The City of Duluth, in collaboration with the Duluth Economic Development Authority and the Duluth HRA, released the Rebuild Duluth Program in November of 2019 and a second round of was released during the fall of 2020. The Program provides free infill lots throughout Duluth to applicants interested in building new housing. Applications are scored based on several factors, including cost of construction, number of units, inclusion of community space, sustainable energy and building materials, and level of project detail (landscaping, renderings, site plan, budget, and timeline.
The Program goals:
– Encourage new development city-wide
– Create more affordable housing
– Maximize existing infrastructure
– Encourage innovation in building practices and materials
– Learn from each project
A year into the Rebuild Duluth initiative, we have learned much and have confirmed several existing assumptions. For example, construction costs are challenging regardless of the size or type of housing being built. The pandemic has exacerbated existing cost issues due to material and logistical challenges, while construction has generally continued as planned. In the first round, we encouraged affordability on a per unit basis, but we quickly realized that “affordability” equates to smaller homes. Additionally, while the free land is certainly an incentive, it does not transform a market rate project to an affordable one. Without additional subsidy or assistance, affordable, mid-size units continue to be near impossible to construct.
Another lesson learned is that alternative construction types, including SIPS, shipping containers, modular and helical pier foundations, are proving to be approximately the same cost as traditional stick built structures. This is in part due to the busyness of contractors as well as their unfamiliarity with using these methods. We suspect costs for such alternative construction to decrease as they become more common, but smaller scale project such as those in Rebuild Duluth have a larger barrier to entry.
Finally, we learned that builders and architects from across the country are interested in participating in such a program. Applicants have submitted from Mexico City, New York City, Albuquerque, Denver the Twin Cities Metro, and local builders and residents. The pandemic has certainly challenged our efforts, but we have welcomed new ideas from everywhere, hoping to challenge and sharpen our approach to housing. At present, we have six projects anticipating a spring construction start and are finalizing agreements for four more. Current projects include a variety of types of housing and features, including community solar, tiny home developments, land trust homes, rain gardens, townhomes, community gardens and gathering space.
Ultimately, the City of Duluth hopes to incentivize and encourage new investment in our neighborhoods through new housing units, available at a variety of price points. We have much to learn and room to improve, but any addition to our housing stock is a win for our community.
For more information contact Jason Hale, Senior Housing Developer, jhale@duluthmn.gov.