Agenda Item # 2

Columbus Consolidated Government

Council Meeting

05/28/2013

Agenda Report # 81


TO: Mayor and Council

SUBJECT: Housing Authority of Columbus Redevelopment of Booker T. Washington

INITIATED BY: Amy Carbajal, Community Reinvestment

Recommendation: Approval is requested to enter into a Memorandum of Agreement with the Housing Authority to redevelop the Booker T. Washington housing development.

Background: The Housing Authority has responded to opposition to the original Booker T. Washington redevelopment plan in the Liberty District and develop an alternative plan for the redevelopment of this site. The new site for the first 100 units will be at the Chapman Homes site. The new three story development will be set aside for senior citizens. Currently, the Housing Authority has approximately 100 Senior, public housing residents that may be eligible for the new units.

Phase II of the Booker T. Washington redevelopment will follow the original plan and will be built on the north side of the existing site. The site at the corner of Veterans and Victory will be demolished to create an opportunity for commercial development.

The Housing Authority is still seeking a 2013 Low Income Housing Tax Credit to fund the development. That application is due in June, 2013. The Housing Authority is asking for a financial commitment from the City in the amount of $2,500,000. This will be paid in the following installments: $400,000 for five years and $500,000 for the sixth year. The first payment will be due in 2015. The Housing Authority will provide the City with a prorate share of the proceeds from the sale or lease of property.

Analysis: The redevelopment of Booker T. Washington is in the best interest of the City of Columbus and residents.

Financial Considerations: Funding option to be considered are an Economic Development reserve, if approved by council in the FY14 budget, or the General Fund-Fund Balance. The Economic Development reserve is established by a mileage rate pursuant to O.C.G.A. 48-5-350. This statute allows many types of development projects to be funded by county governments and their Development Authorities with a separate mileage funding up to 3 mills.

Projected Annual Fiscal Impact Statement: The monthly installments will impact either the General Fund or the Economic Development Reserve, if established.

Legal Considerations: All commitments are contingent upon the Housing Authority's successful tax credit application. If the application is not successful, there are no legal obligations to commit property or funding.

Recommendations/ Actions: Approve the Resolution and Memorandum of Agreement between the City and the Housing Authority to redevelop the Booker T. Washington housing development.





A RESOLUTION

NO. _____


A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH THE COLUMBUS HOUSING AUTHORITY FOR THE BOOKER T. WASHINGTON APARTMENTS REVITALIZATION PLAN DATED APRIL 2013; ENDORSING THE APPLICATION BY THE HOUSING AUTHORITY OF COLUMBUS, GEORGIA/COLUMBIA RESIDENTIAL PARTNERSHIP TO THE GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS FOR LOW-INCOME HOUSING TAX CREDITS AND AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WHICH PROVIDES FINANCIAL ASSISTANCE TO CONSTRUCT BOOKER T. APARTMENTS PHASE I – A MULTI-FAMILY “HOUSING FOR OLDER PERSONS” COMMUNITY TO BE LOCATED AT 3725 CHAPMAN WAY, COLUMBUS, GEORGIA; AND FOR OTHER PURPOSES.

WHEREAS, a Revitalization Plan (the “Plan”) for Booker T. Washington Apartments (BTW), 500 5th Avenue, Columbus, Georgia dated April 2013 has been presented to City Council and is attached to this Resolution as Exhibit “A”. The Plan includes the relocation of all BTW residents, the demolition of the current 392 severely distressed housing units and the redevelopment of BTW into a new master planned, mixed-income, mixed-use community. It is currently contemplated the construction of approximately 200 multi-family rental units located on two separate sites, future commercial/retail space, and related on-site infrastructure improvements (the “Development”); and,

WHEREAS, it has been determined that the Development shall be accomplished in two phases with the first phase of the Development of approximately 100 multi-family units of “housing for older persons” located on the former Chapman Homes site, 3725 Chapman Way, (Phase 1) and the second phase being the development of approximately 100 new multi-family rental units and potential commercial and retail development on the site of the existing BTW property (“Phase 2”); and,

WHEREAS, the City Council approves the Revitalization Plan for Booker T. Washington Apartments – a multi-phase redevelopment project; and,

WHEREAS, in furtherance of the BTW Revitalization Plan, HACG with their developer/partner, Columbia Residential, is applying to the Georgia Department of Community Affairs (DCA) for 2013 low-income housing tax credits (LIHTC), which is a highly competitive process requiring documentation of support from the City, to construct BTW Phase 1; and,

WHEREAS, a summary of said application is attached hereto as Exhibit “B”; and,

WHEREAS, the site of the proposed off-site community is located within Census Tract 33.00; and,

WHEREAS, the City and the Authority acknowledge and agree that financial contribution to the Development in the total amount of $2,500,000 ($1,000,000 for Phase I and $1,500,000 for Phase 2) is required from the City; and,

WHEREAS, the Authority commits to a prorated share of the net proceeds from the sale or gross proceeds from the lease of commercial development with the City in order to partially recoup the tax payer’s investment in the development; and,

WHEREAS, in order to comply with the requirements set forth in the foregoing for the Authority’s LIHTC application, the City and the Authority have agreed to enter into and execute a Memorandum of Agreement substantially in the form attached as “Exhibit “C”; and,

WHEREAS, the City will participate in the redevelopment of the project by providing $2,500,000 in five annual installments of $400,000 and one installment of $500,000 beginning in FY 2015.

NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:

That the City Manager is hereby authorized to enter into an agreement with the Booker T. Washington Apartments Revitalization Plan dated April 2013 and endorses the application by the Housing Authority of Columbus, Georgia and their development partner, Columbia Residential, to the Georgia Department of Community Affairs for low-income tax credits to construct the proposed Booker T. Washington Apartments – Phase 1. In addition the City Council authorizes the City Manager to enter into the Memorandum of Agreement committing $2,500,000 of City funds for two phases of redevelopment.


___________

Introduced at a regular meeting of the Council of Columbus, Georgia, held the _________ day of _____________ 2013, and adopted at said meeting by the affirmative vote of _____________ members of said Council.

Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.

_____________________________ _________________________

Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson,Mayor