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File #: 18-7938    Name: City Loan to AHDC for Gateway at King and Beauregard
Type: Status: Agenda Ready
File created: 8/8/2018 In control: City Council Legislative Meeting
On agenda: 9/11/2018 Final action:
Title: Consideration of a $700,000 Increase to the City Loan to Alexandria Housing Development Corporation (AHDC) for the Gateway at King and Beauregard Affordable Housing Development.
Attachments: 1. 18-7938_Gateway Loan Request, S&U and Proforma
City of Alexandria, Virginia
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MEMORANDUM



DATE: SEPTEMBER 5, 2018

TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

FROM: MARK B. JINKS, CITY MANAGER /s/

DOCKET TITLE:
TITLE
Consideration of a $700,000 Increase to the City Loan to Alexandria Housing Development Corporation (AHDC) for the Gateway at King and Beauregard Affordable Housing Development.
BODY
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ISSUE: Consideration of additional City loan funds of $700,000 for Alexandria Housing Development Corporation's (AHDC) 74-unit Gateway affordable housing development.

RECOMMENDATION: That City Council approve additional loan funds of $700,000 bringing the total permanent City loan amount for the AHDC Gateway affordable housing development project to $6.2 million.

BACKGROUND: At its November 14, 2015 public hearing, City Council approved a loan to AHDC of "up to $5.5. million" for a 74-unit affordable housing building that is part of the Gateway at King (now branded "West Alex") mixed-use development which also includes market rate apartments, a Harris Teeter grocery store and other office and retail space. The loan amount included a previously authorized predevelopment loan of $350,000.

The City closed on its permanent loan to AHDC in February 2018. Construction of the project has been ongoing since early Summer 2017, with the Prime Developer performing site work, excavation, and construction of the underground parking garage and a ground level retail center that provides the podium upon which AHDC will build its apartments. The full financial closing for the transaction (tax credits, construction and permanent first trust debt) will take place when the podium is delivered in mid-September.

Due to recent escalations in construction costs in Virginia and the D.C. Metropolitan area, and uncertainty regarding the pricing of materials in the future due to tariff issues, a shortfall in the construction budget...

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