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Hibbing council approves preliminary resolution to back conduit financing for Lee Center senior housing rehab
Summary
The council approved a preliminary resolution enabling Stonebeam Development to pursue conduit debt and 4% low‑income housing tax credits to buy and renovate the 95‑unit Lee Center senior housing property; closing was projected for Oct. 1 with a roughly 12‑month construction window.
The Hibbing City Council on March 12 approved a preliminary resolution that allows Stonebeam Development to pursue conduit debt to acquire and rehabilitate the Lee Center, a 95‑unit senior affordable housing property at 322 8th Avenue East.
Finance Director and Treasurer Sheena Moller told the council the conduit debt request is made under state law and would allow bond counsel to apply for a volume cap allocation and enable the project to use noncompetitive 4% low‑income housing tax credits. "This debt does not impact the city's credit rating, count toward any debt maximums, and it will not be an obligation of the city for payback if they were to default," Moller said.
Stonebeam representatives said the company plans a full renovation of the building envelope (roof, watertight work), interior upgrades (new flooring, cabinetry, countertops and plumbing fixtures), elevator updates and mechanical system overhauls. Stonebeam said it will retain on‑site support services and continue existing leases that provide resident services, including Meals on Wheels. "We feel it's a cornerstone to senior housing within the city of Hibbing, and we're thrilled to invest within the community," a Stonebeam representative said.
Stonebeam told the council the property is under contract and that completing the financing—securing volume cap and tax credits—will take time; the company gave a planned closing date of Oct. 1 and said construction would begin after closing and is expected to complete within about 12 months. Council members asked whether Stonebeam is for‑profit; the company described itself as a "mission‑driven for‑profit" developer and said a nonprofit investor is also involved.
Sheena Moller asked the council to consider Preliminary Resolution 205‑33 to begin the bond/volume cap process; Chris Verta of Freiburger, who attended to explain financing stages, described the measure as a preliminary step with final approvals expected later in the summer. Councilor Bayless moved the resolution, Councilor Whitney supported it, and the motion carried on a voice vote.
The action allows bond counsel to start the application process and sets the public hearing and subsequent steps for later consideration; final project approval and any formal bond issuance will require later council action.
