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HomeMy WebLinkAbout6.b. Low Income Senior Housing Update � S CITY OF ROSEMOUNT EXECUTIVE SiTNIlKARY FOR ACTION PORT AUTHORITY MEETING DATE: MARCH 2 , 1994 AGENDA ITEM: LOW INCOME SENIOR HOUSING UPDATE AGENDA SECTION: CONSULTANT/STAFF REPORTS PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 6 . B. ATTACHI�lENTS: CORRESPONDENCE FROM BILL BRYANT AP OVE . � AT NEW AMERICAN NEIGHBORHOODS, MILLER MEMO ��, Please see attached memo. RECOIrIl�2ENDED ACTION: Discussion item only. PORT AIITHORITY ACTION: < < MEMO TO: Chair Carroll Commissioners Anderson, Busho, Edwards, McMenomy, Staats, Wippermann FROM: John Miller, Economic Development Coordinator DATE: February 24, 1994 RE: New American Neighborhoods' Proposal A second developer of low income senior housing has visited city hall. Bill Bryant from New American Neighborhoods has indicated an interest in building a 48 unit facility with the prefened site being on six acres of land owned by the Carlson family and overlooking Wachter pond. New American Neighborhoods, like Cottages Inc., has stated the only city assistance required in the creation of a housing development district for pay-as-you-go t� increment fmancing. Mr. Bryant has requested to be on the March 2 agenda to introduce New American Neighborhoods to the board members and to ask if there is any interest on the part of the board in establishing the housing district. By way of an update on Cottages Inc., Frederick Schwatz has advised me that he and Don Twombley are continuing the search for a suitable site. Presently Cottages is again negotiating with the Brobacks for their property located at Diamond Path and 145th Street. Their discussions with Berens, Carlsons, and Ruth Englert have not met with success. Mr. Bryant has informed me that New American Neighborhoods must make its application for Federal tax credits to the Minnesota Housing Finance Agency by April I. In the application package Mr. Bryant will need some proof of formal action by the port authority indicating support of the project. I suggested this might be a resolution. The sequence of events in this project then is something like this. Bryant will meet with the commissioners on March 2. If there is interest on the part of the board in working with Bryant's fum he will next appear before the board on March 15 with a proforma and concept plan for the project. I will draft a resalution that states the port authority is in support of the project for the board's consideration. Approval of the resolution will permit Bryant to make the application but by itself will not bind the port authority to any specific actions or terms. Mr. Bryant has stated that New American Neighborhoods will be notified within 60 days if the tax credits have been awarded. Bryant would need to get site plan approval from the planning commission and negotiate a tax increment financing agreement with the port authority. It would be necessary for the city to create the housing district to capture the tax increment funds. Of course, much of this work could be done concurrently Now for some policy questions: 1. Will this evolve into another theater deal with competing interests? No. Cottages Inc., New American Neighborhoods, and the Housing and Redevelopment Authority are all working with different sites. In addition, I firmly believe and can document that the market can absorb all the units. • 9 Page 2 2. Will this cost the port authority any out-of-pocket money? No. It's a pay-as-you-go project with the port authority able to skim off -er- capture an administrative fee. 3. Is the project in compliance with the plan and present zoning? Yes. The land is currently zoned R- 3 multiple family and utilities are in place. Under a separate cover I am sending each of the commissioners a memorandum reviewing the financing process that attracts developers to low income housing. It's rather fascinating as it remains the single real estate development that can be done with little or no capital. Perhaps we should do an infomercial and go on late night television ... dw • p � NEW AMERICAN lr EIGHBORHOODS, INCORPORATED 2524 ELEVENTH AVENUE SOUTH, MINNEAPOLIS, MINNESOTA 55404 USA TEL.(612)872-9684 FAX(612)879-9954 February 11, 1994 John Miller, Economic Development Coordinator City of Rosemount 2875 145th Street West P.O. Box 510 Rosemount, Minnesota 55068-0510 Re: Rosemount-Low Income Senior Housing Port Authority Agenda- Housing Revenue District Dear John, _ On behalf of the Shareholders of New American Neighborhoods, we appreciate this opportunity to work with the City of Rosemount, and also the Carlson Family, to coordinate the development of a 48-unit Low Income Senior Housing Facility. Please accept this letter as our formal request to place this item on the Agenda for discussion before the next available meeting with the Port Authority. Ron Caxlson met with Kent Oliver and myself again today, to review their development goals for their land site. We mutually agreed that our Senior Housing Project would be a very nice compliment within their long term development. The Shopping Center, Drug Store, Theater and other amenities provide an excellent environment, conducive to Senior lifestyles. We look forward to your demographic and market data.to assist us in determining the area demand for Senior Housing. Any additional information that could be provided by the local HR.A would be ereatly apnreciated. As we discussed earlier, this proiect will reauire significant support from the City through Tax relief returned to the Project. This is a "Pay-as-you-Go" method that will eventually provide an enhanced property t�base in the future. We look forward to working with you and the Carlson Family in this prospective development. Sincerely, ��j� ��i�� ��t�- �L�� cc: Shareholders Ron Carlson y New American Neighborhoods, Inc. New American Neighborhoods, Inc. is a corporation working to develop small neighborhoods for America's low- income senior citizens and families.The corporation is headquartered in Minneapolis, Minnesota and includes four corporate officers and one investor.The Chief Executive Officer is William Bryant,the President is Todd Remely,the Director of Design and Construction is David Remely,the Secretary is Edward Lechner.and the investor is Kent Oliver.The corporation may be contacted by writing to New American Neighborhoods, Inc.,c/o 2524 11th Avenue South,Minneapolis, Minnesota or by calling(612)872-9684 or by faxing to(612)879-9954. The following professional profiles will outline each corporate officer's roles, responsibilities, education, and business background. WILLIAM BRYANT Professional Profile The following professional profile will outline William's educational and business background. William received his college education at the University of Minnesota. His major area of study was accounting (this program exists as part of the Carlson School of Management and has been accredited by the American Assembly of College Schools of Business)with an emphasis on auditing, cost accounting,tax analysis, management, and marketing. In addition to his initial degree,William has successfully completed all of the continuing education and extension courses necessary to maintain his standing as a certified public accountant. Shortly after receiving his college education in 1983,William was hired as a Staff Accountant by Rahn Neisen and Root, CPA's-a Rosemont, Minnesota based accounting firm. His responsibilities included preparing tax returns of vatying complexity for individuals and businesses.Additionally, he was responsible for generating monthly and quarterly compilations for the firm's business clients. After leaving Rahn Neisen and Root, CPA's in 1987,William was hired as a Senior Tax Accountant by Silverman and Olsen, CPA's-a Minneapolis, Minnesota based accounting firm. His responsibilities included delegating, managing, and reviewing the tax returns prepared by staff accountants, advising the firm's individual, private corporate, sub- chapter-S corporate, and partnership entities on minimizing their federal and state income tax liabilities,and providing representation during Internal Revenue Service audits. After leaving Silverman and Olsen, CPA's in 1991,William opened a proprietary certified public accounting firm. Although the firm participates in the typical tax market, its speciality is providing accounting,financial, LIHTC's, and tax services to real estate developers.William is extremely knowledgeable and experienced in the area of LIHTC's. He has applied for and received over$20,000,000 worth of LIHTCs for his clients. Additionally,William owns a proprietary real estate brokerage firm called Network Investments.The firm offers real estate brokerage services to a wide variety of clients.William has meet(and maintainsj the educational and legal requirements of a licensed Minnesota real estate broker. This educational and business background has given William the necessary skills and talent to meet and exceed the expectations of the City of Rosemount.These skills include being detail oriented and knowledgeable in the real estate development aspects of accounting, capitalization,finance, investment financing, LIHTC's and their syndication,and taxation. Additionally,William has a great deal of skill in problem solving and project coordination. TODD REMELY Professional Profile The following professional profile will outline Todd's educational and business background. Todd received his college education at St. Cloud State University. His major area of study was marketing (this program exists as part of the Collage of Business and has been accredited by the American Assembly of College -- Schools of Business). In addition to his academic accomplishments,Todd maintained highly visible leadership role,�` in several major campus organizations and received numerous awards including the highly respected Small Busincss Institute Award. After receiving his college education in 1987,Todd joined forces with two other individuals to create a company called The Phillips Brothers.This highly successful company marketed entertainment packages and unique promotions to colleges, businesses,television studios, and cruise ship companies. His responsibilities included product creation, marketing, public relations, accounting, on-stage performance and overall profit. Todd created and launched the / / company's highly successful award winning national marketing campaign and developed imaginative trade show promotions. He was responsible for a 300%profit increase in just four years.Additionally,Todd designed and implemented the company's integrated/automated accounting and management information system.The company's clients included IBM,John Deere, Pillsbury,General Mills,The Nashville Network, Fuji Television-Japan,and Norwegian Cruise Lines. After leaving The Phillips Brothers in 1992,Todd began working with his father's architectural firm.As a consultant to the firm, his responsibilities include coordinating real estate development and investment activities.Todd designed and implemented the firm's integrated/automated financial projection and desk top publishing system. Using this system, he has successfully written, created, published, and presented several state-of-the-art project prospectuses. All of these prospectuses have successfully meet their goals. Currently,Todd is the firm's project coordinator for a LIHTC development which will be located in a Minneapolis suburb. This educational and business background has given Todd the necessary skills and talent to meet and exceed the expectations of the City of Rosemount.These skills include being detail oriented and knowledgeable in the real estate development aspects of finance, LIHTC's, marketing, preparing and presenting project prospectuses. Additionally,Todd possesses a high degree of competency in computer systems and software,problem solving, project coordination, and public speaking. DAVID REMELY Professional Profile The following professional profile will outline Kent's educational and business background. David received his college education at the University of Illinois. His major area of study was architecture. In addition to his initial degree, David has successfully completed all of the continuing education and extension courses necessary to maintain his architectural certificate. After receiving his college education in 1962,David was hired by The Engineers Collaborative-a Chicago based architectural firm. He was hired as a Staff Architect and Engineer but was quickly promoted to an Associate Partner. His responsibilities included management of the architectural and the research/development departments. In just a couple of years, he grew to be one of the most respected professionals in the firm. After leaving The Engineers Collaborative in 1968, he moved to St. Cloud, Minnesota and joined forces with a partner to create an architectural firm called Wemlinger-Remely and Associates. It quickly grew to be one of the largest and most successful architectural firms in the St.Cloud area.Wemlinger-Remely and Associates specialized in providing quality architectural and engineering services. Many of the buildings designed by David, his partner, and his associates are considered to be showpieces in the Minnesota communities where they were built. After leaving Wemlinger-Remely and Associates in 1979, David opened a proprietary architectural firm called Remely and Associates.The firm focuses its energies on providing design services from site selection to construction supervision. Remely and Associates has earned an enviable reputation for designing quality projects on time and within budget. David's firm is experienced in every aspect of the design process. The firm's experience includes site selection, master planning, site development, programming, design,cost analysis, contract documentation, specifications, and construction supervision. Additionally, Remely and Associates has participated in the design of over 12 LIHTC developments.The firm has successfully completed projects (and maintains architectural registrations) in Florida, Illinois, lowa, Minnesota, South Dakota, and Wisconsin. In addition to his architectural background, David is a successful and experienced commercial real estate developer and owner. Together with seueral partners, David has successfully developed,constructed, and retained ownership in over$7,000,000 worth of real estate projects.These projects include a 54-unit market rate multi-family apartment complex and a 54-unit student housing apartment complex.Additionally, David owns a 4,400-square foot commercial building, a 41-unit motel, a 3,000-square foot office/retail condominium, and a 10,000-square foot retail building, David and his partners are also currently developing a 26,000-square foot apartmenUoffice complex and a 48-unit LIHTC apartment complex. This educational and business background has given David the necessary skills and talent to meet and exceed the expectations of the City of Rosemount.These skills include being detail oriented and knowledgeable in the real estate development aspects of construction, design,financing, management and ownership. EDWARD LECHNER Professional Profile The following professional profile will outline Edward's educational and business background. , , Edward received his college education at Macalester College and the University of Minnesota. His major areas of study were international relations and law. Shortly after receiving his college education in 1971, Edward opened a proprietary law firm.The firm specializes in providing legal services to accountants, other attorneys, and administrators of employee benefit plans. Additionally, Edward successfully represents clients involved with Internal Revenue Seroice retirement planning issues and limited partnerships for real estate and oiVgas drilling. In addition to his legal background, Edward is a successful and experienced real estate developer and owner. Together with a partner, Edward has successfully developed,constructed,and retained ownership in over $15,000,000 worth of real estate projects.These projects include a 190-unit market rate apartment complex, a 175- unit market rate apartment complex, a 40-unit mobile home park,a 40,000-square foot office/warehouse building,two 3,600-square foot Perkins restaurants, and a 104,000-square foot warehouse building. Additionally, Edward owns and operates a full-service property management company. This educational and business background has given Edward the necessary skills and talent to meet and exceed the expectations of the City of Rosemount.These skills include being detail oriented and knowledgeable in the real estate development aspects of financing, law, management, and ownership. KENT OLIVER Professional Profile The following professional profile will outline Kent's educational and business background. Kent received his college education at the University of Minnesota-Duluth. His major areas of study were accounting, business, and education. Shortly after receiving his college education in 1974, Kent and his wife opened a proprietary property management company.The firm specializes in generating and maintaining full occupancy for their projects while keeping overhead under control and producing reasonable cash flows.The firm currently manages approximately 1,000 apartment units from Big Fork, Minnesota to Tucson,Arizona.These units are a combination of low-income and market rate apartments. In addition to his properry management background, Kent is a successful and experienced commercial real estate developer and owner. He has first-hand experience in working with Farmers Home Administration projects, Housing and Urban Development projects, LIHTC projects, and MHFA projects. Kent has successfully purchased and/or developed,constructed, and retained ownership in over$75,000,000 worth of real estate projects. These projects include a 16-unit low/moderate-income multi-family apartment complex, a 20-unit low/moderate-income multi-family apartment complsx, a 20-unit low/moderate-income multi-family apartment complex,a 26-unit low/moderate-income multi-family apartment complex,a 26-unit low/moderate-income multi-family apartment complex, a 39-unit lowlmoderate-income multi-family apartment complex,a 42-unit low/moderate-income multi-family apartment complex, a 42-unit low/moderate-income multi-family apartment complex,a 54-unit low/moderate-income multi-family apartment complex, a 22-unit low/moderate-income senior citizen apartment complex,a 23-unit low/moderate-income senior citizen apartment complex,a 31-unit low/moderate-income senior citizen apartment complex, a 41-unit low/moderate-income senior citizen apartment complex, a 41-unit low/moderate-income senior citizen apartment complex, a 48-unit low/moderate-income senior citizen apartment complex,a 60-unit low/moderate-income senior citizen apartment complex, a 22-unit market rate mufti-family apartment complex, a 24-unit market rate multi-family apartment complex, a 34-unit market rate multi-family apartment complex,a 36-unit market rate multi-family apartment complex, a 46-unit market rate multi-family apartment complex, a 47-unit market rate multi-family apartment complex, a 78-unit market rate multi-family apartment complex,a 120 unit market rate multi-family apartment complex, a 34-unit market rate senior citizen apartment complex, and a 14-unit student housing apartment complex.Additionally, Kent owns a 25 percent interest in Breezy Point Resort located near Brainerd, Minnesota, a 135-acre lake shore campground, a 27,000-square foot historic rehabilitation office building, a 5,000-square foot office building, a 6,000-square foot post office,and a 165,000-square foot retail building. This educational and business background has given Kent the necessary skills and talent to meet and exceed the expectations of the City of Rosemount.These skills include being detail oriented and knowledgeable in the real estate development aspects of financing, LIHTC's, management and ownership. Business Park Land Costs/Infrastructure Policv 1 . The Port Authority' s target price for the sale of business park property shall be 5� 3 -000.40 �er acre. This target priee is based upon a preliminary es im $.30 per square foot (of developable area) for the Port Authority' s casts of acquiring the business park property. 2 . The Port Authority shall review the initial target price periodically, but not less than annually, and reserves the right to adjust the target price at any time, and at its sole discretion. 3. The Port Authority may consider selling a parcel of business park property at a price below the target price, after considering �actors which include (but are not limited to) the followings a. The number and income level of jobs that will be created by the sale of the property. b. The aesthetics of any proposed use of the property. c. The relative visibility and/or accessibility of the property. d. The financial terms (for the purchase of the propertyj proposed by the prospective purchaser. eo The beneficial impact of initial sales on the Port Authority' s bonded indebtedness (i.e. , interest reductions) . f. Any other relevant factors that may be identified by the Port Authority or its staff. 4 . Infrastructure costs shall be allocated on the basis of developable area and, at least initially, shall be based upon the "small Iot option" identified by the Port Authority' s consultants. 5. The purchaser of a lot located in the portion of the business park designated as "Area 1" by the Port Au�hority's consultants shall be required to pay its allocated share of the total costs of the infrastructure improvements that are made in Area 1. The allocated share shall be a percentage determined by dividing the purchaser's developable acreage by the total developable aereage in Area 1 of the business park. 6. Portions of the future "holding pond" on the east side of Area 1 shall be sold to the purchasers of the adjacent developable Iand, with a strip of land around the perimeter of the holding pond to be dedicated to the City for park area, and with a drainage easement over the holdi:ng pond to be sold to the City' s utilities commission.