At a June 7 special meeting, a proposal was presented to the Cottage Grove City Council for a new affordable senior housing development in the city. The proposal is for the construction of a new 52-unit senior housing complex on a currently open lot at 7601 79^th St. S.

The developer, Twin Cities-based Trellis Co., specializes in creating affordable housing solutions. The project as planned hopes to provide two-thirds of its units for rent at 30% of area median income (AMI) and the remainder at 60% of AMI, aiming to allow seniors to find “deeply affordable” places to live in Cottage Grove. With property values and rent in the city rising noticeably over the last few years, some residents, particularly seniors on fixed incomes, have been finding it more difficult to stay in their homes.

At this early stage, the proposal is being received favorably by the council, but funding hurdles must be navigated to close current cost gaps. Approximately $175,000 is currently needed to bring the project to full funding of $15.86 million, which is lower than previous estimates of a $450,000 shortfall. Given the lower-than-market rents being proposed for the complex, a projected 16-year term of tax increment financing (TIF) or a cash grant payment as a business subsidy are under consideration to complete funding.

While the city has not worked directly with Trellis Co. before, the need for this type of senior housing in Cottage Grove is recognized and has traction. The proposal will move forward to the Planning Commission on June 26 for further presentation, discussion, and approval, and then it would advance to the city council on July 19. If approved, the Economic Development Authority would look to finalize the financial details in early August and put the project in motion for construction to begin in 2024.