Title
Consider/Discuss/Act on a Request Made by JPI to Bypass the Co-development RFQ Process
Summary
COUNCIL GOAL: Financially Sound Government
4A: Provide funding and organizational framework to ensure continual economic improvements
MEETING DATE: July 23, 2024
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Interim Director, Housing and Community Development
RECOMMENDED CITY COUNCIL ACTION:
* N/A
ITEM SUMMARY:
* JPI has requested to bypass the standard Request for Qualification (RFQ) process to partner directly with the McKinney Housing Finance Corporation (MHFC) on a proposed development project.
* JPI is currently under contract to purchase the land for the 2-phase multifamily community, which is adjacent to the Jefferson Verdant PFC.
* Phase 1: 388 units
* 190 market rate units
* 179 80% AMI units
* 19 60% AMI units
* Phase 2: 404 units
* 198 market rate units
* 186 80% AMI units
* 20 60% AMI units
* Bypassing the RFQ process means that Jefferson Verdant would present their project directly to the MHFC. MHFC would conduct standard due diligence and review before negotiating terms. Upon approval by MHFC, terms will be shared with Council as an informational item.
* A co-development RFQ is anticipated to be issued in September of 2024.
BACKGROUND INFORMATION:
* McKinney Public Facilities Corporation (MPFC) partnered with JPI in 2022 on the Jefferson Verdant project.
* Jefferson Verdant, is a 384-unit Class A multifamily rental housing development on 15 acres near the southwest corner of Bois D Arc Road and US380/University Drive.
* 192 units are 80% AMI. The remaining 192 units are market rate.
FINANCIAL SUMMARY:
* The proposed partnership would provide property tax exemption in exchange for providing a certain number of units at a specific affordability level.
* The McKinney Housing Finance Corporation would generate revenue from the transaction with potential developer fees, management fees, general cont...
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