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Economic Development Manager Sullivan stated that the City Council just discussed LAHA one <br />month ago, so the programs and applications have not yet been developed. He stated that perhaps <br />those could be developed and ready to go by the end of the year to make those available at the <br />beginning of 2027. He stated that the demand is not yet known, but there are a number of homes <br />in older areas of the community that need improvement. He stated that the homeowners would <br />also need to qualify by meeting AMI requirements in order to be eligible for the program. He <br />stated that it will be difficult to determine the viability of demand. He commented that the City <br />has typically not engaged in claw -back provisions for this type of funding. He stated that the first <br />allocation of $55,000 would come in at closing, and the $195,000 woul kely come in as work is <br />done through reimbursement/work contracts. He believed that a fram v of a contract would <br />be developed at the time of the purchase of the land. He comm; led that if desired, they could <br />negotiate on whether the LAHA funds would be paid back o .t , r, if fundraising exceeded <br />expectations. <br />Member Hills appreciated the desire to under promise <br />two units could be vacant for a period of time, and t <br />She asked if a specified timeline could be inclu <br />units, suggesting perhaps within 24 months, to ensure <br />Economic Development Manager Sulli <br />commit to one unit. He stated that if des <br />Agreement related to the other two units, <br />claw back on the land itself. He stated that <br />were not developed within that timeline, bu <br />remedy against a nonpro <br />over deliver, but concerned that the <br />roperty vould not be us- •ts 11 extent. <br />development r e other two <br />ni ion would bulfilled. <br />nsure <br />stated that at t time, the developer is willing to <br />benchmarks could be 'ncl ded in the Development <br />at that point, the City ld have lost the ability to <br />50,000 p'talty cou e incurred if the other units <br />unsure hchat would feel to exercise that <br />Member Riley statIl that the LA funds woul <br />shop, so the housing units are th - ired goal. <br />commit to one a 't within Apse <br />Ms. Mc rmott stat T at she would commit to an extended timeline. She stated that they <br />originally heard about the LAHA funds the County and are aware of the necessary reporting. <br />She`hoped they could be a et to community, reducing the administrative burden on City <br />Staff. <br />Member Stewart - d if t <br />e sed for low-income housing, not a coffee <br />asked if the applicant would be willing to <br />ditional units within a specified timeline. <br />is a probability that the funds could be split up to align with the <br />phasing of the hous ., along with the funds specified for closing. <br />Economic Developm- t Manager Sullivan stated that they could structure the agreement in that <br />way, noting that $50,000 would be spent at the time of closing. He stated that there are expenses <br />that will occur initially, such as parking, that will benefit all phases. He commented that the <br />$195,000 could be allocated in the beginning to get the project going and the first unit constructed, <br />but it could also be split between phasing if desired. He stated that he was unsure of the cash flow <br />of the applicant and believed that having more cash flow in the beginning would assist in gaining <br />partnerships. He stated that if the group wants to make changes, he would need those details in <br />order to build those into the agreements. <br />Economic Development Authority/ June 11, 2026 <br />Page 7of11 <br />