Duluth City Council Approves TIF for Housing and Daycare Project

The Duluth City Council voted to approve tax increment funding for a new senior affordable housing and childcare project on Tuesday.

The city council voted unanimously to approve the measure to support the soon to be built Brae View housing complex. The new building will be located near the old Essentia campus on the corner of 5th Avenue and 5th Street. The project is being done through a partnership with Essentia Health and the Benedictine Sisters of St. Scholastica Monastery.

The project in the Central Hillside neighborhood would include 72 affordable housing units for seniors on the top three floors as well as daycare space for up to 100 children on the ground floor. The daycare portion of the building would be run by the YMCA as an early childhood learning center.

According to a Northern News Now report, the project is being completed by One Roof Community Housing. City officials say affordable housing and childcare are two of the most complex issues facing the City of Duluth right now, so the opportunity to add support in both areas with one project is an important boost. Members of the Duluth Child Care Task Force say the city needs over 1,000 new childcare spaces to keep up with demand.

The TIF funds can only be used for community improvement projects, and the funding will be used to assist with the operating costs of the building. Officials expect construction on the project to be completed in the second half of 2026 and cost over $30 million.