Title
Approval of a Resolution Approving a Restrictive Covenant Between the City of Olympia and St. Francis House on Martin Way, LLC
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a resolution approving a restrictive covenant between the City of Olympia and St. Francis House on Martin Way, LLC
Report
Issue:
Whether to approve a resolution approving a restrictive covenant between the City of Olympia and St. Francis House on Martin Way, LLC
Staff Contact:
Darian Lightfoot, Director of Housing and Homeless Response, 360.280.8951
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The Olympia Municipal Code (OMC) 15.04.060 allows for certain exemptions for payment of impact fees. Along with the fee reduction, the code requires the property owner seeking reduced impact fees to record a covenant that prohibits using the property for any purpose other than for low-income housing, which, at a minimum, must address price restrictions and household income limits for the low-income housing, and require that, if the property is converted to a use other than for low-income housing as defined in the covenant, the property owner must pay all of the applicable impact fees in effect at the time of any conversion.
St. Francis House on Martin Way, LLC has applied to the City of Olympia for 80% exemption of park impact fees for its property located at 113 Devoe St. NE. St. Francis House also received approval from LOTT for a 50% rebate of the LOTT connection fee through its pilot Affordable Housing Support Program. This is the first project to receive the LOTT connection fee rebate since the pilot began earlier this month.
St. Francis House was the previous site of a veterinary clinic that will soon operate a St. Vincent DePaul clothing bank on the first floor of the building along with 4 studio apartments on the second floor. All units will be rented at or below of 80% area median income.
Projects like there are newer to the housing programs portfolio. Efforts to engage with private residents and small organizations to help create affordable housing is often an overlooked resource, missing a large body of people looking to contribute positively to the housing crisis.
Climate Analysis:
This project converted an unused veterinary clinic into a clothing bank and low-income housing. The emissions of new construction are much higher than the emissions of an internal renovation, successfully preserving a usable structure into a high need in the community, affordable housing. The impact fees being waived all still require the project to follow all utility hook up standards. Additional fee waivers could be considered in the future if renovation projects opt into natural gas retrofitting, EV preparation, or solar to better meet the City's climate goals.
Equity Analysis:
The impact fee waiver specifically does not connect directly to any demographic data that would be relevant to meeting the City's equity goals. There is, however, several data sources outlining the need for low-income housing and how that need is felt more severely by communities of color, seniors, and people with disabilities. These additional units will work to impact those disparities and meet the housing goals of the City.
Neighborhood/Community Interests (if known):
Low-income housing is of great interest to the community.
Financial Impact:
Total Transportation Impact Fee After Credit = $0
Total Park Impact Fee After 80% Exemption = $1,786.40
Total School Impact Fee = $0
Total Rebate rate: 50% Estimated rebate total = $ 6,841.49
See attached document for more detail.
Options:
1. Approve the restrictive covenant between the City and St. Francis House, LLC, waiving the identified impact fees.
2. Approve the restrictive covenant with amendments between the City and St. Francis House, LLC waiving the identified impact fees.
3. Take no action.
Attachments:
Covenant
Resolution
LOTT Approval Letter
LOTT Pilot Guidelines
Fee Reduction Outline