HomeMy WebLinkAbout~Master - Development Agreement with Townhomes at Creekside LLLP LIHTC Application for Lot 27 in Baker Subdivision RESOLUTION NO. 23-191
RESOLUTION APPROVING DEVELOPMENT AGREEMENT WITH TOWNHOMES
AT CREEKSIDE,LLLP (AFFILIATED WITH HATCH DEVELOPMENT GROUP) IN
CONJUNCTION WITH A LOW-INCOME TAX CREDIT (LIHTC)APPLICATION
FOR MULTI-FAMILY HOUSING DEVELOPMENT
FOR LOT 27 IN THE BAKER SUBDIVISION
FOR THE CITY OF AMES,IOWA
WHEREAS, on February 28, 2023, City Council selected the Hatch Development Group
as its partner to develop multi-family rental housing on Lot 27 in Baker Subdivision(formerly 321
State Avenue). At that meeting,the City Council directed staff to prepare a developer's agreement
to partner with Hatch Development Group to submit an application for Low-Income Housing Tax
Credit (LIHTC) to the Iowa Finance Authority (IFA) on or by April 19, 2023; and,
WHEREAS, the developer will be doing business under the name Townhomes at
Creekside, LLLP. The agreement outlines that the developer intends to apply for a nine percent
(9%) LIHTC allocation from IFA on or before the IFA due date of April 19, 2023, to develop the
Site. An updated Concept Plan Exhibit is included in the agreement. The developer must submit
for plan approval to the City within 180 days of notice of award from IFA and start construction
by March 31, 2024. Construction is to be completed by June 30, 2025; and,
WHEREAS, upon approval of the LITHC award, the City will set aside a maximum of
$1.8 million of its HOME funds for the construction of 38 units. Based on the City's commitment
of its HOME funds, seven of the 38 units will be set aside specifically under the City's HOME
program guidelines; all seven units will be three-bedroom units; for households at 50% or less of
the AMI. As per the City's RFP, 10% of units will be designated for Section 8 Housing Choice
Voucher holders. These units are in addition to the City's seven HOME set-aside units; and,
WHEREAS,the affordable housing requirements apply for 30 years,regardless of ongoing
participation in the LIHTC program. The Agreement includes a variety of terms and conditions
for both parties to meet the application requirements set forth by IFA, including pre-construction
activities, insurance, compliance with applicable laws, Equal Employment Opportunity,
Americans with Disabilities Act compliance, and other miscellaneous provisions; and,
WHEREAS, Townhomes at Creekside, LLLP must demonstrate control of the property at
the time the LIHTC application is submitted to IFA. This requires Townhomes at Creekside,
LLLP, and the City to enter into an Option Agreement to transfer the property prior to submitting
the LIHTC application. The Option Agreement commits the City to transferring the property
subject to conditions, for a period of nine months from the time of the application submittal; and,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the Development Agreement with Townhomes at Creekside, LLLP (affiliated with Hatch
Development Group) in conjunction with a Low-Income Tax Credit (LIHTC) Application for
multi-family housing development for Lot 27 in the Baker Subdivision is hereby approved.
ADOPTED THIS 281h day of March, 2023.
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Renee hall, City Clerk John A. Haila, Mayor
Introduced by: Betcher
Seconded by: Rollins
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins
Voting nay: None Absent: None
Resolution declared adopted and signed by the Mayor this 281h day of March, 2023.