A developer is offering to pay $100,000 for city land to build housing for seniors and for adults with intellectual and developmental disabilities while maintaining the affordability of the Naperville apartments for a century.
Naperville City Council members could agree to those terms Tuesday if they officially selects Wisconsin-based Gorman and Co. as the developer of six acres of city-owned property at 103rd Street and Route 59.
If the project proceeds, it will address the desires of two groups in the city.
The Naperville Senior Task Force has been pushing since 2014 for the city to increase its supply of affordable housing for older adults and a group of Naperville parents asked the city last year for help in building a residential complex for their adult children with intellectual or developmental disabilities.
The council’s solution was to create an apartment complex in Naperville where both groups could live independently and affordably.
If approved Tuesday, Gorman would start preparing final site designs and pursuing funding for the project.
The property would not be sold until the plans go through the zoning review process and Gorman secures funding, which likely wouldn’t happen until June 2024, according to a memo to the council from Amy Emery, operations manager for the city’s Transportation, Engineering and Development department.
According to the city, Gorman submitted a minimum bid July 5 offering $100,000 for the land and included a 99-year affordability period.
In her memo, Emery said each company that provided a proposal to the city estimated a land purchase bid well below market price or suggested the city donate the land.
While negotiating terms with Gorman, it became clear that a bid amount was likely to direct more money to the desired site amenities and maintain overall affordability, she said.
Beyond the $100,000, the agreement says Gorman would add more to the purchase price if the city agreed to reduce its masonry facade requirements or if funding is secured for the project through Community Development Block grants or the HOME Investment Partnerships Program from the U.S. Department Housing and Urban Development.
Gorman’s initial plan is for 60 apartments — 45 for seniors age 62 and older and 15 for adults age 18 and older with intellectual and developmental disabilities — to help reduce housing gaps identified in Naperville’s 2020 Housing Needs Assessment/Housing Needs report.
Under the proposed agreement, 90% of the 60 units would be available to seniors and individuals with IDD with incomes between 31% to 60% of the Area Median Income.
For one person, that would be between $21,900 and $43,800, according to most recent HUD figures for metro Chicago.
The remaining 10% would be available to those with incomes up to 30% of the Area Median Income, or $21,900 for one person.
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Depending how long it takes to get funding and go through the zoning review process, Gorman could break ground as early as summer 2024 and construction would take about 18 months.