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August 4, 2015

Important Update on Joy Junction Construction

From: Jeremy Reynalds, Ph.D.
Founder and CEO
Joy Junction Inc.

Dear Friend,

When the homeless come to Joy Junction, they are looking for hope — hope that they will find a way out of their troubles and a path to a better future.

In order to offer a better future for those who come seeking it, Joy Junction has to renovate and expand. We want to offer additional hope by being better able to meet the needs of the homeless in our community.

We’ve been working steadily toward that goal for a while now behind the scenes, and while it’s taken longer than we originally anticipated we are making significant progress.

So here’s an update on our “Together We Can” construction project and campaign.

The unanticipated and disappointing delay of our construction last spring has resulted in some significant and unexpected exciting benefits.

Joy Junction has been able to acquire a number of existing modular units from a benefactor in Aurora, Colorado. They can easily be adapted for use in the construction of an apartment project and the first phase dormitory/office project.

These units will generate approximately $250,000 of owner equity that will enhance the collateral of Joy Junction with its chosen lenders.

Additionally, the provision of these modulars will reduce the overall construction costs for both projects, making each project more attractive to the lenders due to a lower loan to value ratio.

Joy Junction has found an excellent site, in the City of Albuquerque, for its transitional housing/apartment project which is on San Mateo Blvd, just south of Zuni.

Joy Junction Construction Update

This location is ideal for the use intended, and the required R-3 zoning is in place for a proposed muti-unit apartment project.

Since the R-3 zoning exists, no public process is required prior to the application for a building permit. Joy Junction has entered into a purchase contract with the property owner which is subject to a lender-selected appraisal and approved financing.

This project will contain a small number of two-bedroom/two bathroom units (1,060 SF heated area) and a number of one-bedroom/one bathroom units (610 SF heated area).

Joy Junction will use a set number of these apartment units for qualified graduates of its existing program. It will lease the remainder of these units to other local housing programs sponsored by local governments.

Joy Junction has redesigned its Phase One Dormitory project to incorporate the modular units. This redesigned project will provide a number of single occupancy rooms which have their own bathroom. Selected rooms can be connected with adjoining doors to accommodate family occupants.

This project will also provide new staff offices, laundry facilities on each floor, a large storage area on each floor and a common community area for each floor.

Joy Junction will construct these two projects under a construction management contract format. The construction manager/contractor of record and another financially strong entity will provide a financial guarantee for the “All In” cost of construction for both projects at a “Not to Exceed” maximum price. This removes substantial risk from Joy Junction and provides additional security for the chosen lender(s).

Although the positive developments referenced above will necessitate some redesign of these two facilities, the cost of this additional architectural and engineering is incidental to the advantages procured. We expect the dormitory/office project to commence at Joy Junction in late October, and the apartment project on San Mateo to break ground in December.

This does not change any of our long-range objectives, which include a Vocational Training Center, Women’s Center, Daycare/Preschool and more. However, we will not start any of these projects without being sure we can do so responsibly.

Joy Junction will continue to prayerfully move forward with our modified construction project.

Thanks again for your prayers and support. You, and thousands of other households in metro Albuquerque are essential to our ability to operate and serve the needs of our community. We couldn’t continue without you.

Please click below for floor plans of the new units.

New Unit Site Plan | 1st Floor of Dorm | 2nd Floor of Dorm

Keep visiting our site for updates.

 

 

 

 

 

 

 

 

 

Jeremy Reynalds, Ph.D.
Founder and CEO
Joy Junction Inc.