New multi-unit development helps fill housing deficit

Cheryl Hentz

Contributor

September 16, 2024

RIVER FALLS – In its 2023 Comprehensive Plan and its 2023 Housing Affordability Analysis, the City of River Falls noted a high demand for additional housing options that are diverse, affordable and accessible. 

The United States Department of Housing and Urban Development (HUD) defines affordable housing cost as less than 30% of a household’s adjusted gross income.

Generally speaking, housing that is income-restricted to households earning at or below 80% of Area Median Income (AMI) is considered affordable. 

Beyond that, individual properties may set their own income restrictions – ranging anywhere between 30-80% of AMI.

According to the affordability analysis, River Falls has seen a significant amount of development in both multi-family and single-family housing units in the last decade or so.

In fact, it notes that the pace of community development is at or near record highs.

Between 2010-21, an average of 97 new housing units per year were permitted in River Falls – 57% of them for single-family homes, with 43% dedicated to multi-family units.

Yet, the amount of development is still not at the level needed nor is it keeping up with the current housing demand.

In a nutshell, the 2022 Housing Needs Analysis concluded that River Falls will need 336 additional affordable rental units by 2030 to meet the community’s needs.

A local developer is doing what it can to help put a dent in that gap.

The Upland

In an effort to help fill the gap in the housing crisis, FAO River Falls, LLC – a group of local investors/developers – is in the process of constructing a four-story, 106-unit apartment building.

The Upland – situated on just under 4.28 acres of land, at 1875 Paulson Road, on the north end of the city – broke ground late last fall.

Leasing of units begins this fall, with a full opening anticipated for spring 2025.

The property will feature a combination of 17 studio apartments, 60 one-bedroom units, 13 one-bedroom plus-a-den units and 16 two-bedroom units. 

Emily Shively, assistant director of community development for the City of River Falls, said a few of the units are required to be rented to people with low-to-moderate income.

More specifically, she said one studio apartment with a balcony will be available for households that earn 80% or less of the area median income for St. Croix County; and two one-bedroom units without balconies will be available for rent by households earning 50% or less of the area median income for the county. 

These requirements, Shively said, are set forth in the city’s development agreement with FAO River Falls.

The Upland project, she said, is getting a financial boost from the City of River Falls.

Through the newly created Tax Increment District (TID) No. 17, Shively said the city will provide a maximum of $2,280,641.00 of TID financing to the developer. 

“This is the second project we’ve done that is generally a market-rate multi-family building,” she said. “We did use (the TID) as a tool for our housing fund as part of the incentive package to (encourage and include) some affordability in housing because it’s something that’s clearly a demonstrated need in our community – and it’s something that the developers were willing to provide.”

The Upland is located toward the northern end of the city near the intersection of Highways 35 and 65, which turns into the city’s North Main Street.

“It’s a small commercial retail area, located just north of Tattersall Distilling,” Shively said, adding that the area is home to several commercial and entertainment businesses and is highly walkable. “There is a trail that the city recently extended to the far northern end of the city. That trail then takes you all the way into downtown and then connects to other parks and trails. It’s outside of our core historic downtown, but it’s connected right to our south commercial corridor.”

Shively said the trail actually goes right past the front of The Upland.

Angie French – vice president of Mid Continent Management Corp., which has been hired to be the property management company for The Upland – said the area surrounding the apartment building is a large destination event center.

“Our property is literally right next to it,” she said.

‘Elevated living’

French said this is Minnesota-based Mid Continent Management’s first management project in Wisconsin – but noted Mid Continent will have an on-site manager to handle all The Upland resident needs.

Amenities of The Upland, she said, include underground resident parking, a rooftop deck with a club room, a community room on the first floor and a fitness center that walks out to a large patio complete with grills and open fire pits. 

French said pets will be allowed at The Upland, and on the first floor of the building, a dog wash will be available for residents.

French said she anticipates rent costs will be decided upon and announced in the next month or two when it gets a little closer to people moving into the property. 

“We really want to see what’s happening in the market before determining some of those things, like unit rates,” she said. “That’s why we wait until it gets closer to the time when we’re going to open.”

French said if rates were set today and then things in the market suddenly change and there’s no demand, “our rates may be too high, and we’d need to revise them.”

“So, we’ll be waiting a little bit before we set the rates and put them out there,” she said.

Those interested in keeping up to date on The Upland, French said, can join the Insiders’ List at liveattheupland.com.

“That’s a way of being on the inside track as things get completed at the project,” she said.

According to The Upland’s website, the property is “thoughtfully designed for your comfort and style.”

Though the property is described as “elevated living,” French said that doesn’t mean “luxurious.”

“Some properties refer to themselves as luxury or luxurious apartment communities – that’s not who we are at The Upland,” she said. “The feel of this building is going to be upscale, urban and rustic… Plus, it’s also located up a hill, so it’s just a little play on words with the ‘elevated living’ (phrase) and elevated living lifestyle.”

French said the goal is for The Upland to feel like it’s “been part of the fabric of River Falls.”