More downtown housing allocations

[OurTulsa]

http://www.tulsaworld.com/news/article.aspx?subjectid=334&articleid=20091116_11_A1_FrtSre311318

Sager is looking for more money...guess he found some more bricks to wash.  I'm looking forward to the Mayo Building finishing and am intrigued by the new construction proposed over near the East Village.  I know of a couple of other buildings downtown being considered for conversion.  Though it's slow, I like the way downtown housing is organically emerging in various sections.


Downtown residential projects eye Vision funds
The sites are competing for $769,000 targeting the Central Business District.

First Street Lofts will have 18 residential units and ground-floor space for a grocery, deli and restaurant. JAMES GIBBARD / Tulsa World

 
By P.J. LASSEK World Staff Writer
Published: 11/16/2009  2:23 AM
Last Modified: 11/16/2009  3:43 AM

Four downtown residential projects are vying for $769,000 in Vision 2025 funds that will be awarded as a no-interest, 10-year loan.

The amount is what remains of the initial $10 million allocated from the $535 million Vision 2025 sales-tax package.

The funds were designed to be repaid and used as a tool to stimulate downtown, said Julie Miner, the city's economic development coordinator.

The funds are to be spent on promoting economic vitality within Tulsa's Central Business District in the form of housing, she said.

The Vision Downtown Housing Committee will review the project bids to ensure they meet the eligibility requirements, Miner said.

She said the schedule is to have the committee make a recommendation to Mayor Kathy Taylor before she leaves office Dec. 7.

Two of the four projects have already received money from the Vision fund.

The projects are the First Street Lofts, at 310 E. First St., a renewal project that actually began in 1980, and the Mayo 420 Building, at the northwest corner of Fifth and Main streets.

Of the $10 million, the First Street Lofts has already received $1.3 million, and the Mayo 420 Building received $3 million. The Mayo Hotel, which recently reopened, also received $4.9 million.

The other two projects vying for the remaining $769,000 are the Detroit Lofts at 105 N. Detroit Ave., near the ballpark, and a mixed-use project, Lofts on Frankfort by University Development Group, to be located on a vacant lot at the southeast corner of Third Street and Frankfort Avenue.

First Street Lofts: Developer Michael Sager through Blue Dome Properties LLC.

Sager requested the full amount, which he said would complete the project that will ultimately have 18 residential units, of which 12 are single-level units and six multi-level units. There also will be a rooftop deck with a view of ONEOK Field.

The ground floor will be available for a grocery, deli, and restaurant. There is parking on site.

The lofts' size estimates range from about 1,100 to 1,800 square feet. There is 4,668 square feet of common space. The monthly rent will be $1.10 per square foot.

The total project cost is estimated at $2.8 million.

The Mayo 420 Building, also known as Mayo Building: Developer Chuck Wiggin through Mayo Redevelopment LP.

Wiggin requested the full amount, which will be used to reduce the amount of first mortgage debt and eventually reduce the cash equity advance used as bridge funding.

The construction is under way and includes the relocation of the downtown YMCA on the ground floor joining Billy's on the Square, which has been located there for several years.

The building is set to have 67 one- and two-bedroom residences and three offices.

The residential units will range from abo ut 625 to near 2,000 square feet. Rent will be $1.25 per square foot.

The total cost of the full project is estimated at $15.1 million. The building was constructed in 1910 and expanded in 1917.

Detroit Lofts: Tori Synder through Brickhugger LLC.

Synder requested the full amount which she said would be used to secure funding for the project. The three-story existing warehouse will be converted into 16 apartments including one- and two-bedroom. The residential units range from about 680 to 1,200 square feet. The rent will be $1.40 per square foot.

The project also includes on-site parking, and a restaurant and grocery store.

The total cost of the project is estimated at $5.5 million.

The Lofts on Frankfort: Yvonne Hovell, Brandon Jackson, and Derek Gates through University Development Group.

The group is seeking only $500,000 of the available funding.

The group's proposal states the funding would be used to finance 26 underground parking spaces.

The group is in final negotiations with the Tulsa Development Authority to purchase the 0.32 acre of vacant land located in the East Village.

The proposal states the group plans to create mixed-use development in a three-story building. There would be a total of seven office-retail spaces with direct access to pedestrian traffic and 20 residential units and 26 underground parking spaces.

The loft-style residential space will range from 925 to 1,075 square feet.

While Hovell declined to discuss details of the project, the proposal states it would cater to young professionals as well as low- to moderate-income residents.

The total project cost is about $4.8 million.


--------------------------------------------------------------------------------
P.J. Lassek 581-8382
pj.lassek@tulsaworld.com

[sgrizzle]

Just based on the article, I would give it to the east village project and the poorly-named Mayo420 project. I think we need to be giving money to larger projects instead of just 12 unit high$ lofts. Those buildings can more easily justify costs than the units aiming at closer to $1psf rates.

[Vision 2025]

Just based on the article, I would give it to the east village project and the poorly-named Mayo420 project. I think we need to be giving money to larger projects instead of just 12 unit high$ lofts. Those buildings can more easily justify costs than the units aiming at closer to $1psf rates.

Just one point of clairification... there is no "give" this is for a 10 year no interest loan.

[TheArtist]

The East Village project sounds like a good one if they get all their ducks in a row. I would agree, loan the money to that one and the 420 lofts.

[sgrizzle]

Just one point of clairification... there is no "give" this is for a 10 year no interest loan.

There is a give, there is just an expectation of return.

I've given plenty of people money, although it was called a loan at the time.

[Vision 2025]

There is a give, there is just an expectation of return.

I've given plenty of people money, although it was called a loan at the time.

Try telling your mortgage company you thought it was a gift...

These loans are in the position of a 2nd mortgage with an established limit on the amount of the first position. 

[DowntownNow]

Vision2025...that may be well and good but the fact that they are in a second position to any mortgages filed on the properties leaves them vulnerable if the project fails to complete development for lack of funding.  I would think the ability to fully fund the project should have been at the top of the list of criteria along with more direct oversight and benchmarks in place to insure that development is on schedule and in line with draw requests.

Sager seems to have another $850,000 mortgage on the building in addition to the $1.3 million from TDA.  Thats if he satisfied the existing $580,000 taken out by mortgage 6 months before that.  His orginal estimate was $2.8 million to complete, revised over the years to upwards of $4 million...even applying the two together at $2.15 million, he was shy .65 million to complete based on his original budget...before he took out every brick, one by one, washed them tucked them in nice and neat and kissed them goodnight.

Several months ago, you Vision2025, stated you had no doubt Sager would finish his lofts..now here he is saying that if he doesnt get this funding his project is dead in the water.  How is it that he can tell the Tulsa World that all he needs to finish is this $769,000?  No one in their right mind would believe thats all its going to take to completely finish those.

I say let the East Village developer have the funds to encourage further development in that section of downtown.  Mayo420 needs to come up with balance of their funding out of pocket given they already have received and their proforma questioned over a year ago by BOK.  Snyder's should have no problem financing the full bulk of their project if the ballpark is truly supposed to do what it was billed as.

[Nic Nac]

"The group is seeking only $500,000 of the available funding.
The group's proposal states the funding would be used to finance 26 underground parking spaces. "

$19,000 per space?  I would be interested to see how they offer "low to moderate income" tenants with this cost in parking alone. 

The loan should certainly be contingent upon the borrower providing evidence that any additional funds needed are available to complete the project.  If the Frankfort and Detroit projects can do this then I would go with one of them.

[AVERAGE JOE]

"The group is seeking only $500,000 of the available funding.
The group's proposal states the funding would be used to finance 26 underground parking spaces. "

$19,000 per space?  I would be interested to see how they offer "low to moderate income" tenants with this cost in parking alone.

Actually, $19,000 per space is not bad at all for underground parking. Rule of thumb for underground parking is $25,000 per space.

The loan should certainly be contingent upon the borrower providing evidence that any additional funds needed are available to complete the project.  If the Frankfort and Detroit projects can do this then I would go with one of them.

I agree 100%.

[SXSW]

"The group is seeking only $500,000 of the available funding.
The group's proposal states the funding would be used to finance 26 underground parking spaces. "

$19,000 per space?  I would be interested to see how they offer "low to moderate income" tenants with this cost in parking alone. 

The loan should certainly be contingent upon the borrower providing evidence that any additional funds needed are available to complete the project.  If the Frankfort and Detroit projects can do this then I would go with one of them.

That is pretty standard for underground parking.  The excavation, concrete, and structural work involved with building underground parking is often prohibitely expensive which is why you rarely see it in Tulsa.  I really admire developers who build underground parking here.

[Red Arrow]

What would be a reasonable cost for above ground parking garage spaces per space?

[PonderInc]

There are currently 554 buildings in downtown Tulsa.  There are also 353 parking/vacant lots in downtown Tulsa.

Assuming the East End development will be well-designed and constructed...

Anyone who wants to 1.) build on an empty lot 2.) locate the parking underground 3.) build a mixed-use development and 4.) create affordable housing downtown...

I think they should get a slice of the pie.

[Vision 2025]

What would be a reasonable cost for above ground parking garage spaces per space?

A reasonable budget number for structured above ground parking on a reasonable scale (say 3 decks high) is $13-15,000 per space in current dollars.

[OurTulsa]

Does anyone know why in the world it's taken Sager forever to complete the conversion of the building on 1st St?  It's not that big of a building.  Seems like the Mayo Hotel was purchased, planned, and renovated in the time his building has been under re-construction.  The Mayo is 3-4 times the size and adapted for many multiple uses. 

I wouldn't care as much if we weren't giving public assistance and considering giving more.  I can't imagine the Mayo was in better shape.  Maybe I'm comparing apples and oranges.  I don't know what it takes to convert an old building and I don't know what the insides of either of these buildings looked like but my perception is that the conversion of both of those buildings should have been comparable relative to size.  What gives?  Is he really close to completion and this money will get him over the next few months to an openning date on the horizon?

[sgrizzle]

It is taking longer because he has a very small crew. Also, he has been riding out the economy which has dropped his contsruction costs in many areas considerably. I believe he changes aspects of the design regularly as well.