LIVE I WORK I STUDY I VISIT

Transcription

1 LIVE I WORK I STUDY I VISIT SUBMITTED TO: OFFICE OF ECONOMIC & WORKFORCE DEVELOPMENT SAN FRANCISCO CITY HALL 1 Dr. Carlton B. Goodlett Place Room 448 San Francisco, California ATTN: PHILLIP WONG SUBMITTED BY: THE INTEGRAL GROUP 191 Peachtree Street Suite 4100 Atlanta, Georgia BUILDING SUSTAINABLE COMMUNITIES WHERE PEOPLE THRIVE

2 PART 1: EXPERIENCE A healthy social life is found only when in the mirror of each soul, the whole community finds its reflection, and when in the whole community the virtue of each one is living.

3 PART A: PROPOSER PROFILE PART 1: EXPERIENCE The Integral Group LLC is a privately held urban real estate development and investment management company. Founded in 1993, Integral has distinguished itself by compiling a track record of achievements in implementing residential, retail, office, institutional and transformational mixed-use projects in urban markets. Typically, the neighborhoods in which its projects are developed have been victims of high crime rates, urban decay, disinvestment, and disenfranchisement. More often than not, completed projects, similar to the size and scope of the Balboa Reservoir, have served as the catalyst of a newly energized community with home ownership investment and retail growth resulting in economic development, lower crime rates, and overall community pride. Master Developer Experience: The division within the Integral Group, the parent company that is responsible for developing large-scale, master-planned, mixed-use communities is the Community Development Division, which does business as Integral Development LLC (Integral). Integral, the Respondent that will enter into the ENA with the city, has successfully completed more than 55 projects with a total development cost approaching $2 billion. The Development Division has transformed hundreds of acres of land, in 15 cities and 9 states, developing more than 8,000 housing units, 5,100 of which are affordable. Integral has been highly successful at transforming well positioned, yet overlooked corridors into vibrant communities of choice while using creative financing to complete the deal. This approach to development has turned 'hidden gems' into desired destinations and created hundreds of jobs across cities. The division helps to ensure the success of revitalization projects and promotes new urbanism. Integral s experience utilizing new urbanism, which promotes walkability and pedestrian friendly communities is extensive and will be demonstrated throughout this proposal. These developments have a ripple effect that not only creates a sustainable community with workforce housing, but benefits the entire neighborhood, the city, and ultimately the state by, promoting ridership, encouraging walkability, decreasing traffic congestion, and creating new linkages that enhance accessibility. Integral s communities link residents with essential economic activity, which includes shopping, entertainment and employment centers, public parks, and balanced transportation options. Our team works with the community, public agencies and the City entities to design a master plan that provides a balance of density, green space, and pedestrian connectivity with a new street grid. The goal is to ensure that the development is visually compatible with the existing urban fabric. Our neighborhoods have proven to be a pedestrian-friendly environment, with very distinctive street facades that promote the urban lifestyle. Demonstrated ability to work with public agencies: As a pioneer and leader in the paradigm shift to mixed-use, mixed-income community development, Integral is committed to remaining at the leading edge of innovative techniques on completing healthy, thriving developments. Furthermore, Integral has extensive, relevant project experience and has served as Program Manager, Developer, or Development Consultant on over fifty-five (55) mixed-income real estate transactions. We have successfully partnered with over 15 cities, 12 housing authorities, redevelopment agencies, and other public and private entities to close these transactions. This partnership has resulted in Integral completing or currently completing over sixteen (16) multi-phased, master planned, mixedincome, mixed-use and mixed-financed in partnership with public agencies. Our experience with these types of transactions has evolved from HOPE VI developments to today s Choice Neighborhoods and beyond to other non-federally sponsored redevelopment efforts. Our journey has allowed us to guide, lead and assist in planning and implementing mixed-income housing developments supported by strong infrastructures. One great example is Integral s collaboration with public entities on its first mixed-income housing development, Centennial Place which was the very first HOPE VI project in the country. Integral coordinated with the housing authority on developing the legal and regulatory framework to make the mixed-income housing strategy viable in the state, including getting State and Local legislative changes to enable tax-exempt treatment to be conveyed to public housing eligible units in privately owned housing.

4 PART A: PROPOSER PROFILE (continued) Innovative approach to development: As forerunners, innovation is demonstrated throughout Integral s history. In 1998, Integral developed the FIRST mixed-income, Hope VI development in the nation. Fast forward to today and Integral continues to be the pioneer. In 2012, Integral was awarded tax credits for the FIRST affordable assisted living project in Georgia. The Oasis at Scholars Landing is a full-service Assisted Living Facility (ALF) that will operate 24 hours per day, 7 days per week, and serving 3 meals per day. In 2013, Integral received funding for the FIRST preservation project in Georgia due to expiring Tax Credits for Integral s Centennial Place development. In 2016, Integral s community revitalization development, Scholars Landing, became the FIRST community to receive the Choice Neighborhood Implementation (CNI) Grant in Georgia. Integral continues to make history and set standards for affordable housing throughout the country. In 2015, Integral broke ground on the FIRST and only truly affordable housing solution adjacent to Denver s Union Station. Thereby, delivering 109 residential units, of which 75 are affordable. Additionally, The Veranda at Whitted School is yet another example of Integral s innovative approach to financing strategies and development. The Veranda at Whitted School is the Intergenerational Historic Rehab of an existing elementary school building in Durham, North Carolina. Integral partnered with several public agencies, including the Durham Public Schools to complete the project. The project will have 79 units of affordable independent senior housing and 30,000 sq. feet of early childhood education space. Funding sources include FHA debt, City Funds, County Funds, State Historic and Low Income Housing Tax Credit Equity and Housing Authority project based vouchers. The Veranda at Whitted School will be the FIRST of its kind in North Carolina and demonstrates Integral s innovative development in partnership with public entities. Ability to address community concerns: Integral approaches resident and community participation from a perspective of respect and practicality. We believe that the long-term success of any project will be measured by the people it affects. This has been our mission since the company s inception. Which is why when Integral is involved in a program, we take the time to develop all the required relationships, from the President of the local college to the elderly resident that has been living in the community most of his/her life. Always seeking consensus, our team members work with local partners to identify each party and person with interests in the program to pinpoint mutual interests for joint gain. Then through education, conversation, and written communication, we establish a shared vision. That vision is reduced to goals, objectives, and specific tasks, which allows for careful focus. It is our ability to maintain focus on the completion of critical tasks that has led to the fulfillment of award winning and more importantly, the fulfillment of great shared visions to provide workforce housing for residents. All of this comes about through solid trusting relationships. Our implementation strategy will rely heavily on its ability to gain consensus from the community stakeholders. Therefore, a large effort will be made to solicit input from and provide clear and concise information to the identified stakeholder groups. Integral is confident that the ultimate plan will engage the support of community stakeholders. We base this belief on Integral s past track record. Combined, our team members have over 100 years of experience in revitalizing communities. Partners of our parent company include Egbert Perry, Vicki Lundy Wilbon, Valerie Edwards and Carl Powell. Dalila Sotelo, Integral s Vice President and Western Region Managing Director, is based in California and will serve as the lead negotiator for the Balboa Reservoir project. Other key personnel include Jay Stark, Rian Smith, Beeleng Chan and Matt Samuelson. As requested in the RFP, we have included each of their resumes at the end of this section. We believe the preceding narrative illustrates our firm s ability to complete a first-class, mixed-income workforce housing development residents of San Francisco can proudly call home. Throughout this proposal, we will continue to highlight our past track record of financing and developing projects similar in scale and size to the Balboa Reservoir in the hopes that the depth of our experience can be captured through limited pages. Integral stands ready to assist the San Francisco Public Utilities Commission in its quest to provide a robust, dynamic development.

5 PART A: PROFILES OF KEY PERSONNEL Integral believes it is critical to the success of the development to have a well-defined and structured team of individuals with hands-on experience with mixed-use, mixed-finance, mixed-income, and community building. Our team is built on solid relationships and a history of working together successfully on prior mixed-income, affordable, LIHTC and HUD sponsored projects. As is clear from the resumes below, each team member brings specific subject matter expertise and extensive experience that will contribute to the success of revitalizing the Balboa Reservoir site. Each assigned team member is pledged to commit its human resources, to whatever extent required, to meet the schedule and quality expectations of the Office of Economic & Workforce Development. EGBERT L. J. PERRY, a native of Antigua & Barbuda, is the Chairman and Chief Executive Officer of Integral, a company he co-founded in 1993 with a mission to create value in cities and (re)build the fabric of communities. Since then, Integral has become a premier provider of sustainable real estate and community solutions in mature and emerging markets across the United States and, more recently, internationally. The Company is vertically integrated with subsidiaries in community development, commercial real estate, investment management, property management, and program management services. Integral's community development approach was first realized when Centennial Place, a collaboration with the Atlanta Housing Authority and another firm, was created. This forward thinking concept was the nation s first urban mixed-income, mixed-use community, integrating mixed-income housing, early childhood development, K-12 education reform and human services. This holistic revitalization approach to community development, conceived and pioneered by Egbert, Integral and its partners has since been emulated in Atlanta and scores of cities across the country. Under Egbert s leadership, Integral has implemented over 50 publicprivate partnerships that promote responsible community development. In addition to its extensive experience in holistic community development, the Company is a well-respected commercial real estate developer of residential and mixed-use projects nation-wide, with a strong commitment to Transit Oriented Developments ( TOD s ). Today, with a substantial track record of transformational real estate projects, Integral is a diversified, 300-person organization that has successfully completed projects in over 12 markets in the mid-atlantic, Southeast and Western regions of the United States. The Company is headquartered in Atlanta, with offices in Denver, Los Angeles, San Francisco and Dallas. An honors graduate of the University of Pennsylvania, Egbert received both Bachelor of Science and Master of Science degrees in Civil Engineering from the University s Towne School, and a Master of Business Administration degree with majors in Finance and Accounting from its Wharton School. Currently, Egbert chairs the boards of: Fannie Mae, a $3.2 trillion mortgage giant and the largest financial institution (by assets) in the US. Penn Institute for Urban Research, furthering scholarship & practice on important urban issues Centennial Academy, a STEAM Charter School in Atlanta He also serves as a member of the boards of: University of Pennsylvania Board of Trustees since 1996 Atlanta Business League National Center for Civil & Human Rights Central Atlanta Progress, serving as Chair from 2011 to 2014 Carter Center

6 PART A: PROFILES OF KEY PERSONNEL (continued) VICKI LUNDY WILBON is a principal and Executive Vice President with The Integral Group LLC (Integral), an Atlanta-based real estate development and investment management firm. In this capacity, she has played a significant role in developing corporate policy and driving execution towards the successful accomplishment of strategic goals. As the President of Integral s Community Development Division, Ms. Wilbon spearheads the operation that has distinguished itself in the marketplace by completing some of the nation s most successful and transformative residential and mixed-use developments through thoughtful and innovative master planning and implementation. She has been responsible for the day-to -day management of Integral s redevelopment initiatives, many of which have been executed through public/ private partnerships with various public entities. Ms. Wilbon has worked extensively in the Real Estate development industry for approximately thirty years. Since joining Integral in 1994, she has earned a reputation for identifying and assessing development opportunities, incorporating community-impact initiatives, arranging financing sources and structures, and executing implementation strategies and organizational processes. Integral s multi-family development portfolio, under Ms. Wilbon s leadership, has amassed an aggregate total development cost of over $592 Million. Her vast experience and expertise in place-making and multi-phased redevelopments has allowed her to manage every aspect of comprehensive development programs including master planning with community participation, managing public/private partnerships, inspiring creative design, and developing and implementing innovative financing structures. In addition, Ms. Wilbon oversaw the construction and management divisions and was involved in the construction, lease-up, operations and asset management for various projects. As a result of her extensive experience with public/private partnerships, Ms. Wilbon has mastered the use and layering of federal, or other public funds, with private equity, conventional debt and other funding sources. She has structured and implemented numerous urban revitalization projects and developed strong relationships with institutional debt and equity providers. Under her purview, over $343 Million and $248 Million of debt and equity, respectively, has been raised. Ms. Wilbon earned a B.S. degree in Building Construction & Technology from Purdue University, West Lafayette, IN. She is a Certified Commercial Investment Member (CCIM) candidate and a Housing Credit Certified Professional. Active in civic, corporate and community organizations, Ms. Wilbon serves on the Metropolitan Atlanta YMCA Board and the St. Joseph Health System Board. Additionally she serves on the Advisory Board of the Georgia Women s Affordable Housing Network.

7 PART A: PROFILES OF KEY PERSONNEL (continued) DALILA SOTELO located in Los Angeles, is a Vice President, Western Region Managing Director in Integral s Community Development Division. Ms. Sotelo has been actively involved in affordable housing development and finance for over 25 years. Throughout her career, she has been an effective advocate of affordable housing for low-income populations and has spent her time promoting this effort across the nation. Prior to joining Integral, Ms. Sotelo formed The Sotelo Group Inc., a firm specializing in providing real estate, finance, community outreach and development services to government, non-profit and for-profit entities. During Ms. Sotelo noteworthy career, she has also served as the Deputy. She facilitated the financing of affordable housing within the agency s sprawling 32 project areas within a record -breaking four-year period. The investment into housing during her term totaled $240 million in local public subsidy. From 1995 to 2007, she ascended the ranks to become the youngest female Senior Vice President of the McCormack Salazar, where she coordinated development teams, secured private and public financing, and spearheaded production of seven phases of mixed-income housing developments under the HOPE IV program. Ms. Sotelo has tackled complicated financial transactions to secure over $500 million of financing for nearly 2,700 units of affordable housing throughout California. Ms. Sotelo received a B.A. degree in Public Policy from the Occidental College where she learned the importance of civic engagement. She currently serves as a Governor Appointee on the California Housing Finance Agency Board of Directors and as County Supervisorial appointee for the Rosemead Successor Agency. She is proud to have served on public commission for three consecutive Mayoral administrations including serving as the President of the LA Fire Department of Mayor Antonio Villaraigosa and President of the Affordable Housing Commission for Mayor Eric Garcetti.

8 PART A: PROFILES OF KEY PERSONNEL (continued) JAY STARK serves as President of Integral Investment Management. In this capacity, Mr. Stark is responsible for all debt and equity capital relationships for the firm from affordable housing to market-rate housing and commercial development. Mr. Stark is also a member of the firm s Investment Committee. Prior to joining Integral Investment Management, Mr. Stark served as managing director and co-founder of Urban Private Equity Funds for Phoenix Realty Group where he targeted investments in urban residential and commercial properties. Mr. Stark was responsible for origination, underwriting, due diligence and closing of the firm s equity investments. He was also a member of both the national Investment Committee and Executive Committee. As an investor and developer, Mr. Stark has been involved in over $2 billion of urban residential investments throughout the United States including all forms of for-rent and for-sale urban residential developments including market rate, affordable and workforce housing. Phoenix Realty Group (PRG) manages approximately $800 million of institutional capital to invest in urban residential and commercial development throughout the United States and is backed by institutional investors such as CalPERS, Northwestern Mutual, John Hancock, City of Los Angeles Pension Fund, New York Common Fund, UC Regents and other notable investors. Mr. Stark served as a Key Man for all investment funds and was directly responsible, with the other firm s principals, for the fund formation, fund raising and fund execution. Prior to joining PRG, Mr. Stark was Director of Development for The Lee Group, Inc., a leading urban residential development company where he was involved in the development of over $300 million of urban housing in Southern California. At The Lee Group, Mr. Stark was involved in all aspects of the residential business including land acquisition, master planning, product development, entitlements, financing, construction and sales and marketing. During his tenure at The Lee Group, Mr. Stark served as the Project Developer for Village Green, 186 single-family homes planned and developed adjacent to a major transit hub and childcare center. The Village Green project was built in partnership with the Clinton Administration s Partnership for Advancing Technology in Housing (PATH), and at the time it was built, the project was the largest solar-electric subdivision and the most energy-efficient new home community in the United States. President Clinton attended the groundbreaking of the project in May, Mr. Stark served on the State of California s principal Affordable Housing Committee from 2005 to 2012, the Department of Housing and Community Development s (HCD) Local Assistance Loan and Grant Committee. There he oversaw more than 20 state-wide affordable housing and infrastructure programs, including the $2.5 billion Proposition 1C bond measure, which includes funding for transit-based housing, urban infill development and related affordable housing initiatives throughout California. He holds a bachelor s degree from the University of California, Santa Cruz and a master s degree from the University of Southern California in Urban Planning and Real Estate Development.

9 PART A: PROFILES OF KEY PERSONNEL (continued) Rian Smith is Vice President and Chief Legal Officer of The Integral Group. Ms. Smith oversees all real estate related legal documents, and provides legal and transaction support to all of Integral's real estate development divisions. Prior to Integral, Ms. Smith was a commercial real estate attorney at each of Arnall Golden Gregory LLP and Sutherland Asbill & Brennan LLP, both in Atlanta. In the law firm environment, she counseled clients in a broad spectrum of commercial real estate matters, including purchasing, selling, and developing improved and unimproved real property, as well as retail, office, and industrial leasing. Her clients included borrowers and lenders in traditional loan transactions for loans secured by residential multifamily projects, shopping centers, office buildings, and industrial facilities; developers in co-investment transactions with institutional investors; and developers in all stages of real estate development. Ms. Smith also supported her clients with related corporate matters, such as entity formation, operation, and governance. Ms. Smith earned her juris doctor from the Georgetown University Law Center, and her bachelor's degree from the University of Pennsylvania. She is admitted to practice in the State of Georgia and the State of New York. After law school, Ms. Smith returned to her hometown, Atlanta, where she now resides with her husband and two young sons. Since returning home, Ms. Smith has served on the board of directors for the KIPP South Fulton Academy charter school; the founding board of Emerging Leaders for Children's Healthcare of Atlanta; the steering committee for the University of Pennsylvania's "Penn Spectrum," a conference celebrating cultural diversity; and has recently joined the board of directors of the Black Women's Health Imperative.

10 PART A: PROFILES OF KEY PERSONNEL (continued) BEELENG CHAN is the Finance Director for Integral Development. She has over 19 years of real estate, finance, and accounting experience. Ms. Chan is involved in the Company s real estate projects, with responsibilities in structuring transactions, assisting in preparation of applications and solicitations for tax credit and equity, pursuing for debt and various development incentives, initial closings, and the final close out of the entire development. She prepares and analyzes financial projections for the various developments, which include but not limited to multifamily and senior housing. She also has involvement in various complex financings such as FHA/HUD, Freddie Mac, Fannie Mae, Tax Exempt Bond, AHP, HOME, CDBG, and other PHA/HUD financings. Over the past 10+ years at Integral, Ms. Chan has mostly involved in FHA/ HUD Section 221(d)(4), 223(a)(7), and 223(f) financings. These financings include approximately 30 transactions with $100M in debt volume. Prior to joining Integral, Ms. Chan has over 8 years of accounting, tax, and real estate consulting experience from two accounting firms. One of the accounting firms was Reznick Group, P.C., where she worked over 5 years. Ms. Chan was a Tax Senior in the first two years and a Real Estate Consulting Manager in the remaining years at Reznick. She managed and coordinated due diligence on several large portfolios with equity investment of between $81M to $107M. Ms. Chan has background in Section 42 Low-Income Housing Tax Credits and Section 47 Rehabilitation Tax Credits. She also has specialized knowledge in HOPE VI, IRP decoupling, tax-exempt bond tests such as 95/5, and 50%, Section 704(b), and Section 708 Technical Termination. Ms. Chan received a B.S. in Accounting from Georgia State University.

11 PART A: PROFILES OF KEY PERSONNEL (continued) MATT SAMUELSON s 20 year career path began at Danis Industries, a heavy civil construction firm focused on water, waste water and infrastructure and continued as Project Manager on Beers Construction s healthcare and education projects. He grew to President of CCL Associates, a regionally based program management firm, where he led the evolution of its brand and its offerings, culminating in projects totaling over $1Bin development costs. Samuelson continued his dedication for program management in founding a firm that specializes in campus, recreational, performance and assembly spaces. He left the partners of his firm to become President of IntegralGude Program Management and focus his energies on championing the company to it s current position as a leader in the southeast. Samuelson graduated from the Georgia Institute of Technology with a Bachelors degree in Civil Engineering and received a certificate of engineering from Oxford University in England. His board member service includes Metro Atlanta YMCA, Fellowship of Christian Athletes, True Colors Theatre Company, several local civic organizations and chairs the board of Velocity Productions, a technical and creative production company

12 PART B: PROJECT PROFILES ~ AUBURN POINTE Location: Atlanta, Georgia Cost: $76M (To-date) Size: 27-acre site Auburn Pointe demonstrates the successful revival of one of Atlanta s most beloved communities. Originally constructed in 1941, the older community consisted of 495 public housing units, a management office and community center. Today, that community stands as a newly revitalized neighborhood that serves as a vehicle to rebuild dreams of families and restore a blighted, dilapidated community to its former prominence. Integral, along with its public partners, determined that warehousing poor families in isolated barrack-style buildings, served by under-achieving schools was detrimental and perpetuated the cycle of poverty. The vision to revitalize the community was based on five (5) guiding principles that would lead to the transformation:1) deconcentration of poverty, 2) comprehensiveness and sustainability of approach, 3) mixed-income communities with a seamless affordable component, 4) harnessing the power of the private market, and 5) raising standards and expectations and providing the necessary support to residents. Today, the multi-phased community, which spans over seven phases, includes senior independent living, multi-family housing, and homeownership. It is the ideal development, with distinctive and diverse architecture that connects individuals from a wide range of ages, incomes and backgrounds. Project Timeline and Milestones: Integral closed on the first onsite phase, The Veranda at Auburn Pointe I, an independent senior, living facility in 2007 and completed construction in Ashley Auburn Pointe I, the first phase of our multi-family, mixed-income component, was completed in November 2010, Veranda at Auburn Pointe II and the Veranda at Auburn Pointe III, additional senior facilities, were completed in 2013 and Ashley Auburn Pointe II, the second multi-family phase was completed in 2014.

13 PART B: PROJECT PROFILES ~ AUBURN POINTE (continued) Development Program/Size: The 27-acre site consists of 304 luxury apartment homes, 60% of which are affordable and 324 independent senior apartment homes, 100% of which are affordable. Future phases include for sale townhomes and student housing. The community is lined with new pedestrian friendly streets and a linear greenbelt. The community is adjacent to a city-owned park, with active and passive programming Cost and Financial Structure: The total development costs of $75.7 million were financed utilizing the following sources: LIHTC equity of $19.4 million; HUD 221 d (4) financing of $17.8 million; federal funds (HOPE VI/RHF/AHA) of $8.5 million; ARRA Stimulus funds of $30 million. Role of Respondent: Integral serves as General Partner/Co-Managing Member or a Co-General Partner/ Co-Managing Member. In this capacity, Integral had the lead responsibility for the coordination and oversight of all critical activities associated the revitalization program through project conceptualization, planning, design, construction and management. Integral was also responsible for the day-to-day operation, including legal, entitlement, coordinating with the community and submitting applications for financing. Role of Public Sector: The formation of a public/private partnership was significant to completing The Auburn Pointe Community. Integral collaborated with The Atlanta Housing Authority and the City of Atlanta. The Atlanta Housing Authority has provided over $31,000,000 in public funds for demolition, site preparation, construction, public improvements, and acquisitions. In addition, we worked with the City in the planning and implementation of Auburn Pointe, partnering with the Mayor s Office, and the Departments of Planning and Community Development, Watershed Management, Public Works, and Parks, Recreation & Cultural Affairs. The City has contributed $5,148,000 in Water/Sewer Bond funding and $330,000 in Quality of Life Bond funding to public improvements and another $600,000 to the renovation of Butler Park. Community Strategy: Integral worked extensively with the residents and community to establish a newly revised neighborhood. Our firm coordinated with residents to develop the Revitalization Plan that was ultimately accepted and approved by the community. Integral collaborated with Neighborhood Planning Units (NPU) to gain consensus on the design of the units and the development plan. Project Status: Managed by Integral Property Management, the property [MD5] operates consistently at 95% occupancy levels or above. Future phases of homeowner and student housing are in its planning phase. Challenges and Solutions: The single biggest challenge for the Auburn Pointe community was the collapse of the debt and tax credit investment markets in Banks and investors were no longer investing in real estate transactions. As with all other real estate deals at the time, Ashley Auburn Pointe, Veranda II and Veranda III were unable to leverage the awarded tax credits into equity dollars. Ultimately, ARRA Funds, through the federal stimulus program were obtained and combined with FHA Debt and HOPE VI Funds to complete the project. This ensured that workforce and affordable senior housing would be blended with luxury apartments to create Auburn Pointe. Integral also overcame disinvestment of the area. To further enhance the Auburn Pointe neighborhood revitalization, Integral and its public partner acquired four offsite properties. This approach created a link to strategic corridors, and helped eliminate islands of blight, thus making the overall development more attractive.

14 PART B: PROJECT PROFILES ~ EVIVA MISSION BAY Location: San Francisco, California Cost: 63.6M (To-date) Size:.94 acres EVIVA Mission Bay, is a newly constructed five story luxury pedestrian-and-transit oriented community located in the highly sought-after Mission Bay neighborhood of San Francisco, California. The building consists of 129 mixedincome rental units with street level parking. The location is very convenient to employment, transit and lifestyle amenities. The property is two blocks from the southern edge of SoMa, which has a high concentration of jobs, restaurants, and nightlife, and is also convenient to the financial district and mid-market employment centers. The Project is three blocks from AT&T Park (home to the San Francisco Giants), and eight blocks from the planned site for a new sports arena to be home to the Golden State Warriors beginning in 2017 (plans still preliminary). The site offers quick access to Interstate 280 (entrance and exit ramps adjacent to site), and is one block from the Caltrain station offering regional rail service along with connections to multiple local MUNI bus and trolley lines. The community also received a Walk Score of 77, Very Walkable and Bike score of 97, Biker s Paradise. Project Timeline and Milestones: Integral engaged Mission Bay Development Group and the Office of Community Investment and Infrastructure ( OCII ) in an open book negotiation for 18 months prior to ground-breaking. The goal of the extended pre-development was to create the highest number of affordable units within the parameters of a privately financed project. In September 2014, the groups successfully agreed to create 26-unit of moderate income housing at 90% AMI and construction began in December The project was completed on budget in November 2016 and subsequently opened to residents later that month. Development Program/Size: Eviva Mission Bay consists of 129 multifamily residential units including a mix of 1-, 2-, and 3-BR units and averaging 833 square feet ( sf ). The unit mix includes 103 market-rate units and 26 (20%) below market-rate ( BMR ) units (defined in this case as being affordable to an individual earning 90% of median income). The community also includes 75 enclosed parking spaces with controlled access and 54 bike storage spaces.

15 PART B: PROJECT PROFILES ~ EVIVA MISSION BAY (continued) Cost and Financial Structure: Project Budget of $63.6M. 70% Debt ($44.6M) and 30% Equity ($19M) Role of Respondent: Developer Role of Public Sector: Our public partners was engaged in reviewing and approving the marketing plan for the below market rate units as well as the project s façade color scheme. The developer had a great working relation with our public partners and stakeholders. The Office of Community Investment and Infrastructure (OCII), formerly the San Francisco Redevelopment Agency, serves as the lead public agency for the Mission Bay Masterplan. Integral and OCII negotiated a revised amendment to the Mission Bay North Disposition and Development Agreement (DDA) to finalize the project program, affordability guidelines including number of affordable units, architectural program and the overall financial structure including the land acquisition for the project. Community Strategy: Integral worked with a local community consultant to maximize participation by local, minority and women-owned businesses and to ensure a diversity of representation on the project. The approach was programmatic and systematically implemented across the different stages of the construction process. Project Status: The project is currently completed and in lease up. There is ongoing collaboration activities with the public partners on the application and lottery process for prospective tenants for below market rate units (20% of total units). Challenges and Solutions: The development team faced several challenges in the development of this project including the supporting the high cost of the construction in the San Francisco MSA for affordable units without public subsidy and creating an affordable housing plan acceptable to public agencies and private partners. The cost of construction is San Francisco is a significant barrier to creation of long-term, sustainable affordable housing given the limited public sources available to fill the gap between affordable rents and high construction costs. The development team was able to bridge the gap by sourcing flexible, low cost financing through EastWest Bank s Low-Rate Private Placement bond program. Through the program, the development was able to access below market rate terms which offset the higher construction costs. Furthermore, Integral spent significant time and resources during pre-development creating the most cost effective design including moving community spaces outdoor and improving energy efficiency through design to reduce long-term operating costs. The combination of financial and design engineering enabled the team to build high-quality, high-design Class A property with a significant number of affordable units. Integral and OCII approached EVIVA Mission Bay with the goal of creating the highest number of affordable units, without having to tap local, state or national subsidies. Through our open book process OCII and the development team were able to review and discuss dozens of affordable development program scenarios. This was done give parties a complete understanding of how adjustments to affordability level and penetration impacted the financial feasibility of the project. The result was the creation of 26 moderate income units, at 90% AMI, financed by solely private debt and equity.

16 PART B: PROJECT PROFILES ~ ASHLEY UNION STATION Location: Denver, Colorado Cost: $30.3M (To-date) Size: 1.13 acre site Ashley Union Station is located at th Street in the new Denver Union Station Neighborhood. Development activity includes, either completed or under construction, over 3,000 residential units, 4.6 square feet of office space, 550 hotel rooms and 15 acres of plazas and public space. Ashley Union Station is at the heart of all this activity representing the only truly affordable solution structure within a mixed-income housing program. Project Timeline and Milestones: Over the course of 16 months, Integral Development acquired the land, arranged for all financing from multiple private, public and federal program sources, designed, permitted and began construction. The project closed in December As Integral sought to coordinate with the surrounding community, construction began in June, 2015 and will be completed March Development Program/Size: The Development Program includes 107 residential units, a coffee shop, fitness center, business center and leasing offices. Of the 107 units, 32 are market rate, 64 are tax credit serving families at 40-60% of the area median income and 7 are reserved for Project Based Section 8. This unit mix offers housing opportunities for individuals and families of all incomes. Cost and Financial Structure: The financing for the Ashley Union Station project was provided through 9% Low Income Housing Tax Credits, private construction and permanent loans, a State of Colorado Division of Housing loan, a City of Denver Office of Economic Development loan, a City of Denver forgiveable loan and partnership funding with the Denver Housing Authority.

17 PART B: PROJECT PROFILES ~ ASHLEY UNION STATION (continued) Role of Respondent: Integral Development served as the equity developer. In this capacity, Integral was responsible for aspects of the development process including acquisition, securing all financing, providing guarantees, overseeing the architect and their design process and hiring the general contractor. Integral brought a dynamic team together to deliver one of the most needed building in the Union Station Neighborhood. Role of Public Sector: Integral had key public sector support for this project. The City of Denver provided $3.2M in financing. The State of Colorado provided $760,000 in financing. The Colorado Housing and Finance Authority provide of $12M in Low Income Housing Tax Credits to the project. This project was directly supported by the Mayor s Office and by City Council as a one of the top affordable housing developments of The Denver Office of Economic Development championed the project as well as one of their key initiatives. The Denver Housing Authority provided Section 8 vouchers to support reaching low income families. Community Strategy: Integral worked hand in hand with the many partners of the Union Station Neighborhood and the City. Since the Union Station Neighborhood was a dynamic revitalization of an entire section of the City, the strategy and outcomes were less evidenced by local community residents, given that the neighborhood didn't exist but was being built, but rather through the affordable housing advocacy and development community. When the master developer was nearing its final land sales, Integral and the City of Denver joined forces to make one last attempt to secure land in this important development on which to deliver the only affordable tax credit units in a mixed-income program. All previous land sales were for market or commercial development. If Integral and the City had not been successful, there would be no 9% affordable tax credit housing in the Union Station Neighborhood. As the opportunity was being secured, the master development entity recognized the importance and the vision was realized through the support of multiple entities and advocates. Project Status: The project is currently under construction and will be ready or occupancy in March of The completed project will be the only mixed-income affordable housing in the Union Station Neighborhood. Challenges and Solutions: As with any project there are several challenges that must be overcome. The main challenge for Ashley Union Station was related to timing. The master developer for the Union Station Neighborhood provided the opportunity for Integral to acquire one of the last remaining sites with strict financing success requirements. This meant that Integral had to secure its financing with the Colorado Housing and Finance Authority and other key partners within months of the land opportunity presenting itself. This took great coordination and will from many partners to achieve this success in a highly competitive environment. If not successful, the opportunity would have been lost and there would not be a LIHTC deal in the Union Station Neighborhood. The timing also related to phasing of construction. With so many projects coming out of the ground at the same time, significant work went into coordinating utilities and site logistics. Through strong working relationships with the local utility and public works department, the schedule seamlessly incorporated the movement of multiple switch cabinets and transformers off the site, funded predominantly by the local utility with no interruption in schedule. Part of that solution was releasing a Phase A of construction at risk, funded solely by Integral and the local utility, to facilitate the ultimate construction scheduled success.