Investors look at $20 million in projects

It was announced Tuesday, Feb. 7 that a two- or three-story apartment and retail space could be coming to Waseca at the city-owned “marketplace location.” 

Jon Stagman, accompanied by six others, presented the Waseca city council with an exciting venture. The group, partnered with fiscal agent ‘REVocity, an investment group out of Northfield, has raised more than three-quarters of a million dollars for a Waseca Real Estate Fund intended to invest in the city. The project is in the early stages, but has been underway for more than two years. Stagman’s group gave a presentation to the Waseca City Council on Tuesday, Feb. 7 and asked council members for their blessing and to consider a partnership. 

REVocity has more than 30 years of real estate investment experience and has partnered with numerous Waseca persons and businesses. So far the group has raised three-quarters of a million dollars en-route to their goal of $3 million. 

Some of their general partners in Waseca include Tim Collins, who has 30 years of experience as a superintendent; Benya Kraus, co-founder of Lead for America, National and Executive Director of MN Affiliate; Madison Murphy; Matthew Potter, COO at iWealth; Jon Stagman, owner and president of Pantheon Computer; and Lauren Swanberg. 

The group provided a long list of reasons why it believes expansion in Waseca is a strong investment, including its status as county seat, its strong school system, its location near Interstate 35 and State Highway 14, its historic downtown and its Waseca 2030 development plan. 

Once the group has raised $1 million, the fund will activate. When it has $3 in assets, the plan is to leverage that amount, through banks and financing, to invest between $12 and $20 million in “impact” or real estate investments. 

During their presentation the group also identified up to 10 different locations for its “real estate project pipeline,” concluding with pictures showing their “Marketplace Project Vision.”

The planned project could see mixed-use development including a retail space with one, two, or three floors of residential rental space on top. 

With the conclusion of the presentation, the group asked the city to consider a partnership and to consider a development agreement for the Waseca Owned Marketplace site.

“I had the pleasure to sit in on a meeting with this group last year,” Waseca Mayor Randy Zimmerman announced. “I came away ecstatic.”

“I’m ready to proceed with this,” Councilman Jeremy Conrath said.

“No action should be taken tonight because this was not on the agenda,” Zimmerman stated. “I feel that’s just good practice.” 

Complications and concerns were raised regarding the city’s contract with Walmart. Under the terms of that agreement, the store may have veto rights on the plan in its current form. However, numerous locations other than the one next to Walmart had already been offered.

No action was taken, but talks with the city will continue and a work session will likely be scheduled for a future date.