doesn’t help.
“This year, the build start time is shorter than the last few years, so hitting that short start date window dictates some of our options,” said Joe Swanson.
Joe Swanson and Pipasu Soni are the owners of Bluefin Bay Family of Resorts and are behind the Downtown Tofte Project.
A significant piece of funding sought through the Minnesota Housing Finance Authority rural workforce housing is on hold.
“Minnesota Housing did not put our project on their final loan list this week, so that option is in pause mode.”
Swanson offered his comments to the newspaper on Wednesday, April 20.
As Swanson noted earlier this year, “The largest concern is the cost to build is much higher than we first saw in our bids, and the rents will not pay for the cost to finance and own when the building is complete.”
Still, there is no thought of quitting, and plans are moving forward.
“We continue to deal with high construction costs, so we are reviewing ways to be more efficient with a build in Tofte,” noted Swanson.
As proposed now, The Downtown Tofte Project consists of two mixed-use buildings, including 14 workforce housing apartments and six commercial/ retail spaces in Tofte. The goal is to add more employment and housing to Tofte and the surrounding community.
“Our team continues to work on ideas and funding. We are optimistic about building a variety of buildings as we go,” said Joe, adding, “We simply need to navigate a complex list of considerations.”
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