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HomeMy WebLinkAboutAffordable Housing Board - Minutes - 09/02/1999CITY OF FORT COLLINS AFFORDABLE HOUSING BOARD MEETING MINUTES September 2, 1999 Bob Browning, Chair (970) 225-0137 Kay Rios, Vice Chair Ken Waido, Staff Liaison (970) 221-6753 Chuck Wanner, City Council Liaison (970) 484-0810 The meeting of the Affordable Housing Board was called to order by Bob Browning, beginning at 4:00 p.m., at 281 North College Avenue, Fort Collins, Colorado. A quorum was present. Board members present included: Bob Browning, Bruce Croissant, David Danforth, Buster Davis, Isabel Garity, Chris Martin, Stacey Overton, Kay Rios, and Mickey Willis. Staff present: Ken Waido, Melissa Cordova. Council liaison, Chuck Wanner was present. Others present: Linda Hopkins; Karen Gerard, Executive Director of Funding Partners for Housing Solutions; Krista Moberly, CARE Housing; Chadrick Martinez, Director of CARE Housing. Open Public Discussion none Board/Staff Retreat Mr. Waido questioned whether a facilitator would be helpful for the team building portion of the retreat. The board felt that it would. Northern Hotel Update Karen Gerard gave an overview of the project. The Northern Hotel is 53,000 ftZ . It is a National Historic Register property that suffered a catastrophic fire in 1975. Since then, the building has been partially vacant and condemned. In 1978, City Council passed a resolution to renovate the building. The renovation project will include: the historic restoration of the fagade, historically restore what is currently Myriad Art Prints and convert to a lobby designated as public space, 47 rental units for seniors at 40% AMI or less, the first floor will remain retail space. This is a complex project that involves many issues other than affordable housing. There are environmental concerns because of the age of the building, specifically asbestos and lead based paint. There are also structural and safety concerns. The building currently does not meet fire codes. One of the goals of City Plan is to create "a 24-hour downtown." The existence of housing Affordable Housing Board September, 2, 1999 Meeting Minutes Page 2 downtown helps to fulfill this goal. This is an ideal spot for senior housing, it's on the public transportation route, within walking distance to shopping and other senior citizen housing. Ms. Rios questioned whether a contract has been finalized and signed. Ms. Gerard responded that a purchase contract has been in place since March. The closing date has recently been extended from August 15 to October 22. The funding has been acquired based on a detailed cost estimate. Funding Partners wanted to have a guaranteed fixed - price contract before acquiring the building. Ms. Rios asked if the contract has been reworked since March. CHFA wanted clarification of the wording of the contract, which wasn't a significant change to the terms. Recently they signed. an addendum to the contract that was an extension of the deadline. Ms. Rios asked if there was a reversion clause in the contract. There is an option for repurchase at fair market value after the affordability requirement has been met. There is a 40-year obligations to CHFA. With any tax credit project, there is a time when you can opt out of the program. You have to notify CHFA, they then have one year to find a buyer for the project. If they don't find a buyer, it can revert to market rate rent. Funding Partners is planning to opt out opt out of the CHFA program at the 20 year mark in order to get out from under the regulation of the IRS. Ms. Gerard clarified the difference between reversion and repurchase. Reversion would mean that the ownership would revert back to the previous owners. Ms. Rios questioned who retains the commercial space. Ms. Gerard responded that the ownership of the building is not divided. During the tax credit period, the equity investors, a CDC of US Bank Corp. will own 99.9% of the project. The retail space will be part of the redevelopment of the whole building and Funding Partners will have control of the leasing. Ms. Rios asked if the current businesses will not be there once Funding Partners takes over. There is one current tenant that will stay, that is Phone Connection, owned by Jeff Stark, who will be a rent -paying tenant of the building. Bill Stark owns the other businesses, and those will be purchased under a separate purchase agreement already in place. Rent will continue to be collected until construction starts because they need the money for the project. The businesses will be vacated around the first quarter of 2000. The board member questioned whether retail tenants will be selected to serve the housing tenants. Ms. Gerard responded that they are looking for tenants that would offer services important to the tenants of the building, but pay commercial retail rents, because the space has to be rented at market rate. The current nature of the bars will not be maintained. There will probably be a restaurant tenant, Hallmark type card store, possibly a beauty/barber shop. There will be a leasing agent --commercial management company -- as well as an on -site person to handles emergencies, maintenance, etc. This person would be a tenant and would have to income -qualify. Affordable Housing Board September, 2, 1999 Meeting Minutes Page 3 Ms. Garity questioned whether the contract is public record. Ms Gerard responded that once they have closed, the purchase price will be public record, but not all of the contract details. Mr. Willis questioned whether Funding Partners has ever done a development project like this before. Ms. Gerard responded that they are partnering with the NDC, National Development Council who brings the development expertise that Funding Partners does not have. Mr. Willis then questioned how they were able to get such a large amount of City funding, when the funding isn't there for other affordable housing projects. Ms. Gerard responded that the money from the City was not for the affordable housing part of it. This is a way of leveraging dollars, to get non -affordable housing money contributing toward affordable housing. Bringing the building back into full use increases the tax base, which will pay back what the City paid out. Ms. Overton questioned the parking and safety . Ms. Gerard responded that they had met with Suzanne Durkin from Parking Services and the City Manager. There are underused parking facilities within half block to two blocks that can be utilized. The City Manager has sent a letter of commitment that the City will work with the project to identify appropriate parking. As far as safety - there will be a separate new secured entrance on the Walnut side. The board members expressed concern for the impact the annual downtown events, such as the BrewFest would have on the tenants. Ms. Gerard reminded them that this is not a frail elderly project, but is for senior 55 and up. A professional market study was done and senior housing was recommended. This idea seems somewhat urban to us in Fort Collins, but elderly people in Denver and New York City live in downtown apartments similar to this. Ms. Rios pointed out the necessity of elevators. Ms. Gerard stated that consideration has been given to the size of the elevators, they must be able to accommodate a gurney, they have debated showers vs bath tubs, non-skid flooring, grab bars in the showers, and other important precautions. Ms. Garity asked how large the units would be. Ms. Gerard responded that they would primarily be one bedroom units, small amount of space allocated in the kitchen, full size refrigerator and stove, smaller dishwashers. There would also be top to bottom elevators to access the storage area in the basement. The square footage would be around 500 ft2. Affordable Housing Board September, 2, 1999 Meeting Minutes Page 4 Old Business Report back on a First Right of Refusal Ordinance Mr. Wanner doesn't feel that this will pass with the make up of the current City Council. He has taken it to a couple of people, and had a negative response. This imposes too much on the owners' rights. Mr. Browning questioned whether it could be changed so that the owner had to declare their intentions six months before. Mr. Wanner felt that that would be more acceptable. He doesn't feel that the City can unduly restrain property owners from getting a market price for their property. Ms. Rios distributed to the board a list of issues for first right of refusal ordinance for rentals and home ownership. She said that this would be something to discuss at the next meeting in order to get a consensus of goals. Ms. Gerard said that there is a group doing statewide legislation on this issue. This group meets every two weeks at the State Capitol. Ms. Gerard offered to be the liaison for the Affordable Housing Board Manufactured Housing/Freddie Mac Update Mr. Danforth contacted Freddie Mac directly, and spoke with project developer, Jim Cary. He reported that they are only interested in dealing with the Manufactured Housing Institute at this time. The American Planning Association has a Planning Advisory Service report #445 related to manufactured housing that would be helpful to take a look at. The City staff will try to locate a copy of this report. Mr. Danforth suggested watching a 9-minute video from Chateau Communities. The video was prepared for the City of Thornton in relation to a proposed senior project. The board would like to view the video at the upcoming retreat. New Business Approval of Minutes Ms. Rios wanted to clarify a point in the third paragraph under the manufactured housing discussion. The sentence should read, "Stacy Overton explained that it's a higher risk, and they can't do a mortgage if it isn't on a foundation, so that it's an unsecured personal loan rather than a mortgage." Affordable Housing Board September, 2, 1999 Meeting Minutes Page 5 The first sentence in the second paragraph on page 2 should read, "Ms. Rios would like to look into down payment assistance for manufactured housing if the current owner wanted to upgrade to a newer model so that they could meet the standards of the park, or assistance with upgrading." Mr. Davis moved to approve the minutes of the August 5, 1999 meeting as amended. Mr. Croissant seconded. Motion passed unanimously Poudre River Floodplain Regulations - Staff Recommendations Bob Smith, Water Planning Manager for the City of Fort Collins Utilities Department gave a brief overview of the city's floodplains and discussed the recommendations that have been made. After the 1997 flood, the question was raised whether the floodplain regulations are restrictive enough, or even too restrictive. A task force of 21 people was formed to investigate this issue. The purpose was to give staff their ideas on floodplain regulations. There are many complicated issues: what to do with the currently vacant ground, whether properties that are currently developed should be allowed to add on or remodel, health and safety, property owner rights. The approach is that of health and safety, not of no growth. The Poudre River was looked at first, then the same matrix was used for the other floodplains. Staff put together this recommendation that will go to the November 23 City Council Study Session. Mr. Danforth questioned what this does to neighborhoods such as: San Cristo and Dry Creek. Mr. Smith discussed terminology and showed maps. Mr. Smith responded that Buckingham would be almost 90% in the 100-year floodplain for the Poudre River. Alta Vista is predominantly in the floodway of Dry Creek. Andersonville is in the 500-year floodplain of the Poudre River. Mr. Danforth asked what the risks are associated with these neighborhoods. Alta Vista is at the highest risk because they're right in the floodway. Andersonville is at a much lower risk. Mr. Smith discussed critical facilities, those that provide critical services during an event, such as hospitals, police stations, fire stations, wastewater treatment plants, and water plants. These are currently not allowed in the 500-year floodplain. Nursing homes and gas stations are also included. They would like to add daycare facilities and schools as well. Ms. Rios asked why retail facilities that have hazardous materials are not an issue. Mr. Smith responded that Poudre Fire Authority doesn't see those as a threat. The chemicals found on grocery store shelves are in closed and sealed containers. The chemicals that can create problems are those found in homes and garages. Affordable Housing Board September, 2, 1999 Meeting Minutes Page 6 Ms. Rios inquired about the purchasing process for areas in the floodplain. Mr. Smith responded that there are two programs: Natural Resources and the sales tax where they can purchase open space. Mr. Willis asked how you compensate property owners for not allowing them to make improvements, when the upstream development is impacting our floodplain expansions. Mr. Smith explained that the Poudre River floodplain is dictated by the flows coming out of the mouth of the canyon. Development really doesn't have an impact on the Poudre River, but it does on Spring Creek and Fossil Creek. Mr. Danforth wondered if the Council accepts the recommendations as presented, what will happen to the amount of real estate available for development in the area of concern. Mr. Smith replied that the area of ground would decrease on the Poudre River. Mr. Smith estimated 10%, but he will provide a figure at the next meeting, either in person or in writing. Mr. Danforth expressed concern for the impact the increasing scarcity of developable land will have on affordable housing. Ms. Hopkins asked if a homeowner in Alta Vista, made improvements to their home, up to 50% in valuation, would the 50% be market value or assessed value. Mr. Smith, commented that the market value of the structure determines that. Ms. Hopkins then asked if a person could remove a structure from Alta Vista and replace it with a manufactured house. Mr. Smith replied that according to the proposed standards, that would not be allowed. Mr. Danforth commented that taking land off line would drive the cost up. He questioned whether the probability of real damage occurring, and the cost of insuring against that has been weighed against slowly condemning certain neighborhoods. Mr. Smith responded that flood insurance for a single family residential structure starts around $300 a year. Commercial property is about $3000 per year, depending on what is being insured. This doesn't cover the contents of a basement, only structural damage. Mr. Browning asked Mr. Smith to share a figure with the board for the next meeting. Sales Tax Rebate Program Tabled until the next meeting. Update on the Development of a Competitive Process for Allocation of Funds from the City's Affordable Housing Fund Tabled until the next meeting. Meeting adjourned at 6:05 p.m.