236
The Lund Company
450 Regency Pkwy, Suite 200 Omaha, NE 68114
same
www.lundco.com
LinkedIn, Facebook, Twitter
Jason Fisher
CEO
jfisher@lundco.com
+1 (402) 393-8811
Yes
This grant proposal is to support the “Cottage Grove Townhomes” project at 3012 Cottage Grove Avenue, Omaha, Nebraska 68131, located in the qualified census tract #51, zoned R7. The project team is comprised of: ● Jason Fisher, CEO, The Lund Company - Project Lead, 40 years ● Tim Mettenbrink, Senior Strategic Advisor, The Lund Company, 40+ years ● Carisa Ames, Senior Project Manager, The Lund Company, 18+ years ● Tanya Shapiro, President, The Lund Company, 20+ years ● Alley Poyner Macchietto, Architecture Consultants
Lund has 3 primary divisions: ● Project Management and Development Services ● Property Management ● Brokerage Services John Lund, Chairman Jason Fisher, CEO Tanya Shapiro, President Ryan Hill, CFO More complete information is provided in the application attachment.
Lund has a rich history of adding to the Omaha commercial scene over its 40 years of achieving its mission, To be a catalyst that maximizes the value of real estate to building owners, occupants, the community and the environment. Its noteworthy accomplishments include: ● Initial development of Omaha’s Blackstone District. Developed an overall vision for this once thriving commercial corridor and led a group of investors that assembled six properties in an effort to change what had become a blighted area. Between 2007 – 2010, spearheaded efforts with community leaders to create a Business Improvement District (BID), change traffic patterns to two-way, improve street-scaping and a pedestrian experience and realize his vision for the area. ● Redevelopment of 450 Regency Parkway. Led a group of investors to purchase and rehabilitate this dilapidated building that had sat vacant for three years. The group took a challenging floor plan with a 4-story atrium and creatively found a way to turn it into a Class A, multi-tenant office building. The first redevelopment of its kind in the area, several properties have been modified utilizing some of the design characteristics in this project. In essence, the building is brand new. A new entry façade and a completely renovated interior, which added windows wherever possible, created a very modern and transparent aesthetic. ● PayPal / Ebay Operation Centers. Phase I consisted of A 115,000 SF build-to-suit project; phase II was a 127,000 SF facility that completed PayPal’s operational campus and housed 1400+ employees. ● Securities of America Headquarters. Development and capital formation for a 90,000 SF building and phase II a 68,000 SF, $21 million project. ● 15950 West Dodge Road. Speculatively developed a 92,000 SF, $18M, 4-story Class A office building. ● 450 Regency. Redevelopment of a vacant, Class B office building into one of Omaha’s most unique and prestigious Class A buildings in the area. Project cost $19M. Received CRE Summit Development of the Year award in 2012. ● Landmark Building. Redeveloped the existing 275,000 SF, 15-story office building and added a Marriott Autograph hotel, The Farnam, to the space. Project cost $65M. Received CRE Summit Development of the Year award in 2022.
Cottage Grove Townhomes
4600000.0
1500000.0
Capital project
This grant proposal is to support the “Cottage Grove Townhomes” project, redeveloping an unoccupied lot located in the qualified census tract #51, zoned R7; building 6 townhomes with 18 units in total (majority 2-bedroom) for affordable rent and providing built-in broadband access (1 Gig). The lot is at 3012 Cottage Grove Avenue, Omaha, Nebraska 68131, purchased by Lund in May 2022 for $275,000. The .46 acre lot consists of a dilapidated, vacant house with a large undeveloped yard. It sits off Cass Street, just west of 30th Street. Lund has talked to the City of Omaha’s department of planning to declare excess square footage on adjacent parcels at 554, 556 and 558 North 30th Street; that could be purchased adding aesthetic value, creating “green space” usage and better access to parking. The excess not needed by the city (for sidewalk and easement to Cass and 30th Streets) is expected to be able to be acquired for approximately $30,000.
Lund has completed conceptual design and forecasted budget. Upon approval of this grant proposal, Lund will engage Alley Poyner Macchietto to complete design. The schedule is as follows: Select General Contractor - July 2023 Team Assembly & Integration - August 2023 Key Driver Estimation & Schematic Design - September 2023 Design Development - November 2023 Produce Construction Documents - December 2023 Subcontractor Bids - March 2024 SubAwards, Mobilize - June 2024 Construction - July 2024 - July 2025 Substantial Completion - July 2025 Punch List / Move-in Starts - August 2025 Complete - Date - September 2025
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Fundamental Change (i.e., a proposal that will continue to elevate North or South Omaha's presence and perception within the region, significantly improving the lives of area residents through physical development) Long-Lasting Economic Growth (i.e., a proposal that will foster gainful employment opportunities and financial investment in the area, leading to the creation of generational wealth and widespread economic vitality in North and South Omaha) Transformational (i.e., a proposal that will help energize, recharge, or spur significant and favorable advancements in North or South Omaha's function or appearance)
Multimodal Transportation (i.e., enable connectivity through driving, biking, taking transit, walking, and rolling) Quality of Life (i.e., create or enhance natural spaces, mixed uses, parks, safety, etc.) Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)
Framing up the Challenge (sources: Urban Land Institute & Costar) America’s multifamily housing stock for “lower- and middle-income renters”—those who earn up to the area median income (AMI)—is slowly but surely disappearing. The often overlooked apartment properties that provide decent, affordable homes for millions of workers, senior citizens, and young children in households with modest incomes are in demand in all parts of the country including Omaha. These “workforce and affordable” properties are an essential element of our national infrastructure and the fabric of our local communities. They will not likely be replaced in nearly the numbers that are needed, absent unforeseen policy interventions. The continued loss of this critical if underappreciated real estate asset class, already playing out in many markets, will impose ever-greater social and economic costs on our country in the years ahead. “Preserving” the nation’s existing housing for lower and middle-income renters—ensuring that it remains in good physical condition and affordable to households that most need it—must be a top priority for the real estate community, public officials, and the nation as a whole. Lund Company is one of the highest profile real estate development companies in Omaha and the midwest region. Managing over $1 billion in assets, and employing over 400 people managing over 8 million square feet of real estate, the Lund Company knows housing, and building, transportation mass, and scalability. This grant proposal is to support the “Cottage Grove Townhomes” project, redeveloping an unoccupied lot located in the qualified census tract #51, zoned R7; building 6 townhomes with 18 units in total (majority 2-bedroom) for affordable rent and providing built-in broadband access (1 Gig). The lot is at 3012 Cottage Grove Avenue, Omaha, Nebraska 68131, purchased by Lund in May 2022 for $275,000. The .46 acre lot consists of a dilapidated, vacant house with a large undeveloped yard. It sits off Cass Street, just west of 30th Street. Lund has talked to the City of Omaha’s department of planning to declare excess square footage on adjacent parcels at 554, 556 and 558 North 30th Street; that could be purchased adding aesthetic value, creating “green space” usage and better access to parking. The excess not needed by the city (for sidewalk and easement to Cass and 30th Streets) is expected to be able to be acquired for approximately $30,000. Continuing explanation is within the application attached.
The North Omaha vision workshop’s key takeaways identified the following topics which will be addressed by the ”Cottage Grove Townhomes” proposal: ● Culture and character integrated into the neighborhood Beautifying the vacant lot will increase property values and beautify the neighborhood. Instilling new affordable housing options for North Omaha will attract several residents into the neighborhood and create opportunities for social interaction, social giving and neighborhood community building. This residential project currently is a vacant lot ripe for development and is located in a Community Reinvestment and Opportunity Zone which will enhance Omaha’s continuing effort at increasing value to its community through housing, business and community interaction. The needs addressed by the revitalization of North Omaha will be answered in this project through community vision and buy-in, easily accessed community resources and by developing residential affordable housing that fits within the cultural context of the neighborhood as well as the North Omaha community.
This project aligns with the Nebraska Legislative LB1024 strategic priorities of being located in the Qualified Census Tract 51, is properly zoned (R7), by fostering a desirable residential transformation and will improve the residential and workforce lives of those in the North Omaha community.
2-4 permanent jobs that will be created paying $150,000/year 70 construction at average $23/hour
2-4
70
This proposal will create 2-4 new permanent jobs for Lund to manage and care for the property. Total added annual payroll is estimated at $150,000. Per a construction superintendent employed with an Omaha developer, it is estimated that this building renovation project will create a minimum 70 construction-related jobs paying an average of $23 per hour.
First preference for sub award consideration will be given to contractors, vendors and suppliers located in the North Omaha economic recovery census tracts.
Adding affordable housing to the mix of homeowners, renters and other residents in the neighborhood will increase the diversity of residents including new wage earners, university students, young families with school age children and young couples looking to live inside a residential neighborhood within close proximity to several entertainment, health and university districts.
The Lund company will be creating newly constructed townhomes upon what is currently vacant lot tracts. Offering multiple family units (18), Lund will maximize incoming neighbors into the townhomes while also not interfering with already intact and viable permanent historic homes. New construction will meet current environmental, energy and building codes that offer security and trust in a residential home setting in an historic district.
The resurgence of the townhouse/rowhouse concept isn’t new, but it has seen a resurgence in popularity in the past 8 years. “Good row house site design creates usable open space in contrast to the useless narrow side yards and exposed front and back yards that are typical of single-family subdivisions, where community social mores often work to inhibit the erection of adequate fences that assure privacy. The row house also fills an apparent vacuum in the housing market, being particularly attractive to married couples under 25 or over 55, who find that neither the typical apartment nor the usual suburban single-family detached house meets their housing requirements.” (https://www.planning.org/pas/reports/report164.htm)
Other than the stated direct impact of construction and operational job creation plus the affordable housing component of this project, no other developer measured metrics are anticipated.
See Above, not applicable
No
No
3012 Cottage Grove Avenue, Omaha. Tract 51
Within one or more QCTs
location documents attached.
Yes
Yes
Yes
No
No
No, Cost estimates have been derived from Lund’s development teams’ experience and pre-construction numbers from general contractors.
No
Cost estimates have been derived from Lund’s development teams’ experience and pre-construction numbers from general contractors.
Grant funds will be used to complete the construction process starting with demolition of the current home, site preparation to the conclusion of construction where occupancy begins. This proposal will provide affordable housing (18 units, average 2 bedrooms) where the tenant rents will sustain the project at an 90% occupancy rate. Rents are anticipated to be $1,762.50/month (with Internet broadband access) on average per unit. If this grant is not received to augment construction costs; rents would then need to be $2,262.50 on the average to make this asset improvement project feasible. By approving this grant, each tenant will save $500 in rent per month ($9,000 total per month); having a significant trickle-forward impact on the financial well-being of those in need of affordable housing units.
Yes
Lund has dedicated personnel starting with a Chief Financial Officer and a Property Manager (with team) that will insure the property’s fiscal well-being and future stability to be a place called “home” for many residents in need of affordable housing.
It is not anticipated that Lund will seek other incentives.
Lund has identified the minimum amount needed of $1,500,000 to make this project feasible for redevelopment specifically for affordable housing classification. Without these funds, the project will not continue OR will need to serve a target market that can afford the higher rent.
No. We will utilize our design team to finalize the design that maximizes the existing site. Based upon preliminary site plans that will be a townhouse style building with 6 townhouse units that will have 18 apartment units. The project is not scalable beyond that. However, we do believe this will spur similar construction projects in the area; serving a great community need of creating affordable housing.
The Lund Company commits to invest $3,100,000 to the “Cottage Grove Project”, directly impacting the qualified North Omaha census tract #51.
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Additional Location Documents (see application for list) Data table of uses (breakdown of how the requested funds will be used for your proposal) Documentation of site control (proof of ownership, option, purchase contract, or long-term lease agreement) Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Pro Forma Proposal Budget/Sources and Uses