07-24-1997 - Laserfiche WebLink

Home Browse Search

Value 46 units @ $55,000/unit $2,530,000 Homestead Tax Classification x 1.0% $25,300 • Estimated Tax Rate x 1.37 Annual Taxes on 46 units $34,700 Payment-in-lieu of tax on 10 units $3,000 Total Tax (Estimated) $37,700 This property will thus be adding to the City's tax base, as the current tax base for these properties is $32,479.40/year. CONSISTENT WITH CONSULTANTS RECOMMENDATIONS After months of intensive study and numerous public meetings, the City's consultant, SRF Consulting Group, has recommended that these separate properties be incorporated into a unified project, and be developed as apartments and townhomes. This is precisely our proposal, and we believe (as do your consultants) that this is the highest and best use for this property. We also evaluated this property as a complete redevelopment opportunity (your consultants performed the same analysis), and came to the conclusion that it was economically infeasible to acquire and tear down the existing 40-unit property. The funding gap under such a scenario would be well in excess of $1,250,000. We believe that our development proposal offers the City the highest possible quality at the lowest possible cost to the City. PROPERTY MANAGEMENT Beyond providing quality property improvements, the key to maintaining quality over time is attentive, professional, on-site property management. Similar to Silver Lake Pointe Apartments, MSP will build an on-site management office so the property manager can conduct professional management operations from the property. Also key to the project's success is to hire a professional management company with experience in this particular property type. After evaluating several professional management companies, MSP has selected Danziesen Properties to manage this property. Danziesen has specific experience in managing turnaround properties. PROJECT TIMELINE 1.) City Resolution approving Holman Funding (April 1997) 2.) Loan Approval (July 1997) 3.) Plan Approval (July 1997) 4.) Land Purchase (September 1997) • 5.) Construction Start (October 1997) 6.) Construction Completion (June 1998) Under this proposal, the City's $195,000 investment spurs over $4,900,000 of investment in your community, and substantially upgrades an under-utilized property.