410 E. Grand

Overview and Update
for
Streeterville Stakeholders
Agenda
Team Introduction
•Golub & Company LLC
•Chicago Metropolitan Housing Development
Corporation (CMHDC)
•WeeksWeldon Development Company
(Weeks Weldon)
• Solomon Cordwell Buenz (SCB)
General Project Overview
Affordable Housing Details
Q&A
2
Team Introduction
Golub & Company LLC
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Master developer for entire project and developer of market
rate tower apartments
Active in Streeterville for more than 40 years
Has developed, owned, managed or leased more than 7 million SF
of projects in Streeterville, including:
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The Streeter and Streeter Place
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680 North Lake Shore Drive
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541 North Fairbanks
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John Hancock Center
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625 North Michigan Avenue
Active in GNMAA, Streeterville Organization of Active Residents
(SOAR) and Streeterville Chamber of Commerce
Sits on GNMAA Planning and Development Review Committee to
vet development efforts, signage and streetscape guidelines
4
Chicago Metropolitan Housing Dev. Corp.
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Co-developer and manager of affordable apartments
CMHDC is a 501©3 non-profit housing development corporation
founded in 1982.
CMHDC has strong financial position with close to $50 million in
assets.
CMHDC owns over 625 affordable rental units in the
metropolitan area.
Rents of existing projects range from $525 to $1,400.
5
WeeksWeldon Development Company
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Co-developer of affordable apartments
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Company was formed in 2007 to engage in various real estate
activities in and outside of the United States.
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Prior to forming WeeksWeldon, Tom Weeks was President of
Related Midwest, a leading developer of market-rate as well as
affordable housing.
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Under Tom’s leadership, Related Midwest developed several
projects in the area, including:
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340 East Randolph
840 North Lake Shore Drive
250 East Pearson
270 East Pearson
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SCB
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Architect for market rate tower and affordable apartments
Renowned 80 year old Chicago-based architectural firm active in
and headquartered in Streeterville
Neighborhood projects include:
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Streeter Place
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The Streeter
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Park View
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340 on the Park
Committed to intelligent planning and sustainable design
7
General Project Overview
Site Location
Aerial Plan Photograph
Aerial View Looking North
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Massing
•Project massing and orientation respect
neighborhood context
•L-shaped site enabled program to include
two housing types while minimizing bulk
•10.87 FAR: 10% less than allowable
12.00 FAR
•No zoning bonuses used
•Major building elements:
Tower Apartments (443 units)
Mid-rise Apartments (87 units)
Concealed parking (297 spaces)
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Major Building Elements
•L-shaped Site
•Tower Apartments
•Grand Ave & McClurg Ct.
•Mid-rise Apartments
•Ohio St.
•Landscaped Amenity Deck
•Concealed parking below
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Building Section & Organization of Uses
•42 Story Tower Apartments
•10 Story Mid-rise Apartments
•7 Story Parking Deck
•Concealed Parking
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Street Level Plan
•Tower Apartment Entry
•McClurg Ct. mid-block
•Vehicular drop-off
•Mid-rise Apartment Entry
•Ohio St.
•Parking Access
•Ohio St. Entry
•Grand Ave. Entry & Exit
•Retail Corners
•Sidewalk Widening
•12’-6” at Grand
•31’ along McClurg at Ohio
•22’ along McClurg at Grand
•Raised Landscape Planters
•Internal Loading Dock
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Typical Podium Level Plan
•Concealed Parking
•Screened by :
•Mid-rise Apartments
along Ohio St.
•Tower Apartments
along Grand Ave. &
McClurg Ct.
•Architectural Facades
along McClurg Ct. and
interior property lines
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Amenity Level (8th Floor)
•24,600 sq. ft. Landscaped
Terrace
•Separate Terrace Areas
for Tower and Mid-rise
Apartments
•Trellis feature at Ohio St.
& McClurg Ct.
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Typical Apartment Levels
•Mid-rise Apartments
•Tower Apartments
•Window Bays direct views
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Architectural Character
• Tower & Mid-rise Exterior Wall
•High Performance Glass and Aluminum Wall
System
•Street Level Exterior Wall
•Architectural Pre-cast Panel System
•Glass & Aluminum Storefront System
view from McClurg Court & Grand Avenue
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Architectural Character
• Tower & Mid-rise Exterior Wall
•High Performance Glass and Aluminum Wall
System
•Street Level Exterior Wall
•Architectural Pre-cast Panel System
•Glass & Aluminum Storefront System
view from Grand Avenue
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Architectural Character
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Architectural Character
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Affordable Housing Details
Public Policy Reasons for Providing Affordable Housing
•The Affordable Requirements Ordinance (A.
R.O.) in conjunction with the Chicago Zoning
Ordinance requires that housing
developments over a certain size provide
affordable housing units or a cash payment
in lieu thereof.
•Locating affordable housing close to
employment centers creates the opportunity
to reduce the use of private automobiles in
favor of local public transportation.
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Public Policy Reasons for Providing Affordable Housing
From Chicago’s Five Year Affordable Housing Plan
for 2009 – 2013:
“Affordable housing is an asset to every
neighborhood and to the city as a whole. It helps
ensure that Chicago continues to be home to
people of many different ages, incomes, and
backgrounds.”
“Affordable housing helps build healthy
neighborhoods. It creates a market for new retail
stores, restaurants, and other neighborhood
amenities.”
“Affordable housing is good for the economy of
the entire city. While housing costs are
minimized, low- and moderate-income families
have more money to spend on other items,
including education, the passport to a better life
for their children. Affordable housing also creates
jobs in construction, building management and
other industries.”
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Proposed Affordable Housing at 410 E. Grand
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Every new multi-family housing development over a certain size is
required by the Chicago Zoning Ordinance to provide affordable housing.
Developer has the option to provide such housing on site or contribute to a
City fund for investment in affordable housing.
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This site is well suited to include affordable housing because of the site
configuration and proximity to multiple institutional, hospitality, and retail
employers.
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There are two fundamental ways of providing for affordable housing
– Through subsidy programs, (public housing, Chicago Low Income
Trust Fund, Section 8 housing) … or
– Through financing programs
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Low Income Housing Financing Programs
Financing programs utilize public funds or tax credits to enable developers
to create housing and make it affordable to lower income residents. These
programs offset the development and operational costs of the project. The
savings are then passed onto the tenants in the form of lower rent. Such
financing programs include:
•HOME loans
•Community Development Block Grants (CDBG)
•Illinois Housing Trust Fund
•Illinois Donation Tax Credits
•Low Income Housing Tax Credits (LIHTC)
The 410 E. Grand project will utilize Low Income Housing Tax Credits.
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Low Income Housing Tax Credit Program
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Sponsored by the Internal Revenue Service under Section 42 of the IRS code.
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Program is administered in Chicago by the Department of Housing and
Economic Development and by the Illinois Housing Development Authority in
the State of Illinois.
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The program provides a dollar for dollar tax credit incentive to investors to
facilitate the development of affordable housing units.
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The project is owned by a private limited partnership, not a governmental
entity.
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There are fixed income limitations for households living in the development
which apply for 30 years.
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Building will be owned by Limited Partnership
The Chicago Metropolitan Housing Development Corporation (CMHDC) and
WeeksWeldon Development Company LLC will be the general partners.
CMHDC
– CMHDC is a 501©3 non-profit housing development corporation founded in 1982.
– CMHDC has strong financial position with close to $50 million in assets.
– CMHDC owns over 625 affordable rental units in the metropolitan area. Rents range from
$525 to $1,400.
WeeksWeldon
– WeeksWeldon is a company formed in 2007 to engage in various real estate activities in and
outside of the United States.
– Prior to forming WeeksWeldon, Tom Weeks was President of Related Midwest, a leading
developer of market-rate as well as affordable housing.
– Under Tom’s leadership, Related Midwest developed several projects in the area, including
340 East Randolph, 840 North Lake Shore Drive, 250 East Pearson and 270 East Pearson.
27
Median salaries for workers in the area
Approximate average salaries (from industry sources for 60611 zip code) in the
healthcare, hospitality and retail industries in Chicago:
Health Care
Median Salary
Admitting Clerk
$30,200
Medical Assistant
$31,500
Emergency Medical Technician
$31,600
Anesthesia Technician
$36,400
Case Worker - Home Care
$46,400
Medical Laboratory Technician
$44,100
Physician Residency Coordinator
$48,700
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Median salaries for workers in the area
Retail
Median Salary
Retail Cashier - Full Time
$22,000
Retail Sales Staff - Full Time
$24,900
Department Retail Sales Manager
$36,300
Retail Store Manager
$49,700
Visual Merchandiser
$50,200
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Median salaries for workers in the area
Hospitality
Median salary
Tipped Bell Staff
$8.08 /hr + tips
($16,800/yr + tips)
Housekeeping/Room Attendants
$15.00/hr- ($31,200/yr)
Kitchen Cooks and Stewarding
$14.85-$16.86/hr
($30,900-$35,100/yr.)
Hotel Desk Clerks
$16.32/hr ($33,900/yr.)
Hotel Manager Assistant
$54,300
Hotel Resident Manager
$68,800
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Affordable Apartment Units
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The building has 70 tax credit apartment units. These units are for
individuals and families with incomes not exceeding 60% of area median
income (AMI).
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The maximum allowable income level varies by family size. Rents do not
change based on the income of the tenant.
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The renter either qualifies or not to rent a unit based on his/her ability to
pay the rent, credit and criminal background. Renter may receive a
subsidy.
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Income Limitations for Tax Credit Units
Tax Credit apartment units are limited to low income households
making less than 60% of area median income (AMI).
Tax Credit Income Limits for the Chicago Metro Area
60%
AMI
1 PERSON
LIMIT
2 PERSON
LIMIT
3 PERSON
LIMIT
4 PERSON
LIMIT
5 PERSON
LIMIT
6 PERSON
LIMIT
$31,440
$35,940
$40,440
$44,880
$48,480
$52,080
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Income Limitations for Tax Credit Units
17 apartment units are considered “unrestricted” whereby individuals
not exceeding 120% of area median income (AMI) can qualify to rent
one of these units.
120%
AMI
1 PERSON
LIMIT
2 PERSON
LIMIT
3 PERSON
LIMIT
4 PERSON
LIMIT
5 PERSON
LIMIT
6 PERSON
LIMIT
$62,880
$71,880
$80,880
$89,760
$96,960
$104,160
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What are the rents in the building?
Number of units
Rent
Studio
60% AMI
5
$655
Unrestricted
1
$1,000
60% AMI
32
$695
Unrestricted
9
$1,600
60% AMI
27
$830
Unrestricted
5
$1,900
60% AMI
6
$960
Unrestricted
2
$2,200
Total
87
1 Bedroom
2 Bedrooms
3 Bedrooms
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Property Management /Selection of Tenants
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To be professionally managed by private company.
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Kass Management currently manages the CMHDC portfolio.
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Kass Management is a full service Chicago-based property manager
operating 9,000 rental, condominium and retail units throughout Chicago.
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On site manager and maintenance staff.
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The application includes a criminal and credit check, and an employment
and income verification.
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Financial analysis is conducted to ensure that the renter is financially able
to pay the rent.
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Potential tenant is interviewed and rules and regulations are explained.
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Thank You