City Council Agenda and Packet 2015 04 21

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City Council Meeting Minutes April 7, 2015 Page 9 of 26 terminates if project hasn't started by December 31, 2016 and the amounts are subject to annual appropriation. Economic Development Director DeJong addressed the City Council questions from the March 17, 2015 meeting as follows: Louisville Artist Co- Housing Component: BCHA RFP in early 2015 to find partners to share in development risk and complement affordable housing. The Artists Co- Housing and Art Underground proposal best met RFP intent. The agreement is still in negotiations. At a minimum, pro -rata share of land and infrastructure costs. Flood- related funding to Project: Current funding available to create additional affordable housing supply in response to housing lost in the flood. Preference will be given to flood displaced residents, with 71 residents still without permanent housing. All BCHA properties have voluntarily given preference when there is a vacancy. Many flood victims desire to locate close to former homes. Several other projects being proposed to accommodate flood displaced victims. Fiscal Model: Model supplied on March 16, 2015 complies with city requirements. The fiscal model does not analyze other governments such as Fire District; County and the School District. Removing non - profit and replacing with retail improves fiscal performance for on -going and one -time. The project as a whole remains negative for on -going and one -time. The one -time capital expenditures equals minus $667,795; adding in the first year subsidy equals minus $1,196,661and adding contribution in 2018 equals minus $1,682,782, which represents 3.2% of total construction cost ($52,000,000 project cost). Cost of assistance per affordable housing unit (185 units) is $9,100. Department Budgets: The Planning and Building and Public Works are included in the General Fund operating budget. The General Fund will receive less revenue due to the rebates. The BCHA fee rebates however will not impact day to day operations. Staff evaluation: Staff believed the project is compatible with Comprehensive Plan and meets 18 policies in that document for Housing, Municipal Infrastructure and Economic Development. It does not meet 2 policies for Fiscal performance. There is a need for affordable housing. The constricted supply and significant demand for housing is causing high prices. Construction costs and land market costs need subsidies to `buy down' cost. Affordable rents can only facilitate $21,000,000 of traditional financing (mortgage). Subsidies needed to achieve affordability. Additional transportation connections and additional road options for North Louisville residents are provided. Advances road network outlined in the Comprehensive Plan; completes Hecla to Hwy 42 and advances Kaylix South (Christopher Plaza improvements and Davidson Highline extension needed to complete Kaylix). 37