Charlotte City Council
Housing and Neighborhood Development Committee
Summary Meeting Minutes
July 16, 2007
COMMITTEE AGENDA TOPICS
I.
Double Oaks Redevelopment Proposal
COMMITTEE INFORMATION
Council Members Present:
Susan Burgess, Anthony Foxx and Pat Mumford
Council Members Absent:
Michael Barnes and Don Lochman
Staff Resource:
Julie Burch, Assistant City Manager
Staff:
Others:
Curt Walton, City Manager
Stanley Watkins, Neighborhood Development
Richard Woodcock, Neighborhood Development
Debra Campbell, Planning Department
Tom Flynn, Economic Development
A. C. Shull, Economic Development
Scott Greer, City Finance
Randy Harrington, City Finance
Pat Garrett, The Housing Partnership
Lee Cochran, The Housing Partnership
David Howard, The Housing Partnership
Meeting Duration: 7:42 a.m. – 8:50 a.m.
ATTACHMENTS
Agenda Packet – July 16, 2007
Housing and Neighborhood Development Committee
Meeting Summary for July 16, 2007
Page 2
DISCUSSION HIGHLIGHTS
Double Oaks Redevelopment Proposal
Pat Garrett, President of The Housing Partnership, provided an overview of the proposed Double
Oaks redevelopment proposal and noted that the proposed redevelopment is an excellent opportunity
to provide work force housing in close proximity to Uptown Charlotte. Ms. Garrett explained that
two-thirds of the existing 576 apartments are occupied and The Housing Partnership will provide
relocation assistance to all existing residents. She informed the Committee that the redevelopment
proposes a mixed use and mixed income development on a 98 acre site, which will include market-rate
and affordable apartments, market-rate, for-sale single family homes, town homes and condominiums,
noting that 75 of the total 300 affordable rental units will be available for those at 28% to 30% of
AMI. Ms. Garrett stated that the project is projected to cost $58 million and generate over $120
million in development and will be phased over a 10-year period.
Committee member Foxx asked about the status of the relocation program. Pat Garrett responded
that The Housing Partnership has received three bids on providing the relocation assessment. The
company that was selected has assessed the qualifications of all but 20 of the existing families in the
development and has identified vacancies in various area apartment properties that would be suitable
for relocation of the existing tenants. She further explained that qualifying tenants would receive
subsidized assistance for 42 to 60 months. Ms. Garrett noted that relocation efforts would be
spread throughout the city, in order to avoid concentrations. Committee member Burgess asked if
the existing tenants will be given priority for moving back once the area has been redeveloped? Pat
Garrett answered that existing tenants can be notified of availability but cannot be given priority due
to tax credits being part of the financing.
Stanley Watkins presented revised information on the developer’s financial proposal and proposed
City financing options. Mr. Watkins explained that the amount of financial assistance requested of
the City has decreased from $26.7 million to $25,055,800, in the form of grants ($10,055,800),
loans and loan guarantees ($15,000,000). Mr. Watkins explained that a Section 108 Loan guarantee
in the amount of $10 million is requested for land acquisition and will be backed by local CDBG funds.
He added that $5 million from the Housing Trust Fund (HTF) set aside is requested for the
development of affordable housing. Committee member Mumford asked if CDBG funds will be set
aside for possible use to pay back the Section 108 Loan, in case of default? Mr. Watkins responded
that the City is not required to set aside funds and The Housing Partnership will primarily be
responsible for repayment of the loans. He added that in case of default, funds from revitalization
efforts or from financial partners could be used for repayment. Committee member Burgess asked if
the Housing Trust Fund Board has approved the use of HTF funds? Mr. Watkins answered that the
HTF Board has not given approval and added that the funds slated will come from future 2008 and
2010 HTF bonds. He added that the 300 affordable units will be built over a span of three to four
years, which will allow money to be allocated from future bond years. Mr. Mumford expressed
concern that bonds are risky and asked what will happen if future 2008 or 2010 bonds are not
approved? Pat Garrett answered that the land would be reserved but replacement of the 300
Housing and Neighborhood Development Committee
Meeting Summary for July 16, 2007
Page 3
affordable units would be delayed, unless another form of payment is found. She added that
development of the market rate units would continue. Mr. Mumford questioned what is being
leveraged in terms of affordable units. Lee Cochran of The Housing Partnership responded that the
300 affordable units will cost $32 million in total investment.
Stanley Watkins explained that grants requested include $6 million for infrastructure, $500,000 for
relocation assistance, and either $3.5 million in Synthetic Tax Increment Finance (TIF) or a one time
payment of $2.1 million to help offset debt service for the Section 108 loan. Mr. Watkins noted that
$3.4 million in unprogrammed funds for the expansion of Craighead Road is a possible source for the
one time $2.1 million payment and the Capital Debt Capacity is a potential source of funding for
infrastructure. The City Manager, Curt Walton stated that the $3.4 million previously appropriated
for the Craighead Expansion should not be considered as an available funding source because a site
for the light vehicle maintenance facility has not been found. Committee member Foxx requested
further explanation on the options set forth with use of the Capital Debt Capacity to fund
infrastructure. Curt Walton explained that there may be a better source of funding than use of the
$15.7 million, which has been earmarked for other projects, such as the Council approved study for
City Boulevard and that other plans have come forward recently, such as Eastland Mall, Bryant Park
and University City. Mr. Walton explained that it is an issue to take a budget request out of
sequence but, should City Council decide to do that with the Double Oaks redevelopment proposal, the
next year’s bond package can be adjusted.
Curt Walton suggested use of the 2006 and 2008 Housing Bonds in place of a Synthetic TIF and to
fund infrastructure, as opposed to using other multiple sources. Mr. Walton explained that, if used,
there would be approximately $5 million left over from the 2008 Housing Bonds to use for other
affordable housing priorities. Mr. Foxx questioned how the Housing Trust Fund Board may react to
use of the Housing Bonds for Double Oaks? Stanley Watkins responded that the option has not been
presented to the HTF Board. He added that if funds are reallocated, the 2008 Housing Bond may be
smaller than in past years and the infrastructure bonds may be higher. Mr. Mumford stated that if
$15 million as opposed to $5 million of Trust Fund dollars is allocated, it changes the ratio/leveraging
per unit for the housing. Mr. Mumford questioned whether the proposed funding is enough of an
investment to ensure success of the proposed redevelopment of Double Oaks. Stanley Watkins
likened the redevelopment to a HOPE VI project and noted that other existing and proposed
development in the area, in addition to this proposal, will result in a major impact on the area and
ensure success. Tom Flynn of Economic Development stated that the Double Oaks site scored high
when the sustainability index was run and noted that there is other development proposed along the
Statesville Road corridor. Mr. Flynn added that the Double Oaks redevelopment is viewed as a major
catalyst project along the corridor that fits in with the broader corridor goals of Economic
Development.
Mr. Foxx stated that the Council should understand the implications of using the Housing Bonds for
the Double Oaks Redevelopment project. Ms. Burgess suggested retaining use of the Synthetic TIF.
Mr. Mumford cautioned against bundling funding for housing and infrastructure from the Housing
Trust Fund, as it could result in HTF funds being used in ways other than they were intended. Mr.
Foxx stated that he supports the TIF but is unsure of how to fund the infrastructure component.
Housing and Neighborhood Development Committee
Meeting Summary for July 16, 2007
Page 4
Stanley Watkins suggested the Committee approve the concept and direct the City Manager to move
forward and bring back options for funding at a later date. Mr. Foxx suggested preliminary
reservation of $4 million from Debt Capacity for use in this project. Mr. Mumford suggested sending
to Council a recommendation that this is a priority area and the bonds in 2008 and 2010 will be
prioritized to support this project.
Action: With a motion by Foxx and seconded by Mumford the Committee voted unanimously to:
A. Approve the Double Oaks Redevelopment Concept as a priority;
B. Approve the proposed Financial Strategy, excluding the Infrastructure proposal
and;
C. Direct the City Manager to include Infrastructure Funding as part of the FY09
Capital Budget, excluding consideration of approved Neighborhood Improvement
projects.
Members present: Burgess, Foxx and Mumford
Summer Schedule:
Committee member Burgess asked the Committee members to provide to staff their dates of
availability during the month of August.
The meeting was adjourned at 8:50 a.m.
City Council
Housing and Neighborhood Development Committee Meeting
Monday, July 16, 2007 – 7:30 a.m.
Charlotte-Mecklenburg Government Center
Conference Rooms CH-14
Committee Members:
Susan Burgess, Chair
Anthony Foxx, Vice-Chair
Michael Barnes
Don Lochman
Pat Mumford
Staff Resource:
Julie Burch, Assistant City Manager
____ ___
AGENDA
I.
Double Oaks Feasibility Study
(Attachment A)
II.
Summer Schedule
Next Meeting – July 23, 2007
August – No Meetings Scheduled
_________________________________________________________
Distribution:
Mayor/Council
Curt Walton, City Manager
City Leadership Team
Corporate Communications
Debra Campbell – Planning Department
Anna Schleunes- City Attorney’s Office
Saskia Thompson- Manager’s Office
CDC Executive Directors
Housing Trust Fund Advisory Board
Neighborhood Leaders
Budget Office
Ruffin Hall
Phyllis Heath
Lisa Schumacher
Ann White
Phil Cowherd
Charlotte Housing Authority
Charles Woodyard
Troy White
Charlotte-Mecklenburg Housing Partnership
Pat Garrett
Charlotte-Mecklenburg Police Department
Chief Darrel Stephens
Gerald Sennett
Economic Development Office
Tom Flynn
A.C. Shull
Community Relations
Willie Ratchford
Ledger Morrissette
Neighborhood Development
Stanley Watkins
Richard Woodcock
Stan Wilson
Stephanie Small
Walter Abernethy
Pat Mason
Attachment A
Double Oaks Redevelopment Proposal
Housing and Neighborhood Development Committee
July 16, 2007
Committee Request:
Approve Double Oaks Redevelopment Concept and Financing Plan.
Policy Framework:
• City’s Mixed Housing Development Policy adopted by City Council on September 24,
2003.
• The City’s FY2008 Consolidated Plan was approved by City Council on May 29, 2007. The
Plan identified the need for affordable, safe and decent housing for low and moderateincome families. The Plan reaffirmed the three basic goals of the City’s Housing Policy -
Preserve the existing housing stock, Expand the supply of affordable housing, and
Support family self-sufficiency initiatives. The plan included undertaking a feasibility
analysis of the Double Oaks Apartments.
Project Description:
• On April 9, 2007, the City Council approved the Housing Partnership’s request to work
with City staff to develop a financing plan for the redevelopment of the Double Oaks
Apartments.
• The Double Oaks Redevelopment project is a mixed income and mixed use development
on 98 acres of land (70 acres owned by Double Oaks Apartments, 10.5 acres owned by
the Housing Partnership, 16.5 acres owned by Mecklenburg County and 1.28 acres
owned by the City) along the Statesville Avenue Corridor. The project is roughly
bounded by Statesville Avenue, Anita Stroud Park, Interstate 77 and LaSalle Street.
o
o
Double Oaks Today:
-
The apartments were built in 1949 on 70 acres.
-
Include 576 units in 165 single story barracks style buildings.
-
The units rent for $300 to $450 per month.
-
Two-thirds of the units are occupied.
-
The property is zoned R-22MF, which permits 22 units per acre.
Redevelopment Proposal – The redevelopment includes 940 residential units and
approximately 108,000 square feet of non-residential development. Elements
include:
- 300 affordable apartments
- 120 market rate apartments
- 308 market rate single family/town homes
- 212 condominiums
- 108,000 square feet of commercial development focusing on retail, office and
services.
Attachment A
o
Project Financing – The $120 million redevelopment project will require
City investments of $25,055,800 million (revised) in loans and grants.
The uses, type, amount and sources of those funds are as follows:
City Assistance
Type
Amount
Section 108 Loan Guarantee
for land acquisition
Loan
$10,000,000
Federal loan
back by local
CDBG funds
Housing Trust Fund Set
Aside for rental housing
Loan
$ 5,000,000
Future Housing
Bonds
Sub-Total Loans
Source
$15,000,000
Synthetic Tax Increment
Financing for Section 108
Debt Service*
Grant
$ 3,500,000
Future
development
tax revenue
Infrastructure for roads,
sidewalks, curb & gutter,
street amenities, etc.
Grant
$ 6,000,000
Capital Debt
Capacity
($15.7 million)
Relocation Assistance for
current residents
Grant
$
500,000
CDBG Funds
Land Donation (1.3 acres)
Grant
$
55,800
Sub-Total Grants
$10,055,800
Total
$25,055,800
City Asset
* - An alternative to the Synthetic Tax Increment Financing is a one
time payment of $2.1 million for debt service. Source of the funds
is unprogrammed capital funds (Craighead Site Acquisition $3.4
million). Total grant funds will be reduced by $1.4 million.
A list of competing projects for the sources of funds is provided in the attached followup report.
•
City Council Decision Schedule
Below are some of the major decision points that require City Council involvement in
moving forward on this project:
Year
2007
Activity
Approve Concept and Financing Plan (July)
Approve Section 108 Loan Application (August)
Approve Synthetic TIF Framework or Alternative
Debt Service Funding (September)
Attachment A
Year
2008
Activity
Approve CDBG Grant
Approve Land Transfer)
Approve Infrastructure Grant
Approve Housing Bonds Set Aside
Site Rezoning
Next Steps
• To ensure that the Double Oaks Apartments are secured for this project, the
Housing Partnership acquired a purchase option on the property. The Housing
Partnership has requested that City Council formally commit to the project. After
that commitment, the Housing Partnership would exercise its option and purchase
the Double Oaks property. The Housing Partnership needs to acquire the property
before August 1, 2007.
Attachments:
Double Oaks Redevelopment Follow-Up Report
Double Oaks Redevelopment Slide Show
Attachment A
Double Oaks Redevelopment Plan
Follow-Up Report
July 11, 2007
At the July 9, 2007 Housing and Neighborhood Development Committee meeting, City staff was
asked to follow up on several questions pertaining to the Double Oaks Redevelopment project.
Q1. Provide greater specificity regarding 1) the sources of funds for the Synthetic Tax
Increment Financing Alternative and Infrastructure Grants for the project; and 2) identify
competing projects for those sources of funds.
Below is a summary of the financing requested for the project, recommendations on sources of
funding and identification of competing projects for the Synthetic Tax Increment Financing
Alternative and Infrastructure Grant funding:
Financing
1. Section 108 Loan
Guarantee - $10 million
requested for land
acquisition.
2. Housing Trust Fund Set
Aside - $5 million requested
for affordable housing
development.
3. Synthetic Tax Increment
Financing (TIF) - $3.5
million 1 grant to help offset
debt service for the Section
108 loan.
An alternative is a one time
payment of $2.1 million to
meet the City’s debt service
obligation.
4. Infrastructure Grant - $6
million 2 infrastructure grant
is requested.
5. Relocation Grant $500,000 grant to assist in
relocation expenses.
6. Land Grant - Donate 1.28
acres to the redevelopment.
Estimated land value is
$55,800.
Sources
Federal loan which is backed by the
City’s CDBG allocation. In case of
default, the City’s allocation to
revitalization neighborhoods will be
affected.
Voter approved General Obligation
Bonds in 2008 and 2010.
Competing Projects
None Known
Not Applicable
Incremental taxes from the Double
Oaks Redevelopment will support the
debt service for the Section 108 loan.
Not Applicable
The suggested source of funds for the
alternative is the City’s
Unprogrammed Capital Funds
(Craighead Site Acquisition - $3.4
million).
The suggested source of funds is the
estimated $15.7 million in City debt
capacity.
Community Development Block
Grant
See Attached List
Existing City Asset
1
See Attached List
None Known
None Known
The original request for $6.7 million in Synthetic Tax Increment Financing (TIF) was reduced to $3.5
million to adhere to the City’s practice of limiting TIF Districts to 10 years. Assumes a 90% return in tax
increment between 2011 and 2020. Overall funding is $25 million - $15 million in loans & 10 million in
grants. The Synthetic TIF Alternative reduces the total grants to $8.6 million.
2
The original request of $4.5 million was increased to $6 million, in order to offset the reduction in the
Synthetic TIF debt service.
1
Attachment A
Q2. What is the minimum action needed by City Council to move this project forwarded?
The Charlotte-Mecklenburg Housing Partnership has contacted their lender and will provide a
response.
Q3. Can we reduce the Synthetic Tax Increment Financing increment to less than 90%?
A review of the cash flow needs of the project over time indicates a need for the 90% tax
increment. The Synthetic Tax Increment Finance length of time was reduced from 17 years to 10
years to conform to the City’s current practice.
Attachment: FY2008 – FY2012 Unfunded Capital Investment Plan
2
Double Oaks Redevelopment
Presentation to City Council
Housing & Neighborhood Development Committee
July 16, 2007
Double
Oaks
Area Map
Site is 1.5 miles from Trade and Tryon
Double Oaks Today
Master Plan
Master Plan Summary
„
Proposed 98-acre Redevelopment plan
„
$120 million development over 10-year period
„
Components
„
Residential Development – 940 units
„
„
„
„
„
120
300
308
212
market rate apartments
affordable apartments
market rate single family/townhouses
condominiums
108,000 sq. ft of Non-Residential Development
„
„
„
Live/work
Retail
Services
City Financial Participation –
Financial Proposal
City Assistance
Type
Amount
Section 108 Loan Guarantee
Loan
$10,000,000
Federal loan back by local
CDBG funds
Housing Trust Fund Set Aside
Loan
$ 5,000,000
Future Housing Trust
Bonds
Sub-Total Loans
Source
$15,000,000
Synthetic Tax Increment Financing for
Section 108 debt service*
Grant
$ 3,500,000*
Future development tax
revenue
Infrastructure
Grant
$ 6,000,000
Capital Debt Capacity $15.7 million
Relocation Assistance
Grant
$
500,000
CDBG Funds
Land Donation (1.3 acres)
Grant
$
55,800
Sub-Total Grants
$10,055,800
Grand Total
$25,055,800
City Asset
* - An alternative to the Synthetic TIF is one-time payment of $2.1 million. Source
is Unprogrammed Capital Funds (Craighead Site Acquisition - $3.4 million
City Financial Participation –
Loans
Loan #1 – $10 million Section 108 Loan Guarantee
„
Source: Federal loan backed by local CDBG funding
„
Cost to the City: $0*
„
Benefits: Decreases cost of project to City
*
Loan #2 - $5 million Housing Trust Fund Set-aside
„
Source: Housing Trust Fund (Future Bond Issuances)
„
Cost to the City: $5 million
„
Benefits: 300 units of affordable rental housing at 60% AMI
with 75 at 30% AMI; $32 million in leveraged private investment
City Financial Participation –
Grants
Grant #1 - $3.5 million Synthetic TIF
„
Source: Future Tax Revenue of redevelopment
„
Cost to the City: $3.5 million*
„
Benefits: Used to support debt service on Section 108 loan.
*An alternative is $2.1 million one time grant. Funding source is
Unprogrammed Capital Funds (Craighead Site Acquisition- $3.4 million)
Grant #2 - $6.0 million in Infrastructure
„
Source: Capital Debt Capacity ($15.7 million)
„
Cost to the City: $6.0 million
„
Benefits: Sidewalks, Curb and Gutter, Connectivity, Gateway to
Uptown, etc.
City Financial Participation –
Grants
Grant #3 - $500,000 Grant
„
Source: CDBG (FY09)
„
Cost to the City: $500,000
„
Benefits: Relocation, blight removal & crime reduction
Grant #4 - $55,800 Land Donation
„
Source: Land owned by City
„
Cost to the City: $55,800
„
Benefits: Supports master plan
City Financial Participation –
Financial Summary
Loans
Grants
Section 108 Loan $ 10 million
Housing Trust Fund $ 5 million
Synthetic TIF
Infrastructure
Relocation Grant
Land Donation
$3.5 million*
$6.0 million
$ .5 million
$ .0 million**
Total:
Total:
$10.0 million
$15 million
* - Synthetic TIF is used to support the Section 108 loan debt service. An alternative for Council is
a one-time set aside of $2.1 million, which will reduce the total grant amount to $8.6 million.
** - The land donation is $55,800
City Timeline
Year
Key Actions/Investment
„
2007
2008
„
„
„
„
Approve Double Oaks Redevelopment Concept
and Financing Plan.
Approve Section 108 loan application
Approve Synthetic TIF Frameworks or
alternative debt service financing
Approve Capital Program Allocation
Approve Housing Trust Fund Allocation
Summary of Benefits
„
City investments will leverage $120 million in
housing and commercial investments along
Statesville Avenue Corridor.
„
City investment is almost a 1:5 leverage.
„
Expected to generate tax returns of $8.8 million
over 20 years.
„
Adds 940 housing units with 300 affordable
units and 108,000 square feet of commercial.
Next Steps
„
Approve Double Oaks Redevelopment
Concept and Financing Plan. Authorize City
Manager to initiate implementation steps,
which are subject to Council review and
approval.
„
The Housing Partnership has an option on
the Double Oaks Apartments and needs to
exercise the option by August 1, 2007.
Questions
…Tomorrow Starts Today
Charlotte City Council
Housing and Neighborhood Development Committee
Summary Meeting Minutes
July 9, 2007
COMMITTEE AGENDA TOPICS
I.
Double Oaks Redevelopment Proposal
COMMITTEE INFORMATION
Council Members Present:
Susan Burgess, Anthony Foxx and Don Lochman
Council Members Absent:
Michael Barnes and Pat Mumford
Staff Resource:
Julie Burch, Assistant City Manager
Staff:
Others:
Stanley Watkins, Neighborhood Development
Richard Woodcock, Neighborhood Development
Stan Wilson, Neighborhood Development
A. C. Shull, Economic Development
Greg Gaskin, City Finance
Scott Greer, City Finance
Keith MacVean, Planning Department
Pat Garrett, The Housing Partnership
Lee Cochran, The Housing Partnership
Fred Dodson, The Housing Partnership
David Howard, The Housing Partnership
Meeting Duration: 11: 40 a.m. – 12:55 p.m.
ATTACHMENTS
Agenda Packet – July 9, 2007
Housing and Neighborhood Development Committee
Meeting Summary for June 18, 2007
Page 2
DISCUSSION HIGHLIGHTS
Double Oaks Redevelopment Proposal
Pat Garrett, President of The Housing Partnership, provided an overview of the proposed Double
Oaks redevelopment proposal. Ms. Garrett explained that the proposed redevelopment is an
excellent opportunity to provide work force housing in close proximity to Uptown Charlotte. Ms.
Garrett explained that two-thirds of the existing 576 apartments are occupied and The Housing
Partnership will provide relocation assistance to all existing residents. She informed the Committee
that the redevelopment proposes a mixed use and mixed income development on a 98 acre site, which
will include market-rate and affordable apartments, market-rate, for-sale single family homes, town
homes and condominiums. The project is projected to cost $58 million and generate over $120 million
in development and will be phased over a 10-year period. Committee member Foxx asked if the rental
affordable units will be made available to those with incomes at or below 30% of the Area Median
Income (AMI)? Ms. Garrett answered that 75 of the total 300 affordable rental units will be
available for those at 28% to 30% of AMI.
Stanley Watkins presented information on the developer’s financial proposal and proposed City
financing options. Mr. Watkins explained that The Housing Partnership is requesting $26.7 million in
financial assistance from the City of Charlotte in the form of grants ($11,745,050), loans and loan
guarantees ($15,000,000). Mr. Watkins explained that a Section 108 Loan guarantee in the amount
of $10 million is requested for land acquisition and $5 million from the Housing Trust Fund set aside
is requested for the development of affordable housing. Mr. Watkins continued that grants
requested include a $4.5 million infrastructure grant, $500,000 for relocation assistance, and either
$6.7 million in Synthetic Tax Increment Finance (TIF) or a one time payment of $3.6 million to help
offset debt service for the Section 108 loan.
Committee member Burgess questioned the probability of obtaining a Section 108 loan. Stanley
Watkins responded that the application will have to be processed but the City has been awarded all
such previous loans for which it has applied. Committee member Lochman expressed concern about
reliance on bonds as a source of funding because they may not be approved. Mr. Lochman asked what
percentage of the Housing Trust Fund (HTF) funds will be used? Mr. Watkins answered that due to
phasing of the project, $2.5 million can be set aside from the planned $10 million bond referendum in
2008 and another $2.5 million from the $10 million bond referendum in 2010. Committee member
Foxx expressed concern about “opportunity costs” associated with the Double Oaks project and
possible conflict with other competing projects throughout the City, such as proposed redevelopment
efforts for Eastland Mall, for the same sources of funding. Mr. Foxx added that he is not in favor of
using Neighborhood Improvement (NIP) bonds, as it may result in the deferral of money from
projects already in line for completion. Ms. Burgess asked if staff had considered the use of an
Amendment 1 process instead of a TIF? A. C. Shull of the Economic Development department
responded that policy is being discussed and has not yet been established for Amendment 1 TIF
deals. Greg Gaskins, City Finance Director, noted one disadvantage of an Amendment 1 TIF as it is a
lower rated debt. Mr. Gaskins also questioned whether this project could be approved as an
Housing and Neighborhood Development Committee
Meeting Summary for June 18, 2007
Page 3
Amendment 1 TIF. Ms. Burgess asked what is the City’s investment per unit? Lee Cochran of The
Housing Partnership responded $28,000 per unit, excluding commercial development.
Mr. Lochman asked for the proposed start date for redevelopment? Lee Cochran answered that some
demolition and land clearing would begin in 2011. Mr. Lochman inquired about The Housing
Partnership’s source of revenue. Pat Garrett stated that The Housing Partnership will borrow $12
million from Wachovia. She added that thus far, approximately $500,000 has been spent on due
diligence, relocation assessments and environmental issues. Ms. Garrett informed the Committee
that no additional extensions can be obtained and the loan will be sold by HUD in September 2007.
Action: The Committee directed staff to provide the following:
ƒ Provide greater specificity regarding sources of funds for the Synthetic TIF
Alternative and Infrastructure Grant for the project;
ƒ Identify “competing” projects for those sources of funds;
ƒ Ask the Partnership to contact Wachovia, their lender, to determine the minimum
action needed by the Council at this time;
ƒ Determine if the Synthetic TIF increment can be reduced to less than 90%.
Summer Schedule:
The Committee agreed on July 16th as a possible future meeting date.
The meeting was adjourned at 12:55 p.m.