GRAND RAPIDS — Several housing projects received funding late last month as part of a new pilot project for the Minnesota Department of Iron Range Resources and Rehabilitation.
The largest project to receive grant funding is a planned four-story, 132-unit apartment building in Grand Rapids. The Grand Rapids Economic Development Authority will receive $600,000 from the IRRR toward the almost $29 million project. The apartments would be market-rate and aimed to provide workforce housing.
Rob Mattei, Grand Rapids community development director, said workforce housing is a major focus as employers expand and new employers — like the planned cannabis processing and manufacturing facility — move in to the city.
"We've got a lot of things in the hopper that we're working on," Mattei said during a recent phone interview. "Not all of these jobs are going to be created in the first year — they'll be over probably a three- to five-year period.
"So we're hoping that that demand is going to continue to drive interest in the development of housing, and we're going to do what we can to make it feasible for that to happen."
GREDA has a preliminary development agreement in place with Oppidan Inc., which is performing due diligence on the proposed apartment complex. If it moves forward, it would be located just north of West Rapids Elementary School.
The IRRR Board has already supported the project through a $200,000 grant acquired by the city of Grand Rapids, which will fund pre-development work like soil borings, preliminary site design and the initial environmental report.
GREDA is also seeking funding from the Minnesota Housing Finance Agency's Workforce Grant Program to offset construction costs. The state housing grant program targets small to medium-sized cities, communities or areas in Greater Minnesota with rental workforce housing needs. Communities are required to secure funds that match one dollar for every two dollars in funding offered through this program.
Other housing grants
Bovey received a $280,000 grant to help repurpose the Connor-Jasper Middle School into a 20-unit apartment building. The school was part of the Greenway School District until its closure in 2012. Part of the historic building was demolished in 2022 following a fire.
The housing funding is part of a pilot project for the IRRR Board, which approved $5 million for proposals in the agency’s service area this budget year.
State Rep. Spencer Igo, R-Wabana Township, and chair of the board, said he was impressed by how many units would be developed with the help of agency funds.
"I know you said it might fluctuate a little, but 251 new or rehabilitated housing units with an average agency investment of a little over $14,000 — and we're going to produce that much housing," Igo said.
"I think that just emphasizes the great work that every member of the staff at the agency has done, especially going out on a new idea like this. And it's going to yield amazing results."
Other grants range from $100,000 to $850,000 dollars to construct or prepare land for apartments, town houses and single-family homes in Chisholm, Ely, Grand Marais, Tofte and other Iron Range cities.
