Long-awaited Phase 2 of Birchwood Apartments rehabilitation ready to begin
Residents of the Birchwood Apartments have been waiting years for repairs and remodels within the two-building apartment complex to be completed. According to Dakota Sol, a housing development manager for OneRoof Community Housing, the rehabilitation project should be completed this year.
Sol told WTIP that in 2024, phase one of a major rehabilitation project was completed. He described it as a “stabilization phase,” and focussed on replacing faulty pipes throughout the buildings, and gutting several units that were deemed uninhabitable due to water damage. The second phase will include renovations of all of the remaining units, plus replacing failing and outdated infrastructure. That phase was planned originally for spring of 2025.
Last July, Sol told WTIP about the delays that were plaguing the second phase of the renovation. He said that in the first half of the year, budget cuts at the federal level meant a slow-down in the administration of some funding programs, including the U.S. Department of Agriculture Rural Development program, which had awarded the project $1.2 million the previous year.
Delays in accessing federal funding pushed the construction timeline back. Sol told WTIP recently that as OneRoof was able to make progress on the funding side, the federal government shut down, once again stopping any momentum.
In mid-December, OneRoof was finally able to complete the administrative steps required before phase two could begin. This included transferring ownership of the property to a partnership in which OneRoof is the managing partner, with a silent partner in the form of an investment fund. The investment fund brings access to a Low Income Housing Tax Credit through Minnesota Housing.
With all of the paperwork complete, Sol said that the plan is to resume work in March. The work on the buildings will be done by Frerichs Construction, a contractor specializing in occupied rehabilitations. OneRoof also contracted with Frerichs for the first phase of the rehabilitation.
Sol said he plans to be on-site regularly during this phase of the project. While he is normally based in Duluth, he said he will be in Grand Marais every month to meet with the contractor, architect, and representatives from Minnesota Housing, USDA Rural Development, and the silent investor. “We’ll all be there making sure the work is happening how it should, and making sure we’re staying on track to getting it done and getting it done right,” he said.
For current Birchwood residents, Sol said that he will be holding a meeting later in March to ensure that they know what to expect as rehab work turns to the inhabited apartments.
WTIP’s Kirsten Wisniewski spoke with Housing Development Manager Dakota Sol. Audio of that interview is below.
Kirsten Wisniewski March 2, 2026
