City Council Minutes 2004 12 07 - Laserfiche WebLink

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Louisville City Council Meeting December 7, 2004 Page 4 of 11 The Requirements for Resale has been revised to increase the term required for sale from 120 to 180 days, with notification to the City at the time the unit is offered for sale. In the event the unit does not sell for a market price, the City and seller would share in that additional profit margin. The Initial Sales Price for the 1 and 2 bedroom units were established based on the Lafayette affordable housing program, which determines to be affordable to a person or persons making 80% of AMI. Direction is requested on the relative profit sharing between the Seller and the City in the event of a market rate sale. Council member Marsella thanked all those who participated in the discussions. She referred to Section 5-4 (b) of the Agreement and stated 30 days would not provide enough time to secure financing. She suggested 45 or 60 days would be a good compromise. Mayor Sisk requested an Applicant presentation. Scott Pederson, Pederson Development Company, 411 Camino Basque, Boulder, CO noted the intent of the Agreement and Covenants was not to penalize the buyers. He stated that the meetings were very productive, and all members were quite reasonable. COUNCIL COMMENT Council member Marsella thanked Mr. Pederson for his patience. Council member Keany inquired as to whether an ordinance would be required should the City purchase an affordable unit. City Attorney Light stated an ordinance may not be necessary, however at least two Council meetings would be needed to acquire financing and set a closing date. MOTION: Council member Marsella moved for Council Approval of Resolution No. 52, Series 2004, with three additional provisions; 1) the split of profit on sold affordable housing units would be 30% to the Seller and 70% to the City; 2) If City does not spend the profits received from the sale of affordable units, a fund will be established within five years; and 3) Should the City exercise its right of first refusal to purchase one of the affordable units, it will have 60-days to close on the property. Council member Levihn seconded the motion. City Attorney requested two changes to the Agreement be included in the motion: 1) the number in housing units and 2) the requirement for first time home owners. City Manager Simmons noted there are no restrictions on the funds. City Attorney Light confirmed the use of the funds is for housing projects, therefore there would be no restrictions on the funds. 4