HRA MINUTES 08251987 - Laserfiche WebLink

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• 1 Who Would Do Construction? 2 Mr. Hamel said Gaughan has own construction superintendents, 3 estimators and support staff as well as general labor, but not 4 own crews, which is subbed out; 5 has full and part time staff of about 190 people of whom 35 6 full time do nothing but construction and management. 7 Councilmember Makowske asked Mr. Hamel how he felt about this 8 project. He responded by saying he considered it to be a good 9 project for Gaughan because their major activity is in the 10 northern suburbs where they do well and this project should fit in 11 well with other developments in their portfolio for the region. 12 The Gaughan executive indicated his firm had been too involved in 13 the Columbia Heights project in 1980 to seriously consider this 14 project at that time; added that, after reading the 1980 feasibil- 15 ity study, wouldn't have wanted to do the 495 units of condominiums 16 for the project at that time, but Pat Gaughan now feels he can fill 17 100 units of senior housing and 100 units of non -senior rental over 18 a reasonable marketing period. 19 Mr. Hamel pointed to the LaBelle Park 248 unit condominium project 20 close by in Columbia Heights as an example of a type of project 21 which he thought would be very similar to the Kenzie Terrace •22 project and one which had been very successful. 23 H.R.A. MAKES TOUGH CHOICE BETWEEN TWO EXCELLENT PROPOSALS 24 After Mr. Hamel had gone, Mr. Krier told the H.R.A. members he had 25 met at least three times with all the developers who had submitted 26 proposals for the project and at each meeting had requested they 27 update their proposals to meet H.R.A. requirements for brick 28 exteriors. He also said all developers had been alerted to the 29 part they would have to play in working with the neighbors adjacent 30 to the project. 31 He distributed the responses he had gotten from Sherman-Boosalis 32 and said the Walker -Stuart - Kraus -Anderson group proposal had been 33 for two, 4 story, 80 unit residential buildings which would be 70% 34 wood and fully sprinkled. He said they had offered to pay nothing 35 for the land and estimated would be paying $215,000 a year in 36 taxes. They would provide a $360,000 Letter of Credit but each 37 company would be responsible for their own project; Walker for the 38 senior; Stuart for the market rate; and K -A for the commercial; 39 and, if one failed, all would not necessarily have to fail. 40 Comments from H.R.A. and staff: • 14