City of Alexandria, Virginia
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MEMORANDUM
DATE: JANUARY 3, 2013 (REVISED)
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER
DOCKET TITLE:
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Introduction and First Reading. Consideration. Passage on First Reading of an Ordinance to Approve and Authorize the Transfer of City Owned Property Located at 3600 Jefferson Davis Highway, as Part of a Total City Support Package.
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ISSUE: How to fund a proposed new 78-unit affordable housing development on East Reed Avenue.
RECOMMENDATION: That City Council:
(1) Introduce, approve on first reading, and set for public hearing on January 12 an Ordinance for transfer of the City-owned parcel located at 3600 Jefferson Davis Highway to a city-controlled special purpose limited liability entity that will form a public-private partnership with AHC, Inc. (and its eventual tax credit investor) in order to complete the land assemblage for the development and facilitate the City’s participation in ongoing project oversight and governance; and
(2) After all required public hearings, contingent upon City Council approval of the East Reed Avenue Development Special Use Permit and other necessary land use actions to allow the development of the subject property:
(a) approve the provision of a loan totaling $2.5 million from City housing monies to AHC, Inc., incorporating the $250,000 forgivable predevelopment loan approved by City Council in September 2012; and
(b) authorize the City Manager to execute all necessary documents, including but not limited to a special limited liability entity formation documents, a partnership agreement and loan documents, as well as letters of support and such other certifications as may be required on the City’s behalf, to assist AHC, Inc. with its application to the Virginia Housing Development Authority (VHDA) for 9%/competitive federal Low Income Housing Tax...
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