CC WORKSESSION 03182008 - Laserfiche WebLink

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City of St. Anth Senior Cooperativ Pros Cons Don't approve amended concept and developer will default Work with developer to continue partnership. To date, since they can't obtain financing to construct condominiums developer has worked hard to ensure the redevelopment due to the current state of the market. Land will remain that was envisioned by the Council was implemented. vacant and undeveloped for next several years since no other developer is likely to step in and construct condominiums due to market conditions. Senior Cooperative units were envisioned in the Intial plan as part of Phase IL Since this portion of the land in Phase City doesn't have as many condominiums as originally II will not be purchased, the City has the opporutnity to still planned. provide this housing as originally envisioned. Still an owner occupied solution (most cities are looking at having to convert projects to rental or developer is walking away from development) Less units than originally projected (100+ vs 128) and Finalize Phase I development and bring on 100+ units to assist in strengthening commercial development (more possibly lower property valuation. retail users). Get development of all units sooner (previous plan only had 64 units starting in 2008 and the remainder in 2009) Provide another housing option in the City (don't have Valuation may not be as high ($30.7M vs $22.5M or $8.2M concentration of all condos) to provide more stability and less) which equates to less tax base over time (based upon flexibility with changing markets over time (this type of original estimated value of $240,000 /unit for condos and housing was outlined for development in phase II). now only $225,000 /unit for Cooperative units). Can require remaining special assessments for 39th Assessments don't have to be paid until Certificate of Avenue construction be paid at time of approval of Occupancy (CO) is received for 1st occupant per each contract ($162,500). building (not paid tii 2009 and later) Can negotiate other changes in contract in favor of City. Wouldn't need to renegotiate contract. Continue to provide senior housing product that allows current residents to move out of their homes into this Condos provided the same opportunity. housing product, thus opening up opportunities for families to move in. Owner of this type of unit is limited to level of return on investment when "selling" unit (2 1/2% of what you put down and simple interest), but keeps product "affordable" In condominiums, the owner gets upside equal to where to seniors. Also, seniors have help with resale due to market is at, at the time of sale (possiblity of more "upside" waiting list from demand for product type and don't have to dollar wise). pay realtors fees or any closing costs (just buying shares, like stock certificate). Product is something the market desires (cooperatives are Need to have 60% of units presold before construction can still selling in the metro area and unlike most condominium start. developments). With HUD financing, individuals don't have to go out and Required to put 30% down on unit, whereas in other secure separate mortgage financing in a challenging ownership amount of downpayment may not be dictated or market or inability to secure mortgage due to to being this high. retired.