Oronoco Economic Development Authority Explores Housing Projects and Innovative Solutions to Address Shortages
- Meeting Overview:
During the recent meeting of the Oronoco Economic Development Authority, strategies to alleviate regional housing shortages took center stage. The Authority discussed a significant proposal for a housing project on a 5.32-acre plot of land previously tied to the People’s Energy Cooperative. The cooperative aims to facilitate housing development by offering the land with guidelines to prioritize affordable housing—a concern reflected in community surveys. The cooperative’s approach focuses on community benefits and encouraging further projects by reducing risks for potential developers.
Marty Wolf, representing the cooperative, highlighted the transition of the land from a former septic system site to a potential housing development area, thanks to a connection to the municipal sewer system. He underscored the regional need for more housing options, particularly affordable ones, which could help mitigate inflated market prices. The project, referred to as the Oronoco housing project or crossing housing project, proposes selling the land with development guidelines to ensure alignment with community needs and public health standards. The cooperative is not taking on housing development directly but aims to inspire it by facilitating land access and zoning changes that integrate the site into city limits.
The Authority explored innovative strategies to address housing shortages, including considering a reduction in the appraised value of certain parcels of land, offering them as forgivable loans contingent on adherence to a development agreement. This strategy leverages a low-interest loan from Derryland Power to ease financial pressures on the project. Custom rebates and ongoing communications with local entities ensure equitable opportunities for all potential developments.
The focus remains on expanding housing supply, acknowledging that construction costs have rendered current housing options unattainable for many. The Authority advocates for public-private partnerships, especially outside Rochester, to facilitate housing development. Emphasis was placed on maximizing unit density, with suggestions for innovative housing types such as twin homes and larger rental units, which are currently in short supply. The Authority also discussed the potential of all-electric housing, featuring modern amenities like smart thermostats and heat pump appliances, to promote sustainable living.
The financial implications of varied housing development scenarios were examined, with potential increases in city revenues from higher-density housing. Townhomes, for instance, could generate approximately $28,000 annually in city taxes, alongside substantial water revenue. Comparisons were made between revenue from newer buildings and the proposed townhomes, highlighting the potential for maximizing tax revenue while minimizing infrastructure investment.
Zoning complexities were also a topic of discussion, with a suggestion to allow for park improvements or additional parking spaces to accompany the project, potentially reducing costs. The city engineer’s plan to access water infrastructure from a specific road was noted as a way to achieve cost savings during development. The process of finding a development partner involved issuing a Request for Qualifications (RFQ) to attract interest from developers, designed to align with the city’s existing codes and requirements without requiring extensive initial commitments.
Concerns about housing density, quality, and maintenance were raised, with the Authority emphasizing the importance of ensuring new developments do not become eyesores due to poor upkeep. Suggestions included having a single developer responsible for the entire project to ensure cohesive management and maintenance standards.
Complementing the housing discussion, the Authority also deliberated over expanding pedestrian trails, with plans to connect to Douglas Trail and along Lake Shady. Grants for safe routes to school were explored, looking at a seven-mile route from Oronoco to Pine Island School.
The meeting concluded with networking efforts and introductions, including Laura Quali from CEDA, expressing her commitment to supporting community growth and effective project management. The Authority discussed filling an open seat within the board, considering a potential candidate for further engagement in future projects.
Economic Development Board Officials:
Ryland Eichhorst, Jamie Rothe, Adam Beadling, Jan Throndson, Kathy Gabel, Daniel Spring (Council Representative), Rebecca Charles (EDA Executive Director)
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Meeting Type:
Economic Development Board
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Committee:
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Meeting Date:
09/23/2025
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Recording Published:
09/25/2025
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Duration:
64 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Olmsted County
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Towns:
Oronoco
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