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Home My WebLink AboutF.1 Arrowleaf and Perennial Park Staff Memo and attachments MEMORANDUM ------------------------------------------------------------------------------------------------------------ TO: Community Affordable Housing Advisory Board (CAHAB) FROM: Tanya Andreasen, COMMUNITY HOUSING PROGRAM MANAGER RE: Reconsideration of CAHAB’s 2/13/2019 recommendation to grant $500,000 from the Community Housing Fund to the Arrowleaf Park and Perennial Park project by GMD Development MEETING DATE: 8/12/2020 AGENDA ITEM TYPE: Action ----------------------------------------------------------------------------------------------------------- Recommendation: Staff recommends the members of CAHAB reconsider the grant of $500,000 to the Arrowleaf Park and Perennial Park project by GMD Development (GMD) from the Community Housing Fund and vote again on CAHAB’s recommendation. Suggested Motion: I move to recommend the City Commission approve a grant from the Community Housing Fund in the amount of $500,000 to the Arrowleaf Park and Perennial Park project by GMD Development. Background: Arrowleaf Park and Perennial Park is a mixed-use project that provides 232 affordable homes, as well as family housing services, early childhood education, and onsite health services. CAHAB was presented with a project proposal and grant request for $500,000 by GMD Development for the Arrowleaf Park and Perennial Park projects in early 2019. At the February 13, 2019 regular CAHAB meeting, the board voted unanimously to recommend to the City Commission that $500,000 be granted to GMD Development from the Community Housing Fund, to be granted over two fiscal years in the amount of $250,000 per grant. The 2019 grant request presentation and a copy of the 2/13/19 meeting minutes are attached to this memo. A renewed request letter as well as a project description are also attached. Because the project was still in the concept phase, the grant recommendation was not brought forward to the City Commission by staff in 2019, and the amount was not formally approved and granted. After CAHAB’s vote on this grant request at the 2/13/19 meeting, the City Attorney’s Office determined Kevin Thane, a CAHAB member who participated in the discussion and vote on the request, had and continues to have a personal interest in the project due to his position on the Family Promise Board of Directors and Family Promise’s involvement in the project. Due to Chairman Thane’s conflict of interest, he may not participate in or influence the presentation, discussion, and vote on this matter. After disclosing the nature of the conflict on the record, Chairman Thane must recuse himself before the presentation on this item. In addition, due to the passage of time since the original grant request was brought to CAHAB, the City Attorney’s Office recommends hearing, discussing, and voting on the recommendation again. If CAHAB votes to recommend this grant request, staff will take the grant request to the City Commission for approval. Fiscal Effects: The full payment of $500,000 will reduce the balance of the Community Housing Fund to 1,119,536 as of the writing of this report. The budget for such project in FY21 is $515,000 so any additional projects will require a budget amendment. Attachments: - Minutes from 2/13/2019 CAHAB meeting - GMD Development funding request presentation at the 2/13/2019 CAHAB meeting - Cover letter and project description from GMD Development, 8/5/2020 - Arrowleaf and Perennial Park site plan Community Affordable Housing Advisory Board February 13th, 2019 | 8 AM | City Hall Commission Room: 121 N. Rouse Ave A. 08:01:33 AM (00:03:14) Call meeting to order Present Were: • Steve Wheeler • Noel Seeburg • Greg Stratton • Kevin Thane (Board Chair) • David Magistrelli • Jodi Bartz • Dulaney Collins • Marty Matsen (Staff Liaison) B. 08:01:41 AM (00:03:23) Changes to the Agenda C. 08:02:07 AM (00:03:49) Public Comment Please state your name and address in an audible tone of voice for the record. This is the time for individuals to comment on matters falling within the purview of the Committee. There will also be an opportunity in conjunction with each action item for comments pertaining to that item. Please limit your comments to three minutes. D. 08:03:00 AM (00:04:41) Minutes for Approval • 1.9.19 Minutes (PDF) o 1.9.19 Video Link 08:02:55 AM (00:04:37) MOTION to approve minutes – David Magistrelli 08:03:01 AM (00:04:43) MOTION SECONDED: Noel Seeburg 08:03:09 AM (00:04:51)VOTE: Motion Carries 7-0 E. Action Items 1. 08:03:40 AM (00:05:21) HRDC Boulevards Presentation (Tracy Menuez) Tracy Menuez, Associate Director of HRDC, provided updates regarding two affordable housing projects that the organization is working on in connection with the MT Board of Housing Low Income Tax Credit Program. Ms. Menuez announced that they will be submitting a letters of intent in April for the Timber Ridge Apartments and The Boulevard Apartments. Ms. Menuez provided a brief overview of the proposed affordable housing projects. She explained that their objective is to convert these projects from a Section 8 MOD rehab subsidy, at risk for market redevelopment due to the contract being renewed annually, over to a Rental Assistance Demonstration (RAD) conversion which would provide a 20 year Housing Assistance Payment Contract (HAP). Ms. Menuez stated that they’ve been working closely with Summit Housing in order to attempt to combine these projects in an application and asked the board to consider a letter of support and a future request for funding. 08:09:00 AM (00:10:42) Ms. Menuez responded to questions from board members regarding funding and the project timeline. 2. 08:15:12 AM (00:16:54) GMD Development Update on the Affordable Housing Development near Lowe’s (Steve Dymoke) Steve Dymoke returned to the board to make a formal request for funding for the project. The site is 16 acres along Tschache Lane and would provide 240-280 affordable units. Half of the units would target households at less than 50% AMI and the remaining half would target 60-70% AMI. 08:23:10 AM (00:24:52) Mr. Dymoke explained the income requirements in response to a question regarding income averaging. 08:25:51 AM (00:27:32) Mr. Dymoke summarized the initial 90 day due diligence period and requested $500,000 or $1,850 / unit stating that this would provide a critical funding gap that would leverage approximately $32 million in tax exempt bonda in addition to $20 million in tax credit equity. 08:33:02 AM (00:34:43) MOTION for affirmation of the project: Steve Wheeler 08:33:06 AM (00:34:48) MOTION SECONDED: Jody Bartz 08:33:13 AM (00:34:55) VOTE: Motion Carried 7-0 08:33:49 AM (00:35:31) Board Chair, Kevin Thane and board member Jody Bartz disclosed their involvement in the project outside of their roles on the Community Affordable Housing Advisory Board. 08:36:37 AM (00:38:19) Architect, Rob Pertzborn of Intrinsik Architecture, spoke to the project in regards to some of the requirements and design challenges they’ll be seeking support for as the project progresses. 08:41:42 AM (00:43:24) Chair, Kevin Thane and Director Matsen discussed how CAHAB can support the project in discussion without interfering with related boards’ duties. 08:43:46 AM (00:45:28) Commissioner Cunningham asked Mr. Dymoke about his preference regarding project funding versus a low interest loan. Following, board members and Mr. Dymoke discussed ways in which the project could be supported financially. 08:51:32 AM (00:53:14) Public Comment Kevin Sylvester, Executive Director of Family Promise, a resource for homeless families, made comments regarding the challenges of child care and affordability within Bozeman. Mr. Sylvester stated that their organization is interested in working with GMD development to provide a child care facility on the site to provide a more affordable option for parents in need. 08:57:40 AM (00:59:22) Tracy Menuez of HRDC voiced support of the project in order to provide more affordable housing in the community. 08:57:51 AM (00:59:33) Chair Thane read an email from Buck Taylor, Director of Community Development Administration for Community Health Partners. The letter voiced support of a joint model for permanent supportive housing that could be developed in conjunction with their new health center space, proposed at the GMD development site. 09:28:25 AM (01:30:07) Board members return to the discussion regarding a recommendation of funding for the GMD Development project on Tschache Lane. Mr. Dymoke provided more information regarding their timeline and need for funds as related to the due diligence period. 09:29:11 AM (01:30:53) Board member, Greg Stratton voiced his 100% support of the project, but he asked whether the board was comfortable with depleting the affordable housing fund in order to meet the funds request. Mr. Stratton continued by saying that he’d be more comfortable if they were able to spread the funding request over more time and that he would not like to drop below $100,000 in the affordable housing fund. 09:31:32 AM (01:33:14) Chair Thane suggested that they select a number for funding to recommend to the City Commission so that they can put together a letter of support for approval at the next board meeting. 09:33:37 AM (01:35:19) MOTION to move the project forward with a recommendation of 100% of the funding request: Steve Wheeler 09:34:19 AM (01:36:01) MOTION SECONDED: Jodi Bartz 09:35:12 AM (01:36:54) Discussion: Mr. Stratton explained that the ‘bang for the buck’ aspect of the project in that $1,800 per unit cost for the city is much better than the $15,000 contribution per house for his previous affordable housing projects. Following, board members discussed how they could better make the numbers work, but that they support the project in principal. 09:36:12 AM (01:37:54) Chair Thane clarified that the board provides a recommendation for the full funding request of $500,000 and that the details of whether the funds will be worked out over multiple fiscal years and the structure, loan vs. grant, would be worked out in the future, but that they wanted to provide GMD Development with the encouragement necessary to move forward. 09:37:26 AM (01:39:08) VOTE: All in Favor – Motion Carries 7-0 3. 09:01:12 AM (01:02:53) Cont’d Discussion of CAHAB Goals and Priorities for 2019 09:00:50 AM (01:02:32) Board members continued discussing the goals and priorities of CAHAB for 2019 beginning with funding. Board member, Steve Wheeler explained that banks do not have specific funds available for Community Reinvestment Act (CRA) loans, but rather they seek ways in which they can provide funds to be used for this purpose. Mr. Wheeler explained that banks receive credits when they’re involved in projects that use CRA eligible loans and investment opportunities. Following, Mr. Wheeler offered to arrange to have a banker present to the board and educate members on the topic of Community Reinvestment Act funds. 09:10:07 AM (01:11:49) Board members discussed a possible short term goal of pushing for reengineering on an extension of Fowler to provide an affordable housing opportunity. F. Non-Action Items 1. 09:13:40 AM (01:15:21) Affordable Housing Fund Status Update (Brian LaMeres) City of Bozeman Controller, Brian LaMeres provided an update regarding the Affordable Housing Fund. Following, the group held a general discussion regarding potential fund revenues from cash- in-lieu payments, which are due upon final plat approval. 2. Affordable Housing Needs Assessment and Action Plan Update (Marty Matsen) 3. 09:22:25 AM (01:24:06)Status Update on the Search for a New Affordable Housing Program Manager (Marty Matsen) Director Matsen provided a status update on the efforts to fill the Affordable Housing Program Manager position. Director Matsen stated that they expect to do interviews within the next several weeks and they hope to have the position filled in early April. G. FYI/Discussion 1. 09:38:08 AM (01:39:49) HRDC Monthly update (Menuez) o Warming Center Update o Willow Springs Update (Previously Hoover Way) 2. 09:39:44 AM (01:41:26) GAR Gallatin Assoc. of Realtors Summary (Seeburg) 3. 09:44:21 AM (01:46:03) Date Selection for Ethics Training H. 09:49:17 AM (01:50:58) Adjournment For more information please contact Lacie Kloosterhof at lkloosterhof@bozeman.net. This board generally meets the second Wednesday of each month at 8:00 AM Committee meetings are open to all members of the public. If you have a disability and require assistance, please contact our ADA coordinator, Mike Gray at 582-3232 (TDD 582-2301). Bozeman Affordable Housing OpportunityTschache Lane - Bozeman, MTCommunity Affordable Housing Advisory Board – Funding RequestGreg Dunfield & Steve Dymoke520 Pike StreetSeattle, WA 98101206-745-6464Steve@gmddevelopment.com OPPORTUNITY 15.75 acre site could support 240-280 units of affordable rental housing, plus significant community commercial space and amenities. •About 100 units of Senior Independent Living housing•One 3-story elevator building, plus 5 unit, two-story walkup cottages•About 150 units of Family Housing •12 / 20 / 24 3-story walkup garden buildings, plus 3BD townhome units Rockcress Commons The proposed development site is 15 acres of land, 12 of which are developable. Hugging the north and east sides of the lot are wetlands, a small pond, stream, and a biking/walking trail. To the south and west are the Bozeman Lowes, and Tschache Lane, which terminates at the aforementioned wetlands. The lots east of the property have been approved to be developed into commercial and office space, expanding the 19th Ave retail district.Green Space and Wetlands Buildable AreaCurrent trail systemsApproved Adjacent DevelopmentsNE ViewEast ViewSouth ViewCONDITIONS Along the main access road, Tschache Lane, the proposed development would provide commercial space frontage. The intent of this space would be to provide supportive service such as child care, senior activity/support, outward bound, YMCA, boys and girls club, Bozeman Parks and Recreation, etc. to the residents of the apartment community and of greater Bozeman.All residential units would sit behind the main commercial space fronting TschacheLane. The proposed residential development would be comparable to Larkspur Commons, a property in Bozeman completed in 2017; Invoking similar material and feel of that project. Conceptual Site PlanCONCEPTUAL DESIGNLarkspur Commons Given the close proximity of goods and services, and the natural features that abut the site, this location would be ideal for a mix of senior and multifamily apartment housing. The walkability of this location would reduce the number of car trips for groceries, shopping, and to work for parents employed in this retail district. Other possible improvements and amenities in addition to the housing could include:LIVABILITY •Green and open space •Community playground•Community garden•Bike parking and storage •Wetlands trails and trail access•On site activity room for residents•Improved walking paths•Possible on site childcare•Possible on site medical/dental clinicThe proposed development would likely serve families and individuals with household income between 50-70% of the area median income. Additionally GMD is looking into other sustainable ways to reach a broader range of households, allowing the possibility to serve lower income families. RESIDENT AFFORDABILITY •Half the units in each project would target households at less than 50% AMI (income and rent).•Remaining half would accept households up to 70% of AMI income, with rents set from 60-70% of AMI.•Communities will be sustainably designed and built with high quality materials and solar photovoltaic and solar thermal to reduce both owner and resident utility cost. Starner Gardens •Local political and financial support•B2 zoning and conditional use permitFinancial feasibility Title reviewSurveyEnvironmental reviewPreliminary site plan Soils and wetland review Qualified Census Tract INITIAL 90 DAY DUE DILIGENCE PERIOD – “GO OR NO GO” CURRENT RENT SUMMARY - 2018 Area Median Incomes Funding Request: $500,000 (approximately $1,850 / per unit)•Would provide critical funding gap that will leverage approximately $32 million in Tax Exempt Bonds + $20 million in Tax Credit Equity.•Funding to be used to offset general construction costs.Estimated time of closing = Fall 2019CAHAB – CITY OF BOZEMAN - Funding Request $XJXVW 5H 3HUHQQLDO3DUN$UURZOHDI3DUN%R]HPDQ07±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x&RPPXQLW\+HDOWK3DUWQHUVZLOOOHDVHIRU\HDUDVIKHDOWKFOLQLFSURYLGLQJ PHGLFDOGHQWDOSKDUPDF\DQGEHKDYLRUDOKHDOWKVHUYLFHVWRORZHULQFRPHUHVLGHQWV x)DPLO\3URPLVHZLOOOHDVHIRU\HDUDQVIHDUO\FKLOGKRRGOHDUQLQJFHQWHUDQG ZLOOEHFROODERUDWLQJZLWKWKH068¶VGHSDUWPHQWRIKHDOWKDQGKXPDQGHYHORSPHQW $OVRLQWKHVSULQJRISUH&29,',DSSHDUHGEHIRUHWKH&$+$%JURXSDQGSUHVHQWHGWKLV VWLOOYHU\FRQFHSWXDOSURMHFWDQGZHUHYHU\JUDWLILHGE\WKHVXSSRUWDQGDFNQRZOHGJHPHQWRIRXU YLVLRQDQGZHUHYHU\H[FLWHGDERXW&$+$%¶VIXQGLQJUHFRPPHQGDWLRQRIRQ0DUFK ,QWKHDIIRUGDEOHKRXVLQJZRUOGDVLJQLILFDQWILQDQFLDOFRPPLWPHQWE\WKHORFDOJRYHUQPHQW VSHDNVYROXPHVRIWKHQHHGDQGFRPPLWPHQWE\WKHFLW\WRVWDQGEHKLQGWKHLUVWDWHGJRDOVRI DGGLQJDIIRUGDEOHKRXVLQJLQWKHLUFRPPXQLW\7RRXUWD[FUHGLWLQYHVWRUVDQGOHQGHUVWKLV PDNHVDKXJHLPSDFWLQWKHLUYLHZRIWKHSURMHFWDQGXQGHUZULWLQJ )URPWKHVSULQJRIWRWRGD\ZHKDYHPDGHJUHDWSURJUHVV±VRPHXSGDWHV x:HKDYHILUPIXQGLQJFRPPLWPHQWVIURPDOHQGHUDQGWD[FUHGLWLQYHVWRU x7KHSUHOLPLQDU\38'KDVEHHQVXEPLWWHGDQGZLOOEHSUHVHQWHGWRFRXQFLORQ$XJXVW WK x:HZLOOEHFORVLQJRQWKHODQGSXUFKDVHRQ$XJXVWWK x0RVWRIWKHEXLOGLQJSODQVKDYHEHHQVXEPLWWHGIRUSHUPLWUHYLHZ x2XUWD[H[HPSWERQGDSSOLFDWLRQZDVVXEPLWWHGWKLVZHHNWR0%2+ x:HDUHSODQQLQJWREUHDNJURXQGDQGEHJLQVLWHZRUNLQ6HSWHPEHU x,QDGGLWLRQWRWKH&RPPXQLW\+HDOWK3DUWQHUVIDFLOLW\DQG)DPLO\3URPLVH¶VHDUO\ FKLOGKRRGOHDUQLQJFHQWHUWKHSURMHFWZLOOSURYLGHDIIRUGDEOHKRPHVIRUVHQLRUVDQG DIIRUGDEOHKRPHVIRUIDPLOLHV x:LWK$0,WDUJHWVUDQJLQJIURPDODUJHVHJPHQWRI%R]HPDQ¶VUHQWHUVZLOOEH DEOHWRTXDOLI\ x$PDUNHWVWXG\MXVWFRPSOHWHGIRXQG%R]HPDQ¶VPXOWLIDPLO\YDFDQF\WREHDQG DQLPPHGLDWHKRXVLQJQHHGRIRYHUXQLWV :HDSSUHFLDWHWKHVXSSRUWRI&$+$%DQGWKH%R]HPDQ&RXQFLODQGUHVSHFWIXOO\UHTXHVWWKH PRWLRQWRUHQHZWKHIXQGLQJUHFRPPHQGDWLRQRIPDGHLQ0DUFK ,I\RXKDYHDQ\TXHVWLRQVSOHDVHGRQRWKHVLWDWHWRFRQWDFW6WHYHDWRU 6WHYH#JPGGHYHORSPHQWFRPRU+HDWKHU*UHQLHUDWKJUHQLHU#WKHKUGFRUJ 7KDQN\RX 6WHYH'\PRNH+HDWKHU*UHQLHU *0''HYHORSPHQW//&+5'& XXX X X X X X X XX XXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXX X C CC C C W WW W W GG GGG EE EEE SS SSS XX XXX FSFS FSFSFS C U L V E R T 10' UTILITY EASEMENT PROPOSED PATH PLAYGROUND TSCHACHE LANESACCO DRIVE96-UNIT SENIOR BLDG. EARLY LEARNING CENTERCOMM. HEALTH PARTNERS 9500 SF FOOTPRINT 11,400 SF FOOTPRINT LOWES BUS 24-UNIT BLDG. FITLOT 24-UNIT BLDG. 12B-UNIT BLDG. 24-UNIT BLDG. BAXTER LANE SHALLOW POND OPEN WATER" (0.85 ACRES) 50' WETLAND SETBACK 50' WETLAND SETBACK 9 36 50 22 24 43 13 75 40 19 36 24-UNIT BLDG. WETLAND-1 (.55 ACRE) EXISTING PATH CULVERT 12B-UNIT BLDG. TOTAL PARKING -367 (8) ROWHOUSES (8) ROWHOUSES COMM. BLDG. PLAYGROUND DETENTION POND SHED MAILBOX MAILBOX MAILBOX MAILBOX DETENTION POND DITCH SNOW STORAGE LINE TYPE LEGEND PROPERTY LINE SETBACK LINE FENCE COMMUNICATION LINE WATER LINE FIRE SERVICE LINE GAS LINE ELECTRICAL LINE SEWER LINE sheet project code address© 2020 INTRINSIKrevisions PRELIMINARY NOT FOR CONSTRUCTION111 North Tracy Bozeman, Montana59715Fax: 406.582.8911Ph: 406.582.8988C:\Users\mmasek\OneDrive - Intrinsik Architecture\_C46 BACKUP\Documents\GNB -SITE_mmasek321.rvtA105 GNB GMD North Bozeman SITE PLAN (10B) T.B.D BOZEMAN, MT 59715 CONCEPT SITE PLAN 2020-03-09 No. Description Date 1" = 60'-0"A105 1 CONCEPT SITE PLAN N