EDA specialist Jennifer Howard presented a new housing study of Winnebago to the Winnebago EDA on Wednesday, June 7. The study is the result of months of data collection by Bolton & Menk, and it identifies several priorities for the community to focus on as it seeks to develop affordable housing in the future.

A months-long effort by the Winnebago Economic Development Authority (EDA) recently came to fruition, and the results were presented at an EDA meeting on Wednesday, June 7.

After identifying lack of affordable housing as a top-priority issue, the Winnebago EDA commissioned a housing study from Bolton & Menk last year.

The study’s total cost was $22,531. However, it was funded by outside entities such as the Bevcomm Foundation, a Compeer Financial Rural Feasibility Study Grant and a Strengthening Rural Communities Grant.

The study was completed last spring, and EDA specialist Jennifer Howard presented a condensed version of the findings to the EDA, noting that the full report is a 156-page document.

The study collected a wide variety of data from the Winnebago community, which was then used to identify top priorities to improve access to affordable housing in the area.

The first priority identified was the incentivization of new construction. However, Howard noted that a challenge facing this goal is its expense. She reported the average cost of new construction is between $175 to $242 per square foot.

Howard identified initiatives such as tax abatement programs and incentives for new construction as potential solutions.

For example, a New Construction Housing Tax Abatement Program was recently approved for Winnebago residents, and the Faribault County commissioners approved a county-wide tax abatement program on June 6, which will be available to residents in Blue Earth, Winnebago and Wells.

Howard shared that one Winnebago resident, Ron Howe, has already applied for the city’s tax abatement program, and his application will be reviewed at the next City Council meeting.

The housing study also identified home rehabilitation as a top priority.

“To build a new house, we’re talking upwards of $300,000 to $350,000,” Howard said. “We need to focus on how we can rehabilitate, maintain and improve the houses we already have in our community.” 

Howard said 37 percent of Winnebago’s housing stock is over 80 years old.

“We have very old homes,” she explained. “I think old homes are the greatest. They’re structurally sound. But, we need to maintain and keep them.” 

That being said, Winnebago also has 86 vacant lots, which inspired another priority: construction of single family slab on grade homes and modular homes.

“Vacant lots are a great opportunity for a developer to create slab on grade homes,” Howard explained, adding the style is optimal for older residents seeking transitional housing or young families seeking a starter home.

The housing study determined that 34 percent of people in Winnebago are collecting social security, and just 15 percent of Winnebago’s retired population has a retirement income.

Meanwhile, the study found 392 families living in Winnebago. It also determined that 60 percent of Winnebago’s single family homes are occupied by families.

Finally, Howard reported that improving the workforce pipeline and attracting remote workers are top priorities for Winnebago.

“We want to promote Winnebago as a great community to work from home at,” she explained. She added, “We need to figure out a way to provide workforce market-rate housing.” 

Howard also suggested other strategies to address Winnebago’s top housing priorities, including establishing a home rehabilitation program and a modular house pilot program, and constructing housing for new and retired families.

“We wanted to create a housing study, and then actually have actions that come out of the housing study,” Howard explained. “We really want to try to take this product and use it for acquiring new development, and then use it for us as a community to help us grow and evolve.” 

The study will be presented to the Winnebago City Council on June 13. The EDA will also host a Housing Study Open House for the community on June 20, at 7 p.m., with a complimentary meal catered by Huntley Cafe.

On June 7, the EDA approved a $350 budget for the event.

In other business, the Winnebago EDA:

• Learned that Optimal Performance Specialists (OPS) Clinics, which has been providing healthcare services to Winnebago since last November, has announced it is disbanding.

However, OPS nurse practitioner Heidi Stevermer has informed the city she would like to continue practicing in the current OPS Clinics building on Winnebago’s Main Street.

“We’d need to redo the lease,” city administrator Judi Hynes noted. “(Stevermer) is hoping to have a year-long lease with the same terms we are currently at.” 

• Approved Norma Schmitt as the 2023 Winnebago Hall of Fame inductee. Schmitt was nominated by Yvonne Cory.

• Awarded a Commercial/Exterior Building Grant in the amount of $6,000 to Steve Miner, who is making improvements to the exterior of his Main Street business, Hamm It Up.

The improvements include repairs to the roof and windows, insulating the attic and repainting the front of the building’s exterior.