HomeMy WebLinkAbout1998 Proposal for Development of Grand River Park Grand Harber ClubDocument:
1998
Proposal for Development of
Grand River Park
" Grand Harber Club"
Lansing Development
Proposal for Development of Grand River Park
"Grand Harber Club"
1998
Permanent
COMMERCIAL
REAL ESTATE SERVICES
PROPOSAL FOR DEVELOPMENT
OF GRAND RIVER PARK
"GRAND HARBER CLUB"
PREPARED FOR:
CITY OF LANSING
PREPARED BY:
Patrick Gillespie, President of Gillespie Development & Management
Rachel S. Michaud, Director of Marketing at DMR Commercial Real Estate Services
Robert Johnson, Sales Associate at DMR Commercial Real Estate Services
May 15, 1998
Gillespie Management & Development DMR Commercial Real Estate Services
3001 N. Coolidge, Suite 350 2205 Jolly Road, Suite B
East Lansing, MI 48823 Okemos, MI 48864
(517) 333-4123 (517) 349-3003
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INDEX
PROPOSED DEVELOPMENT & ARCHITECTURAL, DESIGN #1
ECONOMIC IMPACT & CONTINGINCIES #2
GILLESPIE DEVELOPMENT & MANAGEMENT
BIOGRAPHY & DEVELOPMENT PORTFOLIO #3
DMR COMMERCIAL REAL ESTATE SERVICES
QUALIFICATIONS #4
TESTIMONIAL LETTERS #5
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Notes
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GRAND HARBOR CLUB
DEVELOPMENT DESCRIPTION
The proposed Grand Harbor Club development will consist of twenty-eight (28) duplex
style condominiums, sixty (60) two-story attached condominium units, and a thirty-two
(32) unit multi -family dwelling.
The site has recognized potential as a residential community, considering such attributes as
the change in topography, wooded areas, immediate access to recreational facilities, close
proximity to shopping centers, quiet neighbors, and access to Waverly Road, U.S. 27, and
I-496.
The goal for Grand Harbor Club is to generate a strong and appreciated residential
community on the north bank of the Grand River. Through creative scale and attractive
architectural design, the proposed development will take advantage of the elevations
facing the river, and demonstrate a relationship to Grand River.
Luxury `Duplex Style' Condominiums:
The western most section of Grand Harbor Club is proposed to contain twenty-eight (28)
duplex style condominiums consisting of 1,400 — 1,900 square feet. The price range of
these units will range from $160,000 to $205,000*. These luxury condominium units will
include, but is not be limited to, all of the following amenities:
❖ Master Suite with Private Bath
❖ Great Room with Cathedral Ceiling
❖ Spacious 2nd Bedroom (3 bedroom units will also be available)
❖ Full Guest Bath
❖ First Floor Laundry
❖ Large walk-in Closets
❖ Attached Two -Car Garage
❖ Walk -out and Daylight Window Basement Available
❖ Waterfront Access to Boat Slips
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Two -Story Attached Style Condominiums:
The middle section of Grand Harbor Club is proposed to contain sixty (60) attached
condominium units. First and second floor ranch style condominiums will offer 1,100 —
1,400 square feet. With no other comparable within the Lansing area, these proposed
condominium units will range in price from $115,000 - $135,000*. This phase of Grand
Harbor Club offers the `median' family an affordable option for a new home. These
beautiful and affordable condominiums will include, but are not limited to, all of the
following amenities:
❖ Master Suite with Private Bath
❖ Great Room with Cathedral Ceilings (on I' Floor units only)
❖ Spacious 2nd bedroom
❖ Full Guest Bath
❖ First Floor Laundry
❖ Large Walk-in Closets
❖ Attached One -Car Garage
❖ Basements in 0 Floor Units
❖ Waterfront Access to Boat Slips
IMulti -family Dwellings:
The Eastern most section of Grand Harbor Club is proposed to consist of one (1), thirty-
two (32) unit luxury multi -family rental building. This section of the development is
proposed to be tiered from one story to three stories at its highest peek. One bedroom
' units will consist of approximately 875 square feet; two bedroom units will range from
1,050 —1,150 square feet; three bedrooms will consist of approximately 1,300 square feet.
' Total development value is approximately $1,800,000.00*. Rental apartment units will
include, but not be limited to all of the following amenities:
❖
Gas Forced Air Heat
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❖
Central Air Conditioning
❖
Walk-in Closets
❖
Patio or Deck
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❖
Microwaves
❖
Individual Washer & Dryer Units
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❖
Closet Organizing Systems
❖ Cathedral Ceilings in Upper Units
' *Total Development Value of Grand Harbor Club at completion is estimated to be
$14,620,000.00.
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Exterior Facades:
To ensure a classic and luxurious `look' within the development, a combination of brick,
wood grain siding, and vinyl siding will be used as the exterior facades. A heavy 30-year
laminated shingle will be used on all roofs.
All colors and construction materials will be blended with one another to create
consistency throughout the development.
Landscape & Signage:
All common areas shared between all phases within Grand Harbor Club will be
professionally landscaped. All lawn and exterior maintenance needs will be handled by
Gillespie Development in conjunction with selected professional vendors.
Grand Harbor Club will include two (2) separate entrances, both of which will have
signage composed of a combination of brick and limestone. Recognizing that proper
signage and curb appeal play an important role in the marketing of any project, the same
architectural integrity will be incorporated in the design and development of all entrances,
as in the Grand Harbor Club development itself.
Development Timeline & Marketing Forecast:
Immediately following site plan approval and request for re -zoning the portion indicated
on the site plan, Gillespie Development would proceed with the land preparation,
underground work, and construction of improvements. We anticipate the development to
start with 24 condominium units, to be completed within a 13 month period. We project
that Grand Harbor Club will be completed in its entirety with 36 months from receiving
site plan approval.
Due to the competitive price point of the development, immediate sales are projected for
Grand Harbor Club. Please refer to "Economic Impact" section of this proposal for
further income analysis.
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Grand Harbor Club
proposed architectural theme
24 Luxury Condominiums
DM-1 (3.8 acres, 6.3 units/acre)
56 Luxury Condominiums 32 Unit Luxury Rental Community
OM-1 (5.0 acres, 7.2 units/acre) PM-2 (2.5 acreo, 12.5 units/acre)
28 Luxury CondominiumsZah" Condominiums DM-1 (6.4 acres, 4.4 units/acre) Us 27
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Gran i River Park
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50'Park6 Eaoement
Manna Plocar, (City of Lansing)
Marina Access
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Marina Acce-
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Grand Harbor ClubMarn 0
Ravine Park
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(Waverly HillE, 5uMivioion) f` �- 'l �// j D ��-�
Illustrative Site Plan
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City of Lansing, Michigan
Scale: 1'-501 Date: 05/14/98 North
Gillespie Development & Monogement Developers
DMR Commerclol Real Estate Services M-*eAf7gAg-fs
Afternative Concepts LondPlannets
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Notes
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GRAND HARBOR CLUB
ECONOMIC IMPACT & CONTINGINCIES
ECONOMIC IMPACT
In terms of one-time and recurring fees/taxes paid to the City of Lansing (exclusively),
the following analysis is provided:
ONE-TIME:
Acquisition of Land:
$500,000
Constructions Related Fees
1. Lift Station
$125,000
2. Site Plan Review
$500
3. Construction Payroll Taxes
$20,000
4. Building Permit(s)
$60,000
5. Plumbing Permit(s)
$8,400
6. Electrical Permit(s)
$8,400
7. Mechanical Permit(s)
$7,500
8. Structural Permit(s)
NA
9. Sewer Permit/Tap
$6,925
10. Engineering Review
$2,000
RECURRING FEES/TAXES
(Analysis includes only the 17.1 mills collected by the City of Lansing)
Homestead Ad Valorem:
Market Value: $180,000 $125,000
H.E.V.: $90,000 $62,500
No. of Homes: 28 60
City of Lansing Mills: 17.1 17.1
Taxes to the City of Lansing: $43,092 $64,140
Annual Combined:
Non -Homestead Ad Valorem:
Market Value: $1,800,000
S.E.V. $900,000
Number of Units: 32
City of Lansing Mills: 17.1
Taxes to the City of Lansing:
HOMESTEAD AND NON -HOMESTEAD AD VALOREM: 12$ 2.622
(collected annually, does not include taxes collected by other
jurisdictions)
Present Value of $122,622 collected over 30 years @ 12.0% Discount Rate, with a
delayed income stream of 36 months, the PV of Ad Valorem Taxes is
62$ 7,728
INCOME TAX REVENUE:
$180,000 Homeowner(s):
Household Income
$73,667
Annual Income Tax
$737
No. of Households
28
Total Annual Revenues:
$125,000 Homeowner(s):
Household Income
$54,467
Annual Income Tax
$545
No. of,Households
60
Total Annual Revenues:
$12,700
Multi -Family Residents:
Household Income
$28,000
Annual Income Tax
$280
No. of Households
32
Total Annual Revenues:
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PROJECTED ANNUAL INCOME TAX (1.0%) COLLECTED, ASSUMING 33% ARE
NEW LANSING RESIDENTS:
Applying a Present Value analysis to "New" Income Taxes, using a 12.0% discount rate
over 30 years, with a delayed income stream of 36 months for complete absorption, the
PV of "New" Income Taxes to the City is $195,22- .
SANITARY SEWER & STORMWATER UTILITY FEES:
(88) Single -Family Units
' consumption: Average CCF 5.5 CCF's
' Sanitary Sewer Fees: $1,147 per month
$13,765 per year
'
(32) Unit Multi -Family
Average CCF consumption:
� P
4.5 CCF's r unit
per
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Sanitary Sewer Fees:
$341/month
$4,092/year
Total Annual Sanitary Sewer Fees:
$17,857/vear
Projected Stormwater Utility Fees
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For the entire Development:4
RECYCLING FEES:
' 88 Single Family Units
Annual Fee: $47.50/Household
' Total Recycling Fees: $4,180/year
Rate Per CCF
$2.37
Rate Per CCF
$2.37
' Total Present Value of the Economic Impact to the City of Lansing:
$1,500,215
' Multiplier effect is not included in this analysis.
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CONTINGINCIES
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1.
Site delivered with acceptable soil conditions, to include rubble -free.
2.
Easements/Curb cuts to support proposed ingress and egress.
3.
Environmental conditions suitable for residential development as proposed.
4.
City of Lansing Site Plan Approval, as may, or may not, be amended.
5.
Cross -easement from City of Lansing allowing Grand Harbor Club residents
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exclusive use of some, or all, of the proposed boat slips as shown.
6.
Clear and fee simple title to entire 17.727 acre parcel
7.
Site delivered without encumbrances, the only exception is the anticipated 50'
'
riverfront easement to the City of Lansing
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GILLESPIE DEVELOPMENT
PORTFOLIO 11
Patrick Gillespie of Gillespie Development & Management has spent his entire life in the
Lansing area. Born and raised in Lansing, Patrick continued his education at Michigan
State University, where he received his Bachelors Degree in Construction Management.
Also a licensed Builder in the State of Michigan, Patrick has proven to be an asset to the
development industry. In the past 9 years, Patrick has built an impressive portfolio to
include all of the following:
'
CREEKSIDE CONDOMINIUMS- Currently under construction
48 Ranch Style Condominiums
Delta Township, Michigan
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CASCADE OFFICE PARK IV — Currently under construction
11,000 Square Foot Commercial Building
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Jackson, Michigan
PAMIDA RETAIL BUILDING
58,000 Square Foot Retail Building
Clio, Michigan
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COURTYARD MARRIOTT HOTEL — Currently under construction
90 Unit Hotel
Brighton, Michigan
GENOA WOODS CONFERENCE FACILITY
14,000 Square Foot Banquet and Business Facility
'
Brighton, Michigan
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WESTBURY LAKES APARTMENTS I & II
166 Luxury Apartment Homes
Delta Township, Michigan
CASCADE RIDGE OFFICE PARK II & III
14,000 Square Foot Commercial Building (II)
6,800 Square Foot Commercial Building (III)
Jackson, Michigan
RITE AID DEVELOPMENT
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Converted 11,000 Square Foot Grocery Store into a new Rite Aid Facility
Haslett, Michigan
JACKSON HILLSDALE COMMUNITY MENTAL HEALTH
' 10,500 Square Foot Auditorium Addition and 16,000 Square Foot Office Renovation
Jackson, Michigan
' AUTUMN RIDGE APARTMENTS
48 Unit Luxury Multi -Family Community
' Adrian, Michigan
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PDXSON PARK APARTMENTS
17 Unit Apartment Fire Restoration
'
Lansing, Michigan
CASCADE RIDGE APARTMENTS
216 Unit Luxury Multi -Family Community
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Jackson, Michigan
2561 MEADOW WOOD DRIVE
Custom Single Family Home (9,000 square feet)
East Lansing, Michigan
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940 HARRINGTON
Custom Single Family Home (2,600 square feet)
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East Lansing, Michigan
13077 TUCKER
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Custom Single Family Home (1,900 square feet)
Dewitt, Michigan
In addition to above list, Patrick Gillespie has purchased, rehabilitated, leased and sold
numerous residential and commercial properties.
CREEKSIDE CONDOMINIUMS
CASCADE RIDGE APARTMENTS
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JACKSON, MICHIGAN
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1&0 Ar-1116�
90 Room Prototype
CASCADE RIDGE OFFICE PARK
JACKSON, MICHIGAN
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Notes
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Pme,11'ONE
FIRST IN PROPERTY MANAGEMENT
tMay 14, 1998
' To Whom It May Concern:
' RE: Gillespie Development and Management
3001 N. Coolidge Road
Suite 350
' East Lansing, MI 48823
P.M. One Property Management is a professional management company serving the multi -family
' industry. P.M. One has been in business in excess of 24 years, and currently, manages over 23,000
multi -family units within the midwest.
' Over the past few years, P.M. One has had the opportunity to work with Pat Gillespie of Gillespie
Development and Management. Our experience managing his product has been a true success. Mr.
Gillespie has proven, through his developments, that he is a man of good character with sound
tbusiness judgement. He has repeatedly been able to select business opportunities which make good
sense and have sound economic value.
Gillespie Development and Management has the reputation of developing high -end luxury products.
In all areas where Gillespie has developed, he has made a true effort to enhance, the community with
the product developed, and has been very successful.
Within the business community, Mr. Gillespie is known as a man of good moral character with a
professionalism that is appreciated within the development field.
If additional information is needed in order to accommodate any request in behalf of Gillespie
Development and Management, please feel free to contact me at (517) 887-0940 (Ext. 216).
Kindest Regards,
' Kathy E. Sinicropi
Vice President
IKES/slb
' cc: JRM, JED
PROPERTY MANAGEMENT ONE, LTD.
5215 JOLLY -CEDAR COURT • LANSING, MICHIGAN 48911-3748
' OFFICE (517) 887-0940 • FAX (517) 887-6700
T D D 1-800-649-3777
May 12, 1998
' To Whom It May Concern:
' We would like to take this opportunity to compliment Mr. Patrick Gillespie and his company,
Gillespie Development & Management. The W. S. Smith Company has conducted business with
them for the last two (2) years, during which time they have proven to be first rate in every area.
1 During three (3) phases of new construction, we at the W. S. Smith Company have worked with
Mr. Gillespie with ease and confidence. The care and quality of workmanship demonstrated by
' his company and the staff is exceptional. It is obvious that customer satisfaction is just one of his
positive traits with the "we care" philosophy.
' We would highly recommend Mr. Gillespie and his company with complete confidence and look
forward in continuing to work with them on future endeavors. If you should require additional
information please call (517) 772-3261.
' Sincerely,
' W.S. SMITH COMPANY
' Karen M. Mead
Account Executive
ww/cathyw/karen.051298b
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P.O. Box 189 • MG Pleasant; Michigan 48804-0189
' 517-772-3261 • Fax 517-772-3842 • TDD 517-77314455
EQUAL 0
OPPOflTUNITUNITV
' MAY-13-98 WED 12:35 PM P. 6
n5/12i98 TUE 14:07 FAX 517 334 5490 FIRST OF AMERICA Q 002
F6st of Aivwlca Bank - Mic"an, NA.
' Contral Reglon
P.O. Box 30120
onsing. Michigan 48909
Telophono 517,334-1600
May 12, 1998 F I RSTOF
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AM EWA.
' W. Patrick Gillespie
Gillespie Development & Management
' 3001 Coolidge Road - Suite 350
East Lansing, Bdichigan 48823
' Dear Pat:
First of America Bank-, NA ("FOAS") will consider financing for the 17 acre Grand River Park
condominium project. Any approved commitment issued by the bank would be subject to receipt
' of cost numbers and other terms and conditions that the bank deems necessary. In addition,
FOAB must follow its normal underwriting procedures and loan approval process.
Based on your long-standing and valued relationship with First of America Bank, we would be
interested in the financing of this project.
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Please do not hesitate to call me if you have any questions at (517) 334-1755.
'
Sincerely,
FIRST OF ANMRICA BANIs N.A.
Deborah S. Stone
'
Assistant Vice President
Commercial Loan Department
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1947
1989
Detroit Mortgage and Realty,
DMR Properties, Inc. formed
Inc. (DMR) established by the
in row
to serve a growing demand
merger of two Detroit firms
for brokerage and property
'
dating back to the 1920s.
management services.
1
196Os
1996
Business unit formed within
DMR Properties, Inc. changed
DMR Commercial Real
'
DMR to provide commercial
to
real estate services for lenders.
Estate Services.
1
1967
A f i d u c i a
r y L
Maize and Blue Properties and W i t h O u r C/ r
Downtown Properties formed
as holding companies. '
We perform:
— Sales and Leasing
— Property Management
— Development Services
— Advising/Consulting
Services
Types of property:
— Retail
— Office
— Multi -family
— Vacant Land
— Industrial
c o m p e t i t i o n
n t s. O u r M i s s i o n is to provide professional, value-
added real estate services for our Customers and Clients. We
differentiate ourselves from other real estate firms by providing first
class service, as a fiduciary, without competing with our Customers
or Clients in the marketplace.
ra a I
k" PILTA 1 6
Grand Rapids
141 Ionia
Hartger &
Grand Ra]
49503
T: 616/45
F: 616/331
Lansing►
2205 Jolly Road
Suite B
Okemos, Michigan 48864
T: 517/349-3003
F: 517/349-9058
Detroit
333 West Fort Street
l8th Floor
Detroit, Michigan 48226
T: 313/962-0800
F: 313/963-2700
Qualifications
DMR Commercial Real Estate Services is a wholly -owned subsidiary of Detroit
Mortgage and Realty, Inc. (DM&R).. DM&R. was established in 1946 through a
merger of two successful Detroit area real estate firms with roots back to the 1920's.
At that time, almost fifty years ago, the primary thrust of the company was
residential mortgage banking. In the early 1950's, DM&R expanded into the field
of commercial real estate when it became the commercial mortgage correspondent in
Michigan for Aetna Realty Investors, Metropolitan Life Insurance Company, New
York Life Insurance Company, and Sun Life Assurance of Canada. Since then,
DM&R has grown into a full -service commercial real estate firm, providing through
its subsidiaries and affiliates a complete line of real estate related services. These
include mortgage banking, appraisal, consulting, construction management,
property management, commercial brokerage, and office leasing. The company
now, through DMR Financial Services (DMRFS), services a portfolio of over $1.75
billion in commercial and residential mortgages. Last year alone, DMRFS
originated over $770 million in new commercial and residential mortgages.
In 1997 .DM&R acquired Grand Rapids based, Hartger & Willard Mortgage
Associates, Inc. (H&W) and expanded its correspondence network. DMRFS and
H&W have combined to place loans on many prestigious and prominent properties
in Michigan, including many major hotels, office buildings, apartment communities,
and Regional Malls. As a result we are acutely aware of property values in the
major markets across the state and have closely monitored market conditions over a
period of nearly five decades.
DMR Commercial Real Estate Services specializes in commercial -investment
brokerage and office leasing. It has leased or sold more than two million square feet
of office property in the past four years. The President, Todd Brunst, has nearly 30
years in the real estate business and an extensive background in investment
brokerage, development and property management. He has developed real estate
products with an aggregate value of approximately 500 million dollars and managed
assets in excess of one billion dollars. Under his direction DMR Commercial Real
Estate Services has grown more than four fold during the last twelve months and
has expanded with full service offices in Okemos, Grand Rapids and Detroit.
DMR COMMERCIAL REAL ESTATE SERVICES
F
Principals
Todd Brunst is the president of DMR Commercial Real Estate Services. As such, he is responsible for
the day to day operation of the full service commercial real estate brokerage and property
management offices in Detroit, Grand Rapids and Lansing.
Prior to joining DMR, Todd was an independent real estate broker (1971 ,to 1974), senior vice
president/partner of Oxford Development Corporation (1974 to 1984) and National Financial
Investments, In.c. (1984 to 1992). He has an extensive background in development and management of
garden style and high-rise apartment communities with cumulative experience totaling over 50,000
units; and cumulative development and management of over 6 million square feet of commercial
space, 800 single family lots and a full service country club.
A Certified Property Manager (CPM), Todd attended the University of Wisconsin and Michigan State
University. He maintains professional affiliations with the Institute of Real Estate Management
(IREM), the International Association of Corporate Real Estate Executives (NACORE) and the
Greater Lansing Association. of Realtors (GLAR). He is currently working towards completion of the
CCIM designation.
Todd and his family reside in Okemos, Michigan.
' FredK_lLgman
Fred Klugman is Senior Vice President of DMR Commercial Real Estate. Mr. Klugman received a
Bachelor of Arts degree in communications from California State University in Fullerton in 1972.
Additional. education includes numerous post graduate courses in various aspects of real estate,
including law, appraisal, finance, etc., as well as attendance at numerous seminars and symposia on a
' regular basis. Fred also holds an Associate Broker's license and a Broker's license in the State of
Michigan.
IF
JJ
Prior to joining DMR Commercial Real Estate Services in 1989, Mr. Klugman spent fifteen years in
the field of commercial brokerage, primarily involved in office leasing. This experience includes four
years at Cushman & Wakefield from 1980 to 1984 and five years with The Hayman Company from
1.984 to 1989.
Mr. Klugman is a member of the National Association of Corporate Real Estate Executives
(NACORE) as well as a member of the Building Owners and Managers Association (BOMA).
Fred resides in West Bloomfield, Michigan with his wife Jacqueline and his son Adam.
DMR COMMERCIAL REAL ESTATE SERVICES