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HomeMy WebLinkAbout1994-12-12 95-37 ORDERDate Rogust 22, 1994 Itam NO. 95-37 Stem/Subject: Directing the City Manager to Withdraw City's Interest in Acquiring Surplus Mousing Unite Responsible Department: Community 6 Econ®ic Development Dept. Commentary: At a recent workshop, the City Council discussed the issue of whether to continue to pursue the acquisition of 36 additional surplus unite at the former Charleston Family Housing Area. These units would need to be acquired at Fair Market Value which is in the range of $1 million. no consensus of the Council was that the City's priority should be the successful operation of the previously acquired 60 units and the Shelter Plus Care Program. Due to fiscal and Staff resource limitations, the consensus was that the City should inform the General Services Administration that Bangor is no longer interested in this property. The attached Order formalizes such action. dz D p tment Reay d Manager's Comga�to 4 P s�dn(r3i44o GSA elu�eae+-GR:-�LI/�iM is City Manager Associated Information:0,.4". Budget Approval: Finance Director City Solicitor VU Introduced For X Passage _ First Reading page 1 of 2 Referral 95-3] Assigned to CamNur Popper December 12. 1994 CITY OF BANGOR (TITLE.) (DrUr£ ....Dire criesCity MawSer to Withdran City's Interest in ... .Smpl Rowing . .Unit ............. _._. ........ ........._. _.... _. _. By W City CwwB of W CHP ofeanysr. ORDERED, THAT WHEREAS, in .Tune 1993 the City of Bangor expressed prelfaimry interest in obtaining some or all of the former Charleston Family Housing Area from the General Services Administration and; WHEREAS, the City was awarded 60 units of such housing through the provisions of the imxinney Homeless Resistance act and; WHEREAS, the remaining 36 units of housing can only be secured through a fair market value payment to the United States goverment and; WHEREAS, the City of Bangor is committed to the successful operation of the previously approved 60 units of housing and the Shelter Plus Care Progress and; WHEREAS, the City of Bangor does not have the fiscal or staff resources to acquire and operate the additional 36 unite. THEREFORE, BE IT ORDERED THAT the City Manager be directed to inform the United States General Service Administration that the City does not wish to acquire. the additional 36 units at the former Charleston Family Housing Area. IN CITY COUNCIL December 12, 1994 Referred to Committee for Rec ideration / CITY E IN CITY COUNCIL January 9, 1995 Pas d / CITj�CLgRX 95-3I ORDER Title, Directing City !onager to Withdraw City's Interest in Surplus Rousing Units. ...1+x•`/1'..... ... unci � " Councilman Maureen R. Healy, Deputy Director Office of Real Estate Sales Federal Property Resources Service General Services Administration Thomas P. O'Neill, Jr. Federal Building 10 Causeway Street Roston MA 02222 95-3] FA thia date - December 5, 1994 Dear Ms. Healy: This letter is in response to your November 22, 1994 letter to Mayor Charles Sullivan. no City has made a preliminary determination that we cannot support an outlay of $700,000 to purchase this property. We would like to outline the following possible scenario for your review and response. 1. The City of Bangor would issue a Request for Proposals to housing developers for the purpose of soliciting proposals to develop the 36 remaining Charleston units into an affordable housing project. 2. The City would select a Tentative Developer based on certain criteria ouch as compatibility with the City's transitional housing project and surrounding privately owned residential uses, the property tas paying status of the proposal and the projects' relationship to the affordable housing needs of the community. 3. The Developer would provide the City with a guarantee of financing to ensure that the City's purchase price of $700,000 is "taken out" immediately upon the City's acquisition of the units from GSA. 4. The City would sell the units to the private developer for housing as described in the selected proposal to the City. If we were to undertake such a process, it would likely take 6 months to issue e an RFP, select a developer and confirm :the availability of financing from the developer. 95-3] 2/ We are planning to ask the City Council to take official action on whether to pursue acquisition of the 36 units at an upcoming Council meeting. Could you provide us some feedback as to whether the above process is acceptable to GSA? Thank you for your attention to this matter. If you have any questions, please call me or Rodney McKay at -(307) 945-4400, ext. 211. ARG/rp c; "Edward A. Barrett) City Ravager Rodney G. McKay, Caomunity Dev. Director Keno/Mealy Sincerely, Kenneth R. Gibb Director