pages: CityCouncil/2022-05-17.pdf, 10
This data as json
body | date | page | text | path |
---|---|---|---|---|
CityCouncil | 2022-05-17 | 10 | successfully built 128 units of affordable housing with the partner and a lower subsidy per unit; staff is confident the City has been set up to meet the 25% affordable housing requirement; APP will not be building the affordable housing units; an affordable housing developer will be brought in to partner with the City and APP to build the affordable housing; the term sheet has a high likelihood of success; the 25% affordable housing units is a City requirement; staff cannot guarantee the success; however, the term sheet puts the City in the best possible position to meet the requirement. Councilmember Herrera Spencer inquired why the City does not put money from the sale of market rate units into a trust until the affordable housing units are built; expressed support for covering 15%. The Planning, Building and Transportation Director responded the investors for the project need to invest millions of dollars to make the project move forward and build infrastructure to prepare the property for vertical developers; investors need to have a return; if the City requires a trust, the project will no longer be financially viable. Councilmember Herrera Spencer inquired whether for sale units might end up being rentals. The Community Development Director responded the determination has not yet been made; stated a mix of market rate and affordable housing units is the current plan; the developer could reconsider if there is a dramatic shift in the market. Councilmember Herrera Spencer inquired whether the for sale market rate units could end up being market rate units for rent. The Community Development Director responded that the approach is not the current plan. Councilmember Herrera Spencer stated the matter provides a sixth amendment to the DDA; inquired the reason the developer has been unable to perform the prior amendments. Karen Tiedemann, Goldfarb and Lipman, responded it is not accurate to state the developer has been unable to perform the various amendments; stated the developer has performed on most of the amendments; previous amendments revised the agreement, but have not released the developer from obligations; the fourth and fifth amendments related to affordable housing and timing; the amendments related to performance of obligations and schedules needed to be revised; a project of significant size and multi-phases typically has a variety of amendments; changes occur over time, many things cannot be predicted and adjustments must be made. Councilmember Herrera Spencer stated inflation is at a current 40-year high; inquired how the high inflation rates will impact the ability to complete the project and perform the sixth amendment. Mr. Doezema responded inflation is not a favorable factor and does not help the project; inflation can drive interest rates up placing downward pressure on sales prices; the project is feasible at this time; a guarantee cannot be made about changes to future conditions. Councilmember Herrera Spencer inquired why staff is not recommending tethering the affordable housing units to market rate units. Regular Meeting Alameda City Council May 17, 2022 10 | CityCouncil/2022-05-17.pdf |