New Programs to House Rural Residents Closer to Jobs

Greg Aamot explores case studies from Minnesota of a conundrum that troubles many rural communities: how to house daytime workforces near their jobs, with the benefits in sales and property tax revenue that results.

2 minute read

April 4, 2015, 11:00 AM PDT

By James Brasuell @CasualBrasuell


Greg Aamot starts the story with the example of the AGCO manufacturing plant in Jackson, Minnesota, where the number of workers equals a third of the town's population. Yet, a quarter of the plant's employees live more than 30 miles away from their jobs.

"The result is untapped potential for the city, which would like the stronger tax base that more residents provide, and latent worries for AGCO, which needs the workers to keep up with demand for its machines," writes Aamot.

Aamot notes that the situation is common in rural parts of Minnesota and the rest of the country. Also of note, however, is ACGO's response to the situation. According to Aamot, "AGCO has partnered with the city and two regional housing agencies on a plan to build 48 townhouse units on seven acres of land near the industrial park that is dominated by the manufacturer’s sprawling campus."

"The company, which has 1,100 workers, has invested $220,000 in the $7 million project. The city donated the land and a state agency provided much of the financing while a regional nonprofit housing group will own the buildings."

Aamot goes on to cite the example of other companies and towns in Minnesota undertaking similar efforts. Aamot notes that the cause has new support from the state Legisltaure, where lawmakers have proposed a bill that would "provide $50 million for work-force housing" through grants and investor tax credits.

Friday, March 27, 2015 in MinnPost

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