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Mr. Fletcher replied that would depend upon the ultimate designation they use through HUD. He <br />noted that whether they choose 55 or 62 plus, the average age is over 70. <br />Member MacLennan asked for clarification on the mixed age buildings mentioned. <br />Mr. Fletcher clarified that the housing development itself would be a mixture of ages, split between <br />the different housing products on the site. He noted that the u-shaped building would be seniors <br />62 plus, the park homes would be for those 55 plus, and the y-shaped buildings would be market <br />rate apartments that would not be restricted in age. <br />Chairperson Wiyninger asked the occupancy rate of the company across their different <br />development projects that they manage. <br />Mr. Fletcher replied that it would depend on the product type. He stated that across all their product <br />types, the occupancy rate is about 92.5, while the senior housing is between 96 to 98 percent. He <br />stated that as a nonprofit provider, they attempt to target the middle -income range. He stated that <br />they work hard to control their expenditures in order to control rates. <br />Member MacLennan asked if a survey of the neighborhood has been done to gauge their opinion. <br />Mr. Fletcher replied that they have held two or three neighborhood meetings to date and the <br />feedback has been positive. He commented that a few neighbors to the south had concerns with <br />high density homes adjacent to their home and also did not want a park near their home. He <br />commented that concern has been addressed by placing the park homes in that area. He <br />commented that they have placed the high -density housing as far away as possible from the single- <br />family homes. <br />Chairperson Wiyninger commented that this would bring 460 new residential units and asked the <br />estimated number of residents that would be added through this development. <br />Mr. Fletcher replied that senior housing has an average occupancy rate of about 1.2 people per unit <br />while all age housing is closer to two or 2.5 people per unit. He estimated 600 to 700 people would <br />live in the development. <br />Jason Aarsvold, Ehlers, described the role of Ehlers in this process. He commented that the <br />property is currently exempt and explained how the base value and increment were calculated. He <br />stated that they completed an analysis to determine the assistance that would be needed in order <br />for this project to be viable and ensure that the assistance requested would not exceed the market <br />rate return on investment. He stated that the level of return is significantly less than what a market <br />rate developer would want to see and therefore the project does need assistance and meets the but <br />for test. He reviewed the proposed phased TIF assistance recommended over 20 years rather than <br />the 25 that was originally proposed. He stated that assistance would be provided through a "Pay <br />as you go note" from the City and provided details on that method of TIF financial assistance. He <br />noted that the developer has also agreed to a look back projection and provided details on that <br />clause and how it would provide the City with additional protection. <br />Economic Development Authority/ July 13, 2023 <br />Page 3 of 10 <br />