HomeMy WebLinkAbout1985-09-03 Housing Analysis f
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KG Associates,, Inc.
Economic and Development Consultants
P1 A,NR710 AF D
Box 85
Durham,, New Hampshire ir° - - 1
August 3 , 1985.
Ms Kar'am°a Nelson
Town Planner
Town Hall
North Andover , lass . 01845
Dear Karen :
The Proposal for conversion of Osgood Mill humrown as "Osgood
Research Park" , North Andover , Massachusetts has been developed
by Osgood Mill Associates to include 188 residential dwelling;
units and two small commercial buildings .
The concept has been approached with several factors in mind .
There is presently a large Commercial./Industrial rehalril.itatiarr
project underway at the neighboring site of the former Davis
and I;°n_urbe.r property . There has also been a great "Teal of
commercial/ industrial development at the Route 114 cvnrricln.r .
Although our additiona:a:l. 17 , T1 squuare, feet of caamnmmercira.l..
industrial space could be created at the site under the present
town zoning ordinance , the Osgood Mill Asauciates have determined
that this is not throe best long terse am.se for this downtown site .
However , the financial potential for an increased commercial /
Industrial site must he overcome to justify the residential. use ..
The current guideline , as ;stated by HUD and other ausoca a=r heal
agencies. , is that the owner/developer shall not pay more than
3 , 000 per unit for land costs Currently , the private market
has the unit: costs at $10 ,000 per unit or slightly higher .
However , as we have indicated , the Osgood Mill Associates will
be paying $23 ,000 per unit bused n.pon: their purchase prices
to acquire the building and site The 188 res d rut.ial dwel.l.in
proposal will satisfy this cost factor is ensure the market
price during the conversion process .,
Osgood Mill. Associates have recognized the need for lower cost
residential housing in N rLh Andover , and have recognized ed that
this is the only site in the Town that wi.l. l, allow such housing
to be developed
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It is easy to conclude that most of the new single family houses
being built in the Town of Karr# Andover are out of the financial
reach of Lhe single adult ruler , or the older married couple
mewing from the single family home .
This pro] ecL will provide these buyers and aLher buyeta on the
lower and of EEe financial Seale the ability to purchase housing .
The Osgood Mill wssoeiaLes will require the special permit £eI
only 188 residential dwelling gaits to order to meet the
financial coasLrainLs u£ the present use for the Osgood Research
Park. This request £erLal£ly complies with all aspects of the
Planned District Development @recces and allows the Ie_n of
KorLE Andover to increase a very dimished supply of one aad
Lwo bedroom residential Dwellings aL a much lower price than
presenLIy e=£stn in the housing marker .
Please review these facts for your final dere£mination and
presentation to the #lanning Beard for Lheir approval process .
Sincerely ,
� --
Richard K. Gsattschncidory
u. I
J; f I
RKG Associates, Inc.
Economic and Development Consultants
Box 852
August 23 , 1985
Ms Karen Nelson
Town Planner
Town Hall
North Andover , Mass . 01845,
Dear Karen
The: purpose of this letter is to provide you and the Planning
Board with information ru~:➢.astave to the demographic profile of
North Andover residents chum we believe are prime candidates
to reside in the Osgood Mills when rmehabiliLated .
s the data below suggests , the population in North Andover
is aging at as rapid rate This increased longevity 1s duac.
primarily to improved medical care ,
A g-e
,rnuuP 1 9 a 0 1980 Ghaaan,cTM.
65 + over 1 , 537 2 , 521 64
55 -65 1 ,463 2 ,033 39
45_55 1 , 876 2 , 137 14:
ender 45 1. 1 , 4 13 ,438 1 :
TOTA1, 16 , 204 20 ' 1 Z 4
Over the neat 5-1.0 years the growth rate in the 55 and over
group is expected to continue at s. rapid rate , as the younger,
er
cohorts advance to a now grouping .
We: believe our primary uaaaur:ku3t for the Osgood Mill site will
come from the 55 and older age group , wbicb in North Andover
alone comprises over 4 , 500 people Our secondary market appeal
is expected to come from the 5-55 age group of single households ,,
uanCmmarrria^ds etc . This group exceeds 5 , 000 people and there is
little opportunity for theme to acquire affordable housing using in
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North Andover .
Currently the North Anaovar Housing Authnrity has on Q 2G]
units to satisfy the elderly market . In recognition of this
need , ElaLlel ' s Royal CreSL eSL_tea has oriented it,elf to Ohe
adult market and this group comprises over 7G% u£ the tenancy .
YeL the demand remains strung , as avidarcad by the almosL
nagligible vacancy rate aL Royal crest .
overall , we estimate a Shortfall of400 unite in the $80 , 000 .
$ 120 , 000 purchase range which mould saUsfy the adult marker .
Thank you £or the o2portuniLy Lo present this material .
Sincerely ,
�
Richard K . Gsortschneidar