File #: 21-0142    Name:
Type: Written Report Status: Agenda Ready
File created: 8/18/2020 In control: City Council Legislative Meeting
On agenda: 9/8/2020 Final action:
Title: Consideration of a $2.5 Million Capital Improvement Loan to Landmark Towers, LLC to Preserve Market Affordability and Secure a Right of First Refusal of a Multi-Family Apartment Building at 101 South Whiting Street.
Attachments: 1. 21-0142_Attachment 1 - Landmark Towers 10 Year Capital Plan, 2. 21-0142_Attachment 2 - Landmark Towers Loan Request 06082020, 3. 21-0142_Attachment 3 - Landmark Towers Proforma (20 Year), 4. 21-0142_After Items
City of Alexandria, Virginia
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MEMORANDUM



DATE: SEPTEMBER 2, 2020

TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

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

DOCKET TITLE:
TITLE
Consideration of a $2.5 Million Capital Improvement Loan to Landmark Towers, LLC to Preserve Market Affordability and Secure a Right of First Refusal of a Multi-Family Apartment Building at 101 South Whiting Street.
BODY
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ISSUE: Provision of a $2.5 million capital improvement loan to Landmark Towers, LLC, a 154-unit mixed-use rental property in exchange for long term compliance with the City's voluntary rent guidelines, provision of a right of first refusal in the event of a future sale, and a commitment to jointly explore potential redevelopment opportunities, if mutually beneficial, to add committed affordable and workforce units.

RECOMMENDATION: That City Council:

1. Approve a loan of $2.5 million to Landmark Towers, LLC for capital improvements at 101 South Whiting Street, contingent on preservation of its long term market affordability and provision of a right of first refusal in the event of its future sale, as well as potential joint exploration of redevelopment options to increase affordable and workforce rental housing onsite; and
2. Authorize to the City Manager to execute the loan agreement and related documents.

BACKGROUND: Representatives of Landmark Towers, LLC, located at 101 South Whiting Street and across Duke Street from Landmark Mall, contacted the Office of Housing last Fall seeking resources to help facilitate its 10-year capital improvement plan (Attachment 1). The 16-story building, constructed in 1964, includes three floors of commercial and retail space, including building amenities, professional offices and a preschool operated by the Child & Family Network Centers (CFNC), with the floors above containing 154 apartments. The City real estate assessment of this...

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