7.
City Council Special Meeting
- Meeting Date:
- 03/13/2018
- From:
- Charity Lee, Real Estate Manager
TITLE:
Consideration and Approval of the Purchase and Sale Contract: To acquire approximately 2.09 acres of Property located at the Southwest Corner of Lockett Road and North Fanning Drive, Assessor parcel number 108-05-003B, for Affordable Housing.
STAFF RECOMMENDED ACTION:
Approve the Purchase and Sale Contract.
Executive Summary:
On February 20th, 2018, Council approved Ordinance 2018-11 authorizing the acquisition of 2.09 acres of real property (the Property) located at the Southwest corner of Lockett Road and North Fanning Drive, Assessor parcel number 108-05-003B, for the purpose of furthering Council's Goal of Affordable Housing. Staff informed Council that at a future Council Meeting Staff would have an opportunity to approve of the Purchase and Sale Contract prior to entering escrow. Staff is requesting Council approval to enter into the agreement to acquire the real property.
Financial Impact:
-Purchase Price $550,000 plus closing costs. The price is fair market value, as determined in a recent appraisal of the Property obtained by the City.
-Appraisal Fee $2,500.
-Inspection Fees Estimated $3,000-$5,000.
Account Number:021-05-106-0364
-Appraisal Fee $2,500.
-Inspection Fees Estimated $3,000-$5,000.
Account Number:021-05-106-0364
Policy Impact:
Furthers Council's identified affordable housing goals.
Connection to Council Goal, Regional Plan and/or Team Flagstaff Strategic Plan:
Affordable Housing-Support development and increase the inventory of public and private affordable housing for renters and home-owners throughout the community.
Has There Been Previous Council Decision on This:
February 20th, 2018 Council approved Ordinance 2018-11 authorizing City Staff to acquire 2.09 acres of Property located at the Southwest Corner of Lockett Road and North Fanning Drive, Assessor parcel number 108-05-003B for Affordable Housing.
Options and Alternatives:
Approve the Purchase and Sale Contract as drafted or suggested amendments to the contract prior to approval.
Background and History:
The City Council has identified Affordable Housing in the 2017-2019 Council Goals. Staff has been working to identify properties that the City may acquire or develop to achieve Council's Goal. Staff has identified a 2.09 acre parcel of land (the Property) at the Southeast corner of Lockett Road and North Fanning Drive, Assessor parcel number 108-05-003B, to include in the City's property inventory for Affordable Housing.
The Property is zoned High Density Residential. The Property is currently undeveloped. The Property is located north of Siler Homes, a 128 unit Low Income Public Housing development, owned by the City of Flagstaff and managed within the Housing Section.
The Property is zoned High Density Residential. The Property is currently undeveloped. The Property is located north of Siler Homes, a 128 unit Low Income Public Housing development, owned by the City of Flagstaff and managed within the Housing Section.
Key Considerations:
| Ordinance No. 2018-11 was approved by Council on February 20th, 2018 authorizing the acquisition of the Property for Affordable Housing as required by City Charter. The Property is contiguous with a portion of the north side of the Siler Homes Low Income Public Housing development and future development of housing units will lead to administrative efficiencies, given the location of the main Housing Office on the adjacent parcel. The property will be planned to fit into the neighborhood and take transportation needs along Lockett /Fanning into consideration. The existing zoning of High Density Residential allows development of multi-family housing, and ultimately further Council’s goal of increasing the number of affordable rental units. Preliminary calculations estimate that the existing zoning will allow the development of between 21 and 46 units, although actual units possible are dependent on the site planning process. |
Community Benefits and Considerations:
The identified source of funds for this acquisition is the "Land Acquisition" account within the Housing Section's budget. The current balance in the account is $445,000. The Budget Team has approved funding for the difference between the agreed upon sale price (including associated costs) and the balance in the account. While this purchase exhausts the funds in this account, this property, given its location, is a key piece in the larger picture of increasing affordable housing units in Flagstaff.
Account Number: 021-05-106-0364
Account Number: 021-05-106-0364
Community Involvement:
| Increase affordable housing units for Flagstaff residents. |
Expanded Options and Alternatives:
Neighborhood Open House was held on Thursday, March 1, 2018 at the Siler Homes Activity Center to inform the public of the property acquisition and to answer questions.