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

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VnNC T,TTCTnNS 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, this community could be built as one larger building, or as two or three smaller buildings. While we recommend a mixed - income building, in the event that the market rate demand is satis- fied by a new community developed elsewhere by a 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 independent senior condominium or cooperative facility to satisfy the demand for market rate independent senior housing. We find that the majority of younger, active seniors are preferring homeownership over rental. Thus, we would not recom- mend an age - restricted market rate senior rental building. Our recommended concept for a sen- ior condominium or cooperative is shown in Table 30, along with the unit mix, 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 one - third) 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 will be downsizing from a single - family home and prefer larger units for their possessions, as well as an extra bedroom. Based on the performance of other communities throughout the Metro Area, we recommend 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 most seniors will 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 _. January 2006 No. of Square Recommended Base Price/ Unit Type Units Feet Base Pricing* Sq. Ft. 1BR 5% - 5% 825 - 900 $145,000 - $160,000 $176 - $178 1BR +Den 10% -15% 950 - 1,025 $160,000 - $180,000 $168 - $176 2BR 80% - 85% 1,075 - 1,275 $180,000 - $225,000 $167 - $176 Total 45 - 55 * For a cooperative, residents would pay a share cost that would be portion of this market value - most likely 33 %. Note: recommended pricing is in 2006 dollars, and can be trended upward by 3.5% annually until opening. Source: Maxfield Research, Inc. MAXFIELD RESEARCH INC. 60 —299—