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Home My WebLink About004 Affordable Housing PlanDocuSign Envelope ID: 6E7B617D-BD7D-4778-BEB9-100FCA450210 DocuSign Envelope ID: 6E7B617D-BD7D-4778-BEB9-100FCA4502105/22/2023------------- Bozeman Apartments TBD - 1500 N 15th Ave. BOZEMAN, MONTANA Affordable Housing Plan Reuter Walton Development, LLC| May 2023 Reuter Walton Development 4450 Excelsior Boulevard, Suite 400 St. Louis Park, MN 55416 (612) 823-3489 David Fine City of Bozeman, Economic Development 121 N Rouse Ave. Bozeman, MT 59715 RE: Bozeman, MT – 155-unit 4% project Narrative Letter Reuter Walton Development is proposing a 155-unit affordable housing development located between Patrick Street and Tschache Lane just south of Interstate 90 in Bozeman, MT. The site is located in a QCT and the developer currently has the site under purchase agreement. The Seller of the land, Virga Capital, is developing several acres of land adjacent to the site and will deliver 285 units of market rate housing spread across multiple buildings. The project site is centered around a privately maintained, shared-use walking path, with access and storage for bicycles throughout the site. To the project's west is the Bridger Peaks Town Center, which features a grocer, several banks, restaurants, and clothing stores. The shopping center is less than 900 feet from the project site promoting walkability and bike-ability for future residents. Reuter Walton’s affordable housing proposal includes a total of One Hundred Fifty-Five (155) units of affordable housing serving households earning 60% of Area Median Income (AMI). The proposal includes housing for both individual and family households with sixty-seven (67) one‐bedroom units, forty-three (43) two‐bedroom units, and forty-five (45) three‐bedroom units. Each unit will include Energy‐Star appliances with laundry and will feature a high quality of design and finishes. Community amenities include a fitness area, community room, wifi lounge, private offices for property management, enclosed parking, and an outdoor gathering space. One of the highlighted attributes of this project is the location and being adjacent to the Streamline - Blueline bus route. The site is adjacent to two transit stops that have buses run every thirty minutes during the weekday. In addition, the site is within .5 mile of the Walton Homestead Park and Rose Park. The project will activate the streetscape along 15th avenue which the city really wants to achieve. For residents with an automobile, the proposal includes a dedicated off-street surface parking lot but recognizes that not all residents will want or need parking. The proposal seeks to promote its location to public transportation and bicycle infrastructure by providing secure, indoor bicycle parking. These will allow residents access to major employment centers. The project site within census tract 30031000600, where the median household income was $53,897 in 2022 according to the 2022 FFIEC Estimated MSA/MD/non-MSA/MD Median Family Income. This project will be affordable at household incomes ranging from $41,000 per year to $65,000 per year and is well positioned to provide much needed affordable housing options for working families. The project’s biggest asset to the community and public benefit is the affordable rents compared to the current market. On average the projected rents are between 23-55% below the market rents currently being achieved. This will give the general workforce in Bozeman the ability to find affordable housing options. Further evidence of the high demand is of the 1,100 LIHTC housing units in the Bozeman area having 0% vacancy. Our market study also stated the HRDC estimated a need for 6,000 to 7,000 more affordable units needed in the short term. Bozeman Apartments Bozeman Apartments - Affordable Housing Plan 1 1. Executive Summary Reuter Walton Development, LLC presents Bozeman Apartments, a 5-story multifamily residential building that will provide 155 units for working families and individuals with rents at or below 60% of the AMI. Bozeman Apartments will give residents the benefit of living near downtown Bozeman in a neighborhood close to employment, local services and a multi-modal transportation network. This multifamily residential development enhances the neighborhood by investing in an underutilized site with high-density residential that offers housing options for individuals and families interested in affordable living in a residential neighborhood close to the downtown core. The building’s affordable component includes mix of one, two and three bedrooms. Development Site Bozeman Apartments is part of a larger redevelopment adjacent to the lumberyard in north downtown Bozeman. The site is conveniently located near Bridger Peaks Town Center which is anchored by a Smith's Grocery Store. Prominent employers include Bozeman Health, Montana State University, Simms Fishing Products, Oracle, and Bozeman School District. Commercial services, including grocers, restaurants, and retail, are just west and north of the site along N 19th Avenue. The site is adjacent to the Streamline - Blueline bus route and two transit stops that have buses running every half hour during the weekday. In addition, the site is within .5 mile of the Walton Homestead Park and Rose Park. The project will activate the street scape along 15th avenue which is a City priority. The site is around 3.3 acres and is adjacent to four public streets: 14th Avenue North, 15th Avenue North, Patrick Street, and Tschache Lane. Adjoining land uses include residential and retail to the south, vacant land to the north, proposed market rate housing project to the east, and vacant land to the west. Bozeman Apartments 2 Design Characteristics The underutilized property will be redeveloped into the Bozeman Apartments, a new construction project that will provide 155 apartment units for individuals and families with incomes at or below 60% AMI. The site is designed to take advantage of vacant land between the road expansion between 14th and 15th Ave. The main entrance to the building is located off 14th Avenue North. On the east side of the building, an outdoor courtyard area will be available to the residents for use; it will include a tot-lot, outdoor seating, entertainment area, and a dog run. Off-street parking is provided in a roughly 135 surface parking stall lot that also has space for bike storage. Building elevations show a modern style with an organized arrangement of building materials and elements. Common spaces will be located on the first floor, including a lobby, gathering/entertainment area, fitness center and secured mail room. Office space will be provided for the property management. Development Team Reuter Walton Development, LLC Reuter Walton Development is an award-winning real estate company that specializes in developing outstanding, community-driven projects in the multi- family, student housing, hospitality, and commercial sectors. Reuter Walton Development fosters a culture of collaboration whether developing their own projects or working for a third party. Their success is due to a group effort by their team, who has collectively over 50 years of experience in executing and completing a diverse portfolio of development projects. This team is equipped to facilitate every step of the development process from inception to completion. Nick Walton is the President & CEO of Reuter Walton. He sees potential where others don’t and works through issues where others won’t. With a comprehensive background in development, finance and construction, he can manage a successful project from concept to completion. He has developed 30 ground-up projects, spanning over 3 million square feet and over $1 billion in value. Bozeman Apartments - Affordable Housing Plan Bozeman Apartments Bozeman Apartments- Affordable Housing Plan 1 4.Location and Site Maps Bozeman Apartments Bozeman Apartments- Affordable Housing Plan 1 4.Location and Site Maps Bozeman Apartments – 155 Units 4450 Excelsior Blvd, Ste 400, St. Louis Park, MN 55416 ● (612) 823-3489 I.Detailed Project Schedule Schedule Milestone Completion Date Submit Narrative & Project Data to MT Housing 10/7/2022 Initial Planning Call – City of Bozeman, RWD, KWA 10/11/2022 Purchase Agreement Effective Date 10/18/2022 Submit LIHTC Application to Montana Housing 01/01/2023 Finalize Civil Engineer 01/25/2023 Civil – Kick Off 02/03/2023 Civil Application Submitted to City – Conceptual 02/17/2023 Site Plan Review Meeting – Conceptual 04/11/2023 Neighbor works Loan Committee 04/17/23 Seller’s subdivision completed 05/01/2023 Montana Housing Board Meeting 05/23/23 Site Plan Review Submittal 05/26/23 Seller Infrastructure Improvements Complete 06/03/2023 Site Plan Approval – 8 weeks from submittal 07/21/2023 Submit for Building Permit 07/21/2023 Building Permit Issued 08/21/2023 Close 10/01/2023 Commence Construction 10/08/2023 Certificate of Occupancy 03/01/2025 Bozeman Apartments CRITERIA FOR AFFORDABLE HOUSING PLAN InformaƟon Required 1.We are proposing 155‐unit apartment units of which 100% of units will be set at 60% AMI rent limits. 2.The project will compile with Table 38.380.020‐1 3.There will be 288 bedrooms as part of the overall affordable rental project. 4.100% of affordable units will be rented. 5.100% of the development will be affordable. However, a mix of 1‐bedroom, 2‐bedroom, and 3‐bedroom will be spread out throughout the building for a good mix. 6.All units will be set at 60% AMI rent and income limits. 7.Geƫng conﬁrmaƟon from our architect, KWA. 8.Our proposed project will be allocated tax‐exempt bonds and 4% housing tax credits from Montana Housing. With that commitment the project will require a minimum affordability period of 50 years which will record a Land Use Restriction Agreement (LURA) against the property to track. Phase ConstrucƟon – NA 9.N/A 10.N/A Development Standards for Affordable Homes 11.All 155 affordable units will meet or exceed the minimum standards. 12.The project unit types will be spread out evenly through the building and ﬂoors. All units will be affordable. 13.All project ameniƟes will be accessible to all residents, it’s a 100% affordable project. 14.N/A, all units will be constructed at the same Ɵme. Bozeman Apartments – Affordable Housing Plan 1