1. Motion for Letter of Support - Spring Creek ApartmentsPlanning Department
201 Is' Avenue lEut
Ka ffspell, MT 5"01
Phone: (406) 758-7940
Pax: (406) 758-7739
w►ewAslis lixoWulanninp-
R PORT'1'O: Kalispell Mayor and City Council
FROM: 'Tom Jentz, Director
Myrt Webb, Interim City Manager
SUBJECT Tim German Spring Creels apartment 7`ax Credit Hai- sing Proposal
MEETING DATE. January 5, 2009 Council Agenda
BACKGROUND: Tian German, wonting with that Sparrow Group from Missoula is in the
process of completing his first phase of a 66 unit, 2 phase rental housing development
financed with tax credits. The site of this project is located on the north side of Appleway
several hundred feet west of the South Meridian intemectioan. The developer received tax
credit financing approval for just the first 33 units in January, 2008. This first ,phase is
well under construction with a completion date of late spring. Mr. German is now
playacting to pursue the second phase also containing 33 units. The site is properly zoned
and Mr. German needs only to secure a building permit for his text 33 unit phase.
The par -row Group proposes to use tax credits again to finance the second phase of the
project. The Tax Credit Housing Program is a federally monitored prograrn that allows
developers to have access to fairly favorable financing for the purpose of constructing and
maintaining affordable housing (rental .apartments). Tax credit lousing is pursued and
developed entirely by private enterprise. Allocations become available once a year and are
fairly difficult to secure as there is much competition statewide for the funds. Prior to the
Appleway► apartments, the Kalispell area has not seen a taco credit funded project for maw,
Years.
As a development team pursues continuation of last year's tax Credit project there are
many criteria that make an application more fundable. Oric of these criteria includes a
public hearing, opportunity for public comment and a letter of ;support from the local
government affirming the need for affordable housing in our community.
Attached please find a more thorough desoription of the tax credit housing program franc
Mr. German, the proposed rent structure provisions and a. site plan showing the
apartments.
R OMMLrNDA'1`3C N.- Staff recommends that thee council hold a public hearing, listen to
the presentation by the developer, receive any public comment and if the council is
favorable, direct the mayor to submit a letter of support to the Sparrow Group affirming
the need for affordable housing projects in the community.
FISCAL. EFFECTS- None at this time. if the project is developed, the tax credit
housing, will provide affordable housing opportunities to many families within the city.
ALTERNATIVES:
Respectfully submitted,
Tom, Jentz
Director
As suggested by the city council.
Report 4--ompikd: Deccmber 30, 2008
4 M�t We
Interim City Mai3ager
Cc Theresa White, City Clerk
Tim German, Sparrow Group, 619 SW Higgins Avenue, Ste E, Missoula, MT 59806
December 19, 2008
Honorable Pamela B. Kennedy
City Council. of Kalispell
PO Box 1997
Kalispell NIT 59901
RE: Staring Creep Apartments Phase 2
Appleway Drive
Dear Mayor andCouncil Member,
We are writing you about the second phase of the Spring Creek Apartments, About this
time last year, we came before you hoping to huild Phase 1 of the Spring Creek Apartments.
With the council support, and the support of the Montana Board of Housing, we have been
able to bring that dream to life. As you know, those units are now under construction, and
scheduled for opening and occupancy late spring of 2009.
With the trernenduus need for affordable housing in Kalispell unchanged, and the council's
continued support, we would like to proceed with the second phase. The building design
will match what is already in place. Below is a brief summary of the 33 units proposed For
phase 2.
Two Bedrooms,1 1/2 Bath
11 units renting for $489 per month
7 units renting for $610 per month
Income limits;
Family of 2: $2S,800
Three Bedrooms, 2 Bath
9 units renting for $550 per month
6 units renting for $689 per month
Family of 4: $32,22,0
All units include washer and dryer, microwave, balcony or patio, covered parking
and storage,
The units (2 bdrm @ 1,009 sq. ft and 3bdrm @ 1,303 sq. ft.) will be the largest in the
market
• 54 year recorded agreement with MT Beard of Housing to limit tents.
• Excellent central Kalispell location, close to schools, shopping, hail to Trails, and bus
line.
* On -site manager and maintenance will ensure property is kept up
• Sparrow Croup has 15 years of experience developing and operating affordable
multi -family housing in Montana, Wyoming, Borth Dakota and Washington.
• ,attached please Lind unit Layouts and an overall site plan.
Like this time last year, we are requesting a letter supporting this tax credit -housing
proposal, Spring Creep 2, The city's support is one of the strongest factors taken
into consideration by the Montana Board of Housing. Should you have any
questions about this Spring Creek project, please do not hesitate to contact roe.
Kindel Bards,
Spar= -
R 6 U R im German
619 _'V4', HIGGINS AVE, STE E MISSOULA, MT 59803
(406) 25I-SO76 I rAX (406) 5414944 f SPARR0WGROUPLLC,C0&4
I
PPLE�V`A Y DRIVE
5EDROOM I T FLOOR
5EDROO I' [) FLOOR 2 BE ROOM 3RD FLOOR
El El H F-,
5EDF,0 t-I 1ST FLOOR
Spring Creek Apartments
KALISPELL, MONTANA
Spring Creep 2 is the final phase of the Spring Greek
project. It is designed with luxury and class to accommodate
family living at an affordable price. Shopping, banking,
schools, transportarion, recreation, and other valuable services
are within walking distance.
Located at 10 Appleway Drive, Spring Creek 2 will provide
33 two and three bedroom apartments with covered parking.
Not only is each unit equipped wirh essential appliances,
you, will also enjoy the convenience of a microwave raven and
a washer and. dryer.
s t
s r
44M
C
Sparrow Group 1619 SW Higgins Ave, Suite E I Missoula, MT. 59803
eel; 406.251.50761 Fax: 40 .541.4944 1 www.sparrowgroupllc.com
Unix mix!
- 18 rwo bedroaraw units,
1,009 sq ft. l Bath
- 15 three bedrooms.
1,303 sq ft. 2 bath
Nlrsnchly Itent2.i lanes:
2 Bed - $489 ar $610
3 Beni - $550 or $689
Max Famil v Income:
. 2 Prawn I lwii chofd - $25,800
- 4 Fresco F1ij ttQhotJ - $32,220
Unit Amenities.
Prow free R,cfrigcratur
R,.Lngc — Srovt:/0vcn
• Dishwasher
- Disposal
• Nlicrowavc
- uhcr/Drycr in U4
Air Conditioning
I�itialBalc�ztr
• Blinds
Master Bedroom Ceiling Pam
Neutral Paint calots
Ha.rdwond Cabinets
Project. Amenities:
On Site Nlanagtmi O i c
- 1,000 sq ft. Community
Room ► / Kitchen
Cc►vcrcd Parking
Resident Sroragc
Children flak' Area
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Sppaorow