Loading...
HomeMy WebLinkAbout~Master - Approving Request for Proposals (RFP) to Solicit for A Partner Developer in Connection with the Development of Low-Income Housing Tax Credit (LIHTC) Units in the Baker Subdivision RESOLUTION NO. 22-415 RESOLUTION APPROVING A REQUEST FOR PROPOSALS (RFP) TO SOLICIT FOR A PARTNER DEVELOPER IN CONNECTION WITH THE DEVELOPMENT OF LOW- INCOME HOUSING TAX CREDIT (LIHTC) UNITS IN THE BAKER SUBDIVISION FOR THE CITY OF AMES,IOWA WHEREAS, on December 22, 2020, as part of the City Council goal to create more affordable housing for both owner-occupied and rental households,the City Council entered into a Partnership Agreement with Prairie Fire Corporation and Builder's Development Corporation to submit a 9%Low-Income Housing Tax Credit(LIHTC)application to the Iowa Finance Authority (IFA) for 36 multi-family housing units in the Baker Subdivision(321 State Avenue); and, WHEREAS, in late September 2021, staff learned that the 9% LIHTC application was not funded due to the large group of disaster set-aside projects that absorbed most of the funding allocation;however,staff was informed by the developer that 4%LIHTC funds were available,and that the Governor's priority was to allocate an additional$100 million to affordable housing that the state was eligible to receive through the US Treasury; and, WHEREAS,this additional State funding would have approximately equaled the original 9% LIHTC request if the final guidelines supported this approach;unfortunately,the final US Treasury guidelines did not permit for the State to use the funds as they hoped; and, WHEREAS, in December 2020, it became apparent that the Agreement among the City, Prairie Fire, and Builder's Development Corporation that was predicated on the 9%LIHTC award was no longer valid; and, WHEREAS, at the April 12, 2022,meeting,the City Council directed staff to proceed with utilizing$1.8 million of the City's HOME allocations and update the Developer's Agreement with Prairie Fire Development Group and Builder's Developers Group to submit an application to the Iowa Finance Authority for a 4%LIHTC to develop 30 units in the Baker Subdivision,with the hope that construction could begin in the Fall of 2022; and, WHEREAS, in June 2022, staff was notified by Prairie Fire that they intended to introduce a new partner from Minnesota into the project and it was explained that this new company would bring property management and construction management experience to the project, and the new partner"Titan"would take over as the major developer and guarantor role; and, WHEREAS, it was further stated that the developers might want to use a special purpose entity(e.g.,"Ames Housing Partners,LP")as the contracting entity that would be made up of Prairie Fire Development Company, Builder's Developers Group, and Titan; and, WHEREAS,in accordance with the City's Purchasing Policy,staff believed that this change in partnership/ownership would require the City to re-solicit proposals for the project, and because the original Agreement had expired, no further action as it relates to Prairie Fire and Builder's Developers Group is needed; and, WHEREAS,in order to move forward,staff has prepared an updated Request for Proposals (RFP)to solicit for a new partner developer to pursue the 4%LIHTC application utilizing the$1.08 million incentive from the available City's HOME allocations. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that the approval for proceeding with a revised Request for Proposals to solicit for a partner developer in connection with the development of a 4%Low-Income Housing Tax Credit(LIHTC) units in the Baker Subdivision,which includes a City incentive amount up to$1.8 million is hereby approved. ADOPTED THIS 26`''day of July, 2022. �uxa& Diane R. Voss, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Rollins Voting aye: Betcher, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: Beatty-Hansen Resolution declared adopted and signed by the Mayor this 26t' day of July, 2022.