Title
Lease of City-Owned Property for Affordable Housing
Action
Action:
A. Adopt a resolution approving an option agreement and ground lease of city-owned property located on Providence Road West and Ballancroft Parkway (parcel identification numbers 223-132-40 and 223-132-39) with Crosland Southeast Communities, LLC, with a 60-year term for affordable housing, and
B. Authorize the City Manager to negotiate and execute all documents necessary to complete the option and ground lease of the property.
Body
Staff Resource(s):
Shawn Heath, Housing and Neighborhood Services
Phil Reiger, General Services
Gregory Crawford, General Services
Explanation
* On February 14, 2022, City Council authorized the City Manager and staff to work with Crosland Southeast (CSE Communities, LLC) to finalize a preliminary affordable housing proposal and negotiate a long-term ground lease for an affordable multi-family rental housing development known as Evoke Living at Ballantyne.
* The development will consist of 60-units and will be located on approximately 3.37 acres of city-owned property at Providence Road West and Ballancroft Parkway (parcel identification numbers 223-132-40 and 223-132-39) zoned R-22MF (multi-family) and NS (Neighborhood Service District) in Council District 7.
* On January 19, 2023, the city entered into a one-year option to ground lease (Option) with CSE Communities, LLC specifically subject to Council approval and which may only be extended upon written agreement. During this period CSE Communities, LLC will perform due diligence and secure financial commitments before exercising the Option.
* The terms of the ground lease are as follows:
* Premise: Approximately 3.37 acres of city-owned land at 11217 Providence Road West and a portion of 15024 Ballancroft Parkway
* Lease Term: 60 years
* Rent: $1.00/year
* Housing Units: CSE Communities, LLC will be responsible for the development and operation of affordable housing consisting of approximately 60 renta...
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