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91 _ said you* could draw a. circle around a five mile radius and <br /> 1. 2. find almost all who bought into either-- of those <br /> projects had;. <br /> 3 come from Northeast Minneapolis, . St. Anthony, New Brighton, ,. <br /> 4 Fridley, or Columbia Heights .and not many from Richfield or <br /> 5 Edina; <br /> 6 Mr . Hamel showed photos of. similar buildings and said one of <br /> 7 these was 196 unit project of market rate housing in Coon <br /> 8 Rapids which was a tax increment development with over 60% <br /> 9 occupancy of what could be considered "mature adults" ; <br /> 10 said a lot of his firm' s housing units are .developing an <br /> 11 older clientele and in ' the last four or five years the .-climate <br /> 12 had dramatically changed in that direction. <br /> 13 Construction Costs <br /> 14 final unit cost of about $4-4 , 500 permit with land,. etc. -- <br /> 15 Rents <br /> 16 Would average $535 for one bedroom; $635 for two bedroom; <br /> 17 Mr. Hamel acknowledged that was higher than what' s currently <br /> 18 charged in St. Anthony with high $300 ' s for one bedroom units <br /> •19 and about $450 -for two bedroom; <br /> 20 pointed out that there are no similar rentals in .St. Anthony <br /> 21 and said believed if marketed properly and extensively, rents <br /> 22 of that level would be both feasible and achievable. <br /> 23 Timetable <br /> 24 Mr. Hamel said he understood from Mr. . Childs that the . land <br /> 25 would probably not be available this fall but would start <br /> 26 construction as soon as it was available; <br /> 27 would like to start and go to the market for financing as soon <br /> 28 as possible because not sure what long term interest rates <br /> 29 might do; <br /> 30 existing pro forma is based on 8-1/2a per a ten year issuance <br /> 31 and, if interest rates go up, rentals would have to be raised <br /> 32 to the point where viability of the. project might be put in- , <br /> 33 question; <br /> 34 there might be a gap of two months between the . start of the <br /> 35 two buildings construction; <br /> 36 Mr. Hamel told Counci-lmember Ranallo it might be possible by <br /> 37 having firewall separation to. continue carpentry. .and thus <br /> •38 phase the occupancy of the building; <br /> 11 <br />