Public/Press Copy. Proposal for Purchase and Redevelopment of 1450 Water Street, Stevens Point, WI 55481

Transcription

1 Public/Press Copy Proposal for Purchase and Redevelopment of 1450 Water Street, Stevens Point, WI Jacob Klein MSP Development Company, Inc Walker St., #:ZO St. Louis Park, MN Septsmb 30, 2014

2 1. Certification Statement 2. MSP Development Cover Letter 3. MSP Real Estate Overview 4. Project Team 5. Organizational Documents a. MSP Real Estate b. MSP Development c. Heritage Assisted Living 6. Relevant Developments a. Heritage West Allis b. Heritage Monona c. Heritage Middleton d. New Berlin City Center e. Heritage Elm Grove 7. Proposed Purchase and Redevelopment a. Site Layout & Rendering b. Project Overview c. Project Features & Amenities d. Project Ownership e. Purchase Price f. Project Timeline g. Social and Economic Impact 8. MSP Portfolio Overview 9. Relevant References a. City of Middleton b. City of Monona c. City of West Allis d. Village of Elm Grove Table of Contents

3 real estate incorporated Certification Statement I, Jacob Klein, am authorized to make the commitments and representations contained in this letter and proposal on behalf of MSP Real Estate and Development. All of the information contained in the proposal for the purchase and redevelopment of 1450 Water Street, Stevens Point, WI is true and c:orrect. MSP agrees to all terms and conditions, reservations, and stipulations contained in this RFP document. MSP will proceed with the Project as proposed and according to the schedule proposed if the proposal is selected. Sincerely, Jacob Klein Vice President MSP Development Company, Inc Walker Street Suite 20 St. Louis Park, MN Phone: Fax:

4 Jacob T. Klein MSP Real Estate and Development, Inc Walker Street, Suite 20 St. Louis Park, MN Phone: September 30, 2014 Mr. Michael Ostrowski, Executive Director City of Stevens Point RE: 1450 Water Street Redevelopment RFP Response/Letter of Interest Dear Mr. Ostrowski, l::r.closed you will find 10 complete and bound copies of our application to the City of Ste\iens Point to acquire and redevelop the Edgewater Manor, located at 1450 Water Street in downtown Stevens Point. MSP specializes in developing and operating senior and multifamily developments in the Midwest. Over the past twenty five years MSP has developed approximately forty infill projects in the Midwest and have experience using TIF, tax exempt bond financing, tax credits, and other financing tools to reposition sites into vibrant senior communities. MSP has experience developing market rate and affordable apartments. Over the past 10 years MSP has become an industry leader developing senior housing campuses with independent senior apartments, assisted living, and memory care. These are managed through our subsidiary Heritage Senior living. We are a long term owner with a strong track record of getting complicated projects across the finish line and exceeding expectations in the communities we develop. In 2007 and 2008 during a significant real estate downturn, MSP was selected as the developer for two separate RFP's by Wisconsin municipalities. These city-owned sites were blighted and had significant impediments to development. MSP was able to get both projects constructed and beat lease up projections, despite the great recession. These two redevelopment projects created 363 units of housing and over 150 permanent jobs. Since then MSP has developed or currently has under construction another 650 units of senior and 'multifamily apartments in Wisconsin. This level of production has made us one of the state's largest multifamily developers. The subject site iocated at 1450 Water Street represents an incredible opportunity to create a high quality development in one of the best locations In downtown Stevens Point along the Wisconsin River. I am confident that with our experienced development team we can deliver the type of high quality project that the City of Stevens Point is lookfng for and that other cities have gotten and come to expect from MSP. Not only will construction and design be of the highest quality, but the level of care for our residents provided by Heritage Senior Living is unparalleled. If selected, we will dedicate all of our resources to working with the City on a project that meets and is constructed and managed to the standards expected for such a high profile project in the City of Stevens Point. Sincerely, ~fjpa Jacob Klein Vice President

5 Overview of MSP Real Estate, Inc. MSP Real Estate, Inc. MSP Real Estate, Inc. (MSPRE) and its subsidiaries Heritage Assisted Living, MSP Construction and MSP Property Management make up a full service real estate development company. Established In 1988 by Milo Pinkerton MSPRE has assembled a team with the experience and tenacity to get the job done. We are a long-term owner that owns over 90 percent of what we have built. Our philosophy is to develop high quality properties in strategic markets to ensure the best investment for us, our partners and the communities we build in. MSPRE has experience with public/private development projects utilizing TIF, HOME Funds, Federal Home Loan Bank Funding, CBDG, Metropolitan Council grants, and DTED grants. MSPRE has extensive knowledge of real estate development gained over the past 20 years with 28 projects totaling over 140 million in value. Senior Housing Development MSPRE has become one of the Midwest's leading developers of senior housing communities. To date we have developed over 1600 units of senior housing in 12 communities in Wisconsin and Minnesota. MSPRE has developed senior condominiums, independent apartments, assisted living and memory care. Over the past 5 years MSPRE has focused on developing senior housing campuses to provide a continuum of care for its residents. These communities consist of mixed income independent senior apartments, assisted living and memory care. Affordable Housing Development MSPRE specializes in Section 42 Affordable Housing Tax Credit development. To date MSPRE has received over $1 O million in tax credit allocations in three Midwestern states, constructing developments with a total project cost of over 95 million. This portfolio consists of approximately 1000 units of senior housing and over 350 units of family housing. MSPRE has experience developing properties using both 9% tax credits and 4% tax credits with tax exempt bond financing. Market Rate Housing Development Louisiana Oaks Apartments is a 200 unit market rate development in St. Louis Park, Minnesota. This property was recognized as the 2006 MADACS Award-winn ing ("Property Excellence Award - Best New Development - Market Rate") in the Twin Cities. Heritage Assisted Living Founded in 2000, Heritage Assisted Living is an industry leading manager of assisted livlng and memory care communities. Today we own and operate nine communities in Wisconsin totaling over 600 units. We are one of the fastest growing Assisted Living companies in the region and now employ over 300 people. MSP Construction MSP Constructlon is responsible for General Contracting service for MSPRE's developments. Acting as our own general contractor allows us to save costs and ensure quality on all 0 1H development projects. In 2009 MSP Construction built 360 units with project costs totaling over 30 million. Jn 2012, MSP Construction bu ilt over 300 unlts in 3 different communities. MSP Property Management MSP Property Management, LLC (MSPPM) was formed in 2006 to more fully service its affordable housing and market-rate housing in Minneapolis and Northwest Wisconsin. MSPPM currently manages over 500 units in six locations. Management Team Milo Pinkerton, President Milo has developed more than 2300 units spanning over 30 years. Milo's unique background of architecture, real estate and construction has enabled MSP projects to be of consistent high quality, on time and on budget. Milo is primarily respons i ble for overseeing and directing all aspects of the MSP Family of Companies. Ensuring steady growth, cons istent profitability and increasing cash flows annually. Milo works hands on with the development and construction company and coordinates management and direction of Heritage and MSP Real Estate and Heritage Assisted Living 2014

6 MSPPM through its various staff directors. Prior to forming MSP Real Estate, Inc. Milo was vice president a11d manager of special projects for ITT Real Estate Services, where he was in charge of the disposition of $50 million of troubled real estate nationwide. Milo was also project director with a regional development/construction company, Orville E. Madsen and Sons, based in Madison, Wisconsin, in charge of developing over 450 units. Milo has a Master's of Science in Business, Real Estate Investment from the University of Wisconsin and a Master of Architecture Degree from the University of Minnesota. He is licensed in Minnesota and Wisconsin as a re a I estate broker. Jacob T. Klein, Vice President As Vice President of MSP Development, Jacob has overseen the development of over 700 units of housing totaling over $100 million in project costs. Mr. Kle in has developed private pay assisted living and memory care, mixed income, independent senior, and general occupancy apartments. Jacob is primarily responsible for project development, leading all facets of the development process, including site identification and acquisition, city approvals, financial layering, tax credit approval, construction and lease-up, financing identifying various forms of soft cost subsidies, TIF analysis, construction and long-term debt financing as well as Tax Credit Equity.. Jacob earned his Bachelor of Arts from the University of Colorado and is a licensed real estate agent In Minnesota. MSP Real Estate Market Rate Apartments Unit Completion Louisiana Oaks/St. Louis Par1t, MN City Center at Deer Creek ti, N- Berlin Total 275 Heritage Assisted Living Assisted/Memory Care Units Completion Lexington Heritage, Greenfield Heritage at Deer Run, Eau Claire Heritage at Deer Creak, N-Berlin Heritage Court, Menomonee Falls Heritage Court, Eau Claire Heritage West Allis, West Allis Heritage Monona, Monona Heritage Monona Phase II, Monona Heritage Middleton, Middleton Heritage Elm Grove, Elm Grove Heritage Court Waukesha, Waukesha Totlll MSP Real Estate Section 42 Apartments Units Village Plaza, Paddock Lake 24 Station House, Antigo 40 Mill View, Kiel 24 Courtyard, West Allis 83 Silver Lake Pointe, Mounds View, MN 83 Valley Farms Apartments, Westfield, IN 92 Parkside Townhomes, Redwood Falls, MN 30 Citylide Townhomes, Marshall, MN so Lexington Village, Greenfield 120 Silver Lake Commons, Mounds Vi-. MN 50 Silver Creek Village, Glendale 65 Homestead Village, Chippewa Falis 48 Deer Creek Village, New Ber1in 145 Lincoln Village, Port Washington 49 Monona Senior Apartments, Monona 88 West Anis Senior Apartments, West Allis 122 Chippewa Senior Apart. II, Chippewa Falls 24 City Center at Deer Craek, New Berlin 102 Middleton Senior Apartments, Middleton 56 N- Berlin Senior II, NIW Berlin 34 Meadow Ridge Apartments, Waukesha 70 ToUll 1,371 Contact Information Jacob Klein MSP Real Estate 7201 Walker St., Suite 20 St. Louis Park, MN jklejn@msphousing.com (612) Completion MSP Real Estate and Heritage Assisted Living 2014

7 Project Team Developer: Milo Pinkerton and Jacob Klein MSP Real Estate and Development Company, Inc Walker Street, Suite #20 St. Louis Park, MN Phone: General Contractor: Steve Saucke MSP Construction, Inc Walker Street, Suite #20 St. Louis Park, MN Phone: {608} Management & Operations: Steve Beck Heritage Senior Living, LLC 7201 Walker Street, Suite #20 St. Louis Park, MN Phone: (414) Architect: Jerry Bourquin Dimension IV Madison 313 West Beltine Hwy., Suite #161 Madison, WI Phone: (608) Ema ii: jbou Legal Counsel: Katie Rist Foley and Lardner LLP 150 E. Gilman Street Madison, WI Phone: (608)

8 Development Team Milo Pinkerton, President Milo has developed more than 2300 units spanning over 30 years. Milo's unique background of architecture, real estate and construction has enabled MSP projects to be of consistent high quality, on time and on budget. Milo is primarily responsible for overseeing and directing all aspects of the MSP Family of Companies, ensuring steady growth, consistent profitability and increasing cash flows annually. Miio works hands on with the development and construction company and coordinates management and direction of Heritage and MSPPM through its various staff directors. Prior to forming MSP Real Estate, Inc. Milo was vice president and manager of special projects for ITT Real Estate Services, where he was in charge of the disposition of $50 Million of troubled real estate nationwide. Milo was also project director with a regional development/construction company, Orville E. Madsen and sons, based in Madison, Wisconsin, in charge of developing over 450 units. Milo has a Master's of Science in Business, Real Estate Investment from the University of Wisconsin and a Master of Architecture Degree from the University of Minnesota. He is licensed in Minnesota and Wisconsin as a real estate broker.

9 Jacob Klein, Vice President As Vice President of MSP Development, Jacob has overseen the development of over 700 units of housing totaling over $100 million in project costs. Mr. Klein has developed Private Pay Assisted Living and Memory Care, Mixed Income Independent Senior and General Occupancy Apartments. Jacob is primarily responsible for project development, leading all facets of the development process, including site identification and acquisition, city approvals, financial layering, tax credit approval, construction and lease-up, financing- identifying various forms of soft cost subsidies, TIF analysis, construction, and long-term financing as well as Tax Credit Equity. Jacob earned his Bachelor of Arts from the University of Colorado and is a licensed real estate agent in Minnesota

10 Construction Team Leader Steven Saucke, Vice President I Construction Steve has been in the construction industry for more than 40 years. Originally in residential construction, Steve prided himself on designing and building the best home for each and every client. In 1997, he was offered a position as a Project Manager for a multi-family developer, building market-rate apartments. As the need for secure, affordable senior housing grew in the Midwest, Steve moved in that direction, overseeing the construction of the two largest senior housing facilities in the state of Iowa and multiple senior independent, assisted living, and memory care facilities throughout Wisconsin. Now, with MSP Construction, Inc., Steve manages all aspects of construction, from site development through to turnkey completion.

11 Management Team Leader Stephan S. Beck, Vice President of Operations I Heritage Senior Living Stephan T. Beck, Vice President of Operations for Heritage Senior Living, is responsible for directing the sales and operations efforts of the company, along with ensuring that exceptional care and services are consistently provided to our residents and families. Prior to his role with Heritage Senior living he was employed by Atria Senior Living and responsible for managing the sales and operational efforts of the Midwest. As President of Whiteco Residential he oversaw all property operations including sales and marketing, operating systems and asset management efforts. Whiteco had an operating portfolio of approximately 4,000 apartment units and an additional 1,200 units in development. Before joining Whiteco's team, Stephan was Senior Vice President of Operations for Brookdale living Communities, a leading provider in luxury senior housing. During his time there, he played a major role in developing their operational platform as they grew from 1,100 units to over 12,000 through new development and acquisitions. He also has hospitality experience having worked for Westin Hotels and Resorts. Stephan is a graduate of Washington State University Pullman Washington with a B.S. in Hotel Administration and Business.

12 RESUME JERRY BOURQUIN, AIA Experience Principal Managing Partner Architect 30+ years of experience Registration/Accreditation Registered Architect in Wisconsin (1980) Registered Architect in Illinois (1980) Registered Architect in Vermont (2011) Registered Architect in Missouri (2012) Registered Architect in South Dakota (2013) National Council of Architectural Registration Boards Certification (NCARBI Certified WHEDA Capital Needs Assessment (CNA) Provider Education/Training Master of Architecture, University of Illinois, Urbana-Champaign (1978) Bachelor of Architectural Studies, University of Illinois, Urbana-Champaign (1976) Organizations/Committees/ Memberships American Institute of Architects (AIA) Heritage of Monona Senior Living Commur.ity, Monona, Wisconsin Jerry has extensive experience in the design of assisted living and senior housing facilities. He has provided architectural and construction administration services for housing projects of all types and sizes during his 30+ years as a practicing architect. Heritage of Monona Senior Living Community, Monona. Wisconsin Heritage of Middleton Senior Living Community, Middleton. Wisconsin Bell Tower Place Senior Living Community, West Allis, Wisconsin MSP New Berlin II. New Berlin, Wisconsin MSP Monona II. Monona. Wisconsin Heritage of Waukesha Memory Care, Waukesha, Wisconsin Church Hill Assisted Living, Oregon, Wisconsin Rothschild Assisted Living. Rothschild, Wisconsin Plymouth Assisted Living, Phase 3, Plymouth, Wisconsin Oshkosh Assisted Living, Oshkosh. Wisconsin Sacred Heart at Monastery Lake. Franklin, Wisconsin Appleton Assisted Living, Appleton, Wisconsin Oakwood Village Prairie Ridge Senior Living Campus, Madison. Wisconsin Oakwood Vi!lage University Woods, Mad ison, Wisconsin Alternative Continuum of Care. Dubuque, Iowa Chippewa Falls Senior Housing Phase II, Chippewa Falls, Wisconsin Parkview Gardens Assisted Living Phase Ill & IV, Caledonia. Wisconsin Blessed Sacrament Senior Housing, Madison. Wisconsin Oak Park Place at Grandview Commons, Madison, Wisconsin

13 9/ Katherine R. Rist I People I Foley & Lardner LLP.FOLEY FOLEY & LARDNER LLP Katherine R. Rist Senior Counsel krist@foley.com Katherine R. Rist is a senior counsel and real estate business lawyer with Foley & Lardner LLP. Ms. Rist has experience in real estate transactions, representing financial institutions, land developers, investors, property owners and managers in real property sales and acquisitions, real estate development and zoning matters, including mixed-use and residential condominium developments, and the negotiation of commercial and industrial leases. She is a member of the Real Estate and Finance & Financial Institutions Practices. Locations p Suite East Gilman Street Madison, WI Practice Areas Finance & Financial Institutions Real Estate Ms. Rist concentrates her work in affordable housing development and finance. She has experience representing developers and investors involved in the development of affordable multifamily housing and supportive living projects that use the syndication of low income housing tax credits, rental subsidies, governmental loans and grant programs, including HOME loans and FHLB Affordable Housing Program grants. Ms. Rist also has experience in representing non-profit organizations along with for-profit developers in connection with FHA-insured multi-family loan foley.comlk:ltherine-r-rist/ 1/2

14 9/ Katherine R. Rist I People I Foley & Lardner LLP transactions and direct HUD loans. Education Ms. Rist earned her law degree in 2005 from the University of Wisconsin - Madison (J.D., magna cum /auda), where she was elected to the Order of the Coif. She earned her undergraduate degree in finance and marketing in 2002 from Washington University in St. Louis (B.S., magna cum laude). Recognition She was selected for inclusion in the 2009, 2012 and 2013 Wisconsin Super Lawyers - Rising Stars list for her real estate work. Ms. Rist was also named a Wisconsin Law Journal "Up and Coming" Lawyer honoree for This award recognizes rising stars in Wisconsin's legal community who have demonstrated outstanding leadership, contributed to their community and successfully achieved notable legal outcomes early in their career. Affiliations Ms. Rist serves on the board of trustees for Edgewood High School of the Sacred Heart, Inc. and is a member of the UW Health Department of Obstetrics and Gynecology Community Advisory Council. Admissions and Professional Memberships Ms. Rist is admitted to practice in Wisconsin, and is a member of the Wisconsin State Bar and the American Bar 2014' FOLEY & LARDNER UP 212

15 CORPORATE INFORMATION MSP Real Estate, Inc Walker Street, Suite 20 St. Louis Park, MN Phone: Fax: Federal ID: Private Minnesota Corporation Date Business Started: Date Business Incorporated: 09/88 Officer's Name: Milo Pinkerton Title: President Type of Business: Real Estate Development Heritage Senior Living, LLC 7201 Walker Street, Suite 20 St. Louis Park, MN Phone: Fax: Federal ID: Private Wisconsin Limited Liability Company Date Business Started: Date Business Incorporated: Officer's Name: Milo Pinkerton Title: President Type of Business: Real Estate Management MSP Development Company, Inc Walker Street, Suite 20 St. Louis Park, MN Phone: Fax: Federal ID: Private Wisconsin Corporation Date Business Started: Date Business Incorporated: 08/2011 Officer's Name: Milo Pinkerton Title: Officer. Title: President Jacob T. Klein Vice President Type of Business: Real Estate Development

16 6. Relevant Redevelopment Experience a) Heritage West Allis is a 200 unit senior housing campus developed at the former Laidlaw Bus depot. MSP was selected by the City based on their response to an RFP and conveyed the land for $1. Jacob and the City obtained a brownfield grant to help offset costs related to building demolition and removing an underground leaking fuel tank. The $25,000,000 development consists of a 4 story 122 unit independent senior building interconnected to a 2 story 40 unit assisted living and single story 38 unit memory care community. The project covers 2 city blocks, this craftsman inspired project features high level finishes and exterior construction of split face block, brick, stone and cement board siding. Construction took nearly 16 months and the project leased up ahead of schedule in just under 18 months. Contact Information: John Stibal - Director of Community Development (414)

17 b) 2008 and Heritage Monona a two phase senior housing campus developed at the former garden circle apartments in Monona, WI. MSP was selected by the City based on their response to an RFP and conveyed the land for $1 and provided $2,400,000 in tax increment financing. The $28,000,000 development consists of a 4 story 88 unit independent senior building interconnected to a 2 story 75 unit assisted living memory care and a second phase 2 story 66 unit assisted living and memory care community. The project covers approximately 5 acres. This craftsman inspired project features high level finishes and exterior construction of split face block, brick, stone and cement board siding. Construction took 12 months and the project leased up at a record pace of schedule in just under 9 months and 12 months respectively. Contact Information: Patrick Marsh - City Administartor (606) c) Heritage Middleton a 135 unit senior housing campus developed at a vacant sentry store in Middleton, WI. MSP put the site under contract in 2011 and worked with the City to help remove an eyesore on the gateway to Madison through Middleton. The site required over-excavation and haul off of approximately 10 feet of soil and replacing that soil with engineered fill. This was due to the site previously sitting at the edge of a Jake bed. The City provided $2, 100,000 in tax increment financing and Dane County provided a low interest loan in the amount of $460,000. The $18,000,000 development consists of a 4 story 56 unit independent senior building interconnected to a 2 story 79 unit assisted living memory care community. The project is extremely dense on a site of only 2.2 acres, but fits the urban design standards encouraged by the City. Again his craftsman inspired project features high level finishes and exterior construction of split face block, brick, stone and cement board siding. Construction took 12 months and the project is on pace to be leased up in 12 months.

18 Contact Information: Mike Davis - City Administrator & Director of Community Development (608) d) 2012 and City Center New Berlin consisting of City Center at Deer Creek, Heritage at City Center and City Center at Deer Creek Phase II. City Center Phase I consists of 3 (34) mixed income apartment buildings. The $22,000,000 first phase is 85% affordable and 15% market rate. The project opened 100% pre-leased. Heritage at City Center was also constructed in 2012 and features 34 units for seniors. The project has a similar affordable component and like the general occupancy apartments opened 100% pre-leased.

19 The great success of our first phase led us to start construction of a second phase of 75 apartments in December This project is 80% market rate and 20% affordable and features 1. 2 and 3 bedroom units. Contact Information: Greg Kessler - Director of Community Development (262) e) Heritage Elm Grove is a 98 unit Assisted Living and Memory Care community that rep/aces the former tapco manufacturing facility in Elm Grove, WI. This project represents another successful public/private partnership between MSP and a municipality. Despite its urban location as a second ring suburb of Milwaukee, the Village of Elm Grove for decades had maintained its independence from obtaining municipal water and serves its water needs through wells. MSP worked with the Village and the neighboring City of Brookfield to run a water line to MSP's property which will was paid for through TIF for the project in the amount of $900,000. This allowed MSP to install the fire suppression system necessary to service the building and is sized to service the needs of most of the Village allowing other users to connect to the system and which will help the redevelopment of the downtown business district in the years to come. The Village provided an additional $600,000 in TIF to offset demolition costs and provide for remediation of substandard soils. Contact Information: David DeAngelis - Village Administartor (262)

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21 Rendering

22 Project Description - Stevens Point Senior Campus 7 bl Project Overview As many individuals reach the golden years of their life they decide to simplify their lives and give up the maintenance and responsibilities associated with owning a house. These seniors desire to remain active in the community and maintain the bonds they have established with friends and family over their lifetime. Seniors also want to move to a place that can meet their needs by providing additional care as it is needed, while maintaining their independence as long as possible. To meet these needs MSP Real Estate, Inc is applying to construct a senior housing campus that will meet the housing needs of the residents of Stevens Point, now, and for years to come. If MSP's project is selected by the City of Stevens Point, we plan to demolish the current Edgewater Manor and construct a senior campus. When the building is constructed and ready for occupancy, the seniors that currently lived there, will have an opportunity to move back into our senior campus facility. Our project will be developed on the 1.79 acre parcel located on 1450 Water Street in downtown Stevens Point. This location is ideal for the senior development we are planning because of its close proximity to the senior center, the Green Circle Trail, shopping, churches, and restaurants. Our project entails a one phase development of a senior housing campus of 111 units which will provide a continuum of care and allow the residents to age in place. The project will feature approximately 50 underground parking stalls as well as an additional surface parking space. Unlike many of the senior housing options in the City of Stevens Point, our project will have market rate and income restricted affordable independent senior rental housing, private pay assisted living and memory care as well as hospice and adult day care components. Independent Living Senior independent living will consist of a four story building of 48 units with a mix of market rate and affordable units. This project will feature spacious one, two bedroom aparbnents. Since we will be seeking tax credits, most of the units will be for seniors who earn an income less than $30,900. The monthly rent will vary based on unit type and upon qualification for units reserved for tax credit occupants. Jn Portage County residents making less than $30,900 annually will qualify for these units. Rents for the one bedroom units we expect to range from $ per month. The two bedrooms we estimate will rent for between $ Each unit will feature a full kitchen with finishes and appliances similar to those of our 56 unit, Middleton Independent Senior in Middleton, Wisconsin. Each unit will

23 have its own dishwasher, range, refrigerator/freezer and garbage disposal. Most of the units will have a washer and dryer. Additionally, all of the units will have their own patios or balconies. Assisted Living The Assisted Living will consist of a two story building of 27 Units. These units will be comprised of studios, one and two bedroom apartments for seniors that require assistance with their daily lives. Heritage Assisted Living prides itself on allowing its residents to maintain their independence while offering assistance as it as needed. The monthly rent will vary based on unit type and assessment of care level. Prices include three meals per day and a basic 3.5 hours of care per week that includes; housekeeping, laundry, medication administration, coordination of medical services, 24 hour professional caregiver staff and basic help with the activities of daily living. Pricing will be based on unit type, level of care and selected services. Residents will enjoy units with full bathrooms as well as a kitchenette. Kitchenettes will include cabinets, microwaves, a sink and garbage disposal as well as a refrigerator and freezer. MemorvCare Memory Care will be a single story 36 unit building built that connects to the rest of the senior housing campus. The memory care units will feature studio and suite apartments for individuals with Alzheimer's, Dementia and other conditions that affect one's memory. The monthly rent will vary based on unit type and assessment of care level. Prices include three meals per day and a basic 8 hours of care per week that includes; housekeeping, laundry, medication administration, coordination of medical services, 24 hour professional caregiver staff and basic help with the activities of daily living. Residents will enjoy comfortable private rooms with memory boxes outside to promote independence. Most of the rooms will have individual showers. The facility wiji also feature shower rooms with roll-in showers as well as whirlpool tubs. This building will be completely secured with each door requiring an access code to prevent residents from wandering. Additionally, we will have an enclosed courtyard for residents to enjoy the outdoors without the risk of wandering.

24 7 c) Project Features and Amenities Community Room The community room will be the amenity most utilized by the residents of the Independent building. It will feature a Large Flat Screen Television with surround sound to watch the Packers as well as be available for residents personal use. The community room will also serve as the dining area for residents for meals prepared by the onsite commercial kitchen or catered in. In addition, it will provide a place for residents to get together and socialize, play cards, bingo and converse. Dining Room Both the Assisted Living and Memory Care section of the building will have dining areas which residents will be provided with 3 meals a day prepared in our on site commercial kitchen. Private Dining Room The private dining room will be available free of charge for residents to have a private meal with friends or family members. Activities Our project will have a full time activities director and assistants who plan activities for the entire project. Arts and crafts, activity programs, and much more will be offered to keep our residents of all ages and abilities active and part of the community. Fitness Center The Independent building will feature a senior friendly fitness center with specialized equipment to help seniors feel their best. Beauty Salon There will be a fully equipped beauty salon which will be run by a contracted stylist for the development. Wellness Center There will be a wellness center that will serve as a base for health education, podiatrist and doctor visits as well as blood pressure screening. Construction Materials MSP will work with the City of Stevens Point to create a project that conforms to its design standards. The exterior of the buildings will be constructed of high quality construction materials including, split face block, brick and cement siding. MSP is committed to building its developments with sustainable design features. Several green features will be incorporated into the construction including; energy star rated appliances, 35% forest stewardship wood, Low E windows, panelized framing and components, 3" spray foam insulation on all exterior walls. Other green elements that MSP is currently using in our buildings include radiant in floor heat that is backed by a solar hot water system and high efficiency boilers.

25 Marketing We believe that most residents of our facility will come from within a 5 mile radius of our project. We will work with our management company to do a lot of community outreach to capture as many residents from the City as possible. Typical outreach consists of making contacts at local churches, senior centers and centers on aging to tap into the local marketing network. 7 dl Project Ownership The ownership structure of the project will be similar to the senior campus buildings MSP has done in the past. If selected, MSP Development Company, Inc. will be the owner of the land and assign it to a newly created Limited Liability Company. MSP will also assign newly created Limited Liability Companies to run and operate the building. The names of the Limited Liability Companies will be named at a later date, if selected. 7 el Purchase Price MSP is offering to purchase the property for $1 and obtain $3,000,000 in tax incremental financing through the City of Stevens Point. The City will be paid through the TIF with the new tax base generated. The money MSP receives through TIF would go towards site clean-up, demolition of building, foundations and construction of the new building. The proposed project is contingent on MSP receiving tax incremental financing through the City of Stevens Point. It will also be contingent upon MSP receiving Low Income Tax Credits awarded through WHEDA, Wisconsin Housing and Economic Development Authority. This project will have a total development cost between $16,000,000 to 17,000,000. The project will be financed conventionally through WHEDA, tax exempt bonds. MSP has worked with WHEDA over the past 15 years on several projects developed across the state. 7 0 Project Timeline If selected, MSP would apply for Low Income Tax Credits in February of2015. If MSP is awarded the tax credits, we would be prepared to close by Fall of2015 and start construction in September of2015. We expect construction to take months and lease up to be 12 months for the independent senior living and 18 months for the assisted living and memory care. 7 gl Social and Economic Impact The social impact of our Independent Senior Apartments portion of our project is twofold. One is that we are creating 48 Units of Affordable rental housing for elderly citizens of the community earning less than 60 percent of the area median income. This allows seniors in the community to leave their homes and in tum families move into

26 those affordable houses. This creates affordable workforce housing for families that are currently not in the community. These families stimulate the economy by shopping locally, eating at local restaurants and having school age children that do the same. The social impact of our Assisted Living and Memory Care Community is simple. Heritage Assisted Living, our subsidiary company that provides care to our residents, prides itself on providing the highest level of care and service possible. We have an impeccable reputation in the communities in which we have properties and in this business reputation is what keeps properties full. Our Senior Housing Campus allows residents to age in place. No other senior project in Stevens Point has the continuum of care that we will provide. This continuum of care campus allows seniors in the community to remain connected to friends and family all under one roof. Often times a married couple will move into an Independent Apartment together. As they age in place and their care needs increase we may have one person in Assisted Living or Memory Care and one still in an Independent Apartment. The ability to walk through interconnected buildings to visit friends and family is an extremely positive social impact on the community. This feature really helps to keep the people from Stevens Point in Stevens Point as well as provide a great social setting for people from other communities to move closer to their adult children and feel comfortable in a homelike setting. The economic impact of our project is threefold. Our proposed development would be valued at approximately $7, 770,000 million once full assessed, however the total project costs would be around 15 million. The depreciated value of the tax credits makes our project's assessed value lower than a market rate project, however, once the affordability period expires in 30 years the property would be fully assessed. The second part of our projects economic impact is the full and part-time jobs. Our Independent Apartments will have 1 full time manager position, but the Assisted Living and Memory Care will employ full and part time staff. These jobs include caregivers, a nurse, a marketing director, dietician, administrator, kitchen staff and range from $20,000 to $60,000. The third economic impact of our project is that it will help the construction industry. This size of a project will help improve the overall health of the construction industry and would be a great boost to local contractors. In addition those working on the project will contribute to the local economy by eating at local bars and restaurants. MSP Construction will be the general contractor for this project and we estimate it will create nearly 150 construction jobs. As a practice MSP utilizes emerging businesses, those both minority and woman owned, for at least 25 percent of the total construction contract.

27 8) MSP Portfolio Overview The following page will show MSP's portfolio overview for all developments. If MSP is selected for the purchase and redevelopment of 1450 Water Street, Stevens Point, WI, we would provide more in depth financial numbers to the City of Stevens Point to show that MSP has the financial capacity to develop such a project.

28 LouWJJne. Og& St. Louis Park, MN MSP REAL ESTATE, INC. PORTFOLIO OVER VIEW MARKETRATEAPABTMENTS Number Proiect Names/Location of Units nnancjng Comeletlon Dqte 200 FNMA May2002 Citv r;,,nter (jj IJ,.eer!;_rt,ek Estimated Town Bank New Berlin, WI November 2014 TOTAL 275 Heritage Assisted Living, LLC A SI~IED/~ZllEIMER'S F~~ILITl.ES Number Number PTol«t. Names!LocflJi.oa. ef..unij,f, of Beds EJ.ae.nciall.!l,omDl'1J.g,n DgJ,' Lexif!Zton HW!,ag,e Greenfield. WI Conventional February 2000 Hft.dJ.flll.e at fk.er Run Eau Claire, WI Conventional December 2002 HerltfJU. at Deer C~d, (43 Assisted Care/ 33 Memory Care) HUD January 2004 New Berlin, WI Herltflll.e Cou!J. (Memory Care) Menomonee Falls, WI (All Memory Care) Conventional November 2004 HedJ.gfl.e CoycJ. (Memory Care) Eau Claire, WI Herilgfl.e Watd.llis dllil.ted '9re West Allis, WI MSP October WHEDABond August2009 Heritage Court West Allis Memmy Care MSP September 2009 Herltr1.fl.e MolJ!l.na (37 Assisted Care/ 38 Memory Care) WHEDABond September 2009 Monona, WI Heritar.e Mi!JJIJ..eton (43 Assisted Carel 36 Memory Care) Monona, WI HeritlJl,.e MO!Jfl.l!.a Pb,~ 11 (28 Assisted Carel 40 Memory Care) Monona, WI 10-Year WHEDA 10-Year WHEDA December 2012 November 2012 HedJ.fJJf..e Elm (i,rove 10-Year Estimated (62 Assisted Care/ 36 Memory Care) WHEDA March2014 Elm Grove, WI Herilflll.e Cou!J. Waukesha (Memory Care) Estimated Conventional Waukesha, WI November 2014 TOTAL

29 MSP Real Estate, Inc. TAX CREDIT Elderly (Section 42) APARJMENTS Project Names/ Locations Numbgof Finqncing (;.omdletlejj Units Date ~ddl~oaseniord2art~aj. Middleton, WI 56 US Bank October 2012 New Berlin Senior II New Berlin, WI 34 JPMorgan December 2012!:.hi.IJJ!!:J!.B. ~enior Al!S!.tmentJ. ll Chippewa Falls, WI 24 HOME October 2011!fest Al{lif. S,enioc.A2artme,0,I, West Allis, WI 122 WHEDABond April2009 M.enoUJI. S.t:.nior d2f!rtmeat.t Monona, WI 88 WHEDABond September 2009 Lincoln Village BankMutual Port Washington, WI 49 Conventional December 2002 Hemestead Villa«WPS Chippewa Falls, WI 48 Conventional February 2000 Deer Cc.eek Village US Bank New Berlin, WI 145 Conventional October 2001 S/Jyer C«ek Jlillgge Glendale, WI 65 WHEDABond August2000 Lexington Village Wells Fargo Greenfield, WI 120 Conventional December 1998 Silver Late Pointe Wells Fargo Mounds View, MN 83 Conventional September 1995 r;;.ourtvqrd Wells Fargo WestAllis, WI 63 Conventional September 1995 Kill View Kiel, WI 24 StaJion House Antigo, WI 40 JIUJage Paddock Lake, WI 24 TOTAL 985 Rural Development March 1995 Rural Development 1991 Rural Development 1991

30 MSP REAL ESTATE, INC. TAX CREDIT FAMILY (SECTION 42) APARTMENTS Prolefl. fi.ames/ /,,.~atio!j.l. Numf/.r gj, Fin1111cing '-el11l!.lakl.a. IllJiJ! Date M,.eadow Ritlr.,e All.a~nts 70 Conventional Estimated Waukesha, WI Town Bank September 2014 fi..ew B rlllj Citv '-ah.er 102 Enterprise December 2012 New BerUn, WI Slfver Lq!e Commom Mounds Jliew, MN 50 MHFA February 1999 Qtyside Tqwnhomq Marshall, MN 50 MHFA April 1997 Parbitle Tqwnhom Redwood Falls, MN 30 FNMA Febroary 1997 Valley Farms Apartments Westfield, IN 92 Rural Development May 1996 TOTAL 394

31 OFFICE OF THE CITY ADMINISTRATOR & DIRECTOR OF COMMUNITY DEVELOPMENT CITY OF MIDDLETON PH HUBBARD AVENUE mdavfa 1i.ci.middleton. wi.11s MIDDLETON, WI WEB: September 26, 2014 Mr. Michael Ostrowski Executive Director 1515 Strongs Avenue Stevens Point, WI Dear Mr. Ostrowski, In 2010, MSP presented plans to the City of Middleton to tear down a vacant grocery store and redevelop approximately two and a quarter acres into a 135 unit senior housing campus. This project represents a very successful partnership between the public and private sector as the City provided TIF financing to redevelop one of the City's most blighted sites into a vibrant senior living community. Utilizing TIF, MSP demolished the existing store and remediated significant soil deficiencies that made development of the site otherwise infeasible. During the past couple years we have developed a positive working relationship with Milo Pinkerton and Jacob Klein at MSP Development. Everyone involved in this project was pleased with the professionalism demonstrated by MSP throughout the project. We wish them the best of luck in becoming the developer chosen to redevelop the site at 1450 Water Street in downtown Stevens Point. MSP has been developing high quality products and Heritage Senior Living provides a high level of care that makes their projects an asset to the communities they build and operate them in. Please feel free to contact me at with any questions regarding this project. Sincerely, Mike Davis City Administrator & Director of Community Development

32 5211 SCHLUTER ROAD MONONA, WI CITY HALL (608) FAX (608) September 25, 2014 Mr. Michael Ostrowski Executive Director 1515 Strongs Avenue Stevens Point, WI Dear Mr. Michael Ostrowski, In 2007, the City of Monona acquired the blighted Garden Circle Apartment complex and raised it creating a development site approximately five acres for redevelopment. After issuing an RFP in 2008 the City selected MSP as the developer of choice to develop a multi-phase senior housing campus. Phase I of the project is a 163 unit senior housing campus that exceeded our expectations in the quality of construction and met the value generated related to the TIF for the project. Per our development agreement MSP was to start construction of Phase II by January MSP completed construction of Phase II, 68 units of assisted living and memory care, in December of 2012 which was substantially ahead of our agreement. During the past six years we have developed a great working relationship with Milo Pinkerton and Jacob Klein at MSP Development. Everyone involved in this project was pleased with the professionalism demonstrated by MSP throughout the project. We wish them the best of luck in becoming the developer chosen to redevelop the site at 1450 Water Street in downtown Stevens Point. MSP has been developing high quality products and Heritage Senior Living provides a high level of care that makes their projects an asset to the communities they build and operate them in. Please feel free to contact me with any questions regarding this project. Sincerely, ~~A/...L Patrick Marsh City Administrator/Director of Economic Development POLICE DEPARTMENT 5211 Schluter Road COMMUNITY CENTER 1011 Nichols Road MONONA SENIOR CENTER 1011 Nichols Road FIRE DEPARTMENT 5211 Schluter Road

33 WES1.-.l ALLIS DEPARTMENT OF DEVELOPMENT John F. Strbal 414/ (Fax) City Hall 7525 West Greenfield Avenue West Aiiis, Wisconsin September 29, 2014 Mr. Michael Ostrowski Executive Director 1515 Strongs Avenue Stevens Point, WI Dear Mr. Michael Ostrowski, In 2006, the City of West Allis, acquired a site from the Laidlaw Bus Company consisting of approximately 6 acres located in the middle of our City. We raised the buildings on the site, completed environmental and soil remediation and issued an RFP in After receiving several responses the City selected MSP as the developer of choice to develop a senior housing campus. This is the second project that the City has partnered on with MSP in West Allis. The project completed in 2008 consists of a 200 unit senior housing campus which exceeded our expectations in the quality of construction and met the value generated related to the TIF for the project. During the past seventeen years we have developed a great working relationship with Milo Pinkerton and Jacob Klein at MSP Development. Everyone involved in this project was pleased with the professionalism demonstrated by MSP throughout the project. We wish them the best of luck in becoming the developer chosen to redevelop the site located on 1450 Water Street in downtown Stevens Point. MSP has been developing high quality products and Heritage Senior Living provides a high level of care that makes their projects an asset to the communities they build and operate them in. Please feel free to contact me at with any questions regarding this project. Sincerely, f.{c11d.fj Director of Community Development

34 I h1l1u Ju th'iht Bnulc -.ird Elm G r,1\'l', Wi ~ \ nns in ') ~ t U Phone. _J6 2 1,N_'.~,~ 1, 1,, -,. ~- f11x c:.. VILLAGE OF September 26, 2014 Mr. Michael Ostrowski Executive Director 1515 Strongs Avenue Stevens Point, WI Dear Mr. Michael Ostrowski, In 2011, MSP presented plans to the Village of Elm Grove to tear down a vacant manufacturing facility and redevelop approximately 3.5 acres near our downtown business district into a ninety-eight unit assisted living and memory care community. This is a significant project that has been to date a successful partnership. This project accomplished several goals of the Village including providing for an underserved housing area, elimination of a flood prone building, and the utilization of a tax incremental district to bring in the first extension of municipal water for the Village. Utilizing tax increment financing MSP and the Village extended a water main capable of servicing this development and future redevelopment of the downtown business district. The Village also was able to maximize the taxable value of a parcel that was underutilized in the community. During the past several years we have developed a great working relationship with Milo Pinkerton and Jacob Klein at MSP Development. As with any redevelopment project, there were challenges and changes that needed to be overcome. Those challenges were met and overcome because of the positive and open relationship developed throughout the process. We wish them the best of luck in becoming the developer chosen to redevelop the site at 1450 Water Street in downtown Stevens Point. During our due diligence we found that MSP develops a high quality product and Heritage Senior Living provides a high level of care that make their projects an asset to the communities they build and operate them in and we are glad they became a part of this community. Please feel free to contact me at with any questions regarding this project. Sincerely,. <{):?~ David DeAngelis, ICMA-CM Village Manager Village of Elm Grove