REPORT TO THE CITY COUNCIL
FROM: JENNIFER CLARK, Director
Planning and Development Department
THROUGH: PHIL SKEI, Assistant Director
Planning and Development Department
BY: CORRINA NUNEZ, Project Manager
Housing and Community Development Division
SUBJECT
Title
Approve a $1.5 million Permanent Local Housing Allocation Agreement with Broadway Plaza Family Apartments, LP for its Hotel Fresno Apartments currently underway and located at 1241-1263 Broadway Plaza in downtown Fresno
Body
RECOMMENDATION
Staff recommends the City Council approve a $1.5 million Permanent Local Housing Allocation Agreement with Broadway Plaza Family Apartments, LP for its Hotel Fresno Apartments currently underway and located at 1241-1263 Broadway Plaza in downtown Fresno.
EXECUTIVE SUMMARY
On December 15, 2022, the Council approved Resolution No. 2022-306 to support and fund the project with $1.5 million in PLHA funds. As provided for in the Resolution, the Housing and Community Development Division staff is presenting for Council approval the attached Exhibit "A" - PLHA Agreement for the $1.5 million in funding to Developer to complete the project.
BACKGROUND
APEC International, LLC is the developer of the Hotel Fresno project which consists of the adaptive/reuse/conversion of the former Hotel Fresno building. Construction of the project began in July 2019 and is currently about 90% complete. Developer has made its best effort to mitigate some of the unforeseen cost increases through securing additional tax credits. However, a shortfall of $1.5 million currently exists. Despite the delays and cost overruns, the developer has avoided cessation of construction and has made significant progress toward completion of the project.
The Hotel Fresno project cost is approximately $32,496,122 comprised of $16,900,000 in Tax Exempt Bonds, $3,037,676 in State Affordable Housing Sustainable Community Grant funds, $1.9 million in Fresno Housing Successor Agency...
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