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Work Session Memo — Housing Discussions July 23, 2010 Page 2 recover in the near term. They are also very cautious about the senior cooperative market, which has softened due to the iffificulty of existing home sales. Dunbar Development In mid-May Dunbar Development submitted a proposal for a 200 -unit apartment project on Block A (east side). Dunbar acknowledged that there are challenges in the market, especially with regard to rents and financing. His research suggests that rents need to be $1.]0 per square foot to make a project work, but that actual rents are probably closer to $1.40 in 2013. The only way to close this gap is to write down the land cost to zero and even additional subsidy would be required. The other issue concems developing Black A for a residential use and forgoing any possibility to coordinate development on Block B. Dunbar has since indicated that he is not very eager to take on a new project at this time, but he would like to maintain a good relationship with the City. Dominium Dominium's interest in the site has been diHicuk to gauge. Initially, the company was very responsive to our requests for a lour. We did meet with company officials on July 9'h and leamed Mat they still like the site, but have concems over the rent market a" financing. The company agreed to do a'tit plan" to determine building density and a proforma, but so far we have not reserved anything. We did request this information for the work session. Ecumen Emblem would like to conduct a market study before it is willing to commit resources on a site planning and financial analyses. Staff did request that Ecumen address the issue of taxation and whether their developments pay taxes. A copy of their responses is attached. Stuart Company Stuart Company has been the most enthusiastic of the developers about the Northwest Quadrant. In fact, they have prepared a proposal for a 125 unit market -rate building on Madill. A copy of their proposal is also attached. The plan shows a 4 story building with underground parking. The current "L" shaped building design would require additional land in the adjacent greenway area(approximately 8,800 SF). The developer has indicated if they were selected for the project by early August, they could break ground in 2011. Staff has included a preliminary analysis of the financial component by Marc Ruff at Ehlers.