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081913SpecailCCHRAworkession-attachments HOUSING AND REDEVELOPMENT AUTHORITY Office of Executive Director August 15, 2013 HRA Memorandum No. 39 Council Memorandum No. 71 Housing and Redevelopment The Honorable Mayor Authority Commissioners and City of Richfield Members of the Council Subject: Cedar Point Housing Redevelopment Area Discussion (Agenda Item No. 1) Dear Commissioners and Council Members: In 2005 the City adopted a Master Redevelopment Plan for the Cedar Point Redevelopment Area that included development of higher-density residential housing in the two blocks known as the Phase II Housing Redevelopment Area. The main impetus of the plan was and is to convert single-family land uses and structures that are incompatible with noise generated by the Minneapolis/St. Paul Airport. The Cedar Point Phase II Housing Redevelopment Area is bounded by 17th Avenue/Richfield Parkway to the east, 16th Avenue to the west, 63rd Street to the north, and 65th Street to the south. The area is comprised of 29 single-family residential properties, fourteen of which are in the process of being acquired by the City and Housing and Redevelopment Authority (HRA) for the construction of Richfield Parkway. The HRA has agreed to take ownership of all 14 properties acquired and to pay the special assessments, totaling $780,000, associated with the construction of Richfield Parkway. The payments of approximately $47,400.00 annually will commence in 2017. On January 28th of this year, staff distributed a Request for Qualifications (RFQ) to 17 developers for the redevelopment of the Cedar Point II area. Three developers responded to the RFQ and upon review of their qualifications, they were subsequently sent a Request for Proposal on April 22nd for the redevelopment of the site. Staff received one formal proposal, from Sherman Associates, for the development of 188 units of senior housing, which includes 120 units of assisted living and 66 units of 55+ senior living. The development would also include 6,500 square feet of office/retail to be built in a later phase. Sherman Associates presented their proposal to the HRA on June 17th. At that time, the HRA requested Sherman Associates re-evaluate their proposal to incorporate non- age-restricted market-rate housing and come back to the HRA at a later date. I Since that time, Sherman Associates has had the opportunity to consider revising their proposal per the HRA's direction. After a thorough vetting, given the property's location and constraints, they have determined that the highest and best use of the property remains senior housing. Sherman Associates and HRA staff will discuss the property constraints, Sherman Associates' proposal, and the factors influencing that proposal at the HRA/City Council work session on August 19th. Re- •• tf ly submitte' , 4 40-. A• / / - - , ev n . De ch Executive Director SLD:KCB Attachments: Sherman Associates Proposal 66th Street Corridor Market Study— Senior Housing/Cedar Point Housing Redevelopment Area Email: Department Directors Assistant to City Manager • 1 -i `-',.� f, ��.. qr I II y • ~ S ..w aK Y. yi in ' y F _t S Si x i-"r te'_ 'eel) ja �g 1' Sperm n ASSOCIATES IIMIIIIIIIIVAIIIIIMIIIIIIMIIIIIIIMIIII sherman ASSOCIATES • May 24, 2013 Richfield Housing&Redevelopment Authority 6700 Portland Avenue Richfield, MN 55423 Attn: Ms. Karen Barton RE: Cedar Point Housing Development Sherman Associates'RFP Application Dear Ms. Barton: With this letter Sherman Associates is pleased to submit its application to the Richfield URA for the Cedar Point Housing Development Requests for Proposals dated April 25, 2013. In addition to meeting the HRA's basic goal of developing airport-compatible uses for the redevelopment area,we are excited to offer a proposal that will bring more high-quality design, construction and amenities to Richfield. Our proposal would develop approximately 186 units of • Senior Assisted Living and 55+ Senior Living, and 6,500 square feet of office/retail space over three phases. The development will include generous amounts of privately-developed green space and pedestrian connections and will serve as an excellent transition between adjacent residential and commercial uses. Sherman Associates and its development partners have extensive experience in collaborating with cities and completing complex, desirable redevelopment projects such as we are proposing here. Thank you for the opportunity to apply—we look forward to continuing to collaborate with you on this important redevelopment. Please do not hesitate to contact me with any questions on our proposal. Sincerely, George E. Sherman Principal, Sherman Associates Enclosure S 233 Park Avenue South,Suite 201,Minneapolis,MN 55415 Tel:612.332.3000 Fax:612-332.6119 www.sherman-associates.com t Shen/ion Assockites is on Equol Opportunity Employe- • Contents • A. Developer Information Sherman Associates Development LLC Attachment A.!: Sherman Associates Company Profile Attachment A.2i: Similar Projects— Heritage Park Senior Campus Attachment A.2ii: Similar Projects— Blaine Town Square Attachment A.2iii: Similar Projects— Falcon Heights Town Square Senior B. Design Team & Consultant Information Kaas Wilson Architects Bryan Carlson Planning&Landscape Architecture Consultant Dennis O'Donnell Attachment B.I: Architect Relevant Experience Attachment B.2: Landscape Architect Relevant Experience Attachment B.3: Consultant Danny O'Donnell Resume & Experience • C. Conceptual Design Project Description Residential& Commercial Breakdown Unit&Building Features Affordability Matrix Attachment C.I: Conceptual Renderings Attachment C.2: Proposed Site Plan D. Project Timeline E. Financial Information F. Additional Documentation • Attachment F.I: Letter of Support- Mt Calvary Lutheran Church gsherman Cedar Point ASSOCIATES Redevelopment • SECTION DEVELOPER e r&sherman Cedar Point --- — ------- —----- ------------------ A S S O C I A T E S Redevelopment DEVELOPER OBackground Minneapolis-based Sherman Associates, Inc. has completed over $2 Billion in real estate development across Minnesota, Wisconsin, Iowa, Missouri, and Colorado over the past 35 years. As an industry-leading property development and management company, Sherman Associates focuses on the big picture: from the inception of an idea through completion and lease-up. The scale of these projects ranges from large neighborhood redevelopment projects in high-density urban settings to small apartment projects in rural areas. Within the past decade, Sherman Associates' portfolio expanded to include the development or rehabilitation of over 2,500 residential apartments, including approximately 2,000 under lease-up or construction. Over 365,100 square feet of retail and commercial space were added to the portfolio along with the development two hotel projects in Minnesota. The diverse range of experience allows Development Team President: George E. Sherman, Principal /gsherman @sherman-associates.com Vice Presidents: Susan A. Fauver, General Counsel / sfauver @sherman-associates.com Christopher L. Sherman, Project Management/ csherman @sherman-associates.com Development Team: Paul Keenan, Project Manager/ pkeenan @sherman-associates.com • Andrew Hughes, Project Manager/ ahughes @sherman-associates.com Sara Schoonmaker, Asst Project Manager/ sschoonmaker @sherman-associates.com Construction Manager: Richard Kiemen, Craftsman Construction I' rkiemen @sherman-associates.com Additional Information Sherman Associates Development LLC is a Minnesota Limited Liability Company operating under Sherman Associates, Inc. a Corporation solely owned by George E. Sherman. Sherman Associates Development LLC 233 Park Avenue South I Suite 201 Minneapolis, MN 55415 0: 612-332-3000 I F: 612-332-8119 For a full list of completed projects, managed properties, development highlight and recent publications, please refer to the Company Resume included within Attachment A.I • .44 sherman Cedar Point ASSOCIATES Redevelopment REFERENCES Sherman Associates strives to build strong and lasting relationships with each of the parties involved in a development. al Listed below are references from three projects similar to the proposed senior development at Cedar Point. Heritage Park— Feeney Manor / Minneapolis, Minnesota Housing Type: Senior, Assisted Care, Memory Care Project Size: 48 Apartments [24 Memory Care, 24 Assisted Living] References: Emilio Bettaglio, Deputy Executive Director, Minneapolis Public Housing Authority ebettaglio @mplspha.org I 612-342-1419 Michael Anderson, Development Coordinator, Minneapolis Public Housing Authority manderson @mplspha.org I P: 612-342-1213 Blaine Town Square / Blaine, Minnesota Housing Type: Senior Independent Apartments Project Size: 87 Apartments References: Bryan Schafer, Director of Community Development, City of Blaine bschafer @ci.blaine.mn.us I P: 763-785-6144 Falcon Heights Senior/ Falcon Heights, Minnesota Housing Type: Senior Independent Apartments Project Size: 56 Apartments • References: Michelle Tesser, Interim City Administrator, City of Falcon Heights mischelle.tesser @falconheights.org I P: 651-792-7600 For a more detailed look at each of these developments, please refer to Attachment A.2: Developer Highlights. • r&sherman - - - - -- - - - Cedar- Point A S S O C I A T E S Redevelopment S Attachment A. I Sherman Associates Company Profile • • r&sherman Cedar Point ASSOCIATES Redevelopment 0 COMPANY PROFILE Mr' INF ,.,..___-:*,''.„--: i-i .1: il I,1 1-"1 ir, '- ,- , - ,4-,I4 ,,,,. , is. 111 1. [ i 1 i !: t : G ► l t1 E , .1.4..___ Soitit .. Building Communiti: Enriching Neighborhoc • sherman Ull.- ASSOCIATES • MissionStatement Sherman Associates is committed to the production of quality urban housing products. With the belief that the healthiest neighborhoods are comprised of a variety of people and uses,we strive to create mixed- use developments which incorporate a variety of housing types and leverage multiple financing tools. Because these projects are never easy,we endeavor • to continually develop strong relationships with government and financial institutions that believe in thesamevision—strong urban projectswith housing opportunities for all. • 233 Park Avenue South, Suite 201 • Minneapolis, MN 55415 Phone: (612) 332-3000 • Fax: (612) 332-81 19 www.sherman-associates.com CONTENTS INTRODUCTION Welcome Capacity and Process Department Biographies DEVELOPMENT EXPERIENCE Completed Projects Selected Project Details PUBLIC PROFILE Selected Awards Press &Media • sh ASSerOCmIATaEn S COMPANY PROFILE:Contents INTRODUCTION • // h.", . -Nrrimirp. .... ., .....r o � ,,►........ ,.. .. ....1/4„. :,...„. s y .: . „ ,,,// / ...., „., . .0 . iii ii... iv : ,/ I 1I , . fir. . 11000,” ' 11141..... —INA US 1.-- '-" • Sherman Associates Sherman Associates, Inc. is an award-winning development firm specializing in the design, construction and financing of quality commercial and housing properties in Minnesota, Wisconsin, Iowa, Missouri and Colorado. Having earned a strong reputation for quality and follow-through, cities around the country have turned to Sherman Associates to pioneer redevelopment in their highest priority urban neighborhoods. Over the past 35 years, Sherman Associates has become an industry leader in tax credit, affordable housing and tax increment financing projects. Such developments have been successful for the participating cities, investors, residents and businesses. Sherman Associates has developed approximately 8,500 multifamily, townhouse and single-family homes, and 600,000 square feet of commercial and hotel space. • pasherman ASSOCIATE S COMPANY PROFILE: Introduction its pr- iso i000iopo;oo t,9 • 1.'0-r. _708. 4•1 ,•t` 101 On 101 205 I __ .4042. 4s Capacity and Process Sherman Associates specializies in both new construction,the rehabilitation of existing buildings,or historic adaptive reuse. With over 35 years of development and construction experience,Sherman Associates has developed or rehabilitated housing, retail,office, hotel,and warehouse buildings. Within these multiple facets,our team is able to offer the following diverse range of services in the commercial,single-family and multi-family markets: • Development Services • Design-Build Services • Financial Analysis/Feasibility • Knowledge of Federal,State and Local Housing Programs • • Property Management • Construction • Site Analysis • Marketing Plans and Feasibility • Equity and Debt Funding Sherman Associates has established an impressive and prolific track record, completing over$2 billion in real estate development. On a yearly basis, our pipeline consists of$200 million to $250 million in development of commercial and residential projects. • asherman ASSOCIATES COMPANY PROFILE: Introduction Biographies and Staffing George Sherman George Sherman has planned and delivered multi- and single-family housing for more than 35 years. As principal in developing more than 7,000 rental units and more than 1,200 for-sale housing units, to date the total value of his development portfolio exceeds $2 billion. Development: Led directly by George Sherman, the development department has a proven track record of successfully leveraging complex financing packages and strong relationships with local governments and community leaders. It is made up of experts in multiple disciplines, including commercial real estate, affordable housing finance and conventional real estate finance, who continue to build strong relationships throughout the major markets in which Sherman Associates operates. Key Staff George Sherman, Tony Kuechle, Paul Keenan, Chris Sherman,Jackie Nickolaus, Andrew Hughes Legal: Sherman Associates' in-house legal team spearheads the closing of all projects while also navigating issues that arise in a diverse real estate company. Consisting of staff with high-level knowledge of real estate and land use matters, as well as affordable housing and conventional real estate finance, this team is essential to the Sherman Associates process. Led by Susan Fauver, the team works hand-in-hand with the development group to ensure the stability and long-term success of Sherman Associates projects. IKey Staff Susan Fauver, Anne Stephenson, Lis Peterson, Lisa Merk Residential Property Management and Affordable Housing Compliance: Sherman Associates' professional management team is made of industry veterans with substantial knowledge and experience in the management of low-income, market-rate and special-needs housing projects. The department consists of over 200 employees ranging from caretakers and maintenance staff to upper-level property management and compliance staff. This dynamic and diverse team, led by Don Cappaert, manages both the day-to-day and global processes that allow Sherman Associates' robust, multi-faceted rental portfolio to remain financially successful and to cater to the needs of some 20,000 residents throughout the Midwest and Colorado. Key Staff Don Cappaert, Shiva Anderson, Eduardo Christ, Simone Achkar,Joe Kellen Condominium Sales: With a vast portfolio ranging from single-family homes to multi-million dollar high-end luxury condominiums, Brad Goering has led the for-sale department at Sherman Associates through numerous successful sales. His extensive knowledge of homeowner association matters, together with his ability to manage multiple selling agents, marketing efforts and homeowner association warranty concerns in multiple regional markets, has allowed Sherman Associates to progress and continue to grow in spite of the recent economic recession and the significant downturn in the home ownership market. Key Staff Brad Goering, Lisa Merk • r1:1 (ar"tiled EE COMPANY PROFILE: Introduction Commercial Property Management: The commercial team at Sherman Associates manages real estate and brokerage throughout the five-state portfolio. • Leveraging important community connections and strong tenant relationships, this group has been a key on-the- ground presence. They have added important community amenities to Sherman Associates' mixed-use developments, ensuing the long-term growth of the neighborhoods and local economies in which they are located. Key Staff Rob Kost, Katherine Marinac, Heather Nelson, Tony Kuechle Hotel Operations Sherman Associates' hotel operations have added a key component to our ever-expanding portfolio of diverse and highly-acclaimed projects. Boasting a hotel ranked in the top five of all Sheraton hotels nationwide, the aloft and the Sheraton have continually operated with high occupancy and regional acclaim. With the second largest staff pool in the company, consisting of upwards of 175 employees, this department is professionally managed by leaders with decades of experience in the field. Key Staff Adam Herbranson, Troy Whelan, Karen Pionk, Doug Bremer, Deanna Somvong Construction and Facilities Management: The construction and facilities management team at Sherman Associates is one of the most essential components to the completion of development projects and the continued maintenance of the portfolio. Led by Rich Kiemen, this team coordinates with general contractors, architects, engineers and the property management staff on a daily basis. Their continued diligence has been integral to Sherman Associates in staying on schedule and within budget to deliver new construction, occupied rehabilitation and historic rehabilitation projects. This group is also responsible for the oversight of day-to-day maintenance operations and preparation for numerous required site inspections throughout the portfolio. Key Staff Rich Kiemen, Ron Wagner, Gordy Willey Accounting: With the complexity of financing in many projects, along with the vast diversity and sheer volume of products offered, the accounting department at Sherman Associates is fundamental to the daily operations of the company. Managing property accounting, financial reporting, relationships with financial institutions, support of the property management, commercial, and home ownership teams, the department acts as the core linkage between the internal and external transactions for the company. Led by Deanna Somvong, the team consists of staff with expertise in residential accounting, commercial accounting and high-level auditing. Key Staff Deanna Somvong, Renee DeRosia • sherman r� ASSOCIATES COMPANY PROFILE: Introduction DEVELOPMENT EXPERIENCE I I1 I i` - F 1,! 1 I II ! tibI 1 1 , _ _ yr sr w _ It I l ,■ I I I I .4 '.1" 4. : ■ 1 ! I, 0 ,41 ill r- it i a n r 1_ 1 i ► ', •fi 1r t i 11. IR .� f ,t. 1 lei 1 11 n 11 (11 y Is flu if . ; i i j tit �, ,; '° i i *Al or • .. t ;z 41 ; ,. 1 u in i II. Jii I ` I Ii,♦ � ; 1 • Completed Projects and Selected Experience The following pages outline a full list of Sherman Associates' completed projects in Rental Housing, Commercial Real Estate, Hotels and For Sale Housing. We have also included detailed descriptions of selected projects that successfully demonstrate Sherman Associates' commitment to producing effective quality developments in urban markets with opportunities for users of all income levels. �-LiC1 m.:(111 f.>s � �A, << COMPANY PROFILE: Development Experience Completed Rental Projects Year Mixed SI Project Name City State Completed #Units Project Type LIHTC Historic Use I.3100 Clinton Minneapolis MN 1990 12 Rehabilitation • 2.3100 Fourth Avenue Minneapolis MN 1992 10 Rehabilitation 3.Autumn Ridge Brooklyn Park MN 2007 366 Rehabilitation • 4. Bell Building Minneapolis MN 1985 25 Rehabilitation 5. Blaine Town Square Senior Apartments Blaine MN 2005 87 New Construction 6. Bottineau Commons Apartments Minneapolis MN 2003 119 New Construction • 7.Bottineau Lofts Minneapolis MN 2003 37 Adaptive Reuse • • 8. Boulevard Apartments Milwaukee WI 2007 235 Rehabilitation • 9. Browns Meadow Coon Rapids MN 1992 148 New Construction 10.Castle Apartments Minneapolis MN 1990 11 New Construction I I.Central Avenue Lofts Minneapolis MN 2007 66 New Construction • • 12.Community Plaza St.Paul MN 1999 40 Rehabilitation • 13.Cromwell Commons(Marvin Gardens) Minneapolis MN 1996 18 Rehabilitation • 14. East Phillips Commons Minneapolis MN 2004 34 New Construction • 15.Falcon Heights Multifamily Falcon Heights MN 2004 119 New Construction • ■ 16. Falcon Heights Senior Apartments Falcon Heights MN 2004 56 New Construction 17.Farmington Townhomes Farmington MN 2001 16 New Construction • 18. Gateway Terrace Grand Forks ND 1994 New Construction 19.Grand Boulevard Lofts Kansas City MO 2009 134 Adaptive Reuse • • • 20.Grande Market Place Burnsville MN 2003 113 New Construction • • 21.Greysolon Apartments Duluth MN 2006 150 Adaptive Reuse ■ • • 22.Guardian Angels of Hastings Hastings MN 2002 30 New Construction • ■ 23.Harrison Lofts Davenport IA *UC 60 New Construction • 24. Highland Chateau Duluth MN 1999 60 Rehabilitation 25.Highland Park Milwaukee WI 2008 150 Rehabilitation ■ 26. Irving School Duluth MN 201 I 44 Rehabilitation 27.Jefferson Square Apartments Duluth MN 2000 25 Rehabilitation 28. Le Sueur Meadows Apartments Le Sueur MN 2002 40 New Construction • • 29.Lexington Shores Shoreview MN 2002 68 New Construction • • 30. Lodge at Little Canada Little Canada MN 2003 79 New Construction • 31. Longfellow Station Minneapolis MN *UC 180 New Construction • 32. Lyons Court* St.Paul MN 2005 60 New Construction • 33.Merritt School Duluth MN 2004 19 Adaptive Reuse 34. Metro Lofts Des Moines IA 2010 III New Construction • 35.Midtown Exchange Minneapolis MN 2005 219 Adaptive Reuse • • • 36. Mount Royal Manor Duluth MN 2002 114 Adaptive Reuse 37.New Paris Apartments Benson MN 1985 40 Rehabilitation 38. Phalen Senior Lofts St.Paul MN 2006 73 New Construction • 39.Phoenix on the Fax Denver CO 2012 50 New Construction • 40. River Run Apartments Minneapolis MN 2005 74 New Construction • 41. Riverside Plaza Minneapolis MN 2012 1303 Rehabilitation ■ • 42. Rumely Lofts Des Moines IA 2009 66 Adaptive Reuse • • • 43.Russell Lamson Des Moines IA 2012 90 Adaptive Reuse • 44.Seward Flats(2) Minneapolis MN 1997 123 Rehabilitation 45.Sibley Court Apartments* St.Paul MN 2003 122 New Construction • • 46.Sibley Park Apartments* St.Paul MN 2001 114 New Construction • ■ 47.Stradford Flats Minneapolis MN *UC 62 Rehabilitation • 48.Straus Apartments St.Paul MN 2003 49 Adaptive Reuse • • • 49.Syndicate Trust St.Louis MO 2007 70 Adaptive Reuse • • • 50.The Chateaus(3 Buildings) Duluth MN 1998 141 Rehabilitation 51.The Crossings at Valley View Bloomington MN 2009 50 New Construction • 52.The Roosevelt Cedar Rapids IA 2008 96 Adaptive Reuse • • • 53.Vine Street Lofts* Des Moines IA 2004 110 New Construction • 54.West Gate Townhomes Duluth MN 2001 28 New Construction ■ 55.West Side Flats St Paul MN *UC 178 New Construction TOTALS: 5,894 38 8 16 ill asherman ASSOCIATES COMPANY PROFILE: Development Experience Completed Condominium Projects leProject Name City State Completed#Homes Project Type Housing Type I. Zenith-Phase 1 Minneapolis MN 2008 64 New Construction Condominiums 2. The Syndicate St.Louis MO 2007 102 Adaptive Reuse Condominiums 3. 311 Superior Duluth MN 2007 33 New Construction Condominiums 4. Vista San Jacinto San Jacinto CA 2007 34 New Construction Townhomes 5. Homes of Emerson Hill West St.Paul MN 2007 35 New Construction Townhomes 6. Groveland Terrace Minneapolis MN 2007 128 Adaptive Reuse Condominiums 7. The Villas of Little Canada Little Canada MN 2007 45 New Construction Townhomes 8. The Brownstones at River Run Minneapolis MN 2007 10 New Construction Townhomes 9. The Bridges of Blaine Blaine MN 2006 12 New Construction Townhomes 10. The Chicago Minneapolis MN 2006 88 Adaptive Reuse Condominiums I I. Printer's Row* St.Paul MN 2006 42 New Construction Condominiums 12. Midtown Lofts* Minneapolis MN 2005 72 New Construction Condominiums 13. Keene Creek Townhomes Hermantown MN 2005 44 New Construction Townhomes 14. 9th Street Lofts* St.Paul MN 2005 49 Adaptive Reuse Condominiums 15. Water Street Brownstones* Des Moines IA 2004 37 New Construction Condominiums 16. Bottineau Commons Townhomes Minneapolis MN 2003 27 New Construction Townhomes 17. The Dakota* St.Paul MN 2003 32 New Construction Condominiums 18. Capital Heights City Homes St.Paul MN 2003 25 New Construction Townhomes 19. Landings at Sawmill Run Minneapolis MN 2003 58 New Construction Townhomes 20. The Shores Shoreview MN 2003 15 New Construction Townhomes 21.The Essex* St.Paul MN 2002 38 New Construction Condominiums 22. City Homes on Park Avenue Minneapolis MN 2000 29 New Construction Mix 23. 3100 Fourth Avenue Minneapolis MN 1992 9 New Construction Single Family 24. 3100 Clinton Minneapolis MN 1990 8 New Construction Single Family • 25. Parkway Terrace Maplewood MN 1990 90 New Construction Single Family 26. Highland Terrace Minneapolis MN 1990 22 New Construction Single Family 27. Kenwood Isles Minneapolis MN 1988 40 New Construction Townhomes 28. Lakes Citihomes Minneapolis MN 1985 83 New Construction Townhomes 29. Boardwalk and Park Place Townhomes Minneapolis MN 1982 63 New Construction Townhomes 1,270 *Lander-Sherman Development • psherman ASSOCIATES COMPANY PROFILE: Development Experience Completed Commercial Projects Project Name City State Completed Size Project Type IP I. Zenith Commercial Minneapolis MN 2007 10,000 SF New Construction 2. Syndicate Trust Building St. Louis MO 2007 20,000 SF Rehabilitation 3. Wentworth Commons West St. Paul MN 2007 13,000 SF New Construction 4. Blaine Town Square Blaine MN 2005 50,000 SF New Construction 5. Robert Street Retail St. Paul MN 2005 4,400 SF New Construction 6. Garfield Business Park Duluth MN 2005 50,000 SF New Construction 7. Grande Market Square Burnsville MN 2004 30,000 SF New Construction 8. Village of Little Canada Little Canada MN 2004 20,000 SF New Construction 9. Grande Market Place Burnsville MN 2004 14,000 SF New Construction 10. The Lodge at Little Canada Little Canada MN 2004 12,000 SF New Construction I I. Deephaven Court Deephaven MN 2003 18,200 SF Rehabilitation 12. Sibley Park Place* St. Paul MN 2003 12,000 SF New Construction 13. The Straus Building St.Paul MN 2003 10,000 SF Rehabilitation 14. 233 Park Minneapolis MN 2001 60,000 SF Rehabilitation 15. Deephaven Square Deephaven MN 1999 25,000 SF Rehabilitation 16. Canal Park Square Duluth MN 1998 60,000 SF Rehabilitation 17. Hawthorne Crossings Minneapolis MN 1997 50,000 SF New Construction 18. Camden Center Minneapolis MN 1997 15,000 SF New Construction 473,600 SF HOTEL PROPERTIES Project Name City State Completed Size Project Type I. Aloft Hotel Minneapolis MN 2007 155 rooms New Construction 2. Sheraton Duluth Hotel Duluth MN 2007 147 rooms New Construction 302 rooms III r.sherman ASSOCIATES COMPANY PROFILE: Development Experience RIVERSIDE PLAZA . NI... 'Widow .k 1* ''' Y Ii. i -.. ' A t I i t `A y) -�� '"'l e F fir.•... . I - -� ' ':' iii ' 71.E ' ., - ,. ' .. _ II�$. • ` -_. ,.,.." i ' . : . ' • • . : i - 40,.7.4 , ,- - i ,i ,- , 9 , . °• + �_ _ I W GRAND- . t .:J ! el , A,„ i I , — Minneapolis, MN Project Details Riverside Plaza represents the largest housing • Historic Rehabilitation and Stabilization development project in the state of Minnesota and • 1,303 Total Apartments in I I Buildings one of only two projects in the United States that • 1,174 Tax Credit Units (60% AMI) were built as part of a HUD pilot program called • 669 Project-Based Section 8 Units ."New Town, In Town." Originally constructed • Project Value: $132 Million between 1971-1973, Riverside Plaza consists of • Financing: Federal 4% LIHTC Equity, HUD- 1,303 rental units. Sherman Associates acquired the Guaranteed 1st Mortgage, Federal and State property in 1988 and at that time performed the first Historic Tax Credits, MN Housing Finance substantial rehab of the complex utilizing low-income Agency EDHC & PARIF, City of Minneapolis housing tax credits and a HUD-insured mortgage as AHTF, Greater Metro Housing Corp Funds, Met the primary sources of financing. Council LHIA, Family Housing Fund, Met Council/ Brownfield TBRA, Hennepin County/Brownfield In January of 2011, Sherman Associates closed on Environmental Response Fund, Deferred one of the largest tax credit rehabilitation projects in Developer Fee the nation's history and began a $132 million, two- year refinance and renovation of this iconic property. Role: Developer, General Partner, Property Manager In the process, Riverside Plaza was placed on the National Register of Historic Places less than 40 Rehabilitation Completed: November 2012 years after it was initially constructed. The historic designation was in part due to the concepts and Awards and Recognition: design brought forward by world renowned architect • 2012 Best in Real Estate: Multifamily Development Ralph Rapson. During the construction period, the or Redevelopment building remained occupied, conducting a temporary relocation that is unmatched in size and complexity. The rehabilitation, completed in November of 2012, focused on substantial upgrades to the mechanical and electrical systems, along with exterior and site work that returned the Riverside Plaza complex to its •original 1970s appearance. 1,,.',; ,11(1 II1M1 ` COMPANY PROFILE: Development Experience GRAND BOULEVARD LOFTS (/ ii ' 441 ..I K I... f al , 'itii Itaf: e? ` ?"il wig .1 ./ Oki 4 4 � :._ '0 I--- i 11 I 1 !j , ' .../-- piiiw I :.,.$ rit:1 -1 1 'N 41 V: . - — ---:----- ..-\- 4I i > - �� Kansas City, Missouri Project Details The former Dierks Building, a 17-story, steel frame, • Historic Acquisition and Rehabilitation brick-clad office building in the heart of downtown • 134 Affordable Apartments Kansas City, sat vacant for a decade. Through the • 6,700 Square Feet Retail - Ground Floor help of City, State and Federal funds, this project now • Project Value: $33.3 Million houses 134 families offering them rental opportunities • Financing: State and Federal Low Income Housing that are integral to Kansas City's efforts towards Tax Credits, State and Federal Historic Tax • downtown revitalization. Credits, HUD Insured Mortgage, MHDC TCAP Soft Loan, Kansas City CDBG Loan Re-christened Grand Boulevard Lofts, this project represents Sherman Associates' first move into the Role: Developer, General Partner, Property Manager Kansas City housing market. Opening to fanfare from city officials, the community has gained tremendous Completed: December 2010 support from community organizations such as The Urban Core Group. The building is listed on the Awards and Recognition: National Register of Historic Places and contains two • 2011 Capstone Award by Kansas City Business first floor and sub-level commercial spaces which are Journal being marketed to top-rate national and local retailers. • 2011 T. Timothy Anderson Award for Best Historic Rehab involving LIHTC - Finalist • q sperm 1,1 1 COMPANY PROFILE: Development Experience 1 THE SYNDICATE ,--,-_ ,..1:::1--''''''''.::' -411:7 :74.::1- '''' - 1 : i aok _ , 1 , . - lair St. Louis, Missouri Project Details The Syndicate Trust Building is a prominent historic • Historic Acquisition and Rehabilitation property located at the intersection of 10th and Olive • 28 Affordable Apartments - Floors 4-5 Streets in the heart of downtown St. Louis. Originally • 42 Market-rate Apartments - Floors 6-8 built in 1907, the 16-story building is comprised of • 102 Condominiums - Floors 9-17 approximately 450,000 square feet and was previously • 20,000 Square Feet Retail - Ground Floor Wused for office and retail space. The building was • Project Value: $81 Million placed on the National Register of Historic Places • Financing: City of St. Louis, Federal Low Income because of its notable architecture. Housing Tax Credits, New Markets Tax Credits, Federal Historic Tax Credits, Missouri State Retail has returned to the Syndicate Trust Building Historic Tax Credits, Missouri State LIHTC, with top-rate national and local retailers located in the Brownfield Redevelopment Credits street level space. Loft condominiums, located on floors 9 through 16, and rental apartments, located Role: Developer, General Partner, Property Manager on floors 4 through 8, provide residents with the convenience, features and amenities associated with Completed: December 2008 urban living. Awards and Recognition: • 2008 Development of the Year • jasherman ASSOCIATES COMPANY PROFILE: Development Experience ALOFT HOTEL & ZENITH CONDOMINIUMS .w.....\ iiM 11 liktu 161 1 ?l --1 _1 It., ,_ f i Cifairglip '''.".- ''''''' '117--a'. '.."' ".- 1 I k-1.- ..` ...IL_ .....I--... K 1 Minneapolis, Minnesota Project Details In 2008, Sherman Associates opened the new 155- • New Construction room aloft Hotel along Washington Avenue South • I55-Room Hotel in downtown Minneapolis. Part of Starwood Hotels, • 64 Condominiums aloft has five stories with guest rooms on 2 through 5. • 4,000 Square Feet of Retail in the aloft The ground level includes approximately 4,000 square • 7,800 Square Feet of Retail in the Zenith feet of retail space and the hotel's common areas. • Project Value: $61 Million • • Financing: New Market Tax Credits, Environmental Adjacent to the project is the Zenith Condominiums. Grant Located in the prestigious Mill District, the project provides an opportunity for contemporary living Role: Developer, Owner, Sales Broker in a dynamic downtown neighborhood. Just steps from the exciting new Guthrie Theater, and a few Completed: August/ November 2008 blocks from the heart of downtown, the Zenith offers dramatic views of the Minneapolis skyline and the Awards and Recognition: Mississippi River. With shops, river trails and light • 2008 Finalist in Hospitality Development/ rail service all within walking distance, this project Redevelopment by Minneapolis/St. Paul Business provides high-end housing in the downtown market. Journal • 2010 Honor Award for Excellence in Concrete Design & Construction III Sherman COMPANY PROFILE: Development Experience GREYSOLON PLAZA I SHERATON HOTEL 131 1 SUPERIOR . ___, ._ ..,,,, . L 1„.,, • E I II Ill". pills II in , 1 l 4I I I 1-, 14 9 M'r M 11 s r, ; ,. . ire 1U M :I , a al al a ■ !` L, ,,�1 -� .„ � Ili 1 I; it i 11 a 13 110 , 4” f� c t i.• v Duluth, Minnesota Project Details In 2006, Sherman Associates acquired and • Historic Acquisition and Rehabilitation rehabilitated the historic Greysolon Plaza building in • 150 Affordable Senior Apartments downtown Duluth, Minnesota. Built in 1910 as the • 147 Guest Rooms and Suites Hotel Hotel Duluth, Greysolon Plaza's guests have included • 33 Condominiums alseveral former US presidents. The building was • Project Value: $55 Million converted to affordable senior housing in the 1990s. • Financing: Federal Historic Tax Credits, Federal As part of its redevelopment plan, Sherman Associates Low Income Housing Tax Credits, Minnesota has rehabilitated and preserved this affordable senior Housing Finance Agency Soft Debt, Section 8, housing. New Market Tax Credits, Tax Increment Financing Across the street, Sherman Associates constructed Role: Developer, General Partner, Owner, Property a new building that includes the Sheraton Duluth Manager Hotel which is connected to the historic ballroom of the Greysolon Plaza by skyway. Five floors of Completed: Summer 2007 luxury condominiums have been constructed on top of the six-story, full-service hotel. The renovation and construction of the two buildings are part of a multi-project redevelopment of the historic "Old Downtown" area of Duluth. IP 1,01 1,11:(111 COMPANY PROFILE: Development Experience MIDTOWN EXCHANGE I CHICAGO LOFTS 1 AA- _ - I- 1 1 ` iig Ira 4 y _ • , =- Mk 1 • # - iii _.. I s M ' : ' ':: I 1'...1' ,.,_ . _ _ 4 et I I HI ifr Minneapolis, MN Project Details In 2004, a collaboration between developers Sherman • Historic Rehabilitation and Mixed-Use Conversion Associates and Ryan Companies transformed the • 41 Market-rate Apartments mammoth 1.2 million square-foot historic Sears, • 178 Affordable Apartments Roebuck building in South Minneapolis into a mixed- • 88 Condominiums use masterpiece featuring 88 loft and penthouse condo • Project Value: $77 Million units, 219 rental units (including affordable units), the • Financing: Federal Low Income Housing Tax III headquarters of Allina Health Systems and a global Credits, US Bank first mortgage (Housing Revenue food market. The Global Market features a variety of Bonds), Minnesota Housing Finance Agency, City small businesses started by local entrepreneurs. of Minneapolis, Hennepin County,Tax Increment, Metropolitan Council Midtown Exchange was designed, developed and financed in record time spanning only six months initial Role: Co-Developer, General Partner, Property inception to the beginning of construction. Sherman Manager Associates took the lead on the development of the condominiums and apartments at Midtown Exchange, Completed: December 2005 which remains one of Sherman Associates' most celebrated projects earning continued awards and Awards and Recognition: recognition from both local and national sources. • 2010 Property Excellence Award by Minnesota Multi Housing Association • 2009 Best of the Decade by Minneapolis/St. Paul Business Journal • 2007 Affordable Housing Finance Magazine: Best Historic Rehabilitation • 2006 National Trust/HUD Secretary's Award for Excellence in Historic Preservation • 2005 Best in American Living by Professional Builder Magazine • 2004 Best in Real Estate: Best Overall by Minneapolis/St. Paul Business Journal • 9 s1,,,,`TT1 Ll i7 COMPANY PROFILE: Development Experience VINE STREET I WATER STREET ,r,,. :. -. •. w ‘......'#..... <<--- S.Az• ,_.. .. I"' "" ; X . wr 4 .,. it . 1111 1. ":.;;; - 0 --- 0 1 -.-4- --- - .:,•7 .- It 41 4 71 IL -0111110- I 7 6 ii 0 i 1 , -r_ 71. Tr ---- . Des Moines, Iowa Project Details Completed in 2004, Vine Street Lofts and its sister • 65 Market-Rate Apartments condominium project, Water Street Brownstones, • 44 Affordable Apartments were the first significant new construction residential • 32 Condominiums projects in Des Moines in over 20 years. Located on • Project Value: $15 Million a prime site overlooking the Des Moines River, the • Financing: HUD, Fannie Mae, City of Des Moines, parcel had been a surface parking lot for decades. Polk County Housing Trust Fund, Neighborhood Finance Corporation, Federal Low Income Selected through a competitive request for proposal Housing Tax Credits, Tax Abatement process, Sherman Associates and partner Lander Urban Development introduced a model that was Role: Developer, General Partner, Property Manager untried in Des Moines high-end home ownership opportunities; market-rate rental units and affordable Completed: September 2004 rental units on the same block sharing the same underground parking system. The project is a resounding success and is considered the project that jump-started the downtown housing market. • raher"117Xm �A ,, , ,A, ,, COMPANY PROFILE: Development Experience WACOUTA COMMONS 1 iii ., . , / 4 ,,,. is_ _ _ ,........:..... , ,. _ . „._ ._ , - , , , / 0 . . . ..... ,t ,...,„ - . ._ 1 . ... . ii-., ,01 . . . 0•••, ____ ,..... 0 .-- . ,.. : . .. .., ... . , _ __a..., . . ..... , .. - Saint Paul, Minnesota Project Details Wacouta Commons is a multi-phase redevelopment of • Retail Space: Approximately 14,000 sq ft the previously blighted industrial space in downtown • Dakota on the Park/ 38 Units - For Sale Housing St. Paul. The area was redeveloped to include mixed- • Essex on the Park / 38 units - For Sale Housing income rental and ownership housing along with • Sibley Park Apartments / 113 Units - Rental ground level retail space. The multi-faceted project Housing fully revitalized the entire northeast quadrant of • Sibley Court Apartments / 121 Units - Rental • downtown Saint Paul and remains an essential housing Housing component to the city's continued redevelopment. • 9th Street Lofts /49 Units - For Sale Housing • Printer's Row/ 48 units - For Sale Housing • Lyons Court/60 units - Senior Rent • Total Project value: $96.2 million ?�-:; Role: Developer, Property Manager, General Partner } t. 'V41-1 Completed: 2001 through 2006 'Fi, e 3ter: -t# G; Awards and Recognition: -,- ' - ' .. ,d t?ar • 2001 Best in Real Estate by Minneapolis/St. Paul -- * 4a Business Journal•lib tior ` ' }: tl.. -. 11.1, . I A !` z ' ,r . ill rj Sherman COMPANY PROFILE: Development Experience ■ PHOENIX ON THE FAX is F I III 1 1 F �� 1 1 i y i. ' II 1 ! s Ii - Denver, Colorado Project Details Sherman Associates brought its expertise in urban • New Construction redevelopment to Denver with the Phoenix on the • 4,500 Square Feet Retail - Ground Floor Fax project. Located southeast of City Park along • 50 Affordable Apartments Colfax Avenue, and midway between downtown • Project Value: $10.5 Million Denver and the employment centers in the • Financing: Federal Low Income Housing Tax MPFitzsimmons redevelopment area, it represents the Credits, Tax Credit Assistance Program, HUD first new construction development in an area of Insured Mortgage, City of Denver HOME Funds, Denver quoted to have an "infamous" past. State of Colorado HOME Funds. Phoenix on the Fax has garnered the support of The Role: Developer, General Partner, Property Manager Fax Partnership, Denver City Council, Denver Office of Economic Development, State of Colorado, HUD, Completed: February 2012 Colorado Housing Finance Agency, and local investor RBC Capital Markets. The new construction project features 50 affordable rental units and 4,500 square feet of retail space. Completed in February of 2012, Phoenix on the Fax had tremendous interest from renters and leased up very quickly. ID Sherman r . I-"°c I a 1 E` COMPANY PROFILE: Development Experience THE ROOSEVELT /� - F' . ,%� �. P F ;i sew VIO F p- t" — - „(, - __ . E I" f HOTEL GR"e j` - r F I, f ROOSEVELT - -� -- : ..- rr f f- -...u.,-----=---7-,-__:-_,---7, - ;: - f' f 1 Y--+-: r "-'7 ti *- .- . Ali ismoft,t____, . - Cedar Rapids, Iowa Project Details The historic Hotel Roosevelt is a I 2-story masonry • Historic Rehabilitation building located in downtown Cedar Rapids. After • 96 Affordable Apartments sustaining damage from the Flood of 2008, the • 15,522 Sq. Ft. Commercial Space adaptive reuse converted the hotel into 96 apartment • Project Value: $I I.0 Million units with income restricted units at 60% AMI and • Financing: Iowa Finance Authority Mortgage, market-rate units. The second floor houses project Federal Low Income Housing Tax Credits, State • amenities that include a large community room, a fully- Historic Tax Credits, City of Cedar Rapids, EZ equipped fitness center, a laundry room and a business Tax Credit Equity, IFA 1602 Funds center equipped with computers for resident use. The first floor contains over 15,000 SF of commercial Role: Developer, General Partner, Property Manager space, and the remaining space in the basement was converted into additional, secure resident storage Completed: October, 2010 lockers. The historic designation of the building dictated the exterior restoration of the brickwork, the refurbishing of the windows, and the revitalization of the interior corridors and doors. After 12 months of construction, the Hotel Roosevelt now provides four studio, 59 one-bedroom and 33 two-bedroom units with upgraded amenities, including new flooring and fixtures, central heat and air conditioning, and a secure intercom entry system. III raS1 erman )CCI.ATE, COMPANY PROFILE: Development Experience THE RUSSELL LAMSON lat." . r----_ � _. '' I! iii iI i,;ii?,' � `A A» �1 tit II •'i ,,,t -- `� ,'+�' / °" --� M j!ii 1 .� i 1$1 1 I N i k I , _ { +.'�� . PO 10 ,.; 0. ,i!1! ��,,. t [1:fi, +i1 rrilir i 1... ..- - y t/ .rt '=3 ;—. s . Waterloo, Iowa Project Details The Russell Lamson Apartments is an eight-story masonry • Historic Rehabilitation and concrete building originally constructed in 1914. In • 90 Affordable Units that same year, an edition of the Hotel Bulletin refered to • 1 2,105 Sq. Ft. Commercial the Hotel Russell Lamson as "one of the most complete, • Project Value: $15.3 Million up-to-date and modern hotels to be found anywhere on the . Financing: FNMA Mortgage, Federal Low Income 0 American continent. It bears a very favorable comparison Housing Tax Credits, Federal Historic Tax with the best to be seen in any of the largest cities." The building has been on the National Register of Historic Credits, State Historic Tax Credits, EZ Tax Credit Places since 1988. Equity, EZ Sales Tax Rebate Before the renovation began, the building had been Role: Developer, General Partner, Property Manager previously converted into 75 apartment units on floors 3 though 8, with commercial space on the first and second Completed: August, 2012 floors. To minimize the relocation of existing residents, construction was completed in two stages. This allowed approximately half of the current residents as well as all the commercial tenants on the street level to remain in the building during the renovation. The newly renovated building contains 90 affordable housing apartments. The layouts consist mainly of studio and one- bedrooms, with a few two-and three-bedroom units. Within the units, the historic windows were refurbished, kitchens were replaced and bathrooms were upgraded. A new exercise facility was built in addition to a laundry facility. During the renovation, forgotten architectural pieces like the magnificent windows in the lobby were also rediscovered and restored. The end result provided high- demand affordable housing while revitalizing a Waterloo icon. ill � t ' `;}1(`1"i11W 1 _-- ' , ' 1 ' ' COMPANY PROFILE: Development Experience RUM ELY LOFTS ..!____ _._ I, ,, 3 __ _ _ 51 iii. f 0r 1 1, ki ; i 1: ' ' 1; iiil I ll . ; "'• I I' f 1. 11 .411 i ri3 I�i q _it Des Moines, Iowa Project Details As a historic landmark in downtown Des Moines, this • Historic Rehabilitation six-story structure was transformed into 66 affordable • 66 Affordable Units apartments and approximately 7,000 square feet of • 5,345 Sq. Ft. Commercial retail space. The building boasts a large 1,500 SF • Project Value: $17.1 community room and is accompanied by a computer • Financing: Iowa Finance Authority Mortgage, 0 learning center, a fitness center and an on-site leasing State Historic Tax Credits, Federal Historic office on the main level. Bike storage and surface Tax Credits, Federal Low Income Housing Tax parking is also available at the site. Credits, Other Funding Sources The units provide historic details coupled with Role: Developer, General Partner, Property Manager modern finishes. Original windows were restored and provide wonderful views of downtown and the Completed: October, 2010 surrounding area. In addition to the historical details of the apartments, residents enjoy unit upgrades that include in-unit washer and dryers, dishwashers and sink garbage disposal systems. S ra_Sher man A S,O C I A T E S COMPANY PROFILE: Development Experience METRO LOFTS # \ i: r t iomamo, .,...., • 1.,i*,--1 --,,verni //i/r7,- cri i I \ . -,-:, iiipa-- .7., 1 \ 141): .1/4_, ....t, ipp, , __ -414.00.."- '), :414411/4._ .... „1" il i i i --- Des Moines, Iowa Project Details Located in downtown Des Moines, Metro Lofts is a • New Construction four-story new construction development with a total • 102 Affordable Units of III apartment units. The building offers an amenity • II Market-Rate Units package including a large community room, fully- • Project Value: $21.0 Million equipped exercise room, a computer learning center, • Financing: HUD Insured Ist Mortgage, Federal 1 wunderground parking, secure entry, and an on-site Low Income Housing Tax Credits, IDED - EZ Tax leasing office and manager. Credits and Sales Tax Credits, IFA 1602 Funds, City of Des Moines, Other Sources The apartment units have modern, durable finishes. Residents enjoy central air conditioning, in-unit Role: Developer, General Partner, Property Manager washers and dryers, high-speed internet connection, energy-conserving fixtures, and an additional interior Completed: December, 2010 storage closet. Select units have walk-in closets, patios or balconies. With downtown Des Moines right outside its front door, Metro Lofts offers quality affordable housing in a convenient location. I rsherman ASSOCIATES COMPANY PROFILE: Development Experience LONGFELLOW STATION i • - ,_ _:ti,,-„,,.„ , I .0r vi H k , 1--"I':::' . . .4., la . I :_., I 0 1 ,.. ..,.-,‘ - ,... „ I , . 4_ -, : , .. j! 6 , tf II ! } y t 1: it i Minneapolis, Minnesota Project Details Longfellow Station is a 180-unit transit-oriented • New Construction development located along the Hiawatha Light Rail • 180 Rental Apartments Line in Minneapolis. Located within the mill district of • 10,000 SqFt Commercial / Retail Space the Longfellow Neighborhood, Longfellow Station will • 36 Market-Rate Apartments appeal to families and single adults that rely on public • 144 Affordable Apartments transportation to connect them to employment and • Project Value: $28.3 Million • educational opportunities. It is conveniently located • Financing: US Bank Construction Loan, Mass Mutual a few miles south of downtown Minneapolis with 1st Mortgage, Low Income Housing Tax Credits, easy access to major job centers such as Downtown MHFA Challenge Fund, Family Housing Fund, Minneapolis, Mall of America, The University of Affordable Housing Trust Fund, Minneapolis CPED Minnesota, Fairview-Riverside Medical Campus, and Deferred Loan, Hennepin County Affordable the Minneapolis/St. Paul International Airport. The Housing Investment Funds, Met Council Livable development of the Central Corridor Light Rail Communities Demonstration Funds, Line will give additional benefit to the residents of Longfellow Station when completed. Role: Developer, General Partner, Property Manager Emphasis in the design process has been placed on Anticipated Completion: November, 2013 unit and common area amenities in order to compete with market-rate product in the area. Units feature open layouts, dishwasher, in-unit washer & dryer, a built-in office niche, and fiber optic wiring. Common area amenities include a community room, coffee area, business center, fitness room, theatre room, bike repair area, bike storage, heated underground parking, a dog run, and tot-lot. Project Currently Under Constructions r�Sherman A s s 0 C IAT[S COMPANY PROFILE: Development Experience HARRISON LOFTS • it i E. i.i' I , , , , .,, El Emu '.. ' ;. ii II � , , 1 ;1 Davenport, Iowa Project Details Harrison Lofts is a new construction development • 3-Story New Construction of mixed-use housing and retail located on the 14th • 60 Apartments, 2 Retail Spaces block of Harrison Street in Davenport, Iowa. On the • 54 Affordable Units (40% & 60% AMI) street level, there are two retail spaces positioned • 6 Market-Rate Units along each of the 14th and 1 5th street corners. • 3,100 SqFt Commercial Residential parking is located behind the building, • Project Value: and retail customers will utilize the ample street • Financing: Iowa Finance Authority Mortgage, Low parking on 14th and 15th Street. The community Income Housing Tax Credits, EZ Tax Credit room has a large area for tenants to gather or watch Equity, EZ Sales Tax Rebate, City of Davenport television, and also provides workstations complete NSP Funds with computer and internet access. In addition to the community room there is a fully-equipped exercise Role: Developer, General Partner, Property Manager room and a laundry facility. The building will also have an on-site leasing office and is fully-equipped with a Anticipated Completion:July 2013 24/7 monitored security system. The 60 apartment units consist of efficiency, one- bedroom and two-bedroom layouts. As a mixed- income building providing affordable housing, the project targets single individuals and families. The units feature high quality interior finishes and amenities such as high ceilings, oversized windows, in-unit washer and dryers, energy efficient fixtures and appliances, and additional tenant storage. 111111 Project Currently Under Construction ��sIRTIMIU .,°` " ' `, COMPANY PROFILE: Development Experience • Public Profile • 4111 FINANCE&COMMERC E Novocracac CreClttGvZSO7 FINANCECOMMERCCOM„_ t a Tel Cr i . Journal ar C Rehabbing Riverside—Tills islnfcty =wd.Anaysts as,anmenary n lydale Ras Pa Lamgoly O•e anela/ax l5s . ILvd12011.y .Bs,:Id Published by Kavebrads 8 fanny LLP BY MARK DE ON ' Developer Begins Makeover of Largest Affordable m l < • " .e�ervatio Today Riverside Maaa l r+ E-ating the Future from he Pa.51" Housing Development in Minnesota complex in y, 9 AlumeaRolte West newaaxy.n� - ti _ I ; t---..bast-By Jennifer Dockery,Assignment Editor,XOVO radae BCo George Sherman - t'' ;/t N. 9 A Company LLP eda put and g. nd- - I I it Deja Vu I R oboe rob e.rce wv k o pl I ,. psi Wednesday '"a EI 1 1 I Minneapol wd w a; r, of lie Ian a .,i s- Nr . . ban De. IN )revitalization n - banding J • 1 a! e'` New Town..Tow,which ova Anon _.r and own, dw 'E I �.idro...Me d R"Minneapolis,t.:,, Wad�.� y ar ■1: .:,,, MI ai ti i 2011 the a Mary Tyler MOaei character in Mta aA,maot _ 'a - E •'has is the edyu, ti - :f; i \ NI 1 Premier LINT oe gMw-yet.within 'vats of.n )a '- M� Ile Ma�Tyl-M�« • cnrlde ,,....,m ( I .t'..►', 41 Ii 1 Development Ivn rom�plee.a,,u,eae,efepmentnad fallen wbabtimes director or me .1 l+ f, HUD had s...yy-d lM New Town plan.The development Minneapolis PAGE water fared hennan doer rem a,:of er aer ks In ' and tY Planning !. l N, . 198s,5hwan ASSarausaM others low- • and Economic ig/' income housing tae credit■urlrq pros - he 1 _ Development agency •l �'' �r I Sleuthing th po�Iora comeback a will a4 lead I"M helped ._ k t I Market Stud location of UHT.,along with to and federal historic tax �,- Wedresd»M he is - ''''.4°-i!�•- ,� J - PAGE credits lrOCSk aaegt (1a ,a RUO loan and ,wale that nena- Mae a,dshmcn fbrirentorol M niamulls Community Mavens EC "DeveMpene.Met,and - �_ ' M a Jr other public and private f complete a fIM mil- evm Wxu\leg Rank tar makeover of.1,303-unit de.Hapmem .r .. rc,lwrhood bas Iona George.Mrtwlpes.ent or Merman Assocates...bin some or Su renovations at...de Plaza �" heen Mnmwzporni wd:l•••••ge•r•we•l•rK ni.(starrphoto:sy Klotz) 1 j`+'f i ,O. ee.-.,-.m.-.-_ gaze a9s.,...A.m.. gateway for intent - Sherman Associates The following pages highlight some of Sherman Associates' recent awards and press coverage. More can be found at www.sherman-associates.com/media-center. • &sherman ASSOCIATE S COMPANY PROFILE: Public Profile Awards and Recognition 2012 Best In Real Estate - Multifamily Development or Redevelopment: Riverside Plaza 2012 Minnesota Public Health Achievement Award: Sherman Associates 2012 Property Excellence Award - Senior Housing: Blaine Town Square Senior Apartments 2012 Property Excellence Award -Affordable Housing 101+Units: Midtown Exchange 2011 Lifetime Achievement Award - Minneapolis/St. Paul Business journal: George Sherman 2011 Capstone Award - Multifamily: Grand Boulevard Lofts 2011 T. Timothy Anderson Award for Best Historic Rehab Involving LIHTC Finalist: Grand Boulevard Lofts 2011 Honorable Mention for Historic Rehabilitation: Grand Boulevard Lofts 2010 Property Excellence Award-Affordable Housing 101+Units: Midtown Exchange • 2009 Best of the Decade by Minneapolis/St.Paul Business Journal: Midtown Exchange and The Chicago Lofts 2008 Development of the Year: Syndicate Trust Building,St.Louis 2007 Affordable Housing Finance Magazine:Best Historic Rehabilitation: Midtown Exchange and The Chicago Lofts 2006 National Trust/HUD Secretary's Award for Excellence in Historic Preservation: Midtown Exchange and The Chicago Lofts 2006 Project of the Year:Adaptive Reuse by Multifamily Executive Magazine: Midtown Exchange and The Chicago Lofts 2005 Best in American Living by Professional Builder Magazine: Midtown Exchange and The Chicago Lofts 2005 Trillium Award by Builders Association of the Twin Cities: Midtown Exchange and The Chicago Lofts 2004 Best in Real Estate:Best Overall by Minneapolis/St.Paul Business Journal: Midtown Exchange and The Chicago Lofts 2003 Best in Real Estate by Minneapolis/St.Paul Business Journal: Falcon Heights Town Square 2002 Best in Real Estate by Minneapolis/St.Paul Business Journal: Burnsville Heart of the City 2001 Best in Real Estate by Minneapolis/St.Paul Business Journal: • Wacouta Commons r �,}lt`h1llw °� °` L t COMPANY PROFILE: Public Profile CreditAdvisor eservation Today sting the Future from he Past .-. Low-Income r: ' • r: I ' zoh . a1■ Dovebpmena p The Second Time Around ` r'_ a S thing th. rt.- Historic Minneapolis Housing Complex Under Redevelopment With Fresh Tax Credits ° ` i s he oversees his biggest project ever, A Minneapolis developer George Sherman is liv- and in need of rehabilitation. "We had known for a period of time ing out one of Yogi Berra's old lines It's déjà vu that the property's mechanical systems all over again. had to be replaced,"says Sherman. "Our first experience with low-income housing tax "The plumbing, both in domestic and I- credits was on this same project-Riverside Plaza-in hot water systems, had failed to the 1988.We acquired it through a negotiated sale from George Sherman q g g point of having routine emergencies HUD,which had foreclosed on it.And we did a bond and shutoffs and flooding of the buildings, because the transaction using four percent credits.We got a whop- pipes had deteriorated."Tenants often wait for 25 min- ping 50 cents per credit dollar[in equity], paid over a utes to get hot water, letting the water run and driving couple years" up the property's water bills. This time around, Sherman's outfit, Sherman Sherman planned to seek fresh housing credits for a Associates, is re-syndicating and redeveloping the mas- new acquisition/rehab transaction. But the timing was off. sive housing project-1,303 units in 11 buildings occu- "About the time we started to put a game plan pying four city blocks-using various tax credits and together for the rehab of the project and the re-syndica- other resources. "Hopefully we'll be done by October tion," he recalls, "the market for credits evaporated." In 2012,"says Sherman. addition,the massive size and scale of the development The$132 million project will involve more than$60 made it even tougher to win an allocation of 9%hous- million in renovations to the complex,which has about ing credits and to secure tax credit equity. "But that did- 4,500 residents, including a number of college students. n't stop us," Sherman notes. Work includes replacing the plumbing,mechanical, and After considering but ruling out an application for electrical systems;sealing the exterior of the buildings; 9%housing tax credits, Sherman Associates pursued installing new windows and doors; refurbishing all of the tax-exempt financing,which brings 4%credits.The U.S. apartments and common areas;and other improvements. Department of Housing and Urban Development(HUD) Nearly 90%of the apartments will be LIHTC units; agreed to provide a new FHA-insured mortgage, and the rest market-rate.Of the 1,303 units,669 will contin- the city,state,and others committed to provide$15 mil- ue to receive project-based Section 8 rent subsidies. lion in gap financing.The new HUD Section 221(d)(4) After completion,the projected initial monthly gross loan, nearly$50 million and funded by bond proceeds, rents for the LIHTC units will range from$545 for effi- has a 42-year term and fixed interest rate of 5.895%. ciencies up to$1,295 for three-bedroom apartments. But even with all these funds, Sherman still came up Market-rate rents will range from$795 for one-bed- short. "That still left us with a thirty to forty million dollar rooms up to$1,595 for four-bedrooms. gap. So we took the unusual step of looking at whether The improvements could cut the development's a 35-year-old building could be declared historic." annual utility costs-now nearly$3 million,or 28%of It's rare for a building less than 50 years ago to be annual operating expenses-by$500,000 to$1 million. certified as historic by the National Park Service. But As with other pre-1990 LIHTC transactions, Riverside Sherman Associates succeeded after just six months, Plaza wasn't subject to a 30-year extended use commit- and Riverside Plaza was listed on the National Register ment,but rather just a 15-year compliance period.After of Historic Places in December 2010. the compliance period expired, in the 2000s,Sherman Constructed during 1971-73, Riverside Plaza was Associates continued to operate the complex as afford- designed by well-known local architect Ralph Rapson, able rental housing. But by now,the development was Riverside,continued on page 4 www.housingonline.com June 2011 ■ Tax Credit Advisor 3 • rrsherman A S S O C I A T E S COMPANY PROFILE: Public Profile ■ Low-Income Housing Tax Credit • Riverside,continued from page 3 Riverside Plaza—Source and Uses Summary and reflects modernism and brutalist architectural styles. SOURCES The buildings range from two to 39 stories, and are 70% Tax-Exempt Bond Proceeds/HUD 221(d)(4) $49.950,000 concrete/30%glass with colored glass panels. Mortgage-City of Minneapolis,AFL-CIO Also significant is that Riverside Plaza (originally Housing Investment Trust Cedar Square West) is one of only two projects(the 4%Low-Income Housing Tax Credit Equity $29,106,635 - other is Roosevelt Island in New York City)built and AEGON USA Realty Advisors LLC Federal Historic Tax Credit Equity $14,767,244 funded under HUD's "New Town, In Town" initiative. -AEGON USA Realty Advisors LLC Under legislation enacted in 1968 and expanded in 1970, State Historic Tax Credit Equity $14,126,603.04 the U.S. government provided funding to encourage the MHFA-PARIF Loan $7,016,350.00 development of four types of"new communities" across MHFA-EHDC Loan $5,083,650.00 the U.S.The "New Town, In Town" communities, one of Family Housing Fund Loan $200,000.00 these,were to be very large self-contained mixed-use CPED-AHTF Loan $1,900,000.00 rental communities or "urban villages" with tenants of Met Council-LHIA Loan $575,000.00 low to high incomes. GMHC Loan $1,300,000.00 "This was just to be the first phase of a 10,000-unit Seller Note $2,000,000.00 project," says Sherman. "They only built the first 1,300 Rebates(Xcel/CenterPoint) , $400,000.00 units before both the funding stopped and the financial Cash Flow from Operations for Development ....$2,962,909.48 model stopped working." Underwritten for the larger, Deferred Developer Fee $3,000,000 ultimate size, Riverside Plaza struggled financially from Total Sources $132,388,393 the start and HUD foreclosed on its mortgage in 1987. USES AEGON USA Realty Advisors LLC purchased the Acquisition Cost $41,300,000.00 federal housing and historic tax credits, placing the Construction+Construction Contingency $65,030,914.00 • investment in a proprietary fund for investor Google and Architectural/Engineering/Legal Fees $2,640,000.00 providing nearly$44 million in equity.The developer Construction Interest $4,300,000.00 elected to receive about$14 million in cash from the Other General Development/Financine Fees $3,728,479.00 state in lieu of claiming the state historic credits. Relocation $2,250,000.00 The city of Minneapolis issued$69.9 million in tax- Reserves $5,139,000.00 exempt bonds, of which nearly$50 million funded the Total Development Cost $132,388,393 HUD mortgage, and provided nearly$2 million in afford- MHFA-MinnesotaHousingFinanceAgency CPED-City of Minneapolis Department of Community Planning and able housing trust fund monies. Other sources of soft Economic Development funds included the Minnesota Housing Finance Agency PARIF-Preservation Affordable Rental Investment Fund EDHC-Economic Development and Housing Challenge Program (two loans),the Family Housing Fund, and the Greater AHTF-Affordable Housing Trust Fund Metropolitan Housing Corporation. GMHC-Greater Metropolitan Housing Corporation Tom Streitz, of the City of Minneapolis Department LHIA-Metropolitan Council Local Housing Incentives Account-Metropolitan Livable Communities Act of Community Planning and Economic Development, praises the Riverside eitit-- , . Plaza renovation project and says it is able housing and market-rate housing meet, and an l' t ;. needed, estimating the local affordable important architectural symbol and an important symbol Arental housing vacancy rate at around to the immigrant community of Minneapolis.There's a 1%. "It's absolutely fantastic; it's some- lot of value embodied in those buildings." Tom Streitz thing that needed to happen." Riverside Plaza and the surrounding neighborhood He noted, "The city's investment and the other are home to many East African immigrants.The neigh- investment that's going into this building is a huge state- borhood already has a station on one existing light rail ment about what we see as the future of this neighbor- line, and a second light rail line will be coming through hood being a transit hub, being a place where afford- in the near future. TcA • 4 Tax Credit Advisor I June 2011 www.housingonline.com r&sherman A S S O C I A T E S COMPANY PROFILE: Public Profile businessinsider S 0 TARTRIfIJNE COM/bl1StNIs l • SECTION 0•MJNDAY.APRIL 11.2011 The industry veteran has weathered the real estate recession and managed to hang on to a$1.3 billion portfolio. ail •lal Muir ._1_, IT --111 LLIzii -I- - ts- 1 !L. _,-- R T - til_ r I (' ...k _. f "` 1‘11:111111klit , _ . . MHO IMYInatenvoTa•ar.arw•.rw.r;canal.r...Li. Developer George Sherman this march officially wdl break ground on the S 132 million overhaul of Rive Hide Plana In Mlnneapoia The patient developer III ON NOSINESS NEAL ST.ANTHONY Sherman,5:,an analytical biochemist by tie had to sell dozens of condos In the Twin trairtinp.has a lighter wallet these days.But he Cities,and 35 ituuty houe•rs thrw*Ch an Ill-fat- Four year.into a real estate re. 1;111 has a fwurr as a developer- ed foray Into Mat Sprinto,rank_(or as little as _, 'cession that's busted developers His diversified portfolio of rental lousing, SI)cents on the dollar.But so far Sherman has from the urban care to the corn- commercial buildings and hotels,most of it in not lost arty major properties to his lenders.lit i Acids. GeorfC Sherman 11 still urban center+of Mieuwapnib•St.doll.Ruluth knows ttk marked,keeps a conservative debt- standing. Des Moines and St. Louis.has lost several to-equity ratio that approaches 50 percent and -If t had to do it over again,I would have hundred million in value.Arad his lenders re- has demonstrated an ability to restructure deals stopped huilditsg saanrt and sold mcer fastrt: quir f Mien in 2titkt-OU to inject about 533 mil- outai4e of msorinMms,whkh these days are said the veteran developer and project owner-'i lion through asset sales and equity Into a port. clogged with lawsuits among developers,con• was fortunate.I had at knst one tire getting trac- folio that he estimates is still worth more than ;:nn throughout,- 51.3 billion, ftswm.n teetinw.an Ill• • T&sherman ASSOCIATES COMPANY PROFILE: Public Profile SHERMAN Y•GN DI _ Cities'higgest developers of sub The financial package got trac- sidired and workforce housing. tinn last December when the IS- inteit rs.lenders and ti-mtms. This mOtAlli he officially will break building Complex was grained sta- lids been donnish tough dm's ground ws M1S4uecvMa a biggest.0'. bus at the Nst►oris)Rcgturr of Hts• std he's more sophisticated than a er residential-project restoration. toile Places.'The designation en- lot of developers;saki Jim White, The SIR million overhaul of Riser- tailed Sherman to raise$78.9 mil- a former Mlsmcspalla development aide l'l.t,a near the U of M'a West Iletn in federal and state historic its official who vtatched Sherman due- t flank campus,a dew/omen'that's credits that he sold to investors to lug she 19804 and 1990s."lie was al- challenged and intrigued hint since help finance the project. ways,willing to do what was need- he and minority partner bought the To make the financial package cd when the cities needed develop- fumtcrcedar 5tptare West from the work,Sherman,under some pees. u ,. federal government fur S17 million sure fount critics.effectively cut Iris memo dune." in 1cM. devehynrwnr foe from Sit million to Sherman got in early and deep + r t 3U years ago as Minneapolis and airy" 'the then•contro eraul complex S.million,Sherman is buying out St.Paul used incentivees to redevel- - was horn in the early 1970s as a fed- other minority partners in the deal up their ateanddrrnl.polluted river- - entity hscked urban renewal effort aril adding Gong's-WS alimited pail- rronrs and riirnc'd skid rows Imo up •t. to help replace slums.Hut critics ncr through Its foundation.lie also scale art-and-entertainment nooks, �_ ,, called the complex a Soviet•styk has agreed to take the balance of the and upscale housing. is! maid of several towers around a devehpmw t fee over several years On a whim in 1978,while work- central courtyard and insduur cone out of cash flow from the prnket. irtg in sales for a medical compa- owls arrests*•dr,ssootpuoutw..ma nuttily rooms that house charter 'George does good work"said try,he borrowed S100,000 from US. schools and nonprofits.The corn- Tom Simile.the Minneapolis haus- Hank 41111 has primary lender,and GEORGE E.SHERMAN pkx hnaus 1,)00 apartments (or ing director who once negotiated bought a small Uptown apartment Age 57 ownearShen..an Associates students, immigrant families and with Sherman as a pining Legal Aid building,refurbished it and sold the tdarattont n.5.bsxhemistty 1976;MMA 1977-ahnlverady of Minnesota workers. lawyer. units as condominiums,stowing eat++nShenrun maned auytngarufceun nringU tawnMinnexpeilsavast. Wits-ti iutiertn.in took ovet,IT was Shermanhasapert.nnrleonnes-- about SI60,000. !bent bmddings into condominiums In1978;he built now townhouses on mostly Vietnamese and lirnong. tion to Riverside plaza.He knows "I had no idea what I was doing," the wiled former public housing on Mtnzwapobitsear North Side at 1979-31. Flow,the immigrants are;nosily So- immigrant kids who grew up to be Xlwrtrutn n'ealkd.Yet lit quit hit day Hrkknowntoturbanreewalstro Jett.that often indude public financing null cabdrivers, cnrpentets. skrcioss, Mb to(ocus on real estate projects. Today.Sherman employs 35o people whodevelup and nonage Sherman, Sherman is using a myriad of lawyers and businesuncr 1 like getting the numbers to owned apartment nail dings.tommercsalbuNdmgsandseveralhotels in public and private sources to fl- Tive lire coniptos inchides day canes, c work'said Sherman,a trim logger, Mirvteapolas.SsPac d,thdutkltwtttvtUr-Un Manses swift Lout*Sher- nonce nentwation,1k got a boost In a chance school.employ/twin ern- who grew up the son of a doctor ManvaMeathepart fole,atmarethanS1.1bluer- February when the ML-Ct1)Host- ier.eotnmumlW rooms itrid is tenants whose early death was tied toamok- Not abia preplan The 5131rntlllonongwng renovation o fl,3wo•usihRiver- big investment Trust committed association that Slwrman funds at lint and drinking.Sisertnati ttasabt- sidePlata(Cedar-Riverside)InMinneapolit.ihe$63mIUion Aloft Mtn- $50 rnulluoit in.imeiiakmst(rtttda to help about 5150,000 a year. stained for 2dd Yeats,weafA AS35 rtml• rtrApuhls Holel,2eawhCawlomirtWmsHMO near thtGu 9ule llrestti ah finance a restoration that WM rm. 'iktmy years age..the tenants ner's watch and drives a 10-year-old Washington Avenue;the 55S ma h=refmLlshmentof Duluth's(reysclon ploy hundreds of workers os-er the needed social services,' he said. Audi that spans 230,000 miles Plaza and canstrectionof the Sher-Men Duluth Hotel(20Ork the 577 million nest two years.The betiding-by- 'The 1401101 years I it has been edu- ShermanIsapoliticalindepen- Midtown ferhsngeApaflmentaandttdca}p Lofts Inthr former 5esn.Roe hnlldings crhaulwillIncludenew cation and empioyment.- dent who voted for independence buck butldtngois Stake Stied InMlnrmeapolts fiOUtrls and the 596 ryALon energy,mechanical,plumbing and Cecik itedmmr.the planning direr' Party candidate Tom Horner for WacoutaCominombowing-retallcompkxmdow'ntownit.Fau1(1001-0('1 kitchens. tor in St.Paul who once was an in- governor.Ile generally avoids po- Sherman phis to cut RIveceide'a ner-city housirgt developer.called litical contributions to municipal S3nsillionatuuulutditybill by alhird Sherman a patient des'ekiper. candidates.lie has contributed to fatuity and close associates. tune renovations of old buildings,in- and create amucltbctter place tolive. George works Works with the cennunu- Riptaislie-aits,lneli,miltig roomer U.S. `Orsehaps•rs have egos' am:- ctudityt his headquarter*at 2,13Pack Ik said the project has thrown off pity and the city."Iloilo/said,`He Sen.Nnrm Citiesnan and Gov.Tim kneiwledged Sherman. 'My ego Av.S.,where the Old Spaghetti roc, less than S2 million inrush flow over doesn't storm in and say,'If you Pawlenty may be quieter.but I Irke getting a tory Is the first-floor tenant.The of- the years,while requiring about$13 don't do this,I'll raise hear'He keeps Sherman and his,wife live In a good proncet to work.I like to have flees of Sherman and Associate*oc- million anrntally in repairs. hi*cool,lie wants to make money. house they paid SI million for now an impact.- copy the upper foot- 'We had to get ahead of this,- but he's In it for the lorsg Furt1- Interlaclren Country Club a decade Sherman has done upscale con- Sherman said."We were using the agog.Ile reads*tut,watcheedu Ilia- do projects on the Mississippi Riv- Major ra ovtttoa cash tltm'toctstwlantty(ix the prop- rwalsr.AMMO/•Cain nun, • tory Channel and hangs own with et.new housing projects and signs. Sherman also is one of the Twits coy." eu.+gnwrrualnag.oboe • Qsherman ASSOCIATES COMPANY PROFILE: Public Profile \tio'vogradac 0 .1 1 i 0 1 f Tax Cre 1 ,_, 1 ,,,,;„ 1 �e ,,Analysis and Commentary On Affordable Housing, Community Develof JilBlliilii' fia, ewable Energy Tax Credits 9y March 2011,Volume II, Issue III Published by Novogradac&Company LLP Developer Begins Makeover of Largest Affordable Housing Development in Minnesota 9 By Jennifer Dockery, Assignment Editor, Novogradac & Company LLP Riverside Plaza Apartments' colorful exterior repre- ►: 1 TM sents a colorful past.The apartment complex was the � 6 .;vti first phase of a U.S. Department of Housing and Ur- ' 1 ban Development(HUD) revitalization program known as -f i ' New Town-In Town,which planned to create a 12,000-unit .. - ^^ i 1 I mixed-income "utopian village" in Minneapolis, Minn.'s i 1. 1 Cedar-Riverside neighborhood. It was also the fictional I „ y - +►t i= home of Mary Tyler Moores character in later seasons of .% _ 1 - ISO The Mary Tyler Moore Show. Yet,within a few years of its '- _ 1 „ s• 1973 completion,the development had fallen on hard times. _ r te - " HUD had scrapped the New Town plan.The development .1� � 7,..- _ faced water shutoffs,rent strikes and mortgage defaults.In ..), -. - =_f 1988,Sherman Associates and others used the nascent low- q, . income housing tax credit(LIHTC)program to acquire the R development. Twenty-three years later, Riverside Plaza is ` - " poised for a comeback. Sherman Associates will use an al- location of LIHTCs,along with state and federal historic tax credits (HTCs),tax-exempt bonds (TEBs),a HUD loan and +l , ,=,,A other public and private financing to complete a $132 mil- • ,‘"•-,.,•• * 1 xt lion makeover of the 1,303-unit development. • it Photo:Courtesy of Sherman Associates A Storied History Riverside Plaza Apartments,originally called Cedar Square West, Architect Ralph Rapson designed Riverside Plaza,originally was built in the 1970s as part of the U.S.Department of Housing and called Cedar Square West,in the Brutalist style,which was Urban Development's New Town-In Town initiative. popular from the 1950s through the mid-1970s.Since acquir- choice vouchers.The campus includes a K-8 charter school, ing the 11 buildings,Sherman Associates has improved the grocery store and tenant resource center that provides social buildings, increasing the number of elevators in the 12- to services to more than 400 individuals each month. Many 40-story highrises and installing life safety features, such tenants attend the adjacent University of Minnesota or have as sprinklers.At present,Riverside Plaza houses more than recently arrived from Somalia. 4,400 people in mixed-income units; the development has 669 project-based Section 8 units and 634 market rate units. A Gargantuan Task Many residents of the market rate units also receive housing According to George Sherman, principal and founder of continued on page 2 r r� Sherman ASSOCIATES COMPANY PROFILE: Public Profile z continued from page 1 Novogradac Journal of Tax Credits C ° Editorial Board O 401...., PUBLISHER C Michael J.Novogradac,CPA a —1 MANAGING EDITOR 4 • Alex Ruiz , EDITOR C Jane Bowar Zastrow 73 , 444:%■ z TECHNICAL EDITORS Robert S.Thesman,CPA r �, / James R.Kroger,CPA G v f ftritte, ,0 Owen P.Gray,CPA -n ,� Thomas Boccia,CPA Daniel J.Smith,CPA >G 44;?;:.-e, , ri- ,I. CD "` ` ASSIGNMENT EDITOR � Jennifer Dockery rn GI STAFF WRITER —I Rendering:Courtesy of Sherman Associates Jennifer F WRITER I CI) Sherman Associates, putting together financing for Riverside's CONTRIBUTING WRITERS redevelopment was a gargantuan task; its size prevented Sher- Thomas Boccia,CPA Forrest Milder man Associates from applying for 9 percent LIHTCs and to reno- Jing Chen,CPA Lindsay Sutton vate its 1,303 units,the developer would have needed double the Brandi Day Annette Stevenson,CPA state's annual 9 percent credit allowance. Riverside also has the Brad Elphick,CPA Amanda Talbot,HCCP G.Tyler Gibbs,CPA John M.Tess most units of any property under a single HUD mortgage to date. James R.Kroger,CPA Stephen B.Tracy,CPA Peter Lawrence "Its greatest challenge has always been its size. It doesn't fit into John Leith-Tetrault any square or round hole,"said Sherman. PRODUCTION Jesse Barredo Sherman Associates worked with HUD,the state housing finance James Matuszak agency,the city of Minneapolis and others to obtain funding for the $132 million redevelopment. The city awarded 4 percent LI- Novogradac Journal of Tax Credits HTCs and TEBs to the property. AEGON USA Realty Advisors Information LLC (AEGON) provided$29 million in LIHTC equity and AFL- Address all correspondence and CIO Housing Investment Trust(HIT)invested in the TEBs,which editorial submissions to:Alex Ruiz/415.356.8088 were used to secure a nearly $50 million HUD-guaranteed first mortgage. Funding also came from the Minnesota Housing Fi- Address inquiries regarding * nance Agency's (MHFA's) Economic Development and Housing advertising op oportunitieS to: * Challenge program— approximately $7 million;MHFA's Preser- vation Affordable Rental Investment Fund program, — approxi- Editorial material in this publication is for informational 0 mately $5 million; City of Minneapolis affordable housing trust purposes only and should not be construed otherwise. o fund—$1.9 million;Greater Metropolitan Housing Corporation— Advice and interpretation regarding the low-income CD housing tax credit or any other material covered in this C $1.3 million;Metropolitan Council's Local Housing Incentive Ac- publication can only be obtained from your tax advisor. CA count program—$575,000;and Family Housing Fund—$200,000. 2 The remaining capital came from a$3 million deferred developer NOVO G RADAC fee,$2 million in seller equity,nearly$3 million in cash flow-open- ♦ & COMPANY LLP® ations for the development and$400,000 in energy rebates. ♦ CERTIFIED PUBLIC ACCOUNTANTS ©Novogradac&Company LLP "The key for us ... was getting HUD involved early in the scope 2011 All rights reserved. Co"s of the rehab,' said Ken Dayton, executive vice president of Oak ISSN 2152-646X Grove Capital,the HUD mortgage underwriter/lender. ND C3 Reproduction of this publication in whole or in part in any form without written permission from the publisher is "From the city's perspective, this project was about enhancing prohibited by law. . continued on pare 3 rrsherman ASSOCIATES COMPANY PROFILE: Public Profile Novogradac Journal of Tax Credits continued from page 1 the quality of life for the residents," said Matt Goldstein, senior C Advisory Board c LOW-INCOME HOUSING TAX CREDITS project coordinator for Minneapolis's community planning and < Bud Clarke BOSTON FINANCIAL INVESTMENT MANAGEMENT economic development's multifamily housing development divi- 23 Jana Cohen Barbe SNR DENTON sion."The project is consistent with the city's goals and policies.It CZ Tom Dixon BOSTON CAPITAL earned the most points of any project that requested money in the n Valerie White STANDARD&POOR'S CORPORATION 2010 round."He said Riverside Plaza received the points because Rick Edson HOUSING CAPITAL ADVISORS INC. it is a mixed-income development, preserves existing units, has C Richard Gerwitz CITI COMMUNITY CAPITAL a longer than required affordability period and because "every 71 Rochelle Lento DYKEMA GOSSETT PLLC public dollar leverages significant private investment" Sherman a John Lisella U.S.BANCORP COMMUNITY DEV.CORP. also agreed to hire 90 workers from the surrounding community. r" Phillip Melton GRANDBRIDGE REAL ESTATE CAPITAL The redevelopment of Riverside Plaza also fits into a larger im- G m Thomas Morton PILLSBURY WINTHROP SHAW PITTMAN LLP provement plan for the Cedar-Riverside neighborhood.The Min- -. Stephen Ryan COX,CASTLE&NICHOLSON LLP a neapolis Public Housing Authority renovated units at The Cedars X Arnold Schuster SNR DENTON in 2010 and the city is building two light rail transit stations on C7 Rob Wasserman U.S.BANCORP COMMUNITY DEV.CORP. the site's perimeter. 73 m CI PROPERTY COMPLIANCE After securing the LIHTC and bond allocation,Sherman Associ- Rose Guerrero CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE Sharon Jackman SIG SERVICES LLC ates sought out a tax credit syndicator or investor that would be Michael Kotin KAY KAY REALTY able to invest nearly$34 million in LIHTCs. "It's complex,but it's Michael Snowdon MCA HOUSING PARTNERS an important project for the city. AEGON has the ability to take Gianna Solari SOLARI ENTERPRISES projects of a size that other syndicators may not be able to accom- Ruth Theobald Probst THEOPRO COMPLIANCE&CONSULT.INC. modate," said Anne Simpson, director in AEGON's Community Kimberly Taylor HOUSING DEVELOPMENT CENTER Investments Group.AEGON combined Riverside Plaza's LIHTCs and HTCs into an equity fund that includes Google Inc. as an HOUSING AND URBAN DEVELOPMENT investor. Sheldon Schreiberg PEPPER HAMILTON LLP Monica Sussman NIXON PEABODY LLP The National Park Service(NPS)added the 38-year-old Riverside Plaza to the National Register of Historic Places on December 28, ail NEW MARKETS TAX CREDITS 2010. The NPS agreed with Sherman Associates assessment that, Frank Altman COMMUNITY REINVESTMENT FUND as one of the few remaining New Town-In Town developments, Bruce Bonjour PERKINS COTE LLC the Rapson-designed complex is significant to the country's his- Neil Kimmelfield LANE POWELL torical record. The National Register designation qualified Riv- Marc Hirshman U.S.BANCORP COMMUNITY DEV.CORP. erside Plaza for federal and state HTCs. "That's helped raise $28 Scott Lindquist SNR DENTON million in additional equity,"Sherman said. Ruth Sparrow FUTURES UNLIMITED LAW PC Herb Stevens NIXON PEABODY LLP AEGON provided nearly $15 million in equity for the federal Mary Tingerthal HOUSING PARTNERSHIP NETWORK Tom Tracy HUNTER CHASE&COMPANY HTCs through the same fund that provided the LIHTC equity. Joseph Wesolowski ENTERPRISE COMMUNITY INVESTMENT INC. Riverside Plaza is also one of the first properties to receive credits through the Minnesota Historic Structure & Community Rein- C HISTORIC TAX CREDITS vestment Tax Credit program. The state Legislature created the 0 co ., Don Holm FARRIS BOBANGO BRANAN PLC program last year to encourage redevelopment. Under the pro- e ram Riverside is eligible for a 20 percent tax credit that Sherman John Leith-Tetrault NATIONAL TRUST COMM.INVESTMENT CORP. gram, g� I' 0 Bill MacRostie MACROSTIE HISTORIC ADVISORS LLC plans to return the state for a grant equal to 90 percent of its value, 3 .;y Donna Rodney BRYAN CAVE LLP or about$14.1 million. "We were struggling with gaps in the proj- John Tess HERITAGE CONSULTING GROUP ect....The state historic credit was absolutely critical.It really got the gap completed and got the project closed,"Sherman said. RENEWABLE ENERGY TAX CREDITS Ed Feo USRG RENEWABLE FINANCE Financing for Riverside Plaza closed on January 6 and construe- s ,: Michael Hall BORREGO SOLAR SYSTEMS tion began on February 1. Workers will replace the domestic '4 ..., Jim Howard DUDLEY VENTURES water, sanitary sewer systems and mechanical systems, as well ::;--r Forrest Milder NIXON PEABODY LLP as individual unit remodels. Sherman Associates plans to repo- Darren Van't Hof U.S.BANCORP COMMUNITY DEV.CORP. continued on page 4 1&sherman A S S 0 C I A T ES COMPANY PROFILE: Public Profile continued from page 3 Cvate between 60 and 100 units each month. During the units at the property.Sherman anticipated that the reno- renovations,residents will move into furnished "hotel" vations would be completed by December 2012.V. This article first appeared in the March 2011 issue of the Novogradac Journal of Tax Credits. O ©Novogradac&Company LLP 2011 -All Rights Reserved Notice pursuant to IRS regulations:Any U.S.federal tax advice contained in this article is not intended to be used, and cannot be used,by any taxpayer for the purpose of avoiding penalties under the Internal Revenue Code;nor is any such advice intended 0 to be used to support the promotion or marketing of a transaction.Any advice expressed in this article is limited to the federal atax issues addressed in it. Additional issues may exist outside the limited scope of any advice provided—any such advice does not consider or provide a conclusion with respect to any additional issues. Taxpayers contemplating undertaking a transaction should seek advice based on their particular circumstances. rn This editorial material is for informational purposes only and should not be construed otherwise.Advice and interpretation re- ygarding property compliance or any other material covered in this article can only be obtained from your tax advisor.For further information visit www.novoco.com. o - Of 1 A 3 r r i r;"s. I rasherman Ass 0 C I A T E S COMPANY PROFILE: Public Profile I. FINANCE COMMERCE VOL.124,NO.84 FRIDAY I APRIL 29,2011 • FINANCE-COMMERCE.COM OCOMenouuv PANY Rehabbing Riverside—`Ellis Island'of city BY MARK ANDERSON .• .1" It j: Staff Writer I , ' Y ' _ ii The $132.4 million ,I , ' , r- , renovation of the 1 ' Riverside Plaza hous- t i ;' " ` ing complex in ._ ,�. .• Ii;I Minneapolis' West , Bank started in ` \- , February, but owner •'- '11. -•George Sherman host- - 4e ed a party and ground- breaking on Wednesday — giving guests a glimpse of one , 1 of the region's biggest . r . housing investments • - and one of its most dis- Y -. 4 • '..— ) tinctive communities. "This is the city's Ellis Island," said Mike Christensen, executive director of the M i n n e a p o l i s Community Planning and Economic -Development agency. Christensen helped ` lead a tour on it Wednesday, but he is aware that the housing complex's West Bank neighborhood has long been Minneapolis gateway for immi- Mike Christensen,left,director of Minneapolis'Community Planning Economic Development agency,and George Sherman,president of Sherman Associates,explain some of the renovations at Riverside Plaza ' while a couple of residents walk by.(Staff photo:Bill Klotz) grants. The most recent arrivals are mostly ing 60 percent or less of the median metro from eastern Africa.About 80 percent of income. That makes Riverside Plaza the RIVERSIDE REDO Riverside Plaza's 4,400 residents are from biggest affordable housing campus in the Somalia, Ethiopia and Eritrea, said Midwest and the biggest single mortgage Fredda Scobey, executive director of the in the U.S. Housing and Urban 132.4M Riverside Plaza Tenants Association. Development department's housing port- The 38-year-old Riverside Plaza is big,a folio,said Sherman,president of Sherman Total project cost fact that has annoyed many of its neigh- Associates,which has owned Riverside for bors. But its scale also has enabled it to 23 years. a major portion of the Twin Cities' It's a city within a city, but that city 1 4deliver affordable housing supply. needs a big renovation About half the More than half its 1,303 apartments are $132.4 million cost will go to refinance its Sources of equity and debt Section 8 units,and 85 percent are desig- mortgage,while more than$65 million will nated as affordable for households earn- be spent on major rehabs: replacing RIVERSIDE TO PAGE 2 Ill 1 . aS�AS Ser11111 SOCIATc�ES COMPANY PROFILE: Public Profile Riverside Large complex provides big portion of affordable housing supply • plumbing,heating and cooling,and eleva- tor systems, and fixing wear and tear i' throughout the campus'interior and exte- rior public spaces. Sherman acknowledges those fixes have been needed for years."The system was designed poorly when it was built,and .- it's been deteriorating for a long time,"he said. "You can crumble the pipes in your hand." ."' -.,i,fir The result is a 30-minute wait for hot �+ water in the morning, residents say, and buildings that are cold in the winter and , fit hot in the summer. The renovations will end those prob- lems while offering hundreds of jobs. Sherman said the plumbing reconstruc- tion will keep 100 plumbers working steadily over the next two years,and city i / documents say the project will provide //, A. another 200 construction jobs. Y , The utility fixes will also make the proj- "Ai it ect much "greener." Sherman said the " . reductions in water usage and more effi- a� � i '' cient heating and cooling will produce$1 million in annual water and energy say- ings. The blueprints include new plazas on 4 the border of the campus,which will bet- ter link it to the rest of its Cedar Riverside neighborhood and make it part of a new pedestrian and bicycle path connecting i the West Bank's Hiawatha and Central NilNi Corridor LRT stations. Riverside Plaza is an enormous housing community, and the capital stack that is - f \l'il inancing its renovation matches the scale The $132.4 million project includes 14 tip; sources of equity and debt,ranging from the developer's contribution, state and a city funds,to the founders of Google and a union trust fund. Sherman said his team spent five years trying to assemble the package, knowing . Ar Nt . 4.111k that the deterioration was making it i urgent to get the project under way. At the heart of the financing challenge 4 I was the decision to keep the project 1 f iii. i affordable.That decision limited the pro- ject's income and its investor pool.It made a. Riverside eligible for low-income housing � NO ■ tax credits—but that source took a beat- ing during the recession. Proceeds George Sherman(center)says workers are renovating 60 apartments each month. dropped from 90 cents or more for a$1 tax Residents in those units live in temporary housing on the campus for that month.(Staff credit five years ago to as low 60 cents by photo:Bill Klotz) IP ShmASSerOCIATaE n S COMPANY PROFILE: Public Profile 1� • "`1 ) . 4 , .,,t.,.. ,,, A I, .. \.-2.0-' fr , ,,, . ,,,,,,, 1 ' a jy -.4, 1� ,, s - z ,./ , • Y }x e .4tz i r:: . *The 38-year-old Riverside Plaza,on the West Bank of Minneapolis,was designed by the architect Ralph Rapson.Riverside has 1,303 units,85 percent of which are designated as affordable housing.(File photo:Bill Klotz) 2009 and 2010. project's size, said Angela Christy, an er$15,000 a year to create a new Safety Sherman kept searching."It was like a attorney and tax credit specialist with Center on the campus. Rubik's Cube—we just kept turning the Faegre& Benson who advised Sherman. The campus includes the Minneapolis pieces hoping to find ways for the colors to 'An investor looks at this and says I can School District's busiest adult education line up,"he said. invest in 13 projects with 100 units, or I classes,with more than 500 people study- The pieces finally lined up in early 2010 can invest in one project," she said. ing languages or computer courses each thanks to the project's architect,the late "They're going to decide that this is a lot week. Riverside also has a successful Ralph Rapson. Sherman and historic easier to monitor." charter school that will double in size from adviser Charlene Roise put together a suc- Meanwhile,Riverside's latest residents its current 150 students when new space cessful case for historic designation based stand out in their commitment to educa- is created in the renovation. on the contributions of the renowned local tion and to self-reliance. "This is an Sherman said that 120 residents are architect — unlocking state and federal upwardly mobile population," said attending the Minneapolis Community historic tax credits that contributed $29 Christiansen of CPED. "They're looking Technical College now and hundreds million in equity. for opportunities to build their lives here, more are attending the University of The low-income housing tax credits and the city wants to help do that." Minnesota and other nearby colleges. also strengthened when they went to mar- The renovation budget commits "Part of Riverside's appeal is that it's so ket by late 2010.Investors paid close to 84 $150,000 annually for the next 30 years to close to higher education,"he said. cents for the credits,Sherman said. the tenants association, aimed in part to That strength came in part from the meet new learning challenges,and anoth- Reprinted with permission of Finance&Commerce Inc.©2011 • ashe rman T e s COMPANY PROFILE: Public Profile r ___.._ Ate Special Repoli i ntainis.rai.Framnont nil l nipy.tsw st,n no• ---- -- LIFETIME ACHIEVEMENT AWARD George Sherman a....., ..111..i I is Tall OM tad Wirt tuna'noire,lai a,1iel bin bangnShennin is d nittird*b i 1~ti5- '�► "011141. 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Aral wht hbd orThe limb* _., _ i '. --- totolaoeai„„,. . ._ be no ahn t iiy tear}.Y taped nip-u, •••-,.'^a . pewter.WW1 taw a,tirgeiu n el flit Yetith tlaaW srrnnan ha helm)rt ttalu.Minnsibinile Mat Mane ML1 hit GEORGE SHERMAN nnd>t ml dr.atnit liotcl real the Wank aawO�a h's dw.to0arrd ed OA blob'fo1.t note Roe,alhrre Theater .ryes_tamawaasaMSes.Yaind b 'hem,: ::mawaupoh One M In lt.i't Just upewgllt eat wet tit a^•n-ant row umed'Q-Ma Slienu,l ostr,Jhn ww haanpew}I *VW/unmet?and(Wm?in liatbro h rue edelan robe len S✓(mturn task-4ll•41 the an elan aid lam b dpdfaa-t Jnit+dopmats p alandt St alto bat Wu*?lW.,aMhtrthmwretriron rrrxaect-}ant Whin*c,oath lltvK:prt_ i*At earn inn Shtfhs iltlfaa taacasd i(Ytlasadaa tondo pmoEecn N.tint,ennih•td Oman 86a+r• ' iha ce.:R duelatr:r.M1u.t::helim r%taut - i WOjus1•htRdthe tietlntirtoonra i,eaideetl.(m,eaneMalm•d hbA11 G.1 ash gar .h.1 ',ISean Oat ISS Cann Lima name*duet*d d. hl Mai ny11y in-4p de;lest Wog.i•n let.aa* a it.i..:a tx.1 nalee- User land Lochs,tdlmrmdtt deem mew doing fJednelepee m SbemNr dd PHvets• u*epea4emcldu ead decode tn.the Bunten aW gamin at mat uratalsinnentnat. r<,.Si Rimed lie at tole In rnrekurkc the J ieutde eiapa. bikes Eaten..-.Eaten..-.*Mode dwraat swannetldeatad Fkl0imed*t hnd...mixtudhbra Sherman don&On to stmt*mese is),attoaadwoiltladtratl ttYpwo l-datg as•gran ramp*N sir hes delrta'Mee,usd Vie detarted man Mr*ski m Mk OW* !Ideal RbtMaainadl ta il,fad*paled fiat as an noted*ado embraces odes and 'liven ■ nmeadm.a mom In de Otiiir OtsQbt ad tura%Cheacetaa Iowa(bee**eIl(k• Wale.le on urban deedlpmanl.'he teat rros tb eta Wink t8Y ad at UM eilAlbatYkle pmeasl aamil lase 'lib been (thew pco$eda•d- 'VU heal two imbed de aura(..Sin awn OA dtsaatt a Ka. MOOS 011irmarg dot l7R obeli led- dlt•tant fitala We&.... ere dim thaw maw Whence at sod we o.mn,cd r"ts,Me la a v*frMmypr dl gd coeteaea verdant as t all le ewe lea* Men feeble WON* amts m at,aedat rna l Arias big Fns Ma* ea Ven.,a aatactdn,on?aw,Mae, WpaMMillflitilitan lat had Intaiat.ald* Imaltatsd awl tram- of weardi hoe a lag arhemeneesQlpdr Chum,new'w'ettie r.atlaea OM hesdaatildansaa laitmrtlp¢ mit nialkletsbie all .re an=rt t diun reef inetiag.wellin mama 'W MA w► *AMA and s bled was a mastemma tin do xmehnl eat-spew edchilenert IkeDU.OpiniMab4*hi dews Mdi•wn Fadmse`.e An Adhered' hetainabaom. sbcaMtnataaala tie eatusw Osnint ateeal4 • - lsaamain(undid sel bus a*Mtn ke ntaxe*lam*ml4lb aatta .tdelstH•ana lift ml ea** • r&sherman A S S O C I A T E S COMPANY PROFILE: Public Profile 1 • 1 ID Sherman ASSOCIATES 0 233 Park Avenue South, Suite 201 • Minneapolis, MN 55415 Phone: (612) 332-3000• Fax: (612) 332-8119 www.sherman-associates.com Attachment A.2 Sherman Associates Development Highlights r&sherma n Cedar Point A S S O C I A T E S Redevelopment Location of Development Highlights •avton • o a — Ma+n St NW 242 i Johnwille 12Stn Ave NF r`14 A'orld • United States • F.IN • Anoka Ca 0._ 0._ < N > zw \'� v Coon Ra ids �Li o�atces Champlin 165) f�—'' Blame J�- Centerville Lake jj) •• Reshonau Lake /Circle Pines l . . . _ ---}m- 6to Lexington \� Osseo Arden �, Spring Lake Park '� Hills _, si Brooklyn Park Army . Mounds Vlev Maple Grove I isi) (1 Training Pleasant Lake Fridley "' Arden Hills Shoreview 961 i) 10:1_91 ogle tak: © Brooklyn 65 ;1 Center Vad Pike Coke New Bri9htoti� �_, Heig New Hope �' Columbia Heights CD 3! l Crystal Robbinsdale St Anthony • r Roseville lymouth done. • Med 'ne Lake `1 36 - r 169 IT - !1 I Lander dale Falcon 0 Golden \\ Height to II Valley •Minneapolis 1 kit\ I , �'\ 280J ay H EN N E I P I N 'i y Minnetonka St Louis Park Lake Call) n d S Paul �r i i� I 2 miles 2 km 10 2013 Microsoft Corpora ton m2013 Nokia Heritage Park • Blaine Town Square Falcon Heights Town Square • r&sherrnan Cedar Point ASSOCIATES Redevelopment • Heritage Park Senior Campus Y ....M I -N.:.3 �a+sirm •ql 9 !' + 871 tr ,J 1 ,'r i.. 1 y' nu ''i i d ' L ; ; L _ _ i ..,..1,/,,...,,, ` T, tjlionit ,+° .r. n s .p 1 _ a i ak.' -CF. "f y 1. . Sherman Associates partnered with Minneapolis Public Housing Agency(MPHA) to develop a portion of the Heritage Park Senior Campus located in North Minneapolis. Heritage Park contains a first-in-the-nation assisted living and memory care public housing development named Thomas T. Feeney Manor. The development components that Sherman Associates worked on consist of the Thomas T. Feeney Manor and Heritage Park Senior Services Center. The buildings were designed and built under Green Initiative standards that demonstrates energy savings; creates a healthy environment; utilizes renewable energy resources, such as solar and geothermal; and enhances the local ecosystems through innovative storm water management systems.Architect ESG worked with both Sherman Associates and MPHA to design buildings that served the special needs of the future residents and tenants alike. Since Memory Care residents have specific needs, special attention was given to the interior design that addressed everything from materials to floor carpet patterns. • • , _ __....__ • • -- enhanced assisted living or memory care assistance. Type: New Construction Apartments, Senior Services& Memory Care Facility Size: 48 Unit Feeney Manor(24 Units Affordable Memory Care, 24 Units Assisted Living) 50,000 ft2 Senior Service Center(Anchor Tenant is a Senior YMCA Facility) Schedule: Approx. 13 Months Construction Sources: HUD American Recovery and Reinvestment Act, New Market Tax Credits, Energy Rebates, Environmental Response Fund Grant, City of Minneapolis and Minneapolis Public Housing Authority. Role: Co-Developer ili � `� ►f� / 1... ,.--..... - \ r if • , _ \ .. . _ , ' . 1_ , _ , t. ,... i ------ ,• ,, .‘ . III sherman _ Cedar Point AssoCIATEs Redevelopment Blaine Town Square 4,4 ''''f 'le. 410 'tj+--y{i ! = 1 `Tr y „ i r{ 3 t � h y”-.f.I• f -y./ rat �/r- i r + `r jjr �� S , �° a .l p1.4 t ....;;I:7.7„'.."- 1 --11 ;-, , N.' i=iu1 y 1 `'^--- u � r+•�1 4,144:li 1:�t 1) 111 r' i ��4.-::, -it No 1I1_'y 'rd in1 ti . a l "`g �- U IN Ili I . i, t III i ,Y I_ ull. .zi ii R / t �' 1a iljJ -- ._P iu I viii ia'.,- '' tl Ii;rte'-I N11 � _.11I iii' 3 e.OPly�.. f,.-r -sna.� '�- Id ,.�'..* _ I y� r -,." `',..,,.'7-',-,-. v r' 1.. ! 1l Ww'ffIf=Il11j�11 '1'rr ^ a''?- �tI' f ' +? w` a-- f' _� 1si'� iw t.. t� r�,.�L�/` b r 117r 7'�ly;rJi/ t`• i - ��'<.; '�< -�. ..rib*"‘'-_ ', + ►..r+ r• r,, �! •A.r �f !}�, .t r .'�".r'', r f �•IJ.. `�•• Completed in 2005, Blaine Town Square Apartments is an independent senior community located in the Town Square redevelopment neighborhood of Blaine. Focusing on creating a pedestrian-oriented, new-urbanism type development it has redefined the area and created a sense of identity. The building itself houses 87 senior apartments for residents 62 years old and better and includes ample amenities such as a fitness room with an adjoining indoor pool, a media center with computers, a car wash, planned resident activities, and a salon. Within the Blaine Town Square neighborhood there is a medical clinic, a bank, a few restaurants, and a park situated directly across the street. Sherman Associates Type: New Construction Affordable Apartments, Independent Senior Living Size: 87 Units Schedule: I I Months Construction Value: $13 Million Sources: HUD Insured Mortgage, City of Blaine Tax Increment Financing, Private Role: Developer, Property Management, Owner. J ,, 01144111111111111. - , ?=r0146°4-.. • • r&sherman ______ Cedar Point ASSOCIATES Redevelopment Falcon Heights Town Square Senior iilt , ai ,� J !!!!!!! r. � hk (II' �'.ii J J r �. :! rr�� "Sr, - : 1 4 +gym 2; � i Developed as part of the Falcon Heights Town Square development, Falcon Heights Senior Apartments is a senior community providing 56 apartments for independent living.The successful partnership with the City of Falcon Heights relied on a strong redevelopment process and public involvement process that developed a vision for the area. Compatibility with adjacent neighborhood was important.The building amenities include a fitness room, a large community space, a car wash, planned resident activities, and an on-site leasing office. Falcon Heights Town Square won Best in Real Estate in 2003 by the Minneapolis/St. Paul Business Journal. Sherman Associates Type: New Construction Affordable Apartments, Independent Senior Living Size: 56 Units 410 Schedule: 14 Months Construction Value: $8 Million total project Sources: Private, City of Falcon Heights, Minnesota Housing Finance Agency, Metropolitan Council, Family Housing Fund, Ramsey County Role: Developer, Property Management, Owner WEST T_AWETTTEWT AVEP E Igi ? j Ili ` I w►. e .. citF, IA P' v 1 Li er `,�, I 1 .:ie 4 Eli; i111 f 1''r•,Wei°""" "J k,T ►- ' [ '.g 0 I I4 • 4 " — — - fil e, r&she ' man Cedar Point A S S O C I A T E S Redevelopment SECTION CONSULTANT & DESIGN TEAM • r r&sherrnan Ac — — — — — Cedar Point ASSOCIATES Redevelopment KAAS-WILSON ARCHITECTS ollin Kaas & Link Wilson 2104 S 4th Ave Minneapolis, MN 55404 P: 6 12-879-6000 Profile Kaas Wilson Architects has established itself in the Twin Cities as a leading design firm of specialty housing projects especially those focused on places and spaces for frail adults. Kaas Wilson has also emerged as an innovator of creative commercial projects. Our reputation for high quality work and cost-effectiveness keeps clients coming back for more while word-of-mouth referrals draw in new business. While we keep our regular expenses low, we invest in cutting- edge design software and the fastest computers to increase our productivity. To add value and streamline project marketing for our clients, we now offer additional services such as web and graphic design. An architect's role is more than drawings plans and elevations; it is to take a client's ideas and deliver their message to a variety of audiences. These audiences include finance agencies and builders who are an integral part of making a client's dream a reality. We also proactively establish good communication and working relationships with neighborhoods, planners, and city board members. This preparation helps us avoid subsequent delay and makes it possible to find a solution that works for everyone. Aging in Place Maas Wilson Architects has expertise designing environments for seniors and individuals with special needs. We continue to evolve the Continuing Care Retirement Community model by incorporating better and better memory care wings and amenities such as intergenerational daycares, cooking demonstration areas, theaters, cafes, beauty salons, and fitness and wellness centers, in addition to restaurant-like dining facilities and community rooms worthy of a club. These amenity spaces are also designed with future flexibility to meet the savvy demands of the next generation of seniors. We strive to deepen our understanding of the physical and environmental needs of the aging body and we look for opportunities to share this depth of knowledge with the greater community. Our team members have volunteered in nursing homes, sponsored booths at community remodeling fairs, and lead workshops and lectures for baby-boomers and seniors regarding Aging in Place. These opportunities for direct discussion with seniors, and those who care for them, help fuel innovation toward person-centered care in our projects. As architects, we synthesize a myriad of elements to create a home. We orchestrate issues such as ceiling heights, window locations, day lighting, lighting fixture selection, and color and finish selection to provide adequate light levels for the aging eye and to control potential sources of glare. To optimize the health and well-being of the people that live and work in these spaces, we take a whole-systems approach to design from the beginning, utilizing sustainable design principles, and a deep understanding of mechanical and electrical systems in all of our projects. We bring together architecture and technology solutions that allow staff to spend as much time with residents as possible, as this is what person-centered care is really about. Kaas Wilson Architects has a reputation for understanding all the needs of those for whom we design, while maintaining cost-effectiveness. Please refer to Attachment B.I in this section for Architect Relevant Experience 111 r&sherman Cedar Point ASSOCIATES Redevelopment BRYAN CARLSON PLANNING & LANDSCAPE ARCHITECTURE Bryan Carlson • 212 SE 2ndStreet, Suite 319 Minneapolis, MN 55414-2135 Tel 612-623-2447 Fax 612-623-7810 Mobile 612-578-2447 Background Bryan Carlson is a skilled landscape architect, planner/designer with more than 35 years' experience. He has numerous award-winning projects including Kochi University and Nara Institute,Japan , East Texas Medical Center, TX; Mayo Clinic, FL and AZ;James W. Riley Hospital for Children, IN; Peninsula Papagayo, an exclusive destination resort community in Costa Rica and has just won the Minnesota WWII Veterans Memorial competition. Bryan works to creatively solve client needs and optimize the attributes of each site. Academic Background • Bachelor of Landscape Architecture, University of Minnesota, Minneapolis, Minnesota • Bachelor of Arts, Landscape Architecture, University of Minnesota, Minneapolis, Minnesota Academic Activities • Archaeological Research, University of Minnesota, Messenian Expedition, Kalamata, Greece • • Visiting Critic, College of Architecture and Landscape Architecture, University of Minnesota, Minneapolis, Minnesota • Cultural Studies, Balaeric Archipelago, Barcelona, Spain Registrations • Registered Landscape Architect in Minnesota and 10 other states Affiliations • American Society of Landscape Architects (ASLA) • Minnesota Chapter ASLA • Professional Experience • Bryan D. Carlson Planning and Landscape Architecture, Minneapolis, Minnesota, USA est. 2000 • Senior Vice president, Design Principal, Ellerbe Becket, Minneapolis, Minnesota • Managing Director, Ellerbe Becket, Tokyo,Japan • Project Landscape Architect, InterDesign, Inc., Minneapolis, Minnesota • Faculty Landscape Architect, University of Minnesota, Minneapolis • Landscape Architect, Herb Baldwin Landscape Architect,Jordan, Minnesota • Project Architect, University of Minnesota, Messenian Expedition Please refer to Attachment B.2 for Landscape Architect Relevant Experience • r&sherman Cedar Point ASSOCIATES Redevelopment DENNIS O'DONNELL 02756 Ethelton Way Apple Valley, MN 55124 Tel 952-423-6193 Mobile 612-868-6445 djodonnell52 @gmail.com Executive Summary Accomplished professional with over 25 years' experience in all facets of the senior housing market on a local and national level; with a strong concentration and success in property development and multi-property supervision. Was an integral part of a company from start-up through years of successful operations, marketing, acquisitions and profitable sale. Supervised 35 senior properties in twelve states and was involved in all areas of operations, including food service and marketing. Possessing an unusually strong financial background, negotiated with sellers, buyers, lending institutions, and government agencies through the due diligence process for acquisitions, refinancing, management contracts, and the selling of properties. Academic Background . Developed, built and opened two new communities consisting of 224 units valued at over 51 million dollars in the last three years. . Thirteen of the properties listed under Property Experience were new developments. a Pro-forma and initial market analysis for potential acquisitions and development opportunities. . Experienced in all senior product types: o Independent living o Assisted living o Memory care • Nursing care o Transitional care . Have served on the Board of Directors of Care Providers representing Residential Senior Housing. . Have been the Chairman of the Housing and Community based Services Cabinet for Care Providers of Minnesota. . Co-chair of the Assisted Living Committee for Aging Services of Minnesota. . Worked with several national hotel management companies, gaining a broad range of experience in all areas of food and beverage management, operations, staffing and safety programs. . Graduated cum laude from the University of Wisconsin-Stout with a Bachelor of Science degree in Hospitality Management. Please refer to Attachment B.3 for Consultant Relevant Experience rasherman -- -- - -- Cedar- Point ASSOCIATES Redevelopment • Attachment B. I Architect Relevant Experience • • r&sherman Cedar Point Red ASSOCIATES Redevelopment Pr Ilk y oc who Similar Project Experience (Senior) k .r hit- t- Experience in: The Seasons at Apple Valley • HUD financed CCRC project Apple Valley, MN • Senior Apartments • Environmental Sensitivity Iii Address: ( :- ; ` tail.a „;-? a 1670 Legacy Parkway E, �t• •' �1 n Maplewood,MN 55109 i r ,at -.� ' ”` m1 Int na Construction Cost: t. 1 '1 ' 2 $18.2 million Square Footage: 171,500 square feet Timeline: — Design-2.5 months v • — --. Construction 12 months 411, s - I., Ti I. September 2010 1111 Client: \ Ecumen ` -Contact:Julie Murray �/� -Phone:(651) 766-4340 ,. i 411111111146 . -E-mail:juliemurray @ecumen. .....- o rg *fir - KWA Project Team �3. Members: c Link Wilson,Collin Kaas,Enrico Williams,Kim Behrens ;.. Niummir Units: tom;: 134 total ' mss. i` Site Features: i i • Nature Trails to adjacent gyp wetland " • Outdoor Courtyards ;. • Memory Care Garden �a„ Residential Features: 1.• Fireplace Lounge&Coffee Bar . .1. '" • Public and Private Dining *. Or Theater • Fitness Room,Salon,&Spa • Creative Arts Room Description: • Library The idea of a senior living community at this location was embraced by the city • Chapel and is a key component to what Apple Valley calls the Central Village:a walkable, multifaceted,nearly 30-acre redevelopment in the heart of Apple Valley.The design team felt a particular obligation to create a welcoming,vibrant environment full of unique amenities where residents feel at home throughout the community. The permanent residents and their regular visitors frequent the neighborhood restaurants, IIIstores and recreational areas. Awards&Recognitions: -Winner,2010 Best in Real Estate—Senior Living Category,Twin Cities Business Journal 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.corn r aQ IIN If A y Wiiso, Similar it- Project Experience (Multi-family) Experience in: The Crossings at Valley View • MHFATaxCredit Bloomington, MN • Affordable Rental Housing , • Green Communities Criteria Address: s= 8735 Portland Avenue S., Bloomington,MN 55420 _ �, Construction Cost: $6.3 million Square Footage: 87,600 square feet ? , 4 _ "' ir Timeline: III r Design-3 months f Construction 10.5 months et ` r� x . 4. , . 1 • M Completion Date: - .31 5, ..,,'/ ,. July 2009 ! l . ' Chen ithi t` Sherman Associates `� '"� -Contact:Tony Kuechle -Phone:(612)332-3000 -E-mail:tkuechle @sherman- associates.com �- . v . gi IIIII) KINA Project Team Members; II -'•'-" e Collin Kaas,Enrico Williams Jam' _,..-...--7,i l i Link Wilson �j ' r ;, . - I. A ;rr , - i - '4,!0 Units: �r I •_ al a, t �' 50 units ,& +e --- ._k. . n r - .. „ �4 Features: "" "i.n,{i I _ • Individual Storage Units • Community Room • Tot Lot Description:Kaas Wilson collaborated with Sherman Associates to create this green • Connections to the Existing workforce housing on a brownfield site. Located on a bus line and near schools Neighborhood and a library,this four-story building was designed to provide homes for families with • 1:1 Underground Parking modest incomes. A mix of two and three bedroom units were designed with the needs Garage of parents with children in mind. An on-site playground and proximity to the local library also make it attractive to young families. Methodology:Several strategies were employed to maximize the use of the site and to keep the development affordable. A nearby utility right-of-way became a storm water infiltration pond.Native species were selected for the landscaping,minimizing irrigation demands.Both the structure and floor plans were carefully designed for high efficiency at minimal cost. Meeting the Green Communities Criteria had the added benefit of lower utility costs for renters. Parking was located under the building to create room for a children's playground. Together these strategies make family housing affordable,sustainable,and attractive for a market segment that is currently . under-served. 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com I Ilk IF 1 wi+o Similar Project Experience (Senior) ■ A architect 4110 Experience in: The Seasons at Maplewood • HUD financed CCRC project Maplewood, MN • Senior Living i}• Environmental Sensitivitiy Address: .• 1670 Legacy Parkway E, - "' i Maplewood,MN 551090i• „.r Construction Cost: • i`r . .. ,rol • I•$18.2 million ,1,�, � a _ - • n. r ' -- - Square Footage: ' I ` i •,r, 212,000 square feet • r,� . Timeline: `' •. ..- x ifilwie wit'tr Design-2 months Construction- 12 months Completion Date: September 2010 • • Client: \ Ecumen -Contact:Julie Murray _ • •I an -Phone:(651)766-4340 _ 1� r4. • -E-mail: . juliemurray @ecumen.org i - i fit- ill -- m KWA Project Team O Members: c c Link Wilson,Enrico Williams,Kim flit.'" `' Behrens o o a- Entry Units. f t' ' `� `'i 150 total �., ±Rvr. 1 10, {M '03 '02 Pcb Site Features: �. --�— - ` ko `� / 103 10., S .. • Nature Trails to adjacent MemoryCoe , Moo Entrance 1 common y aMeoay" Aco,n Creanva /107 10 wetland 1 lm,„et . Art • Outdoor Courtyards 132 00 <<eR°°m' rt�� 09 f Ad Lobby?' Re hmem • Memory Care Garden "" i i - = L' Amb CI"b A,,,,, Mane.; Fitness 4 CheVs Kitchen Lemes � Salon& Ceme Residential Features. ' Room R,,,.oA Room 5j° _ • Fireplace Lounge&Coffee Bar �- r , • Public and Private Dining Theater • Fitness Room,Salon,&Spa Description:Financed with the HUD(Housing and Urban Development)232 • Creative Arts Room financing program,this senior housing facility is located in the northern suburbs of the • Library Twin Cities,adjacent to the Maplewood Mall and St.John's Hospital.The 130,000 • Chapel square-foot community will have 150 apartments on four levels,comprised of 120 one-and two-bedroom independent living and assisted living apartments. A memory care neighborhood will have 15 apartments,as will an enhanced care neighborhood. Amenities include ala carte services based on the needs and desires of each resident, a community movie theater,fitness center,arts studio,restaurant,private dining room, café,and more. • Awards&Recognitions: Winner of the 2010 Best in Real Estate Awards for the Minneapolis/St.Paul Business Journal 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com / pQ- A Wilson Similar Project Experience (Senior) A .r hit- t Experience in: Nine Mile Creek • • HUD financed CCRC project Bloomington, MN • LEED Certification • Senior Living Address: 2301 Village Lane Bloomington,MN 55431 Construction Cost: $ : ) 134,250 square feet A i Timeline: Design-2.5 months )ti.1 tit 1 Construction- 12 months Completion Date: X40 d 1 i i April 2010 i ►I * ; Client: C . T ' �y y • Greco Development, LLC ,� - \ -Contact:Brent Rogers -Phone:(612)630-2542 ' -E-mail:brogers @grecollc.com KWA Project Team , 0 41 Members: , j • Collin Kaas, Kim Behrens,Ryan k' . '' N Dupuis j '_�t i`i q.. f 0 Units: '.1,i1111 - i 4 ice,_;.1 !"-•-•,..,t.. ii ie, -1 jikt,93 total )i � ' ^a TDO S $0 f 1 Residential Features: — r • Commercial Kitchen z ';tom` • Residential&Private Dining Rooms • Community Room • Beauty Salon&Spa with Description:Senior citizens will be served in this 93-unit catered living residence 1 Massage Therapy which is part of an already constructed condominium and town home development. Fitness Center �' The architecture,site lighting and landscaping of the new catered living residence • Movie Theater blends in with the overall campus.The interiors are of a craftsman style with emphasis • Digital Recreation Space on lighting,day lighting,way finding and ease of use.A full range of meal services, • Library&Parlor including ala carte options,will be available to all residents to aid in the aging in place process. s Methodology:From the beginning this project was a search for the proper use on the site.The process was collaboration with the existing neighbors living on the campus and the city at large to reach a reasonable solution on a very tight site.The grounds where designed to allow for a planned access to a city trail system that connects several regional parks,but at the same time increase the amount of existing resident parking both on grade and under the proposed building. Awards&Recognitions: • 2010 Best in Real Estate Award finalist for the Minneapolis/St.Paul Business Journal 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com V V 1 hit o ect. A Similar Project Experience (Senior) 0 Experience in: Inver Glen Senior Living • HUD-financed CCRC project Inver Grove Heights, MN • LEED Certification t > • Market-Rate Rental Housing .0. Address: 7260 South Robert Trail Inver Grove Heights,MN 55077 $14 a 144111111°I' . , 4Az t i' 1 Construction Cost: i- 1� {- .-. " �, I $13 Million t _ 1 ' ,�. Square f=ootaye: �� I.�i1l1�`� .�__,•" �� . . �:.i F r-= .J 128,800 square feet ,§'_ ...--.�+ �► .,, Timeline: Design-3 months 7 , • ^ Construction- 12 months `'w �' ' �r 4 Completion Date: !. y t' -- - •al October 2009 �w _ . Client: -• . , �-- Southview Senior Living I) 1110 - 4t. \ Communities 1011 . -Contact:Lance Lemieux -4 ""w' 11111L1' 4IU: I + J -Phone:(651)454-4801 - — E-mail:lancel@ , -° • southviewcommunities.com � , � --`� <• ,, O KWA Project Team " ,, +," vi Members: , Collin Kaas, Ryan Dupuis Description:This recently completed 102-unit LEED-registered project serves -7-;- Site Features: independent seniors as well as those requiring assistance in daily living or memory • LEED certification care.A full range of meal services,including ala carte options are available to all • Walking trails connecting to residents.To create an inter-generational environment,an on-site preschool for nearby the neighborhood families and the neighboring church has been incorporated into the building and is • Landscaped retention bio connected to the church with a walking trail. swales Methodology:The building's form and its site design reflect a project conceived for Residential Features: and shaped by its context.Three stories tall and in the Craftsman style,the building • Inter generational Preschool wraps around the crest of a hill to provide commanding views of the adjoining green • Commercial Kitchen space.A neighboring church provided the opportunity to create a shared vehicular • Residential&Private Dining entrance and parking area which also serves the preschool.Among the strategies Rooms employed to achieve LEED certification,all storm water will remain on-site and flow • Beauty Salon into the pond rather than going directly into municipal storm drains connected to local • Fitness Center waterways.Other site improvements to maximize water infiltration will include water- • Library&Parlor permeable paving,landscaped retention bio-swales,and infiltration basins. 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com V lik QQ- A wilSO Cutting Edge Project (Haiti-family •r -hit- t Experience in: Oaks Station Place ID • Market-Rate Rental Housing Minneapolis, MN Address: 7 -� 'Alk 1 ,/ �� - 3550 East 46th Street .. Q►` ' : :s4O6 neapolis,M 1111 ov- }, ` ' \ $15.5 million .� - (.0 4 a F \ \ , - - Square Footage: 1 � :� tt;, --A,' ``�` `\� ,ttE�C 170,000 square feet y� a `°'a i \ \ S � et 4" • • A\, \ �G..- S\ F Estimated Timeline: = t\ o- Design-4 months =Aso-= , Iii " 4 _�' rt ` ` 's9 Construction 13 months ;K �\ Q p s • Completion Date: r_.� w !. 1 ,_ ,, ,, Q tic, ;, September 2012 * e ��. s ill J Client: ,, "`• .",\ 4 k` • • ,4 F Oaks Station Place, LLC OAKS'STATION PLACE k �'j F -Contact:NormBjornnes l T01uui 83765rRrur ` 4‘ -Phone:(612)879-1804 :.L.., `.•.` °`�- - -- : \ -E-mail:NBjornnes@ . T� � ; mulliganbjornnes.com __ L EAST 46TH STREET KWA Project Team , Members: Collin Kaas,James Schloemer •' U nit5: ' • +- 104 total r I 4 , l 1- I k, o t Residential Features: '-'..1-k6, - 1j • Community Room =r _ �- • Theater 1 --7 4 , i , ._:a41L—:�; '• Fitness Room --j • Attached Retail • Outdoor patio with - entertainment and grilling area / • Proximity to Light Rail Station Description:Oaks Station Place is a mixed use development to be located at the and Bus Lines 46th Street Station on the Hiawatha Line.The project consists of a single building with 104 rental apartments and approximately 9,000 square feet of first floor retail space. The inspiration for the look and feel of Oaks Station Place comes from Forest Hills Gardens,an iconic transit oriented community built almost one hundred years ago in Queens,New York on the Long Island Railroad.Forest Hills Gardens has been a model of smart transit oriented development.The classic architecture,brick exteriors, gable roofs and building skyway evoke the style and grace of an earlier era. Methodology: Because there could only be one entrance for the piece of land occupied by Oaks Station Place and the 46th Street Bus and Light Rail station,the team needed to determine how the two properties would interact.The solution was to create one building that spanned over the site entrance and was connected below grade via underground parking.Oaks Station Place is a leading exam g g p example of how to 9 9 p implement smart transit-oriented development. • Awards&Recognitions: 2012 Best in Real Estate Award finalist for the Minneapolis/St.Paul Business Journal 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com Pr 1‘ lir ao IL livf widso Tight Budget Project (Multi-family) or hit- t 0 Experience in: Carver County Workforce Housing • Livable Communities Act(LCA) Waconia, MN Grant funding,application materials and submission • Market-Rate Rental Housing Address: 885 and 905 Airport Road t =f i 'ION Waconia,MN 55387 Fi+1 Jr i i i � •: .tt �w„ •a®mr4 1��,- .= – ►. .: " Vs 1 Estimated Construction F ' Cost: .__ ' 1 -„ , 1 $8.9 million T • .tea. . _ _ —_./' - Square Footage: - 113,710 gross square feet Estimated Timeline: Design-2 months Construction- 11 months Estimated Completion Date: October 2013 \ Client: y o Carver County CDA i 0 --Contact:Frank Dunbar . .�e I I .�, i` - . i E 1 CD Phone:(763)377-7090 F . . _ � y �� <--Email:frank @dundev.com 711 11 c KWA Project Team 1 Members: o ,. F Link Wilson,Collin Kaas,Enrico / '� Williams,Ryan Dupuis Units: 76 total Residential Features: Description:Trail's Edge apartments in Waconia,MN is the first of two phases that • 2-story Entry Lobby&Mail aims to bring higher-density apartment housing onto two parcels of land that had • Community Room with Kitchen remained undeveloped for some time. • Fitness Center Set within an up-and-coming area of Waconia where working-age adults are the • Theater primary demographic,Trail's Edge apartments features an underground parking • Digital Recreation Space garage ratio of 1 stall per unit,and features a healthy mix of studios,one-,two-and • Entry Plaza with Bicycle Racks • Connection to existing Bus three bedroom apartments. All units,regardless of size,are complete with a full Routes kitchen and island, 1 bath per bedroom,in-unit washers and dryers,and in-house • Outdoor Patio storage closets. • Tot Lot Budget constraints demanded that construction remain as simple as possible. With suspended balconies and a strategic use of materials in selective locations to help to put a modern spin on a traditional look,Trail's Edge becomes a place that any person would be proud to call their home. Methodology: When our client approached us with the challenge of putting • together a full set of drawings for a cutting edge multi-family housing project under the constraints of an extremely tight budget and an even tighter schedule,we relied on our experience in multifamily housing and years of working efficiently as a team to not only meet,but exceed our client's expectations in a timely and efficient manner. 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com V V 1! w��on s imi lk l Multi-Family Work Kaas Wilson Architects has worked closely with both the U.S.Department of Housing and Urban Development(HUD)and other Agencies on numerous multi-family housing developments. Publicly funded projects often have additional design ( standards that they must meet to ensure that the dollars used to fund these projects are wisely invested. We are familiar with these standards,and understand the implications they have on the design of all aspects of a project. a.. r n ,iu -�ii j ii II 11 _ - w V rili,1 ' ! .` 1 ql [U If X44' 4l x . - — - 4 • :it ' :pi -11 1] p 1; 4-1 Al NI j n lb ill iL t i '-� _ 1, :� �g �. ' ,.t`a t- w } rte' - s� -z- - i Grain Belt Terrace (Market Rate Apartments) n g I! a b e te Minneapolis,MN t' a '' , w •■•• • HUD Financing in process , a zt � ,n, • Winner of City Competition for best design development and construction team 911 24E4, _.v ' - Ir""K '� lll €fit" 4i Towerlight Apartments (Senior) I Saint Louis Park,MN - • HUD financed,UFAS compliant • Recipient of Hennepin County Transit-Oriented Development Grant o �• *� • k • Redeveloped brown field site - • TIF financing ►. , 324 1st Street (Market Rate Apartments) Minneapolis,MN - 1 - • Downtown,Warehouse District ' • HUD financing in process • 1 Village Commons Workforce Multi-Family Housing (MHFA) Savage,MN • Fully meets MHFA Design Guidelines • el .-1141`. " 1A, • Livable Communities Grant(Met Council) p; • Scott County HRA funding • 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com r lik y as lik A IF wilco Project Design & Management Team apLocation: Kaas Wilson Architects was launched in January 2007,but it started much earlier. Minneapolis,MN Collin Kaas and Link Wilson became formidable a team while working together at Miller Hanson Partners.There,they and many of their current staff collaborated on c Year Established: many landmark projects such as Gramercy of Edina;Groveland Condominiums;Olin n 2007 Crossings Condominiums and Mystic Falls Lodge in Gatlinburg,Tennessee. They LO realized quite early on that their personal styles worked well together,and clients found o Legal Status: their teamwork unparalleled in terms of creativity,cost-effectiveness and focus.Today, S LLC they bring their excellent collaboration and integrity in housing design to Kaas Wilson Q Architects. Ownership: Link Wilson,Collin Kaas KWA believes that an architect's role is much more than simply drawing plans and elevations;it is to take a client's ideas and deliver their message to a variety of Staffing: audiences. These audiences include finance agencies and builders,who are an Architectural 12 integral part of making a client's dream reality. By proactively establishing good Administration 2 working relationships with neighborhoods,planners,and city board members,we can (LEED AP 4) preemptively address concerns. We also understand that issues will always arise,so Total in firm 14 we pride ourselves on our ability to quickly employ problem solving skills in order to find solutions that work for everyone and avoid costly delays. Utilizing these skills, Kaas Wilson Architects has been involved in some of the most successful housing developments in the Twin Cities. Our strength is our people,and we have attracted not only the brightest architects and designers in the field,but professionals who are skilled at communication and collaboration. Our casual studio-like office environment is designed to facilitate better teamwork and idea sharing.Kaas Wilson Architects doesn't just meet expectations- we exceed them. The team shown on the following pages have been a part of Multi-Family and Senior/ • Supportive Housing projects their entire careers.Enrico,Kim,Collin and Link have worked together a combined 28 years.As well,our long-term strategic partners on the multi-family housing projects,showcased in this proposal,have been with us since the 1980's. We know and understand this part of the metro area,with Collin Kaas a Richfield resident.We know that we will bring a unique knowledge to the Cedar Point Housing Development that no other Architects and their consulting groups can bring. I 1 ' rlirS- ,:. 40 ` . 4. ) " . I S b — �# fy' ! 4 i �.. ' asp it At I. a.. . • . miiii : , ., .. . . 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com Fr I\ A 7 wilso Kaas Wilson Architects •r hit- t' Position in Firm: Link Wilson, AIA, LEED AP • Principal Team Leader, Principal in Charge CO Education: n n •Master of Architecture, University of Minnesota Although he has managed projects in more than 20 states,Link Wilson is best known o •Post-Graduate studies in throughout the Minnesota design community,having spent the last 26 years working c architecture,Kings College of in and around the Twin Cities. Link's experience managing design teams for large, Q London,UK multifaceted projects bridges the gap between owners'dreams and contractors' •B.S.Architecture,University of practical applications in the field,and delivers projects on time and on budget. Nebraska Link's passion for creating warm and inviting living environments is based in the Experience: belief that everyone deserves to feel at home. From affordable apartments to luxury 26 years condominiums,he integrates principles of sustainable design with cutting-edge trends to create healthy and spacious environments that integrate seamlessly into a greater Registrations: community. Architect licensed in MN,AZ,FL, IA,SD,TX;LEED AP As the design team leader,Link's role continues to grow beyond that of the traditional architect. Link's familiarity with funding and financing procedures as well as the Professional Memberships: process of municipal entitlements assure projects progress smoothly. Because of this, •American Institute of Architects Link is frequently sought after by both non-profit and for-profit organizations to help •US Green Building Council guide their endeavors. •Construction Specification Institute Volunteer Organizations: Seasons at Apple Valley,Apple Valley,MN Minneapolis Stevens Square Seasons at Maplewood,Maplewood,MN Community Executive Board North Star Apartments,Big Lake,MN member and co-chair of the Village Commons Apartment and Townhomes,Savage MN Development Committee Crossings at Valley View Family Apartments,Bloomington,MN Grain Belt Apartments,Minneapolis,MN 324 North 1st Street Apartments,Minneapolis,MN Rayette Apartments,Saint Paul,MN Waconia CDA housing,Waconia,MN Inver Glen and All Seasons Preschool,Inver Grove Heights,MN Towerlight,Senior Living and Wellness Center,St.Louis Park,MN Nine Mile Creek,Bloomington,MN MN Veterans Home Campus,Bldg.4 Renovation,Minneapolis,MN Bierman Place Student Housing and Wellness Center Rehab.,University of Minnesota The Shores Senior Living,Maplewood,MN Oaks Station Place,Minneapolis,MN • gnu- -1A . t. • Minneapolis/St.Paul Business Journal runner up for Oak Station Place. • Minneapolis/St.Paul Business Journal Best in Real Estate Award:Seasons at Maplewood;Client:Ecumen • Minneapolis/St.Paul Business Journal Best in Real Estate finalist:Nine Mile Creek Catered Living;Client:Greco Development • Senior Design Magazine Merit Award:Village at Woodlands,Brighton,MI;Client: Trinity Health National Easter Seals Easy Access Design Award:Sonoma Group Home;Client: Accessible Space • Minneapolis/St.Paul Business Journal Best In Real Estate Award:Gramercy of Edina;Client:Cooperative Communities • Minneapolis/St.Paul Business Journal Best In Real Estate finalist:The Groveland; '' Client:Steven Scott Development • .t • t, 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com IFF wil Q .r hit- t' Kaas Wilson Architects A ipPosition in Firm: Collin Kaas, Assoc. AIA, LEED AP Principal Project Manager co Education: •University of Oregon—Master co Collin's professional experience has focused on multi-family housing facilities for -� of Architecture o •University of Minnesota—B.S., people of all ages and abilities.His understanding of both housing markets and the Architecture,Design minor complexities of a project's cost structure ensure his projects have both the overall schematic design and the user-focused interior design required for success.His Experience: strong project management skills,consistent and timely responsiveness to owners and 11 years contractors,and diligent on-site supervision help transform those designs into built reality.He has designed,managed,and been a team member on numerous senior Registrations: housing facilities and"all ages"residential projects. LEED AP Professional Memberships: Seasons at Apple Valley,Apple Valley,MN •American Institute of Architects Seasons at Maplewood,Maplewood,MN •U.S.Green Building Council North Star Apartments,Big Lake,MN Village Commons Apartment and Townhomes,Savage MN Crossings at Valley View Family Apartments,Bloomington,MN Grain Belt Apartments,Minneapolis,MN 324 North 1st Street Apartments,Minneapolis,MN Rayette Apartments,Saint Paul,MN Waconia CDA housing,Waconia,MN Inver Glen and All Seasons Preschool,Inver Grove Heights,MN Towerlight,Senior Living and Wellness Center,St.Louis Park,MN Nine Mile Creek,Bloomington,MN MN Veterans Home Campus,Bldg.4 Renovation,Minneapolis,MN Bierman Place Student Housing and Wellness Center Rehab.,University of Minnesota The Shores Senior Living,Maplewood,MN Oaks Station Place,Minneapolis,MN • Minneapolis/St.Paul Business Journal Young Entrepreneur Award • AIA Minneapolis Merit Award:Heritage Commons;Client:MPHA • Minneapolis/St.Paul Business Journal Best In Real Estate Award,Heritage Commons;Client:Minneapolis Public Housing Auth. • Minneapolis/St.Paul Business Journal Best In Real Estate Award:Gramercy of Edina;Client:Cooperative Communities • Minneapolis/St.Paul Business Journal Best In Real Estate Finalist:The Groveland; Client:Steven Scott Development sibi Y Gr if„ 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com r IN T V wil o Kaas Wilson Architects ■ A •r if- i Kim Behrens *IIIIIIIEW ii.. Project Captain,Team Manager mow m a, lir ,..••„,.. mit, . As a skilled project manager of projects as large as 39 million dollars,Kim has a depth co of experience with multi-family housing design and construction as well as experience o - • y e , working with stakeholders from cities to agencies to help move a project forward.Prior g to joining Kaas Wilson Architects,Kim worked at RSP Architects,was an architectural a :-. model builder for Feyereisen Studios,and spent three years at HTG Architects working 1.- `! on a variety of project types.She brings a background in multi-family housing, commercial and financial design.Her experience has taught her the importance of detailing,how to forecast client needs an'd how to design flexibility for the future.Kim I will work closely with project stakeholders to ensure their vision exceeds even their own expectations. Position in Firm: Project Manager Parkside Village Apartments,Apple Valley,MN TowerLight,Saint Louis Park,MN Education: Riverside Terrace Renovation,Thief River Falls,MN •University of Minnesota— Park Manor Senior Apartments Renovation,Detroit Lakes,MN Master of Architecture The Shores Senior Living,Maplewood,MN •University of Minnesota—B.S., Vernon Terrace,Edina,MN Architecture Holtkotter International,Dallas,TX Nine Mile Creek,Bloomington,MN Experience: Seasons of Apple Valley,Apple Valley,MN 8 years Seasons of Maplewood,Maplewood,MN MN Vets Home-Building 4,Minneapolis,MN MetaBank,Des Moines,IA Telco Federal Credit Union,Rapid City,SD* • Star Choice Credit Union,Bloomington,MN* *work completed at previous firm - Enrico Williams Design Manager i, I- Enrico's architectural career began in 2000 working with both Link and Collin, '- -. -- 1_ designing multi-family facilities that respond to the unique and specialized e x requirements of residents.Over the years,Enrico has found success in creating '-- innovative design solutions by thinking outside the box,managing complex projects ii ... ,y, by keeping lines of communication strong,and addressing all concerns of the entire design team,whether they are clients,contractors,consultants,or building officials. ( • The results are projects that are a successful integration of building systems,materials, and program that are aesthetically pleasing and pragmatic,while staying on-schedule and on-budget. Position in Firm: Designer Grain Belt Terraces,Minneapolis,MN Tarnhill Clubhouse and Apartments campus rehabilitation,Bloomington,MN Education: Summit Hill Assisted Living renovation,Saint Paul,MN •University of Minnesota— Rayette Lofts,Saint Paul,MN Master of Architecture Northern Star Apartments,Big Lake,MN •University of Minnesota—B.A., Seasons at Apple Valley,Apple Valley,MN Architecture,Studio Arts Minor Seasons at Maplewood,Maplewood,MN Nine Mile Creek Catered Living,Bloomington,MN Experience: Trail's Edge Apartments,Waconia,MN • 12 years Creek's Run Townhome,Chaska,MN Benilde High School Campus Planning,St.Louis Park,MN Vernon Terrace,Edina,MN 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com Pr Ilk T ' V wii o Attributes: What Sets Us Apart ` A .r h' - t Design Principles • Towns and communities are not developed at once,but are rather created and refined through piecemeal growth and individual acts.Often development is guided by an overall master plan and/or planning and zoning ordinances,but it is the overall effect of all development-in the context of the whole-that defines the character of a neighborhood,community,town,or region.Residents choosing to move to a locale instantly become a part of that community,and the role an individual plays can be guided by the surrounding context. Principles of defensible space and crime prevention through environmental design are inherent in each of our housing projects,as a way of reinforcing the long-term success of a project and supporting stability within the community. Our buildings are contextually sensitive to the surrounding site and neighborhood.For example, the main entry is a single point of access and is well lit at night.We believe spaces, inside and outside,should be simultaneously safe and inviting.Simple,concise design strategies can address many safety concerns from the outset;nurturing warm,vibrant communities through thoughtful design choices. Natural Surveillance 1.Transparent vestibules at building entrances 2.Landscape designs created to provide surveillance,especially in proximity to designated points of entry and opportunistic points of entry 3.Lighting placed along pathways and other pedestrian-use areas at proper heights for lighting the faces of the people in the space 4.Streets designed to increase pedestrian and bicycle traffic I j,W I 1144 ii ', , -1 i D I 1 - 2_II �I ' it Si diI Ii.I I_Dat . - � is 1 2 3 4 �~ Natural Access Control 5.A single,clearly identifiable,point of entry 6.Front yards with waist level fencing along residential property lines to control Q access,and encourage surveillance fD vi LE ° .1 .4, _.__ _Oiliellinillinit ---„,., 5 6 , i.u.•. a, ,'= ' _ _ r ∎ • • Natural Territorial Reinforcement 7.Activities scheduled in common areas to increase proper use,attracting more people,and increasing the perception that these areas are controlled 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com r 111‘ T as• Attributes IL . wilco •rhi - t f Relationships and Expectations KWA takes pride in being accessible and responsive to our clients as well as the • regulatory officials and contractors we work with.We listen carefully to our clients so �r [4 that we may respond appropriately.We work hard at establishin g and maintaining ;7y relationships.Don't just take our word for it though;see what our clients have to say: "Kaas Wilson's expertise in affordable housing really showed with Crossings at Valley View–the efficient design required no value engineering.They also approached the application of the Green Communities criteria to the project from a cost-effective view point.Their focus on cost control allowed us to add more brick - to the exterior than we initially thought the budget would allow.The resulting project has real market appeal–it exceeded our lease-up expectations." –Ryan Sailer,Vice President of Development,Sherman Associates Kaas Wilson's experience with a wide range of multi-family projects has taught us what j works and what doesn't.We are constantly evaluating materials and systems in order , . to bring the greatest life-cycle value for the dollars invested in a project. r Creativity+ Experience=Improved Quality and Cost Savings `�,t v ' During the design process for the remodel of the Centennial Ballroom,KWA seized t the opportunity to reuse the wood slat paneling that lined the walls of the existing trii� ballroom,and reinvent the use of this material as a large acoustic panel screen on the ceiling,saving the owner$50,000 in material costs.In addition to this,when structural studies showed that there was no way to make the roof rigid enough to resist the deflection of the motorized operable partition that the owner wanted,Kaas Wilson found a manual operable partition that is easily moved and is in use at several large convention centers.The switch from motorized to manual operable partitions saved the project$80,000. i Kaas Wilson kept a keen eye on the owner's maintenance and operating costs for `} our affordable housing project,Crossings at Valley View.Knowing that this project } was geared for families and that kids especially have a tendency to spill,KWA sought 1 out a durable but affordable carpet tile that could be spot-replaced as necessary. Occupancy sensors were installed in the hallways,public areas,and garage to save lighting energy costs when these spaces are not in use. . —11IINFIr' With our past five housing projects,none of them have seen change orders for al • i► anything but unforeseen site conditions and owner upgrades. Sustainable Design 1i If one were to ask a room full of people what"sustainability"means,they will most likely come up with a variety of answers.Sustainability means many things,but it ultimately comes down to providing stewardship and conservation of our natural and built environment.For the proposed property this can mean optimizing the site to ensure that storm water is captured and infiltrated on site,using native species in the landscaping,careful consideration of site lighting,minimizing impervious \ surfaces,and minimizing the amount of land disturbed during construction.From a IF - 1 building stand point,one can look to a well insulated and detailed building envelope, I '• occupancy sensors in public spaces,use of environmentally preferable products,and the selection of HVAC systems that are not only energy efficient but help provide good c indoor air quality.We recommend a whole systems approach to optimize the effects of these design decisions.What sets us a apart is that we have completed LEED Certified ilk projects,Green Communities Criteria projects and Minnesota B3 projects without jamming concepts down our clients throats. 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com Ilk Fr 4111‘ 1r CI CI' , „,,,„so Attributes archite - ElProblem Solving and Working Relationships While working on the renovation of Building 4 for use as an Adult Daycare for the Minnesota Veterans Home,we came to a crossroads regarding the historic doors and trims in the building and authorities having jurisdiction over the project.The State Historic Preservation Office was requiring that all the historic trims and doors be salvaged,refinished and reinstalled with the renovation work,and the State Health Department,which will license the facility,was requiring that all the existing doors and trims be taken out as they were coated in lead paint and the Health Department felt that this condition,even if the wood were refinished,posed a health risk to the population of vulnerable adults that would occupy the building when the program opened.KWA worked with all parties involved to come to a resolution to offer the existing doors and trims to an architectural salvage company and replace all trims and doors with new that matched in kind.Through all of this,construction was not delayed. While our Nine Mile Creek project was under construction,the management team for the building decided that they needed more office space.KWA was able to catch this early,work with the contractor to move some walls around, and create more offices,all at no additional cost to the project. •�� sfi b. 0 Brrdlg Al rk0' , ., "' ' ,t,',, ', -4 etude'*Rh undetpoundparidna 4,: .1 -20a untt apartment bulking(a mix otStudlos.7iN4and Ms) ,sJ,usrw arc wwi tstabatd with p� I MIXED USE _ Fkneu.711�tmr.Rust 11asa Center,and Party Room ` DEVELO' ENT i � i k I Hulldnp�2 ,, •,• coil/nib—AI s; -3atader with underground panting 1,y DE OPMENT.' !ill • 1 -2ataryrtawnhome walk urea Metro Founde®t ,with 1 ,. II_ 1PRu,IbQ+2rd11r r Y S 7P� s 11, _ :. fir- i. -aparbnerd unite fid pond(1 BR end 2gRm11t} ,�, III Dwelopm�ant of cammerlol and mbcad use projects .-1 i c naiu �` i'— - - k Ell ' OP deter ined by1 marketaandldons&evolving k3 DE OPMENT I` I 4� �' �I �, demographll;T I ill!` L' . 1[ 1111 ill l it P.=r 41, '1c . .A q N ti : a I� '� Existing cammardat&retail D,„, Existing hotel ' r:,'1 i( i 1 I St y 1--Existing cammardal&cull v .= . MIXED USE it x A DEVELOPMENT ,I ( 5taetsca p a Envlronmers: w a '-<'4 ■ 0 BId9 Al .'N . C i .” .r t, 4r 4 t 149i ii I _ t _ M«• ,'iI 1 1; +; 3 -- ate. 1 ; a 3 • m ro v rt O D 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com o : ' ,Ay wilsr •r if- References IOW v.:_ DEVELOPERS CITY PLANNER Ryan Sailer Maggie Dykes,AICP • Partner Associate City Planner i Mi Everwood Development City of Apple Valley i Phone:(612)508-4627 Phone:(952)953-2569 . , 1 Email:Ryan @everwoodcompany.com Email:MMilton @ci.apple-valley.mn.us -yam �' - ``--- Frank Dunbar President BUILDING OFFICIAL Dunbar Development Greg Brady Phone:(612)599-90992 Commercial Building Inspector Email:Frank @DunDev.com City of Apple Valley Sidi'`_— ..'.,i ` L.,_„� i I PA 4 Phone:(952)953-2581 .._ -.__ Email:gbrady @ci.apple-valley.mn.us CONTRACTORS Mary Kotek President / I I Frerichs Construction Phone:(612)363-7378 Email:mary @frerichsconstruction.com 1 f / Mike Benedict r. Vice President \ ? Frana Companies Phone:(612)965-9801 47, 40Y _''� ' Email:mike @frana.com -'41 i c 1 0 +r / OWNER/OPERATORS I RI I . ', ' ■ `� Julie Murray ��t fi Vice President of Development nv Ecumen Phone:(651) 766-4340 Email:juliemurray @ecumen.org Barb Halverson President • Steven Scott Management Phone:(952)292-6181 Email:bhalverson @steven-scott.com FINANCIAL Tim Nichols President Nichols Financial i ms ii a � ," -, , , Phone:(952)895-5200 mg R as q44 Email:tnichols @nicholsfinancial.com a■ a Al ■ i■ ■■ '12 ApI v I ®0i - -t � 1 - ' • 2104 4th Avenue South,Suite B,Minneapolis,MN 55404 \ 612.879.6000 \ www.kaaswilson.com S Attachment B.2 Landscape Architect Relevant Experience • • ASSOC Cedar Point rasherman -- IAT ES Redevelopment Bryan Carlson Planning & Landscape Architecture Education/Institution West Bank Zone Master Plan Study Boggy Creek Gang Camp, A Hole-in-the-Wall Gang University of Notre Dame, Notre Dame, Indiana • Camp, Master Plan and Design, Lake County, Florida Master Plan Studies, Faculty Office Building, Carleton College,Seeley G. Mudd Hall, Northfield, Law School, Women's Residence Halls, Loftus Sports Minnesota,w/ Herb Baldwin Center East Carolina University, Greenville, North Carolina, Winona State University Campus Master Plan, Campus Master Plan Minnesota Indiana University School of Business/School of Public and Environmental Affairs, Bloomington, Indiana Health Care J.W. Riley Children's Hospital Medical Research Center Amsterdam Hospital, Amsterdam, New York and Library, Cancer Research Center, Medical Campus Boswell Memorial Hospital Master and Site Plans, Sun Master Plan, Indianapolis, Indiana City, Arizona Iowa State University Engineering Teaching and Del E Webb Hospital Master Plan and Site Plans, Sun Research Complex City West,Arizona Zone Master Plan and Site Design, Ames, Iowa Diagnostic Clinic, Largo, Florida Jordan Elementary School,Jordan, Minnesota Everett Clinic Site Planning, Everett, Washington Kochi Institute of Technology, Kochi Japan Fairview Hospital - Ridges Master Plan and Site Plans, Kyoto University Katsura Campus Master Plan, Kyoto Burnsville, Minnesota Japan Fairview Medical Center Master Plan and Site Plans, Nara Institute for Science and Technology, Master Plan Minneapolis, Minnesota &Site Design, Nara,Japan Healthplex Medical Center Master Plan, Sunrise, Florida Science Museum of Minnesota, St. Paul, Minnesota • St. Paul Area Vocational Technical Institute, St. Paul, Indiana University, Indianapolis, Indiana Minnesota Medical Campus Master Plan, Research Corridor State of Minnesota Residential School for Handicapped, Master Plan,James Whitcomb Riley Hospital for Faribault, Minnesota Children, Medical Research Center and Library, Cancer University of Minnesota, Minneapolis, Minnesota Research Center Arts District Planning Advisory Committee Jacksonville Regional Medical Center Master Plan, Arts District Master Plan and Schematic Design Jacksonville, Florida Carlson School of Management Site Planning East Texas Medical Foundation,Tyler Texas College of Architecture and Landscape East Texas Medical Center, West Campus Architecture Site Planning Expansion, Tyler, Texas Earth Sciences and Materials, Engineering Site East Texas Medical Center, Master Planning and Planning, Site Planning, Atrium Design, Athens, Texas Minnesota Landscape Arboretum Master Plan, Mayo Clinic,Jacksonville, Florida Chanhassen, Minnesota Mayo Clinic, Scottsdale, Arizona Pioneer Residence Hall Renovation Mayo Clinic Master Plan, Mayo Clinic Phase I River Bend Commons Master Plan, Residence Development, Samuel C.Johnson Medical Halls, Parking Research Center Super Computer Center Site Planning Mease Countryside Hospital and Clinic, Safety Harbor, West Bank South Mall Master Plan and site Florida design Mease Hospital and Clinic, Dunedin, Florida 411 an Om sherman Cedar Point ASSOCIATES Redevelopment Memorial Hospital of Jacksonville, Master Planning and Guidant Training Center and Preclinical Studies Site Planning,Jacksonville, Florida Center site planning •lississippi Methodist Rehabilitation Hospital Courtyard, Henkel Labs Site Planning, Minneapolis, Minnesota Jackson, Mississippi Kingdom Trade Centre, Kingdom Establishment, Riyadh, Nicollet Clinic, Burnsville, Minnesota Saudi Arabia Palo Alto Medical Foundation Site Master Planning, Palo Medtronic, Inc. Energy Technology Center, Brooklyn Alto, California Center, Minnesota Quain and Ramstad Clinic, Master Planning and Site Minnetonka Inc. Corporate Headquarters, Chanhassen, Planning, Bismarck, North Dakota Minnesota Shriners Hospital, Chicago, IL Site Evaluation and Master Plan St.John's Hospital, Springfield, Illinois Northwestern Bell Market Street,St. Paul, Minnesota Ambulatory Service Center/Medical Office Samarec Corporate Headquarters,Jeddah, Saudi Arabia Building Master and Site Planning St. Paul Companies, Inc. Corporate Headquarters, St. United and Children's Hospital, St. Paul, Minnesota Paul, Minnesota Valley Lutheran Hospital, Mesa,Arizona Sperry Corporation Semiconductor Division W.A. Foote Memorial Hospital,Jackson, Michigan Headquarters and Laboratory Facility, Eagan,MN Waconia Ridgeview Medical Center Site Planning, Master Plan and Site Plans Waconia, Minnesota State Farm Mutual Automobile Insurance Company Wakakusa Hospital Campus Master Plan, Miyazaki, Regional and Corporate Offices Japan Super Value Stores, Inc. Corporate Headquarters, Eden West Virginia University Medical Center, Site Evaluation Prairie, Minnesota and Master Planning, Morgantown, West Virginia Vantage Companies Southwest Crossing, Eden Prairie, William Beaumont Hospital Troy Campus Master Plan, Minnesota Troy, Michigan Wells Fargo Home Mortgage Campus Master Plan, Yale Faculty Practice and Medical Office Building,Site Minneapolis, Minnesota Planning, New Haven, Connecticut Government Corporate/Commercial Brown's Valley City Park, Brown's Valley, Minnesota A.O.Smith Corporation Corporate Headquarters, Central Square Community Center, South St. Paul, Milwaukee,Wisconsin Minnesota Site Assessment and Master Plan Harriet Bishop Playground, Harriet Island, St. Paul, Andersen Corporation Corporate Headquarters, Minnesota Bayport, Minnesota Hennepin County Juvenile Justice Center, Minneapolis, Carlson Center and Corporate Headquarters Master Minnesota Plan, Minnetonka, Minnesota Minnesota Valley National Wildlife Refuge Education Central Illinois Light Company, Peoria, Illinois and Interpretive Center, Bloomington, Minnesota Dow Chemical Company, Midland, Michigan Minnesota Zoological Garden, Apple Valley, Minnesota Dow Center Master Plan, Employee Mississippi Headwaters Recreation Master Plan, Upper Development Center, Corporate Headquarters Site Mississippi, Minnesota Planning National Defense University Academic Operations Eli Lilly and Company Master Plan, Greenfield, Indiana Center and Library, Fort McNair, Washington, D.C. Guidant Corporation Corporate Master Plan,Arden Rochester River Gardens, Rochester, Minnesota •Hills, Minnesota raa LJhel 111CI11 Cedar Point Redevelopment St. Anthony Falls Interpretive Plan, Minneapolis, Santa Clara Convention Center,Santa Clara, California Minnesota St Cloud State University Football Stadium, St Cloud, St. Cloud Public Library, St. Cloud, Minnesota MN Winona County Historical Society Interpretive Center, Universal Studios Japan Master Planning, Osaka,Japan Winona, Minnesota Publications Commercial/Developer "Dark Age and Byzantine Occupation," Coauthor, Center Square Office Plaza, Knoxville,Tennessee Excavations at Nichoria in Southwest Greece, Volume Downtown Mall, Sioux Falls, South Dakota III, 1983 Holiday Inn International, Bloomington, Minnesota "Site Environs and Techniques," Coauthor, Excavations Hyatt Regency Hotel, Flint, Michigan at Nichoria in Southwest Greece, Volume I, 1978 Milwaukee Depot Master Plan, Minneapolis, Minnesota "Reconstructing a Bronze Age Regional Environment," Peninsula Papagayo Resort, master planning and site Coauthor, Minnesota Messenian Expedition, 1972 design, Guanacaste, Costa Rica Four Season's Resort,Arnold Palmer Signature Awards and Honors Golf course, Marina, ASLA Fellowship Prairie Stone Entertainment Center planning, Elgin, IL American Society of Landscape Architects inducted as Quarry Highlands Residential Community, St Paul Park, Fellow under the category of Design Works MN Boggy Creek Gang Camp, Cassia, Florida Radisson Hotel, Lynchburg, Virginia Honor Award, MASLA Radisson Metrodome Hotel, Minneapolis, Minnesota Central Square Community Center, South St. Paul, Sacramento Mall, Sacramento, California Minnesota Seoul Ski Resort, Hyosan Development Company, Seoul, Merit Award, Minnesota Chapter American Society of • Korea Landscape Architects (MASLA) Two Appletree Square, Bloomington, Minnesota Dow Chemical Company, Midland, Michigan Beautification Award, City of Midland, Michigan Industrial East Texas Medical Center, Athens,Texas ADC Corporate Headquarters/Manufacturing Facility Merit Award, MASLA and Citation, American Institute of Master Plan, Eden Prairie, Minnesota Architects/Modern Healthcare MTC Overhaul Facility, St. Paul, Minnesota Harriet Bishop Playground, Harriet Island, St. Paul, MTS Systems Corporation Corporate Minnesota Headquarters/Manufacturing, Eden Prairie, Minnesota Merit Award, MASLA 3M Chemolite, Site Studies, Campus Planning, Hastings, James W. Riley Hospital for Children, Indianapolis, Minnesota Indiana Merit Award, MASLA and Design Award, AIA/Modern Public Assembly Healthcare Elon College Athletic Campus, and Football Stadium, Kochi University of Technology, Kochi,Japan Elon College, North Carolina Award of Excellence, MASLA Hubert H. Humphrey Metrodome, Site Planning Studies, Mayo Clinic,Jacksonville, Florida Plaza Design, Minneapolis, MN Citation, AIA/Modern Healthcare and Honor Award, Lawrence Joel Veterans Coliseum, Winston Salem, MASLA North Carolina Mayo Clinic, Scottsdale, Arizona Quad City Civic Center Site Planning, Moline, Illinois Design Award, Arizona Desert Botanical Garden • sherman Cedar Point ASSOCIATES Redevelopment Minnesota Valley National Wildlife Refuge Education Rochester Peace Plaza, Master Plan and Site Design, and Interpretive Center, Bloomington, Minnesota Rochester, Minnesota •lonor Award, MSAIA Merit Award, MASLA Minnesota WWII Veteran's Memorial Competition, St Honor Award,ACEC Paul, MN St. Paul Companies Corporate Headquarters, St. Paul, First Place Minnesota Nara Institute of Science and Technology, Nara Japan Merit Award, MASLA Award of Excellence, MASLA Sperry Univac Semiconductor Headquarters, Eagan, Peninsula Papagayo, Master Plan for a World Class Minnesota Resort Community, Guanacaste, Costa Rica Merit Award, MASLA Merit Award, MASLA Wells Fargo Home Mortgage West Building, Grand Prize, Contribution to the Community Awards for Minneapolis, Minnesota "Responsible Development", Costa Rican-American Best in Real Estate, Overall Winner,Twin Cities Business Chamber of Commerce Journal • Sherman Cedar Point ASS 0 C I A T E S Redevelopment • Attachment B.3 Consultant Dennis O'Donnell Relevant Experience • r&sherman Cedar Point Red ASSOCIATES Redevelopment PROPERTY EXPERIENCE • WALKER METHODIST 2000-2012 BROOKDALE LIVING COMMUNITIES 1997-1998 Hazel Ridge Brendenwood Maplewood, MN Voorhees, NJ Highview Hills Chatfield Lakeville, MN West Hartford, CT River Pointe The Gables at Brighton Moorhead, MN Brighton, NY Summit Pointe The Gables at Farmington Cedar Rapids, IA Farmington, CT Walker Methodist Edina The Island of Lake Travis Edina, MN Austin, TX Walker Methodist Kenzie Edina Park Plaza St. Anthony, MN Edina, MN Walker Methodist Lyndale Minneapolis, MN ACTIVELIFETM MANAGEMENT CORP. 1986-1997 Walker Methodist Plaza Barkley Place Anoka, MN Ft. Meyers, FL Walker Methodist River The Benchmark Anoka, MN Hoffman Estates, IL • Walker Place Edina Park Plaza Minneapolis, MN Edina, MN Walker Methodist Tree Tops Hawthorn Lakes of Lake County Anoka, MN Vernon Hills, IL Westwood Ridge La Vida Del Mar West St. Paul, MN San Diego, CA The Kenwood THE GOODMAN GROUP 1999-2000 Minneapolis, MN The Commons on Marice The Oak Park Arms Eagan, MN Oak Park, IL The Inn on Westport The Spring of East Mesa Sioux Falls, SD Mesa, AZ Healthy at Home(home health care agency) The Springs of El Cajon Sioux Falls, SD El Cajon, CA The Peaks The Springs of Escondido Flagstaff, AZ Escondido, CA Miramont Pointe Spring Ridge at Charbonneau Clackamas, OR Portland, OR • Terracina Grand Naples, FL • SECTION C CONCEPTUAL PLAN • r&she ____ _______ ___ ___ Cedar Point rrnan _- -_-_ ____--_----A S S O C I A T E S Redevelopment CONCEPTUAL PLAN 410overview Sherman Associates and its development team envision an ambitious three phase development for the Cedar Point area. Each of the three phases contemplated are in response to market conditions and demand. The design, construction and amenities will be of high-quality and build upon the other landmark developments within the City of Richfield. The following describes each of the three phases; please see Attachments C.I and C.2 for proposed elevations and site plan: • Phase I will feature 120 units of Assisted Living, Independent Living and Memory Care. Sherman Associates' market analysis indicates a strong demand for this housing type, with a particularly acute shortage of Memory Care in the Richfield market. Please see Section F (Market Letter) for additional detail. • Phase II will include 66 units of 55+ Senior Living with rents affordable to households with moderate incomes. Together with Phase I, Sherman Associates would foresee both phases as providing a continuum of housing choices to residents. From no-to-low service needs in Phase II, to higher service needs in Phase I (Independent, Assisted Living and Memory Care). • Phase III will contain approximately 6,600 square feet of office/retail space. Sherman Associates anticipates identifying a medical-office type user that will be complimentary to the senior housing that will be built on the balance of the site. Overall Design The primary intention for the overall design of this area is to create the consistent feel of a campus for the variety of program uses interspersed throughout the site. The residential portions of this campus will consist of three-story wood frame construction that utilize a consistent palette of materials that will include rock-faced CMU with decorative stone sills, brick and stone, premium cement fiber board siding, panel, and trim, and 30-year dimensional asphalt shingles. The selection of these materials will create a harmonious blend of colors and textures that complement the surrounding community, the neighboring parkway, and the adjacent green-space. Placement of the new construction and proposed public green spaces will preserve existing connections to the site and address future connections to the greater neighborhood. Public trails and extensive landscaping, and locations of public amenities such as art or water features will create destinations that encourage travel by foot throughout the site, while creating opportunities for interaction between the residents of this area and their neighbors. The proposed residential buildings for Phases I & II, when complete, will create a courtyard frame around the green-space that will serve to connect both buildings to each other and the rest of the site, with a proposed art feature set at the epicenter. Compatibility with Surrounding Residential & Commercial Area The proposed development is designed to interact with and support existing, adjacent land uses. Specific design considerations include: • Phases I and II will only be three stories and Phase III will only be one story, representing an appropriate step- down from the intense commercial uses to the east and moderate density single family homes to the west; • The primary ingress/egress for all three phases is proposed to be off of the to-be-constructed Richfield Parkway, minimizing traffic on local streets; • sherman Cedar Point ASSOCIATES Redevelopment • Pedestrian paths are proposed to continue the existing paths found in the adjacent shopping center to 16th Avenue. This will make the development more permeable to pedestrians but continue to limit vehicular traffic on local, residential streets; • Phase II may include walk-up/townhome style entrances on the 1 6th Avenue side, giving the property a more pedestrian and residential feel; • Lastly, the development team is experienced in developing projects near noise generators, such as MSP International Airport. Special attention is given to design and construction features that will mitigate this issue. Additionally, Sherman Associates has engaged the neighboring Mt. Calvary Lutheran Church about partnering on the proposed development on a number of items, including sharing facilities, programming for intergenerational activities and overflow parking for church events. Please see Section F (Letter of Support) for additional detail. Community Development Design Guidelines The proposed development will build on other successful projects recently undertaken in the City. The following are specific features that will advance the HRA's goal of continuing to foster high-quality development projects in the City: • Design, materials and construction quality will be of high quality. Sherman Associates and Kaas-Wilson Architects have built their reputations upon developing high-quality, sustainable developments and the Cedar Point development proposal will continue this trend; • The development will be rich with pedestrian-scaled features, including moderate building heights, attractive building exteriors and, potentially, individual walk-up/townhome entrances off of 16th Avenue; • As previously-mentioned, the development will include two pedestrian paths that will cross the site, making the development transitional between the neighboring residential/commercial uses but also permeable to pedestrian activity. • The development will contain two large green space areas that will be accessible to the public. These spaces will provide a desired amenity to community members and future residents of the development. Sherman Associates would anticipate collaborating with HRA to enhance this space with public art and other place- making features; • The development will feature a number of sustainable design and construction features, including energy-efficient lighting, appliances and construction; durable finishes, recycled materials and low VOC paints, carpets and adhesives; and resident orientation programs. Sherman Associates would likely build the development to Minnesota Housing's Green Communities standards. Additionally, the future residents of the site will benefit from the development's close proximity to services, employment and transit opportunities. Conformity to Zoning Requirements The proposed development will include a high-density of housing and a mixed use component. Current zoning for the site is MR-3, which provides for a minimum of 24 units per acre, resulting in a minimum of 149 units for this 6.2 acre site. Sherman Associates' proposal exceeds this minimum with 185 proposed units and 6,500 square feet of office/retail. The proposed high density, mixed-use nature of Sherman Associates' proposal advances of the HRA's goals for the Cedar Point area. 4110 r&sherman Cedar- Point A S S O C I A T E S Redevelopment • UNIT COUNT & SQUARE FOOTAGES hase I: 120 Units Assisted Living The following table illustrates the unit mix and average square footages for the various unit types in Phase I. Note that the Independent/Assisted Living component of this development contains a number of One Bedroom + Den and Two Bedroom units. Sherman Associates' market analysis has indicated a market for larger units in the Richfield area, as households move from single family homes but still desire a larger housing space. Please see Section F (Market Letter) for additional detail. Unit Type Number Average S.F. Independent/Assisted Living One Bedroom 38 750 One Bedroom + Den 8 900 Two Bedroom 34 1,015 Total 80 875 Memory Care Studio 32 535 One Bedroom 8 750 Total 40 575 Grand Total 120 775 Phase II: 66 Units 55+ Senior Living The following table illustrates the unit mix and average square footages for the various unit types in Phase II. Similar to Phase I, this development includes a number of One Bedroom + Den and Two Bedroom apartments. These larger unit types will accommodate households that desire a larger housing,space and enhance the marketability of the property. Unit Type Number Average S.F. One Bedroom 39 750 One Bedroom + Den 14 900 Two Bedroom 13 1,015 Total 66 835 Phase III: 6,500 square feet Office/Retail Phase III is currently estimated to be approximately 6,500 square feet in size. The final size will be subject to market demand. This size of development would be sufficient to house and office medical-type user complimentary to the senior-focused housing contemplated for the balance of the site. I sherman Cedar Point ASSOCIATES Redevelopment UNIT & BUILDING FEATURES Sherman Associates' proposal for the redevelopment of Cedar Point features high-quality design and construction that will make the development an attractive and desirable place to live, work and visit. These same features will enhance the desirability of the existing Cedar Point area and Richfield as a whole. All three phases will benefit from a host of green building features, including energy-efficient lighting, appliances and mechanical systems; durable finishes, recycled materials and low VOC paints, carpets and adhesives; and a recycling program. Additionally, building security systems will be incorporated and the multifamily phases will provide resident orientation programs. Additionally, all three phases will benefit from a partnership Sherman Associates anticipates forming with the neighboring Mt. Calvary Lutheran Church. For Phase I specifically, Sherman Associates and its development team have found that partnering with daycares/schools and providing intergenerational activities is extremely positive for both housing tenants and community members. Please see Section F (Letter of Support) for additional detail on the partnership Mt. Calvary Lutheran Church and Sherman Associates are considering. The following summarizes the unit and building features for each of the three phases. Phase I: 120 Units Assisted Living The attractive design of the building offers high-grade construction materials and generous amounts of green space. The building itself will feature three stories and an underground parking garage. To make residents feel at home, extensive community amenities will be available, including library; wellness, therapy and fitness center; day spa, barber shop and salon; card room, movie theater and internet lounge; activities programming; outdoor patio; and guest suites for visitors. and loved ones. In-unit amenities will depend upon the unit type; three service levels for households with differing needs: • Independent Living: One-bedroom, One-bedroom + Den and Two-bedroom layouts available; housekeeping services available every two weeks; one daily meal provided; in-unit laundry equipment; individually-controlled heating/cooling; • Assisted Living: choice of any Independent Living apartment; individually tailored health care service plan and meal plan with up to three meals per day; and emergency response on-site 24 hours per day; • Memory Care: Studio and One-bedroom private apartments with a home-like, comfortable setting; specialized programming and medical care; three meals per day; housekeeping; interactive kitchen; and secure, private outdoor gardens. When building an assisted care building, it is crucial to keep the residents' varying physical, mental and emotional needs in mind. Our experience has provided us the knowledge and expertise to make special amenity and material selections that cater to the specific needs of these residents. • r&sherman Cedar Point A S S O C I A T E S Redevelopment Phase II: 66 Units 55+ Senior Living l is with the first phase, Phase II will feature high-quality construction and design elements. This phase will offer One- edroom, One-bedroom + Den and Two-bedroom layouts. Building amenities will include: • Heated, underground parking; • Secured access; • Community and fitness rooms; • Extensive green space. In-unit amenities will include the following: • Quality, market-rate level finishes; • Individually-controlled heating and air conditioning; • In-unit laundry equipment; • Potentially walk-up entrances for select units. Phase III: 6,600 square feet Office/Retail The exact features of Phase III are to be determined and will be complimentary to the senior housing proposed for the balance of the site. Phase III will be of similar high-quality construction and design elements as the previous two phases and include appropriate parking facilities for the tenants. II • rasherman Cedar Point ASSOCIATES Redevelopment AFFORDABILITY MATRIX The following table illustrates the affordability for each of the two housing development phases. Phase III is Retail/Office and discussion of affordability is not applicable. Phase I: Phase II: Total 120 Units Assisted Living 66 Units 55+ Senior Living Number of Affordable Units (%) 0 (0%) 66 (100%) 66 (35%) Number of Market 120 100% ° Rate Units (%) ( ) 0 (0%) 120 (65%) Total Number of 120 66 186 Units As described in the Financial section (Section E), Phase II will be financed with Housing Tax Credits. As per program requirements, apartment rents and tenant incomes will be restricted to 60% Area Median Income (AMI). The majority of households that will rent at this property will have one or two members; the current rent and income restrictions are shown below: Rent Limit Income Limit I Bedroom $927 $34,620 — $39,540 (single — double occupancy) 1 Bedroom + Den $927 $34,620 — $39,540 (single — double occupancy) •2 Bedroom $I,I I I $34,620 — $39,540 (single — double occupancy) To the extent feasible, Sherman Associates desires to develop mixed-income housing communities. Such developments provide a broader choice of housing options and allow the property to target a broader market. For the proposed redevelopment, however, we are proposing distinct market rate and affordable housing properties. The costs of providing required services in Assisted Living developments make an affordable rent/service structure infeasible; current government-support programs for Assisted Living communities are insufficient for the service levels that will be provided at this development. Depending on market conditions, it may be feasible to integrate a number of market rate units into the Phase II (55+ Senior ) development. However, such a strategy will increase the complexity of financing and potentially drive the need for additional gap financing. • FA sherman - -- Cedar Point ASSOCIATES Redevelopment Attachment C. Conceptual Elevations • • • w' . ° _.":: .°fait '' • .; / A fi •1ryp Pv w.i 4 • - .- 'µOat '�� Ill -4.i-+ -f l .+ .:�'1 `p F � f _ - AFL /; - Rf�i ,4Z fp�g _ {T f y 11 Ill _ "' :,. 4 -. j .. - W A',) L M. S fr " 4; f •K k_r • kaas 1// \ V V w son Richfield, MN - Greens.ace Render-in. of View facia. East N n . , _. n.t.s • Attachment C.2 Proposed Site Plan • 5hehm 11 , point A S S O C I A T E S Redevelopment t \�} ! \�\ � - � ƒ » , — ! & ƒ , / / ! _ < 4 < I £ , : K • shermcin . / . . . . . . Cedar Point ASSOCIATES Redevelopment Project Timeline the following table describes the anticipated timeline for each of the three development phases. Sherman Associates would envision that the three phases would occur in succession. Phase I: Phase II: Phase III: 120 Units Assisted Living 66 Units 55+ Senior Living 6,600 SF Retail/Office HRA Selection June 2013 June 2013 June 2013 of Developer Site Assembly/ September 2013 —April 2014 September 2013 —April 2014 September 2013 —April 2014 Site Preparation Financing January 2014— May 2014 February 2014—April 2015 July 2015 —October 2015 Due Diligence Financing Closing/ May 2014 April 2015 October 2015 Construction Start Construction May 2015 April 2016 June 2016 Completion Please note the following regarding the anticipated timeline: • All three phases' timing are directly correlated to the time required to assemble the site, including the willingness of current owners to sell; • Phase I would commence as soon as possible. While the demand for Senior Assisted Living within the market is • strong today, Sherman Associates would look to begin construction and have the property available for occupancy before other potentially competitive properties came to fruition; • Phase II is dependent upon application/award dates for deferred loan/gap resources Sherman Associates intends to apply for. The following are the anticipated application/award dates for sources Sherman Associates would apply for. The timing of this phase is less sensitive because the market is expected to remain deep for affordable senior housing. Source Applications Due Awards Announced Hennepin County AHIF/TOD February 2014 May 2014 Met Council LCDA/LHIA April 2014 November 2014 Minnesota Housing RFP June 2014 October 2014 • Phase Ill's full value and potential will be demonstrated when the first two phases are complete and occupied, hence we are proposing to develop it last. 41111 Sherman — -- ---- --- — _--- Cedar- Point ASSOCIATES Redevelopment SECTION FINANCIAL INFORMATION • • r&sherman -- _ Cedar Point A S S O C I A T E S Redevelopment FINANCIAL •rhe following table illustrates the anticipated development sources and uses for each phase. Phase !: Phase II: Phase III: Total 120 Units Assisted Living 66 Units 55+ Senior Living 6,600 SF Office/Retail Land Acquisition _ $1,344,000 $1,008,000 $336,000 $2,688,000 Construction $15,990,000 $6,760,000 $865,000 $23,615,000 Soft Costs $4,570,000 $3,442,000 $175,000 $8,187,000 Total Uses $21,904,000 $11,210,000 $1,376,000 $34,490,000 First Mortgage $17,523,200 (80%) $4,556,530 (41%) $1,100,800 (80%) $23,180,530 (67%) Equity/Def. Fees $1,439,100 (7%) $577,541 (5%) $275,200 (20%) $2,291,841 (7%) HTC Equity -- $2,565,967 (23%) -- $2,565,967 (7%) TIF $1,250,000 (6%) $750,000 (7%) -- $2,000,000 (6%) GAP* $1,691, 700 (7%) $2,759,962 (24%) -- $4,451,662 (13%) Total Sources $21,904,000 $11,210,000 $1,376,000 $34,490,000 *See discussion below for how this will be filled. Phase I: 120 Units Assisted Living Phase I will be conventionally/bank-financed. Due to the strong demand for this housing type in the City, along with the experienced development team, we anticipate such a project will be favorably viewed by our lending partners. Please see attached for an initial commitment letter from Bremer Bank, illustrating their interest in the development type, the development team and the Richfield market. Due to costs inherent in redevelopment along with the site assembly requirements, we do anticipate a funding gap for this proposal. In order to the fill the gap, we would anticipate requesting the HRA create TIF Housing District to defray development costs and fill the funding gap. The $1,250,000 shown above represents our estimate of the TIF potential for the project. Please see "Discussion of Financing Challenges and Strategies," below, for additional discussion on our strategy for closing the funding gap for this and the other phases. Phase II: 66 Units 55+Senior Living Phase II will be financed by a combination of tax exempt bonds, housing tax credits, developer equity, TIF and other gap/deferred loan resources. Tax exempt bonds may be issued by the HRA or another issuer and will be likely be credit-enhanced by HUD. "4%" housing tax credits will be "automatically" be generated by the issuance of tax exempt bonds for the project. These credits differ from competitively awarded "9%" housing tax credits allocated by Minnesota Housing. As with Phase I, Sherman Associates would anticipate requesting the HRA create a TIF Housing District to defray development costs and fill funding gaps. The $750,000 shown above represents our estimate of the TIF potential for the project. In order to fill the remaining funding gap, we would anticipate making deferred loan requests to a number of funders, including the Met Council (LCDA and/or LHIA), Hennepin County (AHIF and/or TOD) and Minnesota Housing (Consolidated RFP). The anticipated timing for each of these funding sources' applications and awards are shown in the Section D (Timeline). Please see "Discussion of Financing Challenges and Strategies," below, for additional discussion on our strategy for closing the funding gap for this and the other phases. r&sherman -_-_-- Cedar Point ASSOCIATES Redevelopment Phase III: 6,600 square feet Office/Retail Phase III of the development will be conventionally/bank-financed. The ultimate structure of this phase is yet to be determined; the development could be a build-to-suit for an owner-occupant or could be leased to a tenant. Sherman • Associates has successfully developed numerous other mixed-use developments such as proposed at Cedar Point. It is anticipated that this third phase would take better shape after Phases I and II were completed and the full-potential for the site is demonstrated. Discussion of Financing Challenges and Strategies The costs of assembling and preparing the various parcels for development represent extraordinary costs for the development. Based upon acquisition and relocation costs provided by the HRA, we would anticipate total acquisition costs of$2,688,000 for the parcels not yet acquired by the HRA. Additional costs would be incurred to maintain the parcels prior to construction start and to demolish the existing structures. These costs are driving the gap financing requirements for the developments, particularly for Phase II. Sherman Associates will creatively work to fill the financing gap in collaboration with the HRA; ideas include: • Applying for Met Council funds for site assembly: Sherman Associates has successfully partnered and is partnering with other cities on this kind of strategy. The location, density, mix of incomes and involvement of the HRA would likely make such a request competitive for Met Council funds; • Review project design for value engineering items: with a priority on quality and design maintained, Sherman Associates and Kaas-Wilson can engage the HRA on design and construction considerations; • Consider creative strategies for site assembly: see below for additional detail. In order to overcome the challenge of assembling the various parcels and preparing them for development in manner • that provides for an economically feasible project, Sherman Associates would like to work with the HRA on creative strategies. Several options are described below for consideration. Site Assembly Option 1, HRA Acquires Properties and Conveys Fee Simple to Developer Sherman Associates proposes to negotiate purchase agreements with the owners of the remaining lots not yet acquired. Sherman Associates will offer relocation benefits comparable to those offered by the HRA. The agreements would ultimately be assigned to the HRA and it would acquire the properties, prepare them for development and convey them to Sherman Associates. The HRA acquiring and owning the properties in the interim the properties is important to the feasibility of the development because it will: • Reduce holding costs for the developments: under HRA ownership, the properties would potentially be tax- exempt and the HRA can maintain the parcels with the others it already owns; • Reduce risk: carrying multiple parcels for an indeterminate amount of time presents a high-risk for the developer. A similar strategy was successfully used at the Penn-American Redevelopment in Bloomington. According to staff at the Bloomington HRA, the developer for this property negotiated agreements to purchase the disparate parcels and assigned the agreements to the HRA; the HRA then acquired the parcels, demolished existing properties and sold the assembled and prepared site to the developer at fair market value. sherman Cedar Point ASSOCIATES Redevelopment Site Assembly Option 2, HRA Acquires Properties and Conveys via Ground Lease to Developer Ills with Option I, Sherman Associates would work directly with the sellers to negotiate purchase agreements on the arcels needed for the development. Relocation would be offered. The HRA would ultimately be assigned Sherman Associates' purchase agreements and take title the land. Under this option, the property would be conveyed to Sherman Associates via a Ground Lease. The Ground Lease would be long-term and result in annual payments from the developments to the HRA, rather than a one-time sale. The financial benefit to the developments would be realized if the lease payments paid from operations were less than its present value if mortgaged by the development. Depending on the value of lease payments, the HRA may monetize the lease payments via bonds or some other investment vehicle to recoup a portion of its costs. Please note that in addition to the HRA's and Sherman Associates' requirements for the Ground Lease structure, the developments' prospective lenders and investors would have additional requirements as to its structure. Requirements may include it being long-term (50-99 years), non-cancellable and subordinate to mortgage debt and investor equity. • • sherman - __ __ Cedar Point ASSOCIATES Redevelopment • SECTION F ADDITIONAL DOCUMENTATION • • r&sherman _ _ Cedar- Point Redevelopment • Attachment F. I Letter of Support — Mt. Calvary Lutheran Church S • rr Sherman — _ ___ Cedar Point P ASSOCIATES Redevelopment II i/It. `Calvary e,Zuthezan `a/cuvc/c and 07'AeschooI LCMS • 6544- 16th Avenue South, Richfield, MN 55423 • Church: 612-866-5405 • School: 612-869-9441 www.mtcalvaryrichfield.org May 17, 2013 Sherman Associates, Inc. 233 Park Avenue South, Suite 201 Minneapolis, MN 55415 Attn: Andy Hughes RE: Cedar Point Redevelopment Collaboration with Mt. Calvary Lutheran Church Dear Andy: This letter is to follow-up on a meeting that you and your team had with Pastor Johnson and I on May 17, 2013, regarding your proposal for the redevelopment of Cedar Point area. I understand that you are planning to submit an application to the Requests for Proposals(RFP) let by the Richfield HRA for the redevelopment of the site roughly bound by 63`d and 65th Streets and 16th and 17th Avenues. I also understand that you are proposing a redevelopment that includes the following three uses: • Senior Assisted Living, including a number of Memory Care Suites; • Senior/55+ Independent Living, with rents affordable to household with moderate incomes; • Small retail/office pad development,with a tenant likely to be complimentary to the senior • housing proposed. With this letter, we are pleased to offer our support to your organization in the Richfield HRA's RFP for the site. We appreciate you collaborating with us early on in the project to get our input and to see what kinds of partnerships we can engage in. We agree that integrating the proposed redevelopment with the community will provide benefit to housing residents and community members. Some of the ideas we discussed were: • Intergenerational activities with the senior housing residents and children participating in our preschool program and potentially students at the high school that will be leasing space in our building; • Access to cooking and meeting facilities for large events that our building is not equipped to accommodate; • Considering a shared parking arrangement with the proposed retail/office building for Sunday parking overflow and/or special church events. We look forward to continuing to work with your team as more details become available. Please feel free to contact me at 612-866-5405 with any questions. Sincerely, Duane Helm • Chairman, Facilities Use Committee CC: Pastor Mark Johnson, Mt. Calvary Lutheran Church "Thanks be to God who gives us the victory through our Lord Jesus Christ." I Cor. 15:57 • Attachment F.2 Letter of Interest — Bremer Bank • • r&sheman -- -- -- _ Cedar Point ASSOCIATES Redevelopment Bremer Bank • May 23, 2013 Mr. George Sherman Sherman Associates, Inc 233 Park Avenue South Minneapolis, MN 55415 Re: Senior Housing Development Richfield, MN Dear Mr. Sherman I am writing to confirm our interest in providing construction financing for a proposed senior housing development in Richfield, MN. • Bremer Bank is active in financing similar projects in the Twin Cities area, and based on our relationship with Sherman Associates we would be pleased to consider a financing request for this project. Any commitment to provide said financing would be subject to final terms and conditions negotiated between the Bank and borrower. Please contact me if you need additional information, or if you intend to make a formal application. Sincerely, Anthony M. Pasko Vice President • S Attachment F.3 Richfield Market Letter • S sherman - _ _-_ Cedar Point ASSOCIATES Redevelopment View oint� CONSULTING • G INC. May 23, 2013 Mr. Brad Goering Sherman Associates 233 Park Avenue South Minneapolis, MN 55415 RE: Summary of Initial Demand Assessment for Independent, Assisted Living, and Memory Care Housing in Richfield, Minnesota Dear Brad: This letter provides a summary of the findings from an initial demand assessment that Viewpoint Consulting Group, Inc. conducted for senior housing with services on a • redevelopment parcel in Richfield. The location for the proposed senior housing is the Cedar Point Redevelopment at 66th Street and 17th Avenue. The purpose of the initial assessment was to broadly assess the depth of demand for market rate senior housing in the local area to determine if potential exists to support a new development. Included in the initial assessment were specific demand calculations for three service-levels: congregate independent ("independent"), assisted living, and memory care housing. Potential demand was calculated based on analysis of the income/asset-qualified target market for market rate senior housing and the supply of competitive senior housing units serving the primary market area. The ability of the proposed development to capture unmet demand in the market area was also estimated in the assessment. Summary of Findings The primary market area ("PMA") for senior housing on the redevelopment site was defined as Richfield and two zip codes comprising Minneapolis roughly south and east of 46th Street and Penn Avenue—55417 and 55419. The PMA had a total population of 86,083 in 2010, of which 10,678 were over age 65 and 5,352 were over age 75. As of 2012, the senior population (age 65+) in the PMA is projected to have grown to 10,678 and by 2017 it is projected to reach 12,381. As the PMA's senior population grows, so too will demand for senior housing. • Viewpoint Consulting Group, Inc. / 9104 Barrington Terrace / Brooklyn Park, MN 55443 P. 763-273-4303 / www.viewpointconsult.com Summary of Initial Demand Assessment for Senior Housing in Richfield, MN • Richfield currently contains three senior housing properties offering services that would be competitive with the proposed development. They are Village Shores, The Pines, and Mainstreet Village, which combine for 403 units. There are also several other senior properties just outside the PMA in Edina, Minneapolis, and Bloomington that would be partially competitive due to draw area overlap. Including a portion of these nearby developments, we identified a total competitive supply of 386 independent units, 208 assisted living units, and 51 memory care units serving the PMA. While there are no pending competitive developments in the PMA, the competitive supply of senior housing will increase as new developments near the PMA are under construction or proposed. These include one development under construction in Minneapolis (The Waters on 50th), two proposed developments in Edina (6500 France and Continental Gardens) and one proposed development in Bloomington (Portland Commons). The initial demand calculations for market rate senior housing on the subject Site in Richfield are summarized in the table below. Total unmet demand in the PMA for the three service-levels was projected for 512 market rate units in 2012, but declining slightly due to competition from new developments that will be coming on-line near the PMA in Edina and Minneapolis. The estimated portion of PMA demand that can be captured by the Site is estimated at 35%. In 2017, this equates to demand for 57 independent units, 60 assisted living units, and 49 memory • care units, for a total of 165 units. This is market rate (or "private pay") and does not include additional demand that would come from lower-income seniors utilizing the Elderly Waiver program. Summary of Initial Demand Calculations, Richfield PMA, 2012 to 2017 Total Unmet Demand PMA Competitive PMA on Subject Demand Supply Demand Site 2012 Independent Living 561 367 195 68 Assisted Living 379 197 182 64 Memory Care 185 49 136 48 Total 1,125 613 512 179 2017 Independent Living 543 380 162 57 Assisted Living 407 237 170 60 Memory Care 207 68 139 49 Total 1,158 686 472 165 Source: Viewpoint Consulting Group,Inc. Viewpoint Consulting Group, Inc. Page 2 May 23, 2013 Summary of Initial Demand Assessment for Senior Housing in Richfield,MN • To be conservative, we would recommend a building on the Site with only about 85% of the 2017 potential as summarized in the table (or about 140 units). A building with 140 units would need to capture about 30% of unmet demand in the PMA to reach full occupancy (and only 12% of total PMA demand). As noted in initial demand assessment, the purpose of the assessment was to broadly assess the depth of demand for senior housing in the local area to determine if potential exists to support a new development. Thus, the findings are preliminary and should be viewed in that light. A full market feasibility study would more closely examine factors such as the desirability of the subject site and the performance of competitive buildings, both of which may impact demand. Please call me with any questions or if I can be of further assistance. Sincerely, Viewpoint Consulting Group, Inc. Jay Thompson • President • Viewpoint Consulting Group, Inc. Page 3 May 23, 2013 • S • r&sherman ASSOCIATE S REAL ESTATE MARKET ASSESSMENT, EAST 66TH STREET CORRIDOR PLAN RICHFIELD, MINNESOTA September 2010 GVA File#10017 PREPARED FOR: Mr. Tom Whitlock Damon Farber Associates 929 Nicollet Mall Minneapolis,MN 55402 PREPARED BY: GVA Marquette Advisors Real Estate Counselors GVA Marquette Advisors Offices: Minneapolis Office:50 South Sixth Street,Suite 1370,Minneapolis,MN 55402 Phone:612-335-8888;Fax:612-334-3022 Seattle Office:2723 California Avenue SW,Seattle, WA 98116 Phone:425-392-7482;Fax:425-392-7330 E. 66th Street Corridor Planning Richfield,MN Real Estate Market Assessment • Total home sales declined from 1,193 in 2006 to 1,049 in 2008, but increased to 1,228 in 2009. Sales volume has slowed in 2010. This year, the Market Area is on pace to see about 966 homes sold. • The average market time has fluctuated from 53 days to a peak of 65 days in 2008, and has averaged about 58 days over the past five years. Today, a single-family home in the E. 66th Street Corridor Market Area is expected to be on the market for just under two months (about 55 days). • A majority of senior homeowners will own their homes outright, and would have access to a sizeable financial resource in the equity they can realize from the sale of their homes. While the interest earned on investing these funds can help to offset the monthly costs associated with living in a senior housing facility,many seniors are also willing to begin spending down assets in order to live in a housing environment which meets their lifestyle preferences and care needs. For example, a senior who owns his or her home outright and has a home valued at$203,625 (the 2010 median resale price of homes in the Market Area)would likely be able to derive approximately $189,370 after factoring in marketing/real estate commissions and moving costs at roughly 7%. Should this equity be invested in an interest-bearing account with a 3% annual return, it would produce an income of $5,680 annually (or $473 per month). This income could be used to off-set the cost of senior housing, without spending down assets. Senior Housing Supply Table 13 shows the existing supply, as well as any pending senior housing developments in the 66th Street Corridor Market Area. We have included market rate independent senior rental communities, as well as congregate, assisted living and memory care housing. We have also identified owner-occupied senior cooperatives and condominiums, which will later be used in our demand calculations. GVA Marquette Advisors Page 46 n22 m CO nnm 0 ) o « 0m0 - a) C k \ - ® 7 \ % \ \ \ 2 )~ '- - N I � X772 � &G bU $ ^ ±# /a m4 ƒ$ $ R \ § § 4-d 09 Q0 19 r � ) � � ; ) $\ dd$ $ @ 0 0 0 00 000 - - / mmm ' G § 0 [ o E k 2 2 { 2 000 00 CO & Gm ° E20 $ " ®cn e > - j N t % 7 \ 9 . . \) ) _ / ) 0000 § g � 000 0 a) 0) 0) ) 2 e k / 0 D ... omN � 00 000 0 - � � ] \ ' © b CO \ csi f a) c / N 0No 19 .- 19 0 0 � ® � 0 § § Sm $ 0 mm0 0 00G - o ¥ m N ' '- C .- Ns- N N aNN \ N N a) o k ) # # 2 » » # Ca m e CO Ca > 600 EE 0QE E § Eaab I- 000 Ce CL ) CL CC ce CLCLCCOLCL o o o o ) k } ) ] I ] 77 - Ca CO ty . \ § p ee £ o0 T j ) ) ) ) J ESE J ww = m = c C = \ o / k _ § Cl) © ° , eej \ / 0 , 22 / \ \ //\ k .> 77 0 > E ; 22 \ / k 13 . [ J \ ° - Em k $ a) 0 - \ ® go 2 Co .2 ƒ 2 k ) / ( n { / i 0f f3 % ) S ° 0 m ° k 0 § �2d § E8 \ ] CL 0" o e - c > ' 2n » • fm > > _ ® � mEco e 7c) \ @ } § '5 / Aso £ £ — e - C ® o oo e > ai _ s ° . E � Eoo 0 . � n » . � 2 ' - 2 uwE E20602 0 o of = o &) ) k 7 & m = / J co �/ = 2 , w � = § ( § c _ ) % gym - 2 �7 &� y2 &aT © a . - o « 7k - - E / % § .' k2 ± fa cF � a % 3eeo 226 ; « e0 - $ a 0 i- ww w � ) ] » ® 025 ¢ 25i- ■ R ® A / 4mna � § \ E. 66th Street Corridor Planning Richfield,MN Real Estate Market Assessment Independent Living • We identified three market rate independent senior living projects in the 66th Street Corridor Market Area, all of which are located in the City of Richfield. These properties include: Gramercy Park of Lakeshore Drive (160 units), Lake Shore Drive Condominiums (178 units), and Woodlake Point (157 units). Gramercy Park is a cooperative and requires an entry fee or down payment. Lakeshore Drive and Woodlake Point are both owner-occupied senior condominiums. All ownership properties also require monthly association fees. • The three projects have a total of 495 units and a mixture of unit types. Gramercy Park Coop of Lakeshore Drive was built in 2000 and has mixture of 1BR, 2BR and 3BR units. The entry price ranges from$47,710 to $103,677,with monthly association dues of$1,085 to $2,383. Lakeshore Drive Condominiums were built in 1982 and has a unit mix of 1BR floor plans, 1BR+Den units, and 2BR units. Association fees range from $267 up to $434 per month. Woodlake Point was built in 1986 and has a mixture of 1BR's, 1BR/D's and 2BR's, with association fees ranging from$240 to $515 per month. • Additionally, the City Bella community at 66th & Lyndale is a co-operative high-rise with, although not age-restricted, contains a number of senior residents. From our familiarity with this project and interviews with other industry experts we estimate that approximately 75% of City Bell'as 138 units are occupied by seniors. Congregate(Housing with Services) • We identified two congregate/optional services properties in the Market Area. These projects include Mainstreet Village (69 units) and Village Shores (145 units), both located in Richfield. • The two congregate with services projects combine for a total of 243 units. The rents at Mainstreet Village begin at $1,166 for a one-bedroom unit and go up to $1,887 for a two- bedroom unit. Rents at Village Shores begin at $1,119 for a one-bedroom and go up to GVA Marquette Advisors Page 48 E. 66th Street Corridor Planning Richfield,MN Real Estate Market Assessment $1,748 for a two-bedroom unit. These properties offer additional care services, available on an a la carte basis. Assisted Living • We identified three assisted living communities for a total of 156 units in the 66th Street Corridor Market Area, all located in Richfield. The largest project is The Pines with a total of 78 units. Village Shores has 47 units and Mainstreet Village has 31 units. These projects have unit types ranging from studios up to two-bedroom units. Rents ranged from$2,500 per month up to $3,000 per month for studio units, $2,500 up to $3,450 for one-bedroom units, and$3,323 up to $4,985 for two-bedroom units. Assisted Living projects typically include at least two meals per day and assistance with at least three activities of daily living (ADL's). These services are included in the monthly fee. Memory Care • We identified only one memory care project (The Pines) in the 66th Street Corridor Market Area. The Pines features a total of four memory care beds (double-occupancy) with rents at $2,130 per month per resident. Planned and Proposed Senior Housing Developments As of September 2010,there were no pending senior housing developments in Richfield. We did identify two projects located in the City of Edina and three projects in the City of Bloomington, but we would not consider them to be directly competitive with new senior housing developments in the subject Market Area. They may be peripherally competitive, however, as these developments may attract a small percentage of their residents from the subject Market Area. GVA Marquette Advisors Page 49 E. 66th Street Corridor Planning Richfield,MN Real Estate Market Assessment Senior Housing Demand Estimates The following paragraphs summarize our calculations of market demand for senior housing in the E. 66th St. Corridor Market Area. Our calculations are summarized by product type, and are based upon our review of the age/income-qualified senior resident base in comparison with the supply of senior housing units available within and near the subject Market Area. Independent&Congregate Senior Housing Demand In determining demand for independent & congregate seniorl housing, we estimate the potential market to include those households that are both age and income qualified. Seniors age 55 and older are defined as the age-qualified market, although such developments typically attract seniors age 65 and older. See Table 14 for detailed demand calculations. • The minimum household income required so as to afford independent or congregate senior rental housing at approximately $1,000/month and up is estimated at $30,000 per year. Additionally, however, we include senior homeowners with incomes of$20,000 to $29,999, since these seniors may be able to supplement their incomes with the proceeds from the sale of their home. Our calculations indicate there are an estimated 11,210 senior households in the Market area with incomes of$30,000+, as well as those within incomes of$20,000 to $29,999 who own their homes. • We then adjust to include appropriate short-term capture rates for each age cohort. We use 1.0% of households age 55 to 64, about 6.5% of households age 65 to 74, and 20.0% of households age 75 and older. These capture rates are based on our review of the income-qualified household base compared with the resident base for independent senior housing communities in the metro area. This results in short-term demand potential for about 882 independent senior units in the Market Area in 2010. GVA Marquette Advisors Page 50 Co 0 p) O N N 0 0 0 (0 ° Co V M o CO V' r N LO N 0 Co CD O N co O O N N N V' N N N N to Cn N 'ct N N N i 0 N ° 00) W N. ° (0 N o ') h o O CD N V t� N O CO N CO r NO O CO N M N n CV M N i N V' ° CO N 0)) ° U") I() o CO N_ O o O LO M N N d' CO c- M N N V co 10. N N N CD co" M Cfl i ``) � CMO Co V 1 Cn (eO N eh ° l j co CO N Cn N M IT N d' I. O V N Lo- C° To' d Q O O _ o o N ° ° n o o O a a O C C o o o a p �O c C C O a) CU N N O C U C U C a) a) N a) y ac) a C o a a) a) a c � .O N a) a) C o c o a o ns N 0 ] Q C 7 — a aco N as co a 0) C E ° V m E O O O O 0 o C6 7 ›„ O a i5 o N C *rN+ E co C V) v U N co 2 ,f c Q C X } a3 C O p C .Y o d D ..N.. N o ,E N 'U) Cn p a3 ? 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P O ° I- a co N w n a v m E E w Q m E a� N w v 0 °- 0 v�) E E w aa; E E au Q ° co E. 66th Street Corridor Planning Richfield,MN Real Estate Market Assessment • We then subtract the existing competitive senior rental units and market overlap with existing senior ownership units (including 75% of all senior condominiums and cooperatives) in the Market Area (accounting for a 5%vacancy rate). Subtracting for the current unit inventory indicates there is local demand for another 189 independent senior units in the Market Area. • Some additional demand will come from outside the defined Market Area. We estimate that 10% of the additional demand for independent senior rental housing will be generated by seniors currently residing outside the Market Area. This demand will consist primarily of parents of adult children living in the Market Area, individuals who live just outside the Market Area and have an orientation to the area, as well as former residents who desire to return. This results in an additional demand for 21 units, equating to short-term demand for about 210 independent senior units in 2010, including age- restricted rentals with no services and congregate housing. • Table 14 also shows our estimate of demand by 2015, adjusting for growth in the income/asset-qualified household base over time and expected changes in the senior unit supply. We did not identify any planned senior rental units located within the subject Market Area, but we did identify five planned/pending projects just outside of the Market Area in Edina and Bloomington. We estimate that only about 10% of these units would be competitive with the proposed project in 2015, meaning that only about 10% of the resident base for these new properties will come from our defined Market Area. Adding the various demand sources and then subtracting for the projected unit totals results in revised demand for up to In total, then,we calculate demand for 220 units by 2015. GVA Marquette Advisors Page 52 E. 66th Street Corridor Planning Richfield,MN Real Estate Market Assessment Assisted Living Demand Table 15 presents calculations of demand for assisted living units for the Market Area. The availability of intensive support services such as meals, housekeeping, and personal care at assisted living facilities usually attracts older, frailer seniors. Hence,the age-qualified market for assisted living housing is defined for our analysis purposes as persons ages 75 and over. • The first step in determining the potential demand for assisted living housing is to identify the age/income-qualified market, based on a senior's ability to afford the monthly fees at an assisted living facility. Based on our review of household income and age data for the Market Area,we estimate roughly 52% of all senior households would be income/asset qualified($40,000+ incomes), which results in an estimated household base of 1,750. • Because demand for assisted living housing is need-driven, the age/income-qualified market is reduced to account for the potential market that needs assistance. Studies indicate that about 35% of all seniors age 75 and over need assistance with at least three activities of daily living. We apply this proportion to the age/income-qualified household base, which results in a potential assisted living market base of 613 seniors in 2010. We estimate that roughly 70% of the age/income-qualified market needing significant assistance with ADLs will be able to remain in their homes with the assistance of a family member or home health care agency. The remaining 30%will need assisted living housing within the next three years. We apply this short-term penetration rate which gives us local potential demand for 184 assisted living units in 2010. • Additional demand will also come from residents that are currently living outside of the Market Area. We estimate about 20% of demand will be generated persons currently residing outside of the Market Area. Because of the availability of services, Assisted Living housing tends to draw seniors from a greater distance compared to Independent Senior Housing products. We then subtract existing and pending assisted living units in GVA Marquette Advisors Page 53 E. 66th Street Corridor Planning Richfield, MN Real Estate Market Assessment the Market Area (subtracting for a 7% equilibrium vacancy rate). As of September 2010, there are a total of 149 existing units and no pending assisted living units. In total, our calculations indicate demand for 81 assisted living units in the East 66th Street Corridor Market Area in 2010. Table 15 Projected Demand for Assisted Living Senior Housing,2010 and 2015 66th Street Corridor Market Area 2010 Demand Householders Age 75+ 4,429 (times)Senior Homeowners 76% (equals)Estimated Age 75+Homeowners 3,366 (times)Estimated%Income/Asset Qualified for Assisted Living Senior Housing 52% (equals)Estimated Age/Income Qualified Household Base 1,750 (times)Estimated%Needing Assitance with 3+Activities of Daily Living(ADL's) x 35% (equals)Age/Income Qualified Market Needing Assistance = 613 (times)Short-term capture rate x 30% (equals)Local market demand potential = 184 (plus)Estimated Additional Demand from Outside Market Area @ 20% + 46 (equals)Potential Short-Term(2010)Market Base = 230 (minus)Existing Assisted Living&Memory Care Units* - 149 (equals)Excess local demand potential = 81 (minus)Planned&proposed assisted living&memory care units(not including subject project) - 0 (equals)Projected Short-Term Unit Demand(as of 2010)(Over 3 Years) =1 811 2015 Demand Householders Age 75+ 4,215 (times)Senior Homeowners 76% (equals)Estimated Age 75+Homeowners 3,203 (times)Estimated%Income/Asset Qualified for Assisted Living Senior Housing 63% (equals)Estimated Age/Income Qualified Household Base 2,018 (times)Estimated%Needing Assitance with 3+Activities of Daily Living(ADL's) x 35% (equals)Age/Income Qualified Market Needing Assistance = 706 (times)Short-term capture rate x 30% (equals)Local market demand potential = 212 (plus)Estimated Additional Demand from Outside Market Area @ 20% + 53 (equals)Potential Short-Term(2015)Market Base = 265 (minus)Existing Assisted Living&Memory Care Units* - 149 (equals)Excess local demand potential = 116 (minus)Planned&proposed assisted living&memory care units(not including subject project) - 45 (equals)Projected Short-Term Unit Demand(as of 2015)(Over 3 Years) =I 711 `Accounts for a 7%vacancy rate Source:GVA Marquette Advisors • Again our calculations indicate demand for Assisted Living by 2015, adjusted to account for growth in the age/income household base and changes in the Assisted Living unit GVA Marquette Advisors Page 54 E. 66th Street Corridor Planning Richfield,MN Real Estate Market Assessment supply in nearby markets. Our cacluations indicate demand for Assisted Living will decline to about 71 units by 2015 due to supply increases in neighboring communities. KEY ISSUES RELEVANT TO THE E. 66th STREET CORRIDOR PLAN Based on our analysis of real estate market conditions, we identified the following key issues that we feel should be considered in the development of the E. 66th Street Plan. Housing • The corridor currently contains several market rate apartment buildings, particularly in the western portion of the study area. Fieldwork indicates that these buildings appear to be well maintained. Our assessment of rental market data indicates that these and similar "workforce"affordable rental units throughout the area are well-occupied. • We suggest that the City support upgrade and preservation of these workforce housing units over time along the corridor. However, construction of additional multi-family rental housing along the corridor will be a challenge for two primary reasons — 1) the small size of parcels fronting 66th and the lack of depth and 2) not financially viable based on current construction costs in comparison with market rental rates. • We understand that the City is targeting multifamily development for a two-block area just west of Cedar Point Commons. Our review of this location and surrounding neighborhood and demographic data suggests this area is best-suited for senior housing. Our calculations indicate market demand for approximately 210 independent senior units and 80 assisted living units at this time, market-wide. GVA Marquette Advisors Page 55