PRESENTER: Presenter
Jeff Jewell, Economic and Community Development Director
Body
SUBJECT: Title
Approval of a resolution of the City Council of the City of New Braunfels, Texas providing a statement of non-objection to the Lyndon Ranch Apartments Project, located on Loop 337.
Header
DEPARTMENT: Economic and Community Development
Body
COUNCIL DISTRICTS IMPACTED: 3
BACKGROUND INFORMATION:
Paravel Capital (the “Developer”) is seeking a collaboration through a 75-year lease with Alamo Area Housing Finance Corporation (AAHFC) to develop a 303-unit multi-family workforce housing facility to be located at approximately 1801 Loop 337 in New Braunfels and known as the Lyndon Ranch Apartments (the “Project”). AAHFC is requesting a statement of non-objection from the City Council for development of the property. In exchange, 50% of the units will be leased to families with incomes at eighty percent (80%) of area median family income (“AMI”), which will be enforced via a restrictive covenant lasting at least [40] years. Additionally, five percent (5%) of 1-bedroom units will be set aside for teachers earning ninety five percent (95%) of AMI. The remaining units are anticipated to be leased at market rate. Additionally, the Developer will make a $25,000 annual payment to New Braunfels ISD (the “School District”) and will create a preferred employer program with the School District, which will offer waived application fees for School District employees and a $500 discount on the first month’s rent. The Project will be affirmatively marketed through the School District.
The development will provide half of the units at a discount that ranges from approximately $170/month for a 1 bedroom/bath to $482/month for a 3 bedroom/2 bath model. AAHFC is anticipated to receive $500,000 as a closing fee, a fee equal to approximately 30% of sales tax savings (approximately $800,000), and approximately $230,000 payment as annual rent, increasing at 3% annually and a payment of 15% of the net proceeds of the sale upon the initial sale or refinancing of the project and a commission of 2% for any sales thereafter.
ISSUE:
Approval of a resolution of non-objection
STRATEGIC PLAN REFERENCE:
☒Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☐Community Well-Being ☐N/A
[Enter Objectives/Performance Measures Supported]
FISCAL IMPACT:
In exchange for the provision of 50% of units set aside for workforce, the City would be forgoing approximately $212,000 in annual property tax revenue.
Recommendation
RECOMMENDATION:
Staff recommends approval of the resolution.