minhpd 10-23-23 - Laserfiche WebLink

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selling the property, the City must initiate a public, competitive process. All offers will be accepted. The City is not required to accept the highest offer, but the best overall offer. Councilmember Bullock referenced an eComment received by the neighbor seeking to purchase the property. She expressed concern that building a new home on the property will increase parking congestion. Councilmember Kepple suggested that the City set a requirement for tree planting on the property as a condition of the sale. Director Leininger noted there are differing points of view regarding the Westlake lot, with some looking to maintain greenspace and others hoping to build. Director Leininger discussed the outcome of other city owned properties adjacent to the former hospital site. These properties had been acquired by Lakewood Hospital Association in anticipation of potential expansion of the hospital. Upon closure of the hospital, they were transferred to the City. Since then, some of the properties have sold at market rate, one was sold to Lakewood Alive and another was sold to a developer. Director Leininger reviewed the existing city owned properties on Belle and St. Charles that are proposed to be marketed for sale as follows: 1472 Belle – currently using HOME funds to abate environmental issues. Perform selective demolition and begin renovation in 2024. 1476 Belle, 1477 St. Charles, 1471 St. Charles – all occupied structures 1457 St. Charles – vacant lot Director Leininger expressed a commitment to make three of these properties affordable housing at or below 150% AMI. He asked for flexibility regarding income eligibility and which homes should be sold as affordable. Proceeds from the sales would go into the Land Acquisition Fund which is currently at $1.1 million. Major outlays from the fund were Cove Community Center and Trinity Church. In response to a question, Director Leininger discussed the City’s relationship with the tenants in the occupied properties. He explained that they were notified of the pending legislation and have been on month-to-month leases for several years. The City remains open-minded about potentially considering offers from the existing tenants. He noted that the current rental rates at the properties are below market rate, and in one case, significantly below market rate. In response to a question, Director Leininger explained that the City seeks to sell the vacant lot at 1457 St. Charles to a third-party developer. In response to a question, Director Leininger explained why the City is reluctant to commit all five properties as affordable housing. He discussed the planning practice of creating mixed income neighborhoods versus a low-income housing district that could attract stigma. Additionally, he explained that if all five of these homes are sold below market rate it could negatively impact other people’s property values. 2