WREDC Housing Fund to support newest Worthington Housing Development
Worthington, MN. Worthington Regional Economic Development Corporation (WREDC) provided a $100,000 housing challenge fund loan to South Lake Development LLC for building 12 owner-occupied duplexes. The development marks the first time WREDC offered its housing challenge fund to help encourage new housing starts in Worthington. The housing challenge fund was established by WREDC board with direct contributions from JBS & First State Bank Southwest.
This is going to be a very well designed neighborhood right across 1st Avenue from Prairie Elementary School with very nice amenities and well-built units said Al Drost, developer and partner in South Lake Development LLC. Dan Krueger, the other half of the partnership, added that South Lake is a planned unit development (PUD) where maintenance & upkeep of the common elements such as snow plowing, mowing & landscaping and overall outside maintenance will be done by the association. Mr. Krueger added that the base price would be between $215,000 and $259,000. WREDC Chairman Bill Wetering said this in an exciting opportunity for WREDC to encourage young investors to provide quality-housing options.
The project funding was put together through cooperation between First State Bank Southwest, WREDC & JBS. Abraham Algadi, Executive Director of WREDC, said that WREDC housing challenge program continues to be funded by WREDC private partners and is another tool to help us meet housing needs.
Mr. Drost said that they plan to break ground on the infrastructure for the development first week in June. He further added that they plan to build up to 25 units by the time development is completed. Mr. Krueger said that the first few units are pre-sold, and “we are very excited to finally get going”. Brad Meester, Commercial Lender, First State Bank Southwest, said this is exactly the type of partnership we seek to help us meet housing challenges. General Manager of JBS, Brad Hellinga, said “we are glad to have the opportunity to work with WREDC & private partners on this project”.
The housing challenge fund loan program & Nobles Home Initiative tax abatement program are tools developed by WREDC working closely with partners at Nobles County, City of Worthington, & ISD 518 School District to provide local solutions to meet housing needs. For more information on NHI or the Housing Challenge Fund, please contact WREDC at 507-372-5515. For details on South Lake Development please contact Dan Krueger at 507-360-1031 or Al Drost at 507-370-5155.