ROCHESTER – Some flexibility is being sought to provide downtown workers’ housing for students, nurses and other service workers.
Sixty percent of the 180 apartments in the newly built Bryk on Broadway Apartments are reserved for residents of these areas, on the assumption that they earn less than approximately 80% of the area’s median income, which is $62,450 for a single person or $89,200 for one single person is a family of four.
“Based on current income reviews, these positions earn above the 2022 (US Housing and Urban Development) income limits for 80% AMI,” said a report to Rochester City Council prepared by Rochester Strategic Initiatives Director Josh Johnsen.
Johnsen points out that a delay in updating federal income limits has created what is likely to be a temporary discrepancy between standards and actual incomes as a new apartment complex at the intersection of North Broadway Avenue and Civic Center Drive begins renting apartments
Income limits are expected to be updated this year to reflect rising area median income locally.
As the city’s economic development agency, councilors are being asked to temporarily lift income limits on half of the 108 apartments earmarked for the building’s highest income bracket.
The six-story complex will receive financial backing through tax hike funding in exchange for keeping rents at set levels for 30 years.
The agreement with the city stipulates that 54 units will be dedicated to households earning less than 50% of the region’s median income, that is, individuals earning less than $39,000 and families of four earning less than $55,750.
Another 18 units are designated as affordable for households earning less than 60% of the region’s median income, ie, individuals earning less than $46,850 and families of four earning less than $67,000.
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Johnson reports that the Bryk is beginning to have some success filling the lower-income apartments, with rents ranging from $976 to $1,673 for people with 50 to 60 percent of the area’s median income, but people have been turned away because of the more expensive units due around earn more than 80%.
City officials recommend raising the allowable household income to 110% of the area’s median income for half the more expensive apartments by October 1, 2023, to allow the developer to fill available units.
Thereafter, the income requirement would return to 80% of the area’s median income for the remainder of the 30-year agreement.
Rochester Council will meet as the Economic Development Authority at the end of its regular session on Monday at 7pm to consider the application.
If the change is approved, the change must also be approved by the State Board of Directors of Destination Medical Center Corp. be approved as the Bryk project agreement has been approved as a public infrastructure project receiving TIF support.
Meetings scheduled for the week of March 20 include:
Rochester
- City Council Study Session, Monday 3:30 p.m. At the Council Chambers, City and County Government Center, 151 Fourth St. SE. The meeting will be broadcast live at www.rochestermn.gov/meetings/council-meetings and will be available on Spectrum cable channel 180 or 188 and Metronet channel 80.
- City Council, Monday 7 p.m. in the Council Chambers of the Government Center. The meeting will be broadcast live at www.rochestermn.gov/meetings/council-meetings and will be available on Spectrum cable channel 180 or 188 and Metronet channel 80.
- Fire Civil Service Commission, Tuesday 3:15 p.m. in City Hall Room 104, 201 Fourth St. SE.
- Park Board Study Session, Tuesday 4:30 p.m. in Room 320 of City Hall.
- Planning and Land Use Commission, Wednesday 6:00 p.m. in the Council Chambers of the Government Center.
Olmstedt district
- Administrative Committee, Tuesday 1 p.m. in Conference Room 2 at Government Center, 151 Fourth St. SE.
- Physical Development Committee, Tuesday 2:15 p.m. in Conference Room 2 at the Government Center.
- Health, Housing and Welfare Committee, Tuesday 2:15 p.m. in Conference Room 1 at the Government Center.
- Housing and Redevelopment Authority, Tuesday 4 p.m. at the Board Chambers of the Government Center.
- Board of County Commissioners, 6 p.m. Tuesday at the Board Chambers of the Government Center.
- Rochester-Olmsted Council of Governments, Wednesday noon in Conference Room 186, 2122 Campus Drive SE in Rochester.
Rochester Public Schools
- School Board, Tuesday 5:30 p.m. in the Edison Building Boardroom, 615 Seventh St. SW.
Destination Medical Center
- DMC Corp. Board of Directors, Thursday 9:30 a.m. at the Mayo Civic Center, 30 Civic Center Drive SE.
