HomeMy WebLinkAboutA016 - Letter from Hunziker & Associates, costs to consumer of proposed zoning ordinance z
SS0CIATES,
REALTORS®
105 South 16th Street
Ames,Iowa 50010-8009
(515)2334450•FAX(515)232-5521
August 4 1998
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CITY OF AMES,IOWA
The Honorable Ted Tedesco, Mayor
And Members of the City Council of the City of Ames
Dear Mayor Tedesco and Council Members:
As promised, I am outlining the costs to the consumer of the new zoning ordinance presently
proposed for a multi-family project we are working on.
Proposed Apartment Project
119,123 & 129 Sheldon Avenue & 128 Hyland Avenue
Total Lot Area 44,850 s.f. Under the existing ordinance, 39 units are possible by area,
after factoring parking in, 30 units are allowed.
Under the existing zoning ordinance, the density as shown on the enclosed site plan is allowed:
30 units
Total coverage 37,048 s.f. = 82.33%
Building coverage 10,725 s.f. = 38.45%
Landscape area 7,952 s.f. = 17.67%
The new zoning ordinance as proposed requires:
Landscape area 13,500 s.f.
— 7,952 s.f. existing requirement
5,550 s.f. Additional landscape required
To get 5,550 s.f. additional landscape area we must eliminate the 6 units as crossed out in red.
This provides 1,800 s.f. Then by eliminating 2 parking areas as crossed out, we gain 3,750 s.f. of
landscaping for a total of 5,550 s.f. By eliminating these 2 parking areas we lose 11 parking
spaces, leaving 48 parking spaces. After eliminating the 6 units as shown, the new parking
requirement is as follows:
3 EFF units @ 1.5 = 4.5 stalls
5-3 BRM @ 2.0 = 10 stalls
12-2 BRM @ 2.0 =24 stalls
4— 1 BRM @ 1.5 = 6 stalls
Total 24 units 44.5 or 45 stalls (we have 48 available)
Under the new zoning ordinance,without taking into consideration possible additional
parking that might be required by an"overlay," we end up with 24 apartments in lieu of 30.
The proposed overlay of 1.25 parking spaces per bedroom would further reduce the number of
units allowed.
Land costs, including demolition in the area west of campus has been about $15,000 to $19,000
per apartment unit. Our cost for this site is $17,000 per apartment,
i.e. $17,000 x 30 units (existing zoning ordinance) or a total land cost of$510,000.
Under the new zoning ordinance, using the new landscape requirement and not increasing the
parking,the price per unit would be: $510,000 - 24 apartments= $21,250 per apartment.
Under the original zoning ordinance, the cost per apartment= $17,000.
Under the proposed zoning ordinance the cost per apartment= $21,250
This increase of$4,250 per apartment unit @ 8% over 25 years, increases the monthly cost
$32.81 per month.
To obtain the same return under the new zoning ordinance, the rent per apartment would increase
$32.81 per month or$393.72 per year. I mentioned $200/year at the meeting. As you can see,
it is nearly double that.
Also, it is very difficult to place a dollar amount on the additional time spent with engineering,
architects and planning as a result of the complexity, etc. of the new zoning ordinance. These
related costs will increase, I just don't know how much.
As a side note, when rents rise on new apartments, prospective renters turn to existing
apartments as an alternative, thus putting upward pressure on the rents of existing apartments.
To the extent that the new zoning ordinance will raise the price of housing in Ames, the
affordability of housing in Ames is reduced.
Since ly,
an E. Hunziker