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HomeMy WebLinkAbout2023-04-03 H02 Northpointe Amendment to Option to Purchase_PHAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: April 3, 2023 AGENDA ITEM:On an Amendment to the Option to Purchase Agreement with Northpointe Development II Corporation for an Affordable Housing Project FORMAT:Public Hearing SYNOPSIS INCLUDING PRO & CON: The City selected Northpointe Development II Corporation’s proposal to develop affordable housing units on 6.44 acres near Douglas Parkway and North Warrior Ln. As part of the City’s contribution to the project, Northpointe will be given a nine-month option to purchase the portion of the land that will house low-income housing rental units for $1. A portion of the property will be developed by a third party to build 9-14 owner occupied units for sale. The City will directly transfer that portion of the land to the third party for $1. If Northpoint does not receive low-income housing tax credits, this agreement will dissolve. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: Northpointe Development noticed a change between the proposed state funding for the low-income housing tax credit (LIHTC) program and the final guidance. As a result of this change, the project as proposed would result in a $3 million funding gap. As a way to solve this funding gap, Northpointe has proposed building 46 LIHTC units and approached Habitat for Humanity about building 9-14 single family or townhomes for sale. This amendment has no additional fiscal impact to the City. COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Hold the public hearing ATTACHMENTS: I. Notice of Public Hearing PREPARED BY: Nick Osborne REVIEWED BY: PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: Dallas County News DATE OF PUBLICATION: 03/30/2023 H2 NOTICE OF PUBLIC HEARING CONCERNING A PROPOSAL TO DISPOSE OF CITY PROPERTY BY ENTERING INTO CERTAIN AMENDMENTS TO AGREEMENTS WITH NORTHPOINTE DEVELOPMENT II CORPORATION FOR THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT In accordance with Iowa Code 364.7, the Waukee City Council will hold a public hearing on April 3, 2023, at 5:30 p.m. at Waukee City Hall, 230 W. Hickman Road. Due to public health concerns and guidance, in accordance with Iowa Code Sections 21.4(1)(b) and 21.8, this meeting of the Waukee City Council will be conducted with two different options for public participation: 1) Members of the public wishing to attend in person may do so in the Council Chambers at Waukee City Hall. 2) Members of the public wishing to participate electronically may do so via Zoom at the following link or phone numbers: https://zoom.us/j/352651371 Meeting ID: 352-651-371 Or by phone: +1 646-558-8656 or +1 312-626-6799 or +1 301-715-8592 All persons wishing to observe or participate in this meeting via Zoom or telephone. Please contact the City Clerk’s office at 515-978-7904 or bschuett@waukee.org if you have questions or electronic accessibility issues. The purpose of the hearing concerns a proposal to dispose of City Property by entering into certain amendments to agreements with Northpointe Development II Corporation. After the public hearing, the Waukee City Council will take action concerning the proposed resolution and the proposed amendments to agreements. The resolution setting forth the proposal and the proposed amendments to agreements are on file in the office of the City Clerk, Waukee City Hall, 230 W. Hickman Road, and are available for public inspection during the regular business hours of 8:00 a.m.-5:00 p.m., Monday-Friday. Interested individuals are encouraged to attend the public hearing and offer their opinions, pro or con, to the proposed agreement. By order of the City Council, Rebecca D. Schuett City Clerk