Tax abatements will allow Montevideo housing development
The city of Montevideo and Chippewa County have approved tax abatements requested by a developer to develop an estimated $3.9 million, 38-unit apartment facility. The city of Montevideo supports the project to address a housing shortage.
MONTEVIDEO — The Montevideo City Council and Chippewa County Board of Commissioners each approved tax abatements this week to make possible a 38-unit, market-rate apartment facility Montevideo.
Montevideo City Council members on Monday approved a $570,000 abatement of city taxes over 15 years in a unanimous vote. The county commissioners approved a $285,000 abatement of county taxes over 15 years in a unanimous vote Tuesday.
The abatements were requested by INH Properties of Waite Park, Minnesota, doing business as Montevideo Multifamily LLC. The company is planning to develop a mix of one-, two- and three-bedroom apartment units on property near the Running’s store on the city’s east side. The project is expected to cost $3.9 million.
The Montevideo Economic Development Authority is transferring the property to the developer. The agreement also requires that the city and county reimburse the developer for up to $285,000 for soil corrections that are needed at the site for the project. The city is responsible for 67 percent and the county for 33 percent of the total reimbursement.
The city has supported the project to address a housing shortage in the community. A 2019 study by AdMark Resources identified a need for both rental and owner-occupied housing in the community.
The study stated that “at a minimum,” the city should work to attract 24 to 32 units of one-, two-, and three-bedroom apartments as well as four to six two- and three-bedroom townhomes.
The city has also been working to promote housing development in anticipation of greater housing demand when a Minnesota Veterans Home is constructed in the community. It is expected to create the equivalent of 105 full-time jobs when operating. State funding has been secured for the home, but it has not yet received a federal appropriation.