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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 04/17/2001 - SECOND READING OF ORDINANCE NO. 48, 2001, AMENDING AGENDA ITEM SUMMARY ITEM NUMBER: 13 DATE: April 17, 2001 FORT COLLINS CITY COUNCIL FROM: Maurice I. Head SUBJECT : Second Reading of Ordinance No. 48, 2001, Amending Chapter 23 of the City Code by the Addition of a New Article XI Entitled "Land Banking". RECOMMENDATION: Staff recommends adoption of the Ordinance on Second Reading. EXECUTIVE SUMMARY: At the January 9 Study Session, the City Council discussed the feasibility of land banking in Fort Collins. Staff and Bay Area Economics (BAE), consultants on the project, provided City Council with an evaluation for establishing an Affordable Housing Land Bank Program. Representatives from CARE and Neighbor-to-Neighbor also participated in the discussion. The objectives of the program include establishing a program that facilitate the production of affordable housing by purchasing land today, and providing land to housing providers in the future for developing affordable housing. Six scenarios were discussed and the baseline scenario (Pilot Project) was the preferred scenario. The Pilot Project scenario can be implemented with an initial investment of$925,000 which the City currently has available for this program. In addition to cash balances from prior years, the primary sources of funds for the Land Bank Program include debt proceeds, proceeds from the sale of Land Bank property and limited general City resources and/or reserves. Ordinance No. 48, 2001, was unanimously adopted on First Reading on March 20, 2001. AGENDA ITEM SUMMARY ITEM NUMBER: 18 DATE: FORT COLLINS CITY COUNCIL STAFF: March 20, 2001 Maurice L Head SUBJECT: First Reading of Ordinance No. 48, 2001, Amending Chapter 23 of the City Code by the Addition of a New Article XI Entitled "Land Banking". RECOMMENDATION: Staff recommends adoption of the Ordinance on First Readin fordable using Board and the Community Development Block Grant Commis recommend implementation of the Land Bank Program. FINANCIAL IMPACT: 7 The Land Bank Program will have no financial i n th ty. The funds to implement the program are reserved in the Affordable Housing Tru udget. EXECUTIVE SUMMA At the J uary 9 Study Sessio Council di cussed the feasibility of land banking in Fort CollitiS Staff and Bay Area 'E), consultants on the project, provided City Court it with an evaluation for establishing an Affordable Housing Land Bank Program. Repr6-matives from CARE an eighbor-to-Neighbor also participated in the discussion. The objeLt es of the program include establishing a program that will facilitate the production of a r ' a housing by purchasi land today, and providing land to housing providers in the future'• veloping affordable ousing. Six scenar ' We ed with Council. The baseline scenario (Pilot Project) was the preferred scenario Phe Pilot Project scenario can be implemented with an initial investment of $925,000 which the City currently has available for this program. In addition to cash balances from prior years, the primary sources of funds for the Land Bank Program include debt proceeds, proceeds from the sale of Land Bank property and limited general City resources and/or reserves. In other words, the Pilot Project does not required any additional financial resources beyond those that are currently available ($925,000). DATE: March 20. 2001 2 ITEM NUMBER: is With this scenario, at the end of the 15-year period. the estimate of total returns yields a net cost of about $170,000. This means the City would spend about $170.000 more on the Land Bank Program than the Program would yield in terms of financial benefits. However, over a 15-year period, and with some additional limited funding, it is projected that the Pilot Program investment would purchase 53 acres yielding 600 affordable housing units and provide a steady supply of land for future affordable development projects. Council directed staff to follow-up with the Affordable Housing Board (AHB) and Community Development Block Grant Commission (CDBG) to get any comments concernu g the Land Bank Program. The AHB discussed land banking at its February 1 meeting and'voQ 6 to 2 in favor of implementing the Land Bank Program, with the stipulation that staff will n& submit a new application in the Competitive Process to fund the Land Bank Program. Additionally, the CDBG Commission voted 7 to 2 to approve the Program at its March4 meeting, noting that the City would be eligible to compete for CDBG funds for the Land BXi BACKGROUND: , The land bank concept has been a goal in the City's°housmg policy since 1992 In 199&ta'tity team participating in the National League oCities "Stren&ihening Partnerships for, ousing Opportunities Workshop", identified available resources as qne of the major impediments in Orr, 1W meeting future affordable housing needs. The land bank concept was presented a, a strategy m he 'Priority Affordable Housing Needs .. t g >,% and Strategies Report" which was opted,b ity Coun61A 'February 1999. Council directed staff to follow up the land b'Aik strategy wtth feasibility stay ip test the practical application E , of the program. In resperose the Advance Planiun$ Depa etained BAE to prepare a Y:S feasibility study for the es6blishment of a land baiilctiig program,m Fort Collins. The feasibility study was completed in Dedember 2000. G u At the January 4kStudy Sesston, Council discussed the feasibility of land banking in Fort Collins. City staff and D .providedRCity Council with an:evaluation for establishing an Affordable Housing and Bank'Program�- R.`6 resentativcs„from CARE and Neighbor-to-Neighbor also participated in the discussion. Theo eCtiyesijf the Program include implementing a program that Will facilitate the production of"affordable housing by providing land that developers can feasiily purchase, and helping ensure that appropriate sites are available in the future for devd6ing affordable housing. EMt, ProgrmkDescription The Land Bank Program ts,considered to be one more tool in the tool box of the City's affordable housin s and strategies. Unlike many of the City's other programs, the Land Bank Program is long term in scope, addressing long-range affordable housing needs. DATE: March 20. 2001 3 ITEM NUMBER: 18 The major elements of the proposed program include: The Land Bank Program is intended to acquire sites that are appropriate for affordable housing and hold them long-term so that they are available when needed. Although no maximum or minimum time limits will be set, in most cases, land would be held approximately 5-10 years. The Program would be limited to the City of Fort Collins Growth Management Area. This geographical area for land banking is consistent with City poli6kibr the extension of infrastructure improvements and other services. Sites would be acquired in a wide variety of locations to distribute affordable housing throughout the City. A Pilot Project is proposed to begin immediately using existing funds for this purpose ($925,000). This would permit the Land Bank_,Program to» unrially acquire approximately 10-20 acres of land on 3-5 sites, which would Ise taigetpd to wield at least 120-240 affordable housing units (12 du/ac). Over a 15-year period, and".wath some ,�. , r additional funding, it is projected that the Pilot PrmoFgram investment would pu chase-53 acres yielding 600 affordable housing units - ' The Pilot Project is to be evaluatead b staff and the'findings reported back to City Council and the Affordable Housing Board' If the Pilot-Project is deemed successful, the staff will then seek long-term funding, including a dedicated source of funds for future land banking., .0 The long-term proposal is to use(ity=general funds�J`continue and expand the Pilot �x Project, which would result in additional,land for ` o}dable housing units. The Alternative 3 Funding Scenario (AttachmentQ of this document) would allow the Land Bank Program to,*,purchase an additional fig, acres 'of land over a 15-year period, benefitting additi6,04450 affordable housing units. The re s '0',,of the land'Bank properties will be targeted to non-profit agencies providing affordable housing fore low 1ncome and- tremely low income families. NP kSites should be held long enough so'ihat the appreciation in value covers the Land Bank Program's purchase, carrying costs, and possibly some program income (which would be reinvested in the Program). When a land bank property is sold for affordable housing, it would sell for no more than 90% of market value. The`-Program is intended to be as self-sustaining as possible over time. Land Availabill u The consultant identified over 5,000 acres of vacant land that could be considered for acquisition for land banking. These sites would potentially be suitable for eventual development of affordable housing, based on proximity to either existing or planned amenities such as schools, parks, commercial centers, employment centers and transit. These sites are available throughout the City, so land bank sites can be selected to avoid concentrations of sites in any particular neighborhood. DATE: March 20. 2001 4 ITEM NUMBER: 18 The Land Bank Program will purchase, on average, 3.5 acres each year. This amount of land for the Program in relation to the existing supply of vacant land is sufficiently small, so that the Program should not have a significant impact on the private residential land market in Fort Collins. The Land Bank Program will act as an intermediary for affordable housing non-profit developers like CARE and provide a future supply of land resources. Land bank sites will generally not be immediately ready for development and most likely would be in future developing areas. Properties acquired by the Land Bank Program will become more attractive within 5 or 10 years as infrastructure, community services,,4and commercial development are in place to serve new neighborhoods. . * ; Non-economic Benefits d� 5 In addition to the financial return, the consultant identified othejt4 nefits that would be derived from land banking. They are as follows: ~ 11 411 * Providing non-profit affordable housing developers with a supply of 1 '; future development projects. ^A` t- * Pre-identifying sites for affordable hptIn' development so those adjacent.aproperty owners are aware of the plans for thieldra Systematically securing affordable housm „I Rg�s�#es 'o that the developments can be dispersed throughout the comuntX. 1� * Using strategic site selection for threw o ble housing,deyelo`pment process, so future residents benefit frpm housing develop�cggod locarions` a Ell T x J5 Staff Recommendation Staff recommends that Coun implement the Land Bank Pilot Program as a long-term strategy V}� Ft for assisting ito %prafit developers with securing land for future affordable housing projects for very to =and extremely low in6bme 1=amilies. y If Co cil concurs, the action will be to approve Ordinance No. 48, 2001 which incorporates the operitional guidelines for the Land Banking Program into the City Code. Funding for the Proo' is from the Affordable Mousing Trust Fund; the level of funding is determined by City Council through the budget appropriation process. Staff wi11 eWaluate the PilotxPi m ogra within two years of program initiation and present this information'ta fstty.Coun s r ,,o ndil