Bryk seeks flexibility as it starts leasing apartments
Developer is asking city for temporary alteration to development agreement based on workforce housing goals.
ROCHESTER — Some flexibility is being sought in an effort to provide workforce housing for residency program students, nurses and other service-industry workers in the downtown area.
Sixty percent of the 180 apartments in the newly built Bryk on Broadway Apartments are being reserved for residents in those fields, with the assumption that they earn less than approximately 80% of the area median income, which is $62,450 for a single person or $89,200 for a family of four.
“Based on current income verifications, those positions earn over the 2022 (U.S. Housing and Urban Development) income restrictions for 80% AMI,” states a report to the Rochester City Council, which was prepared by Rochester Strategic Initiatives Director Josh Johnsen.
Johnsen points to a delay in updating the federal income restrictions has created what is expected to be a temporary mismatch between standards and actual incomes as new apartment complex at the intersection of North Broadway Avenue and Civic Center Drive starts leasing apartments
The assumption is that income restrictions will be updated this year to reflect an increasing area median income locally.
Acting as the city’s Economic Development Authority, council members will be asked to temporarily lift income limits for half of the 108 apartments designated for the building’s highest income bracket.
The six-story complex will receive financial support through tax-increment financing in exchange for keeping rents at designated levels for 30 years.
The agreement with the city calls for 54 units being dedicated to households earning less than 50% of the area median income, which would be individuals earning less than $39,000 and families of four with income less than $55,750.
Another 18 units are dedicated as affordable to households earning less than 60% of the area median income, which would be individuals earning less than $46.850 and families of four with income less than $67,000.
Johnson reports that the Bryk is finding initial success with filling the lower-income apartments, with rents ranging from $976 to $1,673 for people at 50% to 60% of the area median income, but people have been turned away for the more expensive units due to earning more than the 80% level.
City staff is recommending raising the allowable household earnings to 110% of the area median income on half of the more-expensive apartments through Oct. 1, 2023, to allow the developer to fill the available units.
After that, the income requirement would return to 80% of the area median income for the remainder of the 30-year agreement.
The Rochester council will meet as the Economic Development Authority at the end of its regular 7 p.m. meeting Monday to consider the request.
If approved, the change will also require approval by the state Destination Medical Center Corp. board, since the Bryk project agreement was approved as a public infrastructure project receiving TIF support.
Meetings scheduled to be held during the week of March 20 include:
- City Council study session, 3:30 p.m. Monday In council chambers of the city-county Government Center, 151 Fourth St. SE. The meeting will livestream at www.rochestermn.gov/meetings/council-meetings and be available on Spectrum cable channel 180 or 188 and Metronet channel 80.
- City Council, 7 p.m. Monday in council chambers of the Government Center. The meeting will livestream at www.rochestermn.gov/meetings/council-meetings and be available on Spectrum cable channel 180 or 188 and Metronet channel 80.
- Fire Civil Service Commission, 3:15 p.m. Tuesday in room 104 of City Hall, 201 Fourth St. SE.
- Park Board study session, 4:30 p.m. Tuesday in room 320 of City Hall.
- Planning and Zoning Commission, 6 p.m. Wednesday in council chambers of the Government Center.
- Administrative Committee, 1 p.m. Tuesday in conference room 2 of the Government Center, 151 Fourth St. SE.
- Physical Development Committee, 2:15 p.m. Tuesday in conference room 2 of the Government Center.
- Health, Housing and Human Services Committee, 2:15 p.m. Tuesday in conference room 1 of the Government Center.
- Housing and Redevelopment Authority, 4 p.m. Tuesday in board chambers of the Government Center.
- Board of County Commissioners, 6 p.m. Tuesday in the board chambers of the Government Center.
- Rochester-Olmsted Council of Governments, noon Wednesday in conference room 186 at 2122 Campus Drive SE in Rochester.
Rochester Public Schools
- School Board, 5:30 p.m. Tuesday in the boardroom of the Edison Building, 615 Seventh St. SW.
Destination Medical Center
- DMC Corp. executive committee, 9:30 a.m. Thursday in Mayo Civic Center, 30 Civic Center Drive SE.