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A Lindstrom City Council thumbs-up will give an apartment complex the support it needs to advance in a competitive housing tax credit program the  developers will be applying for.  

Reuter Walton development group proposes a re-use of the vacant O-Jay Juice site, adjacent to Carlson’s Amoco on the south side of Hwy. 8.

Mayor Judy Chartrand commented, the parcel has been an “eyesore, no doubt” but expressed her concern that if the whole lot gets taken up for housing the city sees its commercial/retail options shrink even more. But, then, the property has been on the market for years as commercial—and there have been no takers, she added.

Council member Brian Norelius said he agrees. But having to vote to draft a letter of support this evening, with just one emergency meeting on the project, leaves him feeling “pushed into a corner.”

Council member Greg Krueger added that he’d support the concept but wants to see more square footage of the site left unbuilt for commercial uses, especially the frontage on St. Croix Avenue (Highway 8). “It’s a chicken and egg thing,” he continued. The economic development and business investment will come once the new residents (customers) are in the new building.  Council member Krueger also said the development team needs to work with the neighboring property owners to achieve good traffic flow, ingress and egress and not disrupt longtime merchants in Scottsdale Mall or at the gas station/service center.

Mayor Chartrand commented that the city hears from larger employers, like the school district, that “workforce” housing is sorely needed.

This project as a tax credit investment opportunity would allow a good percentage of the units to be held to an affordable rental rate.  The formula takes the area median income or AMI into consideration and number of people in the future households

The vote to support a 50-unit application ended at 4-1 with Council member David Waldoch opposed.  Lindstrom will send the state a letter of support to be included in Reuter Walton’s application package for tax credit status/funding.

Waldoch expressed concern about the impact on the city tax capacity should this parcel no longer be pegged for non-residential. 

Reuter Walton spokesperson Jared Ackmann said the land owner and Reuter Walton are cooperating on this project.  Reuter Walton has many other housing projects up and running and  will be the owner for a minimum of 30 years. It is working with an experienced property management firm the Halverson Blazer Group, on this.

The state decision on eligible tax credit projects is expected in December.  

This project is also slated to request redevelopment assistance from the Chisago County HRA/EDA, which has not been finalized yet.  Council was advised there are no plans for pursuing Tax Increment Financing benefits.

City Administrator Dan Undem assured council the project faces all the normal regulatory review of the city standards and requirements for building materials, etc.  Council is just being asked to support the concept for workforce housing at this site.  Undem explained that the emergency session last week was necessary because there is a July 11 deadline for the tax credit program applications to be received by the state.

There won’t be any detailed review for local aspects tied to this project  until Q-1 in 2025, Ackmann shared.

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