R2002-03 AUTHORIZING CONVEYANCE OF REAL PROPERTY

Home Browse Search

. i / ' � Economic & Urban Development Department Memorandum # 02-06 January 16, 2002 � TO: Honorable Mayor Terry M. Howley and City Council Members FROM: Steve Garman, City Manager�� A.J. Krieger, Assistant City Manag SUBJECT: Phase 1 Near North Property Conveyance Resolution RECOMMENDATION: Council approval of the attached resolution will authorize the City Manager to, upon Illinois Housing Development Authority (IHDA) allocation of Low Income Housing Ta�c Credits (LIHTC), convey City owned property within the Near North/Hope VI redevelopment area to Eastlake Management and Development Corporation. Affordable and market rate housing units built upon this ground would represent Phase 1 of the Near North/Hope VI redevelopment project. City staff recommends approval. � BACKGROUND: As Council is aware the City and Decatur Housing Authority are preparing redevelopment plans for utilization of the Hope VI grant. One of the central requirements of the Hope VI program is that a mixed finance package be prepared to leverage Hope VI grant funds with other funding sources, and to thereby maxini?e the total value of the overall redevelopment project. One of the methods for doing so is the utilization of LIHTC. LIHTC allow a developer to raise equity through the sale of Federal income tax credits. The equity raised is used to finance the development of affordable housing units. In accordance with this objective, Eastlake Mana.gement is currently preparing an application seeking an allocation of LIHTC for the Near North redevelopment azea. The taar credit allocation process is a competitive one whereby credits are awarded based on the point total strength of each application. One of the scoring criteria is the developer's ability to demonstrate site control. Approval of the attached resolution will enable Eastlake to demonstrate its ability to obtain site control and thereby maximi�e its potential point total. Eastlake will be submitting its taa� credit application at the end of '' this month. The Decatur Housing Authority Board has akeady approved a similar resolution. I The recommended resolution conditions an conve ance on an IHDA allocation of LIHTC. Y Y , � POTENTIAL OBJECTION: Ci staff is not aware of an o osition to this resolution or eventual ro ert conve ance. h' Y PP P P Y Y INPUT FROM OTHER SOURCES: Attached to this memorandum is a resolution and map showing the subject property. STAFF REFERENCE: If Council members have questions they may contact A.J. Krieger, 424-2727, �krie er(a�decaturnet.org .