HHS Federal Government Grant Proposal
The Local Development Corporation seeks $435 OCS grant as part of cost for developing the Happy Park Retail Center and $3 for travel to OCS meetings. The funds will cover the construction of project. The remaining funds needed to complete the project are provided by the Local Support Corporation LSC loans GE Capital Loan and or loan from another lender plus equity contributions from project owners.
The Happy Park Retail Center will be owned by the Local Development Corporation and will partner with other retailers to manage the project. The Center will become an attractive asset to declining neighborhood. It will also offer retail services and jobs to low income residents. The OCS requires that applicants include travel costs in their request for funding.
The President and Evaluator on the project plan to attend two day meetings to be held in Washington D.C. after the grant award. In addition the President will travel to annual meetings during the period of the grant. The summary below details the travel costs. Travel for John Smith President.
Two trips to Washington D.C. $480 roundtrip airfare per trip one trip after the award of the grant and one trip after two of project.
The Local Development Corporation plans to offer square feet of affordable retail space in new building which will developed by its local partners as collaborative effort to renew declining neighborhood. It is anticipated that the space will be leased by businesses offering to create new jobs for low income residents. Grant funds will be used for construction hard costs to develop and lease new square footage.
Retail building that will be owned by Local Development Corporation and John Jones successful business owner and neighborhood property owner. Please see Attachment for Memorandum of Understanding between LDC and Sam Thomas. This project will create new permanent full time jobs. At least 70% of the jobs created by this project will be targeted for low income neighborhood residents.
LDC will seek to insure that area residents who are TANF recipients; low income residents including displaced workers; at risk teenagers; custodial and non custodial parents particularly those of children receiving TANF assistance; individuals residing in public housing; individuals who are homeless and individuals with development disabilities are the primary beneficiaries of project employment and career development opportunities. Construction of the building for the neighborhood retail center is expected to begin in September and be completed by March. Construction for the tenant build out or tenant improvements will be done in accordance with lease agreements.
It is expected that all construction will be completed space leased and jobs filled by December.
The Local Local Development Corporation LDC a CDC in Indianapolis Indiana is seeking grant from the Office of Community Services OCS Community Economic Development Program under Priority Area 2A. Incremental Development Projects IDP. Incorporated in the mission of LDC is to promote economic and physical development within the Local UNWA.
As part of this mission LDC is undertaking the development of the Happy Park Retail Center. Structure that will be leased to provide neighborhood retail services and employment opportunities. This project creates permanent full time jobs for low income residents and will serve as an important catalyst for future retail development on Dr. Martin Luther King Jr. MLK Street primary neighborhood artery that has experienced significant disinvestment.
The Local is an economically distressed area with high unemployment and poverty. The area is designated Enterprise Community and local Urban Redevelopment Area. UNWA is composed of five neighborhoods governed by five neighborhood associations. Northwest Neighborhood Planning and Development Corporation Neighbors Helping Neighbors Northwest Way Civic Association Riverside Civil League and Crown Hill Neighborhood Association.
UNWA is located on the northwest side of Indianapolis and extends from 16th Street on the south to 38th Street on the north and from the White River on the west to Interstate and Meridian Street on the east. UNWA includes residential neighborhoods that were platted before the turn of the century. Most of the houses were constructed in the early part of the century. The Indianapolis Central Canal which opened in was once major source of industrial residential and economic growth for the neighborhood and the city.
Some of the city's wealthiest residents lived in the Golden Hill residential section of the area. UNWA became home to several major businesses industrial locations as well as public and private facilities including the city's first community center to serve African American families and the nation's largest children's museum. In the 1950's UNWA like many of the nation's urban communities began to experience blight and deterioration due to economic disinvestment and residential decline. While historically the Local has been one of Indianapolis' most economically distressed areas it is now beginning to attract significant development interest.
Due to its close proximity to the downtown business district central location access to Interstate and availability of large parcels of vacant land the neighborhood is experiencing substantial increase in housing development. An increase in area residents is fueling demand for additional neighborhood retail services. Presently the UNWA community has under representation of retail services.
The Happy Retail Center will address this deficiency by attracting new businesses to provide retail services and jobs for low income area residents. LDC embodies consolidated community leadership and is playing prominent role in facilitating neighborhood redevelopment.
The Local Development Corporation community development corporation located in Indianapolis Indiana seeks grant loan from the Office of Community Services OCS FY0000 Community Economic Development Program under Priority Area 2A. Incremental Development Projects IDP. Founded in the mission of the Local Development Corporation is to promote economic and physical development in the northwest sector of our region. This effort is aligned to the mission and will provide an opportunity for new structure to arise in declining areas local businesses to expand and jobs to be provided to low income individuals.
The project creates full time permanent jobs for low income residents and will serve as the catalyst for future retail establishments in the area. The area is economically depressed with high unemployment and residents who are living 200% below the national poverty level. The target area is composed of different neighborhoods governed by independent neighborhood associations.
The Local Development Corporation is located in the center of the neighborhoods. The area includes residential neighborhoods that were built at the beginning of the 20th century. The Indianapolis Central Canal which started in was once the key source of industrial residential and economic growth. Typical story of declining neighborhood once home to some of the city’s wealthiest residents now has great needs for revitalization.
Recently the neighborhoods have been showing signs of attracting development interest. They are close to the downtown area and busy Interstate and also located near available large parcels of land. The area is also experiencing population growth.
All these factors are fueling the demand for more local retail services. Previously the Local Development Corporation focused its efforts on development agenda which included the construction of unit multi family development for low income seniors Jason’s House. This work was done with the cooperation of the local Baptist Church. Next we worked to develop unit market rate and affordable home ownership project called the River’s Edge.
This project represents the first mass production of housing in the area in over years. Our track record includes working with local partners to develop and sell affordable homes with average sale price of $85,000; finishing market rate units in Phase of the River’s Edge for sale at $125,000; and growing the home owner buyer development program for low income families. Although we have made solid progress we have also experienced the frustrations that accompany slow economic growth and cultural changes over the years.
The community represents very important link to downtown Indianapolis. Its main street runs through the Indiana University campus and Purdue University campus. Our project emphasizes balanced financing plan ensuring that good portion of the project’s construction hard cost comes from local sources that are committed to the long term revitalization of our area.
The Local Development Corporation represents the combined community leadership and plays key role in motivating neighborhood revitalization.
The Local Development Corporation is committed to transforming the decaying and declining housing units boarded up units and turning them into safe and sanitary homes. The effort will focus on home ownership for low and moderate income families by. Constructing compatible in fill housing where needed.
Reinvesting in and developing area commercial and retail businesses to revitalize the neighborhoods economic base. Coordinate infrastructure improvements and plan development in an orderly manner and grow participation of local families in order to involve them in the decision making processes that lead to low term improvements that can be maintained. The project offers employment career development business ownership and self sufficiency opportunities to low income residents who also receive government subsidies.
The goal is to provide them with opportunities to remove themselves for dependence on government subsidies and become self sufficient. The proposed development is located along busy commercial corridor that can be turned into an opportunity for economic growth for the neighborhood. Local Local Development Corporation Inc. LDC is non profit corporation.
For confirmation of our non profit status please see Proof of Non Profit Status. Our Board of Directors is comprised of residents business and civic leaders. LDC's principal purpose is to promote economic development and physical development in the Local UNWA. This application is for only one project and responds to Priority Area 2A.
Incremental Development Projects IDP. LDC is requesting $435 OCS grant for Happy Park Retail Center development and travel for required OCS meetings.
The Local Development Corporation is nonprofit corporation. To confirm this please view Proof of Non Profit Status. Our Board of Directors is made up of local residents business owners and civic leaders.
This application is only for one project and directly responds to the Priority Area 2A. Incremental Development Projects IDP guidelines. Our request is for $435 OCS grant for the Happy Park Retail Center development and travel for required OCS meetings. Grant funds will be used for construction hard costs to develop and lease new square foot retail building that will be owned locally.
Need for Assistance Criterion
The Northwest Area of Indianapolis is an economically distressed area. It contains the usual characteristics of such regions.
- High unemployment;
- High level of poverty with substantial number of residents living at 200% below poverty level;
- Located near downtown with commercially viable sites that have been passed by in terms of revitalization;
- Neighborhoods build at the beginning of the 20th century – declining and ignored;
- Large high school drop out rate 50% when compared to state 15%
- High crime rate and;
- Low use of broadband and Internet.
The Local Development Corporation is well respected Indianapolis organization trying to serve one of the cities’ most distressed neighborhoods. However the community coalition on this project will focus on this target population. According to the Census 153 persons lived in the Northwest area.
The population had the following characteristics based on the update and ESRI Business Information Analysis. 92% of the population was black; 5.9% white and 1.0% Hispanic. The median household income was $22 while the comparable income for the City of Indianapolis was $41 and $41 in the nation.
37% of had incomes less than $15 compared with 13.5% for Indianapolis. Of the persons in the civilian labor force 13% were unemployed compared to 4.4% for the city and 5.3% for the nation.
While historically the Local has been one of Indianapolis' most economically distressed areas it is now beginning to attract significant development interest. Due to its close proximity to the downtown business district central location access to Interstate and availability of large parcels of vacant land the neighborhood is experiencing substantial increase in housing development. An increase in area residents is fueling demand for additional neighborhood retail services. Presently the UNWA community has under representation of retail services.
The Happy Retail Center will address this deficiency by attracting new businesses to provide retail services and jobs for low income area residents. LDC embodies consolidated community leadership and is playing prominent role in facilitating neighborhood redevelopment. LDC is committed to.
Transform the abundance of vacant and boarded housing units into safe and sanitary homes concentrating this effort toward homeownership for low and moderate income persons. Construct compatible infill housing where needed. Reinvest in and develop area commercial and retail ventures to reinvigorate the neighborhood's economic base. Coordinate infrastructure upgrades and overall development in an orderly manner and involve the neighborhood organizations in the process so that long term commitment is maintained.
While LDC has made significant strides in developing housing for low and moderate income persons the UNWA community has over the years experienced series of all too common cultural changes and economic chain reactions that resulted in massive business disinvestment. The community sees Dr. Martin Luther King Jr. Street as very important corridor in the commercial revitalization of the Local. MLK street runs thru the middle of the neighborhood and into downtown Indianapolis and the Indiana University Purdue University at Indianapolis I.U.P.U.I. campus.
The MLK corridor is major connector giving those on the northwest side of Indianapolis access to and from downtown and I.U.P.U.I. The grant requested in this application is part of the funds needed to finance the development of the Happy Park Retail Center which will be located in the block of MLK Street. It will help re establish the market appeal of MLK Street to attract more retail and small businesses that will provide additional retail services and jobs for low income residents.
LDC has assembled an experienced development team to assist it to successfully implement the development of the Happy Park Retail Center. The project development team includes the following. Co developers.
LDC and James Hilltop Alberts Construction and Development Services Construction Manager. James Hilltop Alberts Construction and Development Services Consultant. Marketing Leasing Agent. Alberts and Johnson Development and Management Company Property Manager.
Alberts and Johnson Development Management Company. Living Architecture Inc. The qualifications of the development team follows. LDC in the past six years solely or in cooperation with its partners have mobilized over $18,000 for neighborhood revitalization projects developed units of low income and affordable housing and provided housing repair services for units which were occupied by low income residents.
It is currently in partnership to develop two gas stations with convenience stores which are scheduled for opening in late and early 2003. James Hilltop Alberts Construction and Development Services Inc. is minority owned firm. The firm has partners who are regarded as being among Indianapolis' most successful retail center developers.
The partners have many years of experience in commercial and residential real estate planning development design financing construction and property management. Projects that have been completed by the partners of James Hilltop Alberts include office retail and residential developments in Indianapolis inner city neighborhoods. Kenneth Jameson is Consultant and Attorney who has worked for over years as an administrator and consultant for community development and employment training organizations.
He also was the Executive Director of the Madame Walker Urban Life Center and President of Bos Community Development Corporation in Indianapolis when they successfully completed several OCS funded projects. Alberts and Johnson Development and Management Company was founded in and is one of Indianapolis' most successful commercial real estate firms with experience in urban retail center development construction leasing and management. Also Alberts and Johnson has experience working with CDC's having partnered with LDC in the successful development of the River's Edge Project and members of the firm are on the Board of Directors of another prominent local CDC.
Living Architecture is broad based architectural interior design and planning firm with offices in downtown Indianapolis. Franklin AIA formed the practice in following years of experience with engineering construction architectural and real estate firms. From to Mr. Franklin was an architect with Melvin Simon and Associates now Simon Property Group the world's largest owner and developer of retail shopping centers. There he was responsible for conceptual planning for mixed use developments regional malls and community centers across the United States.
In and Mr. Franklin worked as construction monitor for the Simon organization's 40 story one million N. ft. Newport in Jersey City NJ.
Staff Skills Resources and Responsibilities
LDC has full time staff of five consisting of President Vice President for Finance and Administration Project Manager Community Development Specialist and Administrative Assistant. The President Carl Longsman has been with LDC for four years and has served as its President for over six years. Mr. Longsman has B.S. Degree from the School of Business at Butler University in Indianapolis.
Mr. Longsman is former Deputy Administrator of the Department of Metropolitan Development for the City of Indianapolis and has over years experience in housing development. Mr. Longsman will serve as Project Director for the development of the Happy Park Retail Center. Karen George the Vice President for Finance Administration has four years of experience as Director of Finance and Human Resources and she has extensive experience in the administration of not for profits. Gibb Charleston the Program Manager has extensive experience as zoning inspector and as Rehabilitation Specialist for the City of Indianapolis.
Please see Appendix for Mr. Longsman's resume. LDC is housed in 300 sq. ft. facility with adequate space computers and other office equipment to successfully carry out the business plan for the Happy Park Retail Center in conjunction with its development associates. Twenty percent of Mr. Longsman's time will be spent on the project to assure timely implementation and cost effective management of the development. The work plan Overall Schedule on Page will be used to evaluate progress against the time and task milestones.
The progress will be evaluated by the Board of directors monthly to ensure project benchmarks are being achieved on timely basis.
The following are the responsibilities and duties of the parties in the project. Completion of the project requires the coordination and interaction of the co developers. The major partners are.
Co–developers. Local Development Corporation and James Construction & Development. Consultant – Ken James.
Marketing Leasing Agent. K&K Development and Managing Company. Property Manager – K&K Development and Managing Company. Architect.
Johnson & Jones Architects Inc. The qualifications of the development team are as follows. Local Development Corporation. In the last six years the corporation has organized and processed $20,000 for neighborhood revitalization projects developed units of low income housing; units for low income residents in affordable housing and is currently working to develop two new commercial properties for the area.
K&K Construction and Development Services. A minority owned firm whose partners have been involved with number of successful commercial developments in Indianapolis over the last years. They are experienced in both commercial and residential development.
Our attorney has served in the area for the last years as an administrator consultant and community development advocate K&K Development and Managing Company. Established in is one of the area’s most successful commercial real estate firms with years experience focused on urban redevelopment. Johnson & Jones Architects Inc. Forty years experience as urban architects planning and designing major projects in Indianapolis New York Los Angeles and Chicago.
During its early years LDC concentrated on an incremental housing rehabilitation strategy using Community Development Block Grant funding. Beginning in LDC participated in more extensive and sophisticated projects including Eastside Equity Funds VI and VII two scattered site tax credit developments in several CDC areas and the HOPE III homeownership initiative. In continuing the organizations expansion of its development agenda in LDC completed unit multi family development for low income seniors Pilgrim Heritage Estates in cooperation with Pilgrim Baptist Church.
In it partnered with Wynnwood Development to develop Museum Park unit low income housing tax credit project. In LDC and Alberts and Johnson Development and Management Company began development of unit market rate and affordable homeownership project the River's Edge at Riverside Park in cooperation with range of community partners including Methodist Hospital and Citizens Gas & Coke Utility Company. The River's Edge project represents the first mass production of housing in the area in over years and will provide much needed increase in an eroding tax be.
LDC has also completed number of homeownership projects which were sold to low and moderate income families. In the past two years 1999 2001 LDC solely or in cooperation with its partners accomplished the following. Developed and sold affordable homes at an average sales price of $85,000.
Provided low income owner occupied homes with needed repairs. Completed and sold market rate units in Phase at River's Edge at an average sales price of $122,000; and continued their home buyer development program for low income persons. While LDC has made significant strides in developing housing for low and moderate income persons the UNWA community has over the years experienced series of all too common cultural changes and economic chain reactions that resulted in massive business disinvestment.
The community sees Dr. Martin Luther King Jr. Street as very important corridor in the commercial revitalization of the Local. MLK street runs thru the neighborhood and into downtown Indianapolis and the Indiana University Purdue University at Indianapolis I.U.P.U.I. campus. The MLK corridor is major connector giving those on the northwest side of Indianapolis access to and from downtown and I.U.P.U.I.
Description and Discussion of Industry. The industry is retail real estate development and job creation in low income neighborhoods undertaken by Community Development Corporations CDC's through creative partnerships. This industry is rapidly growing as more CDC's are being established and their capacity experience increases.
Private commercial developers who have concentrated their past efforts in the suburbs and central business districts are now exploring development opportunities in low income inner city ;neighborhoods. Retailers restaurants service companies and small businesses are being attracted to inner city locations with underserved markets. CDC's such as LDC are playing key role in helping to identify mutual interests and working with various public and private partners to revitalize areas of economic disinvestment and urban decay.
The product is the Happy Park Retail Center commercial real estate development which includes retail space in new building. The project will be co owned and co developed by LDC qualified Indiana not for profit corporation. LDC is developing this project in the block of MLK Street in Indianapolis Indiana.
The Happy Park Retail Center will attract more businesses to the area that will employ low income neighborhood residents. The project construction and leasing will substantially complement the housing and commercial development that is being undertaken and planned for the neighborhood. The project is accessible from all directions will have adequate parking and it is located along major bus route. The goals for the Happy Park Retail Center are to develop operate and maintain high quality attractive commercial building that will have longevity and offer needed neighborhood services and jobs.
This project will provide employment career development business ownership and self sufficiency opportunities for low income residents who are TANF recipients; low income residents including displaced workers; at risk teenagers; custodial and non custodial parents particularly those of children receiving TANF assistance; individuals residing in public housing individuals who are homeless and those with developmental disabilities. Low income residents will be assisted through the Coordination of Services Agreement with Goodwill Industries an established employment and training organization and the Indianapolis Prosecutor's Office to access jobs and pursue career advancement associated with their employment. Entry level jobs will become starting points on road to self sufficiency and personal growth.
The Happy Park Retail Center has several significant features that may give it an advantage over potential competitors. These features include. The project will be new and attractive building.
It will have ample parking available at no cost. It will be directly across the street from new library and three blocks from new post office both of which wi11 attract patrons and potential customers for the retail center. The project site is on MLK Street two way street that provides major access to downtown and Indiana University and Purdue University at Indianapolis and serves as primary collector street for the surrounding population.
Easy access exists to the site via public as well as private transportation and for many customers the site is only short walking distance. The Happy Park Retail Center will be located in densely populated inner city community with under representation of neighborhood retail services. There is lack of comparable retail leasable space in the neighborhood. By utilizing OCS funding lease terms for building space will be reasonable for prospective tenants who will create jobs for low income residents.
The project will be managed and maintained by Alberts and Johnson Development and Management Company which has over years of experience in real estate development and property management.
Market Research and Evaluation
The primary customers or tenants for the projects leasable space are retail businesses that wi11 provide services and employment opportunities for neighborhood residents. Jackson Research and Consulting in New Orleans LA nationally renowned research firm recently prepared market study for the neighborhood retail center and below are statements from the study regarding tenants for the project. There is the potential to develop on the site. The normal coverage for retail small office is cost per acre.
However based on market conditions we recommend that the site be phased. There are none in the trade area and potential demand is high. Small users will include neighborhood convenience stores.
Also please see letter from Alberts and Johnson Development and Management Company for additional information regarding commercial tenant prospects for the Happy Park Retail Center. Project marketing is geared to attract tenants who wi11 meet the underwriting criteria of the project's principle leaders and fenders with respect to their ability to meet lease terms and monthly rental payments.
Market Size and Trends
The Jackson Research and Consulting market study provides the following information regarding the market size and trends. Allowing for traffic patterns natural and man made barriers we have used a primary trade area circumscribed by. The remainder of the Local and transient traffic in the area makes up the secondary market defined trade area. Transient traffic refers to commuters traveling through the market.
Portions of Dr. Martin Luther King Street MLK are used as commuter route to downtown. As indicated in the prior section most of this traffic does not reach the proposed site. It leaves the MLK corridor at 29th Street.
There were an estimated 730 people living in the site's primary trade area in 2001. They form an estimated 25 households. The median age in the market is 31.7 years.
There are people living in the site's secondary market defined trade area. They reside in households. The median age in the secondary market is 34.4 years.
There are few signs that the decline in population households in the market defined trade areas will abate during the next five years. In the primary trade area population is expected to fall by people by 2006. The number of households is projected to fall by just over 100. These represent losses of about 10% over the next five years.
The secondary trade area is expected to lose 7% of its population base and 6% of all households. These estimates may be overstating the expected decline. Efforts directed at redevelopment may slow the decline...possibly halting it. However an increase in either population or households during the next five years is unlikely.
A ring approach to the trade area yields similar findings losses in population and households. Using one mile ring around the site there are an estimated 915 people in 321 households. The average age in the one mile trade area is just over years.
In there were 900 people living in 945 households in the site's one mile trade area. Population fell by 18% and households by 16% during the 1990s and early 2000s. The site's three mile trade area includes much larger population base.
There are 951 households living within three miles of the proposed site. They are in an estimated 300 households. The three mile trade area has experienced the smallest decline of any of the marketplaces we reviewed with population loss of just over 7% since and fall in households of only 2%.
The outlook for both the one and three mile trade areas is for continued loss. However the fall should be limited.
During the next five years population is expected to fall by just over 3% and households by only 1.5%
The Consulting market study offers the following conclusions about competition for the retail center project. There will be limited competition for the proposed site. There are vacancies in the market.
However they are primarily among small spaces in substandard buildings. Most of the existing retail space in the market is fully occupied. The occupancy rate among suitable properties is over 95%.
As result we feel that existing development will offer limited competition. We found one project in planning. This property was identified above.
The Mid Indiana Service site will include roughly 500 square feet of speculative space. However the rents for this property are high over $15. As result it is unlikely that the property will rent and is unlikely to offer direct competition.
Note. Developers have indicated that they will expand the convenience store at this site if rents are not achieved. Estimated Market Share and Sales.
Overall Marketing Strategy
Alberts and Johnson Development and Management Company firm that provides real estate development property management and leasing services will be responsible for marketing commercial space in the Happy Park Retail Center. Alberts and Johnson Development and Management Company was founded in and is one of Indianapolis' most successful retail center development and marketing firms. Many of Alberts and Johnson's projects were developed and leased in inner city neighborhoods.
Our comprehensive marketing strategy incorporates the use of leasing brochures electronic and print media coverage leasing sign at the site and strategically placed advertising as needed. Host of cooperating real estate brokers will complement the efforts of the Alberts and Johnson in leasing space in the Happy Park Retail Center. As previously noted all tenants will meet the leaders criteria for ability to pay rents.
The commercial lease rates for the Happy Park Retail Center will be competitive with rates for existing retail space in the neighborhood. However our rates will be lower than rents for comparable space outside of the area because of the need to use lower rents as an incentive to attract new business and jobs to the neighborhood. Please see the following recommendations from the Jackson market study pertaining to cost for project retail space.
There are no examples of new construction commercial rental rates in the area. Rents among older projects are between $4.00 and $7.00 per square foot. New construction will allow the proposed site premium.
However rents should be well short of typical market rents in the market. We advise $7.00 to $7.50 square foot for the proposed site. Market rates for new construction in Indianapolis are typically over $12 per square foot.
Many locations have per square foot rents of more than $15. Distribution and Promotion. Media event will be held to formally announce the ground breaking for the Happy Park Retail Center. Invitations to the ground breaking wi11 be sent to neighborhood residents and businesses and representatives of the public and private sectors.
Contacts have been made with commercial real estate brokers and attractive and professionally designed brochures will be distributed to prospective tenants. Large leasing sign will be placed at the project site and advertising will be purchased in the Indianapolis Star newspaper and Indianapolis Business Journal as needed.
Development Status and Tasks. The Happy Park Retail Center will be new attractive and affordable commercial building. The land acquisition process for the project is well underway.
LDC and Sam Thomas who will be partners in the Happy Park Retail Center LLC are contributing land which will be used for development of the project.. Happy Park Retail Center LLC wi11 be acquiring six additional parcels of land and the City of Indianapolis is expected to transfer eight lots to the LLC thru LDC which would enable us to secure all the land needed for the retail center. It is anticipated that all the land will be acquired by the end of this year and construction to begin by September 2003. Very capable and experienced development team has been assembled which has both the professional competence and community sensitivity to successfully complete this project.
Project financing is being provided from various public and private funding sources. Further steps in the development process include. Acquire additional land. Complete building design.
Continue marketing and leasing of commercial space. Obtain lease commitments.
Begin intake of low income job applicants
Prepare construction drawings and specifications. Obtain balance of project financing commitments. Begin construction of the building.
Complete property management plan. Begin tenant improvements as commercial leases are signed. Begin hiring low income residents.
Initiate tenant occupancy upon substantial completion. Continue intake and hiring of low income residents.
The operation of this project is organized into two phases. The first includes project planning and all activities related to its construction. James Hilltop Alberts Construction and Development Services will be responsible for project construction.
The project is being designed for safety and durability. Materials specified for construction wi11 be selected based on low maintenance longevity and appearance. The second phase is the operation of the Happy Park Retail Center. Alberts and Johnson Development and Management Company will serve as property manager for the project.
LDC will monitor property management and through contractual arrangements will oversee job creation and hiring practices. 70% of jobs created. Goodwill Industries will assist us to insure that low income residents receive employment and career development opportunities at the Happy Park Retail Center.
LDC has demonstrated its project management capability through the various neighborhood real estate projects it successfully implemented. LDC has complemented its capacity to implement the Happy Park Retail Center by engaging the services of James Hilltop Alberts Construction and Development Services and other capable and experienced professionals. The following development team has been assembled to undertake the development leasing and management of the Happy Park Retail Center. LDC and James Hilltop Alberts Construction and Development Services Construction Manager.
James Hilltop Alberts Construction and Development Services Consultant. Marketing Leasing Agent. Alberts and Johnson Development and Management Company Property Manager.
Alberts and Johnson Development Management Company Architect. Living Architecture Inc. The qualifications of the development team follows. LDC in the past six years solely or in cooperation with its partners have mobilized over $18,000 for neighborhood revitalization projects developed units of low income and affordable housing and provided housing repair services for units which were occupied by low income residents.
Sam Thomas is successful business owner and neighborhood property owner. James Hilltop Alberts Construction and Development Services Inc. is minority owned firm. The firm has partners who are regarded as being among Indianapolis' most successful retail center developers. The partners have many years of experience in commercial and residential real estate planning development design financing construction and property management.
Projects that have been completed by the partners of James Hilltop Alberts include office retail and residential developments in Indianapolis inner city neighborhoods. Kenneth Jameson is Consultant and Attorney who has worked for over years as an administrator and consultant for community development and employment training organizations. He also was the Executive Director of the Madame Walker Urban Life Center and President of BOS Community Development Corporation in Indianapolis when they successfully completed several OCS funded projects. Alberts and Johnson Development and Management Company was founded in and is one of Indianapolis' most successful commercial real estate firms with experience in urban retail center development construction leasing and management.
Also Alberts and Johnson has experience working with CDC's having partnered with LDC in the successful development of the River's Edge Project and members of the firm are on the Board of Directors of another prominent local CDC. A summary of the role of each management team member is as follows. LDC will serve as co owner and co developer of the project with specific responsibilities including.
Serve as managing member of Happy Park Retail Center LLC. Secure additional land for the project. Secure city support and assistance.
Provide equity contribution land and cash as needed for project development. Secure pre development funding and assist in obtaining other project financing. Serve as liaison with interested neighborhood organizations. Assist in identification of prospective tenants.
Monitor project development construction leasing and property management activities. Monitor and facilitate low income resident access to project related jobs and career development opportunities. Sam Thomas as co owner of the project wi11 have the following responsibilities. Serve as member of Happy Park Retail Center LLC.
Provide equity contribution land and cash as needed for project development. Assist in identification of prospective tenants. James Hilltop as project lead co developer and construction manager will have the following responsibilities. Serve as project manager and oversee project development and leasing activities.
Prepare project feasibility analysis and financial projections. Coordinate project development team. Obtain financing from conventional lenders. Coordinate the bid process.
Secure sub contractors. Manage the construction process. Kenneth Jameson as project consultant will have the following responsibilities. Assist LNWADC to perform its project co developer duties.
Assist in preparing timely reports as required by OCS and other fenders. Serve as LDC liaison with Goodwill Industries income resident employment and career development. Alberts and Johnson as property manager will have responsibilities as follows.
Develop property management plan for the project. Manage and maintain property after construction. Living Architecture Inc. will have responsibilities as follows. Complete building design.
Prepare construction drawings and specifications. Monitor and inspect construction work. Also LDC has sound organizational structure and proven organization capability.
The Board of Directors is comprised of neighborhood residents and property owners and representatives from area businesses and community organizations. The board meets bimonthly.
Critical Risks and Assumptions
In distressed community that has experienced disinvestment and decay there is always risk in being an initiator of development in an emerging inner city market. However we have assembled very strong and capable development team and created solid public private partnership to minimize this risk. In addition there are the following risks. Major construction overruns delays and faulty construction.
However we will havruction manager with competent track record. The construction contract will teed price and timeline with penalties for default. We also built in our construction budget rd cost contingency and the architect and construction manager wi11 monitor the quality of low leasing of available space.
This is addressed by competitive pricing quality development and aggressive marketing. Also there is viable market for commercial eing developed in the Happy Park Retail Center.
Management risk is minimal. LDC is one of five CDC's that have in the development of commercial real estate in Indianapolis and it has demonstrated acity in conjunction with its development partners to successfully complete other real estate projects. To augment its real estate development capacity LDC engaged an nced project development team to assist in the implementation of this project.
LDC has received conditional letter of the project financing and it wi11 aggressively seek additional sources of financingvate development partners have extensive experience in procuring debt financing fonders. We are confident that with OCS grant funding and LISC loan we will be able to the balance of the required financing. Attaining the required low income resident participation in project created jobs. Fatherhood Outreach Program will implement an intake training job referral and career development program to achieve planned jobs for low income residents.
Inability to get required zoning and building permits. The project has proper for its intended use. Also the Happy Park Retail Center has an experience all required building permits will be acquired. Issues regarding environmental studies.
Phase and Phase II environmental studihave been performed by Supreme Environmental Service Company SESCO. Environmental Conditions RECs were identified on the site which was formerly occupied by adry cleaners and paint store.
Economic Development and Job Creation At least new permanent ftime jobs wi11 be created at Happy Park Retail Center and not less than 70% or of these jobswill be filled by low income residents. Approximately jobs will be filled by individuals who were transitioned from the TANF program. The Happy Park Retail Center development and leasing will also demonstrate that the market conditions within the community have improved significantly.
These changes will help enhance the Local's image as more appealing neighborhood for nurturing successful business ventures and the project will spur job creatiself sufficiency and business ownership opportunities for low income residents. Career development opportunities will be created for jobs targeted for low income residents. Please see Chart Page for Letter from Alberts and Johnson project marketing agent broker renew page for Happy Park Retail Center Job Creation Summary. Training and experience that low income residents get in theiHappy Park Retail Center jobs will serve as springboards for career development opportunLow income residents employed in the retail center wi11 be assisted through the coordinated services of LDC Goodwill Industries and other organizations to pursue career advancement associated with their employment.
They will also be counseled in preparing career development plans. Entry level jobs at the Happy Park Retail Center will not be stigmatized as dead end burather will give low income residents access to training and skill development that will lead to financial stability and self sufficiency. The transition of vacant land on major commercial corridor into new heart of the community will greatly complement new housing and commercial development near the site.
The construction of the Happy Park Retail Center will be strong link in chain of real estate developments that will significantly improve the appearaof the neighborhood. Presently there is under representation of retail services in the Local. The Happy Park Retail Center will address this deficiency by attracting new businesses to provneeded retail services.
Development of this project will demonstrate the commitment of the neighborhood to combat decay and deterioration. It will also help provide physical asset and service to improve the area's living environment. Further the project will serve as cafuture development and job creation in the community.
The evaluation plan itself would provide monitoring and feedback to the evaluation of the ongoing process involved in the administration of the project as well as the specific outcomes to be delivered under the project. The evaluation function is to determine if the project is being administered according to outcomes objectively so that the grantee can take corrective action as necessary and so that OCS can measure program effectiveness against the proposal and against other programs of similar nature. Hence it is expected that OCS will continue to provide evaluation guidance.