[Council Communication]  [Attachments]

Council Communication

Title:	Request from Allan Frank Sandler to Purchase Air Space above Hargadine Parking Structure for 20-Unit Affordable Housing Project
Dept:	Planning Department
Date:	November 4, 2003
Submitted By:	John McLaughlin, Director of Community Development
Approved By: ...........................	Gino Grimaldi, City Administrator

Synopsis:	Allan Sandler has submitted a formal request to the City to enter into a process to develop approximately 20 affordable housing units over the Hargadine Parking Structure. As stated in Mr. Sandler's letter, he is proposing to build long-term guaranteed affordable housing, apparently utilizing tax credits administered by the State of Oregon. Depending on the nature of the project, eligible renters would be at the 80% median income level or lower. Mr. Sandler is proposing that a deed restriction be placed on the property guaranteeing the units remain affordable for 60 years. Mr. Sandler's request involves actually purchasing the air space over the parking structure for this use. The City's Housing Action Plan identifies downtown parking lots as potential sites for affordable housing projects, utilizing the airspace over the lots. Initial conversations have been held between the City and Mr. Sandler regarding a potential affordable housing agreement for this site, and the form the agreement would take. The City Attorney has discussed the possible agreement with Mr. Sandler's attorney as well. Another issue to be addressed involves the Oregon Shakespeare Festival. The current lease between the City and the OSF includes a provision that OSF shall have the right to submit a proposal of equal or greater community benefit within six months of being informed of a potential development over the parking structure. The City shall give due and good faith consideration to such proposal. The City must also comply with ORS 221.725 regarding the disposal of property, which will require a public hearing regarding the potential sale of the air space over the parking structure.
Recommendation:	The City is at a very early stage in this process. Mr. Sandler has provided some preliminary graphics as to how the project would appear, and the site plan. The Council has several options to consider: 1. Direct staff to continue exclusive negotiations with Mr. Sandler, based upon further direction of the Council. Issues that could be considered are whether the air space should be sold, or rather utilize a long-term lease agreement. 2. Direct staff to prepare a Request for Proposals (RFP) to be sent to other developers and non-profit housing providers for an affordable housing project on top of the parking structure. Again, the RFP could be based upon a purchase of the air space or development of a long-term lease. 3. Refer the request of Mr. Sandler to the Housing Commission with specific direction from the Council. The Council could request that the Housing Commission provide a recommendation on Mr. Sandler's request, or perhaps recommendations on the potential RFP process. 4. Evaluate housing opportunities over all city parking lots within the downtown area, and structure a process for considering housing opportunities at several locations, not just the Hargadine Parking Structure. 5. Maintain the parking structure in its current state and not entertain any requests for further development at this location.
Fiscal Impact:	Dependent upon the Council's direction, sale or lease of the air space could result in revenue to the City. However, the value of the airspace has not been determined at this time. The City may be requested to provide the air space at a low cost, or no cost, to ensure the viability of an affordable housing project.
Background:	Mr. Sandler's background information is attached.
Attachments:	• Background Information, Maps

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