BEMIDJI — A new housing project is coming to Bemidji, one that promises to provide a vibrant lifestyle and a way for residents 55 years and older to stay in their communities as they age.
Gracewin Cooperatives was recently given planning approval for a 41-unit senior living cooperative, which the company hopes will bring a model of living to Bemidji that combines the benefits of home ownership and a close-knit community with a maintenance-free lifestyle.
While senior living cooperatives are common in metropolitan areas like the Twin Cities, Gracewin shared its commitment to providing the same opportunities to aging populations in greater Minnesota. It’s already opened one senior cooperative in Baxter, Minn., and is in the process of opening a second in Northfield, Minn.
“We’re excited. This type of housing is unique, and it’s something that’s been reserved mainly for people living in the cities,” explained Lisa Anteau, Gracewin’s head of sales and marketing. “It’s a really great model where seniors can come together and have a good, safe place to live as they age.”
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The three-story senior living cooperative will be built in the southern part of the city, not far from the shores of Lake Irving, and will feature a wide range of amenities including heated underground parking, a community room, an outdoor patio and even a wood shop.
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And, just like owning a home, living in a cooperative provides similar security and benefits, according to Nate Anderson, Gracewin’s director of operations.
“Just like a home purchase, you’ll gain equity as you live there, at a 1, 2, even up to a 3% rate in a limited equity model,” Anderson said. “It’s a safe way to invest your money.”
Anteau explained that residents purchase a share in the cooperative that’s considered personal property, not real estate. It gives them exclusive rights to their own unit and community ownership for the rest of the building.
“A key part about cooperatives is they are 100% owned by the members who buy into them,” she shared. “(Residents) reside in their units, and they have exclusive rights for that, but they are a part owner in the building: every stick of furniture, every plate, will be owned by our members.”
For Anteau and Anderson, this arrangement provides residents with security and an investment in their community, something that they explained is integral to cooperative living.
“It’s about building a community,” Anteau said. “It’s very easy to step outside your door and have coffee with your neighbors or enjoy the amenities. It’s designed for that.”
During development, Anteau explained that garnering community interest is critical. With its current project in Bemidji, Gracewin hopes to get 50% of its occupancy committed before it breaks ground.
Madelyn Haasken / Bemidji Pioneer
The process for committing to a cooperative involves a $500 reservation deposit, which is fully refundable at any time and comes with an assigned priority number. The number determines the order of unit selection and later the order of notification when a unit becomes available.
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“Once you’re at the top of the list, essentially anytime anything opens in the cooperative you’re notified and you have the option to buy that unit,” Anteau said. “People can say ‘I’m not ready to move in, I want to stay on the lake another few years,’ (but) the critical thing is just getting in line early.”
Easing the housing strain
Anderson explained that a senior living cooperative isn’t just designed to benefit its residents, but the broader community as well.
It does this in part by providing a way for aging citizens to stay near where they live, but also by opening up housing as residents move into the building.
“As you have people start to commit to living in a cooperative, that opens up homes throughout the (housing) spectrum,” he shared.
If someone living in an expensive lakeside property decides to move into the cooperative, their home can enter the market and become available for someone living in a more moderate house to purchase, and so on down the line.
“It’s a chain reaction, all the way down to apartments,” Anderson said. “Maybe there’s somebody who’s only rented that now has the chance to purchase a starter home and begin their ownership journey.”
Living cooperatives are also designed to remain affordable, while still accruing value for their owners, through the use of the limited equity model.
Rather than the large jumps in value possible in real estate, the steady growth used by cooperatives keeps them from becoming unaffordable to new buyers. This also helps keep demand high, making the model sustainable for decades.
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“Cooperatives have been around since the late 1970s,” Anteau shared. “The very first senior living cooperative was developed in Minnesota, and it’s still vibrant and thriving.”
More information about Gracewin Cooperatives, and its project in Bemidji, can be found at its website gracewinliving.com .
