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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-backprovisions for this type of funding. He stated that the first <br />allocation of $55,000 would come in at closing,and the $195,000 would likely come in as work is <br />done through reimbursement/work contracts. He believed that a framework of a contract would <br />be developed at the time of the purchase of the land. He commented that if desired, they could <br />negotiate on whether the LAHA funds would be paid back or not used, if fundraising exceeded <br />expectations. <br />Member Hills appreciated the desire to under promise and over deliver, but was concerned that the <br />two units could be vacant for a period of time,and the property would not be used to its full extent. <br />She asked if a specified timeline could be included to ensure the development of the other two <br />units, suggesting perhaps within 24 months, to ensure the vision/mission would be fulfilled. <br /> <br />Economic Development Manager Sullivan stated that at this time, the developer is willing to <br />commit to one unit. He stated that if desired, benchmarks could be included in the Development <br />Agreement related to the other two units, but at that point, the City would have lost the ability to <br />claw back on the land itself. He stated that a $50,000 penalty could be incurred if the other units <br />were not developed within that timeline, but was unsure how that would feel to exercise that <br />remedy against a nonprofit. <br /> <br />Member Riley stated that the LAHA funds would be used for low-income housing, not a coffee <br />shop, so the housing units are the desired goal. He asked if the applicant would be willing to <br />commit to one unit within phase one and the two additional units within a specified timeline. <br /> <br />Ms. McDermott stated that she would commit to an extended timeline. She stated that they <br />originally heard about the LAHA funds from the County and are aware of the necessary reporting. <br />She hoped they could be an asset to the community, reducing the administrative burden on City <br />Staff. <br /> <br />Member Stewart asked if there is a probability that the funds could be split up to align with the <br />phasing of the housing units, along with the funds specified for closing. <br /> <br />Economic Development 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 />EconomicDevelopment Authority/June 11, 2026 <br />Page 7 of 11 <br /> <br />