Rochester City Council Approves Public Assistance for Affordable Housing Development

Rochester, MN (KROC-AM News)- The Rochester City Council, acting as the city’s Economic Development Authority, has approved providing public assistance for an affordable housing project. 

Read More: Rochester Developer Seeks City Funding for $61 Million Affordable Apartment Project 

The elected leaders voted unanimously to provide the tax increment financing during their meeting Monday night. 

Rochester I Limited Partnership, led by Lincoln Avenue Communities Development, requested the public assistance. 

Rochester City Council Unanimously Approves Public Assistance for Affordable Housing Development Near Downtown

The project, being called The Common at Bear Creek, calls for construction of a six-story, 149-unit apartment building near downtown Rochester.

It would be located on the south side of 4th St. SE, just east of the bridge over Bear Creek. 

The plans include a mix of one, two and three-bedroom apartments with surface and below-grade parking.

Also included are a fitness room, a clubroom, and secure bike parking. 

Unit Availability Based on Income

Meeting documents indicate two percent of the units will be priced as affordable for households at or below 30% of the area median income (AMI). 

See Also: Rochester Man Now Facing Charges in Two Sexual Assault Cases 

18% of apartments will have rents affordable for those earning 50% of AMI, while 56% of the units will target renters at or below 70% of AMI.

The remaining 24% will be priced to accommodate incomes at or below 70% of AMI. 

$1.4 Million Awarded in Tax-Increment Financing

The developer requested $1.379 million in tax increment financing on a pay-as-you-go basis. 

That means the developer will fund the project upfront and will be reimbursed as taxes generated by the new development are collected over time. 

The overall cost of the apartment project is estimated at $61 million. The proposed development agreement calls for construction to begin before August of 2027 and to be completed before the end of the year.