Housing is a major issue in Humboldt.
During a regular Humboldt City Council meeting on March 25, Darrell Classen presented his proposal for building an affordable housing apartment building on the 500 block of 9th St. south of Schenn's Farm Supply.
"What we are looking at doing is an 18-suite apartment right now," said Classen.
The building, which would be three floors with six suites on each floor, would be apartments to rent out, not condos, he added.
Classen explained he is looking at a couple of funding options to get the apartment building started.
"We have some government money that is out there," said Classen. "Without the government money, they are not going to fly. There is no money in apartments unless you get the subsidy to build them."
One grant is a rental construction incentive program. The provincial government will match $5,000 per unit with the City.
"Once we get that $5,000 per unit, the province would match $5,000," said Classen. "The City's share can be in the form of a tax exemption and can be drawn out over five years."
The second provincial grant is for $40,000 per unit and Classen's application has to be in by April 25 in order to be considered, which is why he was asking for council's help.
Through the grant, which is for building affordable housing units, he will be allowed to rent out the suites for about $300 less than what the rental rate in the city is at the time.
"It will help take care of the entry-level manufacturing workers and retail workers," said Classen. "I'm looking at the singles and the young couples. It will be the only affordable housing we have in town here. We don't have affordable housing. We can talk about it, but we don't have it."
He said without having the grants and programs, he will not be able to build the apartment building.
Since the lot is in a C1 Commercial zone, he needs zoning to be changed and get a building permit and his financials in order by mid-April.
"That is going to be a problem because the zoning is going to take awhile," said Classen. "If I could get the zoning, it would be easier but I need to have a permit in place. That is going to be one of the problems we have."
Classen explained they could build elsewhere, like behind Discovery Ford, but currently there is not a lot of commercial development out there, which would make the apartments seem like they are out in a field so he hopes the city will consider rezoning the property for him to build close to downtown.
"What Darrell is working on fits in with the housing initiatives the City has planned," said Mayor Malcolm Eaton. "It is a good point that it is not cheap housing, this is affordable housing. There is a certain market you are trying to hit with this project."
Since C1 zoning is only for commercial, Council was considering options to allow Classen to build there.
"It is a piece of land that has been vacant for a long time," said Eaton. "I think what you are proposing, you are dead on. This is something we need. The location complicates it because it is the wrong zone. We have to come to some sort of decision or understanding of what does that mean."
James Moller, City Manager, explained they could spot-zone, which they were advised not to by the city planner, or could either change C1 zoning to allow for residential above commercial or go through a discretionary use application.
Moller believes if Classen put a small business, like a couple office spaces or a laundromat, it would keep commercial developments in the area and make it easier to keep commercial zoning in the downtown core.
