Dominium, an affordable housing development and management company, has obtained tax-credit financing to develop the former Weyerhaeuser lumber site in St. Paul, Minn., into affordable housing apartments. The financing totals more than $96 million.
The development will include 241 affordable units for seniors and 121 affordable units for families. Also included on the site will be a park and a bike trail, along with three roads to be turned over to the city of St. Paul upon construction completion.
U.S. Bank facilitated the financing. Plymouth, Minn.-based Dominium, which acquired the 12-acre site that used to be a lumber distribution center, will immediately start construction on the development, with a planned completion date in early 2020.
Boost Affordable Housing
“By integrating 362 affordable housing units into St. Anthony Park, [Dominium] is giving a number of residents the opportunity to live in a Twin Cities location, who otherwise might not be able to,” said Kyle Kochtanek, assistant vice president of U.S. Bancorp Community Development Corp. (USBCDC), a subsidiary of U.S. Bank. Saint Anthony Park is a neighborhood in northwest St. Paul.
U.S. Bank invested $45 million raised through its investments in federal low-income housing tax credits. Dougherty Mortgage provided $51 million in permanent loans insured by HUD. Bonds underwritten by Dougherty & Co. are bridging the equity provided by USBCDC.
The city of St. Paul provided a $600,000 permanent loan.
The tax-exempt bonds were allocated by the city of St. Paul. The low-income housing credits were allocated by the Minneapolis/Saint Paul Housing Finance Board.