Three developers are making plans to build more housing in Faribault. Two apartment complexes and a senior facility are proposed.
The Faribault City Council approved preliminary development agreements with the companies on Tuesday.
The city has been working with Hamilton Real Estate and Aleph Holdings to begin the process of building more apartments.
“According to the study a few years ago, we still have a need for more than 500 rental units. This would be a positive addition to the community,” Community and Economic Development Director Deanna Kuennen said of the planned apartments.
Hamilton Real Estate is in the beginning of the process of raising a 74 unit apartment complex on city-owned property south of the Highway 60 viaduct. The March 8 City Council meeting packet revealed that the discussion of development was the topic covered at the closed council meeting on Feb. 8.
Aleph Holdings is planning to build a 200-250-unit apartment complex on city-owned land near the intersection of Willow Street and 220th Street, east of the Faribault Soccer Complex. According to the packet from the City Council meeting on March 8, Aleph Holdings’ potential development was a topic of discussion during the closed city council meeting on Feb. 15.
“Both projects are intended to move forward this year,” Kuennen said. “The preliminary development agreements give them the ability to start investing in the projects and get through the planning process yet this year.”
Kuennen believes that the developers will be able to complete their planning and begin construction in the not-so-distant future.
“I think 6-8 months,” she said. “These developers are seasoned enough that they could get through the financing process and be ready to break ground this fall.”
Redline Development also wants to build a senior living and memory care facility on city land close to the property that Hamilton Real Estate is developing. It is proposing at least one single-story, “cottage-style” building and has indicated an interest in potentially developing more, according to council meeting documents.
“The city has not done a demand analysis on senior living or memory care,” Kuennen said. “This developer has told us that Faribault has been a market that they have been looking at for some time, and it would be their responsibility to see if there is demand.”
Additional city approvals will be required before each project can be constructed.
As Faribault continues to grow, Kuennen said city staff are working to meet the community’s needs.
“We are continuing to try to identify and attract different developers to the community,” she said. “We hope to see a variety of housing pop up in Faribault, not only apartments, but this will help the shortage that exists and provide options for our residents.”
Reach reporter Spencer Beissel at 507-333-3129. © Copyright 2022 APG Media of Southern Minnesota. All rights reserved.