By Tucker Henderson

Reporter

The New York Mills Economic Development Authority (EDA) board met on Wednesday, April 15 to discuss development within the city. With a revolving loan fund balance of $256,674.24, the board is looking to invest that money into the community with eligible small business loans.

Guests of the meeting joining via Zoom were Maxfield Research and Consulting members Joe Hollman, Director of Research; and Nathan Ross and Jessica Van Voorheis, Research Associates. The team from Maxfield presented on the NY Mills housing study which was completed in February.

The housing study, which began in December, is a deep analysis into the current and projected resources and needs for housing within the community. The study takes a look at the current housing market conditions, demographic and economic characteristics of the community, existing housing stock, housing affordability, and other key aspects of the city’s housing.

One of the key findings of the study showed that a variety of housing options—moderately priced housing, move-up housing for growing families, and housing alternatives for seniors—are the most pressing issues at present. Demand is strong for affordable housing, both for rentals and ownership, and especially for subsidized senior housing.

Affordable and subsidized rental housing and owned housing represented the largest portion of demand in the city with nearly 60 percent of housing in those two categories. Service-enhanced housing (which includes independent living, assisted living and memory care) as well as market rate rental housing make up the other 41 percent.

In 2020, NY Mills enumerated 1,294 people within the city, making up 556 households. Over the previous 10 years, population grew at a rate of nearly eight percent and in the next 10 years population is estimated to grow by about 100 people, making up 45 households.

With an established need for housing and the potential for this estimated growth, the researchers at Maxfield recommended that the city focus on creating housing in ownership, market-rate rental, affordable/subsidized rental, and service-enhanced senior living in order to try to meet the demand as the community grows.

Analysis on employment shows that while unemployment is fairly low at around 3.5 percent in Otter Tail County, within NY Mills a high number of laborers live outside the community. Only 103 people both live and work in town, while 1,317 commute in to town for their job and another 496 leave during the week to work elsewhere.

An estimated 704 housing units (homes, apartments, condos, etc.) are located within NY Mills and an estimated 88 percent of those units are currently occupied. This is 12 percent higher than the average in Northwest Minnesota. With a majority of homes in town built in the 1970s and 1980s, older homes that are available are often outdated and in need of repairs once purchased.

In the past 10 years, the City of NY Mills permitted 83 housing units, which included the 60-unit South Point Apartment building as well las 23 single family homes. While additional housing units are being added, it just hasn’t kept up with demand which is the basis for Maxfield’s recommendation for a focus on creating affordable housing in the future.

The next EDA meeting will take place on Wednesday, May 20 at 8:30 a.m. in the City Hall Chambers.