Developer shares insight on resurrecting apartment project

After Williston citizens' outcry at a public hearing last month to exclude the Marcil Group Inc. of Fargo from being part of a housing project in the Bakken Heights Subdivisions, the Williston City Commission referred the matter back to committee to look for a solution to continue the project and help address the housing shortage here.

At Tuesday evening's commission meeting, George Gaulker of Valley Realty Inc., of Valley City said he would pursue the construction of the two 36-unit apartment buildings in the former Cimmarron Trailer Park. He is to begin the project no later than Nov. 1 and the project's completion deadline is next summer.

"When we found that Mr. Gaulker on his own, without being in partnership with Marcil, was interested in proceeding, it kind of intrigued us," said Commission President Ward Koeser Wednesday.

Gaulker told commissioners he was interested in doing a scaled-down version of the original project by purchasing 6.14 acres of Lot 2 to build two apartment buildings, said Koeser. He added the property has the capacity for a third building.

"I personally, and I guess the commission, felt that it was worth supporting," said Koeser.

Initially, the Marcil Group and Gaukler's Valley Realty Group Inc. partnered for a project that would have provided Williston with up to nine multi-family housing buildings on 17 acres of the old trailer park.

"It was a fairly ambitious thing, and obviously we had a lot people who were concerned about working with the Marcil Group because there was a substantial amount of frustration over the management of their apartments and raising of rents," said Koeser.

Valley Realty Inc. is purchasing Lot 2 for $58,259 and received a Tax Increment District 5 (TIF) with a cap of $300,000.

"There is demand by the city and the community for more housing, and so that's why we continued to work with the city on the project," Gaulker said Wednesday in a telephone interview. "I am very happy to go back and do some more work up there to get a growing community."

"We heard rumors of there being 200 people on waiting lists for apartments, and so we know this is a huge issue," said Koeser. "Anytime that we can have housing constructed and have someone come invest in our community, it's a positive thing."

The commissioners approved the TIF at the meeting, which is to be paid in seven years at a 6.25 percent interest rate. The TIF complies with a development and renewal plan called the Bakken Heights Development Plan, and it is designed to finance the cost of rehabilitating a blighted area.

"When we are looking at an area like that, there is this fair amount of work that has to go into it before you could actually build on it...and that is what the $300,000 is basically being used for," said Koeser.

The TIF agreement states $130,000 is assigned for demolition and site clearing, city sidewalks, street lights rewiring and refurbishing, overlay of 32nd Street, replacement of curb and gutter and installation of aprons. About $110,000 is for the storm sewer, sanitary sewer and water service.

"The drainage going through the property had to be dealt with, even on this smaller area, and that's why it was as high as it was," said Koeser. "We need to make sure we have adequate drainage through the whole property."

The remaining $60,000 is for contingency and interest allowance, bond administration, general conditions and engineering costs.

"I'm pleased that we were able to move forward with this project," said Koeser.

Gaulker added they "are happy to be part of it."