In this edition of You Ask, We Answer Sean asks, "What's being built at the corner of Jackson and Fourth Streets by City Brewery?"
LA CROSSE, Wis. (WXOW) -- In this edition of You Ask, We Answer Sean asks, "What's being built at the corner of Jackson and Fourth Streets by City Brewery?"
On February 28, 2024, the City of La Crosse's Economic and Community Development Commission approved the Affordable Housing Revolving Loan Program Development Agreement with The Collective on Fourth.
City of La Crosse Community Development Manager Mara Keyes said this was one of the final steps in a nearly-five year process to develop this parcel of land with a focus on more affordable and mixed rental units.
"This project really dates back to almost 2019 when properties were being purchased and we were starting to look at proposals. There's a lot of different milestones that have to be hit, and February's meeting was one of the final ones."
With that approval, construction of the building began in early April.
The 4-story Collective on Fourth will house 62 residences, ranging from studio apartments to 1, 2, and 3 bedroom units. It will also have a work out room, in-house property management, and a community room.
The City entered a new partnership with Cinnaire Solutions, who is the property owner of the Collective on Fourth. They are a non-profit entity focused on developing affordable housing. Lutheran Social Services will manage the property.
Cinnaire Vice President of Development Nicole Solheim said being a non-profit is fairly rare as far as property development.
"It gives us access to some resources that we can utilize to support the long term affordability. And hopefully it gives comfort to communities as well that we're in it for the long term, we're in it for more than just an upfront developer fee, we're really here to be part of the community for a long time."
Solheim said 52 of the 62 units will be designated as affordable for the long term, meaning rent will be set between 30 and 60 percent of area median income. A block of units will also be targeted to individuals and families at risk for or exiting homelessness.
Funding for the roughly $22 million development comes from a variety of sources. Solheim said the bulk of the funds come from the Wisconsin Housing Economic Development Agency (WHEDA). WHEDA awards low income tax credits to the state of Wisconsin from the Federal government. WHEDA also contributed through their National Housing Trust Fund and the First Mortgage and Down Payment Assistance Programs.Â
Another major contribution came from the City of La Crosse, roughly $1.8 million total. $1.1 million coming from the City's Housing Revolving Loan Fund and $700,000 from the city's federal American Rescue Plan Act (ARPA) COVID funds.
It's this contribution that Solheim said was essential for getting this project off the ground.
"I can't emphasize enough how critical that funding was. Having that support from the community not only makes the development financially feasible to move forward but it makes it very competitive with WHEDA to receive those tax credits. Because the tax credits are such a competitive resource they want to spread it around the state and do as many developments as possible. It really helps when we can leverage funding from the local community and show that they are on board."
Keyes also serves on the La Crosse County Pathways Home board which is coordinating the future approach to end homelessness in La Crosse. Keyes says adding more availability of affordable housing is one of the key pillars in their goals.
The City of La Crosse is also in the middle of a housing study which they hope will give them more information about where the gaps for housing are in the community.
Both Keyes and Solheim say they want the development to be more than just providing a place to stay, but making sure that people have the support around them to be successful.
"There will be a community room and a fitness center, as well," said Keyes. "That community room is really intended to be a space for anything from financial wellness classes, to different trainings, even GED opportunities were discussed, as well. As much as there are other developments in the city, this is one focused on bringing unique services in, as well."
The apartments are set to be complete in May 2025. In early 2025 Solheim says they will begin taking applications for rentals once they develop a website Specific to the Collective on Fourth.
The City of La Crosse and Cinnaire will also hold a groundbreaking ceremony on May 8, 2024.
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