Agenda - Planning Commission - 06/04/2009

Home

CONCLUSIONS AND RECOMMENDATIONS median income - or 80 to 100 units. The recommended building should include underground . . . "parking available for an additional fee, and the following common area amenities: commu- nity/party room, media room, exercise room, management office, and individual storage lockers. . Also, tbis community could be built as one larger building, or as two or three smaller buildings. While we recommend a mixed-income bililding, in the event that the market rate demand is satis- fied by a new community developed elsewhere bya private developer, we recommend continu- ing with a strictly affordable community. This community should have a similar number of units and concept to that as shown in Table 29: Market Rate Senior Housing We recommend the development of an i:ddependent senior condominium or cooperative facility to. satisfy the demand for market rate independent senior housing. We find that the maj ority of younger, active seniors are preferring homeownersh1p over rental. Thus, we would not recom- mend an age-restricted market rate' senior rental building. Our recoIIlIPended concept for a sen- ior condominium or cooperativeis shown in Table 30, along with the unitmix, sizes and base pricing. It should be noted that for a cooperative -unit, buyers would pay a share cost equal to a portion of the base price (most likely olle-tbird) versus the full base price. ", Based on demand levels, we recommend a senior condominium or cooperative with 45 to 55 units in Ramsey. We recommend that the majority of units be one-bedroom plus den or larger, as most seniors willbe downsizing from a single-family home and prefer larger units fortheir possessions, as well as an extra bedroom. Based on the performance of other communities throughout the Metro Area, we recornniend base pricing from about $145,000 to $160,000 for one-bedroom units, to $180,000 to $225;000 for two-bedroom units. We do not recommend pricing much higher than this level, as rrl,ost seniors "WII be using the equity from the sale of an existing single-family home and will not want to take on a mortgage to finance the new condo- . minium/cooperative.' . tABLE 30 " SENIOR COOPERATIVE/CONDOMINIUM CITY OF RAMSEY Janna 2006 No. of Square Recommended Base Price/ Unit Type Units . Feet BasePricing*' Sq.Ft. lBR 5% - 5% 825 - 900 ' $145,000 - $160,000 $176 - $178 lBR+Den 10% - 15% 950 - 1,025 $160,000 - $180,000 $1@ - $176 2BR 80%' - 85% 1,075 - 1,275 $180,000 - $225,000 $167 - $176 - - Total 45 - 55 * For a cooperative, residents w01+1d pay a share cost that wqu1dbe portion of this market value - most likely 33%. i Note: recommended pricing is in 2006 dollars, and can be trended upward by 3.5% annually until opening. I Source: Maxfield R~search, Ine; 44 MAXFIELD RESEARCH INC. 60