by April Scheinoha
Reporter
A groundbreaking ceremony was held Friday, Aug. 14 for River Pointe Townhomes, a 24-unit townhome complex in Thief River Falls.
Construction has already started on the six four-unit buildings on Alice Drive, south of Greenwood Street. The townhomes will consist of 12 two-bedroom units and 12 three-bedroom units. D.W. Jones Inc. President Skip Duchesneau said it is estimated that the complex will be finished in May 2016. The entire project is estimated to cost $5,038,762.
Each unit will feature a private entrance, a patio and a single-car garage. A playground will also be located on-site.
Some residents will receive supportive services from Inter-County Community Council. In addition, six units will receive rental assistance through the Northwest Minnesota Multi-County Housing and Redevelopment Authority.
This is the third site on which D.W. Jones Inc. has tried to build the townhome complex. Two other locations – at Annie Street Park and also along Van Rooy Drive – were rejected by neighbors. “This project hasn’t necessarily been easy,” said Duchesneau, who noted that the project has taken numerous twists and turns like the Thief and Red Lake rivers.
This is one of at least four housing developments planned in the city of Thief River Falls in the near future. D.W. Jones Inc. is planning to construct two apartment buildings on the west side of the city as part of one of those housing developments.
Mayor Brian Holmer described this groundbreaking ceremony as a kickoff to affordable housing and a kickoff to bigger and better things in Thief River Falls.
Other speakers also referred to the need for housing in the city of Thief River Falls. Wes Butler, assistant commissioner of the Minnesota Housing Finance Agency, noted the number of people who drive many miles to work at Digi-Key each day. Butler said, “Projects like this will make a difference.”
Wally Sparby, speaking on behalf of Congressman Collin Peterson, spoke about Thief River Falls’ job market. He thanked those who made this project happen.
Rep. Dan Fabian said the townhome complex will be an asset to Thief River Falls. Referring to how the project came to fruition and complicated banking regulations, Fabian noted it should be easy for developers to obtain funding for housing. He noted that City Administrator Larry Kruse has spoken numerous times at the Capitol on behalf of the city’s quest for housing.
Various groups made the project possible. Duchesneau thanked the Thief River Falls City Council, Thief River Falls School Board and Pennington County Board for their assistance in creating a Tax Increment Financing district.
Duchesneau specifically thanked Kruse, Community Services Director Mark Borseth, Pennington County Economic Development Director Christine Anderson, and residents Ralph and Mary Matter for their assistance. Duchesneau said the Matters provided a sliver of their land in order for Alice Drive to be extended.
The project was funded through a variety of means. The project received TIF in the amount of $192,000. With TIF districts, most of the increased taxes from the new development are used to fund the infrastructure improvements for as long as 26 years. The current taxes are still collected and given to the appropriate government groups.
MHFA provided funding for the TIF district as well as additional funding for first and second mortgages totalling $1,266,451. MHFA also administers the Federal Housing Tax Credit Program, which allowed D.W. Jones Inc. to sell tax credits to generate $3,579,252 of equity into the project. The firm provided the remainder of the funding needed to construct the townhome complex. The state and federal governments provide funding for MHFA.