Title
A resolution extending the effective date of Resolution #8-20 to January 31, 2022 for Draper Commons
Presenter:
Steve Posey, Community Development Division Manager
John Bales, Fred Marienthal, Kutak Rock LLP
Peter Wysocki, Director of Planning and Community Development
Body
Summary:
An Amendment to Resolution 8-20 related to the issuance of Private Activity Bonds (PAB) in an amount not to exceed $21,000,000 for Draper Commons, a 280 unit affordable housing project located in the Lowell neighborhood in SE downtown. The project is 100% affordable multi-family rental.
Previous Council Action:
Resolution #8-20: A preliminary inducement resolution for Draper Commons was adopted on February 11, 2020. Due to withdrawal of the principal investor, a lengthy environmental review process, and challenging site conditions, the developer was unable to close on the financing and the resolution expired on December 31, 2020. Since that time, a new investor has been identified, the environmental review is complete, and progress has been made toward submittal of a complete development plan for the project.
Background:
In 2018, 2019, and 2020, City Council voted to carry forward its PAB allocations for the purpose of financing qualified residential rental projects, an eligible use of PAB under the IRS code. Carrying forward PAB for multi-family affordable housing is a means for City Council to address the need for additional housing for lower-income populations in the community. The City is a conduit issuer of PAB. As a result, the City assumes no liability for repayment of the bonds. The developer accessing PAB financing agrees to carry all costs related to the bond issuance, marketing and servicing, including attorney's fees, document preparation, and public notifications.
As multi-family residential development continues near downtown Colorado Springs, opportunities for affordable rental housing near downtown are becoming scarce. The Draper Commons proj...
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