ABOVE: A rendering of what Fairmont Shop Condos will look like.

FAIRMONT– Earlier this week, the Fairmont City Council approved the preliminary and final plat and a Planned Unit Development (PUD) for Midwest Shop Condos, LLC, which plans to purchase the new parcel and construct industrial condos at the Fairmont Industrial Park.

The plat would extend South Armstrong Drive south through the parcel and create a new lot in the east of the parcel.

At the city council meeting on Monday, Planner and Zoning Official, Peter Bode, said that the Planning Commission held a required public hearing on the topic on June 6 and that the commission recommended approval with some conditions, including that a development agreement be entered into with the city.

“This is a new type of development for Fairmont, but luckily our code already supports something like this,” Bode said on Monday.

Daniel Sprague of Madison Lake is behind Midwest Shop Condos, LLC. The group bought 13 acres in Fairmont Industrial Park from Fairmont Growth Opportunities and will be bringing Fairmont Shop Condos to the market.

“What we describe ourself as is what affordable housing is to residential, we are affordable ways for commercial tenants to be able to purchase a spot to base their business in,” Sprague said.

Typically the buildings are 60 ft. deep by 160 ft. wide and split into five units so each unit is 60 ft. deep by 32 ft. wide.

Each unit will have 14 ft. by 14 ft. garage doors along with a service door and window. They’ll also have full utilities and will have plumbing for water and sewer for bathrooms. There will also be a paved, private drive off of a city street.

“You can fully function and run a commercial business out of them. You’re able to purchase it. You own the dirt underneath it and the building. You can run anything out of there that you can in the industrial I1 zoning in Fairmont,” Sprague said.

The space would work well for electricians, plumbers and smaller contractors but it can also be a solution for commercial storage or storing boats or RVs.

“It’s a storage solution someone can actually purchase instead of rent,” Sprague said.

He said the whole idea is affordable ownership of commercial property. While it would be a good option for a start-up company, Sprague said there is no limit and that it could also work well for a well-established business that is in need of another 2,000 sq.ft. of storage.

While the units are being marketed for purchase, they’re negotiable for rent. However Sprague said one of the things that sets them apart is that they are specifically marketing for purchase because many similar concepts are only for rent.

“You have the ability to grow, you own it and can sell it just like a single family home,” Sprague said.

Part of the ownership group has built some units in Iowa, but this is the first for this area.

As for how the group came to choose Fairmont as a site, Sprague said they traveled all over the region and found Fairmont’s city staff very open to working with them.

“The two biggest factors for us coming to Fairmont was the EDA and city staff being very helpful and also the fact that we come from Mankato/Madison Lake, we felt very comfortable coming to Fairmont. It feels like the same kind of community we’re from,” Sprague said.

He also said he thinks there are individuals and businesses that could benefit from an option like this.

“In the past five years they’ve been becoming more popular in larger towns… I think everywhere– just like everywhere you need affordable housing for residential– I think there are plenty of people in spaces that want to organically grow but there’s no affordable place to do it,” Sprague said.

He said they hope to build out in two phases, which will include 10 to 12 unit. Sprague said they plan to break ground in the next month and have the units ready before snow falls this year. They will also be using local contractors for construction of the units.

The next step is for city staff and Midwest Shop Condos LLC to enter into a development agreement, which will go back to the city council for approval at a later date.