Townhome project to break ground

• Townhome project to break ground

A new, 24-unit townhome project is planned for the empty field (at back) between Cecilee Street and Castlewood Drive in Worthington.

Talk about it

WORTHINGTON — Thanks to a partnership between the city, its largest employer and regional agencies, a new, 24-unit townhome project will be under construction within the next year in Worthington.

Lisa Graphenteen of the Southwest Minnesota Housing Partnership said the agency has received an allocation of low-income housing tax credits and funding through the Greater Minnesota Housing Fund, Minnesota Housing Finance Agency and the Department of Employment and Economic Development for the project. The credits and funding, combined with a $50,000 contribution from JBS Swift and Co. and tax increment financing from the city, helped make the project feasible. The city will also provide a 0 percent deferred loan of $20,000 to the project.

“Local participation and local contribution is very important,” said Graphenteen. “Without the city and JBS Swift and our funding going into it, this project probably wouldn’t have been funded. It’s a huge effort between everyone involved.”

The tax credits and funding will allow for 21 of the 24 units to be classified as affordable housing, with rental rates anticipated to range from $520 to $600 per month for a two-bedroom unit and $615 to $695 per month for a three-bedroom unit. Graphenteen said those who qualify for Section 8 vouchers from the Housing and Redevelopment Authority may use them to make the rental rate more affordable. The remaining three units will be classified as market-rate.

Ready by fall 2010

The townhomes will be constructed on what is now a bare farm field on Worthington’s northeast side. Streets have yet to be developed in the neighborhood of Cecilee Street and Castlewood Drive to access the site.

Graphenteen said there is much work to be done before construction starts in the fall of 2009, including purchasing the 1.64 acres for the project, completing street and sewer work, bidding out the project and hiring an architect. The townhomes will consist of 12 two-bedroom units and 12 three-bedroom units.

“Housing is something that takes time,” said Graphenteen, adding that construction is expected to take approximately nine to 12 months, with a completion date expected in the fall of 2010.

That’s a long wait for those dealing with an immediate housing crunch — specifically JBS Swift and Co.

Jenny Andersen-Martinez, human resources director for JBS Swift, said this is the first time the company has put forth funding to assist in housing development in a community. With a couple of other projects also in the works, she said it won’t be the last time the company steps up to the plate to help meet local housing demands.

“We’ve seen the need for quite some time now, and we want to be able to ensure there is affordable housing for our employees,” she said. “No construction can come soon enough. It’s an issue that the community of Worthington has had for over a decade, really. There’s been a shortage of housing.”

Green project

When the Southwest Minnesota Housing Partnership assisted in a rehab project in the Viking Terrace apartment complex a few years ago, they utilized several energy-saving components, including a geothermal heating and cooling system.

While the New Castle Townhomes won’t include the geothermal component, Graphenteen said there are several other “green” features in the project. Those features include low-flow shower heads, faucets and toilets, water-conserving appliances and Energy Star appliances and light fixtures. During construction, on-site recycling for construction waste will be utilized, low- or no-VOC paints and primers will be used, and green-label floor coverings will be installed.

Once the townhomes are available to rent, Graphenteen said they will be open to anyone interested.

“We are not permitted to restrict these units to any particular employer,” she said. “These units are open to anyone who meets the qualifications. It’s just like a typical apartment building.”

At JBS Swift, Andersen-Martinez said she is pleased with the partnership that helped get this building project moving forward.

“We’re excited that we’ve been able to get a project started with partnership and collaboration with the city, and we hope it’s the first of many,” Andersen-Martinez said.

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