CEO Group invests in local housing
DULUTH, Minn. – A new housing development in West Duluth is almost move-in ready.
The housing shortage is not unique to Duluth and is nothing new, but some business leaders want to push for development. Northland Housing Partners is a nonprofit organization founded by the CEOs of several local companies, including Essentia Health and Maurices, that invests in financing developers to complete housing projects in the region. Riverwest, located directly across from the base of Spirit Mountain, is the initiative’s first investment, which they hope will set an example for other investors.
Dr. David Herman, CEO of Essentia Health, said: He said the group’s investment is expected to attract development investment from other companies. “Once the money we loaned is paid back, we lend that money back to other investors to keep this flywheel moving,” he said.
The model has attracted the attention of leaders outside of Duluth, including Paul Pelletier, executive director of the Local Government and School Range Association. Pelletier said a limiting factor to the growth of communities in this range is limited housing. “One of the similarities between the Iron Range and the Duluth region is that we need housing to attract and retain talent,” Pelletier said. “What they (Northland Housing Partners) are doing is looking for creative solutions” that have never been done before. We want to see if we can port this proof of concept to other parts of the state. ”
