ITEM TITLE:
#21-56 - Authorizing an Application to the Alaska Housing Finance Corporation for the Special Purpose Goal Funding Program, Including Commitment of City Land, Construction of Infrastructure Improvements, and Incentives to Assist in the Development of Senior Housing Apartment Complex in the City of Valdez (Postponed from December 21, 2022)
SUBMITTED BY: Mark Detter, City Manager
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
Approve Resolution # 21-56
SUMMARY STATEMENT:
For the majority of 2021 the City of Valdez has been working with Cordes Development 3, LLC creating a grant application for tax credits and grants funds for a new Senior Housing Complex. Cordes Development 3 and the City of Valdez have developed terms that create the following guidelines:
-A multi-party participation agreement creating a cooperative structure between the City of Valdez, Cordes Development 3, LLC, and Valdez Senior Housing Associates, LLC (a entity responsible for operating the newly proposed Senior Housing, LLC). Essentially, the City of Valdez participation in the partnership allows the City to act as a conduit for Grant funding.
-The City of Valdez to dedicate a portion of land in the Valdez Medical Park addition to a new Senior Housing Complex.
-The City of Valdez to construct approximately $1 million in off-site infrastructure improvements, including reconfiguration of street, construction of water, sewer, storm drainage, installation of street lighting and possibly construction of sidewalks. Community Development Block Grant application has been submitted to the State of Alaska for such infrastructure.
-The City of Valdez has in principal agreed to $300K incentive for the construction of up to 30 units in the Senior Housing Complex (after issuance of a Certificate of Occupancy).
-Cordes Development 3, LLC will handle logistical matters related to tax credit and grant application.
-Cordes Development 3, LLC will construct the new Senior Housing Complex in the Medical Park Addition if successful in receiving tax credit and grant funds for the project.
-Cordes Development 3, LLC will be charged with arranging for the operation and maintenance of the Senior Housing Complex.