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HomeMy WebLinkAbout~Master - Rescission of HDG as consultant for CDBG Disaster Application for properties in 500 block of 6th Street RESOLUTION NO. 14-475 RESOLUTION RESCINDING APPROVAL OF HATCH DEVELOPMENT GROUP AS PREFERRED CONSULTANT/DEVELOPER FOR CDBG DISASTER APPLICATION FOR CITY-OWNED PROPERTIES IN 500 BLOCK OF 6TH STREET FOR THE CITY OF AMES,IOWA WHEREAS, on August 19"`, the City Council directed staff to pursue completing a Community Development Block Grant Disaster Relief(CDBG-DR)program grant application with assistance from Hatch Development Group (HDG); and, WHEREAS, the intent was to pursue a grant for construction of a total of six units on three properties owned by the City along 6'Street that were recently acquired by the City,and this action was taken on short notice, since the deadline for submitting a complete grant application is September 2, 2014; and, WHEREAS, City staff was able to meet with HDG and discuss the specifics of the site,the zoning of the site, and HDG's experience with the CDBG-DR program application requirements; and, WHEREAS, HDG emphasized this site offers a great opportunity due to its proximity to downtown, and it further believes the site is appropriate for a variety of housing types and density levels; and, WHEREAS,.however,HDG informed the City on August 2 Pt that after creating a pro forma for construction and operation of six affordable housing units,it was not able to demonstrate that it was viable project with positive cash flow in the first 10 years of the project; and, WHEREAS,with this information,City staff and HDG concurred that it was not appropriate to proceed with submitting a grant application for the CDBG-DR funding with HDG as a partner; and, WHEREAS,upon learning that HDG was unable to assist in preparing the grant application, staff spoke to an alternative group of Benjamin Design Collaborative/Story County Community Housing Corporation(BDC+SCCHC), which had also previously indicated interest in the project; and, WHEREAS, after considering the tight time limits of the process and its priorities as an organization, it, too, declined to assist in preparation of a grant application for the site; and, WHEREAS,after further investigation,it was proven that the grant program was not suitable for the site at this time due to time constraints and requirements of the program; and, WHEREAS, since the sites were acquired with our CDBG entitlement funds and they ultimately will be used in support of the community's affordable housing needs, staff will begin a process later this fall to solicit requests for proposals to consider what affordable housing development options are available for the site and to have Council select a development partner for the three sites NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the rescission of Resolution No. 14-455 approving Hatch Development Group as the preferred consultant/developer for the CDBG Disaster Application for the City-owned properties located at 519-521, 525, and 601 6`h Street is hereby approved. ADOPTED THIS 26th day of August, 2014. Awe v'� ,,o%g Diane R. Voss, City Clerk Ann H. Campbell, Mayor Introduced by: Nelson Seconded by: Goodman Voting aye: Betcher, Corrieri, Gartin, Goodman,Nelson, Orazem Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 261h day of August, 2014.