Wednesday, April 25, 2001
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Wednesday, April 25, 2001 |
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Developer seeks 'authority' from council A developer proposing upscale apartments for senior citizens said the project can't happen in Peachtree City without the help of the City Council. Norm Hansen of Prime Communities appeared before council last week asking the city to appoint a Seniors Facility Authority. By doing so, that would allow Prime Communities to seek lower-interest financing that would lower the monthly rent for seniors from $2,600 to $2,100, Hansen said. Council chose to table the issue after complaints from council members Annie McMenamin and Carol Fritz that enough information wasn't available to make a decision. Mayor Bob Lenox took the blame for that, saying Prime Communities had approached him about this idea over a month ago and he should've had them provide more written documentation for council. Hansen told council that unless Prime Communities could get the help with financing, the project wouldn't be built because the financial risk would be too great. The Seniors Facility Authority would only issue the bonds, but the bonds would be backed by the revenue of the facility, he explained. Prime Communities has shown plans to the Planning Commission for a 144-unit upscale senior apartment complex located south of Crosstown Road, adjacent to the Village Park subdivision. The apartments, which would range from 1-bedroom efficiency to luxury 2-bedroom units, would be inhabited by seniors 62 years old and up. The amenities include a dining hall where three meals will be served daily, on-site security and a bus transportation system. Hansen said the concept of upscale senior apartments is new, and he pointed to only two other similar developments in the metro Atlanta region. But neither one was financed with bonds issued by a Seniors Facility Authority. "There's simply not a lot of this housing around," Hansen said, adding that Prime Communities has studied the surrounding area vigorously and believes there is enough of a market for senior upscale apartments within a 10-mile radius of the location. To break even, the apartments must average around a 77 percent occupancy, Hansen said. If council decides to pitch in, there's a strong possibility that members of the Development Authority will be asked to serve as the Seniors Facility Authority also. Lenox said he thought city residents would benefit from having the facility in town so elderly people would have a place to move and be near family. By appointing a Seniors Facility Authority, the city could help lower the monthly rent "so more of our typical city residents will be able to afford it," he added. John Munford
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