23 - Laserfiche WebLink

THE CITY OF _ _ 23 CITY COUNCIL AGENDA REPORT pL EASANTON. June 16, 2015 Assistant City Manager TITLE: CONSIDER A REQUEST FROM MIDPEN HOUSING FOR AN ADDITIONAL FINANCIAL APPROPRIATION FOR THE DEVELOPMENT OF KOTTINGER GARDENS AFFORDABLE SENIOR HOUSING DEVELOPMENT (PUD-101) TO BE LOCATED ON KOTTINGER DRIVE SUMMARY On November 12, 2013, the City Council approved a Disposition, Development and Loan Agreement (DDA) with MidPen Housing that provides in part, for a $10 million loan from the City's Lower Income Housing Fund for the development of the Kottinger Gardens affordable senior housing project which was approved by the City Council with PUD-101 in June 2014. The PUD approved the development of a 185 unit project in a configuration of single story cottage units, and two and three story multi-story buildings with parking, significant open spaces, and community rooms to be built on the Kottinger Place (240 Kottinger Drive) and Pleasanton Gardens (251 Kottinger Drive) sites. At the time of the DDA, MidPen estimated that the $10 million appropriation, (which through the DDA was converted to a loan) would be adequate to assure the project's ability to obtain the additional financing needed to assure project construction. However, since that time, MidPen has indicated that the financing environment has changed and therefore, it is requesting that the DDA loan amount be increased from $10 million to $13,750,000. Staff has met with MidPen regarding this matter and this report is intended to provide the information necessary for the City Council to make a decision regarding the increased appropriation/loan. If the City Council approves the additional appropriation, the appropriate action would be to include the attached resolution (Attachment 1) amending the DDA and authorizing the additional loan amount. RECOMMENDATION Approve the attached resolution approving a $3,750,000 appropriation from the Lower Income Housing Fund (Fund 271900) and approving an amendment to the Disposition, Development and Loan Agreement dated November 5, 2015 that increases the existing loan amount from $10 million to $13,750,000. FINANCIAL STATEMENT Total cost for developing and constructing the new development is estimated at $68.8 million which is an increase from the 2013 estimate of $61.6 million. Project funding will come from a number of sources including 9% tax credit equity, a conventional permanent loan, HOME loan and a financial contribution from the City. The City Council previously approved an appropriation of$10 million. The Lower Income Housing Fund's current balance is approximately $16 million.