Developer previews 180-unit workforce housing project near County Road 69; city would act as conduit for state bonds
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Summary
A Twin Cities developer presented a conceptual plan for a roughly 180-unit, four-story workforce housing apartment building on a 7-acre portion of a 12-acre parcel; the developer said the project relies on state tax-exempt bond and tax-credit financing and would carry income and rent limits tied to area median income.
Shakopee — Developers representing Ruder Walton (presentation name as given) introduced a conceptual proposal on Oct. 21 for a 180-unit workforce housing apartment building that would occupy about seven acres of a 12-acre parcel near County Road 69.
Jared Ackman, representing the development team, said the four-story building would include one level of underground parking, surface parking and a mix of one-, two- and three-bedroom units. Under the proposed financing, the developer would request the city act as a conduit issuer of tax-exempt bonds so the project can access state tax-credit equity. Ackman said the team expects to apply to the 2026 bond pool and is preliminarily seeking roughly $17 million in conduit bonds as part of a financing package.
The planned project would use state bond allocation and tax credits and would carry affordability restrictions. Ackman said four units (about 3% of 180) would be restricted at 30% of area median income (AMI) as required by Minnesota Housing tax-credit rules, with the remaining restricted at 60% AMI; rents and income limits would be set by HUD/MHFA guidelines and change annually. The presentation included sample maximum rents for Scott County in 2025 and a projected financing stack in which bond proceeds and tax-credit equity would represent a large share of the project sources. The developer said a substantial portion of the developer fee would be deferred to balance feasibility.
Council members asked detailed questions about design elements and neighborhood impacts. Topics included whether units would include balconies (the developer said balconies add about $5,000 per unit and are not standard in their portfolio unless required), the number of Americans with Disabilities Act (ADA)-compliant units (the developer said state and MHFA rules apply and they would comply; staff will provide the specific unit count), and site grade and view impacts for adjacent townhomes on the bluff.
Councilors also asked about the conduit bonds and liability. City staff clarified the city’s role would be conduit only and that the bonds would not create direct city liability; staff noted the city typically charges administrative and application fees when it serves as conduit issuer. Several council members encouraged early neighborhood engagement; the developer said they plan public meetings after financing is secured or when an application is imminent.
No formal action was taken. The developer said a formal bond resolution and application would be brought back if council gives support to proceed to the state application round in December.
