Fort Walton Beach Council minutes — 03-23-2010 special — reading text

113 MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA SOUND SIDE AFFORDABLE HOUSING DEVELOPMENT MARCH 23, 2010 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, March 23, 2010, at 5: 00 p.m. in the Council Chambers at City Hall, with the following members present: Councilmen: Mike Holmes, Dennis Reeves, Bill Garvie ( Mayor Pro Tem), Bobby Nabors, Bill Patterson, and Dick Rynearson Absent: Mayor Mike Anderson; Seat 2 - vacant Also Present: Robert Meams, City Manager; Helen Spencer, City Clerk; Toni Craig, City Attorney; Department Directors and Media CALL TO ORDER The Mayor Pro Tem called the meeting to order and welcomed everyone. He requested anyone who wished to address Council to approach the podium after being recognized, then state his or her name and address for the record. INVOCATION /PLEDGE OF ALLEGIANCE The Mayor Pro Tem gave the invocation and led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Patterson moved to approve the agenda as the business of the day. Mr. Reeves seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor (Seat 2 vacant). SOUND SIDE AFFORDABLE HOUSING DEVELOPMENT Resolution 2010 -12 to utilize CRA funds to provide in -kind services in the not -to- exceed amount of 2, 500,000 to allow the Sound Side Affordable Housing Development to proceed with submitting the necessary items to HUD to secure a conventional loan and proceed with the Build America Bond Program. Michael Beedie, Engineering/Utility Services Director, explained the Sound Side Affordable Housing Development is redevelopment of Germany Terrace from a 50 -unit public housing project to a 200 - unit affordable housing development along Carson Drive SE and Third Street SE owned and operated by an entity of the Fort Walton Beach Housing Authority. He mentioned the partners in completing the development are the Housing Authority represented by the Executive Director Gail Sansbury, and the Housing Authority Board of Commissioners, the development consultant Home Corp represented by Steve Coleman; and the City who will provide assistance through CRA funding in an amount of up to $ 2. 5 million for the installation of the infrastructure and other various costs for the development. He recalled Council tasked staff to have a financial analysis done to determine the feasibility of the project and noted it is attached to the backup with a completed market study; and Council tasked staff to research various payback options. Tim Bolduc, Building Official, gave a PowerPoint presentation that outlined the affordable housing project that will include amenities of a swimming pool, an exercise facility, washer & dryer in every unit, business center, energy efficient, and 9' ceilings; confirmed the project meets the objective of the CRA Plan, Chapter 6 Housing; is consistent with the Urban Master Plan, the Beal Parkway Neighborhood Plan, and meets or exceeds architectural guidelines. 114 Special Council 3 -23 -10 SOUND SIDE AFFORDABLE HOUSING DEVELOPMENT cont. Mr. Bolduc continued the presentation that described the Development Team of Homecorp, the development consultant; Berkadia the mortgage company; the Housing Authority, developer and owner of the project; Multicon; and Recovery.gov; and the City. Steve Coleman, Homecorp, the consultant to assist the Housing Authority in the development of the project, briefly went over the history and successes of Homecorp since 1987 in the development of affordable housing; mentioned their involvement in the project is to provide professional assistance to the Housing Authority, to create the financing structure, to shepherd the financing through HUD and BAB processes, to help in the design of the development, to negotiate with design professionals and the general contractor, all aspects of construction management, and upon completion, provide complete management marketing services. He then explained Berkadia is a HUD, Fannie Mae, Freddie Mac approved lender; explained the Build America Bonds program is designed to replace tax exempt financing, is a direct subsidy from the U.S. Treasury, and allows potential for a payback of the CRA' s investment. James Robbins, speaking on behalf of the Fort Walton Beach Housing Authority Board of Commissioners, expressed appreciation of the effort and excitement over the development. He voiced their hope to continue with progress to move forward and asked Council to continue to support them in the endeavor. Mr. Bolduc went over the City' s involvement to provide funding for the cost of issuance, demolition, infrastructure, and site restoration; to provide, through in -kind services, the labor and materials for the infrastructure and site restoration; and oversight of demolition and paving. He explained what is needed to proceed is for the CRA and City Council to approve an investment in the form of a loan to the Housing Authority of up to $ 2. 5 million, with $ 500, 000 given in cash and $ 2 million for in -kind services. He went over the impact to the CRA budget and noted it will not impact any of the projects planned by the CRA. He explained the City and the Housing Authority will enter into an Interlocal Agreement to repay the loan using the Build America Bond subsidy with the terms of the agreement to be worked out over the next several months, then once completed will be brought back to Council for approval and execution. The Mayor Pro Tem opened the floor for public comment. Steve Fisher, 7 Pryor Road SE, expressed concerns over ADA compliance requirements of the development. Mr. Bolduc assured Mr. Fisher that the development will meet all ADA requirements and offered to meet with Mr. Fisher to review the plans. Brian Rosales, 412 Holmes Blvd, agreed the project fits in well with the CRA Plan and will be a nice project, but disagreed with the City providing funds for the project. As no one further wished to speak, public comment was closed. Discussion included further clarification that the City will use local labor during the construction phase; that the $ 500,000 cash will be used for closing costs, architectural, engineering, and other intangible costs; that the City has enough labor pool to handle the in -kind services for the demolition and installation of the infrastructure; and further explanation on the Build America Bond program.  115 Special Council 3 -23 -10 RES. 2010 -12 — SOUND SITE AFFORDABLE HOUSING DEVELOPMENT The Mayor Pro Tem read Res. 2010 -12 by title. A RESOLUTION OF THE CITY OF FORT WALTON BEACH, FLORIDA, PLEDGING UP TO 2. 5 MILLION IN REVENUE TRUST FUNDS OF THE FORT WALTON BEACH COMMUNITY REDEVELOPMENT AGENCY FOR SITE DEMOLITION, SITE IMPROVEMENTS FOR INFRASTRUCTURE, SITE RESTORATION, AND OTHER COSTS FOR THE FORT WALTON BEACH HOUSING AUTHORITY' S SOUND SIDE AFFORDABLE HOUSING DEVELOPMENT; AND PROVIDING AN EFFECTIVE DATE. Mr. Holmes moved to approve Res. 2010 -12. Mr. Patterson seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor ( Seat 2 vacant). Mr. Rynearson moved to authorize the City Manager, City Attorney, Finance Director, and Engineering & Utility Services Director to develop an Interlocal agreement with the Fort Walton Beach Housing Authority that will include the payback terms of the $ 2, 500,000; and the final Interlocal Agreement to be forwarded to HUD and City Council for final approval. Mr. Reeves seconded motion and it carried unanimously with Holmes, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor (Seat 2 vacant). ADJOURNMENT Being no further business, the meeting adjourned at 5: 50 p.m. APPROVED: MAYOR: Ale '-- -- ATTEST: w ITY CLERK ddm