County support is last step of Marketplace funding

During their July 1 meeting, members of the Waseca County board of commissioners approved a $250,000 grant of local housing trust funds to the Marketplace construction project, a 36-unit apartment building to be located south of the Waseca Walmart parking lot along Second Street Northwest.

 

According to discussion which took place during the morning’s work session, securing the grant from the county was the final step in filling a “funding gap” for the $7 million project. The City of Waseca had already approved a $200,000 forgivable loan to help support construction.

 

The motion to approve the grant passed 4 to 1, with commissioner Brian Harguth dissenting.

Information summarized by planning and zoning administrator Tina Wilson indicates that, with all funding now in place, the City of Waseca will sell the property near Walmart to project developers for $1. Groundbreaking is expected by Labor Day, with construction to begin soon afterward. Apartments are scheduled to become available for rent in the fall of 2026.

The project is eligible for the grant because eight of the 36 units will be designated for reduced-rate rentals to those who qualify under specific government programs.

 

The local housing trust (LHT) fund consists of money allocated by the state and distributed to county and municipal governments to help support specific initiatives, including the construction of housing.

 

“This is definitely more a marathon than a sprint.” commented Chris Kennelly of Rebound Partners, the consulting firm working with local investors on the project, which had come to something of a pause in 2024 after falling about $1 million short in funding. Rebound leaders Kennelly and Marc Basara appeared at the meeting to answer questions. Few were asked prior to the vote, however, because commissioners had received an extensive briefing from Wilson on the terms and conditions of the grant during a work session which had ended about 30 minutes before.

 

Concerns expressed during the work session included whether local taxpayers are supplying any of the grant money; the response made it clear the money had come from state allotments through two programs, Statewide Affordable Housing Aid and Local Homelessness Prevention Aid. It was also mentioned staff members from both the county and the city will need to approve expenditures of the money so that it can be ensured each one meets LHT requirements, one of which is that the money be spent only on construction.

 

Commissioner De Malterer expressed her support for the project saying she sensed excitement from many local agencies that new housing is in the works. She mentioned the school district, local businesses and the City of Waseca.

 

“We want to be sure everyone who needs a home has a home,” she commented.

 

Also during the July 1 meeting, commissioners approved about $430,000 for the replacement of a six-foot-square culvert under the south end of County Road 23. County engineer Jim Kollar reported the culvert had been poured in place “probably in the 1930s,” later “extended using timber,” and that it is in poor condition. With CR 23 due for resurfacing in 2027, he suggested performing the replacement now will help ensure everything will have “settled” prior to the roadwork.

 

Kollar mentioned funding for the project will come from local option sales tax receipts. Construction is expected to begin shortly after Labor Day and continue for about three weeks.

 

An informal discussion regarding planned construction for a county justice center revealed work on a new design is ongoing. County administrator Michael Johnson termed his discussions with the architectural firm Widseth as “encouraging,” with some preliminary cost estimates well under $30 million, despite the recent setback of learning the current law enforcement center, located west of the courthouse along Third Avenue Northwest, cannot be remodeled.