Study Session 2.TitlePageTemplate-FlahertyCollins_v3_PDFResidential
Development
Proposal
January 2022
The City of Salina - Community and
Development Services Department
The Problem and The Plan:
Since 2016 Salina has been successful in becoming the
chosen expansion location of several economic develop-
ment prospects. One Vision, a commercial airplane restora-
tion company, has relocated to Salina from Sioux City, Iowa
bringing 200+ new jobs and recently indicating their desire
for additional employment expansion. Schwan's and Great - r
Plains Manufacturing have both announced substantial ex- i
pansions that will result in 635 new jobs by 2025 with Great
Plains estimating another 200 new jobs between 2025 and
2030. Saline County and the City of Salina have supported
these expansions through IRBs totaling over 300 million dollars. Additional growth in the commu-
nity, supported by these new jobs and the completion of the Downtown Revitalization Project,
should result in 263 new jobs in downtown. Strident Manufacturing has indicated that they would
add 110 new employees if the housing was available for their new labor force. Associated indus-
tries like medical, education, retail, and entertainment will be affected by the influx of new jobs and
are expected to see an increase in their own employment needs in order to meet new demands.
"Salina is projecting
1,300 - 1,500 new jobs
in the next 5 years; with
well over half of those
new jobs anticipated
within the next 1-2
years. "
- Salina Chamber of
Commerce, Jan. 2022
Due to the expansion of businesses, in January of 2021
the City began working again with RDG Planning and
Design Group to update the 2015 Live Salina Housing
Assessment and Strategic Plan (Housing Plan). The
purpose of updating the plan has been to ensure that
the community's demographics and new employment
numbers are as current as possible, allowing the City to
understand the projected housing need. Additionally, the
City wanted the updated plan to objectively assess the
housing development challenges and costs with the an-
ticipation that developers would be seeking financial as-
sistance or incentives in the future from the City. Results
of the study show a need for over 1,500 units by 2030
with a recognition that this number is not static and will
increase as additional economic development occurs.
Meanwhile, our three largest industries are seeing major
growth, with no signs of slowing.
Staff has been in contact with multiple developers discussing the economics of various housing
projects. Developers have consistently identified projects in Salina as not viable. They have indi-
cated a considerable level of interest in Salina but point out but there is less risk and higher rental
rates in metro markets. In response to this, the City Commission adopted a Housing Incentive
Policy in July of 2021. The community has made a concerted effort of finding available funding for
these issues yet, the need remains and that is the basis of our request. Details related to the com-
munity's needs per Housing Plan's 10 -year Program are detailed in the following table-
10 Year Program—Minimum Required Housing
*Data based on 2021 Live Salina Plan and known business expansions, any additional employer expansion
will require more units
Source: RDG Planning & Design 2021-2025 2026-2030 TOTAL
Total Needed
Total Owner Occupied
<$225,000
$225,000-300,000
$300,000-400,000
.$400,000
Total Renter Occupied
<$625
$625-1,000
$1,000-1,500
>$1,500
1,039
519
206
129
128
57
520
213
181
77
49
625 MAM
375 894
149
93
92
41
250
102
87
37
23
Measured Need and Identified Solutions:
355
222
220
98
770
315
269
115
72
The Housing Plan not only lays out the specific unit numbers and housing types needed to meet
the communities demand, it also identifies the approach needed to meet those specifications:
• Offset the increased cost of new construction with government assistance and incentive pro-
grams.
• Meet the immediate demand, primarily focusing on
Salina's average 5 year rate
rental housing, by both encouraging development
I of residential construction
through incentives and ensuring that projects meet
has been 41 units a year
the city's overall housing goals.
• Demonstrate the market for more diverse and affordable
housing types in a well-designed, planned development.
Between 2022 and 2025
• Make infrastructure investments where necessary to we need 346 units a year.
direct new development in areas that take advantage
of community assets and provide highly attractive
and competitive living environments.
That is 8x
�m
more housing a year!
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Developer: Flaherty & Collins Properties
Flaherty & Collins Properties (F&C) is the most active mixed-use, multi -family developer in the Midwest,
with over one-half billion dollars currently in development in Indianapolis, Cincinnati, Minneapolis/St. Paul,
Chicago, St. Louis, Covington, Tulsa, New Albany, Kokomo, Brownsburg, Elkhart, Mishawaka and Kansas
City. A full-service, fully integrated company, Flaherty & Collins Properties consists of three main depart-
ments: Development, Construction and Management. The talented and experienced professionals at Fla-
herty & Collins Properties specialize in complex infill deals that have a public-private component.
Formed in 1993 by David. M. Flaherty and Jerry Collins, F&C has been consistently ranked as a Top 50
developer nationally for the past eight years for multi -family developments based on number of units built.
Currently, Flaherty & Collins manages 75 properties and 11,948 units in 7 states. Flaherty & Collins has
earned Accredited Management Organization (AMO@) designation from the Institute of Real Estate Man-
agement (IREMO). This designation is given to an exclusive group of
companies that meets rigorous standards. I i
With over 450 employees, Flaherty & Collins focuses on building trust,
managing long-term partnerships and developing strong communication F LAH E RTY & COLLINS
PROPERTIES
14, COMMERCIAL PROPERTY
EXECUTIVE'S 14th
Tap 30 National
Development Firms
MHN 2020
MULTI -HOUSING NEWS
16th
Midwest RE News
Best of the Best
Developers
2021
The Project: Lakeview Apartments
200+ units of multi -family
Garden apartments (Studio, 1
& 2 bedroom).
Located South of Magnolia
Rd. on S. Ohio St.
Easy access to Salina Region-
al Airport, Southern Employ-
ers, Growing Southern eco-
nomic District.
• Completed within 3 years
Project Products
Unit SF Units
Studio/1 bath 729 10
1 bed/1 bath 750 110
2 bed/2 bath 1,100 100
TOTAL Avg. 908 220
E'Meign01119 Rd
1- 3 .
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Rent
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11 ■
$950 a_a
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Amenities Include Community Walking
Trails, Pool with BBQ Pavilion, Outdoor
Recreational Space, Dog Park, Indoor
Shared Community Space; and More.
H
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900E WA
The Numbers:
SES OF FUNDS
Total
AND
$
1,000,000
ARD CONSTRUCTION COSTS
$
35,200,000
SOFT COSTS
$
7,874,235
Architectural & Engineering
Architectural
$
1,760,000
Legal & Organizational
$
315,000
Marketing & Lease -Up
$
710,488
Financing
$
837,704
General & Administrative
$
280,000
ther Development Fees
$
3,895,749
OTAL USES OF FUNDS
$
44,074,235
SOURCES OF FUNDS
Equity $ 23,074,235
Investor Equity $ 23,074,235
F&C Equity $ 1,123,234
IRB $ 3,951,001
State Grant / Other Applied to Hard Costs $ 18,000,000
Non -Cash Equity / Deferred Fees -
Deferred Developer Overhead -
Land Contribution -
Other Contributed Fees -
Construction Loan $21,000,000
Deferred Developer Overhead
ITOTAL SOURCES OF FUNDS $44,074,235
The rS7'.$18 million
The City of Salina is seeking supplemental funding for the hard costs of developing residential
apartments providing 220 new housing units rented at market rate. These developments will include
multiple unit sizes and inviting common spaces to accommodate our diverse and growing workforce.
Why:
0 Create 220 new housing units within 3 years - helping to meet increasing housing demands