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HomeMy WebLinkAbout11-018 Concerning Affordable Housing Page 1 of 3 RESOLUTION NO. 11-018 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON CONCERNING AFFORDABLE HOUSING RECITALS: A. Council held a public hearing on April 18 and May 2, 2011. The public hearing concerned whether several properties: a) are surplus to the City's needs (and should be disposed of without making provision for affordable housing; and/or b) should be designated for affordable housing purposes and should be surplused or retained for that purpose; and/or c) should be retained for some other public purpose. B. The City has been in the process of identifying City-owned properties which may be designated to help meet affordable housing needs. To this end, City Council previously identified seven City-owned properties that may be suitable for development of affordable housing (Resolutions 09-035, 10-024). C. Subsequently, Council amended Chapter 3.44, of the Port Townsend Municipal Code Regarding Disposition of Surplus Property, and Adding Consideration of Disposition of Property for Affordable Housing. As noted to Council at the time of the Chapter 3.44 PTMC amendments, technically, if property is retained in City ownership but leased out to a nonprofit for affordable housing (or other public use), the property is not "surplused." Rather, the property is designated for a public purpose, and the designation is implemented through an agreement with a nonprofit entity.) D. At the public hearings, staff recommended that three properties should be designated for low income affordable housing purposes (Cherry Street, Discovery Road, and Beech Street). E. All three properties are located within Tier 1 (i.e., in close proximity to infrastructure) and are not currently being used, nor do they have a planned use. F. On May 2, 2011, Council moved that the Council designate the Beech, Discovery and Cherry properties for affordable housing purposes and directed the City Manager to report to the City Council with recommended next steps. G. The City Manager has recommended the following: 1. That Council establish within the budget a housing fund in order to allow the City to better track expenditures and revenues related to housing programs. The fund would maintain accounts related to receipts and expenditures related to housing grants, and other funds received or expended by the City for low income and affordable housing purposes. For example, if a property designated for affordable housing were sold, in order to leverage funds for other affordable housing projects Page 2 of 3 or purposes, the funds from a sale would be receipted into the housing fund. 2. That the Council direct the City Manager to work with owners and possibly providers to reconfigure Cherry Street to establish buildable lots for affordable housing, subject to final Council approval on agreements and configuration. 3. That Council direct that the Beech Street property(which Council designate for affordable housing) not be marketed at this time for affordable hosing, but that the process for comprehensive plan amendment concerning the property first take place. In the meantime, nothing prevents a provider from making a proposal for development of affordable housing on the property. Following the comprehensive plan amendment process, Council would determine next steps for this property in connection with the development of affordable housing. 4. That Council declare that any provider seeking to develop affordable housing in connection with use or conveyance(by deed or lease) of City property must be able to assure the City in form acceptable to the City Council, City Manager and City Attorney that the provider's project is viable and will be timely completed, and that the property will be maintained in affordable housing status with guarantees acceptable to the City Council and not be transferred to a person who does not meet income qualifications specified in the deed or lease agreement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port Townsend as follows: The City Council 1. Determines to establish within the budget, by way of separate Ordinance, a housing fund within the budget in order to allow the City to better track expenditures and revenues related to housing programs. The fund would maintain accounts related to receipts and expenditures related to housing grants, and other funds received or expended by the City for low income and affordable housing purposes. For example, if a property designated for affordable housing were sold, in order to leverage funds for other affordable housing projects or purposes, the funds from a sale would be receipted into the housing fund. 2. Directs the City Manager to work with owners and possibly providers to reconfigure Cherry Street to establish buildable lots for affordable housing, subject to final Council approval on agreements and configuration. 3. Directs that the Beech Street property(which Council designated for affordable housing) not be marketed at this time for affordable housing, but that the process for comprehensive plan amendment concerning the property first take place. In the meantime, nothing prevents a provider from making a proposal for Page 3 of 3 development of affordable housing on the property. Following the comprehensive plan amendment process, Council will determine next steps for this property in connection with the development of affordable housing. 4. Declares that any provider seeking to develop affordable housing in connection with use or conveyance (by deed or lease) of City property must be able to assure the City in form acceptable to the City Council, City Manager and City Attorney that the provider's project is viable and will be timely completed, and that the property will be maintained in affordable housing status and not transferred to a person who does not meet income qualifications specified in the deed or lease agreement. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 20th day of June 2011. b 4.....:.,14.1 Michelle Sandoval, Mayor Attest Approved as to form: ,_ __ _,. \J--(i. k.,.„.„, , , _, e-c\_Pamela Kolacy, MMC John P. Watts City Clerk City Attorney