HRA MINUTES 08251987 - Laserfiche WebLink

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•1 said you could draw a circle around a five mile radius and 2 find almost all who bought into either of those projects had 3 come from Northeast Minneapolis, St. Anthony, New Brighton, 4 Fridley, or Columbia Heights and not many from Richfield or 5 Edina; 6 Mr. Hamel showed photos of similar buildings and said one of 7 these was 196 unit project of market rate housing in Coon 8 Rapids which was a tax increment development with over 60% 9 occupancy of what could be considered "mature adults"; 10 said a lot of his firm's housing units are developing an 11 older clientele and in the last four or five years the climate 12 had dramatically changed in that direction. 13 Construction Costs 14 final unit cost of about $44,500 permit with land, etc. 15 Rents 16 Would average $535 for one bedroom; $635 for two bedroom; 17 Mr. Hamel acknowledged that was higher than what's currently 18 charged in St. Anthony with high $300's for one bedroom units •19 and about $450 for two bedroom; 20 pointed out that there are no similar rentals in St. Anthony 21 and said believed if marketed properly and extensively, rents 22 of that level would be both feasible and achievable. 23 Timetable 24 Mr. Hamel said he understood from Mr. Childs that the land 25 would probably not be available this fall but would start 26 construction as soon as it was available; 27 would like to start and go to the market for financing as soon 28 as possible because not sure what long term interest rates 29 might do; 30 existing pro forma is based on 8-1/2$ per a ten year issuance 31 and, if interest rates go up, rentals would have to be raised 32 to the point where viability of the project might be put in 33 question; 34 there might be a gap of two months between the start of the 35 two buildings construction; 36 Mr. Hamel told Councilmember Ranallo it might be possible by 37 having firewall separation to continue carpentry and thus • 38 phase the occupancy of the building; 11