Downtown Housing Techniques for Growth
My last job didn t work out so well
The job before that? Not so much
Downtown Housing 710 Lofts Minneapolis
Downtown Housing Phoenix on the River Minneapolis
Downtown Housing 730 Lofts Minneapolis
Downtown Housing Third North Apartments, Minneapolis
Downtown Housing Marketplace Apartments, Edina, MN
Why Downtown Housing Downtown Vitality Customers Employees Pedestrian activity Crime: eyes on the street Commercial occupancies and rents
Why Downtown Housing Reduce Infrastructure Costs Recycle streets and public utilities Less sprawl Preserve open space
Why Downtown Housing Density is our Friend 1,020 300 300 1,020 1,140 300 300 1,140 1,020 300 300 1,020 Lots 8 Streets (recycled) 1,320 lineal feet units 120 household size 1.5 residents 180 acres (recycled) 2.97 Lots 72 Streets 8,160 lineal feet houses 72 Household size 2.5 Residents 180 Acres 29.9
Why Downtown Housing Proximity to existing services and amenities Public Safety Medical Care Shopping Parks
Why Downtown Housing Green Recycle streets and public utilities Walkability Leave the car in the garage Reduce Sprawl Recycle Land Recycle Buildings Reduced Carbon Footprint
(How to) Create Downtown Housing Challenges Ageing and Inferior Housing Stock
(How to) Create Downtown Housing Challenges: The housing industry needs to pick itself up
(How to) Create Downtown Housing Challenges Ageing and Inferior Commercial Building Inventory
(How to) Create Downtown Housing Challenges High Commercial Vacancies Lack of Jobs Lack of Retail Services
(How to) Create Downtown Housing Challenges Higher Development Costs Land is often more expensive Regulatory and permitting costs are often higher
(How to) Create Downtown Housing Challenges Limited Capital Capital markets still constrained but are improving ROC > 6.5% in major markets National and most regional players remain on the sidelines except for very select markets Lenders prefer experienced and liquid developers
(How to) Create Downtown Housing Challenges Limited Capital Lenders prefer experienced and liquid developers In order to qualify for a loan developers must prove to lenders that they positively and absolutely have no possible need for the money
(How to) Create Downtown Housing Catch-22 New downtown housing increases commercial activity Without commercial activity, there will be no new housing
(How to) Create Downtown Housing Is there a there there? Business and Institutional Base Banks Retailers Services and Necessities Dining and Nightlife Professional Services Government Offices Libraries Schools Churches Hospitals
Create Downtown Housing Is there a there there? Amenities Jobs Parks and Green Space Vitality Retail Dining and Nightlife Historic Building Inventory
Create Downtown Housing This is your Trump Card! Historic Building Inventory Main Street Ambiance
Create Downtown Housing Now What? Rehab, Preserve, Restore Adaptive reuse is a major competitive advantage Minneapolis Steel and Machinery Fargo, ND
Create Downtown Housing Now What? Rehab, Preserve, Restore Historic Preservation is expensive Federal Tax Credits Credit equal to 20% of eligible costs Renovation costs must exceed property basis Restoration must to be the Secretary of the Interior Standards Administered by the National Park Service
Create Downtown Housing Now What? Rehab, Preserve, Restore Historic Preservation is expensive Renaissance Zone Tax Credits Credit equal to 25% of eligible costs $250,000 limit RZTC not awarded until project completion
Create Downtown Housing Now What? Rehab, Preserve, Restore Historic Preservation is expensive Tax Increment Financing Remove Blight Demolition and Environmental Clean-up Site Costs such as Utilities, Parking and Landscaping
Create Downtown Housing Now What? Rehab, Preserve, Restore Business Improvement District (BID) Assess Property Owners who benefit from a BID on a sliding scale based on proximity to or benefit from improvements financed by BID USA has over 1,000 BIDs; Wisconsin has 90, 65 of which are in smaller towns Purposes Parks Parking Lighting, Safety and Security Marketing and Economic Development
Create Downtown Housing Princeton Offers $20K Prizes to Lure Downtown Businesses Princeton hopes that an entrepreneurial contest will attract new businesses and strengthen its downtown economy. October 16, 2012 In an effort to revitalize its downtown, a small Minnesota city is offering incentive packages worth nearly $20,000 each to up to three businesses, which are expected to open in the city by September 2013. Photo courtesy of the City of Princeton Twin Cities Business
Create Downtown Housing Now What? Level the Playing Field Assess True Cost of Suburban Development Impact Fees Roadway Assessments Park Dedication Fees Urban Development Credits for Reusing Existing City Infrastructure Permit Fee Waivers Environmental Clean-up Grants Density Bonuses Off-street Parking Variances
Create Downtown Housing Now What? That Old Real Estate Axiom: Location, Location, Location Amenities, Amenities, Amenities Grow Downtown Businesses Urban Renewal Incentives Tax Increment Financing Renaissance Zone Incentives Strengthen Transit Options Investment in Park Improvements Invest in Your History
Create Downtown Housing Now What? Now let s talk little a amenities Give the consumer what it wants: Wi-fi Tech savvy Over Sized Community Spaces Lobby Community or Party Room Coffee Bars Fitness Center Green Space Smaller Units (put your money in community spaces) Modern Finishes Granite Countertops Stainless Steel Appliances
Our Bakken Story Pursuing a 144-unit development site Land price per unit exceeds land prices in downtown Minneapolis Four to five months to get title work Four months for appraisals Most provide (import) 100% of worker housing ($250,000) Most import most workers Difficulty in finding architects and engineers who can deliver plans on time North Dakota banks have shown very limited interest in providing financing they remember the last time Banks that are interested require 10 to 12 year pay-back and cash flow sweep vs. 25 to 30 year amortization in Minneapolis
Create Downtown Housing Questions?