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REQUEST FOR COUNCIL ACTION <br /> Date: 2/23/15 <br /> Item No.: 14.c <br />Department Approval City Manager Approval <br />Item Description: Dale Street Redevelopment <br />B <br />ACKGROUND <br />1 <br />On January 26, 2015, the City Council motioned to table discussion of the Dale Street <br />2 <br />Redevelopment until the February 23, 2015 meeting. Staff has continued to work with Greater <br />3 <br />Metropolitan Housing Corporation (GMHC) since that time. Attached is the report from the <br />4 <br />February 17 RHRA packet that provides information related to the current status of the <br />5 <br />development. <br />6 <br />The RHRA Board reviewed whether the conditions related to item 3.f. in the Predevelopment <br />7 <br />Agreement regarding the Developer’s financial ability to undertake the development has been <br />8 <br />meet. GMHC has indicated it can only finance the first phase of the development along Cope <br />9 <br />Avenue, which is contained on the RHRA owned land. <br />10 <br />At their meeting the RHRA board was unable to determine if the development had satisfied the <br />11 <br />condition regarding demonstration of financial ability. The board reviewed the information <br />12 <br />submitted by GMHC and made two separate motions that failed. <br />13 <br />Based upon the fact that the RHRA was unable to make a determintation of financial ability of <br />14 <br />the developer, the City Manager and Community Development Director are recommending that <br />15 <br />the City cease participation in the proposed RHRA/GMHC redevelopment project that includes <br />16 <br />City-owned property on Dale Street. It is recommended that the RHRA and Council look <br />17 <br />towards developing a new course of action at a future joint meeting. <br />18 <br />PO <br />OLICYBJECTIVE <br />19 <br />This project addresses some of the City’s and HRA’s policy objectives related to promoting <br />20 <br />reinvestment and compatible housing choices. <br />21 <br />BI <br />UDGET MPLICATIONS <br />22 <br />If the City Council chooses to cease participation in the proposed RHRA/GMHC redevelopment <br />23 <br />project on Dale Street, it is anticipated that there will be additional staff time needed to solicit a <br />24 <br />new developer for the site. <br />25 <br />SR <br />TAFF ECOMMENDATION <br />26 <br />Staff recommends that the City not participate at this time with GHMC’s redevelopment of the <br />27 <br />Dale Street project. Additionally, staff recommends that the City Council and RHRA Board <br />28 <br />convene a joint meeting to talk about next steps for the properties. <br />29 <br />Page 1 of 2 <br />