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HomeMy WebLinkAbout042417CITY OF PORT TOWNSEND MINUTES OF THE CITY COUNCIL SPECIAL BUSINESS MEETING OF APRIL 24, 2017 CALL TO ORDER/PLEDGE OF ALLEGIANCE The Port Townsend City Council met in special session on the 24th day of April 2017 in the Council Chambers at 540 Water Street. Mayor Deborah Stinson called the meeting to order at 6:30 p.m. ROLL CALL Councilmembers present at roll call were Pamela Adams, David Faber, Robert Gray, Michelle Sandoval, Amy Howard, and Deborah Stinson with Catharine Robinson excused. Staff members present were City Manager David Timmons, City Attorney Steve Gross, Finance and Administrative Services Director Nora Mitchell, Public Works Director Ken Clow, and City Clerk Joanna Sanders. NEW BUSINESS Resolution 17-019 Related to Affordable Housing at the City's Cherry Street Properties; Authorizing the City Manager to Negotiate and Execute an Agreement with Homeward Bound D/B/A Olympic Housing Trust, and Authorizing a Loan City Manager David Timmons gave the staff report on the parcel as detailed in his memorandum and briefed Council on the residential zoning and the financing needed. He introduced Mark Blatter formerly of Bainbridge Island who is assisting with coordination of this project with Nickels Brothers House Moving. The purchase price and relocation fee is $205,000, and there is a "not to exceed" amount of $250,000 which should include site preparation costs. If the Olympic Housing Trust is unable to put together the financing, the City might need to establish another partnership. If not used for affordable housing, the property and unit would revert back to the City. To provide the loan, General Fund reserves would be used and a 2017 supplemental budget request would be sought. Next steps in the tight timeline include site design preparation, possibly lessening the slope on the property, and water line upgrade and relocation. A hearing notice has been set for May 8 to surplus the property. He distributed a handout with a photograph of the four-plex unit. Mr. Timmons reiterated the long-term goal of using this property for affordable housing. He responded to Council questions about General Fund expenditures and said Staff could explore alternatives such as system development charge revenues to complete the water main and fire protection instead of using Council reserves. He addressed questions about the potential for a property exchange with Grace Lutheran Church to address the current encroachment. He and Mr. Blatter also estimated development costs to be $150,000 to $175,000 to excavate, City Council Special Business Meeting April 24, 2017 Page 1 of 2 build the foundation, and hook up the utilities. The four additional units in the basement would require additional conversion and that space would be unfinished for the time being. There was Council discussion about the timing, acquisition and development cost as well as interest in targeting this unit for very low income versus low income. Staff noted there would need to be further exploration of additional financing to make it more affordable. Public comment: Coe Hutchison, the Pastor at Grace Lutheran Church, had questions about clearing and grading and encroachments and requested more information to share with their members. Motion: Michelle Sandoval moved to approve Resolution 17-019 Related to Affordable Housing at the City's Cherry Street Properties; Authorizing the City Manager to Negotiate and Execute an Agreement with Homeward Bound D/B/A Olympic Housing Trust, and Authorizing a Loan. David Faber seconded. Vote: motion carried unanimously, 6-0 by voice vote. ADJOURN There being no further business, the meeting adjourned at 7:20 p.m. Attest: Joanna Sanders, CMC City Clerk City Council Special Business Meeting April 24, 2017 Page 2 of 2