Winsted-Lester Prairie Journal, August 24, 1998

Winsted council turns down HRA housing plan

By MAGGIE SCHUETTE-VOSS

Winsted City Council again did not give its permission for housing owned by the McLeod County Housing and Redevelopment Authority (HRA) to be built in Winsted.

The council was approached a few years ago to have such housing built in Winsted, and the HRA wanted the city to provide land.

Since then, and under a new method, HRA housing has been built in Glencoe, Lester Prairie, Brownton, and Stewart.

The general contractor that is building the housing, F&L Management, had to get council approval to build in the city.

Under the HRA system, in lieu of property taxes, it would pay five percent of gross rent receipts. That five percent would be divided by the city, county, and school district. F&L Management wanted to build eight units.

The council felt the city did not need HRA housing because Winsted on the Lake owner Bill Gilk is beginning to build one-level, double-garage townhomes. The council thought that this would fill the need that the HRA is trying to fill. It was discussed that rent on the HRA housing would be about $500, as would a payment on a townhome.

"Gilk has invested about $1.3 million into his project," said Mayor Don Guggemos. "I don't know how we can justify bringing in someone else who isn't competing on the open market. If (F&L Management) wants to come in and build a project like Gilk is, he's more than welcome, but I don't believe we should give him an advantage," Guggemos said.


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