R2022-69 Resolution Authrorizing City Manager to Purchase Property Located at 805 East Johns Avenue, Decatur, Illinois

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ECONOMIC AND COMMUNITY DEVELOPMENT MEMORANDUM No. 22-15 DATE: April 11, 2022 TO: Honorable Mayor Julie Moore Wolfe and City Council FROM: Scot Wrighton, City Manager Jon Kindseth,Deputy City Manager Cordaryl "Pat"Patrick, Director of Economic & Community Development SUBJECT: Resolution Authorizing the City Manager to Purchase Property located at 805 East Johns Avenue in Decatur SUMMARY RECOMMENDATION: Staff recommends approval of a Resolution authorizing the purchase of 805 Johns Avenue,Decatur. BACKGROUND: In the spring of 2021, the City was notified that the City had been allocated $1,497,384 under HOME-ARP. The City historically has received both CDBG and HOME funds, but this additional allocation came out of the American Rescue Plan with a specific purpose of addressing homelessness. The funds can be used for production or preservation of affordable housing, tenant-based rental assistance, supportive services, or development of shelters for homelessness. HUD recommends that communities engage their Continuum of Care(CoC)service providers to advise and guide the City on how to best locally allocate these new resources. Over the past six months, City staff has met with our CoC to gather this input and support for making a meaningful impact in addressing the needs of homelessness in Decatur and Macon County. The consensus of the CoC was additional housing options were needed for permanent supportive housing for single adults along with temporary housing for families with children. Their request demonstrated to staff that the capital needs of acquiring and rehabilitating new housing was the greatest immediate need for our local service providers. To this end staff has evaluated a number of multifamily properties around the City and has settled on the recommendation of 805 Johns Avenue, as the one best fitted to the grant requirements, and best matching local needs. City staff and Dove representatives have toured the facility and believe this property is the right one for investments with the HOME-ARP allocation. The property is the ideal size and is in good current condition to make for a cost effective rehabilitation project that meets the stated needs of the CoC. Staff has also solicited and received the support of the host neighborhood association, SIA for this project and intended use. The City has negotiated and secured an option to purchase this property for$190,000. With Council's authorization,the City would acquire and transfer title to Dove,Inc. After acquisition of the facility,Dove and CoC would secure the services of an architect to identify plans for the rehabilitation of the property. Dove along with many other service providers would operate and provide supportive services that rightfully should go along with an effective supportive housing project.