MONROE - City property along the 800 block of 16th Avenue could become home to a new four-unit condo building if city officials agree they want to work with developers.
SquareNorth LLC members Craig Patchin, Aaron Holverson and Kevin Visel presented the proposal to the city's Finance and Taxation Committee meeting on Tuesday. The plan outlines adding four condos within a newly constructed building in what is currently a municipal parking lot to the north of Stop N Go.
Plans call for the project to begin between June 2016 and May of 2017. Construction could be complete by October 2016 or October 2017, depending on how quickly the agreement can be met between the city of Monroe and SquareNorth LLC, as well as a sticking point for the developers: they must have all four condominiums sold before the building can begin construction. If the group fails to sell the modern condos within a year, the agreement would end and the city could proceed with other options.
The developers said they have people interested, and asserted they do have personal investment in the project after Alderman Reid Stangel questioned what the challenge would be for the trio since as "developers you don't have any money in the game." Visel said they each had an "in-kind" investment through uncompensated work and miscellaneous costs, and that their actual investment would be roughly $50,000.
"We wouldn't go out before we had the foundation to make sure it was going to fly," Patchin said.
Estimates from financial service Ehlers & Associates for the anticipated value of the project range from $560,000 to $750,000. Developers are seeking a loan of between $70,000 to $95,000 from the city to provide temporary operating capital for the project. The loan would have an annual interest rate of 3.5 percent and be scheduled to be repaid within three years after the funding date. Grant funds from the city could be between $112,000 to $150,000.
The area is included in Tax Increment District 7 and would bring revenue to the TID. Assistant City Administrator Martin Shanks said that even if the building meets bare minimum expectations at 20 percent of the finished building value, the money invested will not only be recovered, the building's tax value will accrue $92,000 for the district over the course of the remaining 15 years of TID 7.
Stangel said more time needed to be dedicated to evaluating the proposal. Fellow committee members Brooke Bauman and Charles Koch agreed, and Koch told Shanks he saw the project as "something he could support and would be good for the area." Shanks outlined reasons the addition would also help the city meet a number of goals included in the newly drafted Monroe Comprehensive Plan, such as quality housing in the downtown area and an efficient use of land within the city.
Committee members recommended Shanks and City Attorney Rex Ewald draft a policy agreement to be evaluated and discussed during the next committee meeting.
SquareNorth LLC members Craig Patchin, Aaron Holverson and Kevin Visel presented the proposal to the city's Finance and Taxation Committee meeting on Tuesday. The plan outlines adding four condos within a newly constructed building in what is currently a municipal parking lot to the north of Stop N Go.
Plans call for the project to begin between June 2016 and May of 2017. Construction could be complete by October 2016 or October 2017, depending on how quickly the agreement can be met between the city of Monroe and SquareNorth LLC, as well as a sticking point for the developers: they must have all four condominiums sold before the building can begin construction. If the group fails to sell the modern condos within a year, the agreement would end and the city could proceed with other options.
The developers said they have people interested, and asserted they do have personal investment in the project after Alderman Reid Stangel questioned what the challenge would be for the trio since as "developers you don't have any money in the game." Visel said they each had an "in-kind" investment through uncompensated work and miscellaneous costs, and that their actual investment would be roughly $50,000.
"We wouldn't go out before we had the foundation to make sure it was going to fly," Patchin said.
Estimates from financial service Ehlers & Associates for the anticipated value of the project range from $560,000 to $750,000. Developers are seeking a loan of between $70,000 to $95,000 from the city to provide temporary operating capital for the project. The loan would have an annual interest rate of 3.5 percent and be scheduled to be repaid within three years after the funding date. Grant funds from the city could be between $112,000 to $150,000.
The area is included in Tax Increment District 7 and would bring revenue to the TID. Assistant City Administrator Martin Shanks said that even if the building meets bare minimum expectations at 20 percent of the finished building value, the money invested will not only be recovered, the building's tax value will accrue $92,000 for the district over the course of the remaining 15 years of TID 7.
Stangel said more time needed to be dedicated to evaluating the proposal. Fellow committee members Brooke Bauman and Charles Koch agreed, and Koch told Shanks he saw the project as "something he could support and would be good for the area." Shanks outlined reasons the addition would also help the city meet a number of goals included in the newly drafted Monroe Comprehensive Plan, such as quality housing in the downtown area and an efficient use of land within the city.
Committee members recommended Shanks and City Attorney Rex Ewald draft a policy agreement to be evaluated and discussed during the next committee meeting.