Item C: Capstone Student Housing Development Proposal

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financial obstacles associated with developing multi-unit housing in the city’s core including higher land cost and higher construction cost resulting from multi-story construction, higher quality urban design, parking constraints, code requirements, and environmental conditions related to prior uses. For each MUPTE application, the developer must provide information to demonstrate that the proposed project could not be built but for the benefit of the tax exemption. Staff and the city’s Loan Advisory Committee review the pro-forma and evaluate this conclusion. Council will receive the staff analysis in the materials for the April 23 public hearing on the MUPTE. The developer has indicated that if the MUPTE is not received the return on equity would be insufficient to attract private investment necessary and the project will not proceed. Management: (Also see Attachment B-1 which provides additional information from Capstone on their management policy.) 27.What happens during the summer with higher vacancy rates? Can units be rented out to families, visitors and others? Capstone does allow sub-leases, as the bedrooms are leased on an annual basis. 28.What happens if Capstone isn’t responsible for the management of the project in the future? Capstone has indicated they will not be able to control their continuance of management if the property is sold in the future, however, they believe the likelihood the management team will remain is high. In the case Capstone is retired as the manager at the point of a future sale then it is likely another national operator having a depth of student housing experience would succeed based on the large size and specialty niche the student housing use demands. The size design and size of the property requires the level of on-site full and part time management Capstone is proposing and will be recognized with a potential future owner. 29.Can neighbors in the area contact the “courtesy officers”? The surrounding property owners will have access to a 24/7 response line number in case issues extend beyond the property limits. The residents will have personnel on site 24/7 to respond to complaints and emergencies. 30.How will noise be handled, on (for example from the balconies) and off site (for example going and coming to bars downtown)? The balconies will not enable more than two people to stand in a tight space approximately two feet wide outside the balcony door. The balconies do not allow for residents to congregate on them. Noise will be monitored primarily by the student part time employees whom are assigned to assure the smaller neighborhood areas are being effectively managed. It is typical the student residents will know of and have responded to a noise problem before someone outside of the project does. A community code of conduct is a part of the lease agreement consistent with the laws of the land and those of the student community with consequences in case they are broken. 31.How will the safety concerns of the occupants from Olive Plaza be addressed, particularly with students cutting through on their property?