Burnsville's Heart of the City could soon be host to a new, upscale senior co-operative— Applewood Pointe.
Tuesday, the developer, United Properties, made a pitch to the mayor and council for what would be its eighth Twin Cities location. The proposed four-story building would sit just behind Uptown Landing on Burnsville Parkway East. Each share in the 52-unit building would cost an average of $290,000. Unlike a condo owners, co-op members own a chunk of the master mortgage for the entire building. They pay a monthly fee that includes their share of the mortgage, maintenance and utilities for the complex as a whole.
Only those 62 and over would be eligible to live in the complex. The structure of a co-op program also allows the governing board a certain amount of exclusionary power over hopeful members, even those who fall outside the proscribed age range.
Community Development Director Jenni Faulkner told the council that United Properties would be seeking city assistance for funding to bridge a "financing gap." The property is located within a Tax Increment Financing (TIF) district, which means that a portion of the property taxes paid on the site would be reimbursed to the developer as an incentive.
"The TIF expires in 2019 so there's not an opportunity to capture a lot of money, but there is enough to fill the gap," Faulkner said.
The council received the petition favorably, with very little discussion.
"I like the direction. The proposal looks good," said Council Member Mary Sherry.
United Properties was founded in 1916, when it was established to manage the real estate assets of the Hamm’s Brewing Company. The company began developing senior cooperatives in 2000, with its first Applewood Pointe location going up in Roseville. At present the company also has locations in Bloomington, Bloomington at Southtown, Bloomington at Valley West, Maple Grove, New Brighton, and Roseville at Langton Lake.