800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

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Silophant
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby Silophant » December 8th, 2020, 9:19 am

Here's some more background info.
In response to changing local market conditions, the development team has since revised its development plan to a more modest-scale, 143-unit multifamily ownership housing project, targeting a unit mix of 50% market-rate / 50% affordable at 60-70% AMI.

AECOM has requested an extension of its development rights until June 30, 2021, to more fully develop its financial model and architectural plans and get financing commitments for this modified project approach.

Given the significant changes to the project plans and the need to assemble financing from multiple sources for the affordable housing component, staff recommends a six-month extension of AECOM's exclusive development rights through June 30, 2021, coupled with an option, if needed, for the CPED Director to administratively extend through December 31, 2021. This extension should give AECOM sufficient time to complete necessary due diligence and secure preliminary financing commitments for the revised project.
Should be interesting to see what they come back with.

BigIdeasGuy
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby BigIdeasGuy » December 8th, 2020, 12:33 pm

I really hope they are able to somehow keep the design of the building. While the additional affordable housing will be a great, losing a building that would stand apart for the rest of Washington vs bending in would be disappointing.

John21
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby John21 » February 1st, 2021, 1:47 pm


Anondson
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby Anondson » February 1st, 2021, 2:07 pm

Affordable condos in the Mill District will be fantastic.

aeisenberg
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby aeisenberg » February 3rd, 2021, 4:01 pm

Affordable condos in the Mill District will be fantastic.
This isn't "affordable" so much as "income-limited." The way a land trust works is that they artificially lower the price, roughly by the cost of the land the unit sits on, or 20% of market price. The trust owns the land. The unit owner owns the unit. (Note: I'm not sure if the trust maintains any control over what the owner can or can't do with the property). The owner and trust split any gains or losses in equity when the owner sells. The catch-22 is that most people who are actually loan qualified and looking for homes make too much money to qualify for ownership, which is limited to something like 80% of the area median income for the entire family. (So, for example, a 2-income home where both earners make even *$50k* would make too much money to qualify.) The vast majority of people who DO income-qualify for ownership aren't in a financial position to buy, don't know what a land trust is, and it's not even on their radar.

I'm not saying it's a bad idea-- it's a great idea. But it literally requires recruiting buyers. And then selling them on the idea of sharing equity with a land trust that they have probably never heard of.

Truly affordable modern condos with 2 or more beds, costing between $200k and $350k, with reasonable HOA dues and no frills... are a truly rare housing segment. And this would not address that need.
Aaron Eisenberg / Realtor, Keller Williams Integrity
612.568.5828 / aaron@agentaaron.com / 1350 Lagoon Ave #900
http://www.agentaaron.com

twincitizen
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby twincitizen » February 3rd, 2021, 8:22 pm

Agree with everything Aaron said. The key factors to determining whether this is a good project worthy of public subsidy will be:

1. How much public subsidy is required per unit? If it's a lot (and it will be), could that money be better spent on building affordable rentals and/or other housing supports? (A: most likely yes)
2. Are buyers restricted in how much appreciation/equity they are able to gain over the course of ownership? If no, then it's a huge one-time subsidy/windfall to only the initial buyer of each unit. If yes, then what's the point exactly, vs. building affordable rentals instead?

It's a nice sounding idea that attracts some political support (because in concept, it sounds like a panacea), but in reality can wind up largely being a one-time subsidy to a small group of beneficiaries (for example, low-to-moderate income but higher-savings individuals...e.g. retirees downsizing from a SFH)

pjohnt
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby pjohnt » February 3rd, 2021, 9:28 pm

It seems to defy common sense subsidizing housing in one of the most expensive parts of town. Your dollar could go so much further in less expensive areas, but alas social engineering always wins out over logic.

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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby Anondson » February 3rd, 2021, 10:20 pm

It is an expensive part of town due to “social engineering”. Can’t think any housing that isn’t social engineering anymore.

alexschief
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby alexschief » February 4th, 2021, 8:30 am

It seems to defy common sense subsidizing housing in one of the most expensive parts of town. Your dollar could go so much further in less expensive areas, but alas social engineering always wins out over logic.
I mean, putting aside the pros and cons of any specific project, what you describe as "social engineering" seems to be what most people might call "desegregation."

Brenns
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby Brenns » February 4th, 2021, 9:29 am

Isn't this very similar to the Pillsbury artist lofts situation across the river (and probably elsewhere)? I remember looking at the income limit vs rent scenario a few years back and wondering who exactly this subsidized housing was meant for.

uptownbro
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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby uptownbro » February 4th, 2021, 9:47 am

It is a creative way to try and build ownership in the city beyond just houses. I'm not sure how well it will work long term with association fees and such but I don't see an issue with trying it out. I do get the idea that building this in one of the most expensive parts of the city might not be the best bang for the buck but if it also results in more of this type of development (vs just affordable housing units) all over the city it could be worth it.

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Re: 800 Washington Ave - 14 stories - 173' (Guthrie Ramp liner development: Reloaded)

Postby MNdible » February 4th, 2021, 1:51 pm

I'm totally not sold on this, and I tend to agree that it's probably more complicated than it needs to be, but there's probably value to somebody building equity in situation like this that they could then roll over into their next housing purchase. That equity value over five years could be not-insignificant, even if the owners had to split the share of the property's appreciation.


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