Loading...
HomeMy WebLinkAboutWATERFIELD PUD, FIRST FILING - FINAL - 7-95C - LEGAL DOCS - AFFORDABLE HOUSING MEMO.OCT-02-98 FRI 10:05 AM FAX NO. P. 08 Number of Townhomes Unit Mix: BULL RUN TOWNHOMES Project Fact Sheet 176 Maximum Maximum •r •Income "Num6erof '/oof •• Altovr66fe-;�;;�Utirtty MaximumySg6ara Type of dnit" ' PerUnit• r units Total wance Net Rent :•: Feat 60% of AMI 2 BR/26A $21,846 64 360/9 5695 $47 $648 1,100 3 BRl28A $32,191 62 35% $803 S55 $748 1,300 4 BR/2BA $35,924 t5 9% $896 $60 $036 1,350 Sub. 141 80% Total/Average 80% of AMI 2 BR12SA $22,250 16 9% 5568 $47 $532 1.100 3 8R/28A $26,826 16 9% $670 $56 $615 1,300 4 BR/28A $29,237 3 2% $747 $60 $687 1.350 Subi 35 20% Total/Avers OTAUAVERAGE;.i1.'�'"✓d;a'^kt..176'1100i00.76SL_�r:.v:c.�v�,:�'�•!`c•?.%i -'S633•d..'.i1,214:� • Projections assuming 2% increase over 1997 levels. Location: Northwest comer of the intersection of East Vine Drive and Summitview Drive in Fort Collins, Colorado. Land Area: 16.7 acres Project Density: 10,5 units per acre Common Amenities: Clubhouse containing 900 square foot community room Tot -Lot with playground equipment Sport Court Laundry Room Pool and sundeck Project Schedule: Final Site Plan Approval May, 1997 Construction Start September, 1997 Initial Unit Delivery May, 1998 Project Delivery December, 1998 OCT-02-98 FRI 10:04 AM 10/01 /1998 13: 21 3V -168164 FAX NO. BRISM N CO P. 07 PAGE 03 BULL RUN APARTMENTS LIMITED PARTNERSHIP 78M East Kemper Road Cincinnati, OH 45249 Mr. Michael Ludwig Current Planning Department 281 North College Avenue Fort Collins. CO 80521 RE: Waterfield PUD, Preliminary June 26, 1997 Bull Run Apartments Limited Partnership is the owner of the Bull Run Apartments. This project will contain 176 rental units which are to leased at affordable rental rates. Dickson Robin of the Advanced Planning Department approved Waterfield PUD for priority processing as a Qualified Affordable Housing Project on January 24. 1997 based upon the affordability of the Bull Run Apartments. The City of Fort Collins has secured a tax exempt bond allocation to develop the Bull Run Apartments as affordable housing. This financing includes a long term affordable compliance period enforced by deed restriction in the form of the Land Use Restriction Agreement (LURA) on the property. The LURA will specify that 80% of the units at Bull Run must be leased to residents making no more than W% of the Larimer County area median income and 20% of the units will be leased to residents making no more than 50% of the Larimer County area median income. Rental rates at the project are limited io 30% of each AMt classification so each tenant will pay no more than 30% of their income for rent. By definition, the project will be limited to the 80% of AMl limit as affordable housing in defined in the City of Fort Collins. Please let me know if you require additional information on the affordability of the Bull Run Apartments. Best Regards, THE W.O. BRISSEN C ANIES, Inc. General Partner /AW( << E. Scott McFadden Development Director, Western Region OCT-02-98 FRI 10:04 AM 10/01/1999 13:21 30?' ,8164 FAX NO. P. 06 BRISBFN CM PAGE 04 Mr. Michael Ludwig Current Planning Department 281 North College Avenue Fort Collins, CO 60521 RE: Waterfield PUD, Preliminary BnlsBEN CoNmx= 7600 EAZr Kemp 1 ROAD CINcimmi. Omo 45249 (913)AW9.1990 FAX (513) 489-2780 April 9. 1997 The Brisben Companies is the developer of the Bull Run Apartments component of the Waterfie)d PUD, which will consist of 176 rental apartments set aside as Affordable Dwelling Units. Dickson Robin of the Advanced Planning Department approved Waterfield PUD for priority processing as a Qualified Affordable Housing Project an January 24, 1997 based upon the affordability of the Bull Run Apartments. The City of Fort Collins has secured a tax exempt bond allocation to develop the Suit Run Apartments as affordable housing. This financing requires a long term arordable compliance period enforced by deed restriction in the form of the Land Use Restriction Agreement on the property. This document will be submitted to Dickson Robin for his review and approval in compliance with the City's policies and procedures for the monitoring of affordable housing projects. Please let me know if you require additional information at this preliminary stage. Best Regards, THE 8RISSEN CPANIES / J E- Scott McFadden Development Director, Western Region 2325 N. Nr. 33RD Sr.ssr FT. LAYOLRDAL2. FLORIDA 39909 . (30S) 730.0000 , PAX (20)) 739-7563 520 ZrctlATT Avenue NA4KVItLD. T1rKKC9Gii 37211 . (615) 631-3999 - FAX (615) 831-07os "go "Al" ScKOOL ROAD . 1"Im- PcMKavLVAMN 16046 . (4121 779-1140 . FAX (612) 779.9670 14% sot". Etm Brpar . DAvro". On.q 4%449 (9121 WOO-8766 FAX (5131 866-9482 2091 STOWV p4OOK UDM1e . LOulaw.. i. KDKTUCRv 40220 • (502) 499-1177 - PAX (502) 4"-6006 4101A Sw^xr ^man . Otvu. . C"RRWM- NORM CAROLIKA 36210 . (764) 723-41 LS . FAX (704) 923-4415 OCT-02-98 FRI 10:03 AM FAX NO. P. 05 Tax-exempt financing is a difficult process and requires financial strength and a fairly sophisticated management team. In tax-exempt private activity bonds, the City acts as the tax- exempt sponsor of the project subject to the public policy guidelines. In return for the lower cost (due to the fact that interest on the bonds are subject to federal or state income tax) the housing project meets the City's affordable housing guidelines. The guidelines require that the project provide reduced rate rents for a specified period of time. The project needs to demonstrate that it will generate sufficient money at the reduced rental rates to pay for the tax-exempt bonds. In order to meet all of these requirements, the project developers need to strike a balance between the future tenants ability to pay and the cost of the project. Usually, this means that tax- exempt financing only works for projects that are large enough to meet -certain economies of scale, yet not too large to be unmanageable. The process of getting an inducement from the City for tax-exempt bonds takes about eight weeks. The City's annual private activity bond allocation (about $2.5 million) is not enough to do a complete project. Applicants may seek additional allocation from the State. Securing additional issuing authority from the state also requires an application and six weeks to three months of time. Once all funding capacity for the project is in place, the bonds can be issued. The actual issuance of the bonds for the tax-exempt financing takes about three months. Projects also have to be coordinated with the land use and development procedures used by the City. While the City has adopted a policy that calls for quick processing of affordable housing projects, the process also takes several months of time. This is just a general discussion of the process, but one can see that there are many difficulties in doing affordable housing through the private activity bond financing process. Development companies have to have the ability to manage the processes and this means managing risk. City staff believes that the Brisben Companies have the financial strength and management capacity to complete the tax-exempt financing process. In the application process, staff reviewed Brisben's financial statements and track record in other communities. In reaching a positive recommendation on the Bull Run project, staff ascertained that the probabilities for success were better than any other multi -family project that has been reviewed. Should the members of the Planning and Zoning Board have any questions about this memo, please contact me, Alan Krcmarik, at the Finance Department number,.221-6788 or through the internet at akrcmarik@ci.fort-collins.co.us. City of Fort Collins MEMORANDUM DATE: May 12, 1997 TO: Members of the Planning and Zoning Board SROM11 Alan J. Krcmarik, Financial Officer rK�' 8VBJECT: Private Activity Bonds for Affordable Housing ACTION REQUESTED: None. This memo is intended for Board Members' information. If you have questions or comments, please send them along. SUMMARY; While there have been several projects that have sought to use the City's ability to provide tax-exempt private activity bond financing for affordable housing, none of the projects have yet been successfully completed. The Brisben Companies' Bull Run project has the financial strength and management capability to become the first affordable housing project to meet the city's affordable housing guidelines and actually complete a project using tax-exempt private activity bonds. BACKGROUND The availability and quality of affordable housing has been a policy concern of the City of Fort Collins for many years. In 1984, Council adopted Resolution 84-179 which established policy guidelines and criteria for the use of tax-exempt bond financing for affordable housing projects. Since the policy was adopted, several companies have approached the City with projects that met the adopted policies, yet none of the projects have been completed. Below is a listing of multi -family projects that we have on file that requested tax-exempt financing, but were not competed: Drake Landing Multi -family Project Foothills Apartments Project Courtney Park Rehabilitation Project Robinson-Piersol Multi -family project Stone Creek Apartments Oak Brook Apartments Rehabilitation Project These projects reached the stage of formal application to the City. Other projects intended to use tax-exempt financing, but did not reach the completed application stage. 300 LaPorte Avenue - P.O. Bogie 580 - Fort Collins, CO 80522-0580 - (970) 221-6788 • FAX (970) 221-6782 OCT-02-98 FRI 10:03 AM FAX NO. P. 04 Admin.,crative Services Finance Administration OCT-02-98 FRI 10:02 AM FAX NO. P. 03 10/01/1998 13:21 ? '968164 BRISBEN Co PAGE 02 Community Planning and Environmental Services Advance Planning Department January 10, 1997 Larry Ullenbcrger, ) xecutive Director . State of Colorado Department of Local Affairs 1313 Sherman Street Denver, CO 90203 Dear Sir: I am writing to express support from the City of Fort Collins for a proposed 176 townhome affordable housing project in Northeast Fort Collins called Bull Run. The developers of this project, the Brisben Companies, have met numerous times with City planning staff and appointed officials of the City to discuss the feasibility of the Bull Run project. Bain on these discussions, it was determined that the project is consistent with the City's affordable housing goals and objectives in addressing the housing rice& of a designated low income population. The City of Fort Collins Consolidated Plan identifies a need for additional affordable rental units for low income households in the 50% to 60% Area Median Income (AMI) range. This deuiand is further exacerbated by approximately 2000 low income households on the housing waiting list at the Fort Collins Housing Authority, In addition, with continued local economic growth in the traditionally lower paying retail and service sectors of the economy, the Bull Run project would provide much needed additional affordable housing opportunities in the City. In supporting the development of the Bull Run project, the City of Fort Collins has committed the support of several of our affordable housing programs. These include the Development Impact Fee Delay Program, the Development Impact Fee Rebate Program, Priority Development Processing for Affordable Housing, and plan application fee waivers. In particular, the Development Impact Fee Rebate Program could provide a rebate of impact fees of approximately s150,000. In addition, on January 7, 1997 the City Council formally adopted a resolution to support the Brisben, Companies Bull Run project in seeking bond financing from the State of Colorado. The particular site proposed for the Bull Rum project is also important to the City in terms of its location. The proposed project is past of a larger development that would include market rate single family housing, condominiums and affordable senior housing, as well as an elementary school and City Park. This is very important to the City in that the integration of housing types within one site or neighborhood is an integral part of both the City of Fort Collins Affordable Housing Policy and Comprehensive Plan. As indicated previously, the Brisben Companies proposed Bull Run affordable rental housing project would enhanrr. the City of Fort Collins in many ways. To help facilitate our goal to provide additional housing opportunities for low income residents. I request that the State of Colorado approve bond financing for the Bull Run project. If you have any questions please call me at (970) 221-6347. Sits4 Ak Dickson Robin City Planner -Affordable Housing 281 North College Avenue • P.O. Box SW • Fort Collins, CO 80522-0580 • (9n ZZi-6376 FAX (9M) 224-6111 • TDO (970) 224.6002 OCT-02-98 FRI 10:02 AM FAX NO. P. 02 ARTRUR E. MARCR, in. LUCIA A. LILEY J. ORADFORO MARC14 SUZAN 0. FRITCREL Mr. Mike Ludwig Current Planning Department City of Fort Collins 281 North College Avenue Fort Collins, Colorado RF: Bull Run Dear Mike: MARCH & LILEY, P.C. ATTORNEYS AND COUNSELORS AT LAW 110 E. OAK STREET FORT COLLINS. COLORADO DOE24.2980 (9701 482-4322 Fax 1970) 482-8719 October 2, 1998 ARTRUR C. MARCI I 1808.1981 VIA FAX TO 41 G-2020 I'm sending you the following documents regarding Bull Run's compliance with City affordable housing standards: (1) Letter from Dickson Robin to the State of Colorado affirming that the project is consistent with City requirements; (2) Memorandum from Alan Krcmarik to the Planning and 'Zoning Board regarding issuance of affordable housing bonds for the project by the City; (3) Letter from Scott McFadden to you addressing the affordable nature of Bull Run; and (4) Additional letter from Scott to you with more detail regarding the affordable units. As we discussed yesterday, all of the project details and its legal requirement to comply with City affordable housing criteria are found in the very lengthy bond documents on file with the City. Please let me know if you need anything further. As you know, we are really pushing to get all City approval s by next week in order to meet the tight timeframes prescribed as part of the bond issuance, Sincerely, MARCH & LILEY, Y.C. By: Ca )Aeiley LAL/glr Attachments cc: Scott McFadden OCT-02-98 FRI 10:02 AM FAX NO. P. 01 MARCH & LTLEY, P.C. 110 EAST OAK STREET, SUIT2 200 FORT COLLINS, CO 80524-2880 PHONE: (970) 482-4322 FAX: (970) 482-5719 FAX COVER SHEET TO: Mike Ludwig FROM: Lucia Liley FAX NO: 416-2020 CLIENT: Brisbcn/Bull Run DATE: October 2, 1998 TIME: 10:00 am FILE NO: TOTAL NUMBER OF PAGES INCLUDING THIS PAGE: 8 Please notify. Lorraine at (970) 482-4322 if all pages arc not received. MESSAGE: NOTE: THE INFORMATION CONTAINED IN THIS FACSIMILE MESSAGE IS ATTORNEY PRIVILEGED AND CONFIDENTIAI. INFORMATION INTENDED ONLY FOR THE USF, OF THE INDIVIDUAL OR ENTITY NAMED ABOVE. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR TIE EMPLOYEE OR AGENT RESPONSIBLE TO DF,LIVER IT TO THE, INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROIIIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE IMMEDIATELY NOTIFY US BY TELEPHONE AND RETURN THE ORIGINAL MESSAGE TO US AT TILE ABOVE ADDRESS VIA THE U.S. POSTAL SERVICE,.