VALLEY CITY, N.D. (NewsDakota.com) – The Valley City-Barnes County Development Corporation took the first step toward construction of a 42-plex on land they own on Winter Show Road in Valley City during a special board meeting on June 25th.
Matt Pedersen, President of the Corporation, stated “This project represents an investment in jobs. These 42 multifamily units will serve as a supporting role to our primary mission of attracting new jobs to our community. Employers routinely ask about available housing when expanding and hiring. Through a collaborative approach between private and public capital, the Valley City – Barnes County Development Corporation continues to blaze the trail in North Dakota for innovative ways to grow our economic base.”
Director of Development for the Valley City Barnes County Development Corporation, Jennifer Feist said after considerable conversations over the last several months, the Board approved making the vacant lot east of the Regional Technology Center available for multi-family housing. The 42-plex would be located on the east end of the lot. She said this is the first step with many items that need to be completed before construction can start, specifically financing and securing approval from the City of Valley City of a PILOT (Payment in Lieu of Taxes) application. The Bank of North Dakota’s Flex PACE for Affordable Housing would be part of the bank financing. Savings from the PILOT and Flex PACE would be passed on to the tenants to reduce rent, which otherwise would be higher.
She said the total project investment is estimated at $7 Million, which is being undertaken by H & G Holdings, LLC owned by George Gaukler and Bruce Hoyt. The Development Corporation’s investment would include the land valued at $300,000 and $700,000 as an equity investment with funds requested from the City utilizing the City Sales Tax Fund dedicated to economic development. Because of the deal structure, the Corporation would not be responsible for guaranteeing the construction costs, mortgage, and operating costs. Feist said this project is a community-based investment and not a normal real estate investment where the partners are seeking a specific return. The return on investment is providing housing for the community so it can continue to grow.
Feist said starting construction this year means the new complex would be available for occupancy on or before the end of 2025. Waiting until May 2025 to start delays that timeline to mid-2026 or later.
In the meantime, Feist said the Development Corporation will be continuing its work of primary sector development and job creation. Housing is one of the critical factors that must happen for growth to continue. If people don’t have a place to live here, they will need to live elsewhere and commute to Valley City-Barnes County, which we don’t want. She said this is an effort to positively impact job growth, school enrollment, businesses providing goods and services, retaining, and increasing population, and overall increasing the tax base.