CC - Memo Elm Grove Mobile Home Park Tenant Displacement Options
Elm Grove Commercial and Mobile Home Park
History: Property was purchased in 2015 and financing was put in place which cross
collateralized Elm Grove and Riviera Estates Mobile Home Park, in Eagle. The loan is a 10-year
fixed rate interest which converts to an adjustable loan a?er 10 years. The vacant property at
the south end of the Elm Grove property (Promenade Co?ages Area) is allowed to be carved
out of the collateral held by the bank as we were planning to develop this vacant por?on of the
property. The balance of the property will need to remain opera?ng as-is per the loan
documents and remain as collateral for the loan as long as it is in existence. We have been
working with City Staff to en?tle the property for approximately 5-6 years.
Inventory of homes at the park at this ?me (total of 40 spaces):
15 - Recrea?on Vehicles (these can be moved very easily and economically and there are a
number of RV parks within a 50-mile radius of Elm Grove)
17 - Mobile homes that are older than 1976 (these homes typically need to be retrofi?ed to
meet HUD standards before they can be moved depending on individual jurisdic?ons and are
usually uneconomical and will require costly dump fees to dispose of these homes)
8 – Mobile homes newer than 1976 (these homes can be moved and make economic sense in
most cases)
*in two years the inventory could be different and we are commi?ed to filling any future vacant
spaces during the interim period prior to construc?on of phase 2/mul?-family to RVs so that
when the closing of the park occurs it will be easier to transi?on.
Possible Op?ons to help with the displacement of residents of the Mobile Home
Park (while we have empathy for anyone that has to change their living arrangement, we feel
the RVs are going to be able to find other alterna?ves when the ?me comes that we are ready
to give no?ce to vacate):
1. In two years when the loan is switching from a fixed-rate we could take inventory of
what homes exist and at that ?me we could offer to move (at our cost) any of the RVs or
MHs that are newer than 1976 to a mobile home park and RV park we are building in
Ontario, Oregon or to any MH park we own in Eagle, Twin Falls or Kimberly (pending
there are spaces available in those parks).
2. Instead of giving “90 day no?ces to vacate” (which Idaho statute requires) to all
residents when we are ready to begin construc?on on the phase 2 mul?-family
component then we will give “180 day no?ce to vacate” and will provide assistance in
finding affordable housing and RV park op?ons at that ?me by providing materials and
internet links such as these h?ps://housingidaho.com and h?ps://bcaacha.org/
3. Another possibility is to replace our exis?ng manufactured home community with a new
one. If the City has any surplus property for sale or is open to allowing the development
of a new community within its boundaries, we can construct a suitable manufactured
home community to accommodate the 25 available homes that could poten?ally be
relocated.
4. The City is proposing to condi?on us to build the full width of street improvements for
rd
3 street between Gruber and Badley. We are accustomed to building half width
improvements when we are developing only one side of the proposed street. If the City
would condi?on us to only build a full half width in this area, we could then allocate a
por?on of those dollars to providing financial assistance to the residents of the mobile
home park.
The proposed development involves significant risks, considering the current financing
challenges and uncertain?es in the commercial mortgage market. We need to strike a balance
between servicing the exis?ng debt and transi?oning to the development of the mul?-family
units. This transi?on would entail discon?nuing the current revenue source.
We are hopeful that the city will approve the necessary documents to carve out the phase 1
area (Promenade Co?ages). This will allow us to commence construc?on on that phase,
crea?ng an alterna?ve revenue source for the property. This new revenue stream will assist in
transi?oning the financing for the en?re property and progressing with phase 2 of the mul?-
family development.
While the mul?-family units are not specifically designed to meet "affordable per medium
income standards" or be deed restricted, they are planned to offer smaller 1- and 2-bedroom
op?ons that are rela?vely more affordable. Increasing the overall supply of rental units will
ul?mately contribute to the affordability of the en?re market area.
Sincerely,
Mark Kelly
Elm Grove Mobile Home Park