TITLE
Final Draft Process for Y-Lot Feasibility Analysis
MEMORANDUM
SUBJECT: Development/Disposition of Property at S. 350 S. Fifth Avenue
DATE: September 16, 2018
PURPOSE: This staff study provides an analysis of the City's options for the development and/or disposition of the property located at 350 S. Fifth Avenue (the "Y-Lot").
SCOPE: On May 1, 2018, City Council adopted Resolution 18-0719 directing the City Administrator to recommend to City Council a process by August 31, 2018 that addresses the following requirements with regard to developing the Y-Lot1 (Goal numbers are inserted for ease of reference later in the study):
* Goal 1: The City will maintain some ownership of the Property (e.g. land lease).
* Goal 2: The City will seek to recapture the cost of exercising its rights in the Property while ensuring a sustainable financial model.
* Goal 3: The Developer will offer a mix of unit types and rents.
* Goal 4: The Developer will maximize the number of affordable and workforce housing units with a maximum of 110% of Fair Market Value as defined by the US Department of Housing and Urban Development.
* Goal 5: The Developer will accept Housing Choice Vouchers.
* Goal 6: The Developer will dedicate 50% of the ground floor to active and/or public uses
* Goal 7: The City may explore options with interested users to dedicate the ground level and levels immediately above and below for public use purposes and partner with a developer to incorporate these uses.
* If the City fails to reach an agreement to create a project that includes affordable housing (e.g. land lease) within 48 months of the City exercising its rights in the Property, then the prior restricting clauses will expire.
* If the City fails to reach an agreement and the property is developed under current zoning without restrictions, the City will dedicate a minimum of 50% of all future proceeds from the sale or lease of the land to the Affordable Housing Fund.
* If t...
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