Best of luck!

Queens Chronicle

After 10 years of struggle, the dream of creating first nonprofit continuing care retirement community in New York City died — for the foreseeable future — in Queens last week.

Skyline Commons, a venture spearheaded by the Margaret Tietz Nursing and Rehabilitation Center, was envisioned in 1999 as a retirement community where aging New York City residents could purchase apartments. While there, they would enjoy similar care to that of a nursing home, while still having the freedom to live in a place they considered there own. Skyline Commons had been slated in 2004 to move into the building vacated by Queens Hospital Center in Jamaica near Union Turnpike.

Last week, however, after taking stock of their sales, the group decided that the retirement community is no longer a viable option, and stopped selling apartments.

Gerald Hart, the CEO of the Tietz Center, said the decision came after this past September saw much of the nation’s economy shredded.   “Everything was moving along as it should, but after that time period we really started to feel the crunch of the economy,” Hart said. “We took a look back and we decided to be conservative and cautious — right now just wasn’t the right time for this project.”

Hart said he’s optimistic the project can still go forward at some point in the future, but while the economy is still in a recession, the group is unable to find enough apartment buyers to what was already an ambitious project. In order to begin construction, retrofitting the hospital building to house apartments, Hart said 70 percent of the proposed units would have to be pre-sold — a number that represents just over 100 apartments. At the end of September, Hart admitted, they were only halfway to their goal, having sold roughly 50 units.

Skyline Commons was scheduled to open in 2009, but construction never started. Hart said the buyers who had already purchased one of the units would receive any money they had used as a down payment, plus interest.

Ultimately, Hart said, the Tietz Center is hopeful that the new administration in Washington, D.C. can work to put some bailout money toward helping healthcare facilities, and turn the nation’s economy around, but until that happens, Skyline Commons will have to wait.  “It’s a great model; this model works and it takes people off Medicaid, which is the biggest expenditure in the New York State budget,” Hart said. “I’m optimistic we can do this again sometime.”

NEW YORK–(BUSINESS WIRE)–The Citi Foundation today announced it is providing funding to local community development organizations in 20 urban communities across the country to support innovative, physical development and rehabilitation projects – known as “place-based initiatives” – that champion the long-term or large scale revitalization of low- and moderate-income communities.

The Citi Foundation is offering the grants through the Citi Foundation Partners in Progress (PIP) Grant Program, an initiative started in 1997 aimed at helping leading community organizations implement physical development or revitalization of underserved areas. This year, the Citi Foundation expanded PIP from New York-based and regionally-based grants to a national program.

Through PIP, the Citi Foundation has awarded local community development organizations grants of $100,000, totaling more than $2 million. The grants will support pre-development costs for construction, rehabilitation and revitalization of affordable housing, commercial corridors, and retail and neighborhood facilities, such as childcare centers and community centers, in low- to moderate-income communities. Of the 21 projects selected, more than half include environmental sustainability as a critical aspect of the initiative and one-third include transit-oriented developments.

Gina Doynow, National Director of North America Community Relations for Citi, said, “Citi is strongly committed to supporting the work of community development organizations, which play an important role in the growth of underserved communities, particularly in this difficult economic environment. That is why the Citi Foundation expanded our PIP grant program nationally to 21 truly ground-breaking revitalization projects we believe will help stabilize and transform urban areas nationwide.”

The Citi Foundation is providing PIP grants to community organizations in: Arlington, Va.; Austin, Tex.; Baltimore; Boston; Brooklyn, N.Y.; Chicago; Dallas; Las Vegas; Long Island, N.Y.; Los Angeles; Miami Beach, Fla.; Miami; Orange, N.J.; Philadelphia; San Diego; Sioux Falls, S.D.; Stamford, Conn.; Sussex County, Del.; and Washington, D.C.

Twenty-one Innovative Place-based Community Development Initiatives

The Citi Foundation selected projects based on their innovation and impact on the community. Grant recipients include:

• Arlington, Va. – The Ethiopian Community Development Council is engaged in the renovation and modernization of a 50,000 square foot, multi-purpose office building which will house their offices as well as a business incubator, classrooms for educational and vocational training programs, a computer lab, conference and meeting facilities, offices for other nonprofit agencies and retail stores.
• Austin – Foundation Communities plans to develop 150 units of affordable, mixed-income green housing near the Austin MetroRail, the city’s first commuter rail line which is slated to open later this year. In addition to the housing units, the plans also include a childcare center, a community space and a pedestrian-friendly retail space. Foundation Communities will use green building methods for the project.
• Baltimore – East Baltimore Development Inc. and its Greenhab Housing Program will provide affordably priced housing for low- to moderate-income families and will incorporate green building standards and energy efficient building materials. Citi Foundation funds will support the renovation of up to 150 row houses in East Baltimore.
• Baltimore – The Reinvestment Fund is engaged in the Preston Place development which will result in 122 Energy Star-certified, affordable homes for sale to low- and moderate-income families in the Oliver neighborhood of East Baltimore.
• Brooklyn, N.Y. – Fifth Avenue Committee, the only non-profit member of the Gowanus Green Partnership, plans to restore and revitalize Public Place, a brownfield site along the Gowanus Canal, with 774 units of affordable housing, community and retail facilities, parking spaces and a public park. Once completed, the area will be a LEED-certified neighborhood, and is expected to become a national model for urban community development.
• Chicago – Lawndale Christian Development Corporation (LCDC) is developing a mixed-use apartment building with 42 units of affordable rental housing and 4,000 square feet of commercial space in the Martin Luther King Historic District of Chicago. LCDC and other community organizations recently formed the MLK40 Task Force, a consortium aimed at developing this historic district, in which Dr. King lived during his Chicago campaign in 1966.
• Dallas – Central Dallas Community Development Corporation plans to transform the historic Cabana Motor Hotel in Dallas into a 200-unit affordable housing facility. Dallas County is currently using the property as the Decker Jail overflow facility.
• Dorchester, Mass. (Greater Boston) – Dorchester Bay Economic Development Corporation, a member of the Fairmount/Indigo Line CDC Collaborative, plans to bring transit equity to the line and create urban villages in the area. The collaborative expects to construct 1,500 new units of housing, 780,000 square feet of commercial real estate space, two green-job centers and a new six-mile greenway of open space along the Fairmount Corridor.
• Las Vegas – Nevada HAND plans to rehabilitate the Sky View Pines Family Apartments into a new, energy-efficient, water-wise, affordable rental housing development for 150 families whose incomes are at or below 60 percent of the area median income.
• Los Angeles – Little Tokyo Service Center Community Development Corporation, in support of its Nikkei Center, plans to develop a five-acre parcel of land in the Little Tokyo neighborhood of Los Angeles. The green Nikkei Center will provide mixed-income housing units for more than 1,000 people.
• Suffolk County, N.Y. (Long Island) – The Community Development Corporation of Long Island plans to acquire and rehabilitate 35 REO properties in targeted low-income Suffolk County, N.Y. neighborhoods through its Reclaim Long Island Homes Program. The organization will use the PIP grant funds to hire a full-time coordinator to manage this program.
• Miami – Carrfour Supportive Housing is underwriting the Verde Gardens Apartments, a complex of 145 units of new LEED-certified, affordable housing for formerly homeless families, an organic produce nursery, and a farmers market retail site on the former Homestead Airforce Base, which closed as a result of Hurricane Andrew.
• Miami Beach – The Miami Beach Community Development Corporation plans to rehabilitate three multi-unit properties in Miami Beach’s CANDO Arts Neighborhood in order to create 140 new affordable rental housing units for low- and moderate-income seniors, artists and other workers.
• Orange, N.J. and West Orange, N.J. – Housing and Neighborhood Development Services (HANDS) is leading the remediation and transformation of the Harvard Printing site, a brownfield on the border of Orange and West Orange, N.J. This development will result in the creation of 220 units of mixed-income housing, a public pedestrian greenway park and 100 workspaces for local artists.
• Philadelphia – Asociación Puertorriqueños en Marcha (APM) is engaged in Philadelphia’s first Transit-Oriented Development project around the Temple University Regional Rail Station, the fourth busiest rail station in the regional rail system with more than 2,000 daily passengers. This project expects to develop 120 new units of green affordable housing and 20,000 square feet of green commercial space in North Philadelphia.
• San Diego – The San Diego Capital Collaborative’s 10th and B Development Project, a mixed-use, mixed-income development, is located next to the YWCA in Downtown San Diego. The development will provide low- to moderate-income families with access to affordable housing, education, jobs, public transportation, social services, and community recreation facilities.
• Sioux Falls, S.D. – The City of Sioux Falls Planning Office is planning to develop a mixed-use, multi-story structure containing 57 units of affordable housing for the elderly, as well as space on the ground floor for retail services in the Pettigrew Heights neighborhood of Sioux Falls, a designated redevelopment zone.
• Somerville, Mass. (Greater Boston) – Somerville Community Corporation is leading a comprehensive community planning collaborative around the Green Line Extension Project in Boston. The initiative will assist 2,000 primarily low- to moderate-income individuals who reside along the Green Line corridor.
• Stamford, Conn. – New Neighborhoods Inc. has developed a Comprehensive Neighborhood Plan for Stamford’s west side to construct a number of mixed-use buildings that will offer greater affordable housing and economic opportunities to residents of this underserved community.
• Sussex County, Del. – Milford Housing Development Corporation (MHDC)’s New Horizons Community Project will ensure the permanent affordability of quality manufactured homes on permanent foundations developed under a Community Land Trust model. This development will enable 50 low-income, first-time homebuyers to purchase Energy-Star efficient, three- to four- bedroom homes.
• Washington, D.C. – MANNA Community Development Corporation plans to build 20 new affordable condominiums for low- to moderate-income families in the Ivy City neighborhood of Washington, D.C. This project is part of the “Home Again Initiative” a plan led by the District’s Deputy Mayor for Planning and Economic Development.

Additional information about Citi Foundation’s PIP Grant Program can be found at http://www.citifoundation.com/citi/foundation/pip_gp.htm

About Citi

Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi’s major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com.

About Citi Foundation

The Citi Foundation is committed to enhancing economic opportunities for underserved individuals and families in the communities where we work throughout the world. Globally, the Citi Foundation is focusing its giving on Microfinance and Microentrepreneurship, which helps individuals become economically self-sufficient; Small and Growing Businesses, leading to economic expansion and job creation; Education, which prepares young people for personal and professional success; Financial Education, which helps individuals make informed financial decisions; and the Environment with a focus on sustainable enterprises that generate jobs and stimulate economic growth while preserving the environment. In the U.S. and Canada, the Citi Foundation supports Community Development programs that help build and revitalize neighborhoods and Education programs that prepare students for college and careers. Additional information can be found at http://www.citigroupfoundation.com/.

Tuscon Citizen

Longtime Miracle Manor resident Bill DeVinney stands near the historic Ghost Ranch Lodge at 801 W. Miracle Mile, which has stood as a fenced-in eyesore awaiting its renovation for the last few years. The plan is to convert it into affordable senior housing.

Pima County supervisors approved $5.3 million in bonds Tuesday for affordable housing and foreclosure prevention programs.

The board voted 5-0 to use revenues from a 2004 voter-approved $10 million bond package, including $623,000 to renovate the historic Ghost Ranch Lodge on West Miracle Mile.

The senior housing facility would be renovated and operated by a private Hartford, Conn., company that specializes in such ventures.

Three buildings at the landmark 8-acre property were destroyed by arson in November 2008. But those buildings were slated for demolition and will not impact plans for the facility, Scott Gillette, an attorney for the developer, assured board members.

The county committed about $475,000 to the lodge last year.

The lodge was opened by Arthur Pack in 1941 as a resort on the outskirts of Tucson.

It featured buildings by renowned Tucson architect Josias Joesler and signs by artist Georgia O’Keeffe.

It fell into disrepair and now sits vacant along what once was a glitzy western entryway to Tucson.

Funding for the lodge project, to cost a total of about $13 million,
will come from the 2004 bonds, private investment and federal grants
for affordable senior housing.

The work will consist of renovating 30 existing units and building 35 new ones. The units will be rentals.

The project is awaiting final federal approval, due at the end of this month.

Supervisors also approved using funds from the $10 million bond for
other affordable housing and foreclosure prevention projects.

• $1.5 million will go to the Pima County Foreclosure Prevention
Program, aimed at helping homeowners avoid foreclosure, and to acquire
foreclosed properties for eventual return to the market as affordable
housing.

• $1.17 million for the Esperanza en Escalante Veterans Housing
Project, 3700 S. Calle Polar. There are 16 units at the location now
and another 35 will be constructed. All will be rentals.

The overall project cost will be funded through the bond money, the
U.S. Department of Veterans Affairs, and the Southern Arizona VA Health
Care System.

• $600,000 in bond funds for 40 affordable housing units at the
Honea Heights Redevelopment Project. The project is on 37 acres in
Marana, south of Sandy Street, between Sanders Road and the Marana
Heritage River Park.

It will include 40 affordable housing units and 54 market-rate homes.

The details of a proposed 100-unit housing development to accompany future upscale retail shopping at Mendota Plaza on Dood Road and Highway 110 remain too vague for the Mendota Heights City Council.

“I think you’re trying to get us to approve something with a third of it ill-defined, and I’m not going to vote for it,” said Council Member Jack Vitelli.

The council and members of the planning commission reviewed developers’ plans for Mendota Plaza one more time before preliminary permits are scheduled to be approved or denied Jan. 20.

The 20-acre proposal encompasses greenway, trails, brick architecture, decorative lighting, fountains, and boulevard-like landscaping to accompany shopping and eventually a daycare and housing.

Staff reviewed a list of council and commission concerns that have been raised through the development process, ranging from traffic patterns to paint colors. For the most part, developers have come through in meeting the city’s desires, but sticking points remain.

Developer Ken Henk of Paster Enterprises described their plan to provide four stories of senior housing with varying levels of services along with drawings of different ways the building could be designed.

However, Mayor John Huber said that there is not enough detail in the information to stand on in the future if the plans were to change.

Adding another dimension to the debate, resident Louise Lentz addressed the council on behalf of Isaiah, a faith-based advocacy group for affordable housing. Lentz said from the faith-based perspective, “It is part of our belief that we are our brother’s keeper” and developing affordable housing on the site is a way to put “legs” on that belief.

She added that correcting a housing gap is important for the area to become economically successful. Affordable housing at Hillside Gables Townhomes in Mendota Heights has a waiting list of 690 families according to the Community Development Agency, pointing to a need for more, Lentz said.

Council members noted that affordable housing likely could not be constructed with the balconies, chimneys and roofscapes they have indicated are necessary for approval, and were not clear on what would qualify as affordable housing. Lentz said that homes up to $215,000 would qualify based on a percentage of the area’s median income set by the Met Council, and rentals between $700-$1,000 a month would be deemed affordable by Metropolitan Council. Standards set by the Community Development Agency would be much lower.

The council seems uninterested in compromising the look of the units, and said they were a bit skittish about a fourth story. Council Member Ultan Duggan described the building as a potential “significant presence on the property” that should be designed with care. “It should be attractive. It should be appealing,” he said.

Another sticking point, or rather a line drawn in the sand, was a third pylon sign on the property. Members of the council adamantly refused to approve a third lofty sign in the sky, and suggested developers swap in a monument style, low-profile sign instead.

Doug Hennes of the planning commission commented on the large gap between the where the council and developers stand on the housing units, but was positive about the ground covered on the rest of the Plaza.

If developers are able to satisfy the council’s concerns at the Jan. 20 meeting to receive preliminary permits, they would be on schedule to break ground in the spring.

If the request is denied, the developers must ask for an extension or wait six months before making another request. An extension already granted by the council expires Feb. 1.

Danielle Cabot can be reached at southwest@lillienews.com or 651-748-7815.

Given the difficult economic and fiscal environment nationally, the Department is requesting that HUD approved Mortgagees exercise caution in underwriting loans under the Section 232 programs for new construction and refinance transactions for assisted living facilities.  For all Assisted Living Project mortgage insurance applications under Section 223(f), Section 232 new construction and substantial rehabilitation, and Section 241(a), will require justification/mitigation if the underwritten debt service coverage ratio (“DSCR”) is less than 1.45.   Moreover,  as was previously discussed with various lenders in June of 2008, for all LEAN mortgage insurance applications involving new construction of Assisted Living units, if the underwritten loan to value is greater than 75%.

The Department would consider, for example, a mitigating factor to be the inclusion of less expensive independent living units in the project or the presence of facility residents that are being provided with state or federal rental assistance subsidies. The Department’s review of mitigating factors will focus on any project specific attributes that result in limiting project market risk or in reducing project financial risk. The Department will be reasonable and flexible in determining where justifiable circumstances or mitigating factors exist.

Additional Guidance on the Use of Project Capitalization Rates:
The Department would like to provide general guidance regarding the usage of capitalization rates for Assisted Living projects. HUD believes that the capitalization rate should be a true reflection of conditions in the marketplace and the specific risks associated with a project.  The Department is particularly concerned with the use (in some cases) of an approximate “risk free” capitalization rate for Assisted Living projects.  The Department is not mandating a minimum capitalization rate. However, HUD may require justification/mitigation on Assisted Living projects if the capitalization rate used by the appraiser appears not to fully account for specific project and market related risks. This capitalization rate issue should be fully discussed in the Lender Narrative of the LEAN Application.

The Department believes that, in most but not all economic environments, the following debt service constant formula (Debt Service Constant + FHA MIP) multiplied by 1.25 would reflect reasonable guidance for the “minimum” capitalization rate for a proposed project. HUD would expect that the market realities of each project would dictate the capitalization rate to be used, which may be higher than the minimum formula. HUD does not wish to impose requirements for determining the capitalization rate and will defer to the USPAP appraisal standards to provide the definitive guidance on this issue. The Department’s guidance on capitalization rates is not mandatory and the Department understands that this guidance may not be as helpful as a guide when market and economic conditions are either highly optimistic or overly conservative and/or when the interest rate environment reflects unusually low or high project interest rates.

Example for calculating Cap Rate: 7% fixed interest rate plus the MIP of 50 basis points. {.0746+.50bp MIP=.0796*1.25=.0995 or 9.95%}. In this example, the minimum capitalization rate “guidance” is 9.95.

The revised guidance relative to the debt service coverage ratio, loan to value, and capitalization rates for assisted living projects shall apply to any future application for mortgage insurance where an FHA Project Number is issued after February 6, 2009. Alternatively, if the FHA number has not been issued but a project appraisal is underway, FHA will accept the lower DSCR of 1.3 for refinancing and 1.35 for new construction if an appraisal engagement letter was executed prior to February 6, 2009, and if appraisals using the lower DSCRs are finalized and provided to HUD prior to April 6, 2009.  On projects that do not meet this revised guidance (where the FHA Project Number was issued on or prior to February 6, 2009) the Lender should provide a notification in the Check Transmittal Letter and Lender Narrative of the mortgage insurance application that provides for the discussion of the appraisal lender modifications.

Please note that the previous guidance on loan to value and debt service coverage on Section 232/223(f)’s for Skilled Nursing and Independent Living Facilities have not been revised.

Underwriting of “Payee Mix” on LEAN Section 232 Loans. If the project being underwritten is an existing project (with no new construction of Skilled Nursing Facility (SNF) beds proposed and/or no substantial rehabilitation of SNF beds whereby the payee mix differs from the project’s payee mix history), the existing MAP Guide language will be applied: The income estimate should be based on the percentage of Medicaid/Medicare beds shown on the last 3 years of financial statements. If the project being underwritten proposes new construction of SNF beds or substantial rehabilitation of SNF beds whereby a payee mix than differs from the project’s  payee mix history, the following three requirements will apply:
1.  The percentage of Medicare beds (of the total SNF beds in the project) used in the underwriting must not exceed 10% or the average percentage demonstrated in the market, defined as the average of no less than 5 competing facilities in the primary and secondary market.

2.  The percentage of Private Pay beds used in the underwriting must not exceed the average percentage demonstrated in the market, defined as the average of no less than 5 competing facilities in the primary and secondary market.

3.  The combined percentage of Medicare and Private Pay beds (of the total SNF beds in the project) underwritten must not exceed 30%.

Waivers to the above will be reviewed on a case by case basis.  Waiver requests should be submitted as early in the mortgage insurance application process as possible, however will not officially approve of a waiver prior to the submission of either a Pre-Application or Firm Application for mortgage insurance.  We recommend that waiver requests include the following at a minimum:
A comprehensive discussion of the operator experience with Medicare patients and what factors will be employed by the operator to insure that the business objectives will be successful

Stress tests that clearly demonstrate what impact reduced payee mix levels/percentages would have on the operator’s capability to meet required project lease and/or mortgage payments.

The market analyst must interview all area hospitals or referring entities and discuss any issues that would facilitate or hinder their recommendation to refer Medicare patients from hospitals to nursing homes providing specialized services.

The Lender should provide information on any legal issues and any additional information that may be required to justify the waiver.

Revised Project Capital Needs Assessment (PCNA) Guidelines for Section 223(a)(7) Projects
We have revised the guidelines we presented at the December conference in Seattle.  Please see the below revised guidance:

A PCNA complying with the 223f LEAN Guidelines is required on any 223(a)(7) where either of the following is the case at the time of the Section 223(a)(7) application is submitted to HUD):
1.  A term extension is being requested.  HUD will consider waivers on a case by case basis where justified. The lender should request the waiver in the mortgage insurance application cover letter and in the Lender narrative.

2.  At least 10 years of the existing FHA Insured loan’s amortization period have passed and a PCNA has not been submitted to HUD in the previous 10 years.
If a PCNA is submitted with the Section 223a7 application, the Regulatory Agreement on the new Section 223(a)(7) loan will contain a requirement that a new PCNA will not be required until 10 years after the date of closing of the 223(a)(7) mortgage insurance application.  Moreover, the lender will not be required to inspect the property.
If a PCNA is not submitted with the Section 223a7 application, the Regulatory Agreement on the new

Section 223(a)(7) loan will contain a requirement that a new PCNA will be required at the earlier of: 10 years after the previous PCNA was submitted to HUD or 10 years after the existing FHA Insured loan’s amortization period have passed.   Moreover, the lender will be required to inspect the property.

If repairs are proposed in conjunction with the Section 223(a)(7) application and a PCNA is not required, a cost certification (HUD-2205A) will be required to support the actual cost of the repairs.  Only Line 2 and the attached Schedule A need to be completed.

LEAN 232 Pipeline as of February 6th, 2009

FHA # Requests – Purchase/Refinance – 195
# Requests – New Construction – 19
Applications In – Purchase/Refinance – 34
Applications In – New Construction – 5

The plans have 750 units on 30 acres, which would be built in phases.  Contact me for the details @ 503.502.0706.

Courier Press

Plans for Majestic Place, which would bring new businesses and apartments to Evansville’s West Side, likely will change in response to the complaints of residents who live near the proposed development.

Representatives of Majestic Place LLC met earlier this week with opponents to discuss their plans to rezone roughly 220 acres northwest of the University of Southern Indiana to allow for development of businesses and apartments there.

Gene Pfeiffer, the owner of the land, said the meeting lasted almost three hours and that suggested changes written down by his attorney filled nearly four pages of paper.

Some of the most common concerns had to do with the intersection of the West Lloyd Expressway and University Drive and the types of businesses that might occupy Majestic Place, he said.

“I don’t think we have ruled out anything that was discussed,” Pfeiffer said. “Some of the things are not reasonable, but there will be changes, I’m pretty sure.”

According to plans, about 110 acres at Majestic Place would be occupied by businesses. Fifty acres would go to student housing and another 50 to an assisted-living home.

Pfeiffer’s land is zoned for agriculture. That designation will have to change before the project proceeds.

The Area Plan Commission recommended the rezonings in November and the Vanderburgh County Commissioners were to vote on them Tuesday. But to give the developers and opponents time to reach a compromise, the commissioners agreed to postpone their decision.

Pfeiffer said it’s too early to identify any specific changes that may come out of the talks. The cost of the various proposals must be weighed to see which are practicable.

He also was unsure when Majestic Place would be put to a formal vote again. Any modifications will have to be submitted to the plan commission, which once again would have an opportunity to recommend them to the commissioners.

One of the residents’ primary concerns is the intersection of the West Lloyd Expressway and University Drive. It is already busy from being the route many students take to the university campus.

The traffic will increase once the parkway is extended to Diamond Avenue, a project scheduled to be completed by 2012 or 2013. Even further out, the road will connect with Interstate 64.

To prevent vehicles from backing up on the Lloyd Expressway, the right of way at the intersection was given to cars coming from the east and turning left onto University Drive. The arrangement has made turns from other directions difficult and dangerous.

The intersection is the chief concern of H. Ray Hoops, USI president, who otherwise declined to comment on Majestic Place. It is likewise in the sights of the Westside Improvement Association, which is opposed to some of the plans.

Fred Padget, a member of the association’s land-use committee, said he would like a solution that avoids placing stoplights on University Drive. He suggested building a frontage road to allow traffic to get to Majestic Place.

“We made lots of mistakes on Highway 41 and the Lloyd Expressway,” he said. “Let’s not repeat that.”

Pfeiffer said the intersection troubles would exist with or without Majestic Place. The responsibility of making improvements falls to the state, he said.

Still, he recognizes developers will have to find a way to ease the flow of traffic going to and from Majestic Place.

The residents also worry about the types of businesses that may locate in Majestic Place. Under the current proposal, the land for businesses is to be zoned “C4,” one of the most permissive designations under county regulations.

Critics would prefer the zoning be lowered to “C2,” noting that is the designation for the site of the Target shopping center on the East Side.

“It is one of the most aesthetically pleasing developments in Vanderburgh County,” said Michael Lockard, a member of the Westside Improvement Association.

He and others also want certain establishments banned from Majestic Place. They include fraternities, sororities, liquor stores, tattoo parlors and strip clubs.

Les Shively, an attorney representing the developers, said the developers had agreed to ban many of them before the meeting this week.

“Whenever you do a development, you try to make it a profitable venture,” he said. “C4 could give the developer more options.”

Maintaining the appearance of the area is important to many.

Steve Anslinger, who lives near the university on Mels Drive, said he has long enjoyed a view of a nearby lake and he was worried the presence of new businesses and apartments would ruin it.

“We thought we were land locked,” he said. “But you know it’s Vanderburgh County.”

Pfeiffer said he is dismayed by assertions that he would do anything to detract from the beauty of the area.

Over the years, he has spent much time and money planting trees and improving the lake, he said.