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Home My WebLink AboutA003 - Letter from Ev Cochrane and Associates dated June 20, 2001 1 i EV COCHRANE AND ASSOCIATES 207 Stanton P.O. Box 1099 Ames, Iowa 50014-1099 Mortensen Manor Apts. __ Bus. (515) 292-4562 Stanton Manor Apts. ;; ; FAX (515) 292-2603 Celtic Manor Apts. ��c Home (515) 292-2444 Bird Manor Apts. ; , (515) 292-6565 Gateway Real Estate J off! 2I June 207 2001 M C� CI l[ [.'I City Council and Mayor City Clerk Office 515 Clark Avenue Ames, IA 50010 Dear Council Members and Honorable Mayor Ted Tedesco: Terra Firma, LP is in the process of developing a high-rise building at the SE corner of Chamberlain and Stanton. It is currently zoned DCSC. Our plan consists of six floors of residential use and two floors of commercial use and parking. Currently there is a five unit converted house in need of work to keep it as it is. In addition to the 208 Stanton site we are considering a parking structure across the street at 215 and 217 Stanton where there are currently two old houses. While going through the early phases of design, it is clear that some sort of tax abatement is needed to upgrade the area to the level it deserves. We have been informed that there is no abatement available in this area at this time. Enclosed you will find a rendering of our preliminary design. With participation from the city through tax abatement we can build this type of structure. These types of structures are a way for Ames to keep population density at its center and slow urban sprawl. We have met with city staff and received positive comments and support for redeveloping the site according to our plans. We would like to start this project as soon as possible in order for it to be completed by July of 2002. Your support of this area is needed now to bring long-term benefits to Ames. Sincerely, r Ev Cochrane and Russ K. McCullou Ev Cochrane and Associates I —IJI1lc_--i +r �1Gi 1p MINE It Y t,K oll of k, �R11 — ALM��e�� 41- t tl1+ ti Prepared 06/04/2001 la: -� Ev Cochrane & Associatesby: Jsf .z,:K. bar_aly 497 1.130 sf bakary STOTT S AS51 K'IAI US A,d il,cU I'.('. 3 Laundry/Stor./Mech. 4 902 sf 630 sf 11015 sf T corridor;', z c ' HMO _5 5 3 3 3 _ 3 1,307 sf 822 sf 822 sf 822 sf 822 sf bakooy _ Plan, Floors 2-7 10,843 gross sf Chamberlain Street ` a Elev - YC I Commercial 14 13 12 11 Storage 3,048 sf � � C I N C Ramp up Parking 10 — 0 C 9 o _ Commercial 1 2 3 4 I 5 6 7 i I Storage 528 sf I I I Q NORTH 10 ft Building Setback space(adjacent to RH zone) .�_. First Floor Plan 1 1,879 gross sf Preliminary Building Code Information Occupancy Classifications: R-1,S-1,B Construction Type:Type 11 F.R. Elev. — Total Area,1st-7th:76,937 sf Allowable Area: 88,205 sf Storage Mechanical (w/increases for separation on two sides) Allowable No.of Stories:12 Provided No.of Stories:7 Fire Protection:Completely Sprinklered 14 ------- 15 16 1 1 189 19 20 Preliminary Zoning Information 13 tI Present Zoning:DCSC -- or Setback Information:0 ft..10 ft.adjacent to RH Parking:54 req'd.,34 on-site provided,20 on 12 adjacent lot. -- --- Parking Street Level Frontage:89%prov'd.,75%rectd 11 r*J Storage 10 9 8 7 6 5 4 1_3L 1 Subgrade Plan 1 1,350 gross sf 0 4 B 16 32 We can build a 3-Story that does not require a parking structure. We cannot build a 7-Story without tax abatement. A 7-Story building requires a parking structure. Two factors in construction of the 7-Story lead to the need for abatement Parking in a structure is 7-10 times more expensive than grade level parking Per square foot cost is estimated to be 40% more with a high rise. Additional Cost to developer of increasing density in DCSC Building Cost ($23.65 /sf more) $ 1,868,350 Parking Cost $ 790,000 Brick Cost (as proposed) $ 281,000 Total $ 2,939,350 Total abatement for 3 year period $ 680,000 Analysis of Costs and Tax Revenue Square feet per residential floor 12,000 Square feet per commercial floor 7,000 Square feet of parking structure 5,000 Square feet of land available for parking 15,000 3-Story 7-Story difference Building cost per square foot $ 60.00 $ 83.65 $ 23.65 Grade level parking cost per s.f. $ 3.50 $ 3.50 $ - Parking structure cost per s.f. $ 23.00 $ 23.00 $ - residential floors built 2 6 4 commercial floors built 1 1 0 Total s.f. of res/comm. Finish 31,000 79,000 48,000 s.f. grade level parking 12,000 0 (12,000) s.f. structured parking 5,000 41,000 36,000 Building Cost $ 1,860,000 $ 6,608,350 $ 4,748,350 Parking Structure Cost $ 115,000 $ 943,000 $ 828,000 Grade Level Park Cost $ 42,000 $ - $ (42,000) Total Cost $ 2,017,000 $ 7,551,350 $ 5,534,350 Potential annual tax revenue @ 3% $ 60,510 $ 226,541 $ 166,031 Simple 3 yr total abatement $ 181,530 $ 679,622 $ 498,092 7-Story as yr Investment 0 $0 1 -$60,510 Present Value of 3-Story Tax Revenue Stream at 5% $1,210,200 2 -$60,510 3 -$60,510 Present Value of 7-Story Tax Revenue Stream at 5% $3,913,884 4 $226,541 5 $226,541 6 $226,541 7 $226,541 Value of this project to Ames today $2,703,684 8 $226,541 9 $226,541 10 $226,541 11 $226,541 Internal Rate of Return for City on 7-Story for 20 years 68% 12 $226,541 13 $226,541 14 $226,541 15 $226,541 16 $226,541 17 $226,541 18 $226,541 19 $226,541 20 $226,541 20 year tax revenue analysis Existing Structure $ 100,000 3-Story Building, no abatement $ 11210,200 7-Story Building with abatement $ 378511189 Simple Totals Over Time $4,000,000 $3,851,189 $3,500,000 $3,000,000 47 $2,500,000 m > —7-Story $2,000,000 —3-Story x $1,500,000 0000, $1,210,200 $1,000,000 $500,000 ZOO $0 0 1 2 3 4 5 6 7 8 9. 10 11 12 13 14 15 16 17 18 19 20 Time in Years �e�$iss''�''"� +a1G•'�w.a171FA':gr�r• 'w.PJ7� -tti�'%. j y� l"E4�cc �{�+�1 ''�¢g�.f� j y`WI:• +.■1� E•'"� r M �5w..t•w�'�jE`�� [•�" ; t�t`{�`�w ' ,tip '�` �.�•� �. �; r� r. �^ #J;�„+i" .M .z,,�1 t.,i'mac'��T•S�. � �4��e - s r • The additional cost of brick Example using numbers for a 7-Story Square feet of exterior requiring finish 45,000 cost per square foot of Vinyl siding $ 1.85 cost-per square foot of EIFS $ 9.00 cost per square foot of brick(1 st 3 floors) $ 14.00 cost per square foot of brick(higher than 3rd floor) $ 19.00 %Vinyl % EIFS % brick 0-3) % brick(>3) Total Cost compared to (a) a 0% 85% 15% 0% $ 438,750 $ - b 0% 100% 0% 0% $ 405,000 $ (33,750) d 0% 60% 40% 0% $ 495,000 $ 56,250 e 0% 10% 40% 50% $ 720,000 $ 281,250 f 0% 0% 40% 60% $ 765,000 $ 326,250 Example of typical 150x30x30 3-Story s.f. of living space 13,500 Cost to build at$60 s.f. $ 810,000 Square feet of exterior requiring finish 8,100 Value of 3 yr tax abatement @3% $ 72,900 %Vinyl % EIFS % brick 0-3) Total Cost compared to (a) a 100% 0% 0% $ 14,985 $ - b 67% 0% 33% $ 47,462 $ 32,477 c 0% 100% 0% $ 72,900 $ 57,915 d 33% 0% 67% $ 80,923 $ 65,938 e 0% 67% 33% $ 86,265 $ 71,280 f 15% 0% 85% $ 98,638 $ 83,653 g 0% 33% 67% $ 100,035 $ 85,050 h 0% 0% 100% $ 113,400 $ 98,415