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Consider/Discuss/Act on a Resolution Approving the McKinney Housing Authority (MHA) Request for City Funding for Newsome Homes Redevelopment and Authorization for the Interim City Manager to Enter into a Chapter 393 Loan Agreement Between the City of McKinney and the McKinney Housing Authority
Summary
MEETING DATE: August 4, 2014
DEPARTMENT: Housing and Community Development
CONTACT: Janay Tieken, Housing and Community Development
RECOMMENDED CITY COUNCIL ACTION:
* Approve Finance Structure and Amount of City-Funded Portion of McKinney Housing Authority (MHA) Redevelopment of Newsome Homes.
* Authorize the Interim City Manager to enter into a Chapter 393 loan agreement between the City of McKinney and the McKinney Housing Authority.
ITEM SUMMARY:
* The McKinney Housing Authority (MHA) is requesting City funding and fee credits for the redevelopment of Newsome Homes.
* Staff recommends a combination of fee waivers, fee reimbursements through the Empowerment Zone Process, and a low interest, revolving loan facility as outlined in the Financial Summary table below.
BACKGROUND INFORMATION:
* On July 14th, Carleton Development, representing the McKinney Housing Authority, presented a request to City Council for a portion of the cost of the Newsome Homes redevelopment.
* City Council directed Carleton to find cost savings within the development budget. Carleton has presented a new funding request that reflects a $174,575 reduction from the original request. Further, staff was asked to present a City financing structure that minimizes impact to the General Fund.
* Chapter 393 of the Local Government Code allows the City to provide a low interest, revolving loan facility for a portion of the request. The loan will include the following terms:
o Principal Amount: $1,156,052
o Interest Rate: 2.75%
o First advance: $116,000 park fees at issuance of building permit
o Second Advance: $269,350 on January 1, 2015
o Third Ad...
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