Construction is underway on Harvest Pond Apartments, a 58-unit market-rate development in Lonsdale that developers and city officials say fills a gap in the community’s housing stock.
Developer Brian Bruggeman and general contractor Scott Quiring of Amcon Construction joined city officials and project partners Tuesday for a groundbreaking ceremony at the site near the grocery store and library.
“We’re here today to celebrate the groundbreaking of Harvest Pond Apartments. It’s been a long ride,” Bruggeman said. “I actually looked back at my emails and we started this conversation about 14 months ago. So it’s been a 14-month process to get here.”
The project will feature a pet park, community room with kitchenette and games, and a fitness center. Construction will continue through the winter, with completion expected in about 12 months.
“They’ll work yearround,” Bruggeman said.
Quiring said the idea for the project grew out of a simple observation about the community.
“I just knew Lonsdale needed something, and this was kind of just started with that, knowing it had a need, and turned into this three years later,” he said.
Quiring, a Webster resident who has lived in the area for more than three decades, said the metro area’s apartment market has become increasingly expensive, and smaller communities like Lonsdale offer an opportunity for a lower entry point.
“People up in the metro area, that’s kind of an expectation,” he said of amenities like underground parking. “And you get out here, and people are okay with a detached garage and tuck-under garages, and not that underground parking, which reduces cost. Communities like this just need a lower entry point into cost of living.”
The development is smaller than many recent apartment projects in the region, which Quiring said often range from 150 to 220 units.
“This is a quarter of some of those, so it is smaller, but it’s a perfect size,” he said. “The market study when it first came out, I think it was in that 45 or 48 units, and banks look at that, and developers are like, ‘Well, I don’t want to build more than what I can rent.’ Brian had the wherewithal because he built more units, the cost per unit comes down.”
The site selection came down to walkability.
“You can walk across to grab a roasted chicken, go get your library books,” Quiring said. “It’s close to (Highway) 19, so it’s easy access to getting to Northfield, getting to 35 and north. I think it’s going to be a very, very successful project.”
Bruggeman said the development could help spur additional commercial growth nearby.
“There’s definitely some retail lots across the street here that is one of those chicken and the egg things,” he said. “A lot of retailers require a certain amount of density, and in order for them to come, you have to have that density. So there’s a very good chance that it could spur some additional commercial development in the area.”
Interest in the units has already begun.
“We actually have had a couple calls of people wanting to try to reserve units. We’re not quite ready to do that yet, but it’s good to see that there’s interest already,” Bruggeman said. “It’s always a good sign.”
Once the project nears completion, a waitlist will be established through Granite City, the management company, with leases signed as the building opens.
The project faced a financial hurdle earlier this year when the city council denied a tax abatement request. Mayor Tom Berg said the abatement would have totaled $396,876 over 10 years, or 75%, while generating $804,200 in city fees. The request was made without the proposed nine single-family homes included.
“When the abatement request was denied, I proposed a different incentive to make the project financially viable by reducing the water and sewer connection fees to offset the abatement,” Berg said. “At that point of time, Council agreed to reduce from the original 58 connections, down to a single connection. Essentially it came down to minimal amount of property taxes for 10 years but significant gains upfront, or significantly less gains upfront and capture it slowly year by year.”
Berg said staff worked with the developer to optimize the fee schedule, including the park dedication fee.
“The intentions of the abatement request for a few of us on Council was to pay off the business park’s debt service to alleviate $224,000 per year to relieve ourselves from the recent $5.5 million lease option bond decided by the former council which increased our debt service payments by $300,000 per year, which increased valuations by the county would’ve made up the difference. Losing Advanced Exhaust Solutions for the second time in Lonsdale truly put the City in a complex situation, but there are always solutions.”
Berg said a recent transaction involving 12.1 acres of city-owned land in the business park could still help address that debt.
“With the recent transaction in our business park for 12.1 acres of the City owned land, we might still have a chance when the City closes on the purchase agreement to pay off the business park’s debt early,” he said.
AMCON Construction, which serves as general contractor and also offers in-house architectural services, previously built a similar project with Bruggeman’s team in Annandale.
“Brian and his team have just an incredible management team that operates the facility, so that’s really exciting to be part of that too,” Quiring said.
Local contractor JP Land Services is handling mass grading at the site.
“Never had worked with Joe in the past and heard good things about him. It sold me a good story, and they showed up and they’re getting it done,” Quiring said.
Quiring said the next steps include wrapping up mass grading in two to three weeks, followed by footings, underground utilities, and slab pours. Vertical framing is expected to begin in late October or early November.
“It’ll go quick,” he said. “We got a good team. Again, goes back to working with good subs, and they show up when you want them to show up, and they do the job that they’re supposed to do.”
Bruggeman thanked the city for its work on the project.
“Just a long process with the city and council and staff and everyone worked really hard to get here, so I’m just really thankful for everyone’s commitment and sticking with the project to see it through,” he said.