HomeMy WebLinkAboutWhitman Point-Limited Partnership-09.08.2008 ✓L4 Whitman Point Limited Partnership
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The Whitman Point request will include the creation of an Enterprise Zone on a
project site on Flammang Drive, located within Census Tract No. 9. The
requirements of Enterprise Zone creation:
Please indicate which two eligibility criteria the designated area* has met in
order to be eligible to apply for Enterprise Zone Certification.
A) The area has a per capita income of$12,648 or less based on the
2000 Census.
B) The area has a family poverty rate of 12% or higher based on the
2000 Census.
C) Ten percent or more of the housing units are vacant in the area.
D) The valuations of each class of property in the designated area is 75%
or less of the citywide average for that classification based upon the
most recent valuations for property tax purposes.
E) The area is a blighted area, as defined in Iowa Code section 403.17.
*One or more contiguous census tracts or other geographic units located within
the boundaries of a city with a population of 24,000 or more as shown by the 2000
Census.
Census Tract No. 9 has a per capital income of$12,264.
Census Tract No. 9 has a family poverty rate of 35.5%.
These numbers are from the 2000 Census information.
Thus, the area is eligible for Enterprise Zone inclusion.
This expansion request is for the proposed project (below), which has received
approval for Iowa Finance Authority Housing Tax Credits. The project would be a
frail elderly senior assisted living facility, which would appear to meet eligible housing
project requirements:
The eligibility requirements of the Enterprise Zone for Housing Projects:
❑ The developer or contractor must build or rehabilitate at least four
single-family homes or at least one multi-family building containing
three or more units in a certified Enterprise Zone.
The project involves the construction of 50-60 units.
❑ The housing must, when completed and made available for occupancy,
meet HUD housing Quality Standards and local housing codes.
The project will meet applicable codes.
❑ The housing must be completed within two years of the start of
construction or rehabilitation.
The developer does not foresee this timeline as a problem.
❑ The local Enterprise Zone Commission and the Iowa Department of
Economic Development must approve the proposed housing project
prior to project initiation.
This is the step we are in the process.
BH&Whitman staffreports/22-Aug-08
Application notes/updates:
Staff did attend neighborhood meetings on the project, at which the majority
of those present were in favor of the project, or at least did not oppose the
project.
The proposed project will involve tax credits from the Iowa Finance Authority.
The site is located on Flammang Drive.
The development will included 55 units, two multi-purposes rooms, one
common kitchen, one common dining room, one computer area, one salon,
one lounge area, one private dining room.
52 of the units will be one bedroom (approx. 606 sq. ft)
3 units will be two bedroom (approx. 821 sq. ft.)
Each unit will include personal kitchen, living/dining room, bathroom and
bedroom(s).
Entire building is handicap accessible.
Sidewalk will encircle building, with outside seating.
33 units are for seniors at or below 6)% of Area Median Income
22 units at or below 40% of AMI.
The units will be affordable to these populations for a minimum of 50 years.
Average value per unit is $146,617.
The lot is an infill development lot and promotes Smart Growth for the City of
Waterloo.
BH&Whitman staffreports/22-Aug-08
APPLICATION for ENTERPRISE ZONE BENEFITS
Housing Development
Iowa Department of Economic Development
Division of Community Development
200 East Grand Avenue
Des Moines, Iowa 50309
INTENT: The Enterprise Zone Program was established by the Iowa Legislature with the intent of
promoting new economic development in economically distressed areas of Iowa by encouraging
communities to target resources in ways that attract productive private investment.
PROJECT INITIATION: Projects that have already been initiated before receiving formal application
approval by the Iowa Department of Economic Development shall not be eligible for tax incentives and
assistance under this program.
"Project initiation"means any one of the following: the start of construction of new or expanded
buildings;the start of rehabilitation of existing buildings; the purchase or leasing of existing buildings; or
the installation of new machinery and equipment or new computers to be used in the operation of the
business' project. The purchase of land or signing an option to purchase land or earth moving or other
site development activities not involving actual building construction,expansion or rehabilitation shall
not constitute project initiation.
GENERAL INSTRUCTIONS
1. If more than six months has elapsed since the date on the front of this application,please contact
IDED to see if this version of the application is still current.
2. Before filling out this application form,please read Iowa Code Sections 15E.191 through 15E.196, as
amended and the Enterprise Zone administrative rules.
3. Only typed or computer-generated applications will be accepted and reviewed. (Contact the IDED to
have an electronic copy of this application e-mailed to you.) Any material change to the format,
questions or wording of questions presented in this application,will render the application invalid and
will not be accepted.
4. Complete the application fully; if any questions are left unanswered or required attachments are not
submitted, an explanation must be included.
5. Use clear and concise language. Attachments should only be used when requested or as supporting
documentation.
6. Any inaccurate information of a significant nature may disqualify the application from consideration.
7. Send the original plus two copies of the completed application form and all required attachments to:
Kent Powell
Housing Fund Compliance Specialist
Iowa Department of Economic Development
200 East Grand Avenue
Des Moines, Iowa 50309
Phone: (515)242-4786
Fax: (515)242-4809
E-mail: kent.powell@iowalifechanging.com
It is not necessary to bind the application and/or the required attachments. Staples and/or binder
clips may be utilized. Please provide photocopies of any documents,which in their original form,
IDED would not be able to 2-hole punch for purposes of creating the applicant's file.
PUBLIC RECORDS POLICIES
The Iowa Department of Economic Development(IDED)is subject to the Open Records law(2001 Iowa
Code, Chapter 22). Treatment of information submitted to IDED in an Enterprise Zone application is
governed by the provisions of the Open Records law. All public records are available for public
inspection. Some public records are considered confidential and will not be disclosed to the public unless
ordered by a court, the lawful custodian of the record, or by another person duly authorized to release the
information. Copies of Iowa's Open Records law and IDED's administrative rules relating to public
records are available from the Department upon request.
APPLICANT INFORMATION
Name of Housing Business: Whitman Point Limited Partnership
Contact Name&Title: Robert P. Burns
Manager
Sagamore Development,L.L.C.,General Partner
Address: 319 E. Washington St., Suite 111
PO Box 1226
City, State &Zip Code: Iowa City,IA 52244-1226
Telephone: (319)338-7600
Fax: (319)337-2430
E-mail Address: info@burnshousing.com
Taxpayer Identification No.: Whitman Point Limited Partnership 20-5634891
Local Enterprise Zone Commission
Enterprise Zone Commission Name: The City of Waterloo Enterprise Zone Commission
Contact Name & Title: Noel Anderson, City Planner
Organization: City of Waterloo Community Planning&Development Department
Address: 715 Mulberry Street
City, State &Zip Code: Waterloo, IA 50703
Telephone: (319)291-4366
Fax: (319)291-4262
E-mail Address: noel.anderson@waterloo-ia.org
CERTIFICATION& RELEASE OF INFORMATION
I,the undersigned, on behalf of the Housing Business identified above, hereby submit the following
application under Iowa Code Sections 15E.191 through 15E.196. I certify that the Housing Business is in
good standing, and has complied or will upon receipt of approval by the Department,with all applicable
laws of the State of Iowa to conduct business within the State. I certify that all information,
representations, or statements provided to the Iowa Department of Economic Development(IDED), in
connection with this application, are true and correct in all material respects.
I certify and understand that in order to receive benefits under the Enterprise Zone Program that the
project described in this application has not been initiated and that the project will not be initiated until
the business receives final approval of this application from the IDED.
I hereby give permission to IDED to make credit checks, contact the company's financial institution(s),
and perform other related activities necessary for reasonable evaluation of this application.
I understand this application is subject to fmal approval by the Department and am aware that Enterprise
Zone benefits are not available until final Department approval is secured and an agreement is executed
with the Housing Business,IDED and the Community, within a reasonable time period following
approval. This application will be used as the basis for the Enterprise Zone agreement.
For the Housing Business:
Signature, Title
Robert P. Burns,Manager, Sagamore Development, LLC, General Partner Whitman Point LP
Print name and title
August 18, 2008
Date
For the Enterprise Zone Commission:
Signature, Title
f u,r 1 e yy fl- r
Print name and title
Date
APPLICATION INFORMATION
1. Please provide a brief description of the proposed housing development project.
The proposed housing development consists of one two-story building consisting of 55 units, two
(2) multi purpose rooms, one (1)common kitchen, one (1)common dining room, one (1)
computer area, one (1)salon, one (1) lounge area, one (1)private dining room that tenants can
reserve for family gatherings and private get-togethers, and other essential amenities 52 of the
units will be one-bedroom and 3 units will be two-bedroom. Each unit will include a personal
kitchen, living/dining room, bathroom, and bedroom(s). The entire building, including all units,
will be fully handicapped accessible.
The project will be fully landscaped and adequately provide for parking. A sidewalk will encircle
the building, allowing space for residents to exercise and access fresh air. Outside seating will
also be provided onsite to enhance the site's aesthetics and provide residents a place to enjoy the
outdoors.
The project is designed to provide assisted living for low-income seniors. 33 units will be
designated for seniors who have incomes at or below 60%of the Area Median Income (AMI). 22
units will be designated for seniors who have incomes at or below 40%of AMI The units will be
affordable to these populations for a minimum of 50 years.
2. In which Enterprise Zone will this project occur(include the zone's name, number, size in acres,
and date certified)?
Pending approval of Enterprise Zone certification.
3. Does the project involve new construction or rehabilitation?
New Construction
4. How many single-family homes or multi-family units are proposed?
The proposed project will include 55 multi family units total; 52 one-bedroom units and 3 two-
bedroom units.
5. What will be the per unit value of the housing?
Approximately$146,617
6. The single family homes or multi-family units being constructed or rehabilitated must be modest
homes or units and include the necessary amenities. Please explain how the proposed project will
satisfy this requirement?
Each single bedroom unit will be approximately 606 square feet and each two bedroom unit will
be approximately 821 square feet. Each unit will include a foyer, storage/coat closet, kitchen,
living/dining area, bathroom with linen closet, and a bedroom with closet. Each dwelling unit
will be served by a gas forced air furnaces and central air conditioning.
The units will not include fireplaces, dishwashers, garbage disposals, or ceiling fans. Nor will
the project include extra amenities such as swimming pools and tennis courts. These units will be
modest, as the budget is tight in order to be affordable to households at or below 60%AMI,
including 22 units affordable to households with incomes equal to or less than 40%AMI.
7. Will the project meet U.S. Department of Housing and Urban Development Housing Standards
and applicable local codes?
Yes, the project will meet U.S. Department of Housing and Urban Development Housing
Standards and all applicable local codes.
8. What is the current status of the project? When is construction scheduled to begin? What is the
anticipated project completion date?
Project plans and specifications are in process. Construction is scheduled to begin late summer
or early fall 2008. Anticipated project completion is fall 2009 or spring 2010.
9. Attach a legal description of the business site on which the project will occur.
Please see Attachment A.
10. Attach a detailed map(no larger than 8"x 14") showing the housing development site in relation
to the boundaries of the certified Enterprise Zone.
Please see Attachment B
11. Is any part of the project located in a 100-year flood plain?
No
12. Please indicate the total capital investment that will be made as the result of this project?
Description of Capital Expenditure Amount
Land&On-Site Work $250,000
Construction $5,750,000
Architectural&Engineering $407,000
Construction Loan $313,000
Initial Operating&Maintenance $291,356
Legal,Accounting,Market Study,Appraisal, $1,052,555
Property Taxes,Developer Fee
Total $8,063,911
13. Please identify the sources of project financing that will be utilized and the amount of the
financing. (The total amount of the financing should equal the total expenditures in Question
#12.)
Source of Project Financing Amount
Investment equity from IFA LIHTC $6,591,000
Enterprise Zone Sales Tax Rebate $40,000
Enterprise Zone Tax Credit Owner Equity $35,000
Hills Bank permanent loan $1,334,911
Hills Bank waived construction loan fees $63,000
Total $8,063,911
14. For purposes of determining the amount of investment tax credits the housing business may
receive,the Iowa Department of Economic Development cannot include capital expenditures
financed through federal, state, and local government tax credits, grants and forgivable loans.
Based on this information,what portion of your total capital investment(identified in Question
#12)will be eligible for the investment tax credit?
$1,397,911
15. Please attach a long-term plan for the proposed housing development project including labor and
infrastructure needs.
The long-term plan for the proposed housing development includes providing affordable housing
and assisted living services to frail elderly persons in Waterloo with annual incomes equal to or
less than 60%of the AMI(including 22 units affordable to households with incomes equal to or
less than 40%of the AMI)for a minimum of 50 years.
The long-term labor needs for the proposed housing development include a site manager and a
maintenance person. Whitman Point LP will contract with a support service provider to provide
on-site services and staff on-site around the clock and a nutrition provider to provide at least two
meals a day on-site.
The infrastructure needs of the proposed development will be met before the project is complete.
16. What economic benefits will the project bring to the area?
The project involves the construction of a 55-unit multifamily project which adds to the tax base.
Efforts will be made to employ local subcontractors and suppliers and to purchase local goods
and services.
Whitman Point plans to contract with a local support service provider and a local nutrition
provider to provide on-site services and meals. These contracted services will increase revenue
for these partnering local providers
In addition,providing affordable housing for seniors and/or frail elderly allows them to spend
less on housing, thereby making a greater portion of their income available to spend on goods
and services in the community.
17. Explain why the proposed project would be considered a good housing development project.
The proposed project should be considered a good project for many reasons. It fills a need for
quality, attractive affordable housing for low income older persons and/or frail elderly. This is
evidenced in both the market study conducted in Waterloo, Iowa by Vogt Williams Bowen
Research of Columbus Ohio in December 2006 and the City of Waterloo goal calling to
`facilitate and promote the development of housing options to meet the needs of current and
future Waterloo citizens."
In addition to filling a need, the project location is suitable. The property is nestled between
retail commercial to the South and East, single family residential to the North and West, and
multifamily residential to the North and East. This places the property near essential services
offered by the nearby commercial areas while fitting into the existing neighborhood of
multifamily and single family residential. The land is currently undeveloped with development
surrounding all sides of the property. Because of this, the project will act as infill development
reducing noncontiguous development and sprawl.
The project involves new construction, which will add to the tax base of the community. In
addition, the neighborhood will benefit from the attractive landscaping and quality exterior
design.
The developer of this project will remain active in the project long-term. The property will be
managed and maintained in a professional and adept manner, which will ensure that the project
is an asset to the Waterloo community for years to come.
18. Please attach an affidavit that states the Housing Business has not,within the last five years,
violated state or federal environmental and worker safety statutes, rules, and regulations or, if
such violations have occurred,that there were mitigating circumstances or such violations did not
seriously affect public health or safety or the environment.
Please see Attachment C
19. Explain why Enterprise Zone Benefits are needed in order for the project to proceed.
Enterprise Zone Benefits are a necessary component of the total project funding. Enterprise
Zone Benefits will result in a capital contribution by an investor. The capital contribution and
the sales tax rebate will help keep the project affordable and the rents lower than would
otherwise be possible. There are no other sources of funding available that will generate the
same benefit to the low income tenants of the proposed senior housing project.
20. Please indicate the amount of Enterprise Zone tax benefits being requested for this project.
State Sales, Service, and Use Tax Refund: $40,000
Investment Tax Credit: $139,791
21. Please list any additional requirements adopted by the local Enterprise Zone Commission and
explain how the Housing Business will meet each requirement.
The local Enterprise Zone Commission has no additional requirements
ATTACHMENTS
Please make sure the following items are included with this application:
Housing Business:
❑ Legal description of the business site on which the project will occur.
❑ Detailed map(no larger than 8"x 14") showing the business site in relation to the boundaries of the
certified Enterprise Zone.
❑ Long term strategic plan,which includes labor and infrastructure needs.
❑ Affidavit that states the Business has not,within the last 5 years,violated state or federal
environmental and worker safety statutes, rules,and regulations.
Enterprise Zone Commission:
❑ Resolution by the Enterprise Zone Commission approving this application.
❑ Proof that the meeting, in which this application was approved, was open to the public (i.e. public
notice which was published and/or posted).
❑ Meeting minutes from the meeting, in which this application was approved.
Attachment A
Legal Description
Whitman Point Limited Partnership
LEGAL DESCRIPTION
All of Lot Five (5) in Fortune Addition,Waterloo, Black Hawk County, Iowa, and all of Lots Eight (8), Nine
(9), Seventeen (17), Eighteen (18), Nineteen (19),Twenty(20),Twenty-one (21), and Twenty-two (22) in
Richland Park, Waterloo, Black Hawk County, Iowa, and all of lots Sixteen (16), and Twenty-three (23)
and vacated Camelot Drive in said Richland Park, lying Westerly of a line which is parallel with and Forty-
five (45.00) feet normally distant from and Westerly of the East line and Southerly extension thereof, of
said Lot Sixteen (16).
Attachment B.1
Whitman Point
Affordable Assisted Living
Waterloo, Iowa
Site Map
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Whitman Point Limited Partnership
319 E Washington St. Ste. 111
PO Box 1226
Iowa City, IA 52244-1226
(319) 338-7600
Attachment B.2
Whitman Point
Affordable Assisted Living
Waterloo, Iowa
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Whitman Point Limited Partnership
31 c, E Washington St. Ste. 111
PO Box 1226
Iowa City, IA 52244-1226
(319) 338-7600
Attachment C
STATE OF IOWA
SS: AFFIDAVIT
COUTNY OF JOHNSON )
I, Robert P. Burns, having been duly sworn, do upon oath depose and state:
1. I am the manager of Sagamore Development, L.L.C., which is the general
partner of Whitman Point Limited Partnership.
2. Sagamore Development, L.L.C. is also the developer of the housing
development presently known as Whitman Point.
3. I state of my own personal knowledge that the developer of the housing
development known as Whitman Point and situated in Waterloo, Black
Hawk County, Iowa, has not within the last 5 years from the date of this
affidavit violated any state or federal environmental or worker-safety
statutes, rules and regulations.
Dated this 18th day of August, 2008.
•
Subscribed and sworn to before me by Robert P. Burns this 18th day of August,
2008.
Notary Public in and for
the State of Iowa
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