Fort Walton Beach Council minutes — 11-10-09 special minutes — reading text

31 MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA SOUND SIDE HOUSING DEVELOPMENT NOVEMBER 10, 2009 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on Tuesday, November 10, 2009, at 5:00 p. m. in the Council Chambers at City Hall, with the following members present: Mayor Mike Anderson Councilmen: Mike Holmes, Virgil Miller, Dennis Reeves, Bill Garvie, Bobby Nabors, Bill Patterson, and Dick Rynearson Also Present: Bob Mearns, City Manager; Helen Spencer, City Clerk; Toni Craig, City Attorney; and Department Directors PURPOSE The purpose of the Special Council meeting is a presentation and update on the Sound Side Housing Development. CALL TO ORDER/ PLEDGE OF ALLEGIANCE The Mayor called the meeting to order and led in the Pledge of Allegiance. APPROVAL OF AGENDA Mr. Rynearson moved to approve the agenda as the business of the day. Mr. Garvie it carried Holmes, Miller, Reeves, Garvie, seconded motion and unanimously with Nabors, Patterson, and Rynearson in favor. SOUND SIDE HOUSING DEVELOPMENT Presentation and update on the Sound Side Housing Development. The Mayor noted that Council will be asked to make a policy decision on whether or not to go forward with providing assistance to make the project feasible. He said the funding aspect will be taken care of after Council has decided whether or not to go forward. Michael Beedie, City Engineer, briefly reviewed the background on the project that will replace 50 units with a 200 -unit affordable housing development which initially applied for funding through tax credits through Freddie Mac but has since fallen through. Tim Bolduc, Building Official, gave a power point presentation with an overview of the affordable housing development which meets the goal of the CRA Plan to provide a wide range of quality housing opportunities and choices for people of all income levels; will provide workforce housing and market housing through the allocation of units based on the income of potential residents with families earning 60% of the Area Median Income ( AMI) to occupy 80% of the units and families earning between 80% to 120% of the AMI to occupy the remaining 20% of the units; explained when the funding source changed it created a gap with an estimated funding shortage of approximately $ 2. 5 million; and a potential solution to close the funding gap would be for the City to provide in -kind services for the project. He explained the preliminary estimate for the to construct the City to provide in -kind services is $ 2, 000,000 for labor and materials infrastructure including demolition, potable water, fire service, sanitary sewer, stormwater, site grading, sidewalks, curb and gutter, and paving, and a cash outlay of $ 200, 000 to pay for a current market rate study, survey information, engineering work, submitting an application to HUD, and other items needed to get to the closing and which would be reimbursed upon closing.He mentioned the PUD documents would need to be amended to give the City easements to all the right -of -way work, and that the City will collect the user fees on all the utilities as well. 32 Special Council 11 - 10 -09 SOUND SIDE HOUSING DEVELOPMENT cont. Discussion was held on the desire for additional information on the fair market value of the 2. 7 acres givento the Housing Authority, information on the $ 200, 000 investment to cover preclosing costs, market study, architect and engineer fees, and to submit the application to HUD, etc., and an updated marketing analysis. The Mayor opened the floor for public input. Kabe Woods, 240 Brooks Street, suggested the need for another financial assessment and if there is the need for thin project in a market that may not support it. As no one further wished to speak public input was closed. Mr. Garvie moved to approve the concept of the Sound Side Affordable Housing project with the understanding there will be a $ 2 million contribution by the City ( in the form of cash, labor, and materials). Mr. Holmes seconded motion. Mr. Nabors moved to, amend the motion to support staff moving forward on the project and to give staff an opportunity to look for a funding source for the initial $ 200, 000.00 investment and return with information on the market analysis and the financial statistics. Mr. Reeves seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. The Mayor called for the vote on the motion, as amended, and it carried unanimously with Holmes, Miller, Reeves, Garvie, Nabors, Patterson, and Rynearson in favor. ADJOURN Being no further busineIss, the meeting adjourned at 5: 50 p. m. APPROVED: MAYOR: ATTEST: CITY CLERK ddm