Case Study: The Ridge in Minnetonka
The Ridge is located at 12708 Wayzata Boulevard in Minnetonka. Near I-394 and Ridgedale Mall, the Duffy Development mixed-income project is the result of a close partnership between the developer and the City of Minnetonka to support the redevelopment of two small vacant properties into a 64-unit mixed-income apartment building providing long-term affordability. A fifth of the units are market-rate and four-fifths are affordable to renters at 50% AMI. The project opened in October 2013 and has been fully occupied since that time.
One of the motivations for the city was the need to increase the supply of affordable housing. The project’s location near large-scale commercial and retail made it a challenge to redevelop, but this same proximity is attractive to those working in service jobs. The frequent nearby express bus service and other local bus routes provide low-cost transportation options convenient to affordable housing.
The project includes multiple funding sources. One of the more critical sources of funding came from pooled TIF fund from the City of Minnetonka to help finance and expedite the project.
Given the growing need for affordable housing and limitations of other finance tools Minnetonka’s use of pooled TIF, and through its mixed income housing policy, has provided them with the ability to provide support for targeted, smaller scale projects such as this one.
The Minnetonka project includes $8.5 million in Low Income Housing Tax Credit equity and nearly $1 million in City TIF, which was noted as being an essential part of making the financing work and a powerful demonstration of the City’s commitment to working with the developer.