On Wednesday evening, Kasson City Council heard from developers from the Hamilton Real Estate Group, which is asking the city for help in developing a market-priced 47-unit apartment building in southwest Kasson, near Lion’s Park.

The developer plans to purchase 2.5 acres of land at a net price of $ 0.55 per square foot – initially paying $ 2.55, then getting a $ 2 rebate once the project is complete – with an option to purchase of an additional 2.5 acres for a second apartment complex.

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In return for 10 years of property tax abatement assistance for the Town of Kasson, Dodge County and Kasson-Mantorville School District, developers would follow the state’s affordable rental housing rule. , which means that a minimum of 19 units would be leased at the 60% rate. of the region’s median income.

The construction of the apartment complex will cost approximately $ 7,774,000. The development plan includes 18 1-bedroom units and 29 2-bedroom units generating an estimated annual income of approximately $ 554,000.

Mac Hamilton and Ryan Nolander of Hamilton Real Estate gave a presentation to city council describing how the company would first need investors to cover about 25% of the cost. Developers should be able to show a return on investment for investors, and part of the financial plan to achieve this is the property tax reduction and real estate reimbursement.

The company has already built successful apartment complexes in Owatonna, Faribault and, recently, Byron, Hamilton said.

Speaking of the complex being built in Byron, Nolander said, “We see a need here in Kasson similar to that.”

The plan, if approved by the city, would unveil in April or May 2022 and be ready for occupancy in March or April 2023.

Nolander added that the developer would like an option on a second 2.5-acre lot next to the original land, located between the water tower and Lion’s Park in southwest Kasson.

“There appears to be a demand for 47 more units in Kasson,” he said.

A question from the city council asked to what extent apartment units in other projects have been occupied.

“All of them are 100 percent,” Hamilton said. “They will be affordable for people with reasonable jobs.”

In addition to the apartment complex discussion, three other agenda items pointed to growth in Kasson.

First, city council approved the installation of a 500,000 gallon water tower to replace the 125,000 gallon water tower located near the fairgrounds.

Second, the city approved the orderly annexation of land formerly owned by Golden Kernel Farms. The 57.94 acre land is located south of Dodge County Road 34 and US Highway 14 on the west side of town. City administrator Tim Ibisch said the land would likely be used for a combination of residential and commercial development.

Third, city council approved the orderly annexation of the Schuette property on the west side of Minnesota Highway 57, just south of Kasson-Mantorville High School. Ibisch said the property would likely be used for the same purpose, with the 64.89 acres being divided between the commercial lots along the highway and the residential lots behind.

Finally, the city council approved the levy and the budget for 2022. The levy will increase by 6.85% compared to the 2021 levy. Mayor Chris McKern said at this level that if the assessment of a house had not not changed, taxpayers would see a tax bill roughly equivalent to the one they received this year.