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Metro Plains Presentation .JI1 ETROPLAINS METROPLAINS PROPERTIES, INC METROPLAIN$ DEVELOPMENT, LLC . " h u u s j n K I h , II e tI r I { a " d " '~--~''''''' v,,,, ", VIV ".f UOSUBO ou.oA B"I .. P It 11 I I .I " ~" ~'" , It'll 11 0 'I " . ::>11 lN3WJ013A3a SNIV1JOllJ.3W :::lNI 'S31.1ll3dO"ljd SNIY1JOll.131ol SNIV"IdmU3ty' ,"pUVIIJva~ a~1 8u!"no~" JO JUiJUlJ!UlUlO:J SJ! OJ 1{:Jvwddv UlDiJJ V puv NS'UOlJ 'N!JaJU!S s8U!Jq puv 'In Jo . o " .~ :E 1f~ B t -E ,3'~ rIlv .:f <8.=o.b .s~ :2~~~E~ ~l-< ~g-g'g~.5-g.8.~ '~-t:i~OfJ:::.~~~v ~~~.Sa"~€'~'" CIlEo..=a;iQuB Ul-<:~ ~_~ ~.s~ >.~ ~ ~~-g i:::c'8~5b:.:l.~cu 0. 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" GARSTEN/PERE.'\I;\IIAL /lJalltlgemenl Corporalion Exceptional Service Although you may not have time to handle daily operations at your property, you still want to be informed. GarstenlPerennial Management Corporation provides a range of services not only for quality management, but also for investor peace of mind. Market Rate Properties Ranging from office buildings to residential and mixed use historic structures, GarstenJPerennial properties receive the best in financial management, marketing and maintenance. As part of this team, you are informed every stl:p of the way. Property managers and leasing agents develop an aggressive marketing plan to showcase the property. Mindful of Fair Housing regulations and leasing policies, they will screen and process applications and maintain waiting lists to ensure minimal vacancies. Garsten/Perennial's accounting staff provides monthly income reports and balance sheets through the latest property management software. Centralized accounting also ensures that rents are collected and bills are paid promptly. Bef(.>re the new year, GarstenlPerennial property managers prepare an annual budget for your property. j I . '112> :: . :+ , : ,} " q ..... . .;;;; :0;~:: '''1<".i >"dd "':::::; desi~<Ji$i comm~ic!~!i recoriH#iW ownerS ani( ~ country: AHordable Multi-Family Developments On-Si";~ Any growing community will tell you that affordable multi-family housing is in demand. Garsten/Perennial's experience with government funding and compliance agencies provides 1eadl:rship f<.)r thb complex investment opportunity. Each phj~ site manag~rf and teruWt1~ ~ The site. inail. groundskeepi The site man. manager. Pro! for budgets, fi decisions and with owrie~; Together; ~ inspel.'tiQtlS; .2 competiti\.l: ~ and tenoVatiQ curb appeal ~ Management~1 staff with a :w propertY:S 11!\ GarstennJerennial staff tracks thl: latest issues by serving on various housing councils in the region. Staff expertise includcs HUD-Section 8, Rural Development programs and Low Income Housing Tax Credits administration. In addition, the staff contributes a mix of human resources, reall:state, social work, and legal experiencc. Property managers, site managers and occupancy specialists are trained in all aspects of an<.)f(.Iablc housing, leasing and occupancy standards. They arc encouraged to pursuc continuing education and nationally recognized professional certifications. Many already carry these 'I J "After working with Garsten/Perennial staff for morp tha., expect timely and consistent financial informdtionJ professional relationship has been an important part of Outside Auditor and Partner Auditing and Income Tax Firm ,0 JO 1.tl)(11UV1.tO , , :.UOI~pWJO~UI II . I 7 . . vql dJOUl .toJ fft ;l;:)l[~~UJ ptm s~~:re~" ;>nbiun s,,\u;)doJd .no", JO :>llp",hl.oIDj lluP!J"'" . ql!"'- J1"1S ;>PJA?xd os~. 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MARKET RATE AND COMMERCIAL PROPERTIES DEVELOPED OR ACQUIRED BY METROPLAlNS DEVELOPMENT, LLC MetroPlains Development, LLC also develops and operates commercial/retail properties and market rate multi-family properties. The commercial space is often part of housing developments in central business districts. MetroPlains works closely with the community to fulfill local needs and reposition these properties in the marketplace. University Centre at 1919 LLP UNIVERSITY CENTRE AT 1919 SI. Paul, Minnesota 5-story office building substantially rehabilitated into multi-user office space 104,000 gross square feet Completed 1997 Conventional First Mortgage $2,400,000 Tax Increment Financing by the city $1,400,000 Equity raised through cash flow and appreciation PARK MANOR AT ACADEMY VILLAGE, INC. Devils Lake, North Dakota 25 Unit Congregate Facility Completed 1995 Conventional Financing Equity raised through cash flow and appreciation Spruce Tree Centre, LLP SPRUCE TREE CENTRE SI. Paul, Minnesota Acquisition of office/retail building Repositioned to 128,000 square foot office building Acquired in 1994 Conventional First Mortgage $2,750,000 Equity raised through cash flow and appreciation RPI Limited Partnership # 14 FARNAM 1600 Omaha, Nebraska 14 Story Building with 81 Market Rate Apartments and 15,000 Square Feet of commercial space Completed 1989 Renovation of 1916 National Register Bank/Office Building Conventional First Mortgage $1,800,000 Equity Raised through Historic Tax Credits Tax Increment Financing $700,000 HUD Section 312 Second Mortgage $370,000 Additional partnerships in Kansas, North Dakota and Oklahoma have retail space in conjunction with historic rehabilitation of Central Business District Structures. Financing and equity was raised in conjunction with the housing component. 37,000 Gross Square Feet Completed 1980 through 1997 s:\metrpln\brochure\mktrate.doc AFFORDABLE HOUSING PROPERTIES DEVELOPED OR ACQUIRED BY METRO PLAINS DEVELOPMENT, LLC MetroPlains Development, LLC and its Principals have developed the following housing properties during the past eighteen years. We continue to own and operate these developments. Residential occupancy has averaged better than 95% over the last ten years. Each partnership generating housing tax credits (LlHTC) or historic tax credits has equaled or exceeded commitments to our investing partners. MOl Limited Partnership #58 WILLOW RUN TOWNHOMES Owatonna, Minnesota First Mortgage with Norwest Bank $471,880 Minnesota Housing Finance Agency $210,000 Greater Minnesota Housing Fund $240,000 Tax Increment Financing $104,000 Equity raised through LlHTC 24 Units Family Housing Completed 1999 New Construction MOl Limited Partnership #61 BURLINGTON APARTMENTS Burlington, Iowa HOME Funds $699,972 First Mortgage with Midland Mortgage $1,432,500 City loan and TIF $1,000,000 Downtown Partners (Main Street) loan $250,000 Affordable Housing Program loan $150,000 75 Units Senior Housing Completed 1998 Historic Rehabilitation of 1911 hotel MOl Limited Partnership #42 PEARL PLACE APARTMENTS Belvidere, Illinois HOME Funds $1,275,671 First Mortgage with Boston Capital $1,030,000 Tax Increment Financing $250,000 Affordable Housing Loan $171,000 Equity raised through Historic Tax Credits and LlHTC 56 Units Senior Housing Completed 1998 Historic Rehabilitation of 1893-1916 school complex MOl Limited Partnership #40 HUNTERS RUN TOWNHOMES Sturgis, South Dakota HOME Funds $6 I 0,029 First Mortgage with First Western Bank $201,419 Equity raised through LlHTC 24 Units General Occupancy Completed 1998 1 MDI Limited Partnership #67 TERRACE VIEW APARTMENTS Monticello, Minnesota 26 Units General Occupancy Completed 1998 AcquisitionlRehabilitation First Mortgage from USDA-Rural Development $689,848 HOME Funds $266,820 Equity raised through L1HTC Aldridge Accommodated Living Limited Partnership ALDRIDGE APARTMENTS McAlester, Oklahoma Aldridge Developers, Inc. 66 Units Senior Housing Completed 1997 Historic Rehabilitation of 1929 Hotel HOME Funds $125,888 Affordable Housing Loan $224,000 First Mortgage from USDA-Rural Development $2,500,000 Equity raised through L1HTC and Historic Tax Credits MDI Limited Partnership #53 WILL ROGERS CENTER Claremore, Oklahoma Rogers County Historical Society Wa-Ro-Ma Community Action 38 Units Senior Housing Completed 1997 Historic Rehabilitation of 1929 Hotel HOME Funds $350,000 Affordable Housing Loan $150,500 Rogers County Historical Society $299,500 Construction Loan $680,000 Permanent to be placed in 1998 Equity raised through L1HTC and Historic Tax Credits Hills Limited Partnership HILLS APARTMENTS Deadwood, South Dakota Neighborhood Housing Services of the Black Hills 27 Units Family Housing Completed 1997 24 units new construction! 3 units Historic Rehabilitation of 1895 family home HOME Funds $1,342,509 Affordable Housing Grant $65,000 Tax Increment Financing by City $134,600 Deadwood Historic Preservation $80,000 MDI Limited Partnership #59 OAK RUN TOWNHOMES Coon Rapids, Minnesota 16 Units Family Housing Completed 1997 New Construction MHF A Low Income Large Family $396,000 MHF A First Mortgage $ 275,237 HOME Funds $60,000 Equity raised through L1HTC 2 MDI Limited Partnership #55 ITHICA HEIGHTS APARTMENTS Bismarck, North Dakota 47 Unit Family Housing Completed 1997 New Construction Conventional First Mortgage $1,361,600 Equity raised through LIHTC MOl Limited Partnership #4] CEDAR RUN TOWNHOMES Owatonna, Minnesota 24 Unit Family Housing Completed 1997 New Construction MHF A Affordable Rental Investment $450,000 Conventional First Mortgage $381,000 Tax Increment Financing by City $145,000 Equity raised through LIHTC MDI Limited Partnership #49 THE STILWELL Pittsburg, Kansas HOME Funds: $300,000 Conventional Financing: $567,027 Revenue Bonds for Construction Financing and Sales Tax Redemption Provide by the city Affordable Housing Program: $100,000 Community Development Block Grant $285,000 KS Historic Trust Fund Grant $75,000 Equity Raised through Historic & LIHTC Stilwell Heritage & Education Foundation 44 Unit Senior Housing Completed 1997 Historic Rehabilitation of 1899 Hotel MDI Limited Partnership #33 PARK PLACE II Devils Lake, North Dakota Non Profit Partner, Senior Meals and Services 24 Unit Senior Congregate Housing Completed 1997 New Construction Rural Development Funds: $763,800 HOME Funds: $300,000 Equity Raised through LIHTC MDI Limited Partnership #52 SABINE HOUSE Garden City, Kansas HOME Funds $255,000 Conventional Financing $255,]84 Revenue Bonds for Construction Financing and Sales Tax Redemption Provided by the City Affordable Housing Program $66,500 Equity Raised through Historic & LIHTC Non Profit Partner,Great Plains Development, Inc. 19 Units Senior Housing Completed 1996 Historic Rehabilitation of 1910 junior/senior high school 3 . MDI Limited Partnership #54 BELLE PLAINE APARTMENTS Belle Plaine, Minnesota 19 Apartment Units 6 Townhome Units Completed 1996 Acquisition/Rehabilitation Conventional Financing $530,000 Equity Raised through LlHTC Section 8 Housing Assistance Payment Contract MDI Limited Partnership #51 BEAR RUN White Bear Lake, Minnesota 22 Unit Family Housing Completed 1996 New Construction MHFA Mortgage $242,530 MHFA Large Family Second Mortgage $423, 500 HOME Funds $275,000 Equity raised through LlHTC MDI Limited Partnership #24 STONEHOUSE Cannon Falls, Minnesota Non Profit Partner-Care & Share Foundation 32 Unit Seniors Congregate Facility Completed 1995 Historic Rehabilitation of 1893 and 1910 elementary school HOME Funds $448,000 Conventional Financing $453,934 TIF-City Participation through Tax Increment Financing Affordable Housing Program $75,000 Equity Raised through Historic & LIHTC MDI Limited Partnership #31 TANGLEWOOD APARTMENTS Belle Fourche, South Dakota 24 Unit Family Housing Completed 1995 New Construction Rural Development 515 Mortgage $976,370 Rural Development Rental Assistance for 24 Units Equity Raised through LlHTC MDI Limited Partnership #35 RIVERSIDE MANOR Grand Forks, North Dakota Non Profit Partner-Greater Grand Forks Senior Citizen Association 38 Unit Congregate Facility Affordable and Market Rate Units Completed 1995 Historic Rehabilitation of 1907 hospital & 1913 nurse's residence HOME Funds $400,000 Conventional First Mortgage $784,900 National Trust Loan $123,000 Affordable Housing Program Interest Write-Down Tax Abatement from the City of Grand Forks Equity Raised through Historic and LlHTC 4 MOl Limited Partnership #45 VILLARD TERRACE Dickinson, North Dakota Non Profit Partner-Stark County Council on Aging 42 Unit Seniors Congregate Facility Completed 1995 Rural Development Section 515 Mortgage $1,591,440 Rural Development Rental Assistance for 42 Units City Participation through Tax Increment Financing MOl Limited Partnership #37 OLD MAIN Canton, South Dakota 26 Unit Housing Completed 1995 Historic Rehabilitation of 1902 Ausguslana College building HOME Funds $428,062 Conventional First Mortgage $352,168 Affordable Housing Program $46,000 City Participation through Tax Increment Financing Equity Raised through Historic & LIHTC Tax Credits MOl Limited Partnership #28 ROLLING HILLS Spearfish, South Dakota 24 Unit Family Housing Completed 1995 New Construction Rural Development 515 Mortgage $987,211 Rural Development Rental Assistance for 24 Units Equity Raised through LIHTC Tax Credits MOl Limited Partnership #23 BUCKMAN APARTMENTS Little Falls, Minnesota 27 Unit Congregate Facility Completed 1995 Historic Rehabilitation of 1892 Hotel and 1890 Firehall Rural Development 515 Mortgage $1,112,610 Rural Development Rental Assistance for 18 Units Affordable Housing Grant $54,000 Small Cities Grant $339,000 Equity Raised through Historic and Housing Tax Credits MOl Limited Partnership #44 PHEASANT RUN TOWNHOMES Red Wing, Minnesota MHFA Mortgage $178,500 MHFA Large Family Second Mortgage $495,000 Red Wing HRA Loan $99,000 Equity Raised through LIHTC 20 Unit Family Housing Completed 1995 New Construction MOl Limited Partnership #21 PINEWOOD I Ashland, Wisconsin 24 Unit General Occupancy Completed 1995 New Construction Rural Development Rental Assistance for 24 Units Rural Development 515 Mortgage $1,047,400 Equity Raised through LIHTC 5 . MOl Limited Partnership #27 PONY RUN APARTMENTS Marsyville, Kansas 24 Unit Family Housing Completed 1994 New Construction Rural Development 515 Mortgage $826,500 Rural Development Rental Assistance for 24 Units Equity Raised through L1HTC MOl Limited Partnership #32 PARK PLACE I Devils Lake, North Dakota Non Profit Partner-Senior Meals and Services 24 Unit Senior Congregate Housing Completed 1994 New Construction Rural Development Mortgage $950,660 Rural Development Rental Assistance for 24 Units Equity Raised through L1HTC MOl Limited partnership #25 HERITAGE SQUARE Richardton, North Dakota 19 Unit Senior Housing Acquired 1994 HUD Section 8 Contract for 8 Units Conventional Financing Equity Raised through Cash Flow and Appreciation MOl Limited Partnership #29 BLUFFS EDGE APARTMENTS Sturgis, South Dakota 24 Unit Multi Family Housing Completed 1994 New Construction Rural Development 515 Mortgage $907,900 Rural Development Rental Assistance for 20 Units MOl Limited Partnership #26 REHWINKEL SENIOR HOUSING Winfield, Kansas 36 Unit Senior Housing Completed 1993 Renovation of 1915 National Register Dormitory Rural Development 515 Mortgage $1,871,280 Affordable Housing Grant $90,000 Equity Raised through Historic Tax Credits and L1HTC Rural Development Rental Assistance for 36 Units Revenue Bonds for Construction Financing and Sales Tax Redemption Provided by the City MOl Limited Partnership #43 EAST RIDGE APARTMENTS Marysville, Kansas 38 Unit Senior Housing Acquired 1993 Moderate Rehabilitation Conventional Financing Purchased from City of Marysville HUD Section 8 Rental Assistance for 38 Units Equity Raised through L1HTC 6 MOl Limited Partnership # 19 THE POSTHOUSE Jamestown, North Dakota Non Profit Partner-James River Seniors 36 Unit Senior Congregate Housing Completed 1992 Renovation of 1928 National Register Post Office New Addition Added Rural Development 515 Mortgage $1,440,660 Equity Raised through Historic Tax Credits and LIHTC Rural Development Rental Assistance for 36 Units Parking Lease and 3 Year Property Tax Freeze provided by the City RPI Limited Partnership #30 THE GILLMORE Deadwood, South Dakota 14 Unit Multi Family Housing Completed 1992 Renovation of 1892 National Register Hotel New Addition Added City of Deadwood First Mortgage $500,000 Affordable Housing Grant $27,500 Equity Raised through Historic Tax Credits and LIHTC Eight Year Property Tax Freeze provided by the State Featured in: South Dakota Housing Update, Summer 1992, Page 3 Section 42 Outlook, July 1992, Pages 2-4 RPI Limited Partnership #20 COURTHOUSE SQUARE APARTMENTS Ottawa, Kansas Rural Development 515 Mortgage $933,140 Affordable Housing Grant Rural Development Rental Assistance for 23 Units Equity Raised through Historic and Housing Tax Credits and LIHTC City Participation through Acquisition Write-Down, Parking Lease and 3 Units of Rental Assistance Sales Tax Exemption from the State of Kansas 26 Unit Senior Housing Completed 1992 Renovation of 1913 National Register Hotel DFK Limited Partnership RIDGEVIEW Sisseton, South Dakota 8 Unit Multi Family Housing Acquired 1992 Moderate Rehabilitation Rural Development Mortgage Assumed $ 138,700 Rural Development Rehabilitation Mortgage $93,600 Rural Development Rental Assistance for 8 Units Equity Raised through LIHTC DAKOTA MANOR (2 Projects) Devils Lake, North Dakota Harvey, North Dakota Each project: 24 Unit Multi Family Housing Acquired 1991 Acquired and Refmanced through RD Prepayment Process. Our Interest was then Assigned to a Community Based Non Profit Organization. 7 . RPI Limited Partnership #22 BRIDGE RUN TOWNHOMES Cannon Falls, Minnesota 18 Unit Multi Family Housing Completed 1991 New Construction Townhomes MHF A First Mortgage $233,733 MHFA Large Family Second Mortgage $360,000 Tax Increment Financing and Land Write-Down provided by the Community Equity Raised through LIHTC RPI Limited Partnership #18 THE OSAGE Arkansas City, Kansas 38 Unit Senior Housing Completed 1991 Renovation of 1921 National Register Hotel Rural Development First Mortgage $1,245,942 Sales Tax Exemption from the State of Kansas Equity Raised through Historic Tax Credits and LIHTC Land Write-Down and Parking provided by the Community Rural Development Rental Assistance for 26 Units MDI Limited Partnership #17 GILBERTSONIFIREHOUSE Devils Lake, North Dakota 40 Unit Multi Family Housing Completed 1990 Renovation of 1936 National Register District Apartment Building and 1912 Fire Station Non Profit Partner - Senior Meals and Services Rural Development First Mortgage $1,550,000 Rural Development Rental Assistance for 40 Units Equity Raised through Historic Tax Credits and LIHTC Write-Down of Fire Hall, Parking Lease and 3 Year Tax Freeze provided by the Community Featured in: America Restored, Preservation Press, 1994, Page 232 Wildwood Limited Partnership WILDWOOD APARTMENTS Ironwood, Michigan 24 Unit Senior Housing Completed 1989 New Construction Rural Development Mortgage $765,025 Rural Development Rental Assistance for 24 Units Equity Raised through LIHTC Permanent Property Tax Abatement by the Community RPI Limited Partnership #15 HILLTOP VILLA Jamestown, North Dakota 16 Unit Multi Family Housing Acquired 1988 Moderate Rehabilitation Rural Development Mortgage Assumed $257,000 Rural Development Rehabilitation Mortgage $10 1,900 Rural Development Rental Assistance for 16 Units Equity Raised through LIHTC 8 RPI Limited Partnership #15 NEWPORT APARTMENTS Devils Lake, North Dakota 17 Unit Multi Family Housing Completed 1988 Renovation of 1929 National Register Apanment Building Rural Development First Mortgage $563,600 Rural Development Rental Assistance for 17 Units Equity Raised through Historic Tax Credits and LlHTC Three Year Tax Freeze provided by the Community GLS Limited Partnership #13 UNION PLACE Black River Falls, Wisconsin Rural Development First Mortgage $688,000 Rural Development Rental Assistance for 2 I Units Equity Raised through Historic Tax Credits School and LlHTC Land Write-Down provided by the Community 21 Unit Senior Housing Completed 1987 Renovation of 1871 National Register Rangetown Properties Limited Partnership RANGETOWN South Range, Michigan 30 Unit Multi Family Housing Acquired 1985 Rural Development Financing $905,760 Peaceful Haven Limited Partnership PEACEFUL HAYEN Dickinson, North Dakota 82 Unit Senior Housing Acquired 1985 Moderate Rehabilitation Completed 1992 Conventional Financing $1,300,000 HUD Section 8 Rental Assistance for 50 Units Equity Raised through Pre-1986 Tax Act Incentives for Affordable Housing and LlHTC Pioneer Haven Limited Partnership PIONEER HAYEN Dickinson, North Dakota Rural Development Mortgage $300,000 for 14 Units HUD Section 8 Rental Assistance for 24 Units Rural Development Rental Assistance for 14 Units Conventional Financing $400,000 for 24 Units Equity Raised through Pre-1986 Tax Act Incentives for Affordable Housing 38 Unit Senior Housing Acquired 1985 GLS Limited Partnership # I I HOLIDAY VILLAGE Devils Lake, North Dakota 40 Unit Multi Family Housing Acquired in 1985 HUD Insured 221(d)(4) Mortgage $876,600 HUD Section 8 Rental Assistance for 40 Units Equity Raised Based on Cash Flow and Appreciation 9 - GLS Limited Partnership #9 THE OPERA HOUSE Devils Lake, North Dakota 20 Unit Senior Housing 13,000 Square Feet Commercial Space Completed 1985 Renovation of 1895 National Register Commercial Space/ Apartment Building Rural Development First Mortgage $720,000 Rural Development Rental Assistance for 9 Units Equity Raised through Historic and Housing Tax Credits Three Year Property Tax Freeze provided by the Community GLS Limited Partnership #8 FIFTH AVENUE APARTMENTS Devils Lake, North Dakota 36 Unit Multi Family Housing Purchased 1984 Conventional Financing $580,000 Equity Raised Based on Cash Flow and Appreciation 28 Unit Multi Family Housing Completed 1984 Renovation of 1909 National Register School Rural Development 515 Mortgage $1,035,500 Historic Grant $45,000 Rental Assistance for 20 Units Equity Raised through Pre-1986 Tax Act Incentives for Affordable Housing Three Year Property Tax Freeze provided by the Community GLS Limited Partnership #6 ACADEMY PARK Devils Lake, North Dakota Featured in: Building on the Past: A Guide to Historic Preservation and Affordable Rural Housing, Housing Assistance Council, Inc., August 1988, Page 6. Architectural Minnesota, September/October 1984, Pages 30-31. GLS Limited Partnership #2 THE JAMESHOUSE Jamestown, North Dakota Rural Development 515 Mortgage $2,540,000 Section 8 Rental Assistance 33 Units 70 Unit Senior Housing Rural Development Rental Assistance 9 Units Completed 1983 Community Development Block Grant $38,000 Historic Rehabilitation of Pre- WWI Hospital Equity Raised through Pre-1986 Tax Act Incentives for New Addition Added Affordable Housing Featured in: Building, Design and Construction, February 1984. Pages 87 and 90. GLS Limited Partnership #5 CENTRAL PLACE Maddock, North Dakota 12 Unit Senior Housing Completed 1982 New Construction Rural Development 515 Mortgage $340,100 Equity RaIsed through Pre-1986 Tax Act Incentives for Affordable Housing 10 GLS Limited Partnership #4 TURTLE LAKE MANOR Turtle Lake, North Dakota 12 Unit Senior Housing Completed 1982 New Construction Rural Development First Mortgage $358,000 Rural Development Rental Assistance for 12 Units Equity Raised through Pre-1986 Tax Act Incentives for Affordable Housing GLS Limited Partnership #3 RYAN HOUSE Grand Forks, North Dakota HUD Insured 221(d)(4) Tax Exempt Mortgage HUD Section 8 Rental Assistance for 40 Units Equity Raised through Pre-1986 Tax Act Incentives for Affordable Housing Three Year Property Tax Freeze provided by the Community 40 Unit Senior Housing 1,200 Square Feet Commercial Space Completed 1981 Historic Rehabilitation of 1920's Hotel GLS Limited Partnership #1 THE GREAT NORTHERN Devils Lake, North Dakota 38 Unit Senior Housing 5,000 Square Feet Commercial Space Completed 1980 Historical Rehabilitation of 1911 Hotel Rural Development 515 Mortgage $1,230,250 HUD Section 8 Rental Assistance for 38 Units Equity Raised through Pre-1986 Tax Act Incentives for Affordable Housing Featured in: Building on the Past: A Guide to Historic Preservation and Affordable Rural Housing, Housing Assistance Council, Inc., August 1988, Front Cover and Page 6. Journal of Housing, February 1981, Front Cover and Page 102. Building, Design and Construction, February 1984, Pages 87 and 90. New Directions in Rural Preservation, U.S. Dep!. ofInterior, HCRS Pub. #45, 1980, Pages 67-68. North Dakota Historv, Spring 1989, Inside Cover, America Restored, Preservation Press, 1994, Pages 232-233 February 17, 2000 s:\metropln\brochures\finished.doc 11 PROPERTIES CURRENTLY UNDER DEVELOPMENT OR ACQUISITION BY METROPLAINS DEVELOPMENT, LLC MetroPlains Development, LLC develops and acquires quality, affordable housing in the Midwest. The following properties under development or acquisition represent projects which we have devoted significant time and/or capital to determine feasibility. KANSAS Wichita - MetroPlains has entered into a development agreement with the City of Wichita to redevelop a full city block in downtown Wichita. This redevelopment includes the rehabilitation of? building including the historic Eaton Hotel, into 84 affordable and market rate apartments and 30,000 square feet of commercial space. A new building will also be constructed which will provide 40 new housing units over three levels of parking. MINNESOTA New VIm - MetroPlains proposes to rehabilitate St. Mary's Church/School to create 36 affordable apartment homes for seniors. Construction is scheduled to begin in early 2000. Monticello - MetroPlains has applied to the Minnesota Housing Finance Agency for housing tax credits and second mortgage financing of28 units of affordable family housing. SI. Cloud - MetroPlains is working to substantially rehabilitate St. Raphael's Convent. Financing alternatives are presently being explored. Senior housing is expected for the building, which is anticipated to begin construction in late 1999. NEBRASKA Scottsbluff - Rural Development has awarded a first mortgage the substantial rehabilitation of the Lincoln Hotel into a 36 unit senior complex. The City has established a tax increment district and the program has received a FHLB Affordable Housing Program loan. The project has recently received Housing tax credits and CDBG funds are also being applied for. NORTH DAKOTA Bismarck - MetroPlains has received Housing Tax Credits and is building 44 units of affordable housing for families in Bismarck. BNC National Bank is providing construction financing. Completion is expected in the fall of 1999. Dickinson - MetroPlains has received Low Income Housing Tax Credits and Tax Increment Financing for the construction of23 units of senior housing. MetroPlains has applied to the Affordable Housing Program for additional funding. Grafton - MetroPlains is working to rehabilitate two buildings on the Developmental Center campus. MetroPlains has received Low Income Housing Tax Credits, HOME funds, a Community Development Block Grant Loan, an Affordable Housing Loan and Tax Increment Financing for the construction of 49 units of senior housing. Mandan - MetroPlains has received Low Income Housing Tax Credits and HOME Funds to construct 44 units of senior housing. Affordable Housing Program funds have been applied for from the Federal Home Loan Bank of Des Moines as well as CDBG funds from the Governor's discretionary funds. Request for Proposals are being sent out for commercial development on the first floor. Graud Forks - MetroPlains has received Low Income Housing Tax Credits, Tax Increment Financing and HOME funds to rehabilitate the former South Junior High School into 45 units of Senior Housing. OKLAHOMA Sapulpa - MetroPlains is working to substantially rehabilitate the Berryhill Building. Financing vehicles include Housing Tax Credits, HOME funds, Affordable Housing Program funds and construction and permanent loans with two local banks. Sapulpa Main Street, a local non-profit organization that promotes downtown economic development, is our co- general partner. All financing is in place and construction should begin in the fall of 1999. Shawnee - MetroPlains has partnered with a local non-profit, Action, Inc. and plans to substantially rehabilitate the former Aldridge Hotel. The current development proposal calls for creating 61 apartment homes for seniors. Financing applications are pending. SOUTH DAKOTA Lead - Rural Development has obligated funds for renovating Caledonia Heights, a 39-ooit development for families. When complete, there will likely be 15 market rate apartment homes and 24 apartment homes with rental assistance. Februmy 17,2000 s:\metrpln\brochure\current.doc 2 1. 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I"'"\.;j ::s 0 ~ -...... u a) "'O:~ u:l > (I)::S .n (I) .... 0" "'" 1"'"\ ,~, ..!.! u .-8.... ... 0.<: '" ~ ..;l S_ 0.'0 O v 0 <:: U a 0':;:J .0 ~ 00 O"'~ 0", 0 0". ~ . :€ :^. ~ : ~. ~ ~ ~ ~ ~ ~.'" ~ ~.~ ~.N ~.~ ~.'" ~^ ~ ~.N g~.N :~.'" g a ~_:.g ] ~ ~ ~. g ~ u 05.8 oeo ~ .!; :5 ~ ~ 6 ~ , '0 '" bl) '" a .:!J 2 ~ <Ill!l .~ OJ t:: '" "'~ 0.", 8 <:: p., 0 ~ J!',~j flU. ll~rJ.1 ~ . --z- @ " l MDI Limited Partnership #61 Renovation of the Hotel Burlington Burlinqton, Iowa Hotel Burlington - South - West elevations Hotel Burlington - Adjoining Building at the north elevation ~~r.;,~,~,( ,~ ., ~ ,F \\ l~ I J I ! The Great Northern Devils Lake, North Dakota Type Renovation of the Great Northern Hotel Occupany Senior Housina Units 38 Completed 1980 - fit ETROPLAINS - ::- E v : ~ 0 l: "" :: "'l T I 'j : (6121 646 7846 . FAX 161:') 6.46 8947 The Osage Arkansas City, Kansas Type Renovation of the Osage Hotel Occupancy Senior Housing Units 38 Completed 1992 (6121646-7848 a FAX (612) 646-8947 _ .;ftETRoPLAINS_ DEVELOPMENT INC The Stonehouse Cannon Falls, Minnesota - " Type Renovation of an 1893 and 1910 elementarv school Occupancy Senior Conqreqate Units 32 Completed 1995 Farnam 1600 Omaha, Nebraska .,\~ , ~ 'f' ~ . ~ -, ~ " .. , ,~ ,. -,,' '., " , " . . . ~ . Type Renovation of a 1916 bank and office building Occupancy Market rate housing and commercial space Units 81 Completed 1989 - AETROPLAINS_ DEVElO'I'1ENT I !'.Ie (6121646.7848 . FAX (6121646-8847 The Posthouse Jamestown, North Dakota Type Renovation of National Register Post Office Occupany Senior Conaregate Units 36 Completed 1992 - .fi1 ETROPLAINS DEVELOPMENT INC (612) 646 7848 . FAX (612) 646 8947 RELATIONSHIP AMONG METRO PLAINS DEVELOPMENT, LLC, METRO PLAINS PROPERTIES, INC. AND GARSTEN/PERENNIAL MANAGEMENT CORPORATION The three functions of development, investment and management have been organized into three companies that have their own mission, goals and business plans. Common ownership and a council made up of the president of each company coordinate the activities for the common good. Quality and innovative development, long term hands on commitment to ownership and superior management capability over a wide geographic area are critical elements to our success. MetroPlains Development, LLC, a Minnesota limited liability company, provides development services including market research, site analysis, design, construction administration, financing, community relations and accessing government programs. Substantially all of these services are provided for MetroPlains Properties, Inc. and its nonprofit, co-general partners. MetroPlains Properties, Inc., a Minnesota corporation, and/or its principals act as managing general partner for 66 real estate limited partnerships. Market rate, multi-family and office buildings, represent the majority of its investment value, but comprise a small number of properties. General partnership interests in affordable housing developments make up the remaining portfolio. MetroPlains Properties, Inc. provides partnering capabilities, cash investment and asset management services to the partnerships. GarstenIPerennial Management Corporation, a Minnesota corporation, provides property management services including marketing, maintenance, compliance monitoring and accounting services, in seven Midwest states. The majority of its management contracts are with limited partnerships where MetroPlains Properties, Inc. or its principals are the managing general partner. Other customers are affordable housing developers, lenders, nonprofits and townhome and condominium homeowners associations. Legally, and for tax purposes, MetroPlains Development, LLC is a 98% owned subsidiary of MetroPlains Properties, Inc. The remaining 2% is owned by shareholders of MetroPlains Properties, Inc. MetroPlains Properties, Inc. and Garsten/Perennial Management Corporation operate as'S' corporations. SHAREHOLDERS SHAREHOLDERS Gary L. and Rita J. Stenson Lawrence W. and Marie B. Olson LaVerne Hanson, Jr. Gary L. Stenson Lawrence W. Olson Diane F. Nelson Michael A. Koch 2% / L " )100% " ,1/ 100% 98% GarstenlPerennial Management Corporation , December 14, 199& s:\metropln\brochure\relation.doc BRIEF DESCRIPTION OF METROPLAINS DEVELOPMENT, LLC MetroPlains Development, LLC develops and acquires multi-family housing in small and mid size communities in the Midwest. We use various government programs and agencies that make the housing affordable. These include: Rural Housing Service, Department of Housing and Urban Development, Federal Home Loan Bank, state and local housing finance agencies, local tax increment fmancing, historic tax credits and housing tax credits. Approximately half of the properties that MetroPlains or its principals have developed over the past seventeen years involve substantially rehabilitating historic buildings into housing. These buildings had formerly been hotels, schools, hospitals, post offices, fire or police stations, apartments and office buildings. The remaining half of MetroPlains developments is split between new construction and acquisition with rehabilitation. MetroPlains has also developed a special expertise in providing congregate housing for the elderly. MetroPlains Properties, Inc., an affiliate, serves as the managing general partner or owner of the real estate after development. This long-term commitment to the community and investor assures participants that the asset will be maintained and operated for their benefit. MetroPlains Properties, Inc. also invests in commercial properties and market rate multi-family properties often working with communities to fulfill local needs and reposition these properties. GarstenlPerennial Management Corporation, an affiliate, provides long term management services to most of our developments. Site managers hired from the community are trained and supported to provide quality management services over a wide geographic area. Garsten manages over 3,000 multi-family housing units and over 250,000 feet of commercial space. BIOGRAPHICAL SKETCHES Gary L. Stenson, graduated from the University of Minnesota Law School in 1969 and then served for three years as Legislative Assistant to then Senator Walter F. Mondale, with responsibilities in the areas of housing and community development. From 1973 until 1978, Mr. Stenson was engaged in the private practice of law in Minneapolis and St. Paul, and is currently a member of the Bar of the State of Minnesota. Since 1978, Mr. Stenson has been involved in the development, acquisition and management ofreal estate on a full-time basis. Lawrence W. Olson, graduated from the University of Minnesota in 1974 with a Bachelor of Science degree in Economics and Accounting. Following graduation, Mr. Olson, a CPA, practiced public accounting with Deloitte & Touche. In 1978, Mr. Olson became an officer of Tooltech, Inc., initially as Vice President of Finance and later as Vice President of Operations. In the early 1980's Mr. Olson performed investment, fmancing, syndication and brokerage services until 1986, when the development and investment operations were merged with Gary L. Stenson to form MetroPlains Development, Inc. LaVerne Hanson, Jr., graduated from the University of Illinois in 1975 with a Masters degree in Architecture. Following graduation, Mr. Hanson was an architect with the firm of Lankton, Ziegele, Terry and Associates in Peoria, Illinois. From 1978 to 1989, Mr. Hanson was Vice President in the architectural firm of Arvid Elness Architects, Inc. in Minneapolis. Projects involved new construction and substantial rehabilitation including multi-family housing, senior housing, education, office, recreation, hotels and government building types. Since 1978 all projects developed by MetroPlains or its principals were accomplished under the design and direction of Mr. Hanson. In 1989, Mr. Hanson became a principal in MetroPlains Development, Inc. Peggy L. Bonicatto has been with MetroPlains since 1991. Her responsibilities include investment analysis, tax work and financing of existing properties. Prior to joining MetroPlains, Ms. Bonicatto worked for a mortgage broker and was the controller for a real estate developer. Ms. Bonicatto has over 20 years of rea! estate experience. Judy McGuigan graduated from the College of St. Catherine with a BA degree Chemistry. She worked for Parke-Davis and the University of Minnesota before retiring to raise her family. Prior to joining MetroPlains in 1992, she managed an art gallery in St. Paul, Minnesota. Ms. McGuigan currently job shares her position which includes providing administrative and project development support. Geri A. Conway, joined MetroPlains Development in 1992 in the first job sharing position. She is responsible for a variety of front desk administrative duties. In addition, Ms. Conway has also been employed with a social service agency for the past twenty years. Jean Richard Eide, graduated from Mankato State University in 1992 with a Bachelor of Science degree and in 1994 with a Master of Arts in Urban and Regional Studies. Prior to joining MetroPlains, Ms. Eide worked for the Housing and Redevelopment Authority of Richfield, Minnesota. Heading up development coordination for MetroPlains, her responsibilities include development oVersight, working with govemment agencies, lenders and investors to bring developments from concept to completion. Lori J. Scott, graduated from the College of St. Catherine in 1992 with a Bachelor of Arts degree in Business Administration with emphasis in Marketing and Management. Prior to joining MetroPlains, Ms. Scott worked for Control Data Corporation, Old Dutch Foods and Lunds. Her background and experiences are in the computer, administrative and management fields. Her responsibilities at MetroPlains include human resources, software and hardware computer support, administrative and office management. Randall J. Schold, graduated from the University of Oregon with a Bachelor of Architecture degree in 1977. Since graduation, Mr. Schold has pursued a career combining architecture and development with a specific emphasis on constructing multi-family housing within existing neighborhoods. In 1982, Mr. Schold became a partner in the designlbuild firm of McCain/Schold in St. Paul and since 1986 was also a principal in the architectural firm of RSA Associates in Minneapolis. His responsibilities at MetroPlains include site analysis, architectural and construction coordination. Michelle Kaiser, graduated from Cornell College in 1994 with a Bachelor of Arts degree in Sociology with concentrations in Marketing and Business. Prior to joining MetroPlains, Ms. Kaiser worked as a Community Director for the March of Dimes Birth Defects Foundation in Cedar Rapids, Iowa. Her responsibilities at MetroPlains include historic tax credit submissions, maintaining compliance with the National Park Service and construction administration. Kristin Gavin, completed general business and travel industry courses at The McConnell School. Prior to Jommg MetroPlains, Ms. Gavin worked as an Airport Sales Administrative Assistant for Smarte Carte, Inc. Ms Gavin currently job shares her position which includes providing administrative and project development support. Jeanne A. Kelsey, graduated from Mankato State University in 1997 with a Bachelor of Science degree in Urban Studies with an emphasis in Housing and Economic Development. Prior to joining MetroPlains, Ms. Kelsey worked on potential housing development and community projects for Farnham Novak & Associates. She also holds a license as a Registered Real Estate Property Appraiser. Her responsibilities at MetroPlains include development work, pre-application submissions and construction to rent-up transition management. John J. Errigo graduated from Washington University in St. Louis in 1990 with a Bachelor of Arts degree in Economics. Prior to joining MetroPlains, he was a Senior Market Analyst at Maxfield Research. John is experienced in conducting project-specific market feasibility studies as well as comprehensive community-wide housing studies. He is also a licensed Realtor in the State of Minnesota. His responsibilities at MetroPlains include coordinating development work, market research, and loan applications. Mary McCauley is currently a student at Inver Hills Community College working towards a degree in Business Management and Marketing. Prior to joining MetroPlains she was involved in a private business venture. Ms. McCauley also has a background in mortgage banking from Dominion Bankshares. Her responsibilities at MetroPlains include marketing and providing administrative and project development support. Rob McCready, graduated from the University of Wisconsin with a Masters Degree in Business Administration. In 1990, Mr. McCready joined The WalshDunsmore Company in Minneapolis, representing commercial clients purchasing and leasing real estate. In 1992, Mr. McCready was President of a commercial real estate consulting firm in Milwaukee, Wisconsin, which was acquired by the Trammell Crow Company in 1997. His responsibilities at MetroPlains are coordinating development teams and management of company operations. 2 Theresa M. Essling, is currently working on an Animal Science Degree at the University of Minnesota. Prior to joining MetroPlains Ms. Essling was employed with the law firm of Stein, Moore and Fay as a legal assistant specializing in foreclosures, bankruptcy fraud and creditor's rights and remedies. In addition, she also worked for McCullough Companies managing commercial real estate and company operations. Her responsibilities at MetroPlains as a Property Analyst include monitoring and analysis of financial packages for existing properties. Tami L. Gores, CPA, graduated with a Bachelor of Science degree from Mankato State University. After graduation she continued her education in the field of accounting at Metropolitan State University. Prior to joining MetroPlains, Ms. Gores practiced public accounting and has worked for a real estatelproperty management company in Northern Michigan. Her responsibilities include presenting and interpreting financial information to owners, investors and governmental agencies. Jennifer Reusse, Property Analyst, graduated from Boston College in 1994 with a Bachelor of Arts degree in Economics and English, and graduated from American University, Washington College of Law in 1997. During law school, Ms. Reusse was a law clerk for Lindner & Associates, a small A V-rated business and real estate law firm in Washington, D.C., and became an associate attorney following graduation. Ms. Reusse is currently a member of the Bars of the States of Minnesota and Maryland, the Commonwealth of Virginia, and the District of Columbia. Marcia Wessel, Project Manager, graduated from the University of Minnesota in 1997. Ms. Wessel received a Bachelor of Science degree in Housing with a concentration in Technology. Prior to working for MetroPlains, she worked for the City of Brooklyn Park as a Housing Inspections Program Coordinator. Larissa Rippley Tadavarthy, Development Coordinator, graduated from St. Olaf College in 1990 with a Bachelor of Arts degree and completed her Masters of Public Administration at the University of Wisconsin - Madison in 1992 with an emphasis on Housing and Urban Government. Prior to joining MetroPlains, Ms. Tadavarthy worked for Mendota Insurance Company as a market analyst, the Greater Minnesota Housing Fund and Glaser Financial Group as an underwriter. Her responsibilities at MetroPlains include development work, loan applications, and construction to rent-up transition management. Derek Thompson, Assistant Controller, graduated from Concordia College in Moorhead, Minnesota with a Bachelor of Arts degree in Accounting in 1990 and passed the CPA exam in 1994. He joined MetroPlains' sister company, GarstenlPerennial Management Corporation in 1992 as a property management accountant. Stenson, Olson and Hanson have been speakers at national and regional real estate seminars sponsored by organizations such as National Real Estate Development Center, National Trust for Historic Preservation, National Main Street Program, Housing Assistance Council, Council for Affordable and Rural Housing, Federal Home Loan Bank, National Park Service, Public Housing Authorities Directors Association, the National Endowment for the Arts and various state housing and historic preservation conferences. February 17, 2000 3 '~~"~'V$io\J>'\j>i; ~;""0.,:r.~j",;iif~ 'i'''''''''' , HOUSING the HEARTLAND T. PAt'L. MI:\N_-ln lY71-i tht: (jreat North- ern Hotel in Devih Lake. :-J_D.. loob.:d as though it wlluld suffer the fate of the man:- grand historic hotels that dot the landsc<lpe of rural midwest- ern towns. The vintage 1911 building that once housed weary railway travel- ers had remained vacant for a few years after the owner failed to pay property taxes. The town's residents feared the hate] might end up as had so manv oth- er historic buildings-as a parking ]ot ~Ieanwhi]e. one of the town's former n:sidcnls. Gary Stenson. had tired of practicing real tstate law in Minn<:apolis and set his sights on buying sume prop- erty to renovate into affordable housing He heard that Devils Lake officials were searching for someone to renovate the Great Northern into badly needed se- nior-citizen housing for their city"s aging population. By helping sa\'e the Great Northern, Stenson could offer seniorcit- izt:ns affordable housing in a building that had played a hig part in their own. and his. history. "I rememher teen can- teens in the b<lsement of the hotel. go- ing to the dentist \vho had <In office then:. and my parents taking [us) to eat in a cafc there,"'he recalls Stenson had spent three und a half y"ears in Washington. D.C, as a housing and community-dev<.'lopment advisor in the early 1970s \0 then Senator Waller Monda]e, so he understood how to ob- tain federal money for projects that in- vo]ve loans and rent subsidies. After buying the Great Northern for $30,000 from the Ramsey County government. he secured a 50'year Farmer\ Home Administration (FmHAl Section 515 mortgage loan for $1.:::' million to restore the hOleLcrealing 38 units forscnior-cit- izcn housing and 5,O()() square feet of commercial spact:. Tht: FmHA charges one percent a year on such loans Stenson raised equity through the his. toric rehab tax credits, a too] that Con- gress weakened dramatically with the 1986 Tax Reform Ac!. Stenson also made certain that tenants secured Sec- tion 8 rental assistance through the US Department ofHousingund Urban De- velopment (HLID) By Frank Jossi "We needed a seniur-citizens' center ilnd We needed a health-care f<lciEty:' s<lYs Bill Bergstrom. a Devils Lake car dealer who served on a comminee in the early 19805 that studied the town's cen- tral business district. "The county was about to have the hotel razed. but we recognized its architt::clUral character and asked that it be preserved. When Gary came in we facilitated what he wanted to do. In a sense he helped us and we helped him." The Great l\orthern proved to be Just the beginning for Stenson. Over the course of the past ]4 years. he has cut deals in 19 towns sprinkled throughout North and South Dakota. !\linne~ota. Kansas, and \Visconsin to n:nO\ate h<l- tels, post offices. schools. courthouses. it firehouse, an opera house. and a bank for use as senior-citizen and 10\\'-inCllme housing. All told. the 49-year-0]0 oe\'d. oper has completed 30 projects-the majority of them involving the renova- tion of hi~tmic structures--ano has an- other 21 projt:ClS in the works. After raising money and managing several projects on his own. Stenson formed MetruPLJins Dt:velopment in 1%6 and no\\' \\orJ..s \lutl)f an office ll)- cated. appropriately enough, in the for- mer International Har\"\:sterfactory":n SI. Paul. Stenson <lnJ MdroPlains trt:a- surer Lawrence Olson adrJ to the invest- menl mix a wide range of financial in- gredients, among them. property-tax freezes. the historic rehah tax crntilS. tax-increment financing. the low-in- come-housing: l<lx cr.:rJits. sak~-tax ex- -to:;;:: -r' Among the land- marks rehabbed by Stenson are, clockwise from top right, the Great Northern Ho- tel and a fIrehouse In Devils Lake, N.D.; the James- town, N.D., Post OffIce; and the Gillmore Hotel In Deadwood, S.D. emptions. and tax abatements, There's probably not a loan program or a tax credit that has escaped their scrulin)' "He's been incredibly creative in get- ting financing for his programs," says Anna ~Ioser. the execUlive director of Ihe Council for Rural Housing and De- velopment, a Washington, D.C..based trade association for those involved in rural housing. "There are not many pe0- ple as dedicated to doing Ihis as Gary is. His work is one of the most exciting things I have seen." After listening to Stenson explain just a couple of his deals, a description of particle physir.:s or a basic leveraged buy- out looks easily comprehensible. This kind of work is not for amateurs. "It's very complicated." concedes Stenson. "The way we have provided affordable housing in this country has been very complex, partly because we attempt to accomplish it through tax policy, If you're going to be in this business you had better be in it a long time and really get to know it." A new investment approach Metro- Plains plans to use involves raising money for affordable-bousing projects from util- ities, insurance companies. and banks in search of tax credits. Min- nesota Power and Light is working with MetroPlains on the restoration of the Buckman Hotel in Liltle Falls. Minn.. and a consortium of IOcorporations-among them, Citibank-are reviewing projects from developers in South Dakota. ac- cording to Stenson. However noble or altruistic his efforts may be. Stenson remains a businessman. His firm does $4 million in development a year and collects $1 million in rents and management fees from 2.0IXl units. half of them located in buildings listed in the National Register. Projects deliver a 16- to-17 percent annual rale of relurn to in- vestors. and MetroPlains picks up a 10- to-12 percent profit on each project. LaVerne Hanson. MetroPlains' staff <Hchitect and partner, describes the process of locating and buying buildings. The firm hears about empty historic buildings from a variety of sources, rang- ing from state and local hisloric preser- vation commissions to town residents. Once MetroPlains decides whether a project is viable, the staff nominates the building for listing in the National Reg- ister and offers to buy it for no more than one dollar. With Ihe listing. says Hanson, comes the opportunity for MetroPlains investors to use potential tax credits on the project. After arriving at a concept plan, Hanson designs the apartments without disrupting the struc- ture's major defining historical charac- teristics. Cheery colors cover the walls of many of the senior-cilizen housing complexes, often chosen to match a buildings' historical epoch. All millwork is removed and cleaned. and decorative lighting and other architectural elements in hallways and entrances replaced when necessary with re-creations ~one of this comes cheaply. "W", figure it costs us fort~.-two dollar, a square foot on the average:' sa~'s Han- son. ""But you are saving solid brick and stone buildings. I don't think you could re-create the shells of these building~ un- less you had an unlimited budget." MelroPlains developments cala to the elderly not only because many of these people require suhsidized housing to survive. but also because of the limi. tations historic buildings often impose on reuse. The lifestyle and small famil~ size of senior citizens fit well into the renovation, he says, since many can he redesigned only for apartments pnwid- ing one or two bedrooms. Although Stenson's finn has expand- ed rapidly during the pa~t fev.' yean. the grt;'::llesl numhn(lfrr(liectshe h;l~(,)m. pkkd are in "The people in these communities really develop a relationship with these buildings. " Devils Lake, a town of approximately 7,800 people lo- cated 90 miles west of the Minnesota bor- der and an hour's drive south from Cana- da. Stenson helped renovate an opera house. a school. and IWO apartment build- ings. His work prompted the town to cre- ate a historic district and a historicpreser- vation commission and to offer brochures for self-guided walking tours. "Some of these buildings would have been left to the wrecking ball and two or three would have been parking lots," says Joan Galleger, a National Trust ad- visor and the vice president of Garsten Management, a subsidiary of Metro- Plains that manages housing developed by MetroPlains and by othercomparues. "People around here are very aware of Gary and very supportive of what he's done. There's a 101 of commitment to preservation that we didn't have before." The work of MetroPlains helps Dev. ils Lake in two ways, "It makes it possible for people to have affordable housing- particularly the elderly-who could not find such housing here." says Devils Lake Mayor Fred Bolt. "They don't want a house and can't afford one-now they have an opportunity to live in something smaller and less costly." The restorations have also bolstered local pride, "I think it's been a great thing for the town," says Kristin Kenner. a dentist who serves on the city's historic preservation commis- sion. "A lot of those buildings would have been left abandoned. If anything had hee.n donI;' to them. [the workJ at best \~')ltlJ h;\\~' 1'~'L'11 J'1I1c' piCTo.:mc'<ll, ~lo.:ln'- Plain~ h,l~ JOllo.: ,J pC\ll j,lh nf rl;'~loring them. Most of the people living in the buildings are ddightl;'d with them-and they're proud of where they livl;'," The cities and towns in which Metro. Plains works rarel~' exceed populations of 20.000, although Ihe compan~' once renovated a former hank in Omaha. The towns have names such as Sturgis, Winfield. Marysville. Lead, Spearfish. and Yankton-all places that appear in small type in atlases. Stenson prefers to work in small towns. "Throughout the years WI;' 've had a tough time finding buildings reasonably priced in the Twin Cities, and there are more people there bidding them up." says Stenson. "In smaller communities we are the only ones who have a track record out there, and we're often the on- ly option they have." Although many Americans retain an idyllic vision of small-town midwestern life, the reality is much different. Young people have drifted away for lack of work to larger cities. and Ihose who remain have trouble making end~ meet. e~pe. cially when it COllle~ tn finJing affordable housing Nearly one third of the \.4 million renters nationally who are classified as "poor" and who live outside metropoli- tan areas pay an astonishing 70 percent or more of their income fortheir housing. according to a 1989 study published by HUD and the U.s. Bureau of thl;' Cen- sus. (The figures, based on 1985 statistics, define "poor" as those earning less than $5.000 in annual income.) The figures are no less grim for rural homeowners. 35 percent of whom pay at least 50 percent or more of their income for housing. The government defines affordable housing as that whichoosts one-third or less of a person's income, yet the study found 65 percent---or 1.2 million people---of those classified as "poor homeowners" pay more than that for housing in rural America. The need runs deep for affordable housing in rural America, and Stenson, unfortunately, has few peers. He men- tions only two others he knows of who deal with creating affordable rural hous- ing. and the Council for Rural Housing and Development's Moser says she knows of virtually no one who has as great a track record nationally of combining preservation and affordable housing. Negoliating the bureaucratic maze seems 10 have left Stenson remarkably optimistic, "The people in these commu- nities really develop a relationship with these buildings," he says. "They're proud of them and they feel a sense of commu- nity. When people see them rehabbed they feel rejuvenated themselves." Frallk JO.l'si i.l" a 51. PIlIlI-based free-Iallce wrJler. Reprinted with pennisslon from The National Trust for Historic Preservation, Washington, DC and Galloway Photography, Oakdale, MN Thursday The Winfield Daily Courier Winfield, Kansas March 31,1994 O Sunny FrldaywlIh a high around 70. 3 sections - 17 pages City shows off new look for old Rehwinkel Hall By JUDY WELCH It's only fitting that Ibe historical Rehwinkel Hall at Baden Square be transformed into affordable hous- ing for senior citizens. said Deena Garvin, a district aide for Rep. Dan Glickman. "The senior citizens in all of our communities are the backbone of our society," she said during grand opening ceremonies for Rehwinkel Senior Housing Wednesday after- noon. "Their wisdom and counsel help us to avoid Ibe mistakes of Ibe past so that we may forge ahead into the future." More than 100 people turned out for the dedication and ribbon- cutting ceremony. Approximately gOO later toured the four-story, 36 apartment building, said manager Rutharme Wask.o. AU of the apartments are rented and there is a waiting list, she said. There will continue to be a great demand for affordable housing for seniors, Garvin said. "People are living longer and the number of senior citizens on fixed incomes will continue to increase .. she said. "Community leaders fro~ around the country should take a page out of Winfield's book. "Vou have taken an innovative idea and implemented it where it will provide the most benefit for the Winfield community," Garvin said. The partnership between private industry and government allowed "this wonderful housing addition to the Winfield community;' Garvin said. "This historic structure has stood the test of time and will pro- vide many more years of service to Ibe people of Winfield," GRAND OPENING - William Kirk, state director of the Far- mers Home Administration, spoke to about' 25 peopie during tile grand opening of Rehwinkel Senior Housing Wednesday afternoon. Mayor Phil Jarvis, left, Ramon Powers, executive director of the Kansas State Historical Society, and Dennis Shockley, under secretary of Housing for the Kansas Depart- ment of Commerce, also addressed the crowd. (Judy Welch! Courier) Rehwinkel HaIl served as a men's donnitory for SL John's Col. lege. The city purchased Ibe cam- pus after the school was closed in 1985. A Minnesota developer put the apanment project together. The building is the second oldest surviving building on the campus and Listed in the National Register of Historic Places. "Preservation is not an easy task." said Ramon Powers, execu- tive director of the Kansas Stale Hislorical Society. "Many hisloric buildings continue to carry out the functions for which theY-'were intended. "However, when time or circum. Slances remove a building's func- tion, we are faced with a dilemma," Powers said. "If the structure occupied an important role in the history. culture or self-image of the community, hard choices must be made concerning its survival. Sad- ly, sometimes the full wonh of a historic building is realized only after its destruction." Rehwinkel Senior Housing is an excellent example of "adaptive reuse:' Powers said. "A choice has been made to preserve an historic building by modifying it to suit Ibe needs of the present" William Kirk, state director of the Farmers Home Administration, said the senior housing develop- ment is a wonderful ex.ample of the team concept - a combination of federal funds, state and city govem- men!... commercial banks. commun. ities and private enterprise. "MctroPlains (Development Inc. of S~. Paul, Minn.) should be com- mended for putting all this togelber," he said. Rehwinkel represents the third rehabilitation of a historic property that Fanners Home has financed in Kansas. The other two are located in Arkansas City and Otlllwa. All three are owned and operated by MetroPlains, according to Kirk.. "We believe this is a very good use of our loan money. It's kindofa win-win siwation," he said. "It pre- serves the historic building, it pro- vides the housing that is desperately needed, and helps everybody. "We think that adequate housing is the cornerstone of economic development and rural economic development It doesn't always have to be new to serve that pur- pose," Kirk said. "Many of Ibe senior citizens that will be living in this facility will vacate housing that will serve the working communities and working families well:' Farmers Home loaned $1.1 mil- lion for about 50 years for the Rehwinkcl project and is providing 36 units of rental assistance. "I don't know about you, but I cannqlthink ofa better invesunent for the. American taxpayer than to assist our seniors in their golden years," Kirk said. Dennis Shockley, undersecretary of housing for the Kansas Depart- ment of Commerce. said the depart- ment's housing tax credit program is one of the fmancing components of the Rehwinkel project. "This is... the first time that Met- roPlains had a construction loan where four banks in the community got togelber and pitched in," said Larry Olsen of MetroPlains. Mayor Phil Jarvis said he was not on the city commission when the decision was made to purchase the campus. "But it has really turned itself into onc of the best assets that Win- field has to orrer," he said. Reprinted from the WlDfidd Dally Courier March 31, 1994 BRINGING BACK THE BUCKMAN HOTEL A RESTORED LANDMARK WILL SERVE LITTLE FALLS' FUTURE AND ITS SENIOR CITIZEN COMMUNITY .. - . - . - ~ ~ r~ G.,J\ 1_ . NL~~.~~ Ri.-'-,---\" . ~i~.~ :.'."', J ~.~ .." .~~.~ "..,/ ~-: , , ., ==-T~ )I' .: 'I .-....~.:~.j!l'----..." . ,.--.' '-. -~.~..-"'"~.. .. ... .. - . : . ::.-. -:-~- i ~ ~ -..,-" ....,I~ = .&~I~. 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"'"""- "\\'hy, this is the Buckman Hotel Building; I thought everyone knew that" \\'as the enthusiastic reSpOn51? of J bl~. burly bn.:klayer repairing masonry arches on the hlstoric hotel \\'hen J.~h~d the :1<.1me or this d0\\'ntown Little Falls structure. ~letro Plai.ns De\'dorment,.l \1:.nr,~~l..,t::-bJ:,cj rlrrn thJt has successfulh" con\"(:,rted sc\"eral (1ut-state (Qmmerclal buildl'''\:;s mto ekit'rly hLlll~~n~ in the mid:\\'est, i~ nl1\\" in thl~ C:'::lI:l/l,j t": ,:"'~.\':' II), (~<:L'!l111 PRESERVATION MATTERS Buckman Hotel continued from page 1 finishing stages of rehabilitating the Buckman and the nearby Little Falls Fire Station, creating 27 apartments in both buildings. The Buckman's original first floor dining room will regain its former use, revised by requirements for this type of facility. A new-construction ground floor link will connect the rear sections of both structures. Michael Bums Architecture of Moorhead is the project architect. This project will provide a double benefit to this l\-lorrison County farming community: two under- utilized mainstreet buildings that are significant elements in the town's history will help local revitalization. And this type of building re-use for retirement age citizens meets a growing market. Kristofer Layon, Preservation Development Coordinator for Metro Plains, listed the financing Buckman Hotel, circa 1904 Plr,'tl'lr(lm Morns(l1I Coullty Hlsl('r.~:i S.I{1tty Instruments that were bundled together into a total fund: Farmers Home Administration (FmHA) 515 mortgage, FmHA rental assistance program, a Little Falls-based Affordable Housing Grant, a Small Cities Grant (administered by the State of Minnesota Department of Trade and Economic Dewlopment), and historic tax credits. The Buckman Hotel was built in 1892, its name coming from Clarence Buckman, noted legislator from Little Falls who served the Sixth Congressional District in the United States Congress for many Years, succeeded by Charles Lindbergh Sr. The hotel was designed by Tourtillotte and Triplett, a Little Falls architectural firm. The nearby Fire Station was designed by Max Buetow and Phillip Bettenberg, Saint Paul architects who were to develop productive and long-lasting practices. But that ardent bricklayer isn't the only person in Little Falls promoting the city's architectural assets. City officials some time ago looked for a means to revitalize Little Falls' downtown commercial core, and among their development objectives was the formation of a downtown commercial historic district. In July of 1994 the National Park Service conferred designation on the 37 building area along First Street, noting its high concentration of contributing brick structures, constructed of red and yellow local brick and trimmed with granite from nearby Saint Cloud quarries. The significance of these buildings is their role in forming the growth of Little Falls' rising economy in this central Minnesota region. Larissa Rippley, Development Coordinator for Metro Plains, credited Rich Carlson, City Manager, and Susan Haugen, Economic Development Specialist, for their insight in seeing historic designation as a framework for augmenting economic revitalization. "They were very supportive all the way," Rippley commented, "They saw the Buckman's location in the heart of the district at the comer of the city's two main streets as instrumental in establishing a base for furtherrevitalization." The city is now encouraging storefront restoration in the historic district. Back to the bricklayer - there is a story often told among bricklayers of a person visiting a construction site, walking up to a mason and asking what he is doing. "Laying bricks," was the reply. Asking a second bricklayer, the answer was" helping construct a building." When the third bricklayer was asked the question, he said, "[ am building peoples' dreams," Robert Roscoe Reprinted with pennission of the Preservation Alliance of Minnesota. Minneapolis, Minnesota. March 1995. Brainerd Daily Dispatch (Minn.), Wednesday, AprilS, 1995 ii3 E xtr8 Buckman renovation finished Little Falls landmark is for seniors By BRAD McDERMOTI Staff Writer LITTLE FALLS - The Buck- man Building in downtown Little Falls has undergone a face lift and it now is smiling on some of the city's senior citizens. Actually, it may be more accu- rare to say the 94-year-old build- ing has had full-body plastic surgery. In recent years, the Buckman has more resembled a belfry than the horel it was dur- ing the first half of the decade. When renovation of the building began in February, 1994, the Buckman was a dilapidared, bat- infesred restament to the demise of Little Falls' commercial dis- trict. Similarly, its $1.96 million restoration signals a renaissance, a renewed commitment on behalf of the city to preserve its historic downtown area. A cooperative effort between the city and MetroPlains Devel- opment of St. Paul has trans- formed the Buckman and the adjoining fonner fire hall into a 27 -unit, state-of-the-art apart- ment building with genuine turn-of-the-century charm for senior citizens. Just beyond the entrance lob- by, which is complete with a restored, pressed metal ceiling, is a grand staircase that ascends to two floors of apartments. The parlor, also off the lobby on the Buckman's first floor, fea- tures three stained-glass win- dows (one of which is an original fOWld during construction) a fire- place and furniture ideal for reading or commiserating. The dining room, where resi- dents are served hinch seven days a week, occupies the same first-floor location it did during the heyday of the Buckman Horel. Modern-day amenities include an elevator, beauty. shop, whirlpool and coin-operated laundry facilities. Adding to the Buckman's character is the fact that no two units are alike. All apartments have a living room, kitchen, The Buckman Building in downtown Little Falls Is the new home for some of the city's senior citizens. Built in 1892, the Buckman burned in 1901 and was rebuilt that same year. (Dispatch Photo) Much of the credit for this suc- cess belongs to MetroPlains, which Little Falls commissioned for the project after city officials conducted on-site inspections of its previous renovations. The city sold the Buckman and the former fire hall to Metro Plains, which hired a Fargo, N.D., contractor for the construc- tion work. Larissa Rippley, development coordinator for MetroPlains, said the company has a 50-year farmer's home mortgage on the Buckman and will operate the complex for the next half century through its subsidiary, Garsten Management. Although there is still some outside painting and landscaping that needs to be fin- ished before the project can be called complere, Rippley said she can't believe how well everything has come together to this point. "I think it looks amazing," she said. "In fact, it looks better than I ever thought it would, and I watched all the way through the constructions. It's just great for this community." Residenb of l!.e Buckman must be 62 or older, physically challenged or dis- abled. Their gross income must not exceed $14,350 for one person or $16,400 ro, two f"'OPle. Rent;s based on 30 percent of the resident's adjusted monthlr, income. Rental assistance is availab e for some unites. Twenty-two of the 27 oporlmenb have been ~Ik.d. F", information, conloct ty\arilyn Kapsner at (612)632-3387", 1-800-776-5561. 'I love it; it's 100 percent better than where I used to be. You don't hear any barking dogs or any kids hollering. I don't even notice the traffic.' - David Colombe,Buckman complex resident bathroom and bedroom, but each one is set up differently. From his apartment on the third floor, David Colombe has a breath-taking view of the Missis- sippi River as it meanders through town. Although it has only been a month since he moved here, he said unequivocal- ly that it's the best apartment he has ever lived in. "I love it; it's 100 percent bet- ter than where I used to be," he said, referring to his previous apartment on Fifth Ave. SE. "You don't hear any barking dogs or any kids hollering. I don't even notice the traffic." Mary Zok moved into her apartment across the hall from Colombe on Feb. 20. It didn't take her long to adjust to her new sun-oWldings; she said she already feels at home. "I think they've done a really wonderful job with this building instead of tearing it down," she said. "It may not look that great on the outside, but it sure is nice on the inside." Although construction began just 14 months ago, the wheels of renovation have been turning at city hall for nearly four years. In the interim, the city searched for ways to subsi- dize the project and for its efforts received a Small Cities Grant from the Minnesota Department of Trade and Economic Develop- ment and a grant from the state Rural Economic and Community Development Agency. Community Federal Savings and Loan, Federal Home Loan Bank and St. Gabriel's Hospital also made significant contribu- tions. Susan Haugen, manager of city offices, said the years of hard work is paying dividends, because the Buckman restora- tion allows the city to satisfY two far-reaching objectives with one project. "We needed senior citizen housing and we were looking for a way to use the vacant building in the hope of revitalizing a downtoWn, -historic resource," she ~aid. "Things couldn't have worked out better. Taking a vacant old building and turning in it into a showpiece, it was real- ly well done. It's been a success in all areas." Reprinted with permission of the Brainerd Daily Dispatch, Brainerd, Minnesota. May 8, 1995. - I~ARL Y METRO It= EomoN - · 'Supertu d' IS rUnning I n In state OW/1S 8 Henn . ease lajJ~~wt'Yd ing to l'1g/18 p Starltibune ISl.INtW'JJanuarv 17/1993 Gary Stenson and his partners are wheeling and dealing all over my old North Dakota stomping 9,ounds, not to mention neighbor- Ing South Dakota and Minnesota, with occasional forays into Wiscon. sin, Kansas and Nebraska. In their wake, they're leaving a trail of affordable housing that's almost as sorely needed in the small towns of America as it is in the big cities. Even more intriguing. much of that housing is being provided in histor- ic buildings that Stenson and his associates, Larry Olson and La- Verne Hanson Jr., have meticulous- ly and lovingly restored. There's the 70.year-old Ryan Hotel in Grand Forks, N.D., which I re- member as a flourishing center of downtown activity back in my days as a cub reponer on that corner of the nonhern glacier. Alas, the Ryan did not age any better than I have and wound up being closed in the 1970s. Now, however, it's a sub. stantially rehabbed site for 40 apanments for senior citizens. Then there's a 121-year-old jewel called the Union School in Black River Falls, Wis., which has been transformed into 21 apanments for the elderly. And the 80-year-old Great Nonhern Hotel in downtown Devils Lake, N.D., built during the railroading heyday to accommodate arrivals at the depot across the street. Sten- son, a Devils Lake native, saved the building from the demolition crews and transformed it into 38 senior. citizen apanments. Indeed, in smaller cities from Ar- kansas City. Kan.. to Little Falls, Minn., the panners have been res- cuing aging hotels. schools. hospi- tals and commercial buildings and turning them into low-cost housing wonh upwards of $40 million. Stenson, Olson and Hanson are principals in MetroPlains Develop- ment Inc., a 5t. Paul-based proper- ty developer and manager that is earning a tidy return by exploiting the federal housing-subsidy pro-- grams that survived the Reagan- NEWSPAPER OF THE TWIN CITIES Dick Youngblood Bush eHon to rip gaping holes in the social safety net. Stenson, 48, staned the company in 1978 and is its president. Olson, 41 , is a seasoned corporate finan- cial executive who merged his housing-development business with MetroPlains in 1987. Hanson, 40, an architect who has designed virtually all of the company's pro- jects, became a partner in 1989. Residents of their projects pay about 30 percent of their incomes for rents, with most paying between $300 and $400 a month. The company, which does about $4 million worth of development a year, acts as general partner for the limited partners who invest In Me- troPlains projects. It collects about $1 million a year in rents and man. agement fees and controls 1,000 units of housing. two-thirds of them in buildings included on the Nation- al Register of Historic Places. The company also manages another 1,000 rental units for other owners. Stenson, a lawyer who has been converted to more productive exer- tions, started the business almost by accident 14 years ago. That's when he learned that folks in his hometown were talking about tear- ing down the defunct Great North- ern Hotel and turning the site into a parking lot. Stenson knew precisely where to look for the resources to rescue the hote1. After all. he'd spent three years in the early 1970s as a legiS- lative aide to Sen. Walter Mondale, specializing In government-assisted housing and community development. The upshot: He secured a low-in- terest loan through the Farmers Home Administration (FmHA), ob- tained so-called Section 8 rent sub- sidies from the Depanment of Housing and Urban Development (HUD) and restored the building to all its high-ceilinged, wood-col- umned majesty. It was the first of what was to become a series of projects that have saved a half-dozen of the city's most venerable hunks of real estate. These, coupled with pro- jects involving nonhistoric build- ings, have added more than 250 units of rental housing in Devils Lake, which has a population of about 7,800. It is a significant boon for the city, said Devils Lake Mayor Fred Batt: With more and more people leaving farms and smaller towns for region- al trade centers like his. "there's a real shonage of rental housing in general, and affordable housing in particular." That's a problem across rural America, according to a study pub- lished in 1989 by HUD and the Bureau of the Census. The mid- 1980s survey turned up some trou- bling statistics: . 22 percent, or more than 400.000. of the 1.8 million poor homeowners In nonmetro areas paid at least 70 percent of their incomes for housing, and another 13 percent, or 250,000, paid at least 50 percent. In fact. while the government de- fines "affordable housing" as cost- ing less than 30 percent of a par- son's income, the study found that 65 percent, or 1.2 million, of the poor homeowners in rural America paid more than that for housing. . Nearly one-third, or 445,000, of the 1.4 million poor renters In non- metro areas paid at least 70 per- cent of their Incomes for housing, while another 19 percent. or 265,000, paid at least half of their Incomes. Overall, a stunning 79 Reprinted with permission from the Star-Tribune, Minneapolis - SI. Paul, Minnesota. Historic buildings finding new life as housing sites ~, r -.,,' -2. S1 Gary Stenson percent, or 1.1 million, of poor non- metro renters paid more than an "affordable" 30 percent of their in- comes for housing. Despite the obvious need, HUD's Section 8 rent~subsidy program perished in the early days of Rea~ ganomics. But Stenson was undeterred. He found a different source of fed- eral funds: a mortgage and rent~ subsidy program that FmHA funds to promote affordable housing in communities with fewer than 20,000 people. He also began tap- ping the generous tax credits avail. able through the National Park Ser- vice for substantial rehabilitation of historic buildings. It has not been easy, however. For one thing, individual state FmHA directors virtually have total control over disbursement of the subsidies, and many of them prefer to see their support go to new construc- tion rather than restorations, Sten- son said. Iowa, for example, has resisted MetroPlains proposals for years, and so did Minnesota until recently. Now, however. the company has received approval for historic tax credits and a low-interest FmHA mongage to transform the century- old Buckman Hotel in Little Faits Into a 27-unit nursing facility, with construction to start in April. "It would be a lot easier to go along with some of those state FmHA directors and build new housing," Olson said. "Rehabbing a historic building is a lot more complicated, because you have to deal with so many agencies - FmHA, historical societies, the Park Service, state housing finance agencies. "But if you're willing to invest the time and effort, it's a whole lot more rewarding, both personally and financially." ~