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INTEROFFICE MEMORANDUM
TO: SCO'IT CLARK:
FROM: BRAD SCHAFER
SUBJECT: HUSEr PARK PHASE I DEVELOPMENT
DATE: 5/28/2008
CC: MIKE BJERKESETT
We intend to develop, in conjunction with National Handicap Housing Institute (NHI-II), a
two phasc 79-unit senior rcntal property on Outlot B, Huset Park. This is the 1.4 acre parcel
located next to the round-a-bout in Phase 1. Phase I will be a 50-unit senior rental building
to be built and operating by NIllll. Phase II will be a 29-unit senior rental building built and
owned by Schafer Richardson and will be operated and managed by NI-IH1. It is likely tl,at
the timeline for the construction of the two phases will be very close togethcr if not
sltllultaneous.
The two phases will have a velY similar appearance and will look to the casual obsclver
to be one building. Parking will consist of a 43-stall surfacc parking lot and 29 underground
garage stalls. I will let Mike Bjerkesett of NHI-II describe the exterior look and ftnishes as
NtII-II will take the design lead on this project. I will also ask Mil<e to describe Phase 1's
interior features and alnenities.
The Phase II building will feature 29 one and two bedroom units along with 29
underground parking stalls. '1'he units will average approximately 820 square feet. The ftrst
floor will be highlighted by a large community gatllering spacc that will include a ftreplace
and small kitchen.
Phase II will likely be financed using 4% tax credit housing bonds as Phasc II's projected
"market rate" rents will likely meet the 4% Credit's affordability standards.
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RESUME
THE NATIONAL HANDICAP HOUSING INSTITUTE
The National Handicap Housing Institute (NHHI) was incorporated in 1975 as a
tax-exempt charitable organization providing services related to the development of
barrier free housing for physically disabled young adults and seniors. NHHI has
developed, co-developed and consulted on the development of 1,703 units of barrier free
housing for low income mobility impaired young adults and for Seniors. In addition, NHHI
has provided design related services and/or marketing consultation toward the successful
development of other units.
NHHI owns and manages eleven Section 202/Section 811 barrier free apartment
buildings in Minnesota which are fully occupied with substantial waiting lists and has had
ownership interests in two others.
The Institute has conducted research on barrier free housing design and developed
architectural and product specification standards that are functional and affordable. In
this regard, model kitchens and bathrooms have been built to test accessibility by
disabled people and virtually all brands and models of appliances and building hardware
typically used in multi-family housing construction and specifications have been studied
for their use by disabled persons. NHHI has also surveyed the housing needs and
preferences of handicapped people as well as locational preferences to determine what
housing features are needed to overcome problems resulting from specific disabilities.
The Institute provides information and referral on the availability of barrier free housing in
the Minneapolis/St. Paul, Minnesota area to a major degree and to out-state Minnesota to
a lesser degree. Information on various housing assistance programs which
handicapped people may be eligible for, as well as design and product information is aiso
provided.
The Institute has developed the design expertise necessary to assist architects, builders
and owners with many of their problems in creating new buildings and adapting and
retrofitting older structures to be accessible through interpreting the pertinent codes and
making recommendations that meet and, hopefully, exceed them functionally and
aesthetically at minimal cost.
The Institute has a working knowledge of ADA and the requirements of 503 and 504 of
the Rehabilitation Act of 1973 and can assist government and industry in meeting the
affirmative action and accessibility requirements demanded by this important federal law.
NHHI has shown exemplary capabilities in providing imaginative design solutions which
overcome the problem of architectural barriers for the handicapped.
1
The Institute has surveyed many existing rental units and many public buildings to
determine the degree of their accessibility to handicapped individuals.
This information is circulated to interested individuals through our information and referral
services, and staff are available to survey new public and private buildings and homes as
they become available to the public and can make accessibility recommendations where
necessary in this regard.
The Institute has accumulated information on most all organizations (nationwide),
agencies and individuals actively engaged in serving the housing needs of disabled
persons, as well as other related service needs. Through the use of public service
announcements, organizational newsletters, and general exposure of our products and
services, NHHI has built a reputation as experts in the barrier free, multi-family housing
field. Consequently, the Institute has direct access to thousands of mobility impaired
people who need specialized housing design. These resources continue to be used by
housing management firms to successfully market barrier free apartment units.
NHHI also develops and helps implement special management programs to help building
owners and managers to ensure the availability of independent living services for their
residents.
NHHI has served on advisory boards for Federal, State and Local government concerned
and charged with providing services to the handicapped community, and the Institute is
regularly called upon by government to give testimony and advice on issues related to
handicap design and other services.
Board members and staff of NHHI are present or former members of various
organizations and groups that serve the handicapped community. Some of these groups
are: The Minnesota State Council for the Handicapped, the Metropolitan Council Advisory
Task Force on Transportation, the Minnesota Affirmative Action Association, The
Minnesota Rehabilitation Association, the National Spinal Cord Injury Foundation, The
City of Minneapolis' Human Services Task Force, Hennepin County CETA Advisory
Committee, the DVR Ombudsman Project, the National Architectural and Transportation
Barriers Compliance Board, the National Center for a Barrier Free Environment and the
League of Disabled Voters. Staff of NHHI includes severely handicapped individuals who
work regularly in design, housing development, and service provisions for disabled
individuals nationwide.
Specifically, NHHI's technical design staff responds to all design-related inquires for
assistance working with public bodies, private industry, organizations and individuals,
providing Code interpretation, facilities surveys, and formal design recommendations for
2
Accessibility to the handicapped within single-family homes, public buildings and private
facilities, reviews plans and blueprints for modifications of new construction and
renovation to determine Code compliance and functional usability, disseminates
information on hardware, equipment and appliances used in modifications of existing
facilities, or in new construction to ensure that specified products fulfill the functional use
requirements of handicapped individuals.
NHHI has programmed and planned several 503/504 Awareness Compliance and
Technical Assistance Projects for business and public bodies.
NHHI has published two important publications: SURVEY OF HANDICAPPED
INDIVIDUAL'S HOUSING PREFERENCES - a study aimed at incorporating adaptability
and flexibility in barrier free housing design; and
PRODUCT INVENTORY OF HARDWARE, EQUIPMENT AND APPLIANCES FOR
BARRIER FREE DESIGN - which is a catalog providing architects, developers and others
with the information needed to better select home appliances and equipment for the
handicapped. These publications have been circulated to organizations and individuals in
all 50 states and several foreign countries.
Further, NHHI developed in cooperation with the architectural firm, Hamel, Green &
Abrahamson; A Technical Manual, "Barrier Removal for Physically Handicapped
Civilian Employees" for the U.S. Army Corps of Engineers, Huntsville, Alabama.
DEVELOPED.OWN AND MANAGE
NHHI/ASI Bloomington Senior, 50 Units
Bloomington Barrier Free Housing 24 Units
St. Paul Barrier Free Housing 36 Units
Robbinsdale Barrier Free Housing 25 Units
Champlin Barrier Free Housing 24 Units
Mankato Barrier Free Housing 41 Units
Hopkins Barrier Free Housing 24 Units
New Brighton Barrier Free 25 Units
NHHI-Macomb, Inc. 100 Units
NHHI/ASI Capitola, Inc. 25 Units
NHHIIASI Davis, Inc. 21 Units
NHHIIASI Brooklyn Park, Inc. 23 Units
NHHI/ASI Bloomington, Inc., 21 Units
Mounds View Supportive Housing, Inc.
3
CONTRACT DEVELOPMENT
Developed/Own and Manage The Meadows Apartments, a 50 unit building
designed for occupancy by low income Seniors in Bloomington, Minnesota.
Secured construction financing from the U.S. Department of HUD in excess of
$5,500,000. Also secured $500,000 in Hennepin County HOME funds. Secured
land write-down funds of approximately $650,000 from the City of Bloomington.
Developed NHHI Brooklyn Park, Inc., a 23-unit barrier free apartment building for low-
income persons with physical disabilities in Brooklyn Park, Minnesota. Secured
construction funds from U.S. Department of HUD, the Minnesota Housing Finance
Agency, Hennepin County HOME funds and Federal Home Loan Bank funds totaling
$1,742,800. Obtained local approvals including re-zoning and conditional use permits.
Selected and assisted architect in designing the overall development and obtained
contract bids from local contractors. Observed construction and supervised property
management staff in marketing and rent-up. Continue to supervise property
management.
Developed NHHIIASI Mounds View, Inc, a 20-unit barrier free apartment building for
low -income persons with physical disabilities in Mounds View, Minnesota. Helped
secure funds as co-applicant with ASI totaling $1,822,200 from the U.S. Department of
HUD, the Federal Home Loan Bank and the Minnesota Housing Finance Agency.
Obtained local approvals including re-zoning and building code variances necessary for
the disabled residents. Observed construction and supervised property management
staff in marketing and rent-up. Continue to supervise property management.
Developed NHHI/ASI Bloomington, Inc., a 21 unit barrier free apartment building for
low-income persons with physical disabilities in Bloomington, Minnesota. Secured
$1,764,200 in financing from the U.S. Department of HUD, the City of Bloomington and
Hennepin County HOME funds. Obtained re-zoning and determined the presence of
and supervised the clean-up of diesel range organics present from underground
storage tanks. Selected and assisted the architect in designing the overall development
and obtained contract bids from local contractors. Observed construction and
supervised property management staff in marketing and rent-up. Continue to
supervised property management.
Development Consultant to Accessible Space Incorporated for a 15 unit barrier free
apartment building for low-income persons with physical disabilities in Rochester
Minnesota. Helped secure $1,750,000 from the U.S. Department of HUD, the Federal
Home Loan Bank and the Minnesota Housing Finance Agency. Obtained re-zoning
from the City. Selected and assisted the architect in designing the overall development
and obtained contract bids from local contractors. Observed construction.
Developed ASI Shakopee, Inc., a 23 unit apartment building for low-income persons
4
with physical disabilities in Shakopee, Minnesota. Helped secure $1,725,200 from the
U. S. Department of HUD, the Federal Home Loan Bank sufficient to construct the
building. Obtained local approvals for re-zoning and conditional use permits.
Develop NHHIIASI Senior Bloomington, Inc., a 50 unit apartment building for low-
income seniors in Bloomington, Minnesota. Co-applicant in securing $5,500,000 from
the U.S. Department of HUD for construction and rent subsidies for five years.
Development Consultant to ASI Austin, Texas, Inc. in Austin, Texas for a 24 unit barrier
free apartment building. $1,698,500.
Development Consultant to San Antonio Supportive Housing, Inc. in Live Oak, Texas for
a 25 unit barrier free apartment building. $1,640,500.
Development Consultant to Baytown Supportive Housing, Inc. in Baytown, Texas for a 25
unit barrier free apartment building. $1,476,100.
Development Consultant to ASI Helena, Inc., in Helena, Montana for a 25 unit barrier free
apartment building. $1,538,300.
Development Consultant to Memphis Supportive Housing, Inc. in Memphis, Tennessee
for a 24 unit barrier free apartment building. $1,387,170.00
Development Consultant to Hillcrest Apartments in Stillwater, Minnesota for a 24 unit
barrier free apartment building for physically disabled young adults. $1,583,600.00
Development Consultant to ASI-Carson City, Inc. in Carson City, Nevada for a 24 unit
barrier free apartments building.
Development Consultant to ASI-Great Falls, Inc., in Great Falls, Montana for a 24 unit
barrier free apartment building.
Development Consultant to ASI-Willmar, Inc., in Willmar, Minnesota for a 22 unit barrier
free apartment building.
Development Consultant to ASI-Duluth II, Inc., in Duluth, Minnesota for a 25 unit barrier
free apartment building.
Development Consultant to ASI-Billings, Inc., in Billings, Montana for a 25 unit barrier free
apartment building.
Development Consultant to ASI-Las Vegas II, Inc., in Las Vegas, Nevada for a 25 unit
barrier free apartment building.
Development Consultant to ASI-Marshall, Inc., in Marshall, Minnesota for a 25 unit barrier
5
free apartment building.
Development Consultant to ASI-Minot, Inc., in Minot, North Dakota for a 25 unit barrier
free apartment building.
Development Consultant to Prairie View Apartments in Austin, Minnesota, for a 24 unit
barrier free apartment building.
Development Consultant to William Raggio Plaza in Reno, Nevada for a 21 unit barrier
free apartment building.
Development Consultant for ASI-Spokane, Inc., in Spokane, Washington for a 21 unit
barrier free apartment building.
Development Consultant to West Apartments, for 24 units in Burnsville, Minnesota.
Development Consultant to B.C. of Rochester, Inc. for a 6 unit group home in Rochester,
Minnesota.
Development Consultant to Quarry Heights Apartments in St. Cloud, Minnesota for a 24
unit apartment building.
Development Consultant to Carole Haynes Apartments for a 24 unit apartment in Las
Vegas, Nevada.
Development Consultant to Eagle Watch Estates in Missoula, Montana for a 24 unit
barrier free apartment building.
Development Consultant to Dewey Apartments for a 18 unit apartment building in
Jamestown, North Dakota.
Development Consultant to Superior View Apartments for a 24 unit apartment building in
Duluth, Minnesota. .
Development Consultant to Moses Residence for an eight unit group home in Grand
Rapids, Minnesota.
Development Consultant to Northern Lights Apartments for a 25 unit barrier free
apartment building in Brainerd, Minnesota.
Development Consultant to Oakridge Apartments for a 26 unit barrier free apartment
building in Rochester, Minnesota.
Development Consultant to the Oakridge Apartments for a 28 unit barrier free apartment
in Rochester, Minnesota.
6
Development Consultant to the Cooperage Apartments for a 14 unit apartment in Red
Wing, Minnesota.
Development Consultant to Winona Apartments for a 14 unit apartment building in
Winona, Minnesota.
Development Consultant to Winston Court for a 18 unit barrier free apartment building in
Hibbing, Minnesota.
Development Consultant to Newbrige Apartments for a 41 unit apartment building in
Rochester, Minnesota.
Co-Develop Bossen Terrace Apartments for a 66 unit townhomes in Minneapolis,
Minnesota.
Co-Develop Near North Village, a 154 unit apartment building in Springfield, Illinois.
Co-Develop Seward Square Apartments, an 81 unit apartment building in Minneapolis,
Minnesota.
Co-Develop Lewis Park Apartments, a 103 unit apartment building in St. Paul, Minnesota.
Co-Develop 2100 Bloomington Court, 90 unit apartment building in Minneapolis,
Minnesota.
7
DESIGN CONSULTING-CLIENT LIST
PARTIAL LISTING
GOVERNMENT FACILITIES
City of Duluth
City of Brooklyn Center
U. S. Army Corps of Engineers
U.S. Department of Defense
Sandstone HRA
Minneapolis HRA
Sl. Paul HRA
Bloomington HRA
Minneapoiis Armory
Stillwater Prison
State Capitol Cafeteria
City of Sl. Paul Detoxification Center
Veteran Administration Hospital
Moorhead Schools
Center for Education for
Non-Traditional Students
Red Wing Minnesota ARC
Fond Du Lac Indian Reservation
Kasson, Minnesota
Alton, Minnesota
Preston, Minnesota
Hennepin County
City of Fridley
City of Coon Rapids
Dade County HUD, Miami, Fla.
Worthington, Minnesota
Washington County
Rosemount, Minnesota
Moundsview Schools
Inver Grove Schools
CHURCHES
Luther Seminary
Sl. Lawrence Church
Chester Park Church
Sl. Mary's Greek Orthodox
Como Park Church
Gloria Deli Church
Colonial Park Church
Columbia Heights United Methodist Church
PRIVATE CORPORATIONS
Pillsbury
Unisys
Sabathani Building
General Mills
Playwrights Lab - Historical Society
Fluidine
Texas Terrace Nursing Home
Group Home - Wellsprings
Honeywell
8
MEDICAL FACILITIES
Waconia Nursing Home
Sister Kenny Institute
Midway Hospital
Angles Nursing Home
Mercy Medical Center
Mounds Park Hospitai
Courage Center
U of M Hospital
MISCELLANEOUS
Radisson Hotels
Hyatt Hotels
State Fair Grounds
Anoka County Fair Grounds
Mower County Fair Grounds
Centro Cultural Chicano
MESA
Midwest Challenge
Girl Scout Council
Lewis Park Apartments
Seward Square Apartments
2100 Bloomington Apartments
Bossen Terrace Apartments
Ataxia Foundation Apartments
Calhoun Beach Club
Grasslands Apartments
Colorado Housing Finance Agency
Near North Village Apartments
Barrier Free Living, Inc.
Petrie Development Corp.
Realty Services Companies
Pembco, Inc.
Chafoulias Companies, Inc.
Hamel, Green & Abrahamson
Design Through Research, Inc.
Miller, Hanson, Westerbeck, Berger, Inc.
Accessible Space Apartments
9
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COLUMBIA HEIGHT SENIORS HOUSING PROJECT
PROPOSED WORKOUT PLAN AND TAX ABATEMENT REQUEST
Summary: New Perspective Senior Living (NPSL) is proposing a workout plan that
requires a tax abatement program to revive the development of the Columbia Heights
seniors housing project located on the east side of Hart Boulevard, 170 feet north of 37th
Avenue NE, Columbia Heights, Minnesota 55125 with legal description as Lot 1, Block 1,
Hart Lake Addition to Anoka County.
Company Overview: NPSL is a developer, owner, and operator of seniors housing in the
Midwest. NPSL is a mission driven organization committed to helping seniors preserve
their independence as long as possible and age with dignity. We have 9 communities
located in Minnesota, Wisconsin, Iowa and Illinois. We serve the needs of seniors across
the congregate, assisting living and memory care/Alzheimer's spectrum. The company
was founded in 1998 and has successfully financed, developed or acquired seniors
housing communities totaling over $60 million in value. Our current portfolio is
generating over $15M in revenue annually. A more detail summary of the companies
experience can be found at the end of this proposal.
THE WORKOUT PLAN
Current status: the development of 52 units of seniors housing lead by Comforts of
Home has ceased to move forward.
. Financing has fallen through and construction has been halted for over 6
months. The site currently has improvements on it totaling $1 .2M consisting of a
parking garage, elevator shaft and some site work.
. At this point it is our opinion after conducting due diligence over the last 2
months that the existing principals involved in the transaction are unable to
move things forward on their own.
. It is also our opinion that the costs associated with the deal being delayed, the
underground structure and site work all significantly impair any developer's
ability to successfully bring this project to completion. In total we believe $1.1 M
in savings need to be found to ensure the project is completed and is in a strong
financial position to deliver on its promise to the future residents.
Proposed project: we propose the acquisition of the land/improvements and the
development of a 76 bed seniors housing project consisting of 44 assisting living and 32
memory care beds. This can be accomplished within the confines of the existing plans
that have been approved but it may also involve the 151 floor footprint being slightly
larger. We have validated the market demand with an expert 3rd party research firm.
NPSL believes in serving the needs of all seniors in the community. As a result our plan
includes the allocation of 10-20% of the beds of this project be set aside for elderly
waiver Medicaid participants.
The workout plan: We are in active discussions (either directly or indirectly) with all
parties that have a stake in the deal and have indications on the terms they are willing
to accept for the sake of moving things forward.
. Indication from the bank leads us to believe they will accept repayment of their
principle in full and forgiveness of back due interest expense which results in
$190K of savings.
. Given his obligations we believe Brian Winges of Comforts of Home will be willing
to give up his equity interest in project for relief from his financial obligations. This
results in $90K in savings.
. We have indications from VSI Construction and its subcontractors that they are
willing to accept 75c on the dollar for the existing $1.2m of improvements. This
results in $288K in savings.
. NPSL acting as the developer will forego its typical 3K per unit developer lease
up fee. This results in $228K in savings.
Summary Project Cost and Savings Required
Gross Project Cost
Land Cost Concessions
Building Cost Concessions
Developer Fee Concessions
$11,401,049
($280,000) Bank contributes 190K, Brian Winges 90K
($287,750) VSI and subs take 75c on the dollar
($228,000) Developer foregoes lease up fee
Project Cost
Target Project Cost
Addition savings required
$10,605,299
$10,283,809
($321,490) Funded through tax abatement
Total Savings
($1,117,240)
. This leaves us with a $320K shortfall. We are looking to the city to help us bridge
this gap with a tax abatement program. The table below illustrates the
estimated tax income to the city. We are proposing an 80/20% developer/city
split which results in the city earning roughly the same amount it has been
historically. An 8-] 0 year tax abatement period would deliver the necessary
savings. The targeted project is cost drives a 12% return on equity for our
investors and is the minimum return we can offer to successfully raise the funds.
See table below and on following page.
Tax Forecast
Assessed Value
Tax Rate
Total Tax
City % Share
City Tax
Low
$6.270.875
1.40%
$87,792
40%
$35,117
Proposed Developer/City Splits
Developer 80% $28,094
City 20% $7,023
Prior Taxes on Movie Theatre
Total $25,921
City Share 40% $10,368
High
$6,270,875
2.00%
$125,418
40%
$50,167
$40,134
$10,033
$25,921
$10,368
Lighthouse at Columbia Heights ~ Deal Analysis
Financial Information 20011-09 2009.10 201lJ.ll 2011.12 2012.13
Revenue construction 1,605,633 3,234,655 3,745,553 3,857,920
Expenses year (1,387,001) (2,193,142) (2,491,876) (2,566,633)
Net Operating Income 218,632 1,041,513 1,253,677 1,291,287
Cash Flow (389,916) 406,965 482,918 519,355
Cost 10,605,299 10,605,299 10,605,299 10,605,299
Return on Cost NA 4% 5% 5%
Contribution and Return Analvsis
Year 5 ProiP.ct Ra-f1nance
Cap Rate 10.0%.
Debt 75% 7,953,974 Value 12,912,871
Equity 25% 2,651,325 New Debt (80%) 10,330,296
Total 100%, 10,605,299 Debt Repay 7,818,904
Org Equity Payout 2,651,325
Excess Proceeds i139933
Investment vears 1 2 3 4 5
Deal Economics 2008.09 2009.10 2010-11 2011.12 2012.13
NOt 218,632 1,041,513 1,253,677 1,291,287
Debt Service 6.50% ( 517,008) (517,008) (652,079) (652,079)
Debt Service Coverage 0.42x 2.01x 1.92x 1.98x
Debt Guarantees (79,540) (79,540) (79,540) (79,540)
Capex (12,000) (38,000) (39,140) (40,314)
Proceeds from re-finance . . . (139,933)
TOTAL CASH AVAILABLE TO DISTRIBUTE . . 406,955 482,918 379,422
Cummualitive $ distribution 1,269,305
Annual equity return based 10%
Required return $'s 1,590,795
Required return % 12%
Shortfall (321,490)
Action steps & Timing
1. Secure tax abatement commitment trom the city - ASAP on the commitment,
expect 30 days to finalize
2. Finalize purchase & settlement agreements, assignment of all existing diligence
items and agreements, obtain any additional city development approvals required
- 20 to 30 days, this will occur in tandem with step # 1
3. Firm up debt and equity indications - this will occur in tandem with steps # 1 and 2,
preliminary indication letters attached to written proposal
4. Finalize due diligence, private placement documents, raise debt/equity, close on
transaction - 45 to 90 days after city deal is finalized
Conclusion: To often developers stretch to make deals happen or overload upfront
costs in the pursuit of profits today vs. investing for the future and that is clearly evident
in what has transpired with this project. NPSL takes the opposite approach. We are in
this business for the long haul and take our obligation to the seniors very seriously. We
take great care and use caution with putting projects together to ensure that we can
deliver on our cost estimates and operating budget. This ensures both short term and
long term financial and operational success. We believe our plan and development
will be successful and the end result will be vibrant community that allows seniors to
preserve their independence and age with dignity
New Perspective Senior Living project history
NPSL has a proven track record ot sourcing, developing, financing, and managing
senior housing, as demonstrated by the following accomplishments:
. 1998 - Business inception. Consulting for development of senior housing was
done backed by Todd Novaczyk's extensive development and management
experience in the hospitality industry.
. 2000 - Developed Windmill Ponds in Alexandria, MN. 65 units of independent
living facilities. The facility was built for a non-profit group.
2003 - Developed Vriendshap Village in Pella, IA for a local group of
businessmen. 92 units of independent and assisted living facilities. NPSL affiliates
maintain an equity investment in the deal.
2004 - Developed 95 units of independent and assisted living facilities for non-
profit group in Newton, IA.
. 2005 - Developed the Lighthouse at Waconia, MN. 79 units of assisted living and
Alzheimer's facilities. Initially was run by a 3rd party manager and NPSL had
management oversight responsibilities. NPSL took over property management
mid 2006.
2006 - Acquired New Perspective. 105 beds for Alzheimer's residents on 4
campuses located in Minnesota and Wisconsin. NPSL manages these properties.
2006 - Developed the Lighthouse at Silivs, IL. 136 units of independent and
assisted living and Alzheimer's facilities. Property managed by a 3rd party. NPSL
has management oversight responsibility.
2007 - Acquired Hoirzons Assisted Living properties near Duluth, MN. 59 units of
assisted living and memory care. NPSL manages these properties. Construction
on a 30 unit expansion will start later this month.
Contact Information:
Ryan Novaczyk
Chief Financial Officer
New Perspective Senior Living
4920 Lincoln Drive
Edina, MN 55436
612-840-3924
rnovaczyk@npseniorlivina.com
rnJ
BANK
M&I Marshall & IIsley Banlt
6625 Lyndale Avenue South
Richfield, MN 55423-7.:373
612 798.3400
mibank.com
May 21, 2008
Mr. Ryan Novaczyk
New Perspectives Senior Living
RE: Senior Living Project in Columbia Heights
Dear Ryan,
As recently discussed, M&I Bank has had the chance to perform preliminary reviews on
your proposals and projections for acquiring land and constructing a 76 unit Assisted
Living / Memory Care facility on the site in Columbia Heights.
Based on our prior dealings with your organization we are happy to consider a financing
request approaching high seven figure credit commitment amounts to provide
construction and long term financing. Of course, any commitment the bank may extend
would be subject to fOl1nal credit cOlllinittee approval following a period of due diligence
and would require verification of reasonable levels of equity investment and adequate
collateral value.
As you pursue negotiations on the site please keep me infol1ned of progress. We have
been very pleased with our previous experiences with you in projects of similar size and
scope and greatly appreciate the opportunity to grow our relationship.
~inc,
. CQj
CIU'istopher FI)'1U1
Senior Vice President
M&I Marshall & Illsley Bank
--
-----------------------------~
-----'
-----------------------
May 21, 2008
,(!~\:~
~f(!j\>'
\-l~ Abens Financial Services, Inc.
, 4920 Lincoln Drive p: 952933-9650
Minneapolis, MN 55436 t: 800347-2611
r: 952 933-9680
e: afs@abells.com
w: www.abens.com
To Whom it May Concern,
Introduction: I founded Abens Financial Services in 1987. Abens Financial Services, Inc. is active
in the private equity, reai estate and financial markets. As a financial advisor to wealthy
families, Mr. Abens has been named one of the "best financial advisors" in the country by Worth
Magazine. Although Mr. Abens has been quoted In various financial publications and been a
guest expert on radio and teievision, he takes the most pride in client satisfaction and portfolio
performance.
I have been involved in the seniors housing sector raising private equity since 2006 and have
worked on severai successful transactions with Todd Novaczyk and Ryan Novaczyk of New
Perspective Senior Living. I have reviewed the Columbia Heights Seniors Housing project and
believe deal generates the required returns and has an appropriate risk profile necessary for the
successfully private placement of approximately $2.6M. This letter serves as an Indication of
interest on my part to be involved with this transaction. It is not a firm commitment to place
the above funds.
Th~
Arnold D. Abens, Jr.
President