Project Name: Aria Phase II Apartments (Aria II)
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Project Name: Aria Phase II Apartments (Aria II) Project Address: 5274 Decatur St., Denver, CO I. Executive Summary: a. Construction Type: Aria II will be a wood framed, 4 story building, on a post tension slab with one central elevator core and two interior stairwells. The exterior will be Hardie Plank siding. IBC Construction category is Type 5A. The architectural style will be contemporary with a low-sloped roof. b. Population Served: Aria II serves families with incomes from 30%- 60% AMI. See Chart below: c. Bedroom Mix Unit Square 30% 40% 50% 60% Total Type Feet AMI AMI AMI AMI Units 1BR/1BA 693 3 21 9 20 53 2BR/1BA 994 1 5 2 4 12 TOTAL 4 26 11 24 65 % 6% 40% 17% 37% 100% d. Location: 5274 Decatur Street. Aria II will be at the corner of 53nd Avenue, and Decatur Street in the Aria Denver redevelopment of former Marycrest Convent Campus in Denver. The location of the Aria II apartments is in the NE corner of the overall Aria Denver site, adjacent to Phase 1 Aria Apartments. The site is within the boundaries of Denver but is surrounded on three sides by Adams County. e. Amenities: Unit Amenities • Energy Efficient Stove, and refrigerator; • Cable and High Speed Internet hookups; • Kitchens with islands or peninsulas; • Private patios for the ground floor units; • Dining areas and eat-at counters • Balconies for all upper floor units • Closets and pantry’s • Washers and dryers in all units. Site and Project Amenities • Mixed-use, mixed-income community; • Open Space with outdoor fitness walks • Multi-generational community, and ADA compliant exercise equipment; • Diversity of housing types; • Pedestrian friendly sidewalks/bike paths • Neighborhood serving retail; • Way-finding signage; • Includes latest, green technologies; • Services of Cultivate health, fresh food. f. Services: A part-time Resident Services Coordinator (RSC) is on staff at the Phase 1 Aria Apartments and will also provide services to Aria II residents. The RCS will be responsible for ensuring residents have access to necessary supportive services and adjust comfortably to their new living environment. The RSC will be the liaison between the residents, and other case management services offered by Denver agencies such as MHCD, the YWCA and INNOVAGE, etc. The RSC also coordinates resident interaction with Property Management: facilitating effective communication, preventing/resolving Tenant/Landlord issues, and linking residents to in-kind services. The RSC has successfully provided these services for the past two years. The RSC also works with the Cultivate Health coordinator who provides services such as a community newsletter, community yoga, gardening, cooking classes, volunteer opportunities, and coordination with services at Regis. g. Energy Efficiencies and Green Features: Aria II will use energy efficient strategies throughout construction and operations. Examples are: Construction waste management plan will reduce the amount of material sent to the landfill by at least 65%. More than half of the products used for construction will be extracted, processed and manufactured within 500 miles of the site. The roofing is highly reflective energy star compliant membrane material designed to incorporate a 65kW solar system. Green measures include: highly insulated facades; low/no VOC paints; low-e double pane windows; recycled and Green labeled carpeting/flooring; Energy Star appliances, highly efficient lighting, water-conserving fixtures; high efficiency HVAC; and native vegetation with a low-impact storm water system. Aria II is designed with the same high standards as Aria Apartments that was awarded the 2014 Mayor’s Design Award for Sustainability and the ULI Impact Award for Infill Development. h. Financing including Local State and Federal Subsidies: First Bank of Denver will provide a 24- month Construction Loan, not to exceed $5,981,136 at 30 day Libor plus 2.5% with a 3.5% floor. Sources (Permanent) Amount CHFA - Permanent Debt (5.5%, 30 years) $1,729,445 LIHTC Proceeds (@ $.95/$1.00) $11,535,060 City HOME Loan (1%, 40-year Cash Flow Loan) $650,000 State HOME Loan (1%, 40-year Cash Flow Loan) $650,000 Deferred Developer Fee $155,000 Owner Equity $215,193 TOTAL $14,934,698 i. Changes Since Last Application: 1) Since the application submitted in 2016, there have been changes made to the affordability distribution for Aria II. The 2016 application had a total of 18 units at 30% AMI (27.7%), however because Denver Housing Authority is not able to support Aria II with the 18 Project Based Vouchers, the project affordability at 30% AMI has decreased to 6.2%. To meet the City of Denver’s goal to incentivize more units at 30% and 40%, the percentage of units at 40% AMI has increased from 0% in the last application to 40% in this application, bringing 46.2% of the units at or below 40% AMI and exceeding the City’s goal of >45% units at 40% AMI. In total, the units at or below 50% AMI has increased to 63.1% in this application from 58.5% in the 2016 application. 2) With changing market conditions including Federal Tax Equity pricing decreasing from $1.10 to 0.95 and quoted permanent loan interest rates increasing from 5.25% to 5.5%, the project requires subsidized loans from the State and City of Denver of $650,000 each. Subordinate finance was not required in 2016. 2 II. Project Characteristics: Aria Apartments Phase II (Aria II) is a proposed 65-unit apartment complex located at 5274 Decatur in Denver. The building will be adjacent to the successful Aria Apartments that was completed in 2013. Aria II will serve families earning 30% -60% AMI. Aria II will be developed by Perry Rose (PRCo), the Denver office of Jonathan Rose Companies (JRCO), one of the nation’s leading and most sustainable affordable housing developers. First Bank will provide construction financing, CHFA will provide the permanent financing and Enterprise will purchase the Federal LIHTC Equity. The Aria II site is part of Phase 3 of the redevelopment of the former Marycrest Campus, now called Aria Denver. It is in the Chaffee Park Neighborhood (Census Tract 2.01) and is in a NSP 2 Target Area. In 2012, City Council designated the Aria site as an Urban Renewal District. Phase 1 of Aria Denver was completed in 2013 and consists of 72-unit Aria LIHTC Apartments and 13 Townhomes. Phase 2 of the Aria Denver was completed in May of 2017 and consists of 28 condos (co-housing with 8 affordable for- sale units) and the sale of 42 townhome/Rowhome lots to Wien’s Development (9 town home units currently under construction). Phase 3 of Aria Denver will consist of 65 Aria II LIHTC apartments, 48 condominiums on the corner of Elm and 52nd Ave (land sale under contract) and 8,000 sf of commercial on the corner of 52nd and Federal (under LOI). Aria Denver is a centrally located mixed-use community. Aria is located on a 17-acre infill site. The place making design and diversity of Aria reflects the heritage of the Marycrest Sisters’ of Saint Francis commitment to social and environmental stewardship and community building. Aria Denver is a “Community of Opportunity” focusing on using affordable housing as a platform to create opportunities for healthy, active, life-long learning and living (See Attachment 1 for photos of Community of Opportunity Activities). Aria is across the street from Regis University. Aria Denver is distinguished by its diversity of housing types, including townhomes, condominiums, co-housing, market rate and affordable apartments. The first “pocket neighborhood” in Denver will be developed in this community where smaller, more affordable, townhomes will be built around a central green. 14 of the pocket units will be set aside to provide For-Sale Affordable Housing. At full build-out Aria will consist of approximately 400 housing units. If Aria II is approved, approximately 35% of the total units will be affordable. Residential units will be linked by pedestrian friendly streets, open spaces and 30,000 square feet of neighborhood serving commercial shops. A Letter of Intent has been executed between Aria Commercial and Starbucks to lease 2000 sf in Aria’s first commercial building at the corner of Federal and 52nd. (See Attachment 2 for Rendering, Site Plan and LOI for Starbucks Building). The Commercial area will be developed by a LLC owned by Marycrest Master Developers Jonathan Rose and Jerry Glick. The developers are in discussions with several other national and local tenants to lease the remainder of the commercial space. The first Aria Commercial Building will start construction in November 2017 and Starbucks will open in June of 2018. In 2014 Aria Denver, partnering with Regis University, Perry Rose, Urban Ventures and the Chaffee Park Neighborhood Association, was awarded a $1 million grant from the Colorado Health Foundation to fund “Cultivate Health” (CH). Aria’s goal is to utilize the Cultivate Health grant to create a “Community of Opportunity” to support the wellness of residents in a multi-generational, mixed-income, mixed-use, pedestrian friendly community by promoting active lifestyles, access to healthy food, and access to integrated health services. At Aria, the Cultivate Health Grant has resulted in: a one-acre of production farm with a “pay what you can food stand” for low-income residents, a greenhouse that provides 3 hydroponic vegetables, year around; healthy cooking classes; hiring a neighborhood cultivate health coordinator to administer community gardening, yoga classes, walking groups, enhanced neighborhood communications, etc.; completion of 52nd and Federal median improvements; sidewalk, landscape, pedestrian lighting and way-finding improvements along 52nd, providing bicycle racks and bike paths. (See Attachment 1 for photos of Aria’s Community of Opportunity Activities) Why Project Should Be Selected Above Others: Aria II should be selected above others because it is a Community of Opportunity linking Housing, Health and Jobs consistent with the Mayor Hancock’s 2017 Denver HOPE Initiative.