Bemidji City Council OKs Use of ‘TIF’ Funding for Red Pine Estates Project

Red Pine Estates in Bemidji, an affordable housing unit, has been empty since the notice to vacate order was given to the owners, the Schuett Companies, in June of 2023 due to structural concerns. On Monday, the Bemidji City Council discussed the use of tax increment financing (TIF) to demolish the old building and develop another affordable housing unit.

The ones who asked the council for this? The Schuett Companies.

The Bemidji City Council unanimously approved the use of TIF for the demolition of Red Pine Estates and the construction of a subsidized rental housing project to be built in the same place. The Schuett Companies want to tear down the old 50-unit building and rebuild two separate buildings with a planned 96 units. There were concerns from council members, however, due to the rough shape the Red Pine Estates building developed into, forcing every resident to vacate the property.

“The quality of construction is so poor that there is no foundational place to start from to rebuild and just slightly improve,” said Lynn Eaton, Ward 5 Councilor, at Monday’s meeting.

Not only were council members concerned with the building itself, but some had questions for the property owner about future assurances.

“We can tear this down, we can build a new one, but what assurances can you offer us that we’re not – some other council is not going to be sitting here 26 years from now and having the same conversation?” asked Bemidji Mayor Jorge Prince.

Ward 2 Councilor Josh Peterson also had concerns about the project, due to a personal connection he has with the old property.

“My grandmother lived there for a decade,” said Peterson. “In her 10 years living there, the ceiling in her apartment flooded twice. And within those two times that that happened, she was on the first floor. We would sit in her living room and we could literally see the floor move when people were walking upstairs. What reassurances can you give me and the community to know that this building will be inspected and maintained to standards so that nothing like this never happens again?”

Tom Schuett, President and CEO of Schuett Companies, assured the council he did everything he could for the old building, and promises to do the same for the new one.

“I did everything we could in the short period of time that we were given to deal with this crisis,” offered Schuett. “I’m committed to the city, I acted honorably. I didn’t do a lot of the things that you may have heard that I did, and I’ve been advised not to talk about that. And I’m here to tell you, we did everything that we could, given the circumstances. Would I do it differently? I can’t answer that.”

Mayor Prince, however, wasn’t fully confident in that response.

“There were a number of elderly, disabled, very scared and frightened people that were impacted when all of this happened,” Prince replied. “So I’m curious to know from you, if you believe as a landlord in that crisis, you did everything that you needed to do to be a good landlord.”

Because of the housing crisis that has plagued the city of Bemidji for some time, though, council members felt something had to be done.

“If I didn’t support a resolution, that would be ludicrous. We need housing,” said Bemidji At-Large Councilor Audrey Thayer.

But members of the community who helped those involved in the vacancy process weren’t too happy with the decision that was made.

“You have one council member and one mayor that really cares about these residents, about the community, and wants to do better,” stated Lisa Papp-Richards, who helped Red Pine residents vacate last year. “The other five could really care less because they weren’t asking the hard questions. That’s not acceptable, because what happens if he builds again and the same thing happens? What are you going to do then? You really trust somebody like that?”

A public hearing will be held later to decide what TIF will be used to fund this project, as well as to hear from the community about their thoughts on the proposal.