Agenda - Council - 06/26/2007 - Laserfiche WebLink

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CONCLUSIONS AND RECOMMENDATIONS more drawn to an age- restricted building, which is among the products recommended in this re- port. General Occupancy Rental There is an identified need for more market rate and affordable general occupancy rental units in Ramsey to serve workforce households. Our recommended rental concept is shown in Table 29, including unit mix, sizes and rents. The affordable units in Table 29 (restricted to households earning 50% to 60% of median income — or about $31,000 to $37,000 for two- person households) would satisfy need from many younger households in entry -level jobs in Ramsey and the surrounding area. Market rate units would also satisfy a portion of the demand from workforce households with incomes slightly too high to qualify for subsidized/affordable units. It should also be noted, however, that because of high land, material, and labor costs, the rents for a market rate building to be financially feasible may be too high for the community to even draw much of its target market — moderate- to aver - age- income younger households. Thus, to reduce development costs for the market rate units, we recommend a mixed- income rental building that includes both affordable and market rate units. As shown in Table 29, we recommend a mixed - income apartment building with 205 to 240 units. Sixty percent of the units (125 to 140 units) should be market rate, totaling 125 to 140 units. The remaining 40% of units should be affordable to households at a mix of those at 50% and 60% of —298— MAXFIELD RESEARCH INC. 59 TABLE 29 RECOMMENDED RENTAL HOUSING COMMUNITY CITY OF RAMSEY January 2006 AFFORDABI,E.UNITS,: AT SO °lo: TO 60* NViEDi N INCOME , Pct. of Square Affordable Rent/ Unit Type Units Feet Rate Sq. Ft. 1BR 30% - 35% 775 - 800 $675 - $700 $0.87 - $0.88 2BR 50% - 60% 1,025 - 1,075 $825 - $925 $0.80 - $0.86 3BR 10% -15% 1,250 - 1,325 $1,000 - $1,050 $0.80 - $0.79 Total 80 -100 1VIiRKETRATE'UIVITS' <' 1BR 35% -40% 800 - 825 $875 - $950 $1.09 - $1.15 2BR 45% - 55% 1,075 - 1,175 $1,150 - $1,300 $1.07 - $1.11 - 3BR- - 10 %- 15 % - - - -1 -;300- - -1- ,400 -- $1,400---- $1�500 - - - -- $1.08 - -- $1.07_ Total 125 - 140 Note: recommended rents are in 2006 dollars and can be trended upward by 2.5% annually until opening. Source: Maxfield Research, Inc. As shown in Table 29, we recommend a mixed - income apartment building with 205 to 240 units. Sixty percent of the units (125 to 140 units) should be market rate, totaling 125 to 140 units. The remaining 40% of units should be affordable to households at a mix of those at 50% and 60% of —298— MAXFIELD RESEARCH INC. 59