TOWER— Barring something unexpected, it appears ground could be broken on the long-delayed townhome project at the Tower harbor as early as next month.
That’s the word in a letter of intent issued by the developers this week expressing their plan to begin construction ahead of an Aug. 1 deadline established in a new development agreement between the developers and the Tower Economic Development Authority.
The TEDA board will still need to review the letter of intent as part of its due diligence, although the development agreement does not require separate approval by the board. The developers will still need to provide full construction plans and evidence of sufficient financing for the project before TEDA will convey the property in question.
The project developers, doing business as Tower Harbor Shores, LLC, (THS) had been stuck in neutral for several years as the city of Tower worked to provide the developers with clear title to that portion of the site on which they plan to build.
The city finished wading through that legal morass last year and conveyed all of the harbor property to TEDA at that time. TEDA has since inked a modified development agreement with Tower Harbor Shores, which calls for the construction of 12 townhomes on two of the three blocks platted for the project. THS may still build on the third block, but that development, should it move forward, will be subject to a second development agreement. TEDA officials have pushed for a mixed development on that block, with both commercial and residential space.
The developers say they have identified and been working closely with their primary contractor on the specifics of the construction and some design changes intended to both improve the look of the buildings while keeping costs as low as possible during a period of significant inflation and shortages of some building supplies. According to project manager Jeremy Schoenfelder, his team is now finalizing the selection of interior finishes, appliances, and fixtures in order to determine the final price tag for the townhomes. “The general contractor is bidding out everything to subs as we speak,” said Schoenfelder.
According to local project coordinator Orlyn Kringstad, the buildings will be built with structural insulated panels, a process that speeds construction and provides for a super-insulated final product. Kringstad, who served as Tower Mayor from 2019 until his resignation last year, has indicated he’s now an hourly employee of Tower Harbor Shores, rather than an investor. Kringstad divested himself of his original ownership stake in the project back in early 2019 to avoid a potential conflict of interest as mayor.
The developers’ letter of intent is brief, providing no information about the current status of interest in the townhomes or whether they have obtained financing for the project. The developers must still complete a homeowners’ association agreement and a common interest community (CIC) plat, although project manager Jeremy Schoenfelder said all of that is in the process of being completed.
The townhomes are expected to be available in two and three-bedroom configurations and all will overlook the city’s harbor. Buyers will also have the ability to lease an accompanying boat slip, although the details of how that will be made available have yet to be worked out. The harbor is directly connected to Lake Vermilion, via the East Two River channel.
Water and sewer connections for the first phase of the project, which will include six townhomes, were installed late last year as part of the city’s Pine Street reconstruction.
Under the timeline in the development agreement between THS and TEDA, construction on the first six units is supposed to get underway by Aug. 1, but Kringstad said the company hopes and expects to break ground sometime in July. Completion of the first six units is currently scheduled for June 1 of next year.
Meanwhile, the company will have until April 1, 2023 to provide notice of intent to proceed on the second block of six town homes, with construction slated to get underway on that second phase by July 1.