Full Text
Page 1 of 6 Ogden City Council Meeting: February 28, 2017 INFILL HOUSING PROJECT – 2100 PORTER AVENUE Action: Adopt or Not Adopt Resolution Executive Summary The Council will consider a Resolution approving construction of a 21-lot infill housing project at approximately 2100 Porter, the site of the former Dee School. The project will be financed through a combination of a bank line of credit, CDBG funds, CIP funds, Quality Neighborhood funds, and sales proceeds. The Council has previously appropriated the funds for the project. No additional budget actions are required. This is a multi- year project that is estimated to be completed in early 2021. Background December 9, 2008 The Ogden City Council and Ogden City Redevelopment Agency approved Resolutions authorizing the City and RDA to enter into an Interlocal Agreement with the Ogden School District regarding future development of various Ogden City and School District properties. October 27, 2009 Mayor Matthew Godfrey, acting in his capacities as both Mayor and RDA Executive Director, executed an Interlocal Agreement between the City, the RDA, and the Board of Education of Ogden School District regarding the conveyance and future development of property owned by the City and School District. February 5, 2013 The City Council adopted Resolution 2013-2, authorizing the Mayor to execute an Interlocal Agreement with Ogden School District. The Resolution identified several public policy factors supporting the City and the District partnership which included development of new inner- city housing at the Dee School site. The Interlocal Agreement outlined the City’s and School District’s responsibilities in the development of a new school—now known as New Bridge--and for conveyance of the ---PAGE BREAK--- Page 2 of 6 Ogden City Council Meeting: February 28, 2017 existing Dee School property to the City. All School District and City responsibilities have now been fulfilled. March 27, 2015 Ogden City, Ogden School District, and the LDS Church entered into a tri- party agreement. The agreement provided for the following: Allowed the transfer of a one-acre parcel of land between the School District and the Church prior to the sale of property to the City Provided for the value of one half acre of land be credited towards the sale price of the old Dee School as the planned Community Center did not come to fruition Revised the schedule for opening of the school November 24, 2015 The City Council adopted Joint Resolution 2015-29 approving the Quality Neighborhoods Initiative (QNI). The Joint Resolution identified the primary purpose of the QNI--a concerted revitalization effort in Ogden’s legacy neighborhoods. The strategy document outlined the actions CED staff will take to implement the QNI goals and vision for the community. To reach this vision, CED is taking a multi-faceted approach to tackling the issues, focusing on efforts that will 1) reduce the concentration of low-income and sub-standard housing in the area, 2) increase the standards of care for residential units, 3) increase owner-occupancy rate, and 4) increase property values. November 24, 2015 The Council approved Resolution 2015-18 authorizing amendments to the 2013 Interlocal Agreement with Ogden School District to align with the tri-party agreement between the City, OSD, and the LDS Church. The amendments were as follows: Changed the school opening date to the 2016-17 school year ---PAGE BREAK--- Page 3 of 6 Ogden City Council Meeting: February 28, 2017 Changed the date of transfer of the Dee School building and site at 550 22nd Street to on or before February 28, 2017 Allowed a one-acre parcel to be transferred to the Church prior to the sale to the City Allowed the value of the City’s ½ acre property transferred to the District for the west entry to be deducted from the purchase price of the old Dee School site The Council also adopted Resolution 2015-17 amending the Infill Housing Program Guidelines to provide that plans for development of more than ten homes or projects of more than $250,000 would require additional approval of the Council. Both of these actions were adopted as part of the overall effort to develop the Dee School property and other infill housing. A copy of the infill housing guidelines is attached. February 23, 2016 The Council approved Resolution 2016-7 authorizing the execution of a Real Estate Purchase Contract (REPC) for purchase of the former Dee School property located at 550 22nd Street. Terms and conditions of the REPC were as follows: Seller: Board of Education of Ogden City School District Description: All parcels owned by Seller on Block 44, Plat A (3.8 Acres) except Excluded Real Property (1/2 acre being transferred to Church pre Tri-party Agreement) Address: 550 22nd Street Purchase Price: $595,714 Terms: Value of ½ acre transferred to Church deducted 78,408) Value of Acquisition Agent Services deducted* ($175,416) Balance To Escrow: $341,890 Balance to BOE after deductions for asbestos abatement and demolition. Closing Costs: Each party pays one-half ---PAGE BREAK--- Page 4 of 6 Ogden City Council Meeting: February 28, 2017 Closing Date: July 15, 2016 *Ogden City provided Acquisition Agent services for Ogden City School District to negotiate and acquire property for development and construction of the new school at 2250 Madison. September 30, 2016 The City took ownership of the Dee School property. Demolition on the property commenced mid-January 2017. February 7, 2017 The City Council office received an Administrative Transmittal requesting approval of a 21-lot development in the vicinity of 2100 Porter Avenue, the former Dee School site. February 21, 2017 The Council held a work session to review and discuss the proposed 2100 Porter Avenue development. Proposal The Administration is proposing a 21-lot development at 2100 Porter Avenue, the former Dee School site. The project will be built in phases starting with four homes. Project Specifics This property is zoned R-2EC and requires buildings of sufficient size and quality to fit with the historic nature of the neighborhood. Home designs will be a Modern Prairie Style averaging 2,000 square feet. Exterior materials will be stone and wood siding. Lots will be fully fenced and landscaped. The initial sales price is expected to be in the $230,000 range. Buyer Eligibility Although this is project is a federally subsidized infill housing project utilizing CDBG funds, the homes can be included in the overall portfolio ---PAGE BREAK--- Page 5 of 6 Ogden City Council Meeting: February 28, 2017 of the City. Therefore, there are effectively no income requirements for the homes in this project—anyone is eligible to purchase. Financing The following tables show the sources and uses of the funds for the project: All funds have been previously appropriated by the Council. No additional funds or budget actions are required. Schedule The following is an estimated timeline for the project: Acquisition: Completed September 2016 Land Development: Feb 1, 2017 Nov 1, 2017 Sources of Funds Amount Bank Line of Credit 3,571,400 $ Sales Revenue 312,086 $ CDBG Funds 850,187 $ Quality Neighborhood Funds 38,261 $ City Credits 253,824 $ City CIP 1,500,000 $ TOTAL 6,525,758 $ Uses of Funds Amount Land Acquisition/Demolition 774,234 $ Land Development 1,570,510 $ Housing Construction 3,609,661 $ Commissions/Closing 312,086 $ Overhead 259,267 $ TOTAL 6,525,758 $ ---PAGE BREAK--- Page 6 of 6 Ogden City Council Meeting: February 28, 2017 Phase I Home Construction: Nov 1, 2017 – April 1, 2018 (First Four Homes) Sales (First Four Homes): Nov 1, 2017 July 1, 2018 Subsequent Phases: Approximately seven months for each phase. Estimated completion date sometime in 2021 Attachments Infill Housing Guidelines Questions 1. Please review the history of this project. 2. Please review the proposed project and potential benefits to the City. Council Staff Contact: Janene Eller-Smith, (801) 629-8165 ---PAGE BREAK--- 1 (5/15) INFILL HOUSING PROGRAM GUIDELINES I. PROGRAM SUMMARY The Community Development Division administers the Infill Housing Program. This Guideline applies to the properties owned by Ogden City. The intent of this Program is to revitalize older neighborhoods. The mechanism of this Program is to facilitate construction of new housing in established neighborhoods through assembling land, undertaking site preparation work and vertical construction, and filling financing gaps. The eventual result is a sale to owner-occupant buyers. The primary target area for this Program is the East Central Planning Community. II. REQUIREMENTS 1. Property Selection a. The following types of properties may be considered: - Inner-block parcels on 10-acre blocks. -Un-developed vacant parcels - Vacant lots with unusual size or shape, in combination with other strategic acquisitions to make the parcels feasible to develop. - Acquisition and demolition of deteriorated housing or other structures that are not feasible to renovate. b. Priority will be given to properties in historic districts, in areas where other concerted revitalization is under way, and where development will remove impediments to the success of other potential revitalization efforts. 2. Uses of Funds a. Categories: i. Property Acquisition and Holding Costs ii. Land Clearance and Demolition iii. Environmental, Planning and Designs iv. Site Preparation v. Pedestrian Corridors associated with Infill Housing vi. Public Spaces associated with Infill Housing vii. Open Space associated with Infill Housing viii. Fill Financing Gap on New Construction ix. Staff Costs b. Thresholds: i. Individual projects not exceeding 10 homes on contiguous lots are allowed under these Guidelines. ---PAGE BREAK--- 2 ii. Individual projects exceeding 10 homes on contiguous lots will require approval by the City Council of final development concepts and financing. Prior to City Council approval, funds may be used for: -Individual Property Acquisitions up to $250,000 -Holding Costs -Land Clearance and Demolition -Environmental, Planning and Designs -Site Preparation -Staff Costs 3. Historic Preservation a. National Historic Register: Regardless of the fund source (federal or local) used to acquire and develop properties, and for every property assisted or impacted by the Program, the procedures described in Section 106 of the National Historic Preservation Act of 1966, as outlined in regulations 36 CFR Part 800, will be followed for consultation with the Utah State Historic Preservation Office. This is a means of determining the effect that any city sponsored action may have relative to identifying and determining the effect on historic resources as well as gaining the input of a qualified entity on how to mitigate and reduce negative effects on the historic resource. b. Ogden Landmarks Register: For any property listed on the Ogden City Landmarks Register, the city will follow all procedures established by ordinance prior to conducting any construction or demolition activity. 4. Development & Sale There are two tracks for development and sale of the homes. 1) Ogden City does the development and sells the homes; 2) Ogden City sells the land under a development agreement which enforces the City’s goals for the project, and at a price which facilitates the development. a. Ogden City Development & Sale of Homes i. Architecture & Design: compliant with applicable Community Plans and Zoning Ordinances. Consistent with, or complimentary to development patterns in the neighborhood of the development site. A. Section 504 Accessibility (24 CFR 8.22 and 8.32) may apply for projects with 5 or more residential units in multi-family housing projects. B. Fair Housing Act Accessibility (24 CFR 8.22) may apply for projects with 4 or more residential units in a multi-family housing project. ii. Marketing: Multiple Listing Service, using a local real estate broker. iii. Contracting: Ogden City will obtain competitive bids pursuant to City regulations, and will enter into a contract with a general ---PAGE BREAK--- 3 contractor who has experience in constructing historic-style buildings. Ogden City will obtain from the general contractor a final guaranteed maximum price of construction based on the negotiated scope of work. iv. Pricing: Market Value as determined by appraisal. v. Buyer Income Limit: as dictated by fund source restrictions. vi. Financing: As dictated by fund source regulations, the City may carry back a portion of the sales price as a second mortgage to assure affordability and to enforce the required period of affordability. b. Sale of Land to Outside Developer i. Architecture & Design: compliant with applicable Community Plans and Zoning Ordinances. Consistent with, or complimentary to development patterns in the neighborhood of the development site. A. Section 504 Accessibility (24 CFR 8.22 and 8.32) may apply for projects with 5 or more residential units in multi-family housing projects. B. Fair Housing Act Accessibility (24 CFR 8.22) may apply for projects with 4 or more residential units in a multi-family housing project. ii. Marketing of Land: Multiple Listing Service, using a local real estate broker. Another option is to use a “Request for Proposals” process, pursuant to City regulations. iii. Pricing: -Home Price: homes sold by developer will be at market value. -Land Price: Land will be sold to the developer at market value, as determined by an appraisal. If a development cost analysis predicts that the developer will not be able to achieve the return of land value through the sale of the homes, then a discount on the land price may be needed. In this case, the procedures will be followed as outlined in Ogden City Code section 4-3A-5: CONVEYANCE OF CITY REAL PROPERTY, paragraph A.1., “Every sale, lease, encumbrance, or other conveyance of city owned real property shall be made by the mayor, or under the mayor's express written authority. All conveyances or encumbrances of such property shall be based on the highest and best economic return to the city, except that consideration for property conveyed may be based on other public policy factors if the city council makes a legislative determination that the consideration is adequate.” iv. Development Agreement: A development agreement will be negotiated between the buyer and Ogden City. This will establish design guidelines, schedules, funding sources, home buyer income requirements, marketing plan, financing requirements, pricing ---PAGE BREAK--- 4 requirements, and any other applicable requirements as dictated by fund sources used in the project. v. Financing: As dictated by fund source regulations, the City may carry back a portion of the sales price as a second mortgage from the land buyer and subsequently by the home buyer, to assure affordability and to enforce the required period of affordability. For Further Information call or write: Ogden City Community Development Division 2549 Washington Blvd., Suite 120 Ogden, UT 84401 (801) 629-8940 For Accessibility or Language Assistance help: (801)629-8701 Or visit: http://Assistance.ogdencity.com ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- 2017-3 ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK--- ---PAGE BREAK---