HomeMy WebLinkAbout15. 22-27JANUARY 25, 2022 22-27 RESOLUTION
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PURPOSE: APPROVE FINANCIAL ASSISTANCE FOR SMITH SCHOOL LOW
INCOME HOUSING REDEVELOPMENT ($300,000)
INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT
WHEREAS, Smith School Lofts, LLC require an assurance that the City will
provide a $300,000 loan for the Smith School low income housing redevelopment before
they can begin construction; and
WHEREAS, the Department of Community Development submitted a
Neighborhood Investment Fund grant application to the State of Wisconsin Department
of Administration in November 2021 to provide financial assistance to developers
working on low income housing projects, and the awards of said grant have not yet
been announced;
WHEREAS, in the event the City is not awarded the Neighborhood Investment
Fund grant, financial assistance can be provided to Smith School Lofts, LLC as a
deferred loan with a 0% interest rate and a 15 year payback period using Healthy
Neighborhood Initiative funding.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that financial assistance for the Smith School low income housing
redevelopment in the amount of $300,000 is hereby approved.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
TO: Honorable Mayor and Members of the Common Council
FROM: Kelly Nieforth, Community Development Director
DATE: January 20, 2022
RE: Approve Financial Assistance for Smith School Low Income Housing
Redevelopment ($300,000)
BACKGROUND
City staff regularly keeps in contact with the developers who have active projects in the city to
ensure their projects are moving along without any issues. In late 2021, the developers of the
Smith School low income housing redevelopment project contacted city staff and inquired if
there were any additional funds to apply towards their project. The developers indicated that
they were unable to secure a WI Department of Administration (DOA) HOME loan and the
price for the project had increased by over $600,000. The developers are providing additional
private equity into the project, but asked if the city had a loan for $300,000 that they could apply
for and use towards the project.
City staff planned to use the allocated funds for private developers who are constructing low
income housing in the city from the WI DOA Neighborhood Investment Fund grant that staff
applied for in November 2021. Unfortunately, the WI DOA has not announced the awards yet
but the Smith School developers need assurance that they can receive $300,000 from the city to
close on their WHEDA loans to start construction.
ANALYSIS
In absence of the DOA grant funds, staff determined that the city’s Healthy Neighborhood funds
could be used as a funding source for the Smith School developers. The Healthy Neighborhood
fund has a balance of $2.7 million of unallocated funds and will be receiving roughly $500,000
in the next five years from the one year TID extension for affordable housing programming.
City staff proposes that the money from the Healthy Neighborhood be loaned out as a deferred
loan with a 0% interest rate and a 15 year payback period.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
FISCAL IMPACT
There is no fiscal impact to the City’s budget. However, this funding will help the developers
complete an affordable rental housing project that would have not been feasible without the
additional funding.
RECOMMENDATION
The Council approves the Financial Assistance for Smith School Low Income Housing
Redevelopment ($300,000).
Respectfully Submitted, Approved:
Kelly Nieforth Mark A. Rohloff
Community Development Director City Manager