New owners, renovations coming to senior high-rise

Larson Commons is getting a new lease on life.

All the pieces for the renovation of the seven-story senior high-rise building by new owners clicked into place during the Cloquet City Council meeting Tuesday. That’s when councilors approved a housing program for Larson Commons along with the eventual issuance of $9.37 million in tax-exempt bonds, which will be used to pay for renovations and programming.

The bonds will be paid back by the new owners, Steele Properties, LLC, which has experience across the country with affordable housing development. The building will be managed by Monroe Group, a sister company to Steele, which touts its proactive management and supportive services for residents.

With the bonds plus a 4-percent tax credit from the state, Steele has agreed that the property will continue to house low-income senior and disabled residents for at least 30 years.

Linda Erickson was the only citizen to address the council during a public hearing Tuesday. A three-year resident of the building, she spoke in support of the project and the city’s efforts to facilitate its success.

“I actually went to school there when I was a kid, at Jefferson School,” Erickson told the council. “It’s well-built, but it needs a lot of renovations. … I’m happy to know there will be funding to keep it going. There are a lot of elderly people that need the low-income housing.”

Located at 810 Cloquet Ave. and built in 1980, Larson Commons provides 85 low- and moderate-senior income units for elderly and disabled that are also rent-restricted. Eighty of the apartments are single-bedroom, five offer two bedrooms. To be eligible, a person’s income must be between 30 and 50 percent of area median income. There’s currently a waiting list for apartments.

Development manager Andrew Bennett answered questions on behalf of Steele and Monroe Group Tuesday evening.

They expect to close on the building June 26. Renovations are budgeted at $44,000 per unit, with upgrades to kitchen and bathrooms, lighting, smoke and carbon monoxide detectors, windows and electrical fixtures. There will be significant exterior upgrades, including new LED lighting, repairs to parking lots and sidewalks, new siding and a full roof replacement. Additionally, the boiler system and HVAC will be replaced and the troublesome elevator modernized. All common areas and amenities will be upgraded and modernized. They also plan to make the building more energy-efficient.

“We’re ready to hit the ground running after the closing,” Bennett said, estimating that renovations will take 12 months. The individual apartment renovations won’t require residents to relocate, he said.

“Contractors will need access during business hours, so we offer entertainment and food in the commons area while they’re working on the apartment,” he explained.

“Can city councilors come for entertainment and food?” asked a smiling Ward 5 councilor Lyz Jaakola.

The mortgage on the building will be almost $11.5 million, with renovation costs estimated at $3.74 million.