Public hearing request for tax abatement consideration for proposed Mora apartment complex stalls at Kanabec County Board meeting

A request for a public hearing on tax abatement consideration and a development agreement for a proposed apartment complex in Mora failed at Tuesday's Kanabec County Board meeting.

Mora community development director Kirsten Faurie explained that a developer has proposed constructing a 35-unit, three-story complex on Dala Lane. It would be a market-rate rental property, ranging from $850 to $1,300 a month.

The estimated cost of development is about $6 million.

"Due to the high cost of building and materials, the developer is requesting tax abatement assistance from the city and the county in order to make the project financially feasible," Faurie said.

The developer, Eagle Ridge Estates, most recently completed the 25-unit Village Apartments in Pine City in 2023.

Faurie said Eagle Ridge Estates is looking to provide workforce housing with the project. 

"We just completed a housing needs analysis for the city of Mora, and this type of housing aligns perfectly with what was projected as a high need for the area," Faurie said.

Mora's rental vacancy rate is half a percent; a healthy vacancy rate is considered between five and 10 percent.

A review conducted by financial consulting firm Ehlers concluded that 90 percent assistance over an anticipated 15-year term from both the city  and county was warranted for the project.

About $300,000 would come from the city, and $350,000 would come from the county.

County commissioner Todd Sjoberg spoke against tax abatements.

"I don't believe in abatements myself," he said. "I think a person needs to come in with a solid marketing plan. Ten percent abatement of your total gross of your building should not make a difference to any developer."

Sjoberg also expressed concerns that the city of Mora will not receive a return on its investment for 15 years.

"I have to look at my constituents, both county and city," Sjoberg said. "They're getting hit twice. I don't care which way you look at it, my senior people in this town don't need any more taxes, and if you're going to put that out there for somebody to have a profitable business, I can't see taking that out of my constituents' pockets."

Faurie said a deeper, more detailed financial dive would be possible during a public hearing.

A motion to hold a public hearing on the proposed tax abatement was made by Wendy Caswell, but failed for lack of a second.