According to plans announced last week, 11 acres of land along US Highway 40 in Steamboat Springs, known as Mid Valley, could eventually have multiple four-story buildings with as many as 200 homes. there is.
The Yampa Valley Housing Authority purchased the land in December with an anonymous donation of $ 6 million. This is the second donation from an unnamed donor who donated $ 24 million to enable the purchase of Brown Ranch last summer.
The details of the Mid Valley project are in the early stages, and the Housing Corporation will need to approve a memorandum of understanding with Centennial-based developer Lone Tree Trust next month. However, Executive Director Jason Peesley said it was the best deal considered by the housing authorities.
“It was clear that the Lone Tree Group offered us the best deal by far and produced the most units,” Peesley said.
To bear fruit, the 200-unit project is the largest housing corporation project to date, and Sunlight Crossing, which will soon be leased with more than 800 names, shows achievable housing demand. Because it has been done. To the list of interest.
“(Mid Valley) will provide 200 units,” said Peesley. “Knowing that Sunlight (Crossing)’s list of interests now includes 800 makes the fact that we need to develop a large supply clearer.”
After purchasing the land in December, the housing authorities immediately submitted a request for proposal for property development.
According to Peasley, the Housing Corporation received six proposals, none of which were what the Housing Corporation was looking for. After giving the developers a little more guidance, each resubmitted another proposal in February.
The Housing Corporation development team then met to review the proposal and selected two for a follow-up interview. The development team then unanimously embarked on a loan tree proposal.
“In the end, the nominations from the development team were unanimous,” said Katy Meyer, a board member of the Housing Corporation, assuring other board members that it was the right choice. “Both proposals had their strengths and weaknesses, but overwhelmingly, the one we recommend is the overwhelmingly strong number one.”
The proposal includes 200 certificate-restricted units servicing households that account for 80% to 150% of the median income in the region. This is similar to Sunlight Crossing, which targets people who create 80% to 120% of AMIs.
There are also combinations of rental units and units that may be listed for purchase. The Housing Corporation and developers need to work together to come up with numbers about what the ratio will be.
As presented, the Lone Tree Trust handles the financing of the project and provides financial guarantees for the project. Peasley points out that it limits the risks of housing authorities.
Authorities will donate land and a cash subsidy of $ 10,000 per unit, which is $ 2 million for 200 units. Authorities will also tip in qualification services and take advantage of tax exemptions if available.
The Housing Authority will also be the real estate manager for the rental unit, facilitating real estate transactions on the sales side of the project.
Peasley said this was the first time housing authorities had begun trading with land, and Loantree’s willingness to treat the authorities like a true partner in the project helped the authorities choose. Peasley said the deal with Lonetree has a lot of room for action. This gives him even more confidence.
“Assuming all this is modeled, at least at the moment, it’s a very good deal for Kosha and could be set up very well for the future,” said Peesley.
To contact Dylan Anderson, call 970-871-4247 or send an email [email protected]..