File #: 21-0145    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 Predevelopment Loan of $400,000 to Wesley Housing for Development of Parcview II, a New Committed Affordable Rental Project at 5380 Holmes Run Parkway to be collocated with Parcview Apartments
Attachments: 1. 21-0145 - ParcView II Alexandria City Pre-Development Fund Application 8.26.2020
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 Predevelopment Loan of $400,000 to Wesley Housing for Development of Parcview II, a New Committed Affordable Rental Project at 5380 Holmes Run Parkway to be collocated with Parcview Apartments
BODY
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ISSUE: A Predevelopment Loan of $400,000 to Wesley Housing to put together a plan to structure and finance a new committed affordable housing development ("Parcview II") using the Residential Multifamily (RMF) Zone to potentially achieve up 354 apartments collocated on the site of the existing Parcview Apartments building.

RECOMMENDATION: That City Council:

1. Approve a predevelopment loan in the amount of $400,000 to Wesley Housing to facilitate predevelopment activities at 5380 Holmes Run Parkway related to Parcview II; and
2. Authorize the City Manager to execute the appropriate agreements.

BACKGROUND: In September 2006, City Council approved a loan of $9 million to help Wesley Housing acquire and renovate Parcview Apartments, located at 5380 Holmes Run Parkway, to preserve the property as affordable housing. Parcview Apartments was initially developed as Landmark Apartments in 1973 using a federal funding program that enabled deeply affordable rents. The City's 2006 assistance ensured that many long-term residents, including seniors, could remain, and also helped fund a renovation to convert many of the property's one-bedroom units to family sized (2-bedroom) units. The initial fifteen-year tax credit period will expire in 2023: Wesley plans exercise its right to acquire the property from the current tax credit partnership.

As Parcview's future sole owner, Wesley wishes to explore redevelopment of an underutilized portion of the site which currently includes the pool and a po...

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