BEMIDJI — The Bemidji City Council approved a resolution during a Monday special council meeting that allows the application of a housing infrastructure grant. If awarded, a significant housing project that immediately brings 39 mixed-income units to Bemidji would follow, with additional phases set for the future.
The is leading the application process to develop a potential housing project on Beltrami County Housing and Redevelopment Authority land. The HRDC can secure up to $500,000 for its proposed project; the city must match the awarded grant.
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The match initially led to concern when the application was first proposed during a May 27 council work session.
Some councilmembers wondered if the city could afford a $500,000 pledge. City Manager Rich Spiczka explained that the city could utilize Tax Increment Financing to fund the project, but did not have an official figure. Thus, the council asked for an official figure before an official vote.
And during Monday's meeting, Spiczka explained that the city would be able to use roughly $448,000 of TIF for the project. Additionally, the Beltrami County HRA pledged $100,000 toward the project.
The city would still need to pay its portion of the funding up front, as TIF is awarded after a project concludes. To accomplish this, Spiczka said the city could use enterprise funds.
Mayor Jorge Prince asked if the city could fund its portion of the project any other way and Spiczka confirmed that the city could.
Since Spiczka demonstrated that the city could afford an up to $500,000 pledge, the council unanimously voted to approve the resolution. Each councilor expressed support for the grant and the project, while demonstrating a need for housing in the area.
The HRDC will submit its application before the June 12 deadline. Once the HRDC knows the outcome of the application, it will provide an update. Conversely, the council will determine how it will pay for its portion of the project if the HRDC is awarded the grant.
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This was the only item considered during the special council meeting.
The council will next meet for a regular meeting at 6 p.m. on Monday, June 16, at City Hall. All meetings can be viewed on the