HomeMy WebLinkAbout2015 03-23 EDAPEDAMEETING
. City of Brooklyn Center
March 23, 2015
1. Call to Order
AGENDA
-The EDA requests that attendees tum off cell phones and pagers during the meeting. A
copy ofthe full City Council packet, including EDA (Economic Development Authority),
is available to the public. The packet ring binder is located at the front of the Council
Chambers by the Secretary.
2. Roll Call
3. Approval of Agenda and Consent Agenda
-The following items are considered to be routine by the Economic Development
Authority (EDA) and will be enacted by one motion. There will be no separate
discussion of these items unless a Commissioner so requests, in which event the item will
be removed ·from the consent agenda and considered at the end of Commission
Consideration Items.
a. Approval of Minutes
1. March 9, 2015-Regular Session
4. Commission Consideration Items
a. Resolution Approving a Letter of Intent to Purchase with SCA Properties, LLC
Regarding 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard, and 6101
Brooklyn Boulevard
Requested Commission Action:
· -Motion to adopt resolution.
5. Adjournment
EDA Agenda Item No. 3a
MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
MARCH 9, 2015
CITY HALL-COUNCIL CHAMBERS
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President Tim Willson at 7:50p.m.
2. ROLLCALL
President Tim Willson and Commissioners April Graves, Kris Lawrence-Anderson, and Lin
Myszkowski. Commissioner Dan Ryan was absent and excused. Also present were Executive
Director Curt Boganey, Public Works Director/City Engineer Steve Lillehaug, Director of
Business and Development Gary Eitel, Assistant City Manager/Director of Building and
Community Standards Vickie Schleuning, City Attorney Doug Shaftel and Brittney Berndt,
TimeSaver Off Site Secretarial, Inc.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Myszkowski moved and Commissioner Lawrence-Anderson seconded approval
of the Agenda and Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. February 23, 2015-Regular Session
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION NO. 2015-04 APPROVING AND AUTHORIZING THE
EXECUTION OF SUB-GRANT AGREEMENTS FOR ENVIRONMENTAL
CLEANUP OF THE HOWE SITE
Executive Director Cmi Boganey introduced the item, discussed the history, and stated the
purpose of the proposed resolution, which is to use two grants and a match by the developer. He
explained that this has been a long project but after this final step he is hopeful that the developer
can stmi building on the site.
03/09115 -1-DRAFT
President Willson thanked the staff including Director of Business and Development Gary Eitel
for their hard work and dedication to this project and expressed his excitement that this site could
be used for new development in the near future.
Commissioner Lawrence-Anderson moved and Commissioner Myszkowski seconded to adopt
RESOLUTION NO. 2015-04 Approving and Authorizing the Execution of Sub-Grant
Agreements for Environmental Cleanup for the Howe Site.
Motion passed unanimously.
4b. RESOLUTION NO. 2015-05 DESIGNATING BUILDINGS AS STRUCTURALLY
SUBSTANDARD AT THE OPPORTUNITY SITE
Mr. Eitel introduced the item, discussed the history, and stated the purpose of the proposed
resolution.
Commissioner Graves said she was pleased that there was already interest in this site. President
Willson reminded everyone that details of such interest were strictly confidential at this point in
time. Mr. Boganey explained that the details are confidential but the Planning Commission had
a concept for this area of residential buildings with limited retail space.
Commissioner Myszkowski moved and Commissioner Lawrence-Anderson seconded to adopt
RESOLUTION NO. 2015-05 Designating Buildings as Structurally Substandard at the
Oppmiunity Site.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Lawrence-Anderson moved and Commissioner Graves seconded adjournment of
the Economic Development Authority meeting at 8:08p.m.
Motion passed unanimously.
03/09115 -2-DRAFT
EDA Agenda Item No. 4a
EDA ITEM MEMORANDUM
DATE: March 23,2015
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business & Development ~C?(_ ·
SUBJECT: Resolution Approving a Letter oflntent to Purchase with SCA Properties,
LLC Regarding 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard, and
6101 Brooklyn Boulevard ..
Recommendation:
It is recommended that the Economic Development Authority consider approval/adoption of a
Resolution Approving a Letter of Intent to Purchase with SCA Properties, LLC Regarding 6121
Brooklyn Boulevard, 6107 Brooklyn Boulevard, and 6101 Brooklyn Boulevard.
Background:
On March 9, 2015, the City Council/EDA Work Session included a discussion on the potential
sales and redevelopment of approximately 5.5 acres of EDA owned properties located at 6121,
6107, and 6101 Brooklyn Boulevard for an affordable assisted care senior apartment
development consisting of the following:
A four story apartment building with 140 one bedroom senior assisted care units and
A one story building with 24 studio units offering specialized assisted care for seniors
The City Council/EDA reviewed a conceptual plan overlaid on an aerial photograph of the site
and a nanative provided by SCA Properties and Evergreen Real Estate Development
Corporation describing their plans to develop and operate an affordable assisted senior housing
project using Low Income Housing Tax Credits and Medicaid Elderly Waiver reimbursements ..
The consensus of the City Council/EDA was to find that the conceptual development illustrated
by SCA Properties was consistent with the EDA's development vision for this site and that Staff
was directed to proceed with negotiating a Letter of Intent with SCA Properties for the
development of an affordable assisted care senior housing project.
Attached for your reference is a copy of the staff memorandum presented at that March 9, 2015
Work Session.
Letter of Intent and Exclusive Negotiating Agreement:
The Letter of Intent identifies the proposed senior housing project, provides a purchase price of
$1,763,398 (the EDA's acquisition cost of the 3 properties) that is proposed to be paid from tax
increment revenue generated from the proposed development, and includes the following
schedule:
Mission: Ensuring an attmctive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
EDA ITEM MEMORANDUM
Exclusive Negotiating Period and Negotiations of Contract of Sale, a period of 90 days during
which a detailed Contract of Sale is negotiated and executed. During this time the EDA agrees to
refrain from and discontinue any existing marketing or negotiations with others concerning the
sale ofthe Property. (March-June)
Feasibility Period commences upon execution of the Contract of Sale and provides the
Developer with 120 days to investigate the feasibility of developing the Property, such as
environmental studies and soil tests and undertaking studies to determine the feasibility of the
project such as obtaining the necessary financing and development approvals. (June-October)
Settlement Period occurs within 180 days from the date the Purchaser/Developer is in receipt of
the necessary approvals and financing commitments to begin construction, but not later than 15
months after the execution of the Contract of Sale. (June, 2015-Sept, 2016).
The Letter oflntent identified two contingencies relating to the EDA's sale of the property:
1. Approval by the Seller/EDA of the sale of the Property after a public hearing in
accordance with the applicable law.
2. The creation of a tax increment financing district pursuant to Minnesota Statutes.
Budget Issues:
These EDA properties were acquired with funds from the existing TIF 3 Housing Account.
Additionally, TIF District 3 is providing the funds for the demolition of the site and the planned
boulevard restoration improvements, as identified in the Brooklyn Boulevard Corridor Study.
The creation of a new Tax Increment Housing District seeks to accomplish the following:
1. Reimbursement of the TIF 3 Housing Account to enable the EDA to invest in future
affordable housing projects and other eligible housing activities.
2. Provide funds for the future acquisition of the two adjacent single family residences
on 61 st A venue at such time as these property owners decide to sell.
3. Provide a budget for enhancements to this project should additional Tax Increment
become available.
The Developer is structuring the financing of this Senior Housing Development with the use of
Low Income Housing Tax Credits and has referenced a similar project that they are currently
pursuing in West St. Paul.
However, the West St. Paul project is located within a HUD Qualified Census Tract that
provides additional tax credits that have a value of approximately of $2,000,000.
During the Negotiations and Feasibility Periods the Developer and Staff will be considering
options to bridge this financial gap.
Strategic Priorities:
• Focused Redevelopment
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people autl preserves the public tmst
Commissioner
and moved its adoption:
introduced the following resolution
EDA RESOLUTION NO. ____ _
RESOLUTION APPROVING A
LETTER OF INTENT TO PURCHASE WITH SCA PROPERTIES, LLC
REGARDING 6121 BROOKLYN BOULEVARD, 6107 BROOKLYN
BOULEVARD AND 6101 BROOKLYN BOULEVARD
WHEREAS, SCA Properties, LLC (the "Developer") has proposed to purchase from the
Economic Development Authority of Brooklyn Center, Minnesota (the "EDA''), 3 parcels of
land located at 6121 Brooklyn Boulevard, 6107 Brooklyn Boulevard and 6101 Brooklyn
Boulevard in the City of Brooklyn Center, Minnesota (":Property") for the purpose of
constructing and operating thereon an approximately 164-unit senior assisted living facility
consisting of a 4-story wing with 140 one bedroom units and 1-story wing with 24 studio
apartment units offering specialized care services (the "Project").
WHEREAS, in connection with the proposed purchase of the Property, the Developer has
requested that the EDA enter into a Letter of Intent to Purchase (the "LOI") and the EDA has
caused a form of the LOI to prepared for consideration by the Board of Commissioners of the
EDA (the "Board"); and
WHEREAS, the LOI reflects that it is subject to a definitive purchase agreement between
the Developer and the EDA and that sale of the Property is subject to approval by the Board after
a public hearing in accordance with applicable law.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and
for the City of Brooklyn Center as follows:
1. The LOI as presented to the Board is hereby in all respects approved, in substantially
the form submitted, and the President and the Executive Director are hereby authorized and directed
to execute the LOI on behalf of the EDA and to carry out, on behalf of the EDA, the EDA's
obligations thereunder.
2. The approval hereby given to the LOI includes approval of such additional details
therein as may be necessary and appropriate and such modifications thereof, deletions therefrom
and additions thereto as may be necessary and appropriate and approved by legal counsel to the
EDA and by the officers authorized herein to execute said documents prior to their execution; and
said officers are hereby authorized to approve said changes on behalf of the ED A. The execution of
any instrument by the appropriate officers of the EDA herein authorized shall be conclusive
evidence of the approval of such document in accordance with the terms hereof. In the event of
absence or disability of the officers, any of the documents authorized by this Resolution to be
executed may be executed without further act or authorization of the Board by any duly designated
acting official, or by such other officer or officers of the Board as, in the opinion of the City
Attorney, may act in their behalf.
March 23 2015
Date President
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
SCA Properties, LLC
4099 Tamiami Trail North
Suite 200
Naples, Florida 34103
LETTER OF INTENT TO PURCHASE
This letter is intended to outline the general terms upon which SCA Properties, LLC or its
affiliated Assignee (the "Purchaser") would propose to purchase those certain parcels of land
described below from the Economic Development Authority of Brooklyn Center, Minnesota (the
"Seller"), subject to the following terms and conditions:
1. Property -The Purchaser intends to buy from the Seller 3 parcels of land located
at 6121 Brooldyn Boulevard, 6107 Brooklyn Boulevard and 6101 Brooklyn Boulevard in the
City of Brooklyn Center, Minnesota ("Property"). The combined parcels are approximately 5
gross acres in size and are currently zoned commercial and commercial PUD. The Purchaser
represents that it is proposing to acquire the Property for the purpose of constructing and
operating thereon an approximately 164-unit senior assisted living facility consisting of a 4-story
wing with 140 one bedroom units and 1-story wing with 24 studio apartment units offering
specialized care services.
2. Purchase Price-$1,763,398.00. The Purchase Price will be paid at Settlement by
payment of $1.00 and the delivery of a promissory note (the "Purchase Price Note") payable
from tax increment revenues generated by the Property, to the extent approved by the Seller and
the City of Brooklyn Center, Minnesota in accordance with applicable law, and secured in
accordance with terms to be determined by the Seller and the Purchaser.
3. Feasibility Period-This period will commence upon full execution of a Contract
of Sale and will terminate one hundred twenty (120) days thereafter. During this period, the
Purchaser shall investigate the feasibility of developing the Property as described including, but
not limited to, performing tests such as environmental studies, soil tests, etc., and undertaking
other studies to determine the feasibility of development such as exploring the likelihood of
obtaining the necessary fmancing and/or development, planning and zoning approvals.
4. Settlement -Settlement shall occur within one hundred eighty (180) days from the
time Purchaser is in receipt of the necessary approvals and financing commitments to begin
construction but not later than fifteen (15) months after execution of the Contract of Sale.
5. Settlement and Other Costs -The cost of transfer and recordation taxes shall be
paid by the Purchaser. All other costs of settlement shall also be paid by the Purchaser, except
that costs such as property taxes and assessments, that are typically prorated, will be prorated
between Purchaser and Seller. ,
~
6. Title -At closing, the Seller shall deliver to the Purchaser its fee simple interest in
the Property, subject only to such permitted exceptions as Purchaser's counsel shall approve or
which are specified in the Contract of Sale. The Purchaser, at its own expense, will obtain an
456434v5 SJS BR291-353
owner's form ALTA Title Insurance Policy, insuring the purchasing entity's fee simple interest
in the Land.
7. Documentation -Within seven (7) days of signing the Letter of Intent, the Seller
will give the Purchaser copies of any relevant material in its possession relating to the Property,
including but not limited to title reports, soils reports, environmental studies, engineering studies
and agreements with governmental authorities.
8. Right of Entry -With 24 hours prior notice, the Purchaser at its own expense and
with no liability to the Seller will have the right of entry onto the Property to conduct
architectural, engineering and other tests, survey and studies. Purchaser shall restore the
Property to its previous condition at the conclusion of any test. Purchaser agrees to indemnify
Seller against any liens, claims, losses or damage occasioned by Purchaser's exercise of its right
to enter and work upon the Property~ Purchaser agrees to provide Seller with a copy of any
report prepared as a result of such examination or test, upon request by Seller.
9. Brokerage Commissions -Purchaser and Seller agree that the only real estate
broker involved in this transaction is Minnesota Brokerage Group whose agent is Jefferson
Patterson who represents the Purchaser. Purchaser shall be responsible for paying brokers any
and all commissions due.
10. Exclusive Negotiating Period -Upon execution of this Letter of Intent by all
parties, Seller grants to Purchaser an Exclusive Negotiating Period of ninety (90) days to
conclude a Contract of Sale. Seller and its agents shall refrain from and discontinue any existing
marketing or negotiations with others concerning the sale of the Property unless· otherwise
approved by the Purchaser in writing.
11. ContraCt of Sale -The major provisions of the Contract of Sale are contained
within this Letter. Purchaser and Seller agree that a detailed Contract of Sale will be negotiated
and executed within ninety (90) days of the signing of this Letter of Intent.
12. Assignability-This Letter and the Contract is fully assignable to a partnership or
LLC whose general partners or managing member will include the Purchaser.
13. Contingencies -The parties understand that the sale of the Property is
conditioned, among other things, upon (i) approval by the Seller of the sale of the Property after
a public hearing in accordance with applicable law and (ii) the creation of a tax increment
financing district pursuant to Minnesota Statutes, Sections 469.174 to 469.1794 for the Property
after a public hearing in accordance with applicable law. The parties will negotiate towards a
definitive tax increment financing development agreement setting forth the terms and conditions
of tax increment fmancing assistance to be provided to the Purchaser. The Purchaser will
cooperate with the Seller's review and analysis of providing tax increment financing assistance
and will provide to the Seller all documents and information requested by the Seller m
connection with that effort.
14. Expiration -This Letter of Intent will be withdrawn if not executed by the close of
business on March 25, 2015.
456434v5 SJS BR291-353
Upon execution of this non-binding Letter of Intent, the parties will endeavor to negotiate in
good faith and execute a fonnal Contract of Sale and tax increment financing development
agreement containing customary terms and conditions. Until such time, however, except as
specifically provided above, nothing contained in this Letter of Intent shall be binding on or
enforceable by either party.
Agreed, understood and accepted this /J-day of /lbf! a/z' 2015.
PURCHASER:
SCAPro#/~
By: Garrett G. Carlson, Sr
Title: Manager
456434v5 SJS BR291-353
SELLER:
Economic Development Authority of the City of
Brooldyn Center, Minnesota
By:
Title: President
By:
Title: Executive Director
MEMORANDUM-COUNCIL WORK SESSION
DATE: March 9, 2015
TO: Curt Boganey, City Manager
FROM: Gary Eitel, Director of Business & Development /-fl-'
SUBJECT: Discussion on Potential Sales and Development of Economic Development
Authority (EDA) Properties within the Brooklyn Boulevard Corridor (6101, 6107,
and 6121 Brooklyn Boulevard
Recommendation:
It is recommended that the EDA consider providing direction to staff regarding the potential
sales and redevelopment of 6121, 6107, and 6101 Brooklyn Boulevard as an affordable assisted
care senior apartment development.
Background:
The real estate agent representing SCA Properties, LLC, contacted Told Development, the
. developer that was marketing the redevelopment of the EDA's 5ih and Logan Site, regarding the
possibilities of providing a 4-5 acre site for a senior housing project.
Upon examination of this site, SCA Properties, LLC determined that the triangular configuration
of the property and the location of the Excel Energy transmission line were restricting factors
that disqualified the 5ih & Logan Site.as a potential site.
Continued discussions relating to developer's site search criteria lead to an alternative location
being suggested for the developer's consideration.
The EDA properties along Brooklyn Boulevard comprise approximately 5.5 acres between 61 st
Ave. and Ewing Ave. This site, which included the former Cars with Heart auto dealership, had
been identified during the Brooklyn Boulevard Corridor Study as a preferred land use for senior
housing opportunities. The developer's review of the location and configuration of this area,
resulted in the developer providing the attached sketch which illustrates the construction of a
four story apartment building providing 140 one bedroom senior assisted care units and a one
story building providing 24 studio units offering specialized assisted care for seniors ..
Attached are the following items to assist in your consideration of this potential senior housing
project:
A narrative provided by the SCA properties and Evergreen Real Estate Development
Corporation on their plans to develop and operated an affordable assisted senior project
using Low Income Housing Tax Credits and Medicaid Elderly Waiver reimbursements.
A copy of their preliminary market report
A sketch illustrating their initial development concept overlaid on an aerial photo of this
area.
Mission: Ensuring an attractive, clean, safe, inclusive community that enhances the quality of life
for all people and preserves the public trust
MEMORANDUM-COUNCIL WORK SESSION
Alternate sketches prepared by the project architect relating to expanding the surface
parking lot and removing the underground parking as a cost saving measure ..
A building elevation illustrating the architectural features of the 4 story apartment
building.
Additionally, the following site related items have been provided:
This portion of the Brooklyn Boulevard Corridor Study,
A senior housing project located along France Ave. in Edina that was considered by the
Planning Commission in their recommendation of a preferred land use.
A Yz section map illustrating the properties located between 61 stAve. and Ewing Ave.
Policy Issues:
Does the EDA believe the conceptual development illustrated by SCA Properties is consistent
with the EDA' s development vision for this site?
Does the EDA wish to proceed with negotiating a Letter of.Intent with SCA Properties for the
development of an affordable assisted care senior housing project?
Strategic Priorities:
• Focused Redevelopment
Mission: Ensuring an attractive, clean, safe, inclusive com1111111ity thatenlwnces the quality of life
for all people and preserves the public trust
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Address: Ec lina , MI'J 55435
Property .Apartnv2.nt Type:
Home-Non-Homestead stead:
Parcel 4.1E:. acres
Area: 182,154 sq ft
A-T-B:
Market
Total:
Tax
Total:
Sale
Pr ice:
Sale
Date:
Sale
Code:
Torrens
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$126 ,218 .06
(Payable: 2014)
$'L400,000
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BROOKLYN CENTER AFFORDABLE ASSISTED LIVING PROJECT DESCRIPTION
SCA Properties LLC and Evergreen Real Estate Development Corporation propose the
development of The Sanctuary at Brooklyn Center, a 164 unit affordable assisted living
community to be built on approximately 5 acres ofland in Brooklyn Center, Minnesota. The
property is located on Brooklyn Blvd at the intersection of 62nd Ave N. This high traffic location
is perfect for this type of project because it provides visibility and easy access to the community
the property will serve.
Affordable assisted living uses Low Income Housing Tax Credits (LIHTC) to help fmance the
building and Medicaid Elderly Waiver reimbursements through the Minnesota Department of
Human Services to fund needed services. It is designed to serve income-eligible individuals who
need help with a host of Activities of Daily Living (ADL) and can no longer live on their own.
The maximum income currently allowed under the LIHTC program for the Twin Cities
metropolitan area for a single individual is $34,850. The current maximum income for the
Medicaid Waiver program is about $26,500. The Waiver program also has an asset cap so some
individuals may come in and "spend down" to the asset cap before being eligible for services
reimbursement.
The market area for this location contains a significant number of people that are in need of
assisted living services yet do not have sufficient incomes to afford to move to a market rate
community: A market snapshot of the area, which follows this description, shows that the area
preliminarily delineated as the market contains over 8,200 people over the age of75 and over
2,300 households with at least one individual 75 years of age or older with a household income
less than $25,000 (40% ofhouseholds over age 75). Further, the area contains 6,160 individuals
over the age of 65 with at least one disability including ambulatory, self care, independent living,
hearing, vision or cognitive difficulties (37.5% of the population over the age of 65). Detailed
information on this is included in the report.
The property will consist of a main four story L-shaped building with 140 one-bedroom units and
significant common areas. The one-bedroom units would be approximately 585 square feet in
size. Common areas would include a commercialldtchen, dining room, activity rooms, exercise
center, beauty parlor, offices, facilities for bathing and assistance with other ADL's, nursing
stations and medical examination rooms. Adjacent to the main building and connected by a
walkway in order to share staff and some common facilities would be a one story building
consisting of 24 studio units for higher acuity residents needing more specialized services. The
studio units would be approximately 480 square feet in size. Each unit will have a residential
feel and will include a small kitchen with cupboards, a small refrigerator and a microwave. All
units will be fully handicap accessible. All utilities except telephone will be included in the rent.
The financing described below will allow the building design and materials, the interior
amenities and finishes and the grounds to be indistinguishable from a market rate property.
A site location map, concept site plan and preliminary building rendering follow this description.
The development team is made up of SCA Properties LLC and Evergreen Real Estate
Development Corporation. The individuals at SCA include Gary Carlson, Sr. and Andy Aulde.
Mr. Carlson is a native of Minneapolis and founded www.scapropertiesllc.com. Many ofthe
properties listed on this website developed by him or those that worked for him are in Minnesota
or are housing for lower income seniors. Mr. Aulde has worked in the fields of affordable
housing, senior's housing and assisted living for almost 30 years, most notably with the firm, The
Shelter Group based in Baltimore. Greg McClenahan is the founder and President of
www.evergreenredc.com, based in Prior Lake, MN. His firm has developed a number ofLIHTC
properties in Minnesota and six affordable assisted living properties in Iowa, which are similar in
nature, but were financed somewhat differently than what is proposed here.
Once the property is constructed, the property will retain either www.bma-mgmt.com or
www.pathwaysl.com to operate and manage the property and provide the services. Both of these
companies manage large numbers of affordable assisted living properties in Illinois, Indiana and
other states where the LIHTC with Medicaid Waiver model has been used for many years and are
considered the premiere management companies for this type of property.
We are pursuing a number of projects in Minnesota including one in West St Paul that serves as
our prototype with respect to market, design and financing. As mentioned, properties of this
nature are in part financed using low income housing tax credits. Tax credit allocations provide
for a 30% boost if the site is located in a HUD designated Qualified Census Tract" (QCT). This
provides 30% more equity available to finance the project. Our project in West St Paul is
significantly helped by the fact that it is located within a QCT. Unfortunately, the site in
Brooklyn Center is not in a QCT. Therefore, to help compensate for the difference, we are
requesting the City's participation in the project in the form of establishing a Tax Increment
Financing (TIF) district and financing the cost of the land. -
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R E t\L P R OPERTY RESEARCH GRO UP
WASHINGTON/BALTIMORE l!l ATLANTA
Memoran(d um
To: Gary Carls on, SCA Properties
From: Bob Lefenfel d
Date: 1/9/2015
Re: Brooklyn Ce nter Assisted Liv i ng Demogr aphi c Data
As you requ est ed, attached is statis ti cal in forma ti on for the site located at 6000-6100
Brooklyn Boulevard in Brooklyn Center, MN. For th e site, we have defined a market area
and compiled d em ographic in formation, compar ing m arket data to data on the co un ty in
w hi ch the s ite resides. Information compiled incl ud es :
o A Market Area Map (Map 1).
o Ma r ket Area Map with 3,5&7 Mile Radius (Map 2)
o Market Area Summary (Tabl e 1).
o Population and Household projections based on ESRI projections (Table 2).
o 2015 Age Distribution (Table 3).
o Senior Househ old Tr en ds (Table 4).
o 2015 Househo ld Income (Table 5).
o 2015 Income by Age of House h older (Table 6).
o Income for Households 75 and Ol der (Table 7).
o 2013 Net Worth (Table 8) .
., 2013 Net Worth by Age of Househol d er (Table 9).
• Persons 65 and Older with Disabi li ty (Table I 0).
Table I su m marizes stat istical i ndicators of this market. We also co mputed two ratios to
u n d erstand the capture rate for a 100 unit community:
o A ratio based on 75+ households w ith incomes below $25,000 and one disability,
o A ratio based on 75+ h ouseholds with in co m es below $25,000 applying national
fragility r a te of persons requiri ng t h ree to five Activities of Daily Living (ADLs) as
predictive f or need for assiste d li ving ca re.
We note that this is not the a capture r ate a n alysis wh ich woul d be included in a market
a n alys is, w hi ch requires more detailed analysis by a ge cohort a nd converting senior
h ouse holds t o persons.
10400 Little Pa tu xe n t Parkw ay [i Suit c 450 e Colu mbia, J\-!a r ybnd 2 1044 Iii 4 10 .772 .1 004 o Fax 866 .243 .50 57
322 7 South Ch c,rokcc Lan(' l'l Suite 1360 D Wo od stoc k , Georgia 301 88 D 770.5 17 .26 66 l'l Fax 86 6.2+3 .5057
SCA Properti es I Assis t ed Living Dat a-Bro ok lyn Center Market Ar ea
Table 1 Marl<et Summary-Brooklyn Center Market
~--~ ~---------· -l
--'
..a........-... ------' ~-=-r-~~------:. ,-----=~ ---=.:--:-~.---l ~~~--~~-~ -. j
Popu lation Age 75+ I% of Total Popula t ion
Ho useho lds w ith Hhld r 75+ I % of Total Households
75+ Hhlds with Incomes less t han $25k I% of Hhlds over 75
Map 1 Primary Market Area-Brooklyn Center Marl<et
..
~1n ! Av ~ ':';
202 258.1C
203 .01 268.11
203.02 268 .14
20 3.03 268.15
203 .04 2E8.1E
2C4 268.18
205 168.19
206 258 .22
2'J7 268.23
20 8.01 1002
208.04 1CD4
209.0 3 1007
.,
!
211 100~
212 1CC> I
213 lOB ne;
215.01 i:m
~· ?
l o
"' n
Elr(.oc:·tdyn Bi-1 1.1 1-J
Brooklyn
P3rk
7·P4 E...-.=. · . f1,!:'th Av t II
~ -'.-: 1.~0.{"\'Ji .l!,t\','
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215 .02 1257 ·11 .. L..:==-+.-,.;=.....J ·•r.o '
Tll·:•:·J.:.p
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8,714
5,766
2,327
12,749
5.2%
9.5%
40.4%
27.7%
···-·.,:-4,..
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Page 2
SCA Pr operti es I As sisted Livin g Da t a-Br oo kly n Ce nte r M arket Area
Map 2 Brooklyn Center Market and 3, 5 & 7 Mile Radius
c k-o w ::o:.r :;rl .;ors
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Page 3
SCA Pr operties I Ass i sted Living Data-Brooklyn Center Marke t Area
Table 2 Population and Household Growth
lation
2000
2010
2015
2020
Count Coun t
2000 456,129 6 1,904
2010 475,913 19 ,7 84 4 .3% 58,929 -2,975 -4.8% -298 -0.5%
2015 496,446 20,533 4.3 % 60,816 1,887 3.2% 377 0 .6%
..___ __ __,._ ~c;;-=~=--!L2::-_:1, 721 ___ i_4~ ---~'--'~~'--_..;:~"-'"-'-'---' 2020 518 168 72 3.4% 414 0 .7 %
Source: 2000 Census ; 2010 Cen sus ; Esr i; an d Real Property Research Group, Inc .
Annual Change in Number of Households, 2000 to 2020 D Hennepin County
5,000
4,107 4,344
-'! Brooklyn Cente
4,000 ~~. ' Market Area
3,000 -
1,978
2,000
1,000 -377 414
-0 0 0
-1 000 J I
-298
2000-2010 2010-2015 2015-2020
P age 4
SC A Pr op er t ies I Ass ist ed Livi ng Data-Broo kl y n Cen t e r Mar ke t Area
Table 3 Age Distribution of Population
r~~ 2015 Age Distr ibution c Broo l<l yn Cent e r Marl <e t Area
. 'VJ, .
. .
---
C il ren Youth h d I 295,929 24.7 % 48,150
Unde r 5 years 74,377 6.2% 13,351
5-9 yea rs 74,711 6.2% 12,493
10 -14 yea rs 73,672 6.1% 11,553
15 -19 years 73,169 6.1% 10,753
Young Adults 272,996 22.8 % 37,079
20-24 yea rs 89,768 7.5% 11,715
25 -34 years 183,228 15.3% 25 ,365
Adu lts 425,269 35.5% 55,140
35-44 yea rs 158,228 13.2% 21,984
45-54 years 160,80 4 13.4% 20,2 14
55-61 years 106,237 8.9% 12,94 1
Seniors 204,155 17.0% 25,002
62 -64 yea rs 45,530 3.8% 5,546
65-74 years 89,459 7.5% 10 ,7 4 2
75-84 years 44,689 3 .7% 5,55 4
85 and older 24,476 2.0% 3,160
TOTAL 1,198,349 100% 165,371
Med ian Age 36 33
Source: Esri ; RPRG 1 Inc .
Table 4 Trends in Senior Households
13,287 15,606
Source: 2010 Census; Es ri; RPRG
29.1%
8.1%
7.6%
7.0%
6.5%
22.4%
7.1%
15.3%
33.3%
13.3%
1 2.2%
7 .8%
15.1%
3.4%
6.5%
3 .4 %
1.9%
100%
Se niors
., Ad ult s
a.
~
Yo ung
Adul t s
Child/Y o ut
h
17,907
2015 -2020 Olde r Adult Householders by Age
9,000 1
8,000 '
7,000
6,000
5,000
4,000 .
3,000
2,000
1,000 '· o l
55 to 61
00 2010
[) 2015
[j 2020
3,321 3,430
62-64
0% 10%
1!1 He nne pi n County
20%
%Pop
30%
35.5%
40%
2,318 17 .4% 464 3.3% 2,301 14.7% 460 2.8%
8,116
6,5~~~---6,361
65 to 74 75 a nd ol de r
Page 5
SCA Prop erti es I Ass i ste d Livin g Data-Bro o klyn Cen t er Mar ke t Area
Table 5 2015 Household Income
:-."·· . J_ -:·~"~··--~~ 2015 Household Income
I . ' ,i. ..: -' ':.-t~.......~~~-I -$1SO+k Jl~~-~-~~~~··-·-15.5% .... _ .. --.. -
less than $15,000 50,918 10.3% 7,003 11.5% I 138%
$100-$149K ' 16.2% " .~iii~]
---
$15,000 $24,999 36,920 7.4 % 5,736 9.4%
$25,000 $34,999 39,314 7.9% 6,154 10.1%
$35,000 $49,999 62 ,8 98 12.7% 9,789 16.1%
$50,000 $74,999 83,569 16.8% 12,114 19.9%
$75,000 $99,999 65,29 0 13.2 % 8,432 13 .9%
$100,0 00 $149,999 80,648 16.2% 8,393 13.8 %
$1 50,000 Over 76,889 15.5 % 3,196 5.3%
Total 496,446 100% 60,816 10 0%
Median Income $67,402 $53,562
Source: Esr i; Real Property Research Group, Inc.
Table 6 Income by Age of Householder
less th a n
$15,000
$25,000
$35,000
$50,000
$75,000
$100,000
$150,000
$24,999
$34,999
$49,999
$74,999
$99,999
$149,999
$199,999
Source: Esri ; RPRG, In c.
5,736
6,154
9,789
12,114
8,432
8,393
1,872
382
367
345
378
178
127
21
992
1,182
1,677
2,436
1,754
1,626
295
QJ
E
0 u = .,
0 .c
~ ::>
0
::X:
$75·$99 1(
$50·$74K
$35·$491(
$25 ·$34K
$15·$241(
<$1SK
779
1,117
1,599
2,5 76
1,916
2,305
330
I'~
)
J.
'
...
l<-·
0 %
726
933
1,483
2,684
1,9 44
1 ,8 77
57 0
2015 Median Household Income by Age of Householder
Yo 13.9'
13.2%
~II"
i z.7%
1
l 10.1% I.J
7.9%
9 .4% ffi
7.4%
:] 11.5%
10.3% ,, -.-
5% 10% 15%
% Hous eholds
886
834
1,554
2,309
1,599
1,784
480
664
743
1,774
1,149
737
537
112
~l 19.9%
16.8%
6.1%
Brooklyn Ce nte r
Market Area
Hennep i n County
20% 25 %
1,3 07
978
1,356
582
304
136
63
$70,000 ' $64,124 $64,638
j, '1 $60,677
.. $60,000 'li $53,562 $56,145 i $50,000 •
11
--l 1
0 $40,000 ·,1. ~ $30,844
::1
0
:I:
c:
"' 'ii
" 2
$30,000 ,;
$20,000 '
$10,000 j
$0 '"
All Hhlds Age < 25
I
1 ..
25-34 35-44 45-54
Age of Househol der
$44,848
$30,680
55 -64 65 -74 75+
Page 6
SCA Propert ies I Assiste d Li v i ng Data -Bro oklyn Ce nte r Mar ket Area
Table 7 Income Households 75 and Older
$15,000 $24,999 1,307 22 .7% 1,084 1 7 .0%
$25,000 $34,999 978 17 .0% 85 2 13.4%
$35 ,000 $49,999 1,356 23 .5% 1,567 24.6%
$50,000 $74,999 582 10 .1% 806 12.7%
$7 5,000 $99,999 304 5.3% 469 7.4%
$100,000 $149,999 136 2.4 % 209 3 .3%
$150,000 $199,999 63 1.1% 141 2.2%
$200,000 over 19 0 .3% 62 1 .0%
Source: Ame rica n Communi ty Surve y 2009-20 13 Est im ates, RP RG , Inc.
Table 8 2013 Net Worth
$15,000 138,0 71 28.2% 18,776 31.3%
$34,999 31,608 6.5% 4,485 7.5%
$35,000 $49,999 16,482 3.4% 2,398 4.0%
$50,000 $74,999 28,765 5.9% 4,334 7 .2%
$75,000 $99,999 19,531 4.0% 2,983 5 .0%
$100,000 $149,999 30,449 6.2% 4,462 7.4%
$150,000 $249,999 42,038 8.6% 6,309 10 .5%
$250,000 $499,999 68,750 14 .0% 9,0 72 15 .1%
$500,000 Over 114,269 23.3 % 7,248 12.1%
Sou r ce: Es ri; Re al Property Research Group, Inc .
2015 & 2020 HH Inco me for Householders 6 2+
0 .0%
:t 2020 Househ old Income
82015 Househo ld Income
24.6%
23 .5%
10 .0% 20 .0% 30.0%
%of House holds
2013 Net Worth
$500+1< ll
$2 5D-$4991< l
$15D-$2491( }
Q)$10D-$1 491< j.
E ,·
~ $75 -$99 1< I'
"0
$50·$74 1< 1 0 .s::
~ $35 ·$491< ,, :::>
0 ::t:
$15-$3 41< 'I
<$151( 1
l! Brool<l yn Ce nter
Market Area
m Hennepin
Cou nty
0% 5% 1 0% 15% 20% 25 % 30% 35%
%Ho use hold s
Pa ge 7
SCA Pr ope rt ies I Assisted Li v i ng Dat a-Broo klyn Ce nt er M arket Area
Table 9 2013 Net Worth by Age of Householder
$15,000 $34,999 31,608 10,797 1,251
$35,000 $49 ,99 9 16,482 682 4,786 4,77 0 2,502 2,030 1,216 496
$50,000 $99,999 48,296 1,277 11,537 13 ,459 8,794 5,720 3,779 3,7 30
$100,000 $149,999 30,449 545 6,351 6,940 5,163 5,069 3,851 2,530
$150,000 $24 9,999 42,038 478 5,26 5 8,306 8,832 8,70 7 4,962 5,488
$250,000 over 183,019 25,189
Median Net Worth! $114,386 $10,357 $15,761 $60,217 $232,008 $250,001 sz5o,oo1 1 sz5o,oo1
Source: Es ri; RPRG 1 Inc.
2013 Median Net Worth by Age of Householder-Hennepin County
$300,000
$250,001 $250,001 $250,001
$250,000
" E
8
E. $200,000 ' .,
0 .c
ei
" 0
:I:
$150,000 ' !: $114,386 ,,
;.
$100,000 ·:
j•
!:
' $50,000 \'
li
$0 .'
AIIHhlds
$10,357
=-=-=:1
15·24
$15,761
-'-~
25·34
$232,008
$60,217
[-
35·44 45 ·54
Age o f Householder
Table 10 Persons 65 and Older with Disability
Ambulatory Difficulty 24,589 18.8%
Se lf-Ca re Diffi cu lty 10,176 7 .8%
In depe nde nt Li ving Difficulty 18,558 14.2%
Hearing Difficul ty 17,409 13.3%
Visi on Diff icul ty 6,583 5.0%
Cognitive Difficulty 9,460 7.2%
Source: Ce nsus Burea u; 2013 ACS 5-year data
55 ·64 65-74 75+
3,740 22.8%
1,740 10.6%
3,026 18.4%
2,557 15 .6%
1,137 6.9%
1,643 10.0%
Page 8
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SURFACE SCHEME
-108 SURFACE PARK ING STALLS
G) Site Plan -Surface Parking Scheme
1"-60'-0"
2H}.14th A•tenue S. Suite B
t.fnneapo!is , ~.' .. 'l 55404
tEl : (612)879-6000
ra.c(61 2)879-6 666
.-,
"·
I
Site Plan
Profec!Number. 14-10 Revis'en Number.
l:.sueOa!e: 12.2.2014 , Ae'lisV.Da:e: 8 01 01 .1
I
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}___
----...____
6
...____
...____
;]
...____
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' '
UNDERGROUND SC HEME
· 58 UNDERGROUND PA RKING STALLS
·51 SURFACE PARKING STALLS
CD Si te Plan-Und erground Pa rk ing Scheme
1" 60'-0"
210-l<l lh A-tenueS.Sui\e B
P.!ir.ne npo<.s P.1N55~()..1
tel. (612) 879 ·6000
ra,:(612)879·6666
1-
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Sile Pl an
Pro;.octNuml:€r. 1440 P.e l'ision Number.
80101.2
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