Duluth is set to welcome an innovative development, Brae View, which combines much-needed affordable senior housing with a unique senior day care program, alongside a child care facility. This pioneering project took a significant step forward on Tuesday night when the Duluth City Council approved a $2.1 million tax-increment financing package.
The Brae View development is planned for Duluth’s Central Hillside neighborhood and promises to bring 72 affordable housing units to the area. What makes Brae View particularly noteworthy is its ground-floor operation, envisioned as a dual-purpose care center. This center is designed to cater to the needs of both young children and senior citizens, potentially housing a senior day care program alongside facilities for 100-110 children. This novel approach aims to foster intergenerational connections and provide comprehensive community support.
Tonya Loken, representing Essentia Health as their community relations director, highlighted the collaborative nature of the Brae View project. She explained it as a partnership between Essentia Health, One Roof Community Housing, and the YMCA, with the YMCA expected to manage the day care center operations, including the potential senior day care program.
“We are incredibly enthusiastic about this opportunity to serve both families and seniors within our neighborhood,” Loken stated. She emphasized the project’s relevance to local employers, including Essentia Health, whose employees often face challenges in finding dependable, high-quality, and affordable child care and elder care solutions near their workplaces.
Jeff Corey, the executive director of One Roof Community Housing, echoed this sentiment, pointing out the critical need for both affordable housing and increased child care capacity within the Duluth community. The Brae View project directly addresses these pressing needs.
The Brae View complex will be situated on the lower side of East Fifth Street, nestled between Fourth and Fifth avenues east. Corey anticipates breaking ground this spring, assuming the project timeline remains on schedule. Construction of the five-story Brae View building is estimated to take approximately 13 to 14 months from the start of construction.
Brae View is designed to offer deeply affordable housing options in Duluth’s Hillside area. The apartments will be reserved for individuals and families whose incomes fall below the regional median income, ensuring accessibility for those who need it most. The unit breakdown is planned as follows:
- 15 units designated for individuals earning no more than 30% of the area median income.
- 32 units allocated for those earning up to 50% of the area median income.
- 25 units for residents earning up to 60% of the area median income.
The financial structure of the project relies in part on tax-increment financing (TIF). TIF is a public financing tool that uses the anticipated increase in property taxes generated by a development to offset specific development costs over a defined period. For Brae View, this means that for up to 26 years, the increased property taxes resulting from the development will be reinvested into the project, supporting its financial viability. This mechanism is crucial for projects like Brae View, which must demonstrate financial infeasibility without such support to qualify for TIF.
Currently valued at just over $1 million as unimproved property, the completed Brae View development is projected to be worth over $9 million. By the end of the TIF support period, its estimated future market value is expected to reach $11.5 million, signifying a substantial increase in value and community benefit.
Corey further highlighted the unique advantages of combining senior housing with a child care and potentially a senior day care program within Brae View. “There is a wonderful potential for intergenerational interaction here,” he noted. “I believe most of us find joy in the sound of children laughing and playing nearby.” This intergenerational aspect not only enriches the environment for residents of Brae View but also promises to create a vibrant and connected community hub within Duluth’s Central Hillside neighborhood, offering valuable senior day care program opportunities.
Loken elaborated on the YMCA’s vision for the day care facility, emphasizing the potential to integrate senior activities into the programming. This integration is seen as a way to enhance the learning environment for children and provide vital “social interconnectedness” for seniors, which can significantly improve their overall well-being and quality of life through participation in a senior day care program setting.
Essentia Health’s commitment to the revitalization of its surrounding neighborhood is evident in the Brae View project, as Loken pointed out. She referenced other nearby initiatives, including the Brewery Creek development, as examples of Essentia’s dedication to improving housing and living conditions in the area. Essentia is actively contributing to the addition of 145 housing units in the Central Hillside neighborhood, alongside the new child care and senior day care program resources offered by Brae View.
“We are fully committed to investing in this neighborhood and fostering its growth and well-being,” Loken concluded, underscoring the significance of the Brae View project as a cornerstone of this commitment.
