The Free Press, Mankato, MN

Local News

March 17, 2010

'Metro' money starting to flow

Nearly $400,000 coming for housing aid

By Dan Linehan Free Press Staff Writer

MANKATO — An estimated $375,000 or more per year is coming to Mankato and North Mankato as a result of their designation in 2008 as a metropolitan statistical area.

In 2010 alone, Mankato plans to use an estimated $300,000 to $400,000 to rehabilitate six homes and five businesses, plan for the relocation of a homeless shelter, remove one blighted building and assist 100 people with social services.

In the past, area cities applied for this money from the state of Minnesota, which doled out funding according to its own criteria. Mankato has long applied for the money and spent much of it on building rehabilitation.

But after the cities of Mankato, North Mankato, Eagle Lake and Skyline officially eclipsed the 50,000 population mark in late 2008 they became eligible to receive money automatically from the federal government.

Mankato paid $28,000 for a consultant, Community Partners, to write a five-year plan to spend the money. The consultant’s fees can be deducted from the grant award.

Broadly speaking, Mankato’s plan focuses on improving housing and businesses in the downtown area. Much of the 227-page plan describes the demand for affordable housing, especially among racial and ethnic minorities. They make up just 6.6 percent of the households but represent more than 27 percent of the public housing waiting list.

The plan will be acted on by the City Council after its public comment period expires on April 19. People can comment at the Intergovernmental Center at 10 Civic Center Plaza or by calling Housing Coordinator Patti Ziegler at 507-387-8623. Her e-mail is pziegler@city.mankato.mn.us.

North Mankato is expecting between $75,000 and $100,000 from the grants, City Administrator Wendell Sande said.

He said it will be spent mostly in two ways: To spur development on empty or under-used lots downtown and to fix up second-floor housing units atop commercial structures downtown. The topic is planned to go to the City Council in April.

Mankato Community Development Director Paul Vogel said cities automatically receive the federal money when they reach the 50,000 population benchmark as a recognition that their low- and moderate-income residents have special needs. Even so, cities have to demonstrate that their poorer residents face a hardship in housing and other economic opportunities.

Mankato-based Partners for Affordable Housing will receive about $7,000 to help plan a new location for the Theresa House, slated to go in the former location of Bandana Brewery.

They are asking for $75,000 over three years to cover design costs, parking lot work and playground equipment.

Next comes a 45-day federal review of the plans. Mankato expects to receive the money between July and September.

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