10-24-2001 Council Agenda - Laserfiche WebLink

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MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaVaile Matt Anderson Rick Montour 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 766 -4029 / FAX: (651) 766 -4048 Joel R. Hanson www. ci.little- canada. mn. us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: October 19, 2001 RE: Senior Housing Market Analysis As part of the evaluation of the feasibility of a senior housing project for the Venetian property, a senior housing market analysis is necessary. This will help us determine the market potential for this type of project including the number of units and rent ranges. This study is also important for bond underwriting needed for financing the project should it move forward. Maxfield Research, Inc. is the preeminent authority in the Twin Cities area for this type of study. I have contacted them about the cost to undertake this evaluation. A full -scale study would run between $7,500 and $8,000. (This would be needed for bond underwriting.) However, they could not complete this within our decision timeline relative to the Venetian property. A preliminary study could be done by November 1s`, and would run between $2,500 and $2,800. This study will give us a demand assessment (strength of market), demographic and economic date, a ballpark as to the number of units supportable with a rental range. Again, this will not be final study material, but it should give us enough information to ensure we are headed in the right direction. Another benefit of the preliminary study is if we proceed with a complete study within 90 days or so, the price would be applied against $7,500 to $8,000 cost. A proposal for this work will be here on Monday. It is my recommendation that we proceed with the preliminary study. cc: Joe Vitale Rusty Fifield Page 32