City Council Agenda and Packet 2015 03 03

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City Council Meeting Minutes February 17, 2015 Page 12 of 20 Mayor Muckle stated the majority of the Council is supportive of the project, but are looking for ways to help fund it. He agreed the opportunity for the flood relief is great, but unfortunately, the City has spent most of their capital projects fund to rebuild infrastructure damaged by the flood. He noted there is a lot of uncertainty in the City's budget and therefore the timing of this request is potentially a problem for the City. He agreed the demand is there and the City values its partnership with the County. The Louisville residents may be able to live in this development. He also wanted to look at ways to help facilitate the project. He stated the Alkonis project is a priority for the Louisville residents. He asked the County staff to provide a timeline for the project and discuss the amount of grant money available. Norrie Boyd, Boulder County Planning Director, 5248 5t" Street, Boulder, CO introduced Frank Alexander, Director of Boulder County Housing Authority. She stated in terms of the timing, the local match is helpful in obtaining the available disaster relief funds, which must be expended by next year. The timing is important, as is the local match, to expedite the disaster relief funds. She stressed it is also difficult for the County to come up with the necessary funds, but there is a need for affordable housing for people who were displaced by the flood. The local match also helps with the low income tax credit application and for state grants. The local match is important no matter what the support. The entire project will be financed altogether, but developed in phases through the PUD process. Frank Alexander, BCHA Executive Director, explained any affordable housing project is statutorily exempt from sales and use tax. He addressed the waiver requests and stated there will be a local preference for Louisville residents. He noted all the units in Louisville are currently leased and wait listed. He noted the demand for affordable housing is incredibly high. He stated there is no equity in the LHA properties, which would allow this project to occur. Those properties had a huge demand for capital needs /infrastructure. The cost of the Alkonis property was $2 Million dollars and the cost of construction will be $52 Million. The contribution requested is critical to demonstrate the local support for the project. Looking at senior residents in Louisville, there are 700 households who meet the low income level and cannot afford the rent where they are living. There are only 30 senior units at Lydia Morgan. Before Josephine Commons was built only 2.6% percent of the need for senior housing was being met in east Boulder County. He stressed this project is critical for Louisville seniors. He stated there is not a Lafayette Housing Authority as they have the same structure as Louisville. BCHA is the Lafayette authority. He explained Lafayette contributed $3.2 Million to their affordable housing project. He stressed another critical component of this project is a local contractor will be the preferred contractor. COUNCIL COMMENTS Mayor Pro Tem Dalton stated the City is being asked for financial assistance to speed the process up, not to build the project. He stated the project will eventually be built. He noted there will always be a demand for affordable housing and he saw no reason to speed up the subsidy. 31