2015-02-27_HRA_Agenda_Packet - Laserfiche WebLink

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Attachment B Mr. Stockwell concurred that one level units will be safer; and questioned the projected length of construction time for all phases, as referenced by Councilmember Etten between 2015 to 2018 based on GMHC presentations and discussions at the HRA level. Mr. Stockwell opined that, as a marketer of new construction, his firm couldnt even come close to the demand for new construction, and since GMHC had a dedicated builder team ready to go, he anticipated a much quicker construction timeframe. Ms. Reuter noted that the quicker the project got started, the sooner the units could be sold. In an effort to confirm what she was hearing, Councilmember McGehee stated that she wished the 18 unit proposal was actually the one before the City Council, as it was a product for which they understood there was a need. Councilmember McGehee noted that, from her recollection, that type of unit was in the appraisal and approved by the bank as a known quantity, and no further requirements were needed; and needed less site work since it was less dense. Councilmember McGehee suggested that the neighborhood would be supportive of that option, and sought further comment from GMHC as to her understanding and a timeframe for that option and whether or not it would still need to be phased. Rich McNamara, Western Bank Mr. McNamara briefly reviewed the position of Western Bank, and results of the townhome portion of the appraisal coming back quite well. However, as her previously noted and since Western Bank first began working with GMHC in September of 2014, they had anticipated that the vacant land appraisal would come back higher than it did in reality, and due to the difficulty in finding comparable appraisal properties in Roseville, other communities were used for those comparables. Mr. McNamara noted that the ten single-family home appraisals came in much lower than envisioned by Western Bank, since part of the challenge in Roseville was finding middle-ground comparably valued single-family homes like those proposed, since those being built had higher housing values (e.g. Pulte Homes/Josephine Lakes and Lexington/Victoria). While there were plenty of ramblers in Roseville built in the 1950s and 1960s, Mr. McNamara noted that they were not of similar type to the proposed housing product. Mr. McNamara advised that Western could clearly look at the six homes along Cope Avenue, and with the fire station razed at that point, the townhomes were anticipated to lead into Phases II and III. However, having to work under banking guidelines for lending, Mr. McNamara noted that since the appraisals had not come in as high as anticipated; Western Bank could not commit to any further financing until sales of the townhomes were initiated. Mr. McNamara noted that single-family townhomes were highly sought after and successful, and while asked by GMHC to consider the entire project, he was not in a position to do so. Mr. McNamara noted that he had been working with GMHC on the 25 unit plan since September of 2014, and was prepared to move forward