01-23-2002 Council Workshop Minutes

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MINUTES CITY COUNCIL JANUARY 23, 2002 parking for the senior housing. The proposal also includes an assisted living facility on the property to the east, which would be owned by Common Bond, as well as the potential for-sale townhomes, or additional retail development on property to the south. Johnson indicated that the financing they could obtain would not be as competitive as what the City has available to it. He reported that their proposal contemplates excess TIF revenues from the Presbyterian Homes project. Johnson indicated that they would work with the City on the facade for the project. Johnson reviewed estimated development costs and indicated that they would categorize the development at a B+ or A rating. Scalze asked about rental rates for the senior units. Johnson reported that they are projecting 16 one-bedroom units at a rate of $667 per month, 24 one-bedroom units plus den at $900 per month, and 40 two-bedroom units at $1,050 per month. Johnson pointed out that 20% of the units would be affordable. Johnson indicated that they are contemplating the use of a Housing district for the senior housing, and one of the requirements is for 20% of the units to meet affordable housing standards. Carson asked about the financing that would be used. Johnson reported that they would likely use an FHA insured loan. He also indicated that August 1 s` the State Bond Pool opens and they would try to obtain financing under that program. Common Bond would utilize 501 C.3 bonds for the assisted living component. Johnson also reported that they would be willing to work with the City on a turn-key basis if the City decides to develop the project. Roycraft asked if there has been any interest in the retail component. Johnson indicated that The Venetian Inn is interested in a portion of the retail. They also have a bank that is interested. Johnson showed a concept drawing of what the building would look like, and indicated that it would be important to tie the facade into any building that is developed on the property to the north. Carson asked if there would be retailers with front and back doors. Johnson indicated that a single retail unit may not go through the entire depth of the building. There maybe retailers on the front abutting Rice Street, and other retailers facing the interior of the site. However, they would be flexible depending on the preferences of the retailers. LaValle stated that it would be preferable not to have the backdoors of retail businesses facing the street side. Carson pointed out the $350,000 development fee noted in the proposal submitted. Johnson indicated that the development fee was not that much.