The North Shore Flats groundbreaking took place on Wednesday, August 5, in Two Harbors, marking the official start of construction on a major new workforce housing development along the North Shore.
The project features a 75-unit market-rate workforce housing apartment development designed specifically to provide affordable and market-rate housing options for local workers, families, and community members. It will offer studio, one- and two-bedroom apartments with heated garage parking, in-unit laundry, elevator access, and a state-of-the-art gym over the three-floor complex.
IRRR Director of Community Development Whitney Ridlon attended the ceremony, which also featured remarks by IRRR Advisory Board Member State Rep. Roger Skraba. Local leaders emphasized at the ceremony that housing shortages have been a significant barrier to local economic growth and workforce retention.
The North Shore Flats project is estimated to cost $17.5 million and will be built by Vision, Inc. of Superior, WI. For funding, it relies on a layered package of city, county, and state public assistance alongside private equity and construction loans.
The Department of Iron Range Resources & Rehabilitation (IRRR) is supporting the project with an $850,000 Housing grant to the Lake County Housing & Redevelopment Authority (LCHRA). Other project partners included the city of Two Harbors, Lake County, Lake Superior Independent School District No. 381, and the private developer, Vision Inc.
Two Harbors, Lake County, and ISD 381 partnered to provide Tax Abatement Financing, and the city conveyed the land to Vision Inc. for $1. The county and HRA boards also approved $1 million in Lake County Housing Trust Funds, along with an additional $150,000 from the LCHRA. Vision Inc.
Vision Inc. has developed housing in Hermantown, Grand Marais and Superior. The company owns 750 housing units and has helped build about 2,000 units.
In Cook and Lake counties, Housing and Redevelopment Authorities (HRAs) and Economic Development Authorities (EDAs) define “workforce housing” through a distinct local lens that sets it apart from traditional subsidized low-income housing. In the North Shore local government context, the phrase “workforce housing” refers to housing that is affordable and accessible to year-round, middle-income workers who earn too much to qualify for traditional low-income subsidies, but not enough to afford market-rate homes or local rent prices.
A critical distinction in local HRA/EDA policy is that workforce housing projects receiving public aid like North Shore Flats must remain long-term, year-round residential rentals or owner-occupied primary residences. They strictly prohibit conversion into seasonal vacation rentals or short-term lodging.
Construction of North Shore Flats is scheduled for completion in late summer or early fall next year, roughly 12 to 14 months after the August 2026 groundbreaking.
