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.

There is essentially 100 percent occupancy rate for rental units in Montevideo. The city of Montevideo and Chippewa County are supporting tax abatements to support the development of 38 new apartment units to help address the housing need in the community. West Central Tribune file photo

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.

Montevideo celebrated news in September 2018 that the state would help fund development of a Veterans Home in the community. While the city is still waiting for federal funding, it is working to increase the housing supply for the increased numbers of workers the home will bring to the community as well as address an existing housing shortage. West Central Tribune file photo

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