City Council

14. AUTHORIZATION TO CITY MANAGER TO EXECUTE AN AMENDED AND RESTATED\nDDA FOR THE CHAPEL AVENUE AFFORDABLE HOUSING PROJECT, AS WELL AS\nVARIOUS PROJECT IMPLEMENTING DOCUMENTS – F2M20-71, M2M23-26\nOn January 31, 2022 the City entered into a disposition and development agreement\n(“DDA”) for the construction of an affordable housing project on a surface parking lot\n7\n2-27-23\nadjacent to the City-owned parking structure on Chapel Avenue. The project proposes to\nbuild 44 affordable housing units on site. The Developer, Chapel Housing Partners, L.P.,\nis planning to close on the property in the next few weeks. As the closing date approaches,\nnumerous documents are being revised to effectuate the financing, the construction, and\nthe affordability restrictions governing operation of the project. Since the Council approved\nthe DDA, a few revisions to the deal points have occurred, so staff is requesting Council\nauthorize the City Manager to execute final documents, consistent with the revised deal\npoints. In addition to the changes to the deal structure outlined in the February 27, 2023\njoint report by the Community Development Director and City Attorney, several\nimplementing documents will need to be executed (such as lot formation documents,\nconveyance documents, regulatory agreements, etc.- but these were contemplated in the\nprevious approved DDA.) The original DDA contemplated signature of these documents\nby the City Manager. In addition to those implementing documents, the City will need to\nexecute a termination of leases for the parking structure that were providing security for a\nCity bond financing that has since been repaid. To facilitate the closing timeline, staff is\nagain requesting that the City Manager be authorized to execute these and any other\nimplementing documents, consistent with the terms of the DDA, and the proposed\namendments described in the February 27, 2023 joint report by the Community\nDevelopment Director and City Attorney.\nRecommended Action: City Council authorize the City Manager to execute an\namended and restated disposition and development agreement with Chapel Housing\nPartners, L.P. as well as various project implementing documents. (M2M23-26)