January 9, 2014 Minutes
(City Commission Room)
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MEMBERS
PRESENT: |
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Linda Bush, Alex Delaney, Steven Koprince,
Quinn Miller, James Minor, Vern Norwood, Patrick Wilbur |
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MEMBERS
ABSENT: |
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Julie Mitchell, Travis Weller |
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STAFF
PRESENT: |
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Danelle Dresslar, Brad Karr |
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PUBLIC
PRESENT: |
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James Dunn, Aaron Gaspers, David Rhodes,
Suzanne Rhodes |
Chair
Minor called the meeting to order at 5:32 p.m.
1. Introductions.
Members
introduced themselves.
2. Approval of the December 12, 2013 Minutes.
Norwood
moved to approve the CDAC meeting
minutes from December 12, 2013. The
motion was seconded by Delaney and passed
7-0.
3.
Tax Credit Project Presentation – Bethel Estates of Lawrence Proposal.
Dresslar
gave a brief summary of what the CDAC’s role would be in the Bethel Estates of
Lawrence project. The Kansas Housing
Resource Corporation, the funding agency for the state tax credits, requires a
resolution of support from the community in which the project is being
built. The CDAC will vote whether to
recommend approval of the submission of the application to the KHRC for the Low
Income Housing Credit Program. The City
Commission of Lawrence is the body that would approve that resolution.
Aaron
Gaspers with CFS Engineers, engineering consultant for the project, gave an
overview of the Bethel Estates of Lawrence project. The project consists of 15 buildings with six
apartments per building located at the NW corner of E 25th Terrace
and O’Connell Rd. The apartments will be
for seniors 55 and older and will be built in two phases. Phase one will consist of eight buildings
plus the leasing office/meeting room.
Delaney
asked about other communities in which Bethel Estates has similar
projects. Gaspers indicated that there
are Bethel Estates in both Gardner, KS and Neodesha, KS.
Bush
asked what the proposed rents will be.
David Rhodes of Wheatland Investments LLC, the developer, replied that
20% of the units will be at 40% of the median income and the remaining units
will be at 60% of the median income for Lawrence. Bush asked what that percentage would be in
dollars per month. Rhodes stated that
the one bedroom units would be close to $400 per month at the 40% of median
income level, and closer to $600 at the 60% level. The two bedroom units would be around $725
per month.
Delaney
asked about the impact on the neighborhood with an addition 90 apartments added
to the area. Rhodes used the project in
Gardner as an example, and said most of the units are occupied by a single
person, with only a few occupied by couples.
He said with all the residents being senior citizens, the impact on the
neighborhood is very minor.
Bush
asked about the proposed community building and any other amenities. Rhodes indicated that the main use of the
community building is for the leasing office, but there will be an area inside
for activities, including pot-luck dinners and birthday parties. All the buildings are connected by sidewalks
to allow residents to get around, and bicycle racks are provided for visitors.
Miller
inquired about the maintenance on the buildings. Rhodes said they perform all the maintenance,
both interior and exterior as needed.
Norwood asked if the units are equipped with dishwashers. Rhodes said all of the units have a
dishwasher, washer/dryer hookups, garbage disposal and fire sprinklers.
Koprince
asked about the income requirements for the units. Rhodes said the units are income restricted,
which dictates the amount of rent. If
the applicant’s income exceeds the amount set by KHRC, they do not qualify to
live there.
Norwood
asked about seniors 55 and older who have spouses that are younger and if there
are any age restrictions for that.
Suzanne Rhodes of Wheatland Investments LLC responded that they allow
for that since the state regulations indicate a resident can bring in a younger
spouse. No children are allowed to live
in the units.
Wilbur
asked what their occupancy rates would need to be to make the project
viable. Rhodes said the costs have not
yet been determined for the Lawrence project, but the Gardner location is
currently 100% rented, with very little turnover. In the 12 years they have had these types of
properties, they have only had one eviction.
Minor asked how long it took to reach full capacity at the Gardner
property. Rhodes said it was less than
six months.
Wilbur
asked about the IRB and property tax abatements that would be required to make
funding a possibility for the project.
David Rhodes explained that the application with the KHRC for the Low
Income Housing Tax Credit Program is a very competitive process. Developers across the state are applying for
the program, and the State of Kansas uses a scoring system to rank the
applications. Any assistance from the
City of Lawrence, including IRBs or property tax abatements, would gain points
for the Bethel Estates application. If
they are not ranked high enough to participate in the KHRC program, the project
will not be built. The last round of
applications to the KHRC resulted in 45 applications, of which 16 were
approved.
Koprince
asked about the number of residents that would be from out of the area. Rhodes said that their market study indicated
that 80% to 85% of the residents would be coming to the area because an adult
child already resides in Lawrence, and they wish to be closer to family.
Minor
asked if other areas in town were considered before deciding on this
location. Rhodes said he looked at the
NW side of Lawrence, but felt that this location was more attractive due to the
new business park being built and the location of the SLT.
Norwood
asked about competition with other retirement projects in town. Rhodes stated they feel with their type of
product and the quality of service they provide, that they have little
competition.
Minor
asked if there was any public comment about this project.
James
Dunn, housing provider in Lawrence, had comments about the market study of the
Lawrence population, and also stated he would prefer any tax credit housing
project to contain a more mixed use type of property open to all age groups
rather than just seniors.
Miller
asked Rhodes if there was any type of storm shelter on the property. Rhodes said they are looking at the possibility
of making the bathroom in each unit into a safe room with reinforced walls,
instead of having a common area shelter.
With the age of the residents, they would rather they not go outside
during a storm.
Minor
moved to recommend approval of the
submission of the Wheatland Investments, LLC application to the Kansas Housing
Resource Corporation for the Low Income Housing Tax Credit Program to construct
affordable senior rental housing at E 25th Terrace and O’Connell
Road in Lawrence. The motion was
seconded by Miller and passed 7-0.
4. Discussion of 2014 CDBG and HOME
applications and timeline.
The
committee discussed the order in which they would review the CDBG and HOME
applications. It was determined that the
order of discussion would be HOME, Public Service, then Capital Improvement.
Norwood
asked if 15c, City of Lawrence Community Development Division, Administration
could be discussed first.
Delaney
suggested that they vote on 15c now rather than put it off until the next
meeting.
Delaney
moved to fully fund 15c, City of
Lawrence Community Development Division, Administration. Wilbur seconded the motion. The motion passed 7-0.
5.
Public Comment.
James
Dunn said that he lives in the Oread Neighborhood, and that at some time the
past funding was provided to build privacy fences around dumpsters in the
neighborhood. The fences are now in need
of maintenance, and he was hoping there would be funding available to fix
them. Dresslar explained that the only funding
the Oread Neighborhood applied for this year was operating and coordinator
costs. Dunn commented that if the
committee funds a project, future maintenance should also be considered.
6. Miscellaneous/Calendar.
Dresslar
reminded the committee that the allocations are typically finalized by the end
of February, or the beginning of March.
The Public hearing is in April, and then the allocations go to the City
Commission in May and due to HUD by the middle of June.
The
next meeting of the CDAC will be January 23, 2014.
7.
Adjourn.
Minor moved to adjourn the January 9, 2014 meeting of
the CDAC at 6:20 p.m. Delaney seconded the motion. The motion passed 7-0.
Attendance Record
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Members |
Jan
9 |
Jan
23 |
Feb
6 |
Feb
20 |
Mar
6 |
Mar
20 |
Apr
3 |
Apr
17 |
May |
Jun |
July |
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Linda
Bush |
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Alex
Delaney |
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Steven
Koprince |
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Quinn
Miller |
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Julie
Mitchell |
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James
Minor |
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Vern
Norwood |
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Travis
Weller |
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Patrick
Wilbur |
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E Excused Absence
U Unexcused Absence
X Meeting Cancelled – Weather Conditions
- Meeting Cancelled – Committee
Vote/No Business
* First meeting after appointment
** Last Meeting Prior to expired term
^ Last
Meeting