Fort Snelling Housing Project Cost Climbs to $150 Million

Dominium, the Plymouth-based developer trying to convert a portion of the historic Fort Snelling Upper Post into affordable housing for veterans, sounds optimistic that financing for the project will happen this year. But time isn't on anybody's side.

Minnesota Public Radio reports on the outlook for the ambitious project, which envisions nearly 200 units for veterans and their families. The idea has won support from state officials, but it's always been an expensive undertaking, especially on a per-unit basis, and finding financing has been a challenge.

But Dominium vice president Owen Metz told MPR that the project did well in a lottery for federal housing bonds. "We're more optimistic the development will have the sufficient financing in place," Metz said.

But costs are rising, the project is expected to top $150 million, up from previous predictions of $100 million. That will make for a per-unit cost of $750,000 significantly more than a typical single-family home.

But a Dominium official said that much of that cost is associated with historic preservation work; the affordable housing component is priced at closer to $300,000 per unit, in line with new construction in the Twin Cities

Click to read more in the Minneapolis/St. Paul Business Journal