Consideration and Possible Adoption of Ordinance No. 2018-11:  An ordinance of the Flagstaff City Council authorizing the acquisition of approximately 2.09 acres of Real Property at the Southwest corner of Locket Road and Fanning Avenue, Assessor parcel number 108-05-003B for Affordable Housing, providing for severability, delegation of authority, and establishing an effective date.

City Staff is requesting authority to acquire 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. Council will have an opportunity to review and approve a real estate purchase and sale agreement for the Property on February 20 or at a following public meeting.

• 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.

 This Ordinance No. 2018-11 furthers Council's identified affordable housing goals.

Affordable Housing-Support development and increase the inventory of public and private affordable housing for renters and home-owners throughout the community.

 No.

1. Approve Ordinance No. 2018-11 and authorize the acquisition of 2.09 acres for Affordable Housing.
2. Do not approve Ordinance No. 2018-11.

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. 

A legal description of the Property is being obtained and will be available prior to purchase.

Approving Ordinance No. 2018-11 will give staff authority to acquire 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.

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

 Increase affordable housing units for Flagstaff residents.

While there has not been any community involvement directly regarding the acquisition of this particular property, the need for affordable housing in Flagstaff is well documented.  Both the community as a whole and the surrounding neighborhoods will have the opportunity for input in the planning of the use of this property for affordable housing.