Grant could make senior housing happen

By MaryHelen Swanson
Affordable senior housing is another step closer to reality in Rush City with the adoption of a resolution Monday night.
To meet the needs for 56 units of senior housing, determined by a recent market study, the city is planning to build a complex south of the Jay Addition.
The City Council gave approval for application to the state for a small cities grant in the amount of $600,000 to use on this project to help write down development costs.
In turn, lower costs to the city will mean lower rents to the residents.
The goal is to provide one and two bedroom units with rent at $500 and $600 respectively. The rent would include utilities such as gas, heat, water and sewer and garbage collection.
In the market study that was conducted in the Rush City area, it was determined that about 43 of the units are needed for those with an income of $15,000 or less.
Eligibility to rent in the building will be based on income, not assets in the bank, said Chisago County Housing REdevelopment Authority-Economic Development Authority (HRA-EDA) director Chris Eng at the Oct. 13 council meeting. They would be looking at incomes levels of $35,000 for one person and $39,000 for two. Preference would be given to the people who need the low income housing the most, he added.
Eng also foresees adding to the complex assisted living and potentially including a new senior center in the housing project.
Rush City Administrator Daniel Hoffman said the complex might also someday include moderate income single family homes.
Ideally, Eng said, the senior center would include a kitchen where meals could be prepared for the senior dining program.
Currently, the senor dining meals are prepared in North Branch. The dining program is run by Catholic Charities out of St. Cloud.
To keep costs down further, the building would be built using the plans for the senior housing project in Center City, currently under construction. The Center City project is costing $2.5 million. It is hoped to keep the cost of the Rush City project to $2 million.
Further savings will be found in using city-owned property.
The grant to the state must be submitted by Nov. 2. The city will know by February or March 2004 if it has been approved. Eng said there are about 90-100 applications for the small cities grants a year and about one-third are approved.
If the grant is not approved this time, the city will reapply.
As required, the council appointed the Chisago County HRA-EDA as the local development organization.
On a motion by Councilman David Bengtson and second by Councilman Jerry Janssen, the council agreed to sell the land to the HRA-EDA for $1, contingent upon receiving the small cities grant.
Eng told the council that if there were any excess revenues after the project is paid off, the HRA-EDA would split this income with the city.
If the city receives the grant, construction could begin in fall of 2004 and be ready for occupancy in spring of 2005.
In other business, the council:
ï Approved payment of bills in the amount of $465,440.89, a significant portion being payments for work on the northeast utilities project.
ï Learned that the service road near the Holiday Stationstore is almost finished, and that the entrance to Holiday has been moved to the service road. The city waits with eager anticipation for the roadwork on Hwy. 361 to be completed so the orange cones can be removed.
ï Approved minutes for regular council meetings of May 12, and 27 meetings, special meeting of June 2, regular meetings of June 9, 23, July 14 and 28.

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