Title
Approval of a Resolution Authorizing the Sale of City Owned Real Property Located at 3900 Boulevard Road SE to South Puget Sound Habitat for Humanity for Affordable Low-Income Housing
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve of a Resolution of the City Council of the City of Olympia, Washington, authorizing the sale of city owned real property located at 3900 Boulevard Road se to South Puget Sound Habitat for Humanity for affordable low-income housing.
Report
Issue:
Whether to approve the resolution allowing the City Manager to enter into an agreement to sell the city owned property at 3900 Boulevard to South Puget Sound Habitat for Humanity for the development of a minimum of 100 affordable housing units.
Staff Contact:
Mike Reid, Economic Development Director, Office of Community Vitality, 360.753.8591
Mark Barber, City Attorney, 360.753.8223
Presenter(s):
Mike Reid, Economic Development Director
Carly Colgan, Habitat for Humanity, Chief Executive Officer
Background and Analysis:
On January 5, 2022, the City issued a Solicitation of Interest to explore development interest in the 10-acre parcel of City-owned property at 3900 Boulevard Rd. Responses were due on February 17, 2022.
The solicitation of Interest identified a project vision and submittal requirements aimed at determining the development history, capacity, and experience of interested parties. Staff will be presenting an overview of the responses.
The City received 12 responses and reviewed them with Council on March 22, 2022.
On April 15, 2022 the City announced that they had selected South Puget Sound Habitat for Humanity as the successful respondent and preferred development partner.
Habitat for Humanity’s proposal was selected for their strong commitment to provide affordable homeownership opportunities and their alignment with the City’s Housing Action Plan.
Habitat for Humanity has initiated their community outreach as identified in their proposal. They have met with neighborhood groups as well as hosting a public meeting at the Olympia Regional Learning Academy (ORLA) on September 14, 2022.
Habitat for Humanity also submitted for and held a pre-submission meeting with the Site Plan Review Committee meeting on November 9, 2022.
The City and Habitat for Humanity have negotiated a Real Estate Purchase and Sale Agreement for the ten acres located at 3900 Boulevard Rd.
Some key elements of the purchase and sale agreement include:
• The purchase price is $1 recognizing that Habitat will be required through a restrictive covenant placed on the deed of property to use the site in large part to build affordable housing which is defined as serving households with at or below 80% of the area median income.
• Habitat for Humanity agrees to create a minimum of 100 total units of housing with a minimum of 65 owner occupied affordable houses.
• Habitat agrees that approximately one acre of the site is to be used for the development of a commercial center for retail, childcare, or other commercial uses.
• Habitat will have a 90-day Feasibility Contingency Period, if the contingency is removed, they will close on the property 20 business days later.
• The City has a repurchase option at the sale price of $1 if the Habitat has failed to commence construction of the housing units within 36 months of the closing date.
Climate Analysis:
The creation of mixed-use development projects along transportation corridors that contain public transit routes are entirely consistent and are a priority within the Thurston Climate Mitigation Plan. Infill developments like this proposal are necessary to reduce greenhouse gas emissions be reducing the need to continue urban sprawl.
Habitat for Humanity has retained The Artisan Group as their lead architect and project manager for this effort. The Artisan Group is a nationally recognized leader in passive home design. They are incorporating sustainable development and construction practices into all elements of this project - from layout and design to building material selection. Due to the nature of the transaction between the City and Habitat this project will need to be fully compliant with City Resolution M-2289 - Building Electrification.
Equity Analysis:
Poverty continues to be an area in Olympia of significant disparity for individuals from marginalized populations. In Olympia people of color, people with disabilities, and women (notably single mothers) all experience poverty at a significantly higher rate than our city average. Homeownership has been shown time and time again to be one of the greatest equalizers in creating long term financial stability and upward mobility for those that have experienced generational poverty.
This partnership with Habitat for Humanity will be the single largest effort to create generational wealth and address economic insecurity through the creation of permanent affordable home-ownership that the City of Olympia has ever undertaken.
Neighborhood/Community Interests (if known):
The property has been of significant neighborhood interest due to its connection to previous development proposals and adjacency to LBA Woods.
During the Council review process of the submitted responses to the Solicitation of Interest there was an overwhelming amount of community support for the Habitat for Humanity proposal.
Habitat for Humanity has initiated their community outreach as identified in their proposal. They have met with neighborhood groups as well as hosting a public meeting at the Olympia Regional Learning Academy (ORLA) on September 14, 2022.
Financial Impact:
The property was most recently appraised on March 8, 2019, with a determined value ranging between $1,825,000 - $2,160,000.
The purchase and sale agreement does not make any additional financial obligations on behalf of the City of Olympia.
Options:
1. Approve the Resolution authorizing the sale of the city owned property at 3900 Boulevard to Habitat for Humanity.
2. Do not approve the Resolution authorizing the sale of the city owned property at 3900 Boulevard to Habitat for Humanity.
3. Direct staff to make alterations to the purchase and sale agreement and return to Council for action at a future date.
Attachments:
Resolution
Agreement