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HomeMy WebLinkAboutRFP Scott County Response Rprt e e e Ie Ie ie Ie Ie Ie Ie e e e e e e e . e e e . e I- I- Ie Ie e l- Ie ie e e - - e e - e e - e - . . . e . . . . . . . . . . . '. . I. ,. . ,e i. . . . . i. i. '. i. I . . ,. i. i. i. I. '. '. . . . . . CDA Scott County Community Development Agency 323 South Naumkeag Street Shakopee, MN 55379-1652 Phone: 952.402.9022 Fax: 952.496.2852 SCOTT COUNTY June 30, 2008 Mr. Paul Snook, Economic Development Director Prior Lake City Hall 4646 Dakota Street SE Prior Lake, MN 55372 Subject: RFQIRFP Response to Prior Lake Downtown Redevelopment Dear Mr. Snook, The Scott County Community Development Agency (CDA) is pleased to respond to your request for proposals by submitting a proposed mixed-use development which includes Independent Senior Housing and Neighborhood Retail on the site set forth in your request. We have assembled a team of experienced organizations that have worked in the development of Senior Housing and Neighborhood Retail over the years and with whom we have had a strong working relationship. We are confident in our team's ability to work with the City of Prior Lake to achieve your goals and objectives for the site. The Scott County CDA has made it a high priority mission to develop, construct and operate Senior Housing in Scott County. We are truly pleased to submit this proposal for your consideration. Weare optimistic that our proposal will meet the goals and objectives of the City of Prior Lake. Our entire development team stands ready to respond to any questions or explain our proposal to address any issues that the City has during your review. Please direct all questions to Bill Jaffa at 952-402-9022 or Frank Dunbar at 763-377-7090. They will respond with the appropriate team member to address your inquiry. Again, thank you for your consideration. Sincerely, ~ William I. Jaffa Executive Director Scott County Community Development Agency Enclosures Cc: Dunbar Development Corporation - Frank Dunbar Great Lakes Management - Mike Pagh DeAnn Croatt Commissioner District I Ben Zweber Commissioner District II Marjorie Henderson Commissioner District III Patti Sotis Commissioner District IV Jane Victorey Commissioner District V An Equal Opportunity / Affirmative Action Employer . . . . . I. I. . I. '. I. I. I. . I. . I. . . . I. I. I. . . I. I. . . . . . I. . . . . . . . . . . City of Prior Lake, Minnesota Downtown Redevelopment Index Letter of Introduction Tab #1 - Development Plan Tab #2 - Market Report Letter Tab #3 - Design Tab #4 - Marketing and Management Plan Tab #5 - Proforma Tab #6 - Time Line Tab #7 - Resume: Scott County CDA Tab #8 - Resume: DDC Tab #9 - Resume: GLM Tab #10 - Resume: MHP Tab #11 - Development Team Members DEVELOPMENT PLAN . . '. . . . . . . . . . . . . . . . . . . . . . . . . . '. I. . . . . . '. i. I. . . I. I. . Development Plan Introduction Scott County Community Development Agency (CDA) is pleased to describe a development concept for consideration by the City of Prior Lake for the development of a portion of the parcel of land described in your request for proposal dated April, 2008. We propose a mixed-use development of independent senior housing and neighborhood retail. One of the strong missions of Scott County CDA is to provide independent senior housing within the communities of Scott County. We have been successful in developing, owning and operating senior housing in New Prague, Savage, Shakopee and other communities within Scott County. We have developed mixed-use developments in both Savage and Shakopee. Our concept for this site would continue our mission of providing senior housing and would hopefully align with the mission of the City of Prior Lake. Our concept for the neighborhood retail would be to provide a retail location that would be acceptable in the marketplace for neighborhood business owners to conduct their service-related businesses. A condition of us proceeding with this development would be that we secure either a master tenant or have a significant amount of the space pre-leased prior to commencement of the overall development. Development Plan The Development Plan would consist of 54 senior apartment units and 11,225 square foot of neighborhood service retail. The site plan attached (please refer to Tab #3) will give you a sense of our concept for the development. The unit breakdown is set forth below: . 18 - 1 Bedroom . 18 - 1 + Den . 18 - 2 Bedroom Land Acquisition Scott County CDA would work with the City of Prior Lake in the acquisition of any parcels that would need to be acquired and will work with the City to determine the proper land cost. Land cost is a critical component of economic viability for this development and at this time we are unable to determine exactly how that will come together. We are confident and optimistic that we can come to a land cost that will allow economic viability of our proposal. Market Housing - We have secured a third-party independent analysis from Maxfield Research, providing us comfort that a market truly exists for this development program in this location at this time. During our development process we will continue to interact with Maxfield Research to refine the market customer and provide that customer with the precise product necessary to meet the market demand. Please see Tab #2 Retail- We are ongoing in our market analysis for the retail space. We view this to be the most challenging market and we are optimistic that we can fmd the right tenants to occupy the space. As we have stated before, this component will be a contingent factor in allowing us to go forward in this development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Desien Our proposal for the southeast comer of Eagle Creek A venue and Main A venue combines exceptional senior residences with high quality commercial space in a mixed-use development. As a gateway building to the Prior Lake downtown district, the design places a plaza at the corner, connecting the apartment building entrance with retail storefronts and public parking behind the building. The plaza will become a hub of activity that supports downtown 'street life' with amenities such as benches, public gardens and a fountain. The introduction of a tall building form at the corner creates a back drop for the plaza and becomes an identifying gateway element. The architecture takes its cues from both the older and newer buildings in downtown Prior Lake and is in keeping with the design principals described in Downtown Building Design Guidelines. It continues the line of storefronts from the northeast to the corner and harmonizes with the newer downtown structures. As directed by the Design Guidelines, storefronts open onto Main A venue and anchor the Eagle Creek A venue facade. Public parking is behind the building and is reached by pedestrians from the plaza. By locating a pedestrian access point at the corner, active use of the plaza is increased and the idea of this as a place for the community to gather is reinforced. The common areas for the senior apartments are right at street level, along Eagle Creek Avenue, and include a community room with kitchen, an exercise room, a library and a wood shop. Residents have easy access to all that downtown living offers and will energize the downtown Prior Lake community. Each apartment has special design features that meet the unique needs of the residents, including extra wide apartment entry doors, handicapped adaptable kitchens and bathrooms and remote storage lockers for personal belongings. Every apartment also features individual heating, ventilation and air conditioning controls and all-electric, energy efficient appliances. Additional apartment amenities include private balconies and heated underground parking. As a strong gateway building and as a focal point of activity, this mixed-use development has the potential to increase the economic vitality and quality of life in the downtown community. City Process Once our proposal has been evaluated by the City we would want to meet with the City to clearly understand the City's entitlement process that would conform to our development. We are comfortable that our team will work closely with the City Staff to determine the process that needs to be undertaken to secure the necessary approvals to allow our mixed-use development to go forward. Should we be successful in the selection process, we have set forth the proposed time schedule to achieve this development. Please refer to Tab #6. Financine At the time of our selection we will bring on our financial advisor, Springsted, Inc., to develop, construct and suggest a financial model that will permit the financing of this development to proceed. We will need two components to the financing: one component will be for the housing which will allow us to use our tax exempt authority for bonding which has historically been . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . supported by the City and the County to achieve market level rents for the community. The second financing will have to be for the commercial which will need to have more of a conventional financial model developed to allow us to finance that component of the development. Tab #5 is a draft proforma for preliminary financing purposes evidencing a very preliminary feasibility of the development. Marketine and Manaeement Great Lakes Management Company, on behalf of Scott County CDA, has presented a concept of the Marketing and Management plan. Please refer to Tab #4. Suuulemental Information This proposal is submitted to give the City of Prior Lake an overall concept of our development plan. We have included a draft proforma and a suggested time table of activities. We are prepared to modify the proposal to assure that it comes into alignment with the goals and objectives of the City. The concept drawings submitted in this package depict our concept and do not suggest the actual development. We will be open to input from the community to clearly derme the final design proposal. There are a few developmental challenges we would like to bring to your attention. Land acquisition, potential relocation and acceptable neighborhood retail tenancy will be critical factors in developing the economic viability of this proposal. We are prepared to work closely with the City to achieve a financial structure that allows this concept to be implemented. We also want to confirm that the site has all environmental conditions resolved prior to our development proposal proceeding which is in all parties' best interest. We look forward to working with the City in bringing forward this exciting downtown mixed-use concept. MARKET REPORT LETTER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. M:-+'- I.. Id . \.' . L... ~.... .. June 18, 2008 Mr. William Jaffa Executive Director Scott County Community Development Agency 323 Naumkeag Street Shakopee,~ 55379 RE: Potential Demand for Adult, Independent Senior Housing in Prior Lake, Minnesota Dear Mr. Jaffa: As requested, Maxfield Research Inc. has completed a very preliminary assessment of the potential demand for market rate, adult, independent senior housing (rental) that would be located on a site in Prior Lake, Minnesota. As we understand, you are considering the potential development of adult/few services senior housing in the community. Our initial assessment indicates that the defined Prior Lake Market Area could support 59 units of adult/few services housing that would be targeted to meet the needs of independent, older adults and seniors. Because there is additional independent senior housing in many of the communities that surround Prior Lake, we have limited the draw area for this product, but have allowed that a higher proportion of seniors with moderate incomes may move to Prior Lake and seek out this type of housing. Weare not aware of any pending senior developments in Prior Lake at this time, although new senior housing has recently opened in the community (Shephard's Path). Prior Lake enjoys a strong reputation in Scott County as a highly desirable residential location. We believe that the community will continue to attract a wide variety ofresidents and that seniors currently living in Prior Lake will want to remain and that others in the surrounding area will choose Prior Lake as a residence to take advantage of conveniently located goods and services and the amenity provided by the Lake. We defined a Market Area for adult/few services senior housing in Prior Lake that includes the communities of Prior Lake, Savage, Spring Lake Township and Credit River Township. We estimate that this Market Area will account for approximately 60% of the potential draw for the proposed housing product. The remaining 40% of demand will come from outside of this area from senior households that consider Prior Lake to be a highly desirable community and are looking for the features and amenities that would be offered by the proposed development. We have projected that a higher proportion of target households would come from outside of the defined Market Area because of Prior Lake's current high quality reputation in the market and high level of desirability in the Twin Cities Metro Area. 615 151 Avenue NE, #400, Minneapolis, MN 55413 (612) 338-0012 (612) 904-7979 www.maxfieldresearch.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. William Jaffa Scott County CDA June 18, 2008 Page 2 The 40% of demand from outside of the Market Area includes prospective residents who have previous ties to the area or parents of adult children currently living in the draw area who would move there to be closer to their families. We also believe that Prior Lake has a regional appeal for seniors from other locales who would move to Prior Lake because of its current qualities and characteristics. As shown on Table 1, since 2000, the number of households in the Market Area has increased by just over 35%. Population increased by 35%. Both of these increases are significant and reflect growth rates for the past eight years that is substantially higher than that of the Twin Cities Metro Area. Over the next five years, from 2008 to 2013, strong growth is projected to continue with the overall population forecast to increase by 17% and overall households expected to also increase by 17%. A review of senior population and household growth trends reveals that adult households age 55 and over are projected to increase in the Prior Lake Market Area by 2,241 households over the next five years (2008 to 2013). This is a growth rate of 48.4%. Those age 65 and over are projected to increase by 979 households or 53.4%. Senior households age 75+ are projected to increase by 249 households or 44.1 %. The significant growth projected among households age 55 to 64 suggests that a portion of this group may want their aging parents to live in closer proximity to them, creating an additional segment of the potential demand for senior housing in Prior Lake. Table 1 presents this information. Table 2 presents information on the incomes of Market Area older adult and senior households. As shown, as of 2008, there were an estimated 3,646 households age 55 and over that are estimated to have annual household incomes of at least $35,000 and would be age and income- qualified for the proposed development. Another 313 households age 55 and over that own their own homes but currently earn between $25,000 and $35,000 would also be potential candidates for the proposed housing if they sold their homes and invested a portion of the proceeds toward funding the cost of alternative housing. Household homeownership rates from the 2000 Census were applied by age group. These proportions were 77% of householders age 75+, 90% of householders age 65 to 74 and 94% of householders age 55 to 64. These proportions are applied to the moderate income household base, those that earn between $25,000 and $35,000 per year. MAXFIELD RESEARCH INC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. William Jaffa Scott County CDA June 18, 2008 Page 3 TABLE 2 OLDER ADULT (55+) INCOME DISTRIBUTION PRIOR LAKE MARKET AREA 2008 & 2013 :!OOX 55-64 65-74 75+ Total 65+ No. Pet. No. Pet. No. Pet. No. Pet. Under $15,000 126 4.5 102 8.0 129 22.8 231 12.6 $15,000-$24,999 65 2.3 131 10.3 116 20.5 247 13.5 $25,000-$34,999 61 2.2 122 9.6 130 23.0 252 13.7 $35,000-$49,999 223 8.0 194 15.3 101 17.9 295 16.1 $50,000-$74,999 410 14.7 275 21.7 34 6.0 309 16.8 $75,000-$99,999 606 21.7 170 13.4 37 6.5 207 11.3 $100,000 or more 1,303 46.6 275 21.7 18 3.2 293 16.0 Total 2,794 100.0 1 ,269 100.0 565 100.0 1,834 100.0 $35,000+ 2,542 91.0 914 72.0 190 33.6 1,104 60.2 lMedlanInco~ $%,1~1 . $57,772 $27,884 $44.508 201J 55-64 65-74 75+ Total 65+ No. Pet. No. Pet. No. Pet. No. Pet. Under $15,000 151 3.7 144 7.2 140 17.2 284 10.1 $15,000-$24,999 83 2.0 137 6.9 157 19.3 294 10.5 $25,000-$34,999 96 2.4 167 8.4 155 19.0 322 11.4 $35,000-$49,999 194 4.8 334 16.7 156 19.2 490 17.4 $50,000-$74,999 530 13.1 425 21.3 99 12.2 524 18.6 $75,000-$99,999 722 17.8 255 12.8 48 5.9 303 10.8 $100,000 or more 2,280 56.2 537 26.9 59 7.2 596 21.2 Total 4,056 100.0 1,999 100.0 814 100.0 2,813 100.0 $40,000+ 3,662 90.3 1,441 72.1 311 38.1 1,751 62.3 Median Income I $108.724 $62,794 $32.096 I $50 787 ( hall~l' 200X-20 IJ 55-64 65-74 75+ Total 65+ No. Pet. No. Pet. No. Pet. No. Pet. Under $15,000 25 19.8 42 41.2 11 8.5 53 22.9 $15,000-$24,999 18 27.7 6 4.6 41 35.3 47 19.0 $25,000-$34,999 35 57.4 45 36.9 25 19.2 70 27.8 $35,000-$49,999 -29 -13.0 140 72.2 55 54.5 195 66.1 $50,000-$74,999 120 29.3 150 54.5 65 191.2 215 69.6 $75,000-$99,999 116 19.1 85 50.0 11 29.7 96 46.4 $100,000 or more 977 75.0 262 95.3 41 227.8 303 103.4 Total 1,262 45.2 730 57.5 249 44.1 979 53.4 $35,000+/$40,000+ 1,120 44.1 527 57.6 121 63.4 647 58.6 Median Income $12,603 13.1 $5,021 8.7 $4,212 15.1 $6,279 14.1 Sources: Claritas, Inc.; Maxfield Research Inc. MAXFIELD RESEARCH INC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. William Jaffa Scott County CDA June 18, 2008 Page 4 Our analysis identified two adult/few services rental developments in the Prior Lake Market Area. These developments are age-restricted and provide housing for fully, independent seniors (those that do not need or want services). Older adult and senior households earning at least $30,000 annually would qualify for the proposed development based on an income allocation of 40% of income toward housing. The average home price in Savage and Prior Lake as of2008 was $328,920. A more conservative average sale price for older homes, those 15 years and older, and excluding the highest priced sales is $258,800. A household with a home priced at the average sale price of $258,800 could obtain an additional roughly $800 per month that could be used toward housing costs. A household with an annual income of$15,000 who owns their home could afford senior housing by utilizing a portion of the proceeds from a home sale. Our demand analysis applies an estimated capture rate for each age cohort based on their projected propensity to move to alternative senior housing as well as our experience in this market with adult/few services senior rental developments. Historically, adult/few services developments, especially those that are affordable, have been well-received in the Twin Cities Metropolitan Area and have performed very well against other higher service levels (congregate, assisted living). Our demand analysis applied the following capture rates to each age cohort: 55 to 64 - 0.5% 65 to 74 -7.5% 75+ - 18.0% These capture rates were been developed by Maxfield Research Inc. and reflect our experience in Scott County and the Twin Cities market, the propensity of each age group to move to alternative housing and the general competitiveness of the market (i.e. available product choices) in the area in which the proposed development would be located. Our demand analysis results in total potential demand for 47 adult independent units as of2008 and increasing to 72 units by 2013. The analysis segments the demand between ownership independent senior housing without services and independent rental senior housing without services (40% ownership and 60% rental). We have subtracted all units that are age-restricted with no services (rental and ownership) within their respective categories in the demand calculation. MAXFIELD RESEARCH INC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mr. William Jaffa Scott County CDA June 18, 2008 Page 5 Table 3 presents our preliminary potential demand for age-restricted senior units in the Prior Lake Market Area. TABLE 3 PRELIMINARY MARKET RATE ADULTIFEW SERVICES HOUSING DEMAND PRIOR LAKE MARKET AREA 2008 & 2013 # of Households wi Incomes of $20,000 to $29,999' (times) Homeownership Rate (equals) Potential Market (Plus) # of Households wi Incomes of $30,000+' (equals)Total Potential Market Base (times) Potential Capture Rate (equals) Demand Potential Total Market Rate Demand Potential (times) % for housing wlservices & wlo services (equals) Demand potential (plus) Demand from Outside Market Area (40%) (equals) Total Demand Potential (minus) Existing Competitive and Pending Units2 (equals) Long-term Demand 200S 20 IJ A e of Householder O~ip x 40% 63 + 42 105 78 27 Adult Rental - x 60% 95 A e of Householder 55-64 65-74 75+ -- 107 185 179 94% 90% 77% -- 101 166 138 3,736 1,568 377 3,836 1,734 515 x 0.5% 7.5% 18.0% 19 130 93 242 Adult O~ip Rental x 40% x 60% 97 145 + 32 + 48 129 194 78 91 51 103 x 70% x 70% = 36 72 55-64 65-74 -- 63 127 x 94% 90% -- 59 114 + 2,573 ---Z!.l 2,632 1,089 75+ - 123 77% 95 255 350 x 0.5% 13 7.5% 82 158 18.0% 63 + 63 158 91 67 x 70% 19 x 70% - 47 1 2013 income-qualified figures adjusted for inflation ($34,999K or more + homeowners wi inc. of$22.5K - 34,999K) 2 Competitive existing and pending units include adult rental/ownership at 95% and 92% occup. (equilibrium). Source: Maxfield Research Inc. MAXFIELD RESEARCH INC. . . . . . . . . . . . I. . . . . . . . . . . . . . . . . '. . . . . . . . . . . . . . . Mr. William Jaffa Scott County CDA June 18, 2008 Page 6 Table 4 shows a suggested unit mix, sizes, and rents for an adult/few services development in Prior Lake, Minnesota. As shown on the table, we suggest that rents begin at roughly $850 per month for a one-bedroom unit and range to $1,450 per month for a two-bedroom plus den unit. We believe there is demand for an age-restricted independent building in the community. Township residents typically have larger residences with acreage and are more likely to prefer larger size units (i.e. two-bedroom and two-bedroom plus den units). We recommend that you offer a balanced mix of unit sizes to capture sufficient demand from both segments of the market. TABLE 4 PRELIMINARY SUGGESTED UNIT MIX/SIZES/RENTS SITE IN PRIOR LAKE June 2008 Unit Type lBR/lBA IBR+Den/l.5BA 2BR/2BA 2BR+Den/2BA Total Preliminary # of Units % of Total 14 28.0% 12 24.0% 16 32.0% 8 16.0% 50 100.0% Square Feet 725 875 950-1,050 1,220-1,250 Rent $850-$895 $975-$1,050 $1,150-$1,200 $1,350-$1,450 Rent! Sq. Ft. $1.17 -$1.23 $1.11-$1.20 $1.14-$1.21 $1.11-$1.16 Note: Rent includes water, sewer, and trash. Rents are quoted in 2008 dollars. Source: Maxfield Research Inc. If you have any questions or need additional information, please contact me. Sincerely, MAXFIELD RESEARCH INC. V/f(~ tOffL Mary C. Bujold President MAXFIELD RESEARCH INC. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . ..- ....s::: D.CI) D.- G)~ G) ::J . U U 0 . c cCl) 0 0 . u u . c c 0 0 I- I- . .. .. &U ftS . t t - - . w w . . . I. . i. . . . . . . I. . . I. . . . . . . I. . I. . . . . . Z . ( r "'::o! ~~ . ::1:... .... ~~ . :! . . . . I. . Ie e Ie Ie e Ie e I. '. I. :e I. I- . Ie e Ie ,. I. I. Ie I- . ie . Ie . I. ,. Ie . . ,. e . . . e - ..... .- CI) .e~ ~ a c o .- .. ca ~ - w ( I~ "'::I ?l... ....'.'.'.. :l:Z .. .t: :!~ i] . . . .. . . . '. . I. . '. . I. . . . I . I. . . . . . . . . . . . . . . . . . . . . . . . . en c ~ - a. .. o o - u.. Q) 0) ~ alUl C>S O)Ul .5~ i: aI Cl. co ~ c: c: Q) Q) 0 :g C> E CO CO E CI) L... - Q) CO Q) 0 0:: (!) 0:: () >- ~ ., @ -0 (I)~ > JI (I)..... -I CI) m ca .. ca e ( l~lQ .. l- !~ :t~ ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . en c ca - a. a. o o - LL. o 0. 0. ~ ~ co +:; c: c: Q) Q) 0 :Q C) .- E co en ..... co E Q) co - Q) 0 0:: (9 0:: () :>. ~ .., @ "0 Oif o. -.... LL. ... en a- I- LL. z (\-I~! , :!~ ~ . . en eno ..~ . c o JI cu (f) 0.... - - . a- Il. . .. - 0 cu 0 I- . .. - C II. . G) " "- . en . ~ . . !. . . . . I. I. . . . . . i. I. I. . . :. . . . . ro ~ c c Q) 0 . Q) E "'C 0) ~ CO E . en - Q) CO Q) 0 . 0:: (9 0:: () . >- ~ -, . . z ( r" . ~... ~r-- =~ . ::i~ ~ . !. MARKETING AND MANAGEMENT PLAN . . . . . . . . . . . . . . . . . . :- . . . . . . . . . . . . . . . . . . . . . . . . Marketing and Management Great Lakes Management Company has a 20-year history of successfully marketing and managing multifamily and senior properties throughout the state of Minnesota. The marketing of a senior housing community would commence at the time of groundbreaking. Marketing events and activities would be on-going through the property's grand opening celebration and beyond until the project reaches stabilized occupancy. The goal ofthe marketing efforts would be to create a positive public image of the property along with community and regional awareness for the purpose of generating interested and qualified seniors who are prepared to enter into lease agreements. Strategies that will be employed to achieve the goal of a rapid lease-up would include but are not limited to: . Brochures (including unit floor plans, amenities and available services) . Site signage . Newspaper Advertising . Internet web site and web advertising . Open houses . Targeted mailings . Media announcements and feature stories Management of the project is performed by personnel hired and directed by Great Lakes Management Company. It is anticipated that staffing would consist of a full-time on-site manager who would be assigned to oversee all of the day-to-day responsibilities of managing and maintaining the property. The on-site manager would report directly to GLMC's Director of Senior Housing. Housekeeping positions would be staffed to perform common area cleaning and unit "turn" cleaning duties. All housekeeping personnel will be employed by Great Lakes Management and will report directly to GLMC's on-site manager. The maintenance duties will be performed by an on-site maintenance person who will also be employed by GLMC and will report directly to GLMC's on-site manager. All accounting and financial administrative activities are performed by Great Lakes Management at the company's home office in Golden Valley, Minnesota. L- Gef~~~Co. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DRAFT PRIOR LAKE Plellnllllal'y PloJect Buclget Housing Retail Total Land Costs TBD TBD TBD Design Costs 276,374 38,746 315,120 Development Costs 266,770 43,139 309,910 Cost of Insurance 180,208 10,000 190,208 Financing Costs 0 21,530 21,530 Capitalized Interest 321,509 52,909 374,417 Construction Costs 6,480,000 1,066,375 7,546,375 Marketing / Management 106,000 67,350 173,350 Operating Reserve TBD TBD TBD Debt Service Reserve TBD TBD TBD Contingency 34,140 5,950 40,091 7,665,000 1,306,000 8,971 ,000 Unit MIX Units Unit Type 18 1 BA. & 1 BA. 6 1 BA. + DEN 12 1 BA. + DEN 6 2 BA. & 2 BA. 6 2 BA. & 2 BA. 6 2 BA. & 2 BA. SF 722 784 941 1033 1065 1081 Monthly Rent $890 $940 $1,130 $1,250 $1 ,290 $1,310 Average Rent Average Price Per SF $1,080 1.21 Parking Projected Vacancy 54 stalls $45 per month 7% First Year 5% Year 2-10 NOTE: Actual results could vary from these projections because of the uncertainties inherent in any financial forecast. . . . . . ,. I. . . . I. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PRIOR LAKE DRAFT 54 UNITS - SENIOR 11,225 SF RETAIL DRAFT HOUSING RETAIL BUDGET/BOND ----- ------------------------------------- ------------------------- ------------- -- ----- ------------------------------------- ------------------------- ------------- LAND COSTS 1 LAND TBD TBD TBD TOTAL LAND COST TBD TBD TBD DESIGN COSTS 2 ARCHITECTURAL & ENGINEERING 178,200 35,920 214,120 3 SOIL TEST 5,581 919 6,500 4 SURVEY 5,152 848 6,000 5 ENVIRONMENTAL 6,440 1,060 7,500 6 PERSONAL PROPERTY / INTERIOR DESIGN ..~1,Q.Q.0 0 . 81,00q TOTAL DESIGN COSTS 276,374 38,746 315,120 DEVELOPMENT COSTS 7 MARKET STUDY 5,152 848 6,000 8 TITLE INSURANCE 9,581 1,632 11,214 9 MUNCIPAL FEES 8,587 1,413 10,000 10 REAL ESTATE TAXES & ASSESSMENTS 0 0 0 11 INSURANCE 13,500 66 13,566 12 DEVELOPMENT ADMINISTRATION (3% of TDC) c~?~,950~ ~9,18Q cC.~ 269,1,30 I TOTAL DEVELOPMENT COSTS 266,770 43,139 309,910 II II COST OF ISSUANCE II 13 FINANCIAL CONSULTANT 35,000 5,000 40,000 I 14 BOND COUNSEL / LEGAL 35,000 5,000 40,000 15 TRUSTEE 11 ,498 0 11 ,498 16 RATING AGENCY 7,500 0 7,500 17 PRINTING 1,500 0 1,500 18 UNDERWRITER FEE 89,710 0 .. 89,710 TOTAL COST OF ISSUANCE 180;208... 10,000 190,208 FINANCING COSTS 19 APPRAISAL 0 5,000 5,000 20 LENDER LEGAL 0 10,000 10,000 20 FINANCING FEE 0 . 6,53Q . 6,530 TOTAL FINANCING COSTS 0 21,530 21,530 II CAPITALIZED INTEREST COSTS II 19 CONSTRUCTION INTEREST 321,.?99 li.?,909 374,41? II TOTAL CAPITALIZED INTEREST COST 321,509 52,909 374,417 II CONSTRUCTlON COST 20 CONSTRUCTION CONTRACT 6,480,000 898,000 7,378,000 TENANT IMPROVEMENTS 0 168>:E~E; ~J..~~.~75 TOTAL CONSTRUCTlON COST 6,480:000 1,066,375 7,546,375 MARKETlNG/MANAGEMENTCOSTS 21 MARKETING 81,000 0 81,000 22 BROKER'S COMMISSION 0 67,350 67,350 23 MANAGEMENT STARTUP ?,?,OOO 0 .?!?,OOO II TOTALMARKETlNG/MANAGEMENTCOSTS 106,000 67,350 173,350 II II OPERATlNG DEFICIT RESERVE 0 0 0 II DEBT SERVICE RESERVE 0 0 0 CONTlNGENCY 34,140 5,950 40,091 -................. -- --- ------------.....---.......---------------...........----......--------------- ------..------------- --.....---------..------ --------......------------- TOTAl [)[VELOI'r,IE::NT COST IlE[H ==== = == =================================== I I ==== = == =================================== I ----------- ----------- ------------- ----------- ----------- ------------- ----------- ----------- ------------- ----------- ----------- ------------- 6/20/2008 54 UNITS_11225COMMERCIAL.x1s NOTE: Actual results could vary from these projections because of the uncertainties Inherent in any financial forecast. !~ 110000000000000000000110 I , I ! ! \ i , 1_ -' 1_ !IDDDDDDDDDDDDDDDDIIIDDD I ~DDDDDDDDDDDDDDIDDDDDDD [ !IDDDDDDDDDDDDDDIDDDDDDD i- ~IDDDDDDDDDIIDIIIIDDDDDD ~DDDDDDDDDIDDIDIDDDDDDD ,_ !IDDDDDDDDDIDDIDDDDDDDDD ~ !_ ~IDDDDDDDIDDDDDDDDDDDDDD = I i ~IDDDDDDDIDDDDDDDDDDDDDD li I~~DDDDDDDIDDDDDDDDDDDDDD ~ == 1-- ~ i 1_ :iDDDDIDIDDDDDDDDDDDDDDD ~ ~ I ~IDDDIIDDDDDDDDDDDDDDDDD o I i- glDDlllDDDDDDDDDDDDDDDDD . ! 1- ~DDIIDDDDDDDDDDDDDDDDDD ! I- ~IDIDDDDDDDDDDDDDDDDDDDD ! I~ !IIDDDDDDDDDDDDDDDDDDDDD I ~ '.1 I.. ..i.. \ i.... '..i. i I. I '.:.' ~ ~ i : Ii Iii :. ::. I' :1 I II'! ~ ! !! 1 l. ' i I! ! i I! il' ! I, I I I I I i ~ I I I , l ! 1 ! 1 I! I i i ! ~! ~~ II i i ! Iii i Oil ~I ; ". "-'. ~ '. I I' I I. I. .....'. "'I !!! i I u, gp., I \5 " o. .;\ ill I ~! &,1 ~ 'VJ . I '3' .~ 'I i , ~ I fr 5 I ~ I led 6 t I is! ca:3. i ! ~I' ~ R ~ I ., I ~ I ,g ~ t; . I Ii: I > '8 I I gpl <I), ,-I ~ ., i ~! s.! ] oS gp ,51 ';;l i ~I s.1 ~ I I 'lS I ';;'i ~. if '::1 1:>.1 ~I 8: '~ '0 ~I. 8' '01, ~ <: I ,sl. ~ '~i. etl ~ 5 I ~ gj, col <: ~ ~ ~ I 0.1 ~!.","" .... u I = ::s I B I ~ f.) ~II ~I.I'~ '~i. 'u~ ~ ~i.. ~I ~! ~ ~ .t ~ ,~I 'e ~I' 81 !.I I p,. 'il .", '3 I .. .. I -.", -' ., i .", i - ., 0 I E l>.1 B U'I::S I ca t i j &l i Q Q ji. ~ I'~ ~ ] ". .~;. ~ 'I'] '9 .9 uS 5 ~ g .9 I 8\ i _ Q '1 I p.. p.., e"'" ::S' liS ::s.,,, col 0 ., I .!! I - 's - e ., i ., 8 i U ~ e <I)' Ii: e I <I) ~ Q. t: 5 U 6 0.1 a ~ ] rt ~' g =1. . g . i .: gl. . 6 ~ .~ ~ 61 61 ~ ~ ~ ~I ~ <I)! 8 8i I <I) ! : <1)1 8 ~ 0 <I) 8 81 <I) Z - .- - - ,~ - ~ - - ~ ~ - RESUME: SCOTT COUNTY CDA . :A\ Ie CDA . . e I- e ie . e ie I- . I- . I. . . . Ie . '. . . i. e . e e . Ie . '. e . Ie e . e . Scott County Community Development Agency SCOTT COUNTY 323 South Naumkeag Street Shakopee, MN 55379-1652 Phone: 952.402.9022 Fax: 952.496.2852 The Strategic Vision of the Scott County Community Development Agency (CDA) is to encourage the formation of new and innovative public and private partnerships to ensure long term sustainability of housing and community development activities and the leveraging of public and private resources to transform communities within Scott County. The Scott County CDA has proven successful in creating partnerships to redevelop downtown areas with mixed use projects resulting in a thriving downtown community where residents want to live, work, shop, and obtain services. Successful revitalization of downtown Prior Lake will require a vision for preservation and economic growth while incorporating Prior Lake's unique historical identity into the project. The Scott County CDA has experience partnering with cities to ensure a successful project. This is done through careful planning and cooperative financing. PLANNING . Downtown businesses/civic groups Merchants Chamber of Commerce . City government Councils Economic Development Authorities (EDA's) . County Community Development Agency Facilitator/Developer . Joint Powers Agreement Partnership-Development Agreement Cost Sharing Market Studies . Concept Development Housing, Retail and Historic Amenities Site Selection Timetable . Development Team Selection Project Coordinator Bond Counsel Financial Analyst Architect FINANCING . Sale of Bonds Tax Exempt Revenue Bonds Taxable Commercial Bonds Low Interest City Loan Tax Increment Special Benefit Tax Contribution Grants Examples of the Scott County CDA successfully partnering with cities for downtown mixed used developments follow. DeAnn Croatt Commissioner District I Ben Zweber Commissioner District n Marjorie Henderson Commissioner District III Patti Sotis Commissioner District IV Jane Victorey Commissioner District V An Equal Opportunity / Affirmative Action Employer . . . . .. . . . . I. ;. . . . . I. . . . . . . . . . . . . . . . . . . . . . . . . . . . ~;'U;;~ II--II~~ II LTCCJ> ~ . 42 units of 55+ independent rental housing in downtown Savage . Approximately 17,528 square feet of office/ classroom space on first floor . Public Master Lease Tenant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . RIVER CITY APAQTMENT~ · 52 units of 55+ independent rental housing in downtown Shakopee . Approximately 25,000 square feet of retail space . Private Master Lease Tenant . . . . . . . i. . . . . . . . . . . '. . . . . . . . . . . . . . . . . . . . . . . . . . DUNBAR DEVELOPMENT CORPORATION Dunbar Development Corporation (DDC), formed in 1985, is a Twin Cities based corporation. DDC has worked extensively with many communities to provide development coordination services for residential components consisting of market rate, mixed-use, senior and student housing along with development services for light industrial, commercial and office developments. DDC develops unique financial, design and construction methods to meet the ever changing market. SCOPE OF SERVICES DDC's areas of expertise include the following: . Market interpretation . Design concept . Financial modeling . Site acquisition and preparation, including coordination of: Traffic analysis EnvironmentaVwetlands assessment Soil analysis . Bond Structuring . Governmental relations, including: Community presentations Design and zoning coordination with Planning Department Design and construction coordination with Inspections & Public Works Departments . Development coordination of architects, attorneys and other project-related consultants . Construction bid negotiations . Construction supervision and management . Coordination of marketing/management activities Attached is a resume for Frank C. Dunbar, President of DDC, along with a list of developments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FRANK C. DUNBAR President, Dunbar Development Corporation Dunbar Development Corporation (DDC) was created in 1985. Since that time, DDC has focused primarily on multi-family developments, owned both by private partnerships and governmental agencies. DDC has developed over 4,500 rental units in the Minnesota, many of which are located in designated redevelopment areas. In recent years, DDC has expanded its development activities to include commercial office, light industrial, for-sale condominiums and retail affiliated with mixed-use developments. Mr. Dunbar has expertise in market interpretation, design concepts, financial modeling and analysis. Mr. Dunbar is involved in site acquisition and preparation with emphasis on environmental concerns. His experience includes strong governmental relationships and detailed coordination with public agencies. The success of DDC is built on strength in construction bid negotiations, construction supervision and management. Mr. Dunbar has and does serve on a number of Boards of professional associations, as well as religious and civic non-profit organizations, throughout the Twin Cities. Mr. Dunbar received his B.A. Degree in Business Administration from St. Mary's University in Winona, Minnesota in 1972. He received a Masters Degree in Real Estate Appraisal and Financial Analysis from the University of Wisconsin-Madison in 1975. . . . . DUNBAR DEVELOPMENT CORPORATION DEVELOPMENT LIST . " ........"., to., ......~.. . - ." ~_ '" l ~..~. :.. ~f-)j; ~ , f:--n I. \11\.1'.1> I SF DEVELOPMENT NAME . MONROE VILLAGE . Minneapolis, MN TOWN CENTRE , . Waconia, MN I . BRICKYARD APARTMENTS Chaska, MN . HAMILTON BUILDING . Savage, MN RIVER CITY CENTRE . Shakopee, MN . LAUREL VILLAGE The McNair . . Deforest Apartments . Hennepin Crossing . I . Alden Apartments (Rehab) Minneapolis, MN . . . DEVELOPMENT NAME HOIGAARD VILLAGE . The Camerata - St. Louis Park, MN . ARBOR GLEN APARTMENTS Maple Grove, MN . LAUREL VILLAGE . Wilson Park Tower Laurel Curve . Swinford Apartments (Rehab) . Swinford Townhomes (Rehab) Minneapolis, MN . GABLES APARTMENTS . Bloomington, MN RESIDENTIAL UNITS COMMERCIAL SQ. FT. 51 Units 7,000 s.f. Commercial 69 Units 32,300 sJ. City HalULibrary 32 Units 8,415 s.f. Commercial 42 Units September, 2000 17,000 s.f. School District Offices 52 Units August, 1998 25,373 s.f. Commercial COMPLETION OWNER Volunteers of America, Minnesota Carver County CDA II. \J \I{KI. 1 I{ \ I I IIO! SI"\(; November, 2004 December, 2003 January, 2001 Carver County CDA 1I1.()11I<1 . . DEVELOPMENT NAME . ING DIRECT BUILDING St. Cloud, MN . WAYZATA EXECUTIVE . PLAZA Wayzata, MN SPRINGBROOK EXECUTIVE . PLAZA Coon Rapids, MN . MINNETONKA EXECUTIVE . PLAZA Minnetonka, MN MAPLE GROVE EXECUTIVE . SUITES Maple Grove, MN . CHAMPLIN PROFESSIONAL BUILDING Champlin, MN . VALLEY CREEK OFFICE . PARK Golden Valley, MN . . . Scott County CDA Scott County CDA Laurel Village Partners 77 Units 10,000 s.f Commercial 72 Units 15,793 s.fCommercial 210 Units 29,580 sJ. Commercial 68 Units 6,000 s.f. Commercial February, 1991 April, 1990 June, 1989 June, 1986 RESIDENTIAL UNITS COMPLETION OWNER 220 units Under Construction Camerata, LLC 264 Units June,2002 MG Longstreet, LLC Laurel Village Partners 204 Units July, 1991 89 Units July, 1991 52 Units June, 1991 23 Units June, 1991 102 Units December, 1987 Grand Gables Partners RESIDENTIAL UNITS COMPLETION OWNER 72,954 sJ. December, 2007 Cloudbar & Associates, LLC 104,000 s.f. April, 2002 Wayham, LLC 32,136 s.f. October, 2000 Net Rapids, LLC 16,597 s.f. February, 2000 Ambar, LLC 57,112 sJ. November, 1998 Merchant Development LLC 11,757 s.f. September, 1998 Champlin Drive, LLC 128,000 sJ. August, 1998 Valley Creek (3 buildings) Development, LLC 1\. SE'\IOJ{ Ilot SI,\(; . . DEVELOPMENT NAME . GLENDALE PLACE Savage, MN . PEACE VILLA . Norwood Young America, MN THE OAKS OF LAKE GEORGE . Oak Grove, MN . CHAUNCEY BARETT GARDENS - PHASE II . Centerville, MN . NORTHRIDGE COURT Shakopee, MN . ORONO WOODS . Orono, MN PHILLIP SQUARE . New Prague, MN . SAVANNAH OAKS Ramsey, MN . CHAUNCEY BARETT . GARDENS . Centerville, MN GARDEN TERRACE II . New Ulm, MN . LINCOLN PLACE APARTMENTS Eveleth, MN . WASHINGTON MANOR . (Rehab) Virginia, MN . THE WILLOWS . Ham Lake, MN CENTENNIAL HILL . Chanhassen, MN . SUMMERFIELD PLACE - II . Thief River Falls, MN Baudette, MN . WILD RIVER APARTMENTS Sandstone, MN . SUMMERFIELD PLACE - I . Crookston, MN . Ada, MN Park Rapids, MN . Warren, MN . Clearbrook, MN Fertile, MN . Fosston, MN . LAKESHORE PLACE Grand Rapids, MN . GARDEN TERRACE . New Ulm, MN AMBERFIELD PLACE . Arlington . Madelia . Trimont (Rehab) Sherburn . Gaylord Madelia . LAURENTIAN MANOR . Virginia, MN . NORTH VIEW MANOR Bemidji, MN . RESIDENTIAL UNITS COMPLETION OWNER 64 Units Under Construction Scott County CDA 36 Units October, 2006 City of Norwood Young America 52 Units July, 2006 Anoka County HRA 31 Units December, 2004 Anoka County HRA 58 Units August, 2004 Scott County CDA 62 Units October, 2002 V olunteers of America, Minnesota 55 Units September, 2002 Scott County CDA 50 Units October, 1999 Anoka County HRA 16 Units May, 1998 Anoka County HRA 37 Units June, 1997 New Ulm EDA 30 Units May, 1997 Eveleth EDA 63 Units May, 1997 Virginia HRA 49 Units March, 1997 Anoka County HRA 62 Units July, 1996 Carver County CDA Northwest Minnesota 47 Units April, 1996 Multi-County HRA 30 Units February, 1996 36 Units September, 1995 Sandstone HRA Northwest Minnesota 30 Units February, 1995 Multi-County HRA 31 Units January, 1995 60 Units January, 1995 20 Units December, 1994 10 Units December, 1994 14 Units November, 1994 12 Units November, 1994 60 Units July, 1994 Grand Rapids HRA 51 Units May, 1994 New Ulm EDA South Central Minnesota 30 Units June, 1994 Multi-County HRA 20 Units June, 1994 10 Units May, 1994 14 Units May, 1994 26 Units March, 1994 16 Units February, 1994 80 Units March, 1993 Virginia HRA 60 Units October, 1992 Bemidji HRA ....... ~... . - ,"..' ,t.}- ".. <t.."! . ~.';j ~'JI, . DEVELOPMENT NAME RESIDENTIAL UNITS COMPLETION OWNER . COBBLE HILL APARTMENTS 45 Units June, 1992 Washington County HRA Woodbury, MN . ANN BODLOVICK 50 Units September, 1991 Washington County HRA . APARTMENTS Stillwater, MN 180 Units December, ] 989 Washington County HRA WOODLAND PARK . APARTMENTS . Cottage Grove, MN 146 Units December, 1987 Grandview Partners VERNON TERRACE . Edina, MN . . \.SII III ,11101 SI"\(. DEVELOPMENT NAME . EAST LAKE APARTMENTS . Winona, MN KEELER APARTMENTS . Minneapolis, MN . UNIVERSITY VILLAGE . Minneapolis, MN CAMPUS COURT . APARTMENTS . Thief River Fal]s, MN ALPINE VILLAGE . Virginia, MN . . RESIDENTIAL UNITS COMPLETION OWNER 100 Units August, 2003 Winona State University Foundation 44 Units August, 2003 J.A.Wedum Foundation 10,000 s.f Episcopal Church ] 99 Units August, 1999 J.A. Wedum Foundation 24,000 s.f. Commercial 40 Units November, 1995 Northwest Minnesota Multi-County HRA 24 Units November, 1995 Virginia HRA .,-,: >-.~ ---.. \ I. \111 II-I' \\111 \ 1101 SI\(, DEVELOPMENT NAME . JONATHAN TOWNHOMES . (Rehab) Chaska, MN SUMMERFIELD PLACE - II . Roseau . Thief River Falls Baudette . Badger . WILD RIVER APARTMENTS Sandstone, MN . CITY VIEW APARTMENTS . (Rehab) Des, Moines, lA . SUMMERFIELD PLACE - I Warren . Crookston . Greenbush Erskine . C]earbrook . Fisher Shelly . Newfolden . Fosston Park Rapids . Argy]e . FOREST PARK WEST Grand Rapids, MN . AMBERFIELD PLACE . Arlington . Henderson St. James . Madelia . Winthrop Gibbon . Lafayette . RESIDENTIAL UNITS COMPLETION OWNER 86 Units 1999 Carver County CDA Northwest Minnesota 41 Units Apri], 1996 Mu]ti-County HRA 36 Units March, 1996 12 Units February, 1996 8 Units November, 1995 36 Units September, 1995 Sandstone HRA 144 Units September, 1995 Hillside Neighborhood LP Northwest Minnesota 16 Units January, ] 995 Mu]ti-County HRA 40 Units December, 1994 12 Units December, 1994 10 Units December, 1994 6 Units December, 1994 14 Units November, 1994 8 Units November, 1994 8 Units November, 1994 ] 2 Units November, ] 994 36 Units November, 1994 8 Units October, 1994 36 Units September, 1994 Grand Rapids HRA South Centra] Minnesota 26 Units May, ]994 Multi-County HRA 14 Units Apri] , ] 994 28 Units Apri], 1994 24 Units March, 1994 16 Units February, 1994 ] 2 Units February, 1994 12 Units January, ] 994 ", ~.~_. ,;iF,' .L~ '. Ji__ ...,-~ ""', '.', ;1, ~ ... . , ' ~'7" ~\.';X \~;~, 1''''...... .~', '\:~ . . DEVELOPMENT NAME AMBERFIELD PLACE . Janesville . Courtland St. Clair . LAKE GRACE APARTMENTS . Acquisition Units Chaska, MN . TRAIL EDGE APARTMENTS . Faribault, MN BRIAR POND . Oakdale, MN . . DEVELOPMENT NAME . PAINTER'S BUILDING . Little Canada RESIDENTIAL UNITS COMPLETION OWNER South Central Minnesota Multi-County HRA Carver County CDA Faribault HRA Washington County HRA \ II. I ((.111 1.\1)1 S I RI \1 . . HUGO LIGHT INDUSTRIAL . BUILDING Hugo, MN . RAMSEY SQUARE . Ramsey, MN CHUCK'S GRINDING . Chanhassen, MN . · DEVELOPMENT NAME . HOIGAARD VILLAGE . Harmony Vista . The Adagio Medley Row . St. Louis Park, MN . CRESCENT TRACE CONDOMINIUMS . Minneapolis, MN . WYLDEWOOD CONDOMINIUMS Minnetonka, MN . RA VOUX RIDGE . Chaska, MN 35th & BLOOMINGTON . Minneapolis, MN . FERNDALE TOWNHOMES Wayzata, MN . 900 LINCOLN . Minneapolis, MN 24 Units 20 Units 8 Units 19 Units January, 1994 December, 1994 December, 1994 October, 1993 OWNER International Union of Painters & Allied Trades District Council 82 Building Corporation Inc. Hugo Land Development, LLC Ramsey B&B, LLC Hercules, LLC /!1;. '1" '. "~~. J.D." '';-'- - .,:' " ~.'- "i .' t c, ,0 lJJJ . ",/4 ,"'~.,,' ~ fj1J' I",." " , i" fj. ~'.,t \ III. 10\\ \I10\II:S ,'\. ('0\1)0\11\11 \IS . . . DEVELOPMENT NAME . GIANT'S RIDGE LODGE Biwabik, MN . DUAL FACILITY FOR JUVENILES . Crookston, MN . ANN BODLOVICK SR CENTER . Stillwater, MN . 50 Units November, 1992 OWNER Union Land II, LLC Webster Group, LLC Medley Row, LLC Union Land III, LLC Wy1dewood Condominiums LLC Carver County CDA Minneapolis Urban League For Sale For Sale - .' "" . . ~ . " . .-' -- ~ .,..::- ~. ....... ----- .... I .... I I\.. \lIS( II I \\1 ()l S --~-- - - - -.;:;> .- /' ~..... ~ Lid: " . , ~ ",.l'!. 'j 196 Units November, 1991 RESIDENTIAL UNITS 57,000 s.f. COMPLETION December, 2003 92,980 s.f. September, 2002 41,755 s.f. August, 2000 16,000 s.f. March, 1997 RESIDENTIAL UNITS COMPLETION 24,363 sf For-sale Commercial February, 2008 74 For-sale Condominiums February, 2008 58 For-sale Condominiums Under Development 22 For-sale Townhomes Under Development 56 For-sale Condominiums December, 2006 10,062 sf For-sale Commercial 39 For-sale Condominiums December, 2005 24 For-sale Townhomes Under Construction 8 Rental Townhomes April, 2003 6 For-sale Townhomes June, 1989 25 For-sale Townhomes September, 1988 RESIDENTIAL UNITS COMMERCIAL SQ. FT. 83 Units COMPLETION December, 1999 9,000 s.f. February, 1997 6,042 sJ. September, 1991 OWNER Hotel Capital Group XXIV Northwest Minnesota Multi-County HRA Washington County HRA ~.... w. '"( - -... _.. u_ ... ...- _... J_ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ Great Lakes~lm Co. ........ 6' PrtIpnr,y ~ An Overview Great Lakes Management Company (GLMC), formed in 1988, is a Minnesota business corporation which provides real estate management and marketing services for real estate partnerships and corporations as well as other property owners such as pension funds, bank trustees, condominium associations and private institutions. More specifically, GLMC has developed extensive expertise in serving the management and marketing needs of a diverse group of commercial property owners and developers including private investors, institutional investors and not-for-profit organizations. GLMC is presently managing a portfolio of approximately 600,000 square feet of suburban office, light industrial and retail space along with 26 properties and approximately 3,500 apartment and condominium units. The majority of the properties in the portfolio have been new construction where GLMC was responsible for the initial lease-up of the property and transition from construction to operations. Owner Services GLMC offers professional property marketing and management services to owners of commercial, investment-grade multifamily residential, retail and office properties. Superior Service through a Team Approach A consistently superior level of service is provided to our clients through a team approach to management. The skills and experience of highly trained professionals, representing a broad range of real estate disciplines are coordinated and applied to the specific marketing and management needs of the property. Communications To assure that our efforts are meeting the needs and expectations of the property owner, our procedures include regularly scheduled communications between all parties. These communications include weekly marketing updates, monthly income statements and variance reports as well as regular meetings and site inspections. A Tailored Approach Systems and procedures are designed with the flexibility to meet the specific needs of a given property while conforming to the client's financial and management reporting requirements. A creative approach to management and marketing means Great Lakes Management tailors its services to each client's individual needs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marketing Marketing expertise at Great Lakes Management spans all stages of a property's evolution from the pre-marketing of new construction to maintaining desired occupancy levels at established projects. A thorough and project-specific marketing plan is prepared that defmes the realities of the market, appropriate marketing techniques and materials to be used, staffmg requirements and the budget which will most effectively support the project's marketing objectives. Resident Services Recognizing that it is through consistently superior service that property residents, retail tenants and commercial tenants are satisfied, GLMC strives to maintain the utmost in tenant satisfaction while providing a positive living and/or working environment. To this end, GLMC has invested in concierge and corporate services as well as researching the benefits of new technology for each asset. The Physical Asset Maintaining and upgrading the physical asset is important as well. Great Lakes Management performs a maintenance checklist on each rental home and commercial space prior to a new tenant taking occupancy. In addition, a preventative maintenance team works with the managers of each property to ensure smooth on-going operation of each asset. The People Make the Difference GLMC has a staff of over 250 employees engaged in all phases of residential, retail and commercial management. While employees work in specific positions including management, marketing and leasing, maintenance, painting, housekeeping and caretaking, administration, accounting, services coordination, data entry and financial analysis, they understand that only when working as a team will they be successful. Customer Service Philosophy Our customer service policies and procedures flow out of a philosophy that can be stated as follows: . We believe that effective customer service is grounded in a commitment to knowing the customer and their needs, wants and desires. . We believe that for customer service to be effective it must remain relevant to the changing needs of the customers being served. . We recognize that superior quality customer service doesn't just happen, it is planned. We are, therefore, very intentional about employee training that stresses the consistent nurturing of a "Customer Minded Orientation." . Our customer service philosophy is characterized by our commitment to "answer the phone when it rings" and to take ownership of the call until it is 100% satisfied. If it is a question we answer it, if it is a problem we resolve it and if it is an opportunity we seize on it. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . KEY PERSONNEL Great Lakes Management Company is controlled by a Board of Directors comprised of the stockholders of the company. The company is staffed by an energetic and creative group of individuals, each of whom brings a wealth of experience to their area of responsibility. The organizational approach to be used at a specific property is determined during the completion of the management plan prior to Great Lakes Management (GLMC) stepping in to commence the management of the property. A Property Manager is in charge of supervising the on-site personneL The Property Manager is the key link to GLMC's administrative office. Senior GLMC staff have regular and consistent contact with on-site personnel for purposes of training and the implementation and monitoring of the management and marketing plans. The Property Manager is responsible for adhering to the owner-approved budget and for the achievement of the goals and objectives outlined in the management plan. Accounting and reporting functions are administered at GLMC's main office through a centralized accounting department. Cross-training of on-site employees is implemented so that each maintains a "big picture" view of the goal of the property. This has been a key element in the success ofGLMC's approach to property management. Key senior personnel and positions are described herein: Michael B. Pagh President mDal!h@greatlakesmc.com Mr. Pagh oversees and coordinates all aspects of marketing, management and administration for Great Lakes Management. Mr. Pagh is a graduate of the University of Minnesota with a B. A. in Economics and Business Administration and has been actively involved in Twin Cities-based investment real estate businesses for the past 26 years. Mr. Pagh's industry background includes 10 years of full-time commercial mortgage banking work for regional and national financial institutions. Mr. Pagh is a member of the National Association of Industrial and Office Parks. Mr. Pagh is a licensed real estate broker and has recently served as Chairman of the Board of Directors of the Minnesota Multi-Housing Association. Vicky M. Dwyer Corporate Controller vdwver@greatlakesmc.com As Corporate Controller, Ms. Dwyer is responsible for the administration of financial reporting for all properties under management by Great Lakes. Ms. Dwyer received a Bachelor of Science in Business Administration degree from Mankato State University where she majored in both Accounting and Finance. Prior to joining GLMC, Ms. Dwyer held several financial and accounting positions for Twin Cities-based real estate development and property management firms. Ms. Dwyer's responsibilities also include Human Resources administration and oversight. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mary Gamec Vice President-Commercial Division mgamec(iiJ,greatlakesmc.com As Vice President-Commercial Division, Mary is responsible for the day-to-day management and oversight of Great Lakes Management's commercial portfolio. She earned a CPM designation from the Institute of Real Estate Management (IREM) and is a licensed real estate broker in the state of Minnesota. Ms. Gamec has over 25 years of hands-on experience in the management and marketing of office, retail and industrial properties. Over the course of her career, she has worked for several national property marketing and management firms. She is also an active member of the National Association of Industrial and Office Parks having held numerous committee positions within the local chapter. Robin Barrett Director of Senior Housing rbarrett(iiJ,greatlakesmc.com As Director of Senior Housing, Ms. Barrett is responsible for overseeing the marketing and management of GLMC's portfolio of senior rental housing units. In addition, she oversees the establishment of appropriate human service programs and initiatives at all properties under the management of Great Lakes Management. Ms. Barrett has over 20 years of experience in senior housing management and service coordination. Over the course of her career, Robin has been involved in new construction and with companies having national portfolios. Ms. Barrett is a member of MHHA, MHA and the National Association of Housing and Redevelopment Authorities. Kenneth Perusek Director of Operations kperusek(iiJ,greatlakesmc.com As Director of Operations, Mr. Perusek is responsible for overseeing the fmancial and operational issues of the general occupancy and condominium multifamily portfolio. Mr. Perusek holds a Bachelor of Science in Business Administration from John Carroll University and has over twenty-five years of experience in hospitality and multi-family housing. . . . . . . . . . . . . . . . I. . . . . . . . . . . . . . . . . . . . . Ie e '. I. . . . MANAGEMENT PORTFOLIO At the present time, Great Lakes Management Company is leasing and managing on a fee basis a diverse group of senior housing developments owned by a variety of Housing and Redevelopment Authorities and Community Development Agencies. Great Lakes Management is currently marketing and managing properties on a fee basis for a diverse group of building owners, institutional investors and governmental agencies. A representative sample of our Senior Housing properties follow: Senior Housing Developments St. Therese Southwest Hopkins, MN The Towers of St. Therese Southwest is a 227-unit senior high-rise located in suburban Hopkins. The property is owned by a non-profit corporation and has been managed by Great Lakes Management since 1992. It features amenities such as a dining room with meals served daily, beauty salon, library, party room, craft room and a chapel. Designed for seniors able to live independently, health care services are on a "fee for service" basis. This property is able to accommodate a wide range of personal and health care needs and has been operated at full occupancy with a waiting list for many years. An 86-unit Assisted Living facility called The Terraces of St. Therese Southwest offers assisted care and includes a 25-unit memory care wing. In whole, this campus approach to senior housing is an example of the continuim of care that allows seniors to age in place. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Savannah Oaks Apartments Ramsey, MN Savannah Oaks is a 50-unit senior rental apartment community owned the Anoka County HRA. The project features large and spacious community spaces, underground parking and individual washers and dryers. Savannah Oaks also serves an active group of seniors with an average age of 71. Wild River Apartment and Townhomes Sandstone, MN Located in the woods of central Minnesota, Wild River features 36 units of senior and 36 units of multifamily housing. This project features a dining room with catering kitchen, guest suite, heated parking, card and craft rooms and library. It also features underground parking and the townhomes offer private, detached parking. All homes feature central air and heat as well as full-size washers and dryers. The Willows of Ham Lake Ham Lake, MN The Willows of Ham Lake was completed in April 1997. It was 100% occupied on day one and has maintained this stellar performance ever since. All budget projections for the property have been met. It is situated on the beautiful Majestic Oaks Golf Course in Ham Lake and features numerous community rooms and common area amenities. This property is owned by the Anoka County HRA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Broadway Court Robbinsdale, MN This mixed use property features 57 apartment homes for seniors 55 or better along with 6,400 SF of retail space. This property is owned by the Robbinsdale EDA. Amberfield Place South Central, MN Amberfield Place consists of 300 units spread over six counties in South Central Minnesota. Owned by the South Central MN HRA, Amberfie1d Place consists of a blend of multifamily apartments and housing for seniors age 55 or better. Chauncey Barett Gardens I and II Centerville, MN This community features 47 apartments in two separate buildings for seniors 55 or better. Our client is the Anoka County HRA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The project is owned by the Scott County CDA. The Hamilton Savage,MN The Hamilton features 42 apartments for seniors 55 or better, a library, guest suite and a billiards room. Lincoln Place Eveleth, MN This quaint apartment community on northern Minnesota features 30 apartment homes for seniors 55 and better along with a community room, library and guest suite. The project is owned by the Eveleth EDA. Monroe Village Minneapolis, MN Owned by the Volunteers of America (of Minnesota), Monroe Village features 51 apartment homes for seniors 55 and better along with 6,200 SF of retail space on the first level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Great Lakes Management Co. also manages: Multifamily Housing Senior Housing . Laurel Village Minneapolis, MN Client: The Travelers . Phillip Square New Prague, MN Client: Scott County CDA . Arbor Glen Apartments Maple Grove, MN Client: MG Longstreet, LLC . River City Centre Shakopee,MN Client: Scott County CDA . Hazelton Apartments Edina, MN Client: Edina A & P, LLC Student Housing . Harmony Vista St. Louis Park, MN Client: Union Land, LLC . University Village Minneapolis, MN Client: J. A. Wedum Foundation . The Camerata (under development) St. Louis Park, MN Client: Camerata, LLC . Keeler Apartments Minneapolis, MN Client: J. A. Wedum Foundation Senior Housing Condominiums . Northridge Court Shakopee,MN Client: Scott County CDA . The Wyldewood Minnetonka, MN Client: The Wyldewood Condominium Association . Oaks of Lake George Oak Grove, MN Client: Anoka County HRA . Orono Woods Orono, MN Client: Volunteers of America of Minnesota, LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MILLER HANSON PARTNERS ~, - ~ ~ ~ ARCHITECTS + PLANNERS Design Team Leaders Wilt Berger President and Partner Celebrating 35 years with Miller Hanson Partners, Wilt assures that the firm's commitment to design excellence is matched by its dedication to providing clients with exemplary professional services in construction document production, field observation and project close-out. Now more than ever, he sees creating better places for people to live as the best opportunity to strengthen our neighborhoods and communities. Kent Simon, AlA Vice President and Partner With more than 25 years of design experience, Kent has developed a commitment to the creation of quality senior housing environments. He emphatically believes that the design of housing not only plays a significant role in a person's well-being, but also keeps residents active and involved with family and community. Kent strives to respond to the diverse values of residents, staff, and community while at the same time remaining accountable to the owner's budget limitations. The comprehensive portfolio of projects he has overseen since joining Miller Hanson Partners in 1980 is a testament to the success of these values. Michael Nelson, AlA Associate & Project Manager Professionally and personally, Michael is committed to creating better- planned urban environments, making cities a better place to live. Informed by extensive experience, this commitment is integral to his work as project manager on award-winning developments such as Gramercy Club of Edina condominiums and Heritage Commons senior housing for the Minneapolis Public Housing Authority. 1201 HAWTHORNE AVENUE MINNEAPOLIS, MN 55403 T 612.332.5420 F 612.332.5425 WWW.MILLERHANSON.COM DEVELOPMENT TEAM MEMBERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DEVELOPMENT TEAM Buildin2 Owner Scott County Community Development Agency 323 South Naumkeag Shakopee,~ 55379-1652 . William I. Jaffa Proiect Coordinator Dunbar Development Corporation 5000 Glenwood Avenue, Suite 200 Minneapolis, MN 55422 . Frank Dunbar Architect Miller Hanson Partners 120 I Hawthorne Avenue Minneapolis, ~ 55403 . Wilt Berger Contractor To be determined Mana2ement Company Great Lakes Management Company 5000 Glenwood Avenue, Suite 150 Golden Valley, ~ 55422 . Michael Pagh Attornev Leonard Street & Deinhard 150 South 5th Street, Suite 2300 Minneapolis, MN 55402 . Barbara Portwood Accountant Deloitte & Touche 120 South Sixth Street Minneapolis, ~ 55402 . Jim Weichert Financial Advisor Springsted, Inc. 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 . Kathy Aho Title Company Commercial Partners Title, LLC 200 South Sixth Street, Suite 1300 Minneapolis, ~ 55402 . Mark Goodman