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  Lakeland Public Television 
  presents Currents. 
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  ♪ Hello and 
  welcome to Lakeland Currents.  I'm Bethany Wesley. Tonight
  we focus our spotlight on  housing. More specifically 
  we will be discussing a growing  need in out state 
  Minnesota for the develop of  more workforce housing. 
  While you may occasionally hear  about the need for some job
  growth though out greater  Minnesota in some cities the  jobs are there. 
  Or could be there. But the  companies that are wanting 
  to expand or establish  themselves there are reluctant  to do so 
  because there is not enough  middle income housing for would  be 
  employees. So what exactly is  work force housing? 
  And why is there a shortage of  it? To answer these questions
  and to discuss potential  solutions, tonight we welcome  to the program
  Dan Dorman, the executive  director of the 
  Greater Minnesota Partnership.  And Tim Flathers, the 
  executive director of the  Headwaters Regional Development  Commission. 
  Welcome! Welcome back. Tim:  Thanks, Bethany. Dan: Thank  you. Thank you 
  for having us. Bethany: As we  get started why don't you tell  us a little bit about 
  what the Greater Minnesota  Partnership is. Dan: Sure,  Greater Minnesota Partnership 
  is an advocacy organization  that works on economic 
  development issues in greater  Minnesota, for greater  Minnesota. 
  So our goal and our mission is  to try to create 
  ah, better jobs, improve job  quality, improve the quality of  life
  helping to build tax base,  vital cities, 
  vibrant cities, but exclusively  in greater Minnesota. 
  One thing that you know, we  noticed that ah..
  the metropolitan area just  because that's where you're at,
  herded up together, easier to  organize. They have a stronger  voice at the
  capitol. So, our job is to try  to make sure greater Minnesota 
  doesn't get lost in the hubbub  in the mix. 
  And so, we advocate again for  greater Minnesota economic 
  development programs. Bethany:  Tim, our viewers 
  hopefully will recognize you  from an earlier appearance. But  tell us a little bit about what
  the HRDC's role is with housing  specifically.
  Tim: Well, housing is an issue  that is pretty broad
  within our organization and  we're really interested 
  in ah, meeting housing needs of  communities throughout the 
  region. It includes development  of housing, we've focused on 
  affordable housing principally.  We have a non-profit 
  subsidiary corporation that  does housing development 
  work. Ah, we also provide staff  support to a 
  couple um, or three right now  housing and 
  redevelopment authorities. And  um, 
  we do things such as housing  rehabilitation 
  work, ah down payment  assistance. Um, 
  and ah, um...trying to make  sure that people have 
  access to affordable mortgage  financing products. Um, 
  particularly in the home  ownership side. So we do a 
  variety of different things in  the area of housing. Bethany:  And will you remind our 
  viewers, if you'd be so kind,  in terms of what your footprint  is in terms 
  of what the HRDC manages? Tim:  Yeah, the HRDC ah, 
  regional development commission  serves 5 counties. We're  headquartered here 
  in Bemidji. Ah, we go down to  Park Rapids and serve 
  Hubbard county. And then west  we go to Clearwater county 
  and Mahnomen county. And then  north Lake of the Woods county.
  So, we serve Baudette for  example. Bethany: Ok. 
  Alright so as we turn our  attention to work force housing,
  Dan, what...can you tell us how  do you define work force  housing?
  How does it differ from let's  say, low income housing? 
  Dan: Yeah, I think Bethany the  easiest way to think about it  is...
  middle earners. If you think  about like specific jobs 
  it isn't about low income 
  like food manufacturing workers  or something because there's  already programs for 
  that. But it could be anyone  from a beginning nurse  beginning 
  teacher, or of course the  manufacturing jobs.
  Kind of that pay range of maybe  15 to
  25 dollars an hour right there.  It's, you make too much to  qualify for 
  low income stuff but for some  reason that I really can't 
  explain the market isn't  responding like it should and  creating 
  in this case, what we're  advocating is more rental  housing 
  that will lead to single family  home ownership. 
  But it's about making sure that  that 
  ah, there's a housing supply  available for those people 
  when those jobs are created.  And it's an issue
  it's a growing issue. As  we...you mentioned earlier in  almost all
  parts of greater Minnesota.  From the southwest corner to  northeast
  northwest, ah central  Minnesota. It 
  is a ah, like I said it's a  growing deal and it's starting  to hurt
  our ah, economic development  and job creation
  in these cities. And so we  think it's important that the 
  legislature ah.....takes an  action. 
  Ah, we have a tax credit  proposal we think 
  would work. Sort of copied it  from our neighbors North Dakota
  and Iowa. We cobbled something  together, you know. Better to 
  you know not reinvent something  there's...you know steal an  idea that seems to 
  work. And ah, we think it would  really help these communities 
  continue to grow and prosper.  Bethany: When did the issue  really kind of 
  start to emerge? When did you  start to hear things from 
  communities that said, you know  we really could use some more
  of this market rate or middle  income housing? 
  Tim: Um, from my perspective we  first started hearing about  work force housing
  back in the mid 90's. And it  became an issue.
  But I think the characteristic  over the past few years
  in my estimation anyway, um, we
  started to hear more and more  about work force housing for 
  um, moderate income people or 
  higher income people. I don't  think that's a traditional part  of the 
  issue. Um, the market's being  broken I think is a new 
  twist on a very old problem  that we've had. 
  [Ok] Dan: I live in Albert Lea  and it's funny you say the mid  90's 
  cause that's when it started to  become an issue there, started  to talk about 
  it. Ah, you know form  committees, and how are we  going to do this?
  And our local communities  really don't have the tools  they need to 
  respond to it. But I would  agree with what Tim said. So  there was more
  maybe rehabilitation, low  income. Ah 
  that seems to have worked it's  way through in many  communities. 
  But it's that, you know...you  don't make enough 
  that you know you don't make 50  dollars an hour. But you've got  that, again 
  that new teacher or new  technician 
  ah, they're having a hard time  finding quality 
  ah, a quality place to live.  And what does that..
  what does that do? Well, it  becomes a competitive issue.  Well, 
  why do I want to live in this  community? I want a decent  place to live
  and raise my family and so. Ah,  we think that it's 
  an important issue to be  solved. I'd say it started in  some ways
  in the mid 90's but really over  the last probably 10 years 
  that middle income has really  ah, grown in 
  importance. And the legislature  so far hasn't reacted 
  you know, there's always that  lag right? Makes some sense,  but 
  ah, it's really on the  forefront. The state is very  active in 
  housing. We've done roughly ah,  almost 
  100 million dollars a year in  primarily the low income stuff.  So, 
  the state does have an active  role and plays an active role  in housing. In 
  a lot of ways we think this is  just an area that needs some  attention. 
  Bethany: Tell me a little bit  about how wide spread 
  the issue is. We talk a lot  about rural or outstate or  greater Minnesota 
  is it throughout all those  areas? Are there pockets 
  of it that are experiencing it  more than others? Dan: You  know, I think there 
  definitely is. I think when you  look at ah, you know on the  news 
  lately Thief River Falls and a  possible expansion by Digi-Key 
  they've got a problem. Roseau,  ah down in my neck of the woods 
  both Albert Lea and Austin you  know. The interesting thing ah,  the 
  city manager from Austin was in  St. Paul this week to testify 
  in behalf of our bill. They  haven't built a market rate 
  apartment building in Austin,  right, home of Hormel, hasn't  built a market rate
  apartment building in 45 years.  And it is 
  getting to be a problem for  them. So we hear, you know  there.
  It's maybe not quite the same  issue even though they have  different housing 
  issues in communities like St.  Cloud, Rochester, Mankato. 
  Ah, they probably have some  different issues. But still an  issue for them as well. 
  Ah, there's some pockets in the  metropolitan area that would  say they 
  they have needs. But it's  really different. Because in a  metropolitan area 
  they have seen ah....growth in 
  this area. And people are  building apartments. And you  know the one thing that...
  I think makes the case for  state investment is if you 
  think about other state  investments in metropolitan  areas it's really helped their
  their housing market. You look  at the light rail, the green  line light 
  rail, the proposed southwest  ah, light rail corridor.
  When that was being talked  about I remember there was an  article in the...
  ...Star Tribune. And there was  a big fight going 
  on over you know, what kind of  housing was, might create too  much high 
  income. Not enough of low  income and all this and I'm  thinking 
  you know what a good problem to  have, right? We don't have  those mega 
  investments by the state that  help create housing in greater 
  Minnesota. That's why we think  that some of the proposals that  we're advocating 
  makes sense and would bring  some equity to the distribution  of state 
  resources. Bethany: So as I was  preparing for this
  you know you look at different  articles and different research  out there, 
  and they said that there are  businesses that want to expand 
  or you know, either relocate or  expand. But they 
  are hampered because there's  not enough housing. You're  hearing that 
  repeatedly then. Dan: Right.  And they're writing checks. You  know you look at 
  AGCO in Jackson, you look at  Digi-Key you look at Polaris. 
  You've got these corporations  that are also writing checks to  help stimulate 
  this. That's not occurring in  the metropolitan area. There's  another program
  that doesn't quite work like  we'd like it to. With maybe  some help it 
  could but it's called a  challenge grant program, right.  And I was 
  interested this week by the ah  data sheet that was put up
  by the state. And it had all  the projects on one 
  side and what they did. Then  the last column was local  investment. 
  And all of the corporations  that had contributed to help 
  do this, ah were in greater  Minnesota. All the metropolitan 
  projects, because it's so much  easier to do there, hadn't  required
  that contribution. You know,  sometimes I think that if those  guys had to write 
  checks to see this happen it  would probably get solved a lot  sooner. 
  But ah, you know we'll deal  with what we have to deal 
  with and advance our cause and  tell our story. 
  And I think it's compelling.  And hopefully will result in 
  ah, greater economic  development opportunities in  greater Minnesota. 
  Bethany: Tim, in your  conversations with the clients  in 
  the areas that you represent  have you heard similar concerns  in terms 
  of you know, needing more of  that middle...middle income  housing
  out there? Tim: Absolutely.  First of all I'd say
  um, when I have discussions in  communities about housing 
  it's usually broader than just  the work force housing 
  issue that we're describing.  It's usually we have a lot of  housing needs
  including the work force  housing need as we're  discussing 
  it. Um, one example I'd use is  Blackduck because
  we've been having a lot of  current conversation 
  with them. But Anderson  Fabrics, major employer, key
  critical employer for  Blackduck. 
  Um, not only wants to expand  they have been expanding but 
  unfortunately their expansion  is taking place in Chicago. 
  They're contracting for  employment because 
  they don't have the housing to 
  support an expanding work  force. Um, and like 
  Dan suggested they're...they're  a willing partner in trying to 
  make something happen but  they're dealing in a pretty  tough housing market at the same
  time. So, we need to find ways  including what we're 
  talking about here to try to  help Blackduck meet those  needs. 
  Bethany: As you talk about this  issue I'm assuming you've  talked 
  with developers in terms of you  know what would it take to get
  more development happening. How  do they, how do they respond?
  What is the problem? Dan: You  know our chief author in the  senate is
  from ah, Red Wing. Senator  Goggin. And when I first 
  met him cause he's new, met him  this year, before I could even 
  start going through the  proposal he said I know exactly  what you're talking 
  about cause I've got a couple  developers in our area that  tell me
  they can build high end stuff.  And they can build 
  ah, low end stuff or affordable  stuff cause there's 
  a lot of subsidies. What they  can't figure out how to do is 
  this middle income stuff.  Because whether it's financing 
  there's a whole lot of reasons  that seem to have broken the 
  market. Ah, and I wish it was  different it just 
  isn't. And that....so yeah  that's what it is. It's 
  that kind of that gap of...of  ah what
  are the rents in the community.  How does this translate into 
  a performer to build a new  apartment building? 
  And it just isn't working out  very well in greater Minnesota.  You got some issues 
  with you know, if you build it  you go get the appraisal and  you try to
  borrow money against it. The  appraisals don't match what  you're putting 
  in like they would in the  metropolitan area. So you have  a problem with 
  financing. So it's a whole lot  of problems. That's why we  think that we've 
  got a sort of a market based  solution, a tax credit program. 
  That would help address that.  And we really believe that 
  this doesn't have to be. You  know, I think we're going to be  in the affordable 
  or low income business forever,  right? We're always going to  have to take care of people 
  and we should. Ah, we hope that  after 4 or 5 years of 
  a program like this that the  market starts to correct and  say, hey 
  you know we can make money, we  can cash flow these projects in  greater
  Minnesota. So, we're hoping  this jump starts the market 
  and doesn't need to become a  permanent program. Bethany: Do  you 
  hear concerns, too, about I  mean you talked about Blackduck
  um, in terms of these smaller  or more rural cities
  that might just have one or two  key employers
  are they hesitant because  there's always the chance they  could pick up
  and relocate? Dan: It's no  question about it. Cause your
  you know if you think about it  if we say we all decide we're  done with this, we're going to 
  go form a housing corporation.  We're going to go build  apartments and 
  lease them out, right? If we go  to the Twin City metropolitan  area or 
  Rochester or St. Cloud, we're  not dependent on one or two
  manufacturers. But when you're  dependent on that one  manufacturer, 
  boy you hope they're...you know  you've got...your eggs are in  that same basket
  as theirs. And there's, that is  another one of the concerns
  that developers have. That I  think is impeding some of the
  development. Tim: And it's not  only the developers, the  developers
  have to get financing. So you  have to think about it from  that 
  stand point too. So there's  risk on both 
  parts. [Ok] And the risk is  heightened if you
  um, run into that situation.  Bethany: In some ways
  it's gotta almost sound, almost  like a good problem for  communities to 
  have. You have businesses that  want to invest that want to  grow in your 
  your community. But they're  being hampered. 
  That's what your hearing, that  communities are losing out on  potential opportunities. Dan:  No question. And 
  they just don't have the tools  available to them that even in  the low income 
  area, ah, say you know whatever  city Blackduck, Bemidji
  they could do a low income ah  TIF or 
  tax income refinancing package  for I think up to 25 years
  to do a low income project. Ah,  they can't do that for work 
  force. And so there's a bill  that we support to help change 
  that to allow communities maybe  more 
  local tools. But that still  isn't going to be enough to I  think 
  spur the kind of development  that is really required.  Bethany: Ok. 
  Let's talk a little bit about  what it is that you would like  to see happen. Tell us 
  a little bit about what the  proposal is that you've really  been trying to work 
  with legislators on. Dan: Sure,  sure. Ah, it's a tax credit  proposal. 
  It is a 40% tax credit up to a  million dollars 
  per investor. Up to 2.8 million  dollars a project 
  so we want to make sure there's  more than just one project  done. We 
  don't want to see it get  gobbled up, ah you know one  project a year. 
  But really the ask isn't that  large. It's 6.6 million this 
  year. That...you know, that's  not going to fix the problem in  one year.
  Ah, but it would be a good  start. 
  And so, what would happen is  the developer would apply for  the credit 
  they'd get the credit, build a  project and then be able to  take 
  advantage of that...of that tax  credit. So we think it's 
  a ah, a good way also a good  way to target this.
  Because sometimes there's been  over production of low 
  income units. Ah, that...so you  have a higher 
  vacancy rate there than you  might want to have. Where you  know, if you
  if you create that invest in,  or the incentive for 
  the developer they're still  going to put this in an area  where it's needed. 
  Otherwise, you know even with  that tax credit that's not  going to work out if 
  there's not enough people there  that will lease these new  units. So, 
  we think it....ah our proposal  will target 
  this a little better as well.  Bethany: Are you finding  support? 
  Dan: It varies. Ah, last year  we did make it into the senate
  tax bill, not the final tax  bill. It didn't get passed  anyway. 
  But ah, after two years we  finally got into there. 
  Ah, it varies. I think that ah,  you know
  we've got some work to do with  the number of new legislators.  Because I think
  they hear what we're talking  about. And hear low income and  then see all 
  those dollars that are going  and figure well, this is  already being taken care of. 
  So, it is an education process  to get the new people 
  up to speed on it. But ah, yeah  I'm optimistic 
  that we're going to see  something happen this year.  There was a grant 
  program that was started a  couple years ago. Ah, we 
  supported it. We had...you  know, we thought there was  going to be some 
  issues with it se...ah  surrounding the ah, 
  concept of prevailing wage  requirements that came with it.  So if you look at the 
  project in Roseau. I think  the...first year was like a 
  700 thousand dollar grant they  had to come back the next year  and put in 
  almost I think, the same amount  to make the project happen. So  there are 
  some, there are some issues I  think in that program that  could be worked out to make it 
  work better. Ah, but we think  our tax credit 
  proposal would actually result  in, um
  more units being built in a  quicker fashion. 
  Bethany: Is it fair to say that  when you're talking about this  you have to be really careful  to make sure 
  that you want additional funds  versus like perhaps taking 
  some away from low income  housing? You know what I'm 
  saying? To make sure you can  get both? Tim: I'm pretty  passionate about 
  that because frankly I think  from a state perspective 
  um, we this is a tool that's  really really needed. 
  But um, we still have a really  big 
  need for affordable housing. I  don't characterize it just
  as low income but it's low and  moderate income. But 
  income assisted housing of some  level 
  is still needed in at least the  region that I serve.
  It's pretty universal. And so  yeah, I do think it's 
  we do want to be careful with  that because this 
  is all about um...an additional  investment 
  in housing in an area that has  not been addressed in 
  the past. [Ok] Dan: Right. But  it shouldn't replace other
  things. I mean, you know, if  you think about it
  ah, probably the highest  priority would be homeless  people, right? I mean, 
  it would be hard for me to say,  oh no don't do that and do  this, right?
  And so it is, it's an additive
  it's a need that we have. But I  do think it's just a fight again
  because if you look at how the  state influences the 
  housing market in the  metropolitan area. We talked  about the light rail, Vikings  stadium
  these things do create housing.  And we just don't have 
  cause we're sort of located all  over, right. We don't have that  light rail
  but we do have a good  interstate system. We're trying 
  to ah, you know improve that  all the 
  time as well. And I should  point out we've got those good  roads and stuff
  it's important to use those.  Drive safely on those roads,  put 
  that cell phone down when  you're driving and obey the  speed limits.
  So, I think that's important  too. [Absolutely] Plugging that  for a 
  totally different reason.  [Laughing] 
  Bethany: So, tell me I know  that some companies have really  gotten kind of 
  creative in terms of how  they're going to 
  stay, they don't want to leave  these communities. I think is  there one that's like
  busing people an hour or so to  try to
  to keep their employees going,  and so. 
  You know have you heard from  companies that they really do  want to be 
  in rural Minnesota? Tim: Um, I  was just at a board meeting 
  last night and one of my  commissioners lives in Shevlin 
  and he was talking about people  in his community that are 
  busing um, up to Thief River  Falls and working at 
  Digi-Key. And um, you know it's 
  pretty successful and people  are willing to do that because  it's a 
  it's a good job opportunity and  there's no housing available  close by. 
  So they're...they want to be in  their community anyway 
  but they don't really have an  opportunity to move because  there's no 
  housing anyway. Bethany:  There's just no opportunities  for them. Dan: Yeah, there's 
  companies in southwestern part  of the state, too, that are  running their own 
  transit systems to bring people  to work. Mayo Clinic in 
  fact does one. They run their  own buses around that area
  to make sure they get people to  work. But yeah, that's how 
  I'm not gonna say desperate,  but I mean if they don't want  to do that 
  right they'd rather be spending  their time and resources  improving their business
  and selling more product and  employing more people. But part  of that for some
  of these companies has been ah,  transit systems. And again 
  that's different then the  metropolitan area. And so, 
  again we're not trying to take  anything away from them. We're  just trying to say 
  we...we've got different needs  and they need to be addressed.  Bethany: Each community has 
  it's own unique needs I'm sure  as you guys hear repeatedly.  [Yeah] 
  Dan: And I think Tim was right,  that it depends on where you go 
  it's a different mix. Some  areas need a lot 
  of both. Some areas need more  of affordable 
  than others. Some people say,  hey we've got plenty of  affordable 
  but this middle income. So I  don't think it's a cookie cutter
  you know, I think every town is  almost different. [Right] 
  There's not a one size fits all  solution. Bethany: Do you find 
  that there's communities that  exist that have some housing 
  available it's just not what  they need? So like, the low  income 
  housing for example, they could  live there but they don't meet  those 
  income requirements? Dan: Yeah,  I 
  can't speak specifically for  this area. I live in Albert Lea  and 
  you know one way...we hear a  lot from the school district.  That's this is a problem 
  and ah, I know a guy that  manages a section 8 building. 
  Nice building down by the lake.  And he can always tell when the  new teachers 
  are in town because there's a  knock on the door [knocks on  table] hey, can 
  you sign me up right? Oh, great  what do you do? He said, well 
  took a job at the school  district. Oh yeah, sorry you  make too much money. 
  So those units sit empty. You  know, it's not a high 
  rate but there's always empty  units there. They sit empty.  Where 
  you know you got these other  people saying, well maybe I  don't want to move to this  town. Maybe
  I want to go to the cities  because I can live in a 
  you know, a better apartment.  Ah, and that is happening. 
  It's a strange deal. But it is  happening. I think 
  you know, you're going to see  more and more school districts  start to talk about this. Which 
  is really ah, different than  what you think. I mean, 
  the mind set is underpaid,  somehow factory 
  workers you know, this  nefarious evil. 
  And it really isn't that. It's  really people that are making a  decent wage
  but they also want a decent  place to live. And who  wouldn't, what's wrong with  that? 
  Bethany: Let's talk about some  of the tools that do exist.  You've 
  referenced TIF earlier in terms  of the way that it can be used  to develop 
  certain types of housing. Is  TIF not an option for 
  a housing development such as  this? Dan: Not for, not for  market
  rate housing. It is for low  income. But the legislature 
  restricts the...you know, which  always bothers me. You know it  seems like 
  in full disclosure, I'm a  former state legislator. 
  When we run for election right,  we're all in favor of local  control and it
  seems like too many of us we  get to St. Paul and not want to  control the local. 
  So they do not let cities  ah...we joined 
  with the league of cities  trying to change that. The  coalitions a partner
  in it. Trying to make sure that  we could use TIF but in the 
  cities that I've talked to,  they're going to use it. No 
  question about it. But it isn't  going to be enough in and of 
  itself. So I think that would  be a needed tool. And it's  local dollars
  there are no state dollars in  ah, TIF program. So, 
  you know why St. Paul restricts  it that way is beyond me. I 
  think our communities are  responsible ah, if 
  the city council says hey, this  is what we want to do and this  is..this 
  makes sense for our community.  I have no idea why the state's  standing in the way but 
  that's a tough sell in St.  Paul. And why is it a 
  tough sell is because I think  some of the abuses that people  have seen 
  and they've occurred in the  metropolitan area. Well, don't  ring us up for that 
  you know? In fact, one ah,  senator who will go 
  unnamed but this particular  senator was originally 
  against TIF for anybody but  then kind of moderated 
  their position and said you  know, I guess this does make  sense in the metro area. Cause 
  you kind of sit down with them  have that conversation about,  it's a little
  different game out here. Again,  it's not saying it's better,  worse
  or anything it's just  different. And so you might  need different tools in the 
  metropolitan area, they've got  different tools. We 
  may need some different tools,  there's nothing wrong with  that. Bethany: Is that a big  part 
  of your process right now?  Trying to educate in terms of  the 
  problem for rural or for metro  based legislators? 
  Dan: Absolutely. And even  the....even the new greater 
  Minnesota legislators. Cause  for some of them you know 
  you're learning so many things.  There's LGA, other issues are 
  flying at you, transportation  what do all of these things  mean? 
  And you've got to try to figure  this out and then somebody's  over here 
  talking about housing. But you  know we're spending all this  money over here. 
  So yeah, there's an education  piece to it. It's 
  a...that's why we're there. And  ah....
  Tim: That's one of the reasons  like in, um that we're 
  really interested in being part  of the partnership is that we  don't 
  have the ability to be spending  time in St. Paul. 
  Um, you know we're 4 hours  away. 
  Um, and so it's just difficult  and 
  being a member of the  partnership allows us to be  part of 
  a voice that's going to be  heard. Cause we don't  necessarily 
  think individually we're going  to be heard very loudly at  least. 
  And so it's been a good thing  for us to be a member 
  of a group of ah, communities  throughout 
  the state that are engaged in  these dialogues and willing 
  to provide some leadership to  try to get things done. 
  Dan: The Center for Rural  Policy they were 
  in St. Peter, they came out  with a report about 4 years ago  who speaks 
  for greater Minnesota at the  capitol on these issues. And at  the end 
  of the day the report said,  nobody. Ah, they also didn't  think anybody 
  could do it. That it would be  too hard to do, what we're  doing. But we don't believe  that. We think
  we can get it done. But one  thing they noted in that 
  was that you know, metropolitan  area has their own  organizations but
  also the state wide  organizations and not again 
  intentionally but are picking  up a metropolitan feel. And Tim  hit 
  on one of the reasons, right?  There's one organization that  has 
  a meeting right before session  to put their priorities together
  it's an afternoon, ah like a  Friday afternoon typically
  in St. Paul. You don't get  people driving 4 or 5
  hours to go down for a 3 hour  meeting. Right, so who's in the  room? 
  Tends to be and I've been  there, ah it tends to be 
  people if you do the dot and  then draw the area, unless 
  there's a board member, it's  people that are within 75 miles
  of the metropolitan area,  right? And that's a state wide  organization. 
  But that's who's there at the  meeting and then that's what  their
  ah, the priorities being to  pick up that metropolitan feel
  even though it's unintentional.  And that's what that Center for  Rural 
  Policy report talked about. Was  that you know, somebody needs
  to be out there talking about  hey don't forget us. You know  again 
  it isn't...it isn't we're  trying to take anything away  from them we're just trying to  say hey
  ah cause I don't think people  in the metropolitan area wake  up in the morning and say boy  let's put 
  the screws to those guys up in  Bemidji or Dorman, 
  lets go you know make things  hard for them. It's just not  top 
  of mind cause they've got their  own stuff they're dealing with.  It's just
  important, it's important that  greater Minnesota have that  voice
  at the capitol on a consistent  basis. Bethany: Do you have any
  time any idea in terms of what  kind of number 
  of units could be beneficial  statewide? I mean, has there  been any research 
  into actual figures, in terms  of the stats in terms of how  much 
  could be used? Dan: I think  Minnesota housing finance would  say 
  I should have brought the  brochure but as I recall 
  ah, it's about 6,000 units. You  could right 
  now I mean today. Bethany: That  they could fill them today if  they were
  constructed. Dan: If they were  constructed. So I mean there is  a big...that's why
  in one of the committees this  week, ah people were like 
  well why don't you do this as  well? Why don't you this as  well? Trying to 
  help the bill, right? Well just  do some low or do some ah
  single family home stuff. And  another representative pointed  out, it's only 6 million 
  dollars a year, it's not...you  know, this isn't going to 
  solve all housing issues. You  know if you think of the scale  we're talking 
  about 6 million a year versus  100 million a year in low  income. 
  Again, that's not bad. I'm not  saying take that money I'm just  saying 
  you think of the scale, ah we  can't solve 
  the...that at 100 million  dollars a year we're going to  have a hard time
  you know making a big dent in  it at even 6 million dollars a 
  year. The DEED program I  referenced earlier is only 2  million dollars a year
  and while nice, it just isn't  enough to
  really bend that curve very  much. Bethany: Is the lag time 
  concerning then, in a way? You  know that the need is here 
  now and even if you got funds  yet this year it's going to  take, what?
  2 years to get them constructed  and operational? Dan: Yeah, 
  the nice thing and one reason  you know that we're trying to ah
  establish this program within  DEED or the Department of  Employment 
  and Economic Development. The  other, the big housing players 
  Minnesota finance agency and  because of the nature 
  of their programs they've got  federal tax credits and so much  more 
  complicated process. But we  were at a meeting in Thief  River 
  Falls with the League of  Minnesota Cities and Minnesota  Chamber trying to 
  understand the issue, get more  information. And one of the  cities talked about 
  when they did an MFHA project  it was a 2 year process
  the DEED grant program they  were able to get it spun around 
  in less than a year. So that's  one reason why we want to work  with DEED cause we think 
  that this, we look at this  economic development not
  you know low income housing and  so DEED is seems to be
  much more responsive. That's  not a criticism, hey I better  throw that
  in there so I don't get a bunch  of angry people. It's just  different. 
  And it's a different need and  ah so hopefully it's not two  years. 
  Bethany: Are you feeling kind  of confident at all? I mean 
  do you feel like there might be  a chance of success yet this  year? Dan: I do. 
  I do. I don't know...ah, you  know I hope it's the whole 6  million
  that I don't feel as confident  about. But I think we're 
  going to see some action. You  know we've seen growth each  year that 
  we've tried. This first year we  couldn't get any traction. Next  thing you know we're in the  senate
  tax bill. So hopefully this is  the year that we're able to 
  push it over that end line. And  actually get it signed into  law. 
  Bethany: Well I want to thank  you both for joining me today um
  thank you for tuning in. If  you'd like to learn more about  the Greater Minnesota
  Partnership or this issue I  encourage you to visit the 
  website on the bottom of the  screen. Thank you. Join me next  time. 
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