HANDOUTS JT HR CC MTG 11042013 - Laserfiche WebLink

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CONCLUSIONS AND RECOMMENDATIONS Penetration Rates No single site can capture all of the demand in the market area. Based on the location of the subject Site and its characteristics,the proposed concept,the lack of competitive facilities,we estimate the subject Site can capture sufficient market share to support the proposed 84-unit townhome development. Based on our analysis of household income,approximately 1,150 households are calculated to comprise the target market for affordable housing in the Elk River Market Area. Dividing the proposed units at Blockhawk Woods(84 units)yields a project penetration rate of 5.2%. Since 25%of the demand will be drawn from outside of the PMA,we only include 75%of the units(or 60 units with a 5%vacancy rate) This low project penetration rate indicates that the income-qualified renter base is more than sufficient to support the proposed development Next,we estimate the gross penetration rate that includes competitive and pending projects. Since there are no competitive or pending affordable senior housing units in the PMA,the gross penetration rate is the same as the project penetration rate. Again,this is low and indicates;: that the income-qualified base is sufficient to support all of the existing and proposed affordable rental developments Discussion of Development Concept Based on our research and analysis,we believe the proposed development concept will be well received in the marketplace. The quality of the subject Site and lack of affordable senior housing product together create a strong market appeal for the townhome community. Seniors will be attracted to a maintenance-free project that is free of stairs,while also boasting an individual entrance to each unit.The propose concept overall requires little,if any, amendment. Maxfield Research reviewed the proposed development concept and believes the • unit mix, unit sizing,and related pricing options are appropriate for the Market Area and should be well-received. However,if possible we would recommend increasing the unit size of the suite and one- bedroom units. Although these unit sizes are typical for a traditional multifamily structure,they are on the low end for a cottage-style townhome design. All of the one-bedroom units are designed to be end units so they will received additional natural light resulting in the feel of a larger unit. However,the suite units are all inside units and hence will be surrounded by other units on both sides. Because of this they will have fewer windows than the end-units and will not have the natural light like the one-bedroom units will gain. Therefore,we recommend either increasing the suite square footages or incorporating design elements that will allow more natural light(i.e.larger windows,sky lights,staggering of units,etc.) Overall,we believe the development will meet the housing needs of low-to-moderate senior households and will increase the quality and availability of affordable housing in the Elk River MAXFIELD RESEARCH INC. 56