HomeMy WebLinkAbout~Master - Approving the Option Agreement for the Sale of the Baker Subdivision (321 State Avenue) to Prairie Fire Development RESOLUTION NO. 20-667
RESOLUTION APPROVING THE OPTION AGREEMENT FOR THE
SALE OF THE BAKER SUBDIVISION (321 STATE AVENUE)
TO PRAIRIE FIRE DEVELOPMENT
FOR THE CITY OF AMES,IOWA
WHEREAS,at the October 27,2020 City Council meeting,the Council selected Prairie Fire
Development Corporation as the preferred developer to partner with the City to prepare and submit
a Low-Income Housing Tax Credit (LIHTC) application for multi-family housing in the Baker
Subdivision, 321 State Avenue to the Iowa Finance Authority(IFA) in March 2021; and,
WHEREAS, Prairie Fire Development was chosen based upon their housing development
experience(including LIHTC projects),their unique proposed building design and layout,two rental
housing types (apartments and townhouses) of with 87%would be made affordable to households
at 60% of less of the Ames Area Media Income Limits, and the ability of their proposed projec to
receive the highest LIHTC points possible (155 pts) for a project; and,
WHEREAS, as part of the proposal, Prairie Fire Development offered to purchase the site
for $2,500, contingent on receiving tax credit approval; and,
WHEREAS, Prairie Fire Development must demonstrate site control of the property at the
time of submitting the LIHTC application to IFA,and this requires that Prairie Fire and the City enter
into an Option Agreement to transfer the property to Prairie Fire Development prior to submitting
their LIHTC application; and,
WHEREAS,with the Option Agreement,the City is committed to transferring the property
to Prairie Fire Development, subject to its terms (one of which is the approval of the LIHTC
incentive), for a period of nine months from the time of the application submittal; and,
WHEREAS, in order to comply with state law concerning the transfer or sale of public
property, a public hearing must be held before entering into the Option Agreement; and,
WHEREAS, Prairie Fire Development will be creating a joint venture with Builder's
Development Corporation, a non-profit entity that will be responsible for the on-site management
of the units, to develop the project, prior to submittal of the application to IFA.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Option Agreement for the sale of the Baker Subdivision(321 State Avenue)to Prairie Fire
Development is hereby approved.
ADOPTED THIS 22nd day of December, 2020.
Diane R. Voss, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Martin
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Martin
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 22nd day of December, 2020.