A firm developing a $15.5 million senior campus in Monticello has its eyes on another project within the city.
Lakeville-based Headwaters Development LLC has presented to the Monticello Economic Development Authority plans for $34 million senior housing project at West Seventh Street and Golf Course Road that would include 120 apartments and 37 single family homes. A second 120-unit senior apartment complex could also be part of the long-term plan.
The land has long been owned by the EDA after being obtained years ago from Wright County, which acquired the land as a tax-forfeit property, according to Jim Thares, economic development manager for the City of Monticello.
The EDA has granted to Headwaters Development a “right of entry” agreement which allows the developer access to the 16.7 acres to perform due diligence work, including land surveying and the testing of soil on the property.
As Monticello Community Development Director Angela Schumann explained, the “right of entry” agreement allows Headwaters Development to understand more completely the condition of the proposed development site.
Michael Hoagberg, president of Headwaters Development, attended the December meeting of the EDA to discuss the project and a letter of intent submitted to the EDA by Headwaters Development.
Hoagberg, who’s firm is constructing the 96-unit Willows Landing at Hart Boulevard and County Road 39, told the EDA that Headwaters Development is not a short-term developer and looks to invest in the communities in which it develops projects. That led Headwaters Development to the West Seventh Street/Golf Course Road site, Hoagberg said.
Hoagberg asked the EDA to work with his firm in moving towards the next step in making the project a reality, which could occur later this month if the EDA and Headwaters can work out details to meet during a yet-to-be-scheduled January workshop. Some items needing clarification before the project could launch would be the value of the land, details of Headwaters-requested tax-increment financing, bonding and- possibly most important of all- the EDA sale of the property to Headwaters Development. Headwaters Development is seeking tax-increment financing to help offset grading and construction costs.
For that reason, members of the EDA voted unanimously to table any approval of a senior housing development.
The EDA-owned property that Headwaters Development has its eyes on is currently zoned for medium density residential.
In the spring of 2019, the EDA considered leasing part of the land to a contractor doing work on the upcoming expansion of Interstate 94 between Monticello and Clearwater. The contractor wanted to use the land as a staging area for construction. The EDA did not enter into an lease agreement with the contractor, however, because of a concern of traffic noise and other construction-related impacts upon the neighborhood.
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