Five-Story Affordable Housing Project On Barstow Street In The Works
City of Eau Claire and Impact Seven enter MOU for redevelopment of downtown parking lot, would result in 60 low-income apartments
The City of Eau Claire has entered into a Memorandum of Understanding (MOU) with Impact Seven, a Rice Lake-based property management and development nonprofit, to create a 60-unit apartment building for lower-income families.
That project – tentatively dubbed the "Barstow Apartments" in project plans shared with Eau Claire City Council on Oct. 27 – would go up on the current Seaver Street parking lot, off of South Barstow Street, in downtown Eau Claire.
Its creation is contingent on the Wisconsin Housing Economic Development Authority (WHEDA) approving its use of Low-Income Housing Tax Credits (LIHTC).
Per early project plans, the Barstow Apartments would have 26 one-bedroom units, 22 two-bedroom units and 12 three-bedroom units across five stories.
The state LIHTC program encourages the production of affordable multifamily rental housing by offering project owners dollar-for-dollar income tax reductions, over a ten-year period. (WHEDA acknowledges the full ins and outs of the LIHTC program are complicated; an introductory explainer of the program can be viewed online.)
Per early project plans, the Barstow Apartments would have 26 one-bedroom units, 22 two-bedroom units and 12 three-bedroom units across five stories. It would also have underground parking, storage space, plus an elevator and ramp entrance/exit, among other features.
If approved for the LIHTC program, the apartments would be open to families which make between 40%-60% of the median county income. According to the U.S. Office of Policy Development & Research, the estimated 2026 median family income in Eau Claire county is $101,300; 40% of that totals $40,520.
The City owns the parking lot in question, at 617 S. Barstow St., which totals about 13,000 square feet. The Barstow Apartments project – which would be a capital investment of roughly $12 million, per the MOU – would also require use of the adjacent parcel, which currently has a building on it occupied by Say Yes Missions & Ministry.
Community Development Director Aaron White told Volume One that Impact Seven made a separate purchase offer to that parcel’s private owner, which has been accepted – also contingent on the project being accept for the LIHTC program.
The MOU details a tentative agreement; Impact Seven would purchase the Seaver Street lot for $20,000, or about $1.50/square foot. It's purposefully lower than the regular market rate, White explained, because affordable housing development like this project “is a huge need.”
City staff received direction from city council during a closed session earlier this month, on Oct. 13, to explore the project proposal from Impact Seven, White said.
Impact Seven also operates five other residential buildings across the Menomonie and Eau Claire areas. Of those buildings, four are low-income housing.
White noted recent changes in WHEDA policy have encouraged developers to consider and pursue more LIHTC projects outside of the Madison and Milwaukee areas. “Once you look outside those areas and to (western Wisconsin), Eau Claire is a prime area for (LIHTC) projects,” he said.
The Redevelopment Housing Authority is also working on an MOU between the City and another developer, for a separate LIHTC project. More information on that project is forthcoming from Volume One.
You can view the proposed plan documents shared with Eau Claire City Council on Oct. 27 online. The city council meets the second and fourth Tuesday of each month and releases its agenda packets the Thursday before each meeting.
