File Photo Construction continues March 16 toward a fall opening for Blu on Broadway, a mixed-use building on South Broadway in Minot.

A prominent building rising along Broadway is among construction projects in the works to increase affordable housing options as part of the City of Minot’s National Disaster Resilience program.

Blu on Broadway, at 1629 S. Broadway, is a roughly $10 million mixed-use project that will include 8,800 square feet of commercial space on the first floor and 42 affordable housing units on the upper four floors. Its financing includes $4.75 million as a forgivable loan through NDR in exchange for at least 20 years of affordable rents and $500,000 in interest buydown through North Dakota Flex PACE.

The building is part of a collection of NDR projects in progress or soon to start that will rehabilitate or create new affordable housing for low- to moderate income families. In addition to Blu on Broadway, projects include townhouses at Park South, senior apartments called Souris Heights and renovations at Milton Young Towers.

A West Fargo developer with Minot ties, EPIC Companies broke ground on Blu on Broadway last July and is aiming for an October opening. Blu on Broadway is one of 25 mixed-use projects the company has been involved in.

McKenzy Olson, vice president of marketing and public relations for EPIC, said the construction season has had its challenges with COVID-19 quarantine impacts and safety requirements as well as a snap of extreme cold in February. However, the project remains on pace, she said.

EPIC has been discussing leases with businesses interested in locating on the main floor. Olson said there is a strong desire by EPIC to include a food and beverage business as well as retail, and possibly even an entertainment-related tenant. She said it has been nice to see local entrepreneurs looking at the space as an opportunity for their business ideas.

The number of tenants will depend on the space needs of each, but the main level could accommodate four average-sized businesses.

Pre-leasing of the housing units on upper floors is expected to start in April or May. EPIC will be handling the pre-leasing for the apartments, expected to rent for $520 to $700 a month, depending on the unit. Tenants must meet federal guidelines for low- to moderate-income, but Olson said interested individuals should inquire and not assume they don’t qualify because people from a variety of walks of life have been known to fit into the eligibility requirements.

The pet-friendly building will have eight studios, 25 one-bedroom and nine two-bedroom units. A number of the units, including all the two-bedroom, will be the two-story concept, with rooms on two floors.

The building will include handicapped accessible units and units that can be made accessible based on need.

Blu on Broadway location will be attractive for tenants because it is near a grocery store and other businesses within walking distance as well as businesses on the main floor. There will be underground parking and plans exist for a park area with activities for children, which Olson said might take work at the site into 2022.

“We always want it to be that live, work, play,” Olson said. “People enjoy having that community aspect, or that feeling of being a part of something, and that’s really what’s happened with the mixed-use buildings.”

By the time Blu on Broadway opens, EPIC also plans to have a video board in place for announcements and other on-premises use.

In connection with the project, EPIC Companies upgraded a block of First Street Southwest behind its property. The Minot City Council approved a Tax Increment Financing District to give EPIC a five-year tax abatement on site improvements. With savings from that abatement, EPIC improved the roadway at no cost to adjacent property owners.

Olson said the project will include a second phase of construction on the property.

“We’re not sure yet what it will be. We don’t know if it’ll be a mixed-use building or some other type of building. It’s still up in the air. But we’d like to get something there because we have the space,” she said.

Many of the company’s principals are from Minot or the area so they want to see good things happen in the city, she said.

“So we’re very open to options and seeing what could happen,” she said.

Construction also will resume this spring on Essential Living’s Park South townhomes project. Concrete pours for the project occurred last fall.

The project includes 22 homes, including 10 on the west side and 12 on the south side of the existing Park South apartment building. Essential Living previously received NDR funds to assist in renovating the Park South apartments at 234 14th Ave. SE.

The NDR program is providing $4.8 million in this second phase.

Bruce Walker with Essential Living said pre-leasing of the two-bedroom, one-bath townhomes to low- to moderate-income residents could begin by late summer. Rents will be income based, likely in the range of $600 to $900 a month. Walker noted the townhomes aren’t being marketed specifically to seniors but their single-story design would make them attractive to older tenants.

The units are expected to become available by the end of the year. Gehrtz Construction is construction manager on the project.

Souris Heights, being developed by Beyond Shelter, is on track to break ground in May near Ramstad Middle School and Beyond Shelter’s Sunset Ridge apartments.

The 54 units that will be available to tenants aged 55 and older include nine that will be two-bedroom. The remainder will have one bedroom, and 12 will be accessible to tenants with disabilities.

The NDR program is providing up to $5.5 million. Other funding sources included in the project are federal Low Income Housing Tax Credits, Housing Incentive Fund dollars from the North Dakota Housing Finance Agency and financing from the Bank of North Dakota through a local bank.

The project has a 12-month construction schedule, so leasing likely won’t begin until late spring next year.

“There’s some great community space,” developer Joe Rizzo with Beyond Shelter said of the plans for Souris Heights. “We do have a nice community room with a kitchen so that we can bring in some meals at different times of the week, so the tenants have healthy meals available for them.”

The apartment building will be served by Meals on Wheels through the Minot Commission on Aging.

“There will be a nice patio out the back as well as a library, craft room and just those areas that kind of take on a community within a community,” Rizzo said.

The project includes covered, attached parking spaces.

The project will be similar to the 40-unit Cook’s Court senior housing in south Minot, completed by Beyond Shelter in 2016.

Rizzo said Cook’s Court has had very high occupancy.

“To the point where we actually have a waiting list on that project. In the state of North Dakota, that age group is getting larger every year. Those that are on fixed incomes, particularly Social Security or other fixed income, need to have a rent that matches their income so they have a safe and affordable place to stay,” Rizzo said.

The Minot Housing Authority will be managing the property, as it does Cook’s Court.

Construction currently is occurring at Minot Housing Authority’s Milton Young Tower, making numerous improvements in the nearly 50-year-old building. Through NDR, the City of Minot is investing $5 million. The housing authority is investing an additional $800,000.

Work will include updates to mechanical systems, fire safety, power backup systems, waste stack replacement, high efficiency plumbing and lighting installation, replacement of storefront systems/curtain walls on the first floor and at stairways, replacement of door hardware on first-floor doors, installation of security cameras, modernization of the elevator system and new energy-efficient and noise-reducing windows on the first floor.

In addition, bathroom in all apartments will be remodeled, single-bedroom units will be converted to two-bedroom units, flooring will be replaced, designated units will be remodeled and painting will be done.

Renovations will result in 18 additional two-bedroom apartments, increasing the total number to 24.

The project will be conducted in phases over 18 months.

Due to the extensive work required to replace the waste stacks throughout the building, residents will be temporarily relocated during the renovation process. Most relocations will be within the building.

The construction is expected to occur in 10 to 12 phases, with each phase scheduled to take 10 weeks, according to information from the City of Minot.

The 14-story building has 220 housing units and includes housing authority office space and community rooms. The building’s commercial kitchen was updated recently with a grant from Bremer Bank.