The City of Cokato, Minnesota is seeking proposals from qualified developers and builders for development of a high-quality multi family rental housing project in the City of Cokato. The City of Cokato has $280,000 of funding available as a 0% loan for a 5-10 year term to provide gap financing for an eligible development. The builder/developer will be responsible for the development, ownership, marketing, and operation of the rental housing project. The developer will be responsible for identifying a project site.
COMMUNITY
Cokato is a vibrant community located in Wright County. Cokato has a population of 2,799 according to the 2020 Census. Residents enjoy access to excellent medical, employment, educational and recreational opportunities. The community is ideally located along Highway 12 with access to many regional employment centers including the Twin Cities Area (45 minutes ), St. Cloud (45 minutes), and Hutchinson (25 minutes).
Cokato has:
x Numerous recreational opportunities to support a connected and active community including multiple parks, a 5 mile paved walking and biking trail that connects Cokato to Dassel, golf course, baseball diamonds, disc golf, ice rink and pool.
x A vibrant community festival and the Cokato Museum and Gust Akerlund Studio.
x A high-quality education system for learners of all ages with small class sizes.
x A health clinic.
x A strong, diverse economy and educated workforce with a low unemployment rate.
CITY GOALS FOR PROJECT
x Develop new rental housing opportunities that will attract and satisfy market demand for quality housing while enhancing the existing neighborhood.
x Promote quality housing types with architectural appeal that complements the nature and character of the neighborhood.
x Development that expands the City's property tax base, provides a market rate return on land, and minimizes the City's risk and exposure pursuant to any aspect of the development proposal.
PROJECT SCOPE
BACKGROUND
The City of Cokato created a Local Housing Trust Fund in 2025. As part of that effort, we submitted an application to Minnesota Housing for matching funds and received a funding award. The City is looking to partner with an experienced developer to provide $280,000 of project funding to a multi family development. The targeted goal of the project is to create between 4-8 new rental units. Respondents will receive additional points if they propose more units than the minimum 4-8 unit requirement. The project design is flexible so respondents should clearly articulate the type of product (twinhomes, townhomes, multi unit buildings, etc) they are experienced in developing and/or would proposed for the community. Projects must agree to income guidelines at 115% of state median income. Current income limits are $136,735.
The City of Cokato does not own any land for the proposed project. The developer's role will be to evaluate land opportunities and work collaboratively with the City to find a suitable site for the proposed project. The developer will be responsible for ensuring the site is suitable for development and all other due diligence items in securing the land and developing the project. The role of the City will be to provide gap financing to the development project.
ZONING
A City zoning map is attached to this RFP. Information on planning and zoning requirements for the City of Cokato can be found on the City website.
LAND PRICE
x The Developer will be responsible for negotiating the sale price for the land. Developers should ensure that the land price and total development costs for the project are feasible.
x Developers can assume that $280,000 will be provided to the selected developer as a 0% loan for a 5-10 year term to be negotiated with the City.
x The City of Cokato, at its sole discretion, will select a "preferred developer" and initiate negotiations to enter into a Developer's Agreement. Additional performance and development terms will be negotiated within the Developer's Agreement.
INCENTIVES
x The City of Cokato will provide project financing in the amount of $280,000 at a rate of 0% for a 5-10 year term. The funds will be forgiven if the Developer completes the requirements of the Development Agreement and continues to rent the units to households earning 115% of state median income.
PROJECT TIMELINES
The Request for Proposals will be released on November 10, 2026. Proposals are due no later than December 21, 2026 at 5:00 p.m. The City of Cokato will select a developer/builder at the January 11, 2027 Council meeting. Developers are expected to start the project construction no later than September 1, 2027.
The City of Cokato reserves the right to change any dates. The City of Cokato also reserves the right to reject any and all proposals and to advertise for new proposals.
QUESTIONS
All questions regarding this proposal should be submitted to Brad Potter, City Administrator at bpotter@cokato.mn.us or (320) 286-5505.
PROPOSAL REQUIREMENTS
Paper proposals are preferred, and all submittals must be clearly marked: "Multi Family Developer Proposal". Paper proposals must be submitted to:
City of Cokato
255 South Broadway Ave, PO Box 1030
Cokato MN 55321
Attn: Brad Potter
If respondents are unable to submit a paper proposal, digital proposals are also accepted via email to bpotter@cokato.mn.us. Respondents must submit digital proposals as a pdf. The City is not responsible for proposals that are not able to be opened or too large for electronic submittal.
The City of Cokato will require each proposal to outline all the elements to be included in the project and provide the following minimum information:
Contact Information
Include the name of the company, address, contact person, email, and phone numbers. Additional information may include project general contractor, subcontractors, construction lender and any other consultants the Developer traditionally works with on a project.
Project Information
The Developer shall provide a project narrative describing the proposed development concept including proposed housing type and number of units. As applicable, the proposal should also include supplemental information, such as target demographic, total estimated market value of the improvements, proposed ownership, sample price points and a description of possible marketing strategies. The City of Cokato acknowledges that some of these assumptions will be dependent on the size of land secured and what is feasible based on site selection.
Project Drawings
If available, Developers should provide a sample concept plan of the building(s) based on projects that have developed in other communities to give the City a sense of the Developer's preferred project design. Developers can also include scaled site plans from other developments.
Financing Information
A sample statement of financial commitment noting the project costs. Developers can use proformas from recently developed projects. The City acknowledges these numbers will change once a site is selected and a final project design is determined. Developers will be required to submit an updated project proforma once a site is selected.
Experience and References
Include examples of previous development projects completed. Please include references from one area lender and one previous customer.
Timeline
A construction schedule that includes a timeline of improvements must be provided.
EVALUATION CRITERIA
The following criteria will be used by the City of Cokato in evaluating project proposals:
1. Design - project designs that are appealing and feasible based on the project funding guidelines. Respondents will receive additional points if they propose more units than outlined in the RFP.
2. Developer Experience- developer/builders experience with similar projects.
3. Developer Capacity - timelines proposed by the developer/builder to complete the project.