Council backs Commonwealth’s 43‑unit affordable housing application, approves $3,000 fee reduction

The Lindstrom City Council voted on June 18 to support Commonwealth Development Corporation’s application for Minnesota Housing Trust Fund tax credits for a proposed 43‑unit housing project on the former OJ2 site and to approve a one‑time $3,000 reduction in city fees to make the application more competitive. Councilmember (speaker 2) moved to accept the resolutions and the council separated the two measures for individual consideration before voting.

Ted, the Commonwealth representative, told the council the design was intentionally similar to a previously approved project and that the proposal had been scaled to 43 units to provide over 1:1 parking and to respond to community feedback: “we brought it down to 43 units just, you know, kind of leaving the scale,” he said. He added the site plan will include a playground and a community garden that the developer agreed to add after neighborhood meetings.

Staff and council clarified that the city’s action was limited to supporting the application to the state — it does not grant entitlements or final approvals. A staff representative reminded council that “if this project does get funding, it still has to go through full entitlements,” including engineering and planning review. Council approved the resolutions; the mayor announced the first passed “4 to 1.”

Why it matters: the city’s formal support and the fee reduction are intended to strengthen Commonwealth’s application for scarce state tax‑credit funding. If funded, the project will then return to Lindstrom for full entitlement and design review. The developer said state/federal program rules (AMI bands) determine rents and program targeting, not the developer.

What’s next: Commonwealth said awards are expected in December and, if funded, the developer will proceed with detailed design and further local meetings before seeking entitlements.