410 E. Grand
Transcription
410 E. Grand
Overview and Update for Streeterville Stakeholders Agenda Team Introduction •Golub & Company LLC •Chicago Metropolitan Housing Development Corporation (CMHDC) •WeeksWeldon Development Company (Weeks Weldon) • Solomon Cordwell Buenz (SCB) General Project Overview Affordable Housing Details Q&A 2 Team Introduction Golub & Company LLC • • • • • Master developer for entire project and developer of market rate tower apartments Active in Streeterville for more than 40 years Has developed, owned, managed or leased more than 7 million SF of projects in Streeterville, including: – The Streeter and Streeter Place – 680 North Lake Shore Drive – 541 North Fairbanks – John Hancock Center – 625 North Michigan Avenue Active in GNMAA, Streeterville Organization of Active Residents (SOAR) and Streeterville Chamber of Commerce Sits on GNMAA Planning and Development Review Committee to vet development efforts, signage and streetscape guidelines 4 Chicago Metropolitan Housing Dev. Corp. • • • • • Co-developer and manager of affordable apartments CMHDC is a 501©3 non-profit housing development corporation founded in 1982. CMHDC has strong financial position with close to $50 million in assets. CMHDC owns over 625 affordable rental units in the metropolitan area. Rents of existing projects range from $525 to $1,400. 5 WeeksWeldon Development Company • Co-developer of affordable apartments • Company was formed in 2007 to engage in various real estate activities in and outside of the United States. • Prior to forming WeeksWeldon, Tom Weeks was President of Related Midwest, a leading developer of market-rate as well as affordable housing. • Under Tom’s leadership, Related Midwest developed several projects in the area, including: – – – – 340 East Randolph 840 North Lake Shore Drive 250 East Pearson 270 East Pearson 6 SCB • • • • Architect for market rate tower and affordable apartments Renowned 80 year old Chicago-based architectural firm active in and headquartered in Streeterville Neighborhood projects include: – Streeter Place – The Streeter – Park View – 340 on the Park Committed to intelligent planning and sustainable design 7 General Project Overview Site Location Aerial Plan Photograph Aerial View Looking North 9 Massing •Project massing and orientation respect neighborhood context •L-shaped site enabled program to include two housing types while minimizing bulk •10.87 FAR: 10% less than allowable 12.00 FAR •No zoning bonuses used •Major building elements: Tower Apartments (443 units) Mid-rise Apartments (87 units) Concealed parking (297 spaces) 10 Major Building Elements •L-shaped Site •Tower Apartments •Grand Ave & McClurg Ct. •Mid-rise Apartments •Ohio St. •Landscaped Amenity Deck •Concealed parking below 11 Building Section & Organization of Uses •42 Story Tower Apartments •10 Story Mid-rise Apartments •7 Story Parking Deck •Concealed Parking 12 Street Level Plan •Tower Apartment Entry •McClurg Ct. mid-block •Vehicular drop-off •Mid-rise Apartment Entry •Ohio St. •Parking Access •Ohio St. Entry •Grand Ave. Entry & Exit •Retail Corners •Sidewalk Widening •12’-6” at Grand •31’ along McClurg at Ohio •22’ along McClurg at Grand •Raised Landscape Planters •Internal Loading Dock 13 Typical Podium Level Plan •Concealed Parking •Screened by : •Mid-rise Apartments along Ohio St. •Tower Apartments along Grand Ave. & McClurg Ct. •Architectural Facades along McClurg Ct. and interior property lines 14 Amenity Level (8th Floor) •24,600 sq. ft. Landscaped Terrace •Separate Terrace Areas for Tower and Mid-rise Apartments •Trellis feature at Ohio St. & McClurg Ct. 15 Typical Apartment Levels •Mid-rise Apartments •Tower Apartments •Window Bays direct views 16 Architectural Character • Tower & Mid-rise Exterior Wall •High Performance Glass and Aluminum Wall System •Street Level Exterior Wall •Architectural Pre-cast Panel System •Glass & Aluminum Storefront System view from McClurg Court & Grand Avenue 17 Architectural Character • Tower & Mid-rise Exterior Wall •High Performance Glass and Aluminum Wall System •Street Level Exterior Wall •Architectural Pre-cast Panel System •Glass & Aluminum Storefront System view from Grand Avenue 18 Architectural Character 19 Architectural Character 20 Affordable Housing Details Public Policy Reasons for Providing Affordable Housing •The Affordable Requirements Ordinance (A. R.O.) in conjunction with the Chicago Zoning Ordinance requires that housing developments over a certain size provide affordable housing units or a cash payment in lieu thereof. •Locating affordable housing close to employment centers creates the opportunity to reduce the use of private automobiles in favor of local public transportation. 22 Public Policy Reasons for Providing Affordable Housing From Chicago’s Five Year Affordable Housing Plan for 2009 – 2013: “Affordable housing is an asset to every neighborhood and to the city as a whole. It helps ensure that Chicago continues to be home to people of many different ages, incomes, and backgrounds.” “Affordable housing helps build healthy neighborhoods. It creates a market for new retail stores, restaurants, and other neighborhood amenities.” “Affordable housing is good for the economy of the entire city. While housing costs are minimized, low- and moderate-income families have more money to spend on other items, including education, the passport to a better life for their children. Affordable housing also creates jobs in construction, building management and other industries.” 23 Proposed Affordable Housing at 410 E. Grand • Every new multi-family housing development over a certain size is required by the Chicago Zoning Ordinance to provide affordable housing. Developer has the option to provide such housing on site or contribute to a City fund for investment in affordable housing. • This site is well suited to include affordable housing because of the site configuration and proximity to multiple institutional, hospitality, and retail employers. • There are two fundamental ways of providing for affordable housing – Through subsidy programs, (public housing, Chicago Low Income Trust Fund, Section 8 housing) … or – Through financing programs 24 Low Income Housing Financing Programs Financing programs utilize public funds or tax credits to enable developers to create housing and make it affordable to lower income residents. These programs offset the development and operational costs of the project. The savings are then passed onto the tenants in the form of lower rent. Such financing programs include: •HOME loans •Community Development Block Grants (CDBG) •Illinois Housing Trust Fund •Illinois Donation Tax Credits •Low Income Housing Tax Credits (LIHTC) The 410 E. Grand project will utilize Low Income Housing Tax Credits. 25 Low Income Housing Tax Credit Program • Sponsored by the Internal Revenue Service under Section 42 of the IRS code. • Program is administered in Chicago by the Department of Housing and Economic Development and by the Illinois Housing Development Authority in the State of Illinois. • The program provides a dollar for dollar tax credit incentive to investors to facilitate the development of affordable housing units. • The project is owned by a private limited partnership, not a governmental entity. • There are fixed income limitations for households living in the development which apply for 30 years. 26 Building will be owned by Limited Partnership The Chicago Metropolitan Housing Development Corporation (CMHDC) and WeeksWeldon Development Company LLC will be the general partners. CMHDC – CMHDC is a 501©3 non-profit housing development corporation founded in 1982. – CMHDC has strong financial position with close to $50 million in assets. – CMHDC owns over 625 affordable rental units in the metropolitan area. Rents range from $525 to $1,400. WeeksWeldon – WeeksWeldon is a company formed in 2007 to engage in various real estate activities in and outside of the United States. – Prior to forming WeeksWeldon, Tom Weeks was President of Related Midwest, a leading developer of market-rate as well as affordable housing. – Under Tom’s leadership, Related Midwest developed several projects in the area, including 340 East Randolph, 840 North Lake Shore Drive, 250 East Pearson and 270 East Pearson. 27 Median salaries for workers in the area Approximate average salaries (from industry sources for 60611 zip code) in the healthcare, hospitality and retail industries in Chicago: Health Care Median Salary Admitting Clerk $30,200 Medical Assistant $31,500 Emergency Medical Technician $31,600 Anesthesia Technician $36,400 Case Worker - Home Care $46,400 Medical Laboratory Technician $44,100 Physician Residency Coordinator $48,700 28 Median salaries for workers in the area Retail Median Salary Retail Cashier - Full Time $22,000 Retail Sales Staff - Full Time $24,900 Department Retail Sales Manager $36,300 Retail Store Manager $49,700 Visual Merchandiser $50,200 29 Median salaries for workers in the area Hospitality Median salary Tipped Bell Staff $8.08 /hr + tips ($16,800/yr + tips) Housekeeping/Room Attendants $15.00/hr- ($31,200/yr) Kitchen Cooks and Stewarding $14.85-$16.86/hr ($30,900-$35,100/yr.) Hotel Desk Clerks $16.32/hr ($33,900/yr.) Hotel Manager Assistant $54,300 Hotel Resident Manager $68,800 30 Affordable Apartment Units • The building has 70 tax credit apartment units. These units are for individuals and families with incomes not exceeding 60% of area median income (AMI). • The maximum allowable income level varies by family size. Rents do not change based on the income of the tenant. • The renter either qualifies or not to rent a unit based on his/her ability to pay the rent, credit and criminal background. Renter may receive a subsidy. 31 Income Limitations for Tax Credit Units Tax Credit apartment units are limited to low income households making less than 60% of area median income (AMI). Tax Credit Income Limits for the Chicago Metro Area 60% AMI 1 PERSON LIMIT 2 PERSON LIMIT 3 PERSON LIMIT 4 PERSON LIMIT 5 PERSON LIMIT 6 PERSON LIMIT $31,440 $35,940 $40,440 $44,880 $48,480 $52,080 32 Income Limitations for Tax Credit Units 17 apartment units are considered “unrestricted” whereby individuals not exceeding 120% of area median income (AMI) can qualify to rent one of these units. 120% AMI 1 PERSON LIMIT 2 PERSON LIMIT 3 PERSON LIMIT 4 PERSON LIMIT 5 PERSON LIMIT 6 PERSON LIMIT $62,880 $71,880 $80,880 $89,760 $96,960 $104,160 33 What are the rents in the building? Number of units Rent Studio 60% AMI 5 $655 Unrestricted 1 $1,000 60% AMI 32 $695 Unrestricted 9 $1,600 60% AMI 27 $830 Unrestricted 5 $1,900 60% AMI 6 $960 Unrestricted 2 $2,200 Total 87 1 Bedroom 2 Bedrooms 3 Bedrooms 34 Property Management /Selection of Tenants • To be professionally managed by private company. • Kass Management currently manages the CMHDC portfolio. • Kass Management is a full service Chicago-based property manager operating 9,000 rental, condominium and retail units throughout Chicago. • On site manager and maintenance staff. • The application includes a criminal and credit check, and an employment and income verification. • Financial analysis is conducted to ensure that the renter is financially able to pay the rent. • Potential tenant is interviewed and rules and regulations are explained. 35 Thank You