Agenda Item # 3
Columbus Consolidated Government
Council Meeting
12/05/2017
Agenda Report # 55
TO: Mayor and Councilors
SUBJECT: Request to Sub-Lease Claflin School
INITIATED BY: Community Reinvestment Department
Recommendation: Approval is requested to allow the Friends of Historic
Claflin, Inc. to sub-lease Claflin School to the joint venture, Claflin School
Preservation, L.P., in order to obtain State Historic Tax Credits for the
conversion of the school into 44 (+/-) units of affordable housing, with an
area of the school to be set-aside for educational programs and to display the
school?s history.
Background: On May 9, 2017, per Resolution 124-17, City Council approved
revising the lease agreement between the Columbus Consolidated Government and
Friends of Historic Claflin to allow for Oracle Consulting Services, LLC
(developer) to convert the school into 44 (+/-) units of affordable housing,
with an area of the school to be set-aside for educational programs and to
display the school?s history. The developer applied for Low-Income Housing Tax
Credit (LIHTC) through the Georgia Department of Community Affairs (DCA) and
was successfully awarded those credits.
As part of this development a new joint venture was created called Claflin
School Preservation, L.P., for the sole purpose of preserving and developing
this property. This joint venture is a limited partnership between the
investors, Oracle Consulting Services, LLC, and the Friends of Historic
Claflin, Inc. The developer has been informed recently that in order to obtain
State Historic Tax Credits through the Georgia Department of Revenue, that the
entity which will develop and own the project must be named holder of site
control (?Lessee?). Due to this they are requesting that the City allow Friends
of Historic Claflin to sub-lease the property to Claflin School Preservation,
L.P. in order to proceed with this development. All of the terms of the current
lease agreement will remain the same.
Analysis: The redevelopment of this property will assist with the elimination
of blight, develop approximately 44 units of affordable housing, and create
local jobs. If the property is not sub-leased to the joint venture, they will
not be able to apply for State Historic Tax Credits which will result in the
project not moving forward.
Financial Considerations: The City will not incur any expenses associated with
the redevelopment of Claflin School. Claflin School Preservation, L.P. will be
responsible for all costs associated with the construction and operations of
this facility.
Legal Considerations: Council must approve all real estate transactions.
Recommendations: Authorize Friends of Historic Claflin to sub-lease the
property to Claflin School Preservation, L.P. to obtain State Historic Tax
Credits and proceed with the conversion of the school into 44 (+/-) units of
affordable housing, with an area of the school to be set-aside for educational
programs and to display the school?s history.
A RESOLUTION
NO. ________
A RESOLUTION AUTHORIZING THE FRIENDS OF HISTORIC CLAFLIN, INC TO SUB-LEASE THE
CLAFLIN SCHOOL TO THE JOINT VENTURE, CLAFLIN SCHOOL PRESERVATION L.P., TO ALLOW
FOR THE CONVERSION OF THE SCHOOL INTO AFFORDABLE HOUSING.
WHEREAS, pursuant to the authorization of Resolution No.124-17 Friends of
Historic Claflin, Inc. (FHC) is currently leasing Claflin School at 1535 5th
Avenue, and is working with Oracle Consulting Services, LLC to redevelop the
school by converting it into affordable housing; and,
WHEREAS, the project was recently awarded Low-Income Housing Tax Credits
(LIHTC) through the Georgia Department of Community Affairs (DCA) and a joint
venture has been created called Claflin School Preservation, L.P. for the sole
purpose of preserving and developing this property; and,
WHEREAS, the Friends of Historic Claflin has requested to sub-lease the
property to the joint venture in order to obtain State Historic Tax Credits
from the Department of Revenue; and,
WHEREAS, the initial lease as amended between Columbus and Clafin requires that
the City consent to any sub-lease or assignment of the property; and,
WHEREAS, the redevelopment of this property will assist with the elimination of
blight, develop new units of affordable housing, and create new local jobs.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is authorized to consent on behalf of Columbus to a
sub-lease between the Friends of Historic Claflin, Inc. and the joint venture,
Claflin School Preservation, L.P., in in substantially the form attached.
_________________
Introduced at a regular meeting of the Council of Columbus, Georgia, held the
5thday of _December, 2017 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 Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
______________________________ __________________________
Tiny B Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
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