Agenda Item # 1
Delayed 1/8/13 Agenda
Columbus Consolidated Government
Council Meeting
01/22/2013
Agenda Report # 008
TO: Mayor and Council
SUBJECT: Housing Authority of Columbus for Redevelopment of Booker T.
Washington Public Housing - Memorandum of Agreement
INITIATED BY: Amy Carbajal, Community Reinvestment Department
Recommendation: Approval is requested for the City Manager to enter into a
Memorandum of Agreement with the Housing Authority for the Redevelopment of the
Booker T. Washington Public Housing site as presented to Council by Housing
Authority Executive Director, Len Williams, on December 11, 2012.
Background: The City adopted the Liberty District Master Redevelopment Plan in
an effort to revitalize the African American Entertainment District and offer
improved housing and commercial options for residents. A critical element to
this revitalization is the redevelopment of the Booker T. Washington public
housing site. The Housing Authority is pursuing a Low Income Housing Tax
Credit application to fund the redevelopment of this public housing site. A
requirement of the application is site control of the on-site and off-site
housing locations. The City has been and continues to purchase land in the
Liberty District with 1999 SPLOST funds and in accordance with the Liberty
District Master Redevelopment Plan as adopted by Council.
According to the application, an acceptable form of site control is a
Resolution and/or Agreement which indicates that the Housing Authority of
Columbus will be given the option to acquire these properties if awarded the
Low Income Housing Tax Credit Application. Without this site control, it is
not likely that the Housing Authority will have success in their application
for Tax Credits. By offering the Option to Acquire, the City can protect the
SPLOST investment in the event the application is not successful.
In addition to site control, the Housing Authority is also requesting that the
City participate in filling a $3,000,000 funding gap. The gap funding will be
paid in six annual installments of $500,000. In return, the City will share in
any net proceeds from the sale and/or development of the retail/commercial
portion of the Development on the basis of the prorata share of funds that each
entity has contributed toward the Development.
A draft copy of the proposed agreement was presented to Council on December 11,
2012 by Housing Authority Executive Director, Len Williams and is attached for
your review.
Analysis: The redevelopment of this public housing site is in the best
interest of the City, the residents of the Booker T. Washington development and
the Liberty District.
Financial Considerations: The 1999 SPLOST funds will be used to acquire the
properties.
Projected Annual Fiscal Impact Statement: All properties acquired will utilize
1999 SPLOST funds. The monthly installments will be made in the amount of
$500,000 each year for 5 consecutive years.
Legal Considerations: All properties have been purchased within the legal
parameters of the SPLOST and Liberty District Master Redevelopment Plan. 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 a resolution allowing the City Manager to
enter into a Memorandum of Agreement with the Housing Authority for
Redevelopment of Booker T. Washington Public Housing site.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WHICH
PROVIDES THE HOUSING AUTHORITY OF COLUMBUS AN OPTION TO ACQUIRE CITY-OWNED
LIBERTY DISTRICT PROPERTIES FOR THE PURPOSE OF THE BOOKER T. WASHINGTON PUBLIC
HOUSING PROJECT REDEVELOPMENT.
WHEREAS, the Authority (together with its development partner) is engaged in
the revitalization of the Booker T. Washington public housing community (?BTW?)
into a new mixed-income, mixed-use community; and,
WHEREAS, the City is committed to the general revitalization of BTW and the
portion of Columbus, Georgia known as the ?Liberty District? (the ?Liberty
District?); and,
WHEREAS, the revitalization of BTW will include the demolition of its current
392 severely distressed housing units, its management office and existing site
improvements; the redevelopment of BTW into a new master planned, mixed-income,
mixed-use community, currently contemplated to include a total of 200
multi-family rental units located on two separate sites, future
commercial/retail space, and related on-site infrastructure improvements (the
?Development?); and,
WHEREAS, the Development is of enormous importance to the economic health of
the City and the areas of the City known as BTW and the Liberty District; and,
WHEREAS, it has been determined that the Development shall be accomplished in
two phases with the first phase of the Development being the demolition of the
current BTW and the development of approximately 100 multi-family rental units
located in the Liberty District (?Phase 1?) and the second phase being the
development of approximately 100 new multi-family rental units and potential
commercial and retail developments on the site of the existing BTW property
(?Phase 2?); and,
WHEREAS, the City currently has legal title to or has under option to purchase
several lots in the three block area surrounding the Liberty Theater, as more
fully described on Exhibit A attached hereto (the ?City Property?), which is
the proposed site of Phase 1 development; and,
WHEREAS, as part of its contribution to the Development, the City has agreed to
transfer ownership of the City Property to the Authority at no cost to the
Authority (the ?Property Transfer?) and is also requested to make a financial
contribution to the Development; and,
WHEREAS, the Authority intends to submit a Low-Income Housing Tax Credit
Application in 2013, which is a highly competitive process requiring
documentation of site control and support from the City; and,
WHEREAS, City and the Authority acknowledge and agree that the City must have a
binding obligation to transfer the City Property to the Authority prior to the
Authority?s submission of its Low-Income Housing Tax Credit (LIHTC) application
to the Georgia Department of Community Affairs (DCA), but in no event later
than May 31, 2013, provided however, the actual transfer of the City Property
to the Authority will not occur until the DCA awards the Authority the LIHTC?s
necessary to fund a portion of the Development; and,
WHEREAS, the Housing Authority commits to a prorated share of the commercial
development with the City in order to 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 binding Option to Purchase the City Property
substantially in the form attached hereto as Exhibit ?B?; and,
WHEREAS, the City will also participate in the redevelopment of project by
providing $3,000,000 in six annual installments of $500,000 beginning in
FY2015; and,
WHEREAS, the Housing Authority will provide a prorata share of the commercial
development with the City in order to repay the taxpayers investment to include
the value of donated property.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is hereby authorized to execute a Memorandum of
Agreement, which provides the Housing Authority of Columbus the Option to
Acquire City-owned Liberty District properties in the event the Low Income
Housing Tax Credit application is successful for the purpose of redevelopment
of the Booker T. Washington public housing site.
___________________________
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 __________.
Councilor Woodson voting __________.
______________________________ _________________________
Tiny B. Washington, Clerk of Council , Mayor
Attachments