The first phase of the $14 million development by MSP Real Estate of St. Louis Park, Minn., will be completed next fall and includes 88 independent-living units and 75 units of assisted-living and memory-care housing. Construction of the second phase will be determined by the market.

Apartments have private patios or balconies, granite counter tops and laundry facilities in each unit. The development also will include a beauty salon, underground heated parking, an overnight guest suite, fitness center, car wash, library, business center and a community room.

"We always try to push the envelope," said developer Milo Pinkerton. "We always try to add things that exceed market expectations."

Oakbrook Corp., of Madison, will manage the apartments while Heritage Assisted Living, of New Berlin, will manage the assisted-living and memory-care units, Pinkerton said, adding that Heritage Monona will be the seventh senior housing project developed in Wisconsin by MSP Real Estate.

Some apartments and assisted-living units are included in the IRS Section 42 low-income housing program. Those apartment rents start at $755 per month for one bedroom and $850 for two bedrooms. Rents for other apartments start at $875 for one bedroom and $1,110 for two bedrooms.

The development for people age 55 and older includes a commercial kitchen and four dining rooms. Meals will be available for all residents, including those in the apartments.

City tax incremental financing and bond revenue from the Wisconsin Housing and Economic Development Authority will help finance the project.

Heritage Monona is on the former site of the Garden Circle apartments, which became a center of criminal activity before seven of the eight buildings were emptied in 2006. The city bought the land for $6.36 million and issued a request for proposals from developers.

Monona has the oldest population among Dane County communities and senior housing developments like Heritage Monona help residents stay in the community as they age, said city administrator Patrick Marsh.

"There's definitely a need for senior housing in the city of Monona," he said. "There's a need to keep our residents here and giving them the ability to move to these types of facilities is a great benefit."