Title
Consider/Discuss/Act on a Resolution of the City Council of the City of McKinney, Texas, Supporting the Efforts of the McKinney Housing Authority to Acquire the Magnolia Ranch Apartments
Summary
COUNCIL GOAL: Financially Sound Government
4A: Provide funding and organizational framework to ensure continual economic improvements
MEETING DATE: August 6, 2024
DEPARTMENT: Housing and Community Development
CONTACT: Cristel Todd, Interim Director of Housing and Community Development
RECOMMENDED CITY COUNCIL ACTION: N/A
ITEM SUMMARY:
* McKinney Housing Authority (MHA) seeks a letter of support from the City Council of the City of McKinney for the acquisition of Magnolia Ranch Apartments.
* The property, located at 3191 Medical Center Dr., McKinney, TX 75069
* 576 Units, Built 2001
o 286 market rate units
o 290 workforce units
* 260 units - 60% AMI
* 30 units - 30% AMI
* MHA will partner with Bridge Partners in a public/private partnership.
o MHA will be the general partner.
o Bridge Partners will be the special limited partner, providing equity and securing financing.
* $3 million will be spent to renovate the interiors of 48% of units that haven't been renovated.
* $1.5 million will be spent on exterior renovations.
* MHA anticipates ad valorem tax exemption pursuant to Chapter 392 of the Texas Local Government Code.
BACKGROUND INFORMATION:
* Bridge Partners, founded in 1990, specializes in acquisition, renovation, and asset management of workforce and affordable multifamily properties.
* Completed over 200 transactions across 26 states and 50 domestic markets.
* Existing portfolio of 51 properties in 15 states with 7,300 units.
* Active in Texas for nearly 30 years, with properties owned in Dallas, Houston, and Austin.
* Successfully partnered with Texas Housing Authorities.
* City Council approval is not required for this partnership but shows support for the project.
FINANCIAL SUMMARY:
* Community Rent Benefit over 10-year period is estimate...
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