a proposal for a comprehensive housing analysis for ... minnesota ... contacting maxfield research...

A Proposal for a Comprehensive Housing Needs Analysis for

Olmsted County, Minnesota Prepared for:

Olmsted County Community Services Rochester, Minnesota

July 2013

1221 Nicollet Mall Suite 218 Minneapolis, MN 55403 612.338.0012 www.maxfieldresearch.com

612‐338‐0012 (fax) 612‐904‐7979 1221 Nicollet Mall, Suite 218, Minneapolis, MN 55403

www.maxfieldresearch.com

July 24, 2013 Mr. Paul Fleissner Director of Community Services Olmsted County 2117 Campus Drive SE, Suite 200 Rochester, MN 55904 Dear Mr. Fleissner: Thank you for contacting Maxfield Research Inc. to provide a proposal for a Comprehensive Housing Needs Analysis for Olmsted County, Minnesota. The study would examine demographic and economic factors, current housing market conditions, and would determine the market potential for developing additional housing products in Olmsted County for all of the cities and townships. We would provide detailed recommendations (number of units/lots; unit mix and sizes; price/rent; housing features and amenities, etc.) for the housing types identified as being needed in each city/township. Along with the proposal is a statement of qualifications for our firm which provides a company back‐ground, outlines our services and representative clients, and provides resumes of Maxfield staff who would be conducting the housing study. The work program for this comprehensive housing study is outlined on the following pages. The total fee for staff time for the analysis would be $31,190.00, including expenses for outside data purchases, postage, printing, photocopying, etc., but excluding travel expenses that shall not exceed $250.00. Costs are presented for each major component of the work program. Maxfield Research Inc. would be able to deliver a draft report of the housing analysis within 90 days of receiving an executed copy of this agreement. We welcome the opportunity to work with you on this project. If this proposal meets with your approv‐al, please sign and return one copy of the contract. Please call me if you have any questions about the proposed work program or if you need any other information. I can also be reached via email at [email protected] or (612) 904‐7971. Sincerely, MAXFIELD RESEARCH INC.

Matt Mullins Vice President Attachment

(main) 612‐338‐0012 (fax) 612‐904‐7979 1221 Nicollet Mall, Suite 218, Minneapolis, MN 55403

www.maxfieldresearch.com

July 24, 2013 Mr. Paul Fleissner Director of Community Services Olmsted County 2117 Campus Drive SE, Suite 200 Rochester, MN 55904

CONTRACT FOR PROFESSIONAL SERVICES Maxfield Research Inc. proposes to provide market research and consulting services to Olmsted County (the “Client”) to prepare a Comprehensive Housing Needs Analysis. The housing needs analysis would determine the market potential for developing various housing products through 2025 in five‐year increments based on an examination of demographic and employ‐ment trends, an analysis of the existing housing stock, and current housing market conditions. Demand will be calculated specifically for rental and for‐sale general‐occupancy housing (subsidized, affordable, and market rate), all senior housing product types, and special needs housing. Detailed recommendations (number of units, unit mix and sizes, prices/rents, ameni‐ties, etc.) for each housing product would be provided. In addition, recommendations on various tools and policies will be presented that would aid the implementation of the recom‐mended housing types for each county submarket. DESCRIPTION AND BIOGRAPHY OF FIRM Maxfield Research Inc. has nearly 30 years of experience in assisting communities to determine market conditions for planning and development efforts, providing demographic estimates and projections, and analyzing county and municipal commercial and residential real estate needs. Our thorough knowledge of market trends in the real estate industry allows us to support our clients with valuable information that affects planning and development. We are able to determine viable solutions to the issues that communities face. We are local, regional and national with work completed in over 40 states. Maxfield Research Inc. provides research and analysis in the areas of general market housing, student housing, senior housing, office, retail, hospitality, industrial, and financial institutions. Maxfield also has experience in organizing and conducting focus groups, preparing and adminis‐tering on‐line and mail surveys, holding public forums for large scale planning documents, and organizing and making presentations to city councils, planning commissions, and economic development authorities. A more detailed company overview is located in the Appendix.

Mr. Paul Fleissner July 24, 2013 Olmsted County – Community Services Page 2

MAXFIELD RESEARCH INC.

METHODOLOGY It is our understanding that the primary objective of this analysis is to provide Olmsted County with a market‐based analysis that will identify current and future housing needs in Olmsted County and help decision makers develop a greater understanding of each county jurisdiction’s housing market. Maxfield Research Inc. will provide detailed recommendations and an action plan for housing development (both short‐term and long‐term) and recommend tools and policies that will assist implementation. Our findings will provide a basis for community lead‐ers, stakeholders, and decision‐makers to guide future efforts of the County when addressing housing needs. The hallmark of Maxfield Research Inc.’s approach to comprehensive housing studies is a thoughtful, in‐depth combination of primary and secondary research. Primary research in‐cludes surveys of existing housing properties, one‐on‐one interviews with major employers, developers, builders, Realtors, property managers, city and government agency staff, and others familiar with housing issues and the local housing market. Secondary research includes data obtained from reliable published sources including the Census Bureau, ESRI (a national demographics firm), Minnesota Planning, and the Minnesota Department of Employment and Economic Development (“DEED”), among others. Secondary published data is always reviewed carefully in light of other local factors revealed through the primary research that may have an impact on the analysis. The result is a custom analysis that provides the Client with information that is timely and locally pertinent. Our work approach will draw on our experience and expertise in conducting housing studies on behalf of public entities and private developers. A detailed Scope of Services on the following pages outlines the specific tasks we will undertake to conduct this needs assessment. Maxfield Research Inc. routinely com‐pletes over 100 housing studies annually and is a market leader on housing research and consulting in the Upper Midwest.

Comprehensive Housing Needs Assessment



RESEARCH STAFF Mary Bujold, President of Maxfield Research Inc. will serve as Project Manager for this study. Mary will oversee the work program and review all work completed for the project. Ms. Bujold has twenty‐eight years experience in housing market research and is regarded as a market expert in the field of residential real estate. Mr. Matt Mullins, Vice President Business Development, will serve as the principal analyst for the project. Mr. Mullins will oversee the project timeline and will be responsible for the execu‐tion of the work program associated with the project. Mr. Mullins will work closely with junior staff to complete all work tasks associated with the project. Mr. Mullins was the lead analyst on several recent comprehensive housing studies, including projects completed for the Cities of Hutchinson, Roseville, Elk River and Scott County. Mr. Mullins is currently overseeing the comprehensive housing studies for Washington County, Minnesota and Lyon County, Iowa. Mr. Joe Hollman, Senior Research Analyst, would assist Mr. Mullins on this project as a principal analyst. Mr. Hollman would be responsible for completing a portion of the data gathering for this project, including interviews, contacting housing developments and preparing the conclu‐sions and recommendations, and compiling the written report. Mr. Hollman was the lead analyst on several recent comprehensive research studies that have focused on housing and commercial analysis, including a comprehensive housing study for Roseau County and is cur‐rently working on the housing plan for the City of Austin, Minnesota. Ms. Amanda Janzen, Research Analyst, will provide data gathering services for this project. Ms. Janzen will be responsible for compiling demographic and employment data and gathering base market information for the various types of housing. Ms. Janzen has assisted on several com‐prehensive housing needs studies during her tenure with Maxfield Research Inc., including the Cities of Roseville, Hutchinson, and Scott County. Ms. Janzen is currently working on the housing needs analysis for Washington County, Minnesota. Individual resumes of the project staff are included in the appendix.



SCOPE OF SERVICES A. Project Kickoff Meeting/Field Work

1. Meet with representatives of Olmsted County and other stakeholders to review pro‐ject goals and objectives. Refine work program if required. This report will require some assistance from the Client and stakeholders; data requests and other project assistance will be discussed during this time.

2. Conduct a windshield survey of the housing stock in each Olmsted County submar‐ket.

B. Review of Past Studies/Planning Documents

1. Obtain information on past housing studies/planning documents or other research reports/publications with information pertinent to the assignment. Review these documents and identify information from these analyses that is important for this study; identify how current conditions have changed.

2. Summarize information obtained from previous documents and their impact on the current analysis; include conflicting information or document key issues and their relevance to the current project.

C. Demographic Analysis (Data provided by submarket, county‐wide, and regionally)

1. Examine population and household growth trends and projections to 2025 by each

county city/township and submarket. 2. Compile and examine demographic information on:

a. population and household trends and projections by age group b. persons per household (household

size) c. household incomes by age of

householder d. household income by AMI levels e. household net worth f. household tenure g. household tenure by income h. household type i. diversity/ethnicity/culture j. educational attainment

3. Present information on mobility trends and migration patterns.

5. Summarize links between demographic profile and housing demand.

6. Discuss the implications of the findings on housing demand in Olmsted County.



D. Employment Trends 1. Compile and examine employment information on: a. Employment growth trends and projections in Olmsted County and available

submarkets through 2020; b. Resident employment and covered employment in Olmsted County and available

submarkets; c. Jobs by NAICS industry sector; d. Commuting patterns in Olmsted County and available submarkets by 1.) Place of residence vs. place of employment 2.) Wages 3.) Demographic characteristics. 2. Interview local major employers regarding growth plans, wages, where employees

live, and housing needs of employees. Identify if community housing is hindering economic development initiatives.

3. Interview economic development specialists and local officials regarding major em‐ployment changes and other developments that may impact long‐term employment projections.

4. Discuss the implications of the findings on housing demand in Olmsted County.

E. Housing Characteristics & Condition 1. Compile statistics on the age and type of the housing stock in Olmsted County by

submarket. 2. Compile residential building permit data by type of housing to the most current

available figures for all Olmstedy County submarkets. 3. Analyze U.S. Census and American Community Survey (ACS) findings collected be‐

tween 2007 and 2011. Compile the following: a. Renter‐occupied units by contract rent b. Owner‐occupied housing units by value c. Owner‐occupied housing units by mortgage status d. Housing units by structure and occupancy e. Housing units by occupancy status and tenure



4. Review housing market value data from City/County tax records (if available) or ACS. 5. Interview area housing professionals and other local governmental staff in each

submarket regarding housing conditions, economic development trends, and other factors that affect the local housing markets.

6. Provide data on cost‐burdened households (owner and renter); compil data from various sources and analyze the extent to which data accurately represents housing market segments that are experiencing the greatest cost burdens.

7. Identify residential land supply and its impact on potential housing production. 8. Discuss the implications of the findings on housing demand in Olmsted County.

F. For‐Sale Housing Market Review

1. Collect data on housing resale data for single‐family and multifamily homes for each submarket from 2007 through 2012, including number of sales, average/median sale price, and average time on market.

2. Compile data on home foreclosures in Olmsted County. Identify the number of home foreclosures by year and geographic location. Discuss any concerns/issues regarding concentrations of home foreclosures.

3. Analyze data on the inventory and list prices of homes currently for sale. 4. Inventory and survey active and recently completed single‐family subdivisions;

collect data on number of lots, lot sizes, product types, home sizes, sale prices, and resident/buyer profile.

5. Inventory and survey for‐sale multifamily developments currently marketing, collect data on product type, total units, unit mix, sizes, sale prices, and buyer profile.

6. Identify pending for‐sale housing developments in Olmsted County and discuss the likely impact of these developments on the housing market.

7. Interview real estate agents, developers, multifamily builders, and others regarding trends in the single‐family and condominium/townhome markets, including the availability of affordably priced homes. Discuss shadow market rentals with real estate sales agents.

8. Based on a windshield survey of homes in Olmsted County and interviews with local government staff and Realtors discuss the overall condition of the owner‐occupied housing stock in Olmsted County.

G. General Occupancy Rental Market Analysis 1. Collect information on larger (12‐units or more) general occupancy rental housing

projects, including subsidized (deep subsidy), affordable (shallow subsidy), work‐force housing, and market rate developments in Olmsted County. Map locations of rental housing projects to show concentrations of rental housing in the County.

2. Analyze data collected from the survey on rental rates, vacancies, year built/remodeled, building type, unit types and features, common area amenities, and resident profiles.



3. Identify the number of single‐family homes being rented, and determine the impact of the shadow market on the overall rental market for each submarket.

4. Inventory pending rental developments in Olmsted County and assess their potential impact on the market.

5. Interview owners/managers of rental housing in the area to assess rental trends and the need for additional rental housing in Olmsted County. Identify appropriate rent‐al rates and the target markets for new rental construction.

H. Senior Housing Market Analysis

1. Collect information on senior housing developments including subsidized (deep sub‐sidy), affordable (shallow subsidy) and market rate developments in Olmsted Coun‐ty. Projects will include rental and for‐sale active adult, congregate, assisted living, and memory care senior housing developments. In addition, collect information on skilled nursing facilities.

2. Analyze data collected from the survey on rents/prices, vacancies, unit types and features, services provided (if applicable), and resident profiles.

3. Inventory pending senior developments in the County and assess their potential im‐pact on the market.

4. Interview support service providers regarding the housing and service needs of sen‐iors in Olmsted County.

5. Interview managers/sponsors of senior housing in Olmsted County to assess market trends and the potential need for additional senior housing in Olmsted County.

6. Discuss the implications of the findings on the potential to develop additional senior housing in Olmsted County, including housing affordable to low and moderate in‐come seniors.

I. Special Needs Housing Analysis 1. Analyze data on the number of people with disabilities in Olmsted County by type

of disability (sensory, physical, mental) in 2000 and the most recent estimates. 2. Analyze secondary data on homeless shelter/transitional housing usage trends and

demographic characteristics of the homeless population in the Olmsted County ar‐ea.

3. Inventory special needs housing in Olmsted County (private and publicly operated); provide information on resident base served (including physical and mental disabili‐ties, homeless and transitional housing, migrant housing, and housing for domestic violence victims, Veterans housing, ex‐offenders housing and other types of special‐ized housing facilities).

4. Assess how current housing market conditions are creating additional barriers to finding and keeping affordable housing for those with special needs.

5. Identify any pending special needs housing developments, their timing, and impact on the market.



6. Interview city/county agencies involved in providing special needs services; inter‐view private non‐profit housing and service providers to assess the need and de‐mand for various types of special needs housing.

7. Make recommendations on the types of housing products that are in greatest need in the County for individuals and groups of individuals with special housing and/or service needs.

J. Conclusions and Recommendations

1. Calculate overall demand for owned and rented housing in Olmsted County in five‐year increments to 2025, including demand for subsidized, affordable, and market rate units.

2. Calculate study area demand for senior housing by service‐level in Olmsted County in five‐year increments to 2025, including demand for subsidized, affordable, and market rate units.

3. Project demand for special needs housing, including for physically and mentally dis‐abled people, people with AIDS, immigrants, youth, Veterans and the homeless.

4. Identify potential target markets for new for‐sale, rental, and senior housing. 5. Identify potential unmet market niches and discuss the primary deficiencies in the

current market situation. 6. Based on growth trends and projections and land availability for each submarket,

project the portion of the County’s housing demand that can be captured by each defined submarket to 2025.

7. Recommend appropriate development concepts in the short‐term (developments needed in the next five years) and long‐term (5‐10 years or more) to meet the hous‐ing needs of households with low and moderate incomes – including first‐time homebuyers, workforce rental and owner housing, low and moderate income sen‐iors, and people with special needs.

8. Discuss the potential need for public/private partnerships to achieve housing devel‐opment goals and support economic development in Olmsted County.

9. Discuss housing programs and resources that may also be administered by the city/county stakeholders (i.e. home improvement loads, energy and environmental sustainability, fix‐up funds, rehab programs, foreclosure assistance, first‐time home buyer classes, among others).

10. Provide recommendations on other challenges and opportunities that relate to the housing stock and housing development in Olmsted County. Categories may include affordability, development costs, code enforcement, shadow markets, land banking, among others.



K. Meetings and Report Preparation 1. One kickoff meeting with Olmsted County staff and stakeholders. 2. Via conference call, up to two progress report meetings with Olmsted County staff. 3. Via conference call, discuss the draft version of the report with Olmsted County

staff. 4. Preparation of final report. 5. In person, one presentation of the final report to the Client and stakeholders.

Total Cost for Staff Time: $31,190.00

COST OF SERVICES The work outlined under the Scope of Services will be performed for Thirty One Thousand One Hundred Ninety Dollars ($31,190.00), including out‐of‐pocket expenses for printing, postage, long‐distance telephone, data purchases, and an electronic version, but excluding expenses for travel (mileage, lodging, meals and incidentals) not to exceed $250.00, and payable as follows: a) the balance of the contract amount due in monthly installments at Maxfield Research Inc.’s discretion. Any additional research or meeting time requested by the Client beyond that set forth in the accompanying Scope of Services will be billed at our normal hourly rates for staff time ($55 to $150). Any hard copies of the report would be billed to the Client at our direct cost, which is estimated at $65.00 per color bound copy. The following fee proposal provides a detailed summary of staff hours needed to complete this project. The fee proposal includes a breakdown of costs by project task and Maxfield Research Inc. staff assigned to the project.



Project

Mary Matt Joe Amanda Phyllis Maxfield TotalsBujold Mullins Holman Janzen Austin Research

President Vice Pres. Senior Analyst Support Total

A. Project Kick‐off Meeting 0 2 2 0 0 4 $500

B. Review of Previous Studies 0 0 0 6 0 6 $510

C. Demographic Analysis 0 2 8 24 0 34 $3,290

D Employment Trends 0 6 8 6 0 20 $2,260

E. Housing Characteristics 0 8 0 12 0 20 $2,020

F For‐Sale Housing Market Review 0 20 10 0 0 30 $3,750

G General Occupancy Rental Market Analysis 2 4 16 34 0 56 $5,690

H. Senior Housing Market Analysis 0 2 8 16 0 26 $2,610

I. Special Needs Housing Analysis 4 4 16 20 0 44 $4,800

J. Conclusions and Recommendations 2 18 10 4 0 34 $4,140

K. Meetings and Report Preparation 0 6 4 2 4 16 $1,620

Total Hours 8 72 82 124 4 290(times) Hourly Rate $150 $125 $125 $85 $50

Total Cost for Staff Time $1,200 $9,000 $10,250 $10,540 $200 $31,190

(Plus) Travel Cost (not to exceed)* $250 $250

Total Cost for Staff Time + Travel $1,200 $9,250 $10,250 $10,540 $200 $31,440

Mileage billed at the standard IRS rate of $0.565 per mile.

Project Task

BUDGET PROPOSALCOMPREHENSIVE HOUSING NEEDS ASSESSMENT

Maxfield Research Inc. Staff

OLMSTED COUNTY, MINNESOTA

WORK PRODUCT Findings will be presented in an electronic PDF format. The Comprehensive Housing Needs Analysis is accepted by many lenders, limited partners, investors or governmental bodies who require such documentation to satisfy their financing criteria. Hard‐bound copies are available for our direct printing and binding cost, estimated at $65 per copy. COMPLETION TIME The work outlined under the Scope of Services (Draft Copy) for will be completed within 90 to 120 days of receipt by authorization to proceed, unless delayed by unexpected emergencies, forces beyond the control of the parties, or by written agreement of the parties. A final report would be issued within two weeks of receiving all comments and feedback from the Client.



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A. Project Kickoff

B. Review of Past Studies/Documents

C. Demographic Analysis

D. Employment Trends

E. Housing Characteristics

F. For‐Sale Housing Market Review

G. GO Rental Market Analysis

H. Senior Market Analysis

I. Special Needs Housing Analysis

J. Conclusions and Recommendations

K. Delivery of Draft Report

L. Final Report Completed

M. Presentation(s) of Final Report

PROPOSED COMPLETION TIMEFRAMECOMPREHENSIVE HOUSING NEEDS ASSESSMENT FOR OLMSTED COUNTY, MINNESOTA

Month 1 Month 2 Month 4Month 3

PAYMENT All invoices are payable to Maxfield Research Inc., within fifteen (15) days of receipt of an invoice showing the work completed and the direct costs for expenses. All invoices are sent out via email. The final invoice is sent out when the draft is completed. A finance charge of one and one‐half percent (1.5%) per month will be added to the unpaid balance of each invoice not paid within thirty (30) days. DISCLAIMER The objective of this research assignment is to gather and analyze as many market components as is reasonable within the time limits and projected staff hours set forth in this agreement. We assume no responsibility for matters legal in character. Certain information and statistics contained in the report, which are the basis for conclusions continued in the report, will be furnished by other independent sources. While we believe this



information is reliable, it has not been independently verified by us and we assume no responsibility for its accuracy. The conclusions in the report are based on our best judgments as market research consultants. Maxfield Research Inc. disclaims any express or implied warranty of assurance of representation that the projections or conclusions will be realized as stated. The result of the proposed project may be achieved, but also may vary due to changing market conditions characteristic of the real estate/banking industry, changes in facts that were the basis of con‐clusions in this report, or other unforeseen circumstances. This agreement will be construed according to the laws of the State of Minnesota. TERMINATION This agreement may be terminated upon written notification of either party to the other. In the event of termination, the Client will pay Maxfield Research Inc. for staff hours performed at the firm's normal hourly rates, plus all expenses incurred through the date of termination. If this proposal meets with your approval, please sign and return one copy to the offices of Maxfield Research Inc. Agreed to this day of 2013. MAXFIELD RESEARCH INC. OLMSTED COUNTY

Matt Mullins Mr. Paul Fleissner Vice President Director of Community Services



SELECTED HOUSING STUDIES / REFERENCES Maxfield Research Inc.

1. Comprehensive Housing Study for Washington County, Minnesota Client: Washington County Housing & Redevelopment Authority Contact: Barbara Dacy, (651) 458‐0936 Email: [email protected] Completed: Current Project (Previous study completed in September 2007)

2. Comprehensive Housing Study for Dakota County, Minnesota

Client: Dakota County CDA Contact: Cheryl Jacobson, (651) 675‐4433 Email: [email protected]

Completed: Draft study completed in spring 2013

3. Comprehensive Multifamily Housing Needs Analysis for Roseville, Minnesota Client: Roseville Housing and Redevelopment Authority Contact: Jeanne Kelsey, (651) 792‐7086 Email: [email protected]

Completed: May 2013 (Update to August 2009 project)

4. Comprehensive Housing Needs Analysis for Hutchinson, Minnesota Client: City of Hutchinson and Hutchinson HRA Contact: Jean Ward, (320) 234‐4451 Email: [email protected] Completed: Fall 2012

5. Comprehensive Housing Study for Scott County, Minnesota

Client: Scott County Community Development Authority Contact: William Jaffa, (952) 402‐9022 Email: [email protected] Completed: Spring 2012

6. Comprehensive Housing Needs Assessment for Anoka County, Minnesota Client: Anoka County HRA Contact: Ms. Karen Skepper, (763) 323‐5709 Email: [email protected] Completed: February 2011



7. Comprehensive Housing Needs Assessment for Freeborn County, Minnesota Client: Albert Lea HRA Contact: Mr. John Ford, (507) 377‐4375 Email: [email protected] Completed: January 2009

8. Comprehensive Housing Needs Assessment for Houston County, Minnesota Client: Bluff Country Multi‐County HRA Contact: Mr. Wayne Stenberg, (507) 864‐7741 Email: [email protected] Completed: 2009



APPENDIX

Phone: 612-338-0012 Fax: 612-904-7979 E-mail: [email protected]

1221 Nicollet Avenue Suite 218 Minneapolis, MN 55403 www.maxfieldresearch.com

Maxfield Research Inc.

Organization Maxfield Research Inc. Research that breaks ground….

General Background Mary has almost 30 years of experience in real estate research and consul ng and is considered a market expert in the field of residen al real estate and in market analysis for financial ins tu ons. She regularly tes fies as an expert witness for eminent domain, tax appeal and other types of real estate li ga on. As President, she heads projects for large‐scale land use and redevelopment studies including downtown revitaliza on for private developers and municipali es as well as private developers and universi es on their student housing needs. Mary frequently gives presenta ons at seminars and workshop sessions on current real estate market topics. Mary Bujold

President Experience Large‐Scale Redevelopment Master‐Planned Communi es Rental Housing Condominium Housing Senior Housing Student Housing Financial Ins tu ons Expert Tes mony and Li ga on Support Comprehensive Housing Needs Retail Analysis Downtown Revitaliza on Industrial Analysis Fiscal Impact Analysis

Professional Designa on and Appointments Counselors of Real Estate (CRE) CRE Board of Directors – 2‐year term Editor‐Real Estate Issues Journal Housing Development Commi ee‐Project for Pride in Living

Professional Organiza ons Counselors of Real Estate (CRE) Na onal Associa on of Realtors (NAR) Minnesota Associa on of Realtors (MAR) Minneapolis Area Associa on of Realtors (MAAR) Na onal Historic Trust – Main Street Center

Educa on Bachelor of Arts in Business Administra on Marque e University Masters of Business Administra on University of Minnesota





General Background Ma Mullins brings 16 years of real estate consul ng and advisory experience to Maxfield Research Inc. Ma has conducted and directed real estate analysis for projects locally, regionally, and na onally for a variety of private and public sector clients; including: housing, commercial, industrial, mixed‐use, hospitality, tourism, entertainment, financial ins tu ons, performing arts, transit‐oriented developments, among others. Ma frequently presents real estate findings and emerging trends to public sector en es and professional trade organiza ons. In addi on to his research and consul ng responsibili es, Mr. Mullins also manages and implements business development strategies for Maxfield Research. Ma authors Sitelines, a publica on distributed by Maxfield Research emphasizing current trends in real estate development. Mr. Mullins joined Maxfield Research in January 2003. Prior to joining Maxfield Research, Ma worked as a consultant for other na onally and globally‐based advisory service firms

Matt Mullins Vice President &

Business Development Experience Highest & Best Use Studies Adap ve Reuse and Redevelopment Comprehensive Housing Plans Master‐planned Communi es Retail, Commercial, & Industrial Apartments & Condominiums Senior Housing & Re rement Communi es Hospitality & Conference Centers Golf Courses & Marinas Mixed‐use Development Transit‐Oriented Development Resort/2nd Home Communi es Single‐family Homes & Townhomes Student Housing

Professional Organiza ons

Urban Land Ins tute (ULI) Sensible Land Coali on (SLUC) Na onal Associa on of Realtors (NAR) Minnesota Associa on of Realtors (MAR) Minneapolis Associa on of Realtors (MAAR)

Educa on

Bachelor of Arts in Urban Studies & Geography St. Cloud State University Mini‐Masters in Real Estate Development Mini‐Masters in Investment Real Estate University of St. Thomas

Registra on and Licenses

Licensed Real Estate Broker in the State of Minnesota





General Background As a former city planner and commercial real estate professional, Joe has over 15 years of experience in the research, analysis and presenta on of data relevant to the real estate industry. He has exper se in commercial real estate, housing, city planning, Geographic Informa on Systems mapping and demographic analysis. Prior to joining Maxfield Research, Joe was a member of the na onal research team for Cushman & Wakefield, one of the world’s largest commercial real estate firms. In this role, he authored nearly 100 reports focusing on the office, industrial and retail real estate markets in the Twin Ci es Metropolitan Area. Before joining the commercial real estate industry, Joe was a municipal planner for the following organiza ons: City of Columbia Heights, Minnesota; Arrowhead Regional Development Commission in Duluth, Minnesota; and, Peoria County, Illinois. As a planner, he contributed to the crea on of mul ple comprehensive plans, land use studies, zoning ordinances and site assessments.

Joe Hollman Sr. Research Analyst

Experience Retail, Office and Industrial General Occupancy Rental Housing Market Poten al Analyses Comprehensive Housing Plans Senior Housing and Re rement Communi es For‐Sale Housing Student Housing

Educa on

Bachelor of Science in Geography University of Wisconsin at La Crosse





General Background Amanda joined Maxfield Research as a Research Analyst in August of 2010. Amanda has conducted a variety of market assessments for senior housing, rental housing, and for‐sale housing. She has worked with private development and municipal groups in numerous Minnesota communi es as well as in Alaska, Washington, Iowa, Nebraska, New Jersey, and New York. Prior to coming to Maxfield, Amanda worked at SEH in the Planning and Urban Design Department where she worked on numerous projects throughout the Midwest. Projects included community‐wide comprehensive plans, downtown plans, and mixed use redevelopment plans.

Amanda Janzen Research Analyst

Experience Senior Housing Skilled Nursing Subsidized, Affordable and Market Rate Apartments Commercial and Retail Mixed Use Development Comprehensive Housing Plans

Educa on

Bachelor of Science in Urban Studies University of Minnesota

Masters of Urban and Regional Planning Humphrey Ins tute

Registra on and Licenses

Licensed Real Estate Agent in the State of

Minnesota

Slogan

SL

Maxfield Research Inc. is a full-service research firm providing timely and comprehensive real estate market information and analysis that is critical to the success of our clients. With more than 25 years of experience in real estate market feasibility and consulting, our expertise enables us to offer solutions to the difficult challenges that developers and municipalities face. We work closely with each client to assure our research data and analysis provide exactly the information needed in planning and developing new projects. Our proprietary databases add additional depth and breadth to our reports. Maxfield Research brings an intimate knowledge of market trends in the real estate industry, experience and knowledge that few can match. In uncertain times, our critical analysis and recommendations can be crucial to making the right decisions. Our experienced team of consultants provides our clients with both the hard numbers and the story behind those numbers: Information that is essential when planning for growth.

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1221 Nicollet Avenue Suite 218

Minneapolis, MN 55403

Phone: 612-338-0012

Fax: 612-904-7979 www.maxfieldresearch.com


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Multifamily Housing Analysis

Senior Housing Analysis

Comprehensive Housing Analysis

Highest and Best Use Analysis

Redevelopment Analysis

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Financial Analysis

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Economic Impact Analysis

Student Housing Analysis

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Our comprehensive studies detail the economic, demographic, and competitive factors that can make or break your development project. Our Market Feasibility Study presents the latest, most complete research on demographic trends and the marketing environment that determine the success of your development. SITE DESCRIPTION & ANALYSIS If you have a site selected for your project, we will personally view that property and review its characteristics. If you do not have a specific site, we can assist you in locating one. We examine:

Traffic patterns Access/visibility Surrounding land use Natural amenities Neighborhood services

DEMOGRAPHIC REVIEW Growth trends and demographic characteristics affect the pace of development and the type of product that will be successful. We define a study area that constitutes the primary draw area for your project, allowing you to gain a thorough understanding of the following factors:

Population Household growth Employment growth Demographic characteristics

Using local, state, and federal government data together with our own proprietary data, we analyze trends and determine demand for your project. ECONOMIC DATA We examine all economic trends related to the specific type of development being considered. We collect data and review:

Characteristics & growth of retail sales Characteristics & growth of employment Volume & types of construction Industrial expansion New businesses

COMMUNITY GROWTH For all of our residential studies, we review and analyze data on household tenure, housing types and values, and recent housing construction in order to forecast growth. We frequently adjust government projections to more accurately reflect local trends .



Phone: 612-338-0012



Statement of Qualifications

Our Staff

Mary Bujold, President Matt Mullins, Vice President & Business Development Joe Hollman, Sr. Research Analyst Brian Smith, Research Analyst Daniel Schwartz, Research Analyst Amanda Janzen, Research Analyst

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MARKET DATA Growth trends and demographic characteristics indicate demand for real estate product types, but you need to know the current and projected supply of competitive product. We collect data about existing projects, but we also thoroughly research future supply by interviewing city planners, community and economic development administrators, and developers themselves. Our primary research of the existing and projected competitive markets distinguishes our work and gives you a complete comprehensive analysis of how your project will compete in the marketplace. INTERVIEWS We talk directly to people who work in the area where your project will operate. Our in-depth interviews elicit invaluable first-hand knowledge from experienced people who know the marketplace. Depending on the type of study, we interview local officials and business managers, real estate agents, personnel administrators, social service workers, and property managers, among others. These interviews often indicate other areas that require investigation and provide a check against what we discover elsewhere in our research. SURVEYS We also conduct surveys and focus groups to test interest in the housing concept and to determine preferences regarding all aspects of housing design and services, as well as price sensitivity. The proper design and analysis of a consumer survey is essential to obtaining valid data and providing useful conclusions. We have conducted numerous surveys and focus groups for a variety of projects; we have also been engaged to examine the methodology and conclusions of surveys conducted by other firms. The complete research program enables the developer to bring a well-planned and highly competitive product to the increasingly challenging marketplace. FINANCIAL FEASIBILITY In addition to the market analysis for your project, you need to know its financial feasibility. Our firm can assist you in preparing pro forma statements based on economic assumptions produced by the Market Feasibility Study. We can prepare a cash flow statement that projects revenue and expenses for as many as ten years based on pricing and absorption. We base our expense calculations on actual or industry standards. Alternative statements for various financing plans are calculated to arrive at annual and cumulative cash flow projections. CONCLUSIONS & RECOMMENDATIONS This is where we tie the hours of research together, summarizing the critical aspects of study area, supply and demand. We will describe how your project will fit into the competitive environment and advise you about the optimum development plan. Combining a quarter of a century of real estate experience with the research specific to your study guarantees that you will obtain the information and recommendations you need in order to proceed.



Phone: 612-338-0012




Our Staff


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Market Feasibility Analysis for all types of development, with particular expertise in multifamily rentals, for-sale, multifamily, and senior housing. Market feasibility studies provide our clients with the information they need to determine the likelihood of successful implementation of the project they are evaluating. Market Assessments provide clients with relevant information to make site selection decisions, gain additional knowledge about current and evolving markets, or reposition existing properties to take advantage of changing markets or competitive conditions. Comprehensive Housing Analysis help cities and/or counties anticipate housing needs, direct housing policies, and understand key issues/conditions in the housing market. Senior Housing Analysis provide developers with an analysis of the factors involved in senior housing feasibility. We maintain a proprietary database tracking all of the determinants of senior housing’s success. Affordable Housing Analysis determine need that cities and counties can evaluate to determine development issues and allocation of funds. Commercial Analysis determine the market potential for the development of office and retail space, banks, recreational facilities, hospitality projects, and industrial space. Land Use Planning enables clients to redefine and reposition downtown areas, redevelop older neighborhoods, explore the highest and best uses of land and evaluate the capabilities of diverse land uses. Consulting Services are customized to meet individual client needs, and may include a variety of services tailored to the individual project.

Financial Analysis determine need for additional financial institutions in a market area by evaluating current financial/deposit data of a given market. Student Housing Analysis identify current market conditions for student rental housing and determine the market for reallocating on-campus student housing. Rental Housing Analysis determines the need for general occupancy in a multi-family housing concept.

Condominium Analysis provide developers with an analysis of potential feasibility and marketability of condominium projects in an area. Economic Impact Analysis provide developers with an analysis of the local economy and the impact that local businesses have on the community. Retail Analysis identify the competitive retail environment and estimates the demand potential for new retail space in the trade area. Hospitality Analysis analyze demographic and market data assessing market conditions that impact the feasibility of developing a limited-service or full-service hotel.



Phone: 612-338-0012




Our Staff
