Stanley Heights Senior Independent Living Overland Park, Kansas 1 Page
Table of Contents I. Executive Summary...3 Introduction... 3 The Development... 3 Overland Park Market... 4 Competition... 4 II. The Development Team...5 III. Financial Sources...6 Affordable Housing Tax Credits... 6 IV. Architecture...7 V. Sustainability...8 Sustainability Plan... 8 VI. Engineering...10 VII. Conceptual Site Plan...11 VIII. Design Elements...12 2 Page
I. Executive Summary Introduction Stanley Heights Senior Independent Living is to be located in the heart of Johnson County, Overland Park. Three different elements in the market have converged to make this the ideal time for this project to be developed. First, the Tax Credit Market has seen a sharp decline in investors, which in turn has made developments with the right team in the right location very attractive to Kansas Housing Resources Corporation (KHRC). Second, the recent bust in the financial markets has created a flight to quality and advantageous legislation, which increases the available credits for a single development. Third, the decline in the real estate market has caused decreased land prices and construction costs making it financial feasibility for a development of this type to work in Overland Park. In the past, it was financially unfeasible to build a property that meets the design standards of Overland Park. Even if it was possible to decrease the costs, KHRC was unwilling to allocate a large percentage of their credits to one development in Overland Park. Today, there are an increased number of credits available for any one development. Recognizing that the few tax credit investors in the market want high quality developers with quality locations, the State is potentially willing to make larger allocations to single projects. This is a quality development which will increase the foot traffic of services and along the 135th Street corridor. This increased demand for retail, office, and restaurants will help act as a catalyst for slowed current development and future developments in the area. Our tenants may have less total income. However, their reduced rent will give them disposable income for neighboring businesses. Many seniors in today s market spend a large percentage of their income/savings for their basic housing expense. The less fortunate of the Greatest Generation deserve to live in a great community like Overland Park near services, activities and family. The Development The development will consist of 120 units in two 55,000 square foot four story structures and a 4,000 square foot single story common area for amenities. Total development cost will exceed 18 million dollars. Sixty single bedroom one bathroom units with $790.00 to $1,100 monthly rents and sixty two bedroom one bathroom units with $950.00 to $1,300 monthly rents. The property will have indoor meeting space, several lounge and group meeting areas, reading nooks and a computer and technology room with internet access provided. The outdoor rain gardens and patios will allow tenants shaded areas to sit as well as planting gardens to raise small plants in. Walking trails on the site will also be available and well maintained. The project will create hundreds of construction jobs and five to ten new permanent positions. The total development cost is greater than $17 million dollars which ensure that the quality and feel of the property exceeds City design standards and improves the community. 3 Page
Overland Park Market1 Overland Park is a nationally recognized suburban community located in the center of flourishing Johnson County. Overland Park is the second largest city in Kansas, population 173,000. Overland Park has developed its own grand identity, image and reputation as one of the nation's most active corporate centers. Fortune 500 companies continue to relocate to the area. The city has received numerous national awards and citizen quality of life rankings including most notably a ranking in the Top 10 Best Places to Live in Money Magazine in 2008. Overland Park sits within the greater Kansas City MSA and its two million plus inhabitants. Overland Park provides all of the amenities and services of any first tier city anywhere in the country. With a growing population and a nationally recognized top tier education system, Overland Park is the ideal city for businesses looking for an educated workforce. This combination of a strong workforce and high quality of life adds up to a great place to live and do business. Overland Park is home to numerous top tier medical facilities. The market is well rounded with several industries, which have created a stable economic environment. The City has enjoyed constant and continued growth for decades. Competition The age and income restriction on the development makes this property unique to Overland Park. The development is not competing for the same resident that other senior projects in the area cater to. The tenants that will qualify to live in this development cannot typically afford the high cost of neighboring residential communities. The only other senior tax credit development that we are aware of in Johnson County is Gardens at Creekside in Olathe. That development is 100% leased. Monthly Fee Tallgrass Creek ($104,900 min. Entrance Deposit) Silvercrest at Deer Creek Grand Court 1 $1,309 - $2,427 $2,350 - $4,230 $1,795 - $3,495 Data provided by www.city-data.com 4 Page
II. The Development Team The ownership group has extensive experience in developing and operating elderly independent living facilities throughout the Midwest. Specifically, the project development team has the unique experience of: (1) acting as an attorney for developers in the tax credit syndication process; (2) acting as a developer of tax credit projects; (3) serving as the president of a property management company that managed his tax credit portfolio; and (4) acting as a state and federal syndicator of tax credit projects. While most people in the industry have experience in one narrow field (as a syndicator, developer, property manager, or attorney) the ownership group has extensive direct experience in every aspect of the business, providing a depth and breadth of experience that few in the industry can claim. The developer and owner are well capitalized and have long-term commitments to this and all of their developments. The ownership group currently owns over thirty similar real estate developments and has well over 50 years of combined experience in the market. 5 Page
III. Financial Sources Affordable Housing Tax Credits The Section 42 AHTC Tax Credit Program is a program for individuals, families, and senior making moderate or lower incomes. Congress created the Program in 1986 as part of the Tax Reform Act and it is administered by the Internal Revenue Service. BENEFITS FOR RESIDENTS The benefits for the residents of these properties with this financing structure, are that the apartments are newly constructed or substantially renovated to provide high quality housing at rents at or below comparable properties in the area. BENEFITS AND INCENTIVES TO OWNERS Owners are offered reductions in their tax liability in exchange for offering quality housing at these fixed rents. To receive these reductions, the owner(s) must annually certify that the residents are qualified under the program requirements. DIFFERENCES FROM OTHER HOUSING PROGRAMS This program is not a tenant subsidized housing program or Section 8 housing. All residents are responsible for the full amount of rent each month. The rental amount is not based on your individual household income, rather on the pre-set income limits in the area. Some apartments within a particular apartment community may not be part of this program. The rent for these apartments will often be higher. BACKGROUND ON AHTC The Affordable Housing Tax Credit (AHTC) is the most important resource for creating affordable housing in the United States today in introducing the revised national database that provides a comprehensive project-level look at AHTC production. The database, created by HUD and now available to the public, contains information on nearly 20,700 projects and more than 1,041,000 housing units placed in service between 1987 and 2001. The AHTC program was designed to stimulate development of affordable housing for persons of low to moderate income. The AHTC Program is a financing "vehicle" that is regulated by the IRS. Investors purchase tax credits from the project owner who has been allocated a specified number of tax credits by the state government. The purchase of these tax credits increases the owner's equity in a project. This in turn lowers the mortgage and financing costs, thereby resulting in the possibility of "affordable" rents for the resident. It is important to differentiate the tax credit program from the federal housing subsidy programs. The Section 42 tax credit program itself does not provide deep subsidy as does the Section 8 program and cannot be considered a housing program for households qualifying under the very low income guidelines of other federal programs. 6 Page
IV. Architecture Wallace Architects, LLC has over 30 years experience in design and construction administration of over 700 multifamily and senior housing developments. Many of these projects have received financing through the federal low income housing tax credit program, bond financing, MHDC, DCA, AHFA, IFA, Rural Development and HUD funding (202, 221.d.4,811, HAP.), or combinations of each. A recent project is the Overland Point Apartments in Overland Park, Kansas. Wallace Architects is presently the architect on apartment complexes in Missouri, Iowa, Kansas, Alabama, and Georgia. Kurt Wallace is licensed in 16 states and is able to obtain licenses through reciprocity. Our offices are located in Columbia, Missouri and Sedalia, Missouri. Kurt Wallace Full Member of Wallace Architects, LLC specializing in affordable housing since it s inception in January 1998. Project architect to supervise services and review progress throughout complex design and construction. EDUCATION 1976 Graduate of Oklahoma State with a BS in Architectural Studies. PROFESSIONALASSOCIATIONS Member Missouri Senior Housing Task Force Member NCARB File number 38775 Member Mid-Missouri Chapter of the American Institute of Architects EXPERIENCE Licensed in 16 states. His firm has completed over 119 apartment complexes (new construction and rehabilitation) in the last five years. Has been active in the architectural field specializing in apartment complexes for 30 years. 7 Page
V. Sustainability Though Econsultants LLC is new, the staff has over 30 years experience in design and construction administration of over 700 senior housing and multi-family developments. Many of these projects have received financing through the federal low income housing tax credit program, bond financing, MHDC, DCA, AHFA, IFA, Rural Development and HUD funding (202, 221.d.4,811, HAP.), or combinations of each. Sustainability Plan The following is a summary of the proposed actions by the Development Team to address the Sustainability of the project. The summary is divided into three stages: PreDevelopment, Development and Tenant Occupancy/Management Operations. Pre-Development The Architect shall develop the Construction Documents and Specifications to include, note and clarify proposed Sustainable Features as indicated in the application. The Architect shall work closely with the Contractor to verify the specified sustainable equipment and building materials to be included. The Contractor shall highlight to all Bidding Subcontractors those items that are proposed Sustainable Features on the Drawings and/or in the Specifications The Contractor shall evaluate the received Bids to verify the overall Project Costs include all Sustainable Features and are in line with proposed Project Costs provided with the Application. Development The Architects shall facilitate the Negotiation of a proposal between the Owner and the Third Party Consultant with an agreement to fees and services to be provided. The Architect shall facilitate obtaining a complete preliminary plan review by the Third Party Consultant for the selected Green Building Rating System. The Third Party Consultant shall develop a Designer's Report with the Owner and Architect to be used as a verification guide during construction. The Third Party Consultant shall assist with the Green Building Rating System registration process (as applicable). The Contractor shall provide and the Architect shall review Shop Drawings of materials and/or equipment related to proposed Sustainable Features to check for compliance. Regular interval Rough-in inspections shall be scheduled by the Third Party Consultant with the Owner, Architect and Contractor to verify inclusion/installation of proposed Sustainable Features as submitted in Shop Drawings. The Contractor shall notify Architect of Construction Schedule for development and/or each building in the development to facilitate inspection 8 Page
scheduling. Prior to Substantial Completion, the Contractor or their Subcontractors shall program any and all equipment related to the Sustainable Features to ensure the most sustainable and efficient operation prior to Tenant or Management Occupancy. Prior to Substantial Completion, the Contractor or their Subcontractors shall leave a copy of the Operations/Owner s manual for the HVAC Thermostat Control and the Kitchen Appliances At or near Substantial Completion, the Contractor shall provide an Operations and Maintenance Manual including materials and/or equipment specifically noted as Sustainable Features, with any and all applicable manufacturer s manuals or instructions. At or near Substantial Completion, the Third Party Consultant shall schedule with the Owner, Architect and Contractor to perform necessary testing to measure and show compliance with selected Green Building Rating system At or near Final Completion, the Third Party Consultant shall schedule with the Owner, Architect and Contractor to complete a final inspection in accordance with the selected Green Building Rating system. The Third Party Consultant shall document and retain relevant building information as required to be presented for selected Green Building Rating system Building Certification. Tenant Occupancy/Management Operations The Owner or Architect shall forward to Management a copy of the Operations and Maintenance Manuals provided by the Contractor. The Contractor shall review with the Owner and Management all information and/or instructions for all Sustainable Features. The Owner and/or Managements shall develop and provide a written manual highlighting the proper use/operation of: HVAC filters thermostat operation and programming lighting controls appliances and settings water heater settings fan controls The Owner and/or Management shall provide education overview of development/unit Sustainable Features to all new tenants. 9 Page
VI. Engineering Firm Profile2 Solving problems is a two-way process--our clients' perspective and challenges blend with our desire to share our expertise. We're serious about creating a collaborative environment--one in which we all work as equals to discover what works, what doesn't and what might. Above all, we value client relationships. Successful projects aren't just about staying within budget or meeting schedules--they're also about working with our clients in an environment that places a priority on relationships. In 2008, 84 percent of our work came from repeat business, so we must be doing something right. We understand the communities we serve. Olsson Associates carefully considers what matters most to the communities we serve because our work shapes the neighborhoods in which people live and do business. We pride ourselves on providing a unique blend of services that reflect the character and goals of our clients. We provide comprehensive solutions. Perspective is an interesting tool. By continually looking at challenges from new angles--new perspectives--we're able to find solutions that consider the impacts on surrounding areas. Because we understand the bigger picture, we're able to facilitate a process that creates a ripple-effect of success for everyone involved. We know what success looks like. We know what creates success. It's a blend of personal relationships with our clients, personal experience from living where we work and personal satisfaction with what we do. We've created a thriving environment where we blend these philosophies with technical expertise to create a sense of achievement for everyone involved. 2 Information from Olsson Associates website (www.oaconsulting.com) 10 P a g e
VII. Conceptual Site Plan 11 P a g e
VIII. Design Elements 12 P a g e