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EXECUTIVE SUMMARY <br /> Purpose and Scope <br /> • Maxfield Research Inc.was retained by Cottage Homesteads of America to conduct a <br /> market feasibility study for an affordable senior rental community to be located in Elk River, <br /> Minnesota. The development,to be named 8lackhawk Woods, is an 84-unit townhome <br /> development that will be affordable under the Low-Income Housing Tax Credit(LIHTC) <br /> program. <br /> • This study assesses several factors that impact market potential for affordable rental <br /> housing. Included is a review of the quality of the Site,analysis of demographic and <br /> economic characteristics of the draw area(Primary Market Area or"PMA"),and assessment <br /> of the existing market conditions of affordable senior housing in the local area. These <br /> factors inform our demand calculations,which quantify demand for affordable senior <br /> housing units in the PMA and on the subject Site. <br /> • Fieldwork for this study was conducted by Maxfield Research Inc.on April 4,2013. <br /> Project Description <br /> • As proposed,Blackhawk Woods would include 84 cottage-style townhome units that will be <br /> located in a row-home style ranging from five-to-eight units per structure. All units would <br /> be income restricted with contract rents at 60%of Area Median Income(AMI). Contract <br /> rents by income-restriction are as follows:$865 for studio units,$927 for one-bedroom <br /> units, and$1,111 for two-bedroom units. Income guidelines for a two-person household <br /> cannot exceed$39,540. <br /> Site Analysis <br /> • The subject site is predominantly located off of Yankton Street Northwest in Elk River, <br /> ' Minnesota. Yankton Street is just south of Highway 10 and east of Waco Street on the <br /> western edge of Elk River. The project would be located in the West Oaks subdivision that <br /> was previously platted and contains a mix of townhomes and single family homes. The <br /> development would be located on two parcels;the western parcel is about five acres and <br /> the eastern parcel is about three acres. <br /> Demographic Analysis <br /> The following points summarize demographic trends that will have the greatest impact <br /> on demand for affordable senior rental housing in the PMA: <br /> • Between 2000 and 2010,the PMA added 23,039 people and 8,372 households. By • <br /> 2017,the PMA is projected to add 3,728 people and 1,403 households. <br /> MAXFIELD RESEARCH INC. 2 <br />