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Spencer Management LLC (SM)
4411 N. 24th Street, Omaha, Nebraska 68110
2831 Caldwell Street, Omaha, Nebraska 68131
www.spencermanagement.org
Justin A. Moore
President/CEO
jmoore@spencermanagement.org
+1 (402) 201-8246
Yes
Please see attached Organizational Chart
Please see attached Organizational Chart
JF Bloom Building Redevelopment, Renovation and Restoration 4411 North 20th Street, Omaha, Nebraska 68111, Owners: Ames Industrial Park OPPD South Site Renovation Civic Site Work, Demolition, Grading City of Omaha Sewer Separation OPW 53509: Cole Creek CSO 203 City of Omaha Improvements OPW 53948: N. 65th Ave. from Fowler to Ames Ave. OPW 53834: Ames Ave. (85th Ave. to 87th Ave.) / 87th Ave. (Ames Ave. to Boyd Street)
Charles Street View (CSV)
13293342.0
7606182.0
Capital project
This project will offer low-income households a resilient and sustainable solution to the increasing housing shortage, and the pervasive substandard housing options for families in need of affordable options. The project will encompass approximately 45,936 square feet of residential townhomes yielding four (4) new construction, 3-bedroom townhomes, which will create a synergy for community and economic development in North Omaha while meeting the needs of the city, its residents, and the community. This development will be a key component in the preservation of affordable housing in the neighborhood, will enhance the progress of the 24th Street initiative and will also benefit the North Omaha revitalization plan. The project is “shovel ready” and could begin construction as soon as 2Q2023 and will champion sustainable development per the North Omaha Economic Recovery Act. The development site is located within the heart of northeast Omaha and between the North Omaha commercial thoroughfares of 24th and 30th. The streets defining the development's boundaries are 29th Street to the west; Franklin Street to the north; 28th Street to the east; Charles Street to the south; and Seward Street in between north and south. Even with the recent downturn the neighborhood has undergone a tremendous level of price increases over the past few years and a resulting rapid decrease in the supply of decent and safe affordable housing. This development will be a key component in the preservation of affordable housing in the neighborhood. We are requesting LB1024 funds to support the development of the Charles Street View development.
Currently, we are finalizing plans for the CSV townhomes and construction will commence 2Q2023. For this proposal – the CSV townhomes will have finalized designs December 2022 with additional milestones below: • Groundbreaking/Construction Start Phase 1: May 2023 • Construction Start Phase 2: October 2023 • Project Complete: April 2024 CSV Timeline included within the application.
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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)
Policy (i.e., develop or improve context-sensitive education, finance, health, training, zoning, etc.) 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.)
All the citizens of Omaha have the right to live and raise their families in homes that are safe and sound, at a cost that allows them to afford the other necessities of life. The free market for housing is not a fair market for low-income residents. Spencer Management LLC (SM) supports these priorities with our mission to make home ownership of safe, perpetually affordable, and energy-efficient homes a reality for low-income working families in North Omaha. These families typically work in low-paying jobs at the hospital, in manufacturing, in local business call centers, in restaurants and other needed workforce positions which do not pay enough for families to either find a decent and affordable apartment or to achieve the dream of owning their own home. And the majority of homeowners over the past few years have been refugee/immigrants who face additional challenges beyond their incomes. As the City recognizes, the low vacancy rate in North Omaha and the volume of demand “encourages some landlords to allow the quality of their housing units to deteriorate.” Many North Omaha residents have lived in apartments or homes with unsafe electrical, poorly working plumbing and heating, leaks, mold, vermin, and other unhealthy and intolerable conditions. Or, they have not been able to find an apartment or home and are technically homeless, forced to live with family or friends. One of the biggest challenges to building affordable homes for home ownership in North Omaha is the scarcity and cost of land. The land purchase for this project will cost approximately $250,000 before any building begins. The priority of increasing affordable, permanent housing in standard condition for low-income families, particularly to members of disadvantaged communities matches Spencer Management’s (SM) mission for the project with two additions—the homes will be affordable and energy efficient. This project will increase home ownership in Northeast Omaha which will be life-changing for families with the following benefits: • Improved health outcomes including reduced stress, clean air, no toxic materials, or asthma promoting conditions, and cessation of overcrowding. • Increased financial stability with a perpetually affordable home, low utility costs, ability to build equity and increased net wealth especially for low-income and minority families. • Better test scores for children, a higher rate of graduation from high school and a higher rate of post-secondary education.
Dramatically increasing the pace of new home construction and expanding the supply of all types of housing is the only way to substantially reduce the size of the current demand supply gap and thereby stabilize housing costs in a more affordable range. Increasing the supply of available homes, including single family, market rate and affordable housing across the full income spectrum, would be the best way to bring the pace of rent growth and home price appreciation more in line with the trajectory of household incomes. Spencer Management’s (SM) housing development project would help begin to unlock the backlog of pent-up housing demand by supporting household formation, especially among millennials currently living at home with parents and want to stay, live, and work in North Omaha and the aging population with the community. The positive impact of SM’s project proposal is to accelerate new, affordable housing construction in North Omaha to extend far beyond more direct economic measures. Among other benefits, SM’s proposal for increased affordable housing would: • Translate to improved labor market mobility, making it possible for households to seek out new job opportunities wherever they are available. • Provide greater financial stability, enabling individuals and families to keep up with other rising costs of living such as education, health care and childcare. • Enable more households to save for college, retirement, or unexpected future expenses. • Expanding access to the American Dream of homeownership, narrowing the racial homeownership gap, and providing opportunities for building wealth that could help to close the racial wealth gap over time. • Help to reduce or prevent homelessness in North Omaha. Importantly, the combination of increased economic opportunities, expanded availability of affordable housing, greater mobility and financial stability would be particularly beneficial for low-and moderate-income households and communities of color currently facing the greatest housing cost burdens. This development project is one way to reverse the effects of decades of redlining, which made it impossible for many residents and business owners of North Omaha to access wealth building opportunities afforded to majority white communities across the United States.
LB1024 directs significant ARPA, cash reserve, and general funds to pandemic and economic recovery initiatives, with much of it dedicated to North and South Omaha considering these communities were disproportionately impacted by COVID-19. The goal of the funding is to foster desirable transformation, fundamental change, and long-lasting economic growth in North and South Omaha. Low-income working families have great difficulty finding safe and affordable homes and cannot begin to afford, or qualify for, a conventional mortgage for an open market house. Our unique and model of building homes and selling them provides much needed workforce housing. Families who work in North Omaha would like to live and/or stay in North Omaha with the ability to take public transportation to work, lessening their dependence on typically less than dependable cars. This means they can get to their jobs more easily, providing more dependable employees for local businesses. Whether we are building on an empty lot, as we are with the project proposal, or tearing down a decrepit house which is not worth repairing, we are helping low-income families to take the step up out of poverty and to begin a more financially stable future. In addition, the townhomes we build help to revitalize neighborhoods because they are well built and designed while keeping the “flavor” of North Omaha communities. The project proposal aligns with the strategic priorities in all three focus areas. The vacant lot will see a significant new affordable townhome contributing to the vibrancy of North 24th to North 30th Streets corridor and transform the neighborhoods into workforce hubs and community gathering space. This will improve the lives of residents living within 68131 and help spur future investment and development along the corridor. By providing gainful employment and wealth creation opportunities to residents, this will lead to the widespread economic vitality for the North Omaha community.
The LB1024 funding will be leveraged to construct four (4) new construction townhomes. Charles Street View (CSV) project will have 15-20 permanent jobs. Temporary construct jobs will also be created for the development of the project.
15-20
10-15
Superintendents/Project Managers: $28.00-$30.00 per hour; General Laborers: $16.00-$18.00 per hour; Skilled Laborers: $20.00-$27.00 per hour
The initial development of affordable housing creates both immediate and long-term employment opportunities and spending in the local economy. As with market-rate housing, research consistently shows that developing affordable housing creates jobs—both during construction and through new consumer spending after the homes have been occupied. The impacts of building certain kinds of affordable housing are on par with the impacts of comparable market-rate units. Spencer Management (SM) promotes the utilization of Disadvantaged, Minority-Owned, Women-Owned, Emerging Small Businesses, Service-Disabled Veterans Business Enterprises (D/M/W/ESB/SDVBE) contractors, subcontractors, and businesses to promote inclusion and a sustained, vibrant local economy in North Omaha. In addition, our future partnership with the Ames Industrial Park’s Workforce Training Program will strive to maximize work opportunities for women and minorities residing and/or doing business in North Omaha on our projects. In good faith, SM strives to work with minority and female subcontractors and business on the project. The goal will be to hire and retain 20% from subcontractors and/or business in North Omaha.
There are many ways current residents and current businesses, as well as new residents, in North Omaha will benefit from Spencer Management’s (SM) new affordable housing development. SM will pay taxes and impact fees to develop in the project areas, and those funds are usually earmarked for new schools, community programs and for extending important infrastructure to less developed areas. New development also means job opportunities. These jobs occur both in the construction itself as well as future jobs for the stores, restaurants, and services in North Omaha, which will soon count new residents as customers. That, in turn, helps boost the local tax base to pay for community services. At a time when multiple solutions are being sought to address the challenges of climate change, new housing is much greener and more efficient than that built even a decade ago. Our housing plans will include things such energy efficient HVAC products, making them increasingly efficient. A goal of this housing development project is to pay for itself, but also provide monetary dividends for surrounding property owners through higher values and rents. But perhaps most importantly, this project can help reinvigorate a sense of community, especially in North Omaha where obsolete commercial or retail properties in years past led to stagnation.
According to the CDC (Centers for Disease Control and Prevention), “Social determinants of health (SDOH), are conditions in the places where people live, learn, work, and play that affect a wide range of health risks and outcomes.” Neighborhoods and the built environment are one of the five key components of SDOH. Over the last decade, the CDC and other health advocates have continued to provide research on how improvements in neighborhoods, including the built environment, also lead to improvements in health outcomes and quality of life for individuals and families. In addition to providing a tool for economic recovery for individuals and families who are current homeowners, investing in homeownership is also a tool for economic recovery and business attraction. There are numerous articles, peer review journals and data that show the relationship between increased rates of homeownership in low-income neighborhoods leading to more affordable grocery stores, repair shops, and public transportation. Rates of homeownership also are a major factor in business sites selection.
LB1024’s strategically prioritizes housing projects, job training programs, and business development. CSV provides an opportunity for intentional reinvestment, prioritizing displacement prevention strategies to ensure that neighborhoods revitalization is benefiting the individuals and families who make up North Omaha. CSV provides an opportunity for affordable new housing, intentional investment, prioritizing displacement prevention strategies to ensure that revitalization is benefiting the individuals and families who make up North Omaha communities. We believe innovation in community-aligned investment, pairing current resources with federal funding support, achieve sustainable investments with long-lasting impacts.
To create new job opportunities in North Omaha. -Hire 15-20 Permanent Positions (Superintendents, Project Managers, and General & Skilled Laborers) -Hire 10-15 Temp Positions (General & Skilled Laborers) To promote the preservation and investment in North Omaha neighborhoods. -Promote adaptive reuse of existing vacant or under-utilized structures, such as convents, schools, and industrial buildings, into housing with an affordable and/or workforce component, where appropriate. -Encourage the expansion of the capacity of neighborhood associations. -Continue to reduce vacant and abandoned housing in North Omaha neighborhoods through code compliant, affordable single-family homes. To expand the opportunities for homeownership, especially for low to moderate income households in North Omaha. -Partner with local lenders to participate in programs designed to assist first-time and existing homebuyers. -Promote infill housing development opportunities, in the North Omaha’s older neighborhoods, through a combination of public funding and affordable housing incentives. -Promote compact and contiguous development with a variety of higher density housing options that utilize available infrastructure within the existing built environment. -Partner with organizations that provide financial planning for homeownership to ensure that low/moderate income households have the wherewithal to be successful. To provide a variety of housing types, costs, and locations in within North Omaha. -Promote the planning, design, and construction of a wider range of housing unit types in adequate supply for all income levels and age groups. -Encourage and promote energy efficiency in new housing. -Support the continuation of single-family development in appropriate municipal locations at similar density levels as experienced on a community wide basis. -Continue to encourage a wider range of housing types in the residential areas of North Omaha including single-family and multi-family structures, in response to changing housing market demands. -Explore design guidelines for residential development.
Outcomes will be measured through surveys by an independent metrics/evaluations’ specialist.
No. This investment does not serve as a catalyst for co-investment/secondary investment.
Yes
Spencer Management will partner with Ames Industrial Park to provide Workforce Training and Home Ownership/Financial Literacy Seminars to new homeowners and the community.
Ames Industrial Park - MOU
No
4 New Construction, 3 Bedroom Townhomes on the following properties: 2812 Charles Street PIN 2213560000 LEGAL DESCRIPTION: SHINNS 3RD ADD LOT 10 BLOCK Y E 40 FT 40 X 127.5 2816 Charles Street PIN 2213550000 LEGAL DESCRIPTION: SHINNS 3RD ADD LOT 10 BLOCK Y E 20 FT LT 9 & W 20 FT 40 X 127.5 2826 Charles Street PIN 2213540000 LEGAL DESCRIPTION: SHINNS 3RD ADD LOT 9 BLOCK Y W 40 FT 40 X 127.5 2830 Charles Street PIN 2213530000 LEGAL DESCRIPTION: SHINNS 3RD ADD LOT 8 BLOCK Y 60 X 127.5 2834 Charles Street PIN 2213520000 LEGAL DESCRIPTION: SHINNS 3RD ADD LOT 7 BLOCK Y 60 X 127.5
Within one or more QCTs
Please see Attachments
Yes
No
Yes
No
No
Spencer Management LLC, GC NE License #1602671, is the General Contractor on the project providing cost estimates.
Yes
No
Because Spencer Management LLC is the construction manager and general contractor for the project, we will do a public bid process for all subcontractor work. We will solicit qualified Tier I/II, Section 3, DBE, WBE, ESB, and SDVBE contractors to bid on project scopes of work.
Please see attached Construction Budget and Sources and Uses of Funds
LB1024 grant funds will apply to direct construction costs for four (4) new construction townhomes in response to the increasing expenses of new construction, high inflation rate, and the growing need for affordable housing in North Omaha. It will also apply to job creation.
Yes
Spencer Management LLC have processes and procedures in place in order to follow Federal Guidelines for the disbursement, monitoring, and reporting on all ARPA funds. We receive administrative support from a full team of Certified Public Accountants at Midwest Accounting & Tax. We will hire an independent auditor to support any awards received through this application.
LB1024 funds would help catalyze the development of Charles Street View affordable housing development within North Omaha. If this proposal is not funded, the project would be delayed.
The overall construction project will be phased; however, the intent is to have each of the four (4) townhomes completed by July 2024. This project would ideally be expanded into other communities in North Omaha.
Spencer Management LLC is committed to absorbing any remaining costs not funded.
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Documentation of site control (proof of ownership, option, purchase contract, or long-term lease agreement) Environmental assessment of subject site. Is the property a brownfield site? Organizational Chart Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Pro Forma Proposal Budget/Sources and Uses Schedule