12-11-2001 Lyndale Gateway West Redevelopment Area~ ~.
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Table of Contents
Conceptual Diagrams
Summary ofProposed Land Uses
Proj ect Financing
Proposed Schedule
Developer Experience
Additional Developer Qualifications
~~~~ N~AINSTREET GATEWAY
4® THE
CORNERSTONE ~ REI~EVE~OPME.NT
' ~ i ~ RICHFIELD, MINNESOTA
~~i~; S~iLE IN FEET ..: 110CTOSER> 2001
WITH ELNESS SWENSON GRAHAM ~-
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SURFACE PARKING; 12 CARS;
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caRNERSTONE REDEVELOPMENT
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UPPER LEVEL PLAN
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~° coRNERSTONE .REDEVELOPMENT
~~ c e o u r ~ RICHFIELD, MINNESOTA'
~~~~~~~ 'y SCALE IN FEET -~~ 11 OCTOBER, 2001
WITH ELNESS SWI;NSON GRAHAM
' LTD, ARCFIITCCTS 1NC. ~~~ff///
R1VIF ENTITIES, 0 20 ao so 10o NORTH
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3 STORIES OVER RETAIL; 57 UNITS
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I~~'~,~~sed Land Uses
The Lyndale Gateway West project is comprised of townhomes, lofts, retail and restaurant space. The
goal is to create a contextual, neighborhood-friendly design that creates excitement and interest for
residents of Richfield and the greater community. We have designed a housing plan that we hope will
have cross-generational appeal.
The specific project components include:
20,000 rentable square feet of retail space
81 lofts/condominiums with underground parking
20 townhomes with tuck under, double garages
Retail
Two buildings, each approximately 4,000 square feet, will anchor each corner ofthe block. These
sites are ideally suited forfull-service restaurant tenants and are designed with additional outdoor
seating and plaza/commons space to serve as an amenity to the entire development.
In addition, 12,000 square feet ofadditional retail space is designed along the Lyndale frontage. A
portion ofthat space is designed with convenient drop-offparking to encourage retail tenants such as
coffee shops and bakeries for the quick in-and-out consumer. We anticipate other neighborhood
friendly retailers and service providers to occupy the remaining spaces.
The site is ideally located for Class "A"tenants and much interest has already been generated. While
we have received inquiries from a number ofpossible tenants, we will work diligently to develop a mix
of credit worthy tenants that fulfill a need in the community and compatible with the housing
development.
Lofts/Condominiums
Eighty-one lofts will be designed over the retail space along Lyndale Avenue. The northerly portion of
the building will be three-stories of housing over retail for a total of 57 units and the southerly portion will
be two-stories of housing over retail for a total of 24 units. The units will range from 775 - 1200 square
feet and will differ from traditional condominium design. Open floor plans, high ceilings, balconies,
contemporary finishes, and shared commons space with the retail will create a more urban lifestyle for
the homeowners. Prices will range from $135,000 to $2l 0,000 depending on the size/type of unit and
any upgrades/custom work the buyer may select. A component of the project will be priced affordably
to allow buyers to qualify for first-time homebuyer or other buyer assistance programs.
~n to
~r' CORNERSTONE
' G R O U P
i`R "?
Pro~~~ed Land Uses
Townhomes
Five buildings of four townhomes each will be developed along Aldrich Avenue. The units will be single-
loaded (not back-to-back) with double garages. The units are approximately 1,300 square feet with two or
two-plus bedrooms. Sales prices are estimated to average $190,000. A significant landscape buffer will
separate the townhomes from the surface parking lot and garages will be accessed from 76th and 77th
street entrances, thus avoiding any additional traffic on Aldrich Avenue. The homes will be designed to be
compatible to the rest of the development but will also serve as amuch-needed buffer to the single-family
neighborhood to the west.
Parking
Parking is an extremely important issue for the site. Parking must be convenient and efficient to ensure
successful retail but it also needs to be designed to be aesthetically sensitive to the surrounding housing
and not overwhelm the site. This proposal addresses both interests. Specific data includes:
20 Townhomes - 40 garages (all homes with two-car garages)
81 Lofts - 119 spaces underground, 12 dedicated cars on the surface and 20 shared cars on the
surface (1.5:1 underground; 1:1.86 total)
20,000 sq.ft. retail - 100 dedicated cars and 20-shared cars on the surface (5/1,000 sq.ft. plus 20
shared spaces)
Streetscape/Landscape/Lighting
The streetscape plan will be designed to follow the guidelines already established as part of the overall
Gateway development. Additional sidewalks, plaza space, and other hardscape areas are planned to
encourage pedestrian movement. The site will be heavily landscaped with evergreens, deciduous trees,
shrubbery and planters. Ornamental lighting will be located on all retail entrances and site lighting will be
designed to allow appropriate lighting for the parking area while also creating privacy for the homeowners.
We will work with the City to ensure that the design work is compatible with the entire Gateway area.
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CORNERSTONE
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Project Financin
Attached is a preliminary Sources and Uses of funds for the project. As with any project, this proposal is
based on a set of assumptions. We remain open and flexible about the overall plan and we will adjust/
modify these assumptions as we work with staffand continue to work through the many issues related to
financing ofthe project.
For purposes ofthis proposal, we have assumed that the project will generate approximately $1.4 million
in net present value tax increment over 23 years. We have also assumed that the revenue from the 1999
bond sale is also available to the project and is approximately $650,000. The developer will be contributing
approximately $ L6 million to the project to help offset the enormous cost ofland acquisition.
While the project has a small shortfall at this time, our numbers are on the conservative side. We believe it
is a workable pro forma at this stage of the process and we will work with the City to identify other
potential sources of funding, other ways to create savings, and/or other ways to increase the overall value
of the project.
1
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THE
JERSTQNE
;aouP
Project Financin
Developer Land Payment $ 1,595,000
Component Ave. Market Value Volume
For Sale Townhomes $225,000 20 Units
For-Sale Lofts $160,000 81 Units
Retail $120 p.s.f. 20,000 s.f.
Total Market Value $20,460,000
Sources of Funds
First Mortgage $ 4,000,000
PayGo TIF Financing $ 1,500 000
City ofRichfield Bonds $ 650,000
Sales Proceeds $17,460,000
Total $25,205,000
Uses of Funds
Acquisition Costs $ 4 800 000
> >
Construction Costs $ 14,945,000
ArchitecturaUEng. $ 625 000
Marketing $ 1,200,000
Carry Costs $ 600,000
Special Consultants $ 30 000
Financing Costs $ 325000
TItle and Recording $ 150000
Developer Fee $ 2 800 000
Other Soft Costs $ 100,000
Total $25,575,000
DETAILED
SOURCES AND USES
Lofts on Lyndale
Cosst.
Total Project Period
SOURCES OF FUNDS Budget Funding Commercial Residential
Permanent 1st Mortgage (Commercial Space) $4,000,000 50 $4,OOQ000
City/Stata/Etc. $65Q000 $65Q,000 $650,000
TIF Proceeds $1,462,975 $1,462,974 $219,446 $1
243
529
DevcloperLandPaynrent $1,595,000 $1,595,000 $239,250 ,
,
$1
355
750
Equity hrvestment $0 $2,500,000 ,
,
Sales Proceeds $17,460,000 50 $17,460
000
Other Sources secured by Developer $0 $199,15U ,
Constmotion Loan $0 $16,095,000
TOTAL SOURCES OF FUNDS $25 167 975 $2~ 502 125 $4,458,696 $20,709,279
Const.
USES OF FUNDS Total Project Period
Budget Funding
Acquisition&Relocation 16% $4,1OQ000 $4,1OQ,000 $615,000 $3,485,000
Abatement/Demolition $SOQ,000 $500,000 $75,000 $425
000
Option Extension Fees $0 SO ,
Brokerage Fees/ Commissions $200,000 $20Q,000
Other $0 $~)
Total Ac uisition Costs $4 800 000 $4 800 000 ~~ $690,000 $3 910 000
Constmction
Retail 20,000 $1,800,000 $I,SOQ,000 $1,800,000
Apartments 0 $0 $0
Lofts and Rowhorrses 101 $10,356,750 $10,356,750 $10
356
750
Parking Spaces 119 $1,428,000 $1,428,000 ,
,
$1
428
000
Contin ency $1,358,475 $1,358,475 $203,771 ,
,
$1
154
704
Total Construction Costs $14 943 225 $14 943 225 $2,003,771 ,
,
$12 939 454
Architectural/Engineering
Architectural Services $597,729 $597,729 `589.65) SSOfi 1)70
Architectural Inspection $0 $0
Architectural Reimbnrsables $0 $0
3oilSludies $10,000 $1Q,000 5,500 58.500
Surveys $15,000 $15,000
52.250
$12
750
Civi1L'ngineer $0 $0 ,
Stmctural Engineer $0 $0
Mechauical/Electrical Engineer $0 $0
Special Consultants $0 $0
Contingency $0 $0
Total Architechua]/En ineerin 8 % - 10° $622 729 $622 7~9 _.~. $93,409 $529 320
Marketing
Signage $15,000 $15,000
$2,250
$12
750
Advertising $0 $0 ,
Open Houses $0 $0
Leasing Commissions on Commercial Space $4.00 $80,000 $80,000
Sales Commissions on For Sale Units 0.05 $785,700 $785,700 $785
700
Other Marketin $250,000 $250,000 $37,500 ,
$212
500
Total Marketin $1 130 700 $1 130 700
$39,750 ,
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$1 O10 J50
Canying/Operating
InitialEgnipment $100,000 $lOQ,000 $15,000 $85
000
Utilities during Const. and Lease-up $0 $0 ,
Properly Insurance $0 $0
Construction Period Interest ]2 $482,850 $482,850 $72,428 $410
423
Real Estate Taxes during constmction $0 $0 ,
Operating Defrcit during Sales Period (Ass. Fees) 10 $20,000 $20,000
Rent-up Reserve $0 $0
Operating Reserve
$0 ....
$0
Contin ency $0 $0
Total Carrying Costs $602 850 $602 850 $87,428 $495 423
Special Consultants
Page 1 of 2
DETAILED
SOURCES AND USES
Lofts on Lyndale
'total Project Const.
Period
Appraisal
Envirourrtental Consultants $7,500 $7,500 $1,125 $6,375
Feasibility Study $4,000 $4,000 $600 $3,400
Marketing Study $0 SO
Development Manager $20,000 $20,000 $3,000 $17,000
Cost Certitcation $0 5~0
Tofal S ecial Consultants $0 SO
$31 500 $31 500 ~ ~ $4,725 $26 775
Pinancing Costs
Conslmction Loan
Loan Origination Fees
Lenders' Fees -Construction Inspection 1.50% $241,425 $24] 425 $36,214 $205,211
Lenclcrs Lega] $15,000 $15 000 $2,250 $12,750
Permaneu[Loan $15,000
$15000
$2,250
$12,750
Lenders Fees
Lender's Legal Fees
1.00% $40,000 $0
$40,000
$6,000
$34,000
Park Dedication Fee $10,000 $10,000 $1,500 $8,500
Applicalinu Fee $0 $0
$0 $0
City Pees $0 $0
Contin enc
Total Financing Costs $5,000
$5,000
$750
$4,250
$326 425 $326 425 $qg 964
$277461
'title and Recording
'title Insurance
Mortgage Registration $37,752
$37°752
$5,663
$32,089
State Deed Tax $9,200 $9,200 $1,380 $7,820
Recording Fees $9Q,900 $90,900 $90,900
Chisiug Pees $500 $500 $75 $425
Disbursement Fees $10,100 $10,100 $1,515 $8,585
Abstract Pee $2,400 $2,400 $360 $2,040
Name Search $500 $500 $75 $425
Assessment Search $0 $0
Other Title and Recording $0 $0
Total Title and Recording $1,500 $1,500
~ $225 $1275
$152 852 $152 852 $9,293 $143 559
Other Costs
Equity Investment-LegalFees $1Q000 $10
000
Equity Investment Fees and Costs
3 % $75,000 ,
$75
000 $1,500 $8,500
GP Legal-Real EstateBuilcling , $11,250 $63,750
GP Legal-Other $50,000 $50,000 $7,500 $42,500
GP Development Fee $25,000
$25,000
$3,750
$21,250
_
IoralOtherSoftCosts 12 % $2 800 000 $0
__._,_,,~ $42Q000 $2,380,000
COSTS
Page 2 of 2
1
' !\~ht='
~~ THE
i CORNERSTONE
G~ GROUP
•~
Proposed Schedule
The following schedule is preliminary, based on the information available to us at this time. We will
coordinate with staffand work diligently to move the project through the acquisition stage and the
design/developmentstage aseffectively and efficiently as possible.
Event
Negotiate Development Agreement
Market Study/Neighborhood Process
Preliminary Planning Approval/Schematics
Architectural -Design/Development
Architectural -Construction Drawings
Loan Commitments
Presales/Preleasing
Acquisition/Relocation
Bid and Review Process
Demolition
Construction Start
Construction Complete -Retail/Lofts
Construction Complete - Townhomes
Earliest Latest
Time Required Completion Date Completion Date
2 - 4 Months February-02 April-02
2 - 3 Months March-02 April-02
1 - 1 1/2 Months May-02 September-02
2 Months May-02 July-02
3 - 4 Months August-02 November-02
3 - 4 Months August-02 November-02
4 - 6 Months August-02 November-02
8 - 12 Months August-02 January-03
1 Month September-02 December-02
1 - 2 Months late Sept./Oct. 02 Feb./March 03
n/a late Oct./Nov. 02 April-03
10 - 12 Months October-03 April-04
9 - 11 Months September-03 March-04
THE
CORNERSTONE
GROUP
~ `--
Developer Experience
Proven Development Record
The Cornerstone Group/RMF Entities, Ltd. Development Team has over 40 years of combined experience
in housing and retail development. We have completed over $250 million in development initiatives
including new construction, redevelopment, and rehabilitation projects for both housing and retail.
Our firms have a proven development record and we are known for our ability to work through difficult
redevelopment issues. We are committed to ensuring that our projects are successful over the long term.
We continue to be good neighbors and be well received in the communities we serve. We pride ourselves
on our reputation for staying with projects to ensure their Long-term success.
Multiple disciplinary approach
The complementary skills of our team members ensure that all aspects of the process will be executed
with excellence including market assessment, architectural design/production, development and
construction, sales and property management. Our team members understand collaborators' disciplines,
providing a foundation for excellent communication within our team.
Committed to working cooperatively
We believe that communication is essential for this project to be successful. Our team understands how to
work well with the many parties involved in the process and project. We are committed to working
cooperatively with the City, the neighborhood groups, existing business owners and tenants, and other
groups to achieve a development that fits seamlessly into the neighborhood and completes the Gateway
area.
Emphasis on design/development
Our team experience gives us the necessary tools to design anaward-winning project. We are
committed to developing a design that is sustainable, attractive, marketable, and will have long-term
impact inthe community.
Elness Swenson Graham has an outstanding reputation throughout the metropolitan area as a firm that
understand how to balance creative and contextual design for the overall project with functional, efficient
design for the end-users. The firm has a long and distinguished project list in residential, retail and
mixed-use development.
Capacity to finance the project
Our team has maintained excellent credit worthiness and financing relations with multiple lenders and area
banks. We are happy to provide lender references upon request.
TH
CORNIER TD
NE
7661 Push Lakc Drive • Ploomington, MN 55348 • Phone 952/942-6900 • fax 952/942-6902 • tivvv~v.thecornerstone~roup.com
r
TH F,
CORNERSTONE
G R O U P
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l
The Cornerstone Group, founded by Colleen
' ~~ Carey in 1993, is an award-winning real
estate develo meat team that cre . ~ •
p atES unrque
and diverse nzultifatnily housing
•. •
developments. Our mission is to provide high . ~,
-
quality housing that enhances the
' Minnesota Multi Housing Association
communities in which it is located and MADACS Awards
improves the lives of the people who reside 200o Best Project Renovation
there. Cathedral Hill Homes, St. Paul, MN
' 2000 Best Site Signage
As of 2001, The Cornerstone Groups Bluff Park Homes, St. Paul, MN
successful development initiatives totaled 1999 Property Excellence
Affordable Housing
$76 million. These many faceted projects BluffParkH°mes' St. Paul, MN
' range from 30- to 168- unit developnzent.s and 1999 `rota] Building Renovation
include new construction, rehabilitation of Bluff Park Homes, St. Paul, MN
'
existing housing stock in both urban and 1998 Property Excellence
Best New Development
suburban conznzunities', and historic Minnetonka Mills Townhomes, Minnetonka, MN
restoration. 1998 Best Signage
Columbine Townhomes, Eden Prairie, MN
'
We Value Our COYilmunity 17artnerS and 1997 Best Landscape
Columbine Townhomes, Eden Prairie, MN
together WOrk Very hard t0 ensure a project S St. Paul Heritage Preservation Commission
long-term success. We are able to gather the
Award of Recognition for
CreatlVe 1''eSOUrC2S necessary t0 L'0172p1ete Historic Rehabilitation
'
complex projects and look, forward to new Cathedral Hill Homes, St. Paul, MN
challenges and opportunities. Minnesota Housing Finance Agency
1998 Housing Design Award
____. - Bluff Park Homes, St. Paul, M1V
THE
RNERSTONE
G R o u r
Colleen Carey President
Colleen Carey brings 16 years of experience in the field of real estate development and finance to
The Cornerstone Group. Prior to establishing The Cornerstone Group, Ms. Carey served for seven
years as the Executive Director of Twin Cities Housing Development Corporation, during which
time the organization participated as a developer in over $130 million of housing developments with
projects ranging in size from five units to 1,300 units. She was also in charge of raising nearly $45
million in private equity investments through the sale oflow-income housing tax credits.
Carey has completed a number of historic restorations, several commercial developments, and for-
sale housing projects in addition to her extensive multifamily rental development experience. She is
familiar with many financing alternatives including conventional sources, public/government
funding, tax-exempt bond issues, and credit enhancement vehicles. She has considerable experience
in the use ofpublic-private partnerships to facilitate real estate development.
Carey holds an MBA from the University of Wisconsin with a major in Real Estate Development
and Investment Analysis. She is a licensed Minnesota real estate broker, a current member and past
Board member of the Minnesota MultiHousing Association, and the National Leased Housing
Association. In addition, she has served on the Board of Directors of The Ripley Foundation and the
Harriet Tubman Center and is currently the Board Chair of the Illusion Theater in Minneapolis.
Patricia 5t. Pie
rre. /ice President
' Patty St. Pierre has been with The Cornerstone Group for eight years and has 16 ears of ex eri
m the field of real estate with a specialization in multi-family housing development and P ence
1 management. She is responsible for managing the design and construction process on all of The
Cornerstone Group's new construction and renovation projects. St. Pierre is also responsible for tax
credit compliance and monitoring.
^ Prior to joining The Cornerstone Group, Patty was the Director of Property Management for Twin
Cities Housing Development Corporation. St. Pierre was also- co-owner of a firm that specialized in
' the management and renovation of inner-city apartment buildings. Additionally, St. Pierre developed
and implemented maintenance programs and renovation projects, from planning stages through rent-
up and analyzed financial and capital requirements for owners.
1
TH E
RNERSTONE
G R O U P
Ross Currier project IV~anacer
Ross Currier brings over a decade of experience in real estate development, consulting, finance and
asset and property management in both the non-profit and for-profit sectors. Mr. Currier has worked
extensively with government agencies, educational organizations, arts agencies, tribal councils, and
private developers on the design, financing, and construction of single family and multi-family
housing, historic renovation and specialized community facilities. Currently, Currier is the Project
Manager on The Great Northern: Historic Riverfront Lofts condominium development in the
Lowertown area of St. Paul.
' Prior to joining The Cornerstone Group, Mr. Currier was an independent consultant for numerous
non-profit housing agencies. Mr. Currier was also in project management at the Greater Minnesota
Housing Fund and Artspace, Inc. He received his B.A. in Political Science from Wesleyan
University, Middleton, Connecticut and his M.B.A. from the College of St. Thomas Graduate School
of Business, St. Paul, Minnesota.
' Heidi Kurtze, deyeLo ment ana er
Heidi Kurtze has over eight years of experience in housing and community development activities in
both the public and private sectors. Ms. Kurtze has a proven track record of successfully managing
' the development process for complex housing initiatives and mixed-use developments. She also has
extensive experience in the design, financing, marketing and customer service of for-sale single-
family and multi-family homes.
Before joining The Cornerstone Group, Kurtze was Development Manager for Ron Clark
Construction of Edina, MN, Project Manager and Sales Manager for The Shaw Company of
Chicago, Illinois and and the Housing Coordinator for the City of Minnetonka. Ms. Kurtze received
her B.A. in Political Economy from Michigan State University and a Master of Planning degree from
the Hubert H. Humphrey Institute of the University of Minnesota.
L game
la Endean. Communications Coordinator
Pamela A. Endean, Communications Coordinator for The Cornerstone Group, has worked art-time
with the organization since June, 2000. Pam works with staff on communicating Cornerstone's
1 activities with the appropriate audiences. Pam also works with Cornerstone's Resident Services
Programs at three of our sites in the area of program development, administration, and fundraising
with our non-profit partners. Pam has undergraduate degrees in philosophy and theatre arts from
Radcliffe College and Beloit College respectively and a graduate degree in theatre arts from the
University of Minnesota.
~~
_1
Recent Projects
t
a rketpl.ace
800 (V~ainstreet, ~oPkins, MN
Our newest project -Coming in 2002.....
Frr
The Cornerstone Group and RMF Entities, Ltd. were selected in Septem-
ber 2001 as developers fora $21 million redevelopment project in down-
town Hopkins. The site is located on historic Mainstreet between 7th and
8th Avenue.
The mixed-use project will consist of 15,000 square feet of retail and
restaurant space on the first floor and 98 for-sale lofts and condominiums
above the retail and along 7th Avenue.
The project will be designed within the historical context of Mainstreet
with varied rooflines and staggered setbacks giving the Mainstreet eleva-
tion the appearance of small, separate buildings, each with its own
identity, similar to the historic fabric which currently exists.
The units will range from approximately $125,000 to $250,000. Presales
will begin in spring of 2002.
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The Great Northern -
~ istoric Riverside 281 fast I~.elloy~C boulevard 5t Paul ~N
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Site Location
The James J. Hill Office Building, located in the
Lowertown Historic District of St. Paul, was
constructed during 1887 and 1888 as the office
headquarters for the St. Paul, Minneapolis, and
Manitoba Railroad (later to become the Great
Northern Railway Company) by the railroad baron
James J. Hill. He directed the railroad empire
from his office in the southeast corner of this
massive building.
The Historic Lowertown District in St. Paul with its
dense concentration of architecturally significant
buildings, continues to makes this area attractive to
businesses and to residents who want a unique, urban
living experience.
The Building
The architect/contractor of the J. J. Hill Building was
the Scottish immigrant James Brodie who also built
Hill's palatial Summit Avenue home and the sumptuous
Hotel Lafayette on Lake Minnetonka. The building is a
seven-story brick structure featuring a Richardsonian
Romanesque treatment of the massive rounded arched
entrance with huge sandstone voussoirs, and the overall
cubic form and symmetry of the Classical Revival style
of architecture. The U-shaped building features a stone
foundation on pilings, a brick exterior, interior masonry
load-bearing walls, steel beams, and brick arched
ceilings. This immense building is approximately one
block wide and one-half block deep. There is an
interior courtyard, approximately 32 feet by 78 feet,
that abuts the Lowertown Commons residential
building on the north. The courtyard is accessible
through an arched gateway along the Broadway (east)
side of the building-Hill. used this entrance when he
arrived for work in his carriage. This building played
an important role in the development of the railroad
industry in the Upper Midwest and Northwest.
The Great Northern Lofts
The renovated building will have 54 condominium
units. The development will include 1-, 2-, and 3-
bedroom units with wide-open floor plans. The units
range from approximately 900 square feet to 3,000
square feet. They will feature large, arched windows,
barrel vault ceilings, exposed masonry, and original
woodwork. The lobby will be restored and will include
the original wrought iron staircase. The project will be
completed in fall of 2002.
The Development Team
Architect Cermak Rhoades Architects
Contractor Frerichs Construction
Marketing Jay Nord, Edina Realty
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~ Cathedral a-.~il.l..~-~OC11e5 268 Selby avenue. ~t. pau~, N
M
' Site Location
Cathedral Hill Homes is located on Selby and Dayton
Avenues just west of the Cathedral of St. Paul in St.
Paul, Minnesota in the historic Ramsey Hill
Neighborhood. The development is located within
mile of downtown St. Paul and close to the amenities
' offered on Selby Avenue and nearby Grand Avenue and
University Avenue. The 60-unit project is an historic
renovation of seven buildings and a courtyard area with
' breathtaking views of the Cathedral dome.
Development Team
Architect Cermak Rhoades Architects
Contractor Frerichs Construction Company
Property Manager CommonBond Communities
Equity Investor The National Equity Fund
Attorney Winthrop and Weinstine
Sources of Funds
Project Scone
~ The seven buildings were built at the turn-of-the-
century and contained 42 "Pullman-style" apartments.
The development, called Selby Dayton Apartments,
was renovated in the 1970's and the 42 apartments
were subdivided into 93 small apartments, many with
kitchens and bedrooms so small as to make them
virtually useless. The property fell into disrepair and
suffered from neglect, resident abuse, and general
neighborhood decline. By 1997, when The
Cornerstone Group Inc. and its development partners
were designated redevelopers of the site, the property
was over 50% vacant and had become the Ramsey Hill
neighborhood's single largest problem property.
The redevelopment plan called for the complete
renovation of the entire property. The existing 93 units
were gutted and reconfigured to provide 60 units of
' one-, two- and three-bedroom apartments. The units
range in size from 600 square feet to 1,450 square feet.
Exterior improvements included brick repair and tuck
pointing, new roofs, new windows and entry doors, a
renovated courtyard area and children's play area as
well as new parking lots, landscaping, and wrought-
iron fencing. Interior improvements included fully
renovated units, new management office and
community space, creation of a Resident Service
' Center, and addition of astate-of--the-art security
system with card reader access systems.
HUD First Mortgage $1,067,673
MHFA 2"d Mortgage $1,281,723
City of St. Paul $440 000
MHFA Deferred Mortgage $285 000
Federal Home Loan Bank $400,000
Limited Partners $4,534,381
Total $8,008,777
The project was completed in December of 1999
fl
1
N~innetonka IV~ills
Tvwnhomes 11390 N~innetonka N~ills Road, N~innetonka, Iv~N
~, :v _ _ ~~- - -
1
Site Location
The Minnetonka Mills Townhomes site is located at
the intersection of Minnetonka Mills Road and
Hopkins Crossroad (County Road 73) in Minnetonka,
Minnesota. The site is located within one block of a
neighborhood shopping center with a grocery store,
restaurants, banks and numerous other small retailers.
1
Project Scope
The development included 30 units in the following
configuration:
7 two-bedroom units (1,150 sf) renting at $540-660 per
month
17 three-bedroom units (1,300 sf) renting at $625-760
per month.
6 four-bedroom units (1,375 sf) renting at $680-830
per month
The units are two-story townhomes with attached or
tuck-under garages. Each unit includes a spacious
living room, dining room and a large kitchen with an
island, all laid out in the "Great Room" manner. The
appliance package includes refrigerator, range and
range hood, dishwasher, and. disposal as well as a
washer and dryer in each unit. Each two-bedroom unit
has two baths and the three- and four-bedroom units
have three baths, one on the main floor and two full
baths on the second floor. Each unit also includes a
gas-fired forced air furnace and hot water heater as
well as individual central air conditioning. Residents
pay for their own gas and electricity.
Development Team
The Cornerstone Group developed the site. The
development team included:
Architect BRW Elness
Contractor Frana and Sons, Inc.
Equity Investor First Chicago Leasing Corp.
Property Manager Real Estate Equities
Attorney Winthrop & Weinstine
Sources of Funds
First Mortgage $1,378,900
Hennepin County HOME Funds $250,000
Public Housing Development Funds $337,356
Metropolitan Housing Resource Funds $100,000
Metropolitan Council LHIA Funds $100,000
General Partner $93,000
Limited Partner $1,596,375
Total $3,855,631
,. ;;~
CO~UCi1bl_11e TOWl1hOC11G5 _ 8621 Columbine Road, Eden Prairie, MN
_~
~~
~,
lea
~_
Site Location
The Columbine Townhomes site is located on
Columbine Drive near the intersection of Flying Cloud
Drive and Anderson Lakes Parkway in Eden Prairie,
Minnesota. The 3.2-acre site is located within 1/2 mile
of the Eden Prairie shopping mall, numerous retail
centers, Cub Foods, banks, and services. In addition
the site is located within a few blocks of the public
middle school and a large community park with bike
paths and an outdoor pavilion.
Proiect Scope
The site consist of 32 two-, three- and four-bedroom
units with rents ranging from $650 to $810 per month.
The units are two-story townhomes with attached
garages. Each unit includes a spacious living room,
dining room and a large kitchen with an island, all laid
out in the "Great Room" manner. The appliance
package includes refrigerator, range and range hood,
dishwasher and disposal as well as a washer and dryer
in each unit. Each unit also includes a separate furnace
with central air conditioning. Residents pay for their
own heating, electricity, and hot water.
Development Team
Architect BRW Elness
Contractor Frana and Sons, Inc.
Property Manager Real Estate Equities
Attorney Winthrop and Weinstine
Sources of Funds
First Mortgage $1,700,000
City of Eden Prairie CDBG Grant $142,125
Limited Partner $1,471,659
Total $3,313,784
apl.e pond domes _ 1816 Beebe IZaad, N~aplewood, N
~.~ M
Site Location
The project is located on Beebe Road in Maplewood.
The development is within one half mile of the
' intersection of White Bear Avenue and Larpenteur
Avenue, the location of a large neighborhood shopping
area with grocery store, drug store, hardware store,
' convenience stores, banks and restaurants. Maplewood
Mall is located to the north off White Bear Avenue.
' Project Scope
Maple Pond was built in 1976, under the name Archer
Heights Maplewood, on an 11.5 acre site with a small
pond and many mature trees, and consists of 2 large
three-story buildings, one containing 69 one-bedroom
apartments for seniors and the other containing 99 units
' of one-, two- and three-bedroom apartments for families
and the general population. The project currently
provides housing to many low-income households. The
' average income for all households is $10,63 I .
The project was built and financed using the HUD
Section 236 program. In addition to the Section 236
subsidy, the project also has 121 project-based Section 8
certificates that further increase the affordability of the
project. Forty-four of the certificates are utilized in the
elderly building and the remaining 77 are used in the
family building.
The development team updated the physical condition
of the property so that it functions well, has good curb
appeal and provides attractive, updated unit interiors.
They positioned the property to complete well with
surrounding market rate projects while attracting high
quality tenants and maintaining affordability for low-
income families and seniors.
The developers created a resident services program that
assists m stabilizing the lives of the residents. The
resident services program is tailored to the needs of
residents based on demographics, surveys, etc. It
includes programs for youth, adults, and seniors. Youth
programs focus on educational achievement and positive
recreational activities. Adult activities focus on career
enrichment and life enhancement, and senior activities
' focus on life enrichment and health care issues.
Development Team
The development team for this award-winning project
included:
Architect DJR Architects
Contractor Frerichs Construction
and The Cornerstone Group
Property Manager Real Estate Equities
Attorney Winthrop and Weinsteine
Sources of Funds
First Mortgage-HUD $2 088 545
Second Mortgage $2006 581.
MHFA Incentive Loan $350,000
MHFA $900,000
MHFA ARIF $400,000
MHFA FFCC $200,000
Family Housing Fund/Met Council $200 000
LP Capital- I ~ Allocation $3 028 430
Income from Operations $304255
Other $48,675
Total $9,785,868
I
n
~~U~~ pat"~C_~-IOCT1e5_ 328 Concord Street, 5t. Paul, IV~N
i
t
Site Location
Concord Square Apartments consisted of 118 units of
one- and two-bedroom apartments in four buildings.
HUD owned the project after a foreclosure. Nearly
50% of the apartment units were vacant and
uninhabitable. The City of St. Paul designated The
Cornerstone Group and its development partners as the
redevelopers of the site.
Project Scope
The development team, Bluff Park Homes Limited
Partnership, proposed to demolish two of the existing
buildings, renovate 44 apartments in the two remaining
buildings at the east end, and build 29 new, family
townhouses on the balance of the site. Our goal was to
achieve long-term stability for the development in a
way that provides a viable home for families to raise
children and enhances the surrounding community. In
the process of meeting these goals, we reduced the site
density, minimized resident displacement and
relocation costs, created more usable green space to
accommodate families, and created an urban
streetscape to integrate the development into the
community. The two existing buildings underwent a
major exterior and interior re-design. Driveways and
parking were reconfigured to eliminate steep grades
and accommodate new construction. A central drop-
offcircle creates a focal point for new entrances to
each building, with large lobbies, including elevators.
The exterior shell has been replaced with stucco,
including design elements, decks and balconies, new
windows and exterior doors. Security systems were
installed.
The balance of the site contains 29 new townhouses in
9 buildings, comprised of 11 four-bedroom and 18
three-bedroom units. Approximately 9 townhomes
front on Concord Street, slightly above grade. Interior
streets, with sidewalks, provide access to the balance of
units at the uphill side. Features of the units include
large living spaces, attached one-car garages, 2-1/2
baths, full basements with indoor play and storage
areas, and. outdoor play space at each unit.
Unit exteriors feature gabled roofs, separate front and
rear entrances and brick and stucco exteriors and other
design elements to tie the townhomes to the renovated
apartments. In addition to the major park/play area in
the center of the development, smaller play areas and
guest parking are placed strategically throughout the
development. A large play space is located to the rear
of the two apartment buildings.
The rents for the redeveloped apartment units range
from $295 to $550 per month. Rents for the newly
constructed townhomes range from $600 to $685 per
month.
Development Team
The development team for the project included:
Architect DJR Architects
Contractor Bor-Son Construction
Property Manager Real Estate Equities
Attorney Winthrop and Weinstine
Sources of Funds
First Mortgage $430 108
National Equity Fund $4,739,601
City of St. Paul $1,265,688
Federal Home Loan Bank $525,000
Minnesota Housing Finance Agency $700,000
Family Housing Fund $700,000
Other $26,209
Total $8,360,397
u
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0
Lakeview Commons
Townhomes 15215 18th /venue North, Plymouth, MN
Site Location
Residents pay for their own heating and electricity.
Lakeview Commons Townhomes overlook Parkers
Lake just north of Highway 6 in Plymouth, Minnesota.
The 4.8 acre site is immediately adjacent to a 30+ acre
community park, is close to the popular Luce Line
Trail for biking and skiing, and is adjacent to single
family residential developments near County Road 6
and Niagara Lane.
Proiect Scope
Lakeview Commons consists of 64 units in the
following configuration:
16 two-bedroom units (1,040 square feet) renting at
$790 per month
48 three-bedroom units (1,320-1,350 square feet)
renting at $915 per month
The units are single-level townhomes in a two-story
building with stacked units. There are four buildings
with. 16 units in each building (8 ground floor units and
8 second floor units). Each building has underground
parking. Each unit includes a spacious living room,
dining room and a large kitchen with an island, all laid
out in the "Great Room" manner. The appliance
package includes refrigerator, range and range hood,
dishwasher and disposal as well as individual washer
and dryer in each unit. Each unit also includes a
separate furnace with central air conditioning.
Development Team
Architect BRW Elness
Contractor Frana and Sons, Inc.
Property Manager McKenna Management
Equity Investor Heartland Properties, Inc. and First
Chicago Bank
Attorney Winthrop and Weinstine
Sources of Funds
Fannie Mae First Mortgage $2,700,000
City of Plymouth CDBG Grant $60,950
General Partner Equity $32,408
General Partner Deferred Compensation $395,000
Limited Partner Equity $2,704,875
Other Projects
-_.~..~.~..~ n_a
IZiVertown Commons
\~/alnut Place Townhomes ~
Iv~edley Park Townhomes
Site Location
The site is located in the City of St. Paul, just north of
the Capitol, in the Frogtown Neighborhood, between
Rice Street and Marion Street. The property is located
in close proximity to a large neighborhood shopping
area.
Project Description
Capitol View Apartments, now Rivertown Commons,
was purchased by The Cornerstone Group in 2001.
The project has 139 units and currently provides
housing to many low-income households. In addition
to the low-income households in the building, there are
19 different languages spoken on-site. The project has
28 project-based Section 8 certificates that further
increase the affordability of the project.
The developers utilized tax-exempt bonds to facilitate
the acquisition and rehabilitation of Rivertown Com-
mons. The automatic allocation of the 4% tax credit
means that all 139 units can remain affordable. The
developers have also signed an extended use agree-
ment, which guarantees the affordability of the units
for 30 years. The developers will use the funds to
update the physical condition of the property and
maintain the resident services program.
Site Locations
Medley Park Townhomes site is located on
Mendelsohn Lane North near the intersection of
Highway 169 and Medicine Lake Road in Golden
Valley. The 3.2-acre site is well-located in a first ring
suburb of Minneapolis. The site is located in close
proximity to jobs, shopping and services and has easy
access to the downtown business district as well.
Walnut Place is located in Rockford, Minnesota. The
City of Rockford is located on the border of Hennepin
and Wright Counties, approximately 24 miles west of
the Minneapolis central business district. Rockford has
experienced considerable growth and expansion as a
result of the westward expansion of the Twin Cities
metropolitan area.
Project Descriptions
Medley Park and Walnut Place are 30-unit townhome
developments located in the Twin Cities Metropolitan
Area. The projects were built in 1981-82 and were
owned by the builder until August 1999 when The
Cornerstone Group purchased them. The projects both
have existing Section 8 HAP contracts that will be in
effect for another 11 years.
The Cornerstone Group Inc. utilized MHFA
Preservation Loan Programs and the Low Income
Housing Tax Credit to facilitate the purchase and
rehabilitation of the properties.
Medley Park consists of two-, three- and four-bedroom
units with rents ranging from $845 - $1,025 per month.
The units are two-story townhomes. There are 15
detached garages located in four freestanding
buildings.
Walnut Place consists of two- and three-bedroom
townhomes with rents ranging from $759 to $824 per
month. The units are two story townhomes.
I~evel.opment hect List
Project Name Location
' Lakeview Commons Plymouth, MN
Columbine Townhomes Eden Prairie,MN
Mi
k
nneton
a Mills Townhomes Minnetonka, IVIN
' Bluff Homes St. Paul, MN
Cathedral Hill Homes St. Paul, MN
Maple Pond Homes
Medley Park Townhomes
' Walnut Place Townhomes
' Rivertown Commons
Great Northern Lofts
TOTALS
Year # of Total Equity Type
Built Units Cost Investment of Project
1995 64 $5,700,000 $2,725,000 New Construction
1996 32 $3,150,000 $1,500,000 New Construction
1997 30 $3,656,248 $1,319,175 New Construction
1998 73 $8,201,550 $4,541,650 New/Rehab
1998 60 $7,580,000 $4,168,000 Historic Restoration
Maplewood, MN 1998 168 $9,148,897 $2,667,746 Acquisition/Rehab
Golden Valley, MN 1999 30 $3,350,000 $1,065,715 Acquisition/Rehab
Rockford, MN 1999 30 $3,300,000 $1,091,406 Acquisition/Rehab
St. Paul, MN 2001 140 $8,644,433 $1,228,450 Acquisition/Rehab
St. Paul, MN 2001 52 $24,000,000 $2,400,000 Historic Restoration
679 $76,731,128 $22,707,142
0
Vevelopment hro
~ ect List Colleen
Ca
e
;, , s - ~~.X .
r
__
~.~}t.~~
' # of Total Equity Type of Current
Project Name Location Year Units Cost Investment Project Role Interest
' Summit Park Apartments
Seven Spruce Aparhnents Burnsville 1985
Minneapolis 1986 336
7 $17,000,000 $1,500,000
$452
973 $108
000 New Construction Developer None
, , Rehabilitation Developer None
Homewood Apartments Minneapolis 1986 36 $1,156,226 $95,000 Rehabilitation Developer None
Matthews Park Minneapolis 1986 24 $941,861 $0 Rehabilitation Developer None
' Sherburne Ave.Apartments St. Paul 1987 8 $595,320 $164,453 Rehabilitation Developer None
Carroll Avenue Townhomes St. Paul 1987 11 $961,752 $411,938 New Construction Developer None
Clinton Avenue Townhomes St. Paul 1987 18 $1,533,639 $644,000 New Construction Developer None
' Lincoht Townhomes
Phillips Place St. Paul 1987
Minneapolis 1987 18
23 $1,537,618
$1
708 $643,791 New Construction Developer None
,
,365 $355,992 New Construction Ueveloper None
West Bridge Townhomes St. Paul 1988 20 $952,000 $952,000 Rehabilitation Developer None
' Nicollet Island Homes
Paige Hall Apamnents Minneapolis 1988
Minneapolis 1988 22
87 $1,962,000
$3
179
000 $713,000
$850
000 Historic Rehabilitati
R
h
bili
i on Developer None
M ,
, , e
a
tat
on Developer None
ontana Ave. Townhomes St. Paul 1989 13 $1,125,038 $430,000 New Construction Developer None
Fuller Homes St. Paul 1989 9 $728,050 $244,000 New Construction Developer None
Goodrich Cooperative St. Paul 1989 19 $2,443,000 $1,110,230 New Construction Developer None
Gaslight Terrace Minneapolis 1989 5 $269,500 $0 Rehabilitation Developer None
Riverview Terrace St. Paul 1989 13 $623,000 $0 Rehabilitation Developer None
' Birmingham Woods
Portland Place St. Paul 1989
Minneapolis 1990 24
18 $819,204
$1
430
478 $0
$361 Rehabilitation Developer None
,
, ,183 Rehabilitation Developer None
Port St. Albans St. Paul 1990 10 $391,000 $0 Acquisition Developer None
Flandrau Court St. Paul 1990 l8 $1,161,977 $136,846 Rehabilitation Developer None
The Gardens St. Paul 1990 108 $2,933,601 $475,228 Rehabilitation Developer None
Cecil Newman Plaza Minneapolis 1991 64 $1,340,000 $0 Rehabilitation Developer None
Selby Commons St. Paul 1991 33 $5,159,340 $2,063,074 Rehabilitation Developer None
Elliott Avenue Coop. Minneapolis 1991 15 $1,885,956 $910,331 New Const./Rehab Developer None
' Perspectives East St. Louis Park 1991 24 $750,000 $0 Ac uisition
q
Developer
None
Frogtown Family Lofts St. Paul 1992 36 $3,334,731 $1,563,402 Historic Rehab Developer None
Calibre Ridge Townhomes Roseville 1992 49 $4,253,038 $1,694,102 New Construction Developer None
' Tilsner Artist Coop. St. Paul 1993 68 $7,011,906 $3,832,759 Historic Rehab Developer None
Eden Park Apartments Brooklyn Park1994 324 $15,250,000 $4,550,000 Rehabilitation Consultant None
Lowettown Lofts Coop. St. Paul 1994 29 $1,696,000 $0 Ac uisition
q
Consultant
None
' Lakeview Commons Plymouth 1994 64 $5,543,207 $2,740,014 New Construction Developer Owner
South Court Apts. Nevada, Iowa 1995 68 $2,873,757 $1,269,319 New Construction Consultant None
Columbine Townhomes Eden Prairie 1996 32 $3,297,580 $1,47],660 New Construction Developer Owner
Minnetonka Mills THs Minnetonka 1997 30 $3,656,248 $1,319,175 New Construction Developer Owner
' Bluff Homes St. Paul 1997 73 $8,201,550 $4,541,550 New Const/Rehab Developer Owner
Cathedral Hill Homes St. Paul 1998 60 $7,580,000 $4,168,000 Historic Rehab Developer Owner
Maple Pond Homes Maplewood 1998 168 $9,148,897 $2,667,746 Acquisition/Rehab Developer Owner
' Medley Park Townhomes Golden Ualleyl999 30 $3,350,000 $1,065,715 Acquisition/Rehab Developer Owner
Walnut Place Townhomes Rockford 1999 30 $3,300,000 $1,091,406 Acquisition/Rehab Developer Owner
Rivertown Commons St. Paul 2001 140 $8,644,433 $1,228,450 Acquisition/Rehab Developer O wner
' Great Northern Lofts St. Paul 2001 52 $24,000,000 $22,400,000 Historic Restoration Developer Owner
Totals 2,236 $164,182,245 $47,772,364
1
12eferences
k': )?+o <°i-:~ vt-.:4 ~ is [cp'r? _'.~'~'t.:'s:.C= s: ~r-_ e..~ d^i~ _ Tom.,.^4"^1 .s. ,AF,,S?+e -rt- ~.4:t..'~~: s~-.:._l^~s: ~ .t``.: ~:::_.
' The Cornerstone Group is proud of the relationships we've built and maintained with the
communities we have served. We encourage you to contact any and all references.
' Mayors/Commissioners Staff
Mayor Karen Anderson Mr. Ronald Rankin
' City of Minnetonka City of Minnetonka
14600 Minnetonka Blvd. 14600 Minnetonka Blvd.
' Minnetonka, MN 55435 Minnetonka, MN 55435
(952)939-8200 (952)939-8282
' Mayor Jean Harris Mr. David Lindahl
City of Eden Prairie City of Eden Prairie
8080 Mitchell Rd. 8080 Mitchell Road
' Eden Prairie, MN 55344 Eden Prairie, MN 55344
(952) 949-8300 (952) 949-8484
' Commissioner Kit Hadley Mr. Robert Odman
Minnesota Housing Finance Agency Minnesota Housing Finance Agency
400 Sibley Street 400 Sibley Street
St. Paul, MN 55101 St. Paul, MN 55101
(651) 296-7608 (651) 296-9821
' Brian Sweeney
Director of Planning & Econ. Dev.
' City of St. Paul
25 W. Fourth Street
St. Paul, MN 55102
' (651) 266-6628
Ms. Melinda Coleman
' City of Maplewood
1830 E. County Road B
Maplewood, MN 55109
' (651) 770-4560