Memo Regarding ... Third Amendment to the Disposition and Development Agreement (DDA) ... for the Site A Development, March 6, 2018
Exhibit 1 - Third Amendment to DDA
Exhibit 2. - Presentation
Exhibit 3. - Correspondence
Exhibit 4. - Resolution
APP is requesting a third DDA amendment (DDA Amendment) in order to remove the provision in Section 4.2 of Exhibit M (Affordable Housing Implementation Plan) of the DDA that allows the City to withhold building permits for any market rate units in excess of 395 units (Metering Provision), if Eden Housing has not received and executed a Low Income Housing Tax Credit Reservation for the Affordable Housing Projects. While Eden Housing has been very successful at obtaining much of its required financing for the Affordable Housing Projects, there are outstanding funding applications, whose results will be known in May/June 2018, after the April 9, 2018 Phase 1 closing date. As a result, at the time of the Phase 1 closing, there will be uncertainty for APP and their third-party developers as to whether the City will have the right to halt their building permits pursuant to the Metering Provision in the DDA.
APP asserts that the Metering Provision inhibits their ability to sell the market rate development blocks at sufficient value to cover the costs of the Phase 1 project, as the provision restricts one property owner based on the timing of another property owner out of their control. Further, APP believes that these reduced proceeds from the sale of these blocks would then be insufficient to cover the costs associated with the required backbone infrastructure and other amenities. In other words, the third-party vertical developers will not purchase the market rate blocks at all or will pay significantly less for them, if the City has the ability to stop them from developing their project due to the Metering Provision. APP contends that if the Metering Provision is removed, they will be able to close by April 9, 2018, deliver the $10 million Seaplane Lagoon Ferry Terminal contribution, and start construction on backbone infrastructure within 30 days. Without this third amendment, the Developer will not be able to continue with the Site A Project.