ACTION REQUESTED:
Title
Request by Council Member Akeson for the Following:
A. REQUEST TO RECONSIDER Item No. 18-278.
Communication from the City Manager with a Request for the following:
A. APPROVE a REDEVELOPMENT AGREEMENT with PEORIA OPPORTUNITIES FOUNDATION for an Infill Housing Development Project, in the Amount of $300,000.00, to be Funded from the EAST VILLAGE GROWTH CELL TIF Fund Balance.
B. ADOPT an ORDINANCE Amending the CITY OF PEORIA 2018 - 2019 BIENNIAL BUDGET Relating to the Use of the East Village Growth Cell TIF Fund Balance Relating to the Redevelopment Agreement With Peoria Opportunities Foundation for an Infill Housing Development Project, in the Amount of $300,000.00. (NOTE: This requires a 2/3 vote of those voting.)
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BACKGROUND: Peoria Opportunities Foundation has requested $300,000 from the East Village Growth Cell TIF Fund balance for the construction of scattered site, affordable rental housing units located in the boundaries of the East Village Growth Cell TIF. The infill housing development project will provide 30 affordable, rental units for families. There will be 15 two-bedroom units and 15 three-bedroom units. Twenty (20) homes will be single family properties and five (5) properties will be designed as duplexes. Six (6) units will be targeted to families at or below 30% AMI, fifteen (15) units will be targeted to families at or below 50% AMI, and the remaining nine (9) units targeted to 60% AMI families. Peoria Opportunities Foundation will be the developer of the proposed project and will own and operate the properties as affordable, rental units for 30 years. All properties are located within the boundaries of the East Village Growth Cell TIF District.
The total project costs for the development is $9.2M. The project will be financed with a mix of private and public sources, including an allocation of low income housing tax credits (LIHTC) from the Illinois Housing Development Authority (IHDA). The EV Growth Cell TIF fund revenue balance in the amount of $300,000 will be issued as a one-time payment for reimbursable construction expenses contingent on the final closing of all financing allocated for the project and commencement of construction. The project is scheduled to begin in March, 2019. Attached is the redevelopment agreement that outlines the terms of the disbursement, site locations and designs, and project budget (Attachment A).
In addition to the disbursement of East Village TIF funds, the City has pledged to waive the building permit fees in the amount of $42,000 (Attachment B). The City has also issued a letter of intent to sell 17 City owned lots for $1.00 per lot to POF (Attachment C).
This development will provide additional safe, affordable housing to the East Bluff neighborhood and will contribute to the increase in equalized assessed values (EAV).
FINANCIAL IMPACT: $300,000 from the East Village Growth Cell TIF fund balance will be used to fund Peoria Opportunities Foundation as a reimbursable grant.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: Peoria Opportunities Foundation will be able to use East Village Growth Cell TIF funds for the project.
IMPACT IF DENIED: The City will not enter into a Redevelopment Agreement with Peoria Opportunities Foundation and the East Village Growth Cell TIF funds will not be used for the project.
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ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Beautiful Peoria
2. Grow Peoria
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Reinvest in neighborhoods.
2. Support sustainability.
DEPARTMENT: City Manager's Office