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File #: [22-0026]    Version: 2 Name:
Type: Discussion Item Status: Passed
File created: 12/1/2021 In control: Town Council
On agenda: 1/12/2022 Final action: 1/12/2022
Title: Consider Authorizing the Town Manager to Execute Option to Ground Lease Agreements with the Developers of the Trinity Court and Jay Street Affordable Housing Development Projects.
Attachments: 1. Draft Staff Presentation, 2. Jay Street and Trinity Court Project Milestones, 3. Jay Street Ground Lease, 4. Trinity Court Ground Lease, 5. Staff Report, 6. Staff Report, 7. Staff Presentation, 8. Council Questions with Staff Response, 9. Emails from the Public, 10. A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN OPTION TO GROUND LEASE AGREEMENT WITH COMMUNITY HOUSING PARTNERS TO CONSTRUCT AND OPERATE AFFORDABLE HOUSING AT THE TRINITY COURT SITE. (2022-01-12/R-5), 11. A RESOLUTION AUTHORIZING THE TOWN MANAGER TO EXECUTE AN OPTION TO GROUND LEASE AGREEMENT WITH TAFT-MILLS GROUP TO CONSTRUCT AND OPERATE AFFORDABLE HOUSING AT THE JAY STREET SITE. (2022-01-12/R-6)
Related files: [19-0372], [19-0933], [20-0346], [21-0570], [21-0898], [21-0921], [22-0249], [22-0248]
title
Consider Authorizing the Town Manager to Execute Option to Ground Lease Agreements with the Developers of the Trinity Court and Jay Street Affordable Housing Development Projects.
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Staff:
Department:
Faith Brodie, Director
Public Housing
Sarah Osmer Vi?as, Director
Affordable Housing and Community Connections
Nate Broman-Fulks, Affordable Housing Manager

Emily Holt, Affordable Housing Development Officer


Overview: These agreements would give the developers of the Trinity Court and Jay Street projects the sole and exclusive option to lease Town land for the construction and operation of affordable housing.


Recommendation(s):
That the Council authorize the Town Manager to enter into option to ground lease agreements with the developers of the Trinity Court (Community Housing Partners) and Jay Street (Taft-Mills Group) affordable housing developments.

Background: Staff updated the Council on the Trinity Court and Jay Street affordable housing development projects on November 17, 2021 and informed Council that both projects plan to pursue a 9% Low Income Housing Tax Credit (LIHTC) award in 2022. Receiving the award would likely eliminate the need for Town subsidy for either project. The demonstration of site control is a requirement of the preliminary LIHTC application, which is due on January 21, 2021.

The Town and its outside legal counsel at Sanford Holshouser Law Group worked with the two development teams - Community Housing Partners for Trinity Court and Taft-Mills Group for Jay Street - to draft option to ground lease agreements that give both developers a sole and exclusive option to lease Town land on which to construct and operate affordable housing. It is anticipated that the projects will need to execute the ground leases as part of the project closing during or after summer 2023.

Authorizing these agreements is a critical step that allows both projects to pursue a key source of financing via the LIHTC application. However, Coun...

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