01-23-2002 Council Workshop Minutes

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MINUTES CITY COUNCIL JANUARY 23, 2002 retail is in the front of the building facing ,Rice and Little Canada Road. The senior housing component is three stories over the retail and faces the back. Kjersten reported that they have approximately 50% of the retail space pre-leased. Of that amount, half is true retail and the other half is service office space such as doctor or dental offices. Rents are anticipated to be in the $12 to $l4 per square foot range. Fahey asked about the financials. Kjersten reported that they would anticipate the City donating the land to the project, and indicated that in order for the numbers to work, the property must be appraised at $7.25 per square foot. He also anticipated that the senior rental units would lease for $1,000 to $1,100 per month. Investors in the project are looking fora 12% rate of return. Kjersten anticipated that property taxes would be approximately $225,000 per square foot, and they would be looking for approximately half that amount in TIF assistance. Numbers could change depending on the design elements for the project. Anderson asked about the senior units. Kjersten reported that units would be either 1 bedroom with a den or 2 bedroom units. There would be underground parking provided for the senior units. The City Administrator asked about the retail incubator concept outlined in the proposal Kjersten reported that this would involve local retails that do not have a lot of experience. The concept involves a build out of retail space for these retailers or a loan to get their businesses up and running. The concept would involve local retailers with City participation to get them into nicer spade and assist in getting these businesses off the ground. Scalze pointed out that there is no concept proposed for a second phase. Kjersten indicated that they would prefer to start with the retail/senior project. Scalze asked about giving preference to Little Canada residents and family members for the senior housing. Kjersten indicated that perhaps the City could provide subsidies for Little Canada residents to make up any financial gaps if TIF assistance doesn't work. Kjersten also indicated that they would anticipate being long-term owners of the project. Roycraft asked when construction would begin. Kjersten anticipated that construction could start in the fall and would take between 14 and 16 months. He also anticipated a 9-month lease up for the apartment units. Cormcil thanked Beacon Construction for their presentation. DOMINIUM Wally Johnson, representing Dominium, Sherman Rutzick, and Canmon GROUP 'Bond, appeared before the Council to present their concept for an 80-unit senior housing complex with 25,000 square feet of retail space. He noted that the senior housing would consist of three stories over the retail. There would be underground