Title
Extension of Option to Ground Lease for Affordable Housing
Action
Action:
A. Adopt a resolution approving an extension to the option for a ground lease of city-owned property located on Providence Road West and Ballancroft Parkway (parcel identification number 223-132-40 and a portion of 223-132-39) with CSE Communities, LCC through June 30, 2024, with an option to further extend up to six additional months as needed, and
B. Authorize the City Manager, or his designee, to negotiate and execute all documents necessary to complete the extension to the option for a ground lease of the property.
Body
Staff Resource(s):
Rebecca Hefner, Housing & Neighborhood Services
Phil Reiger, General Services
Greg Crawford, General Services
Explanation
* On June 12, 2023, City Council approved a long-term ground lease transaction and granted CSE Communities, LLC (Crosland) an option to ground lease (Option) approximately 3.37 acres of city-owned property at Providence Road West and Ballancroft Parkway (parcel identification number 223-132-40 and a portion of 223-132-39) (Property) in Council District 7 upon certain terms and conditions, including affordability restrictions. This Option is set to expire January 18, 2024.
* The ground lease will support the Evoke Living at Ballantyne multifamily affordable housing development.
* Crosland has requested, and staff recommends extending the Option through June 30, 2024, to allow additional time for Crosland to finalize their overall project financing and obtain final permits.
* Due to continuing uncertainty in commercial financial markets and complexities associated with federal funding requirements, this action provides additional flexibility to further extend the Option for an additional six-months if needed.
* Crosland anticipates finalizing and closing on their financing by June 30, 2024. A further extension would be contingent upon Crosland demonstrating substantial progress in finalizing their financing.
Background...
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