2004-09-20 - Laserfiche WebLink

Home Browse Search

7th, was approved by the following vote. Ayes: Dr. Brown, Mr. Caravati, Ms. Hamilton, Mr. Lynch. Noes: Mr. Schilling. PUBLIC HEARING/ORDINANCE: RIVERVIEW PARK LAND EXCHANGE (2nd reading) Mr. Tolbert explained that the City has been requested by Rivanna LLC to swap approximately 10,762 square feet in Riverview Park which staff feel is unusable. In return, the City will gain approximately 3,898 of more usable property that can be used to access the Park and the developer will build two affordable housing units to be built in partnership with Habitat for Humanities. He said Rivanna LLC has requested the sales price of these units not exceed $150,000, and the mortgage amount not exceed $120,000, and the first must be built within two years. He said it is recommended that the exchange of property not be finalized until the rezoning of the property is finalized. Mr. Brown said that the amendments made by Councilors at the first reading have been incorporated into the ordinance. He said that increasing the sales price for the affordable units to $150,000 requires an amendment to the ordinance. He noted that because the property is parkland, it must be approved by four Councilors. The public hearing was opened. Mr. Overton McGee, Director of Habitat for Humanities, thanked Council for their creativity and their desire to have affordable housing. He said this project will be a good example to show the development community. As there were no further speakers, the public hearing was closed. Mr. Caravati asked what are the consequences if the units are not built within three years, and Mr. Brown said it would be a breech of contract and subject to a suit. Mr. Caravati asked what work in cooperation means from an enforceability point of view. Mr. Brown said the developers and Habitat must work as partners to see that the project is done per the ordinance. Mr. Brown said that if the rezoning is not approved, it makes no sense to exchange the property. Mr. Schilling said he has spoken with the applicant and Habitat and has walked the property. He said we are exchanging approximately 11,000 square feet for 4,000 and are receiving affordable housing for consideration. He questioned how this will be addressed. He said he understands the design process and working affordability into the design. He said the cost of the lots is $13,000 each, and making Habitat pay this cost will increase the cost of the affordable housing units by $13,000 each. He suggested there be a three-party agreement that requires Rivanna LLC to give the lots to Habitat, thus allowing the units to be built for $13,000 less per lot. He said the design advantage is not greater than the savings. He said that the current requirement is that the units be build within three years, but said that if Habitat is given the lots they could start in February and finish in six months. He said the project may not be able to be done in three years given the market. He said if the developer wants to devote time and work with Habitat, Habitat is open to that. He said he feels this would provide for a better end project for affordability. Mr. Caravati said he would like to hear from the applicant. Mr. Chris Hayes, representing Rivanna LLC, said they have discussed the amount of $10,000 to $13,000 per lot with Habitat. He said they have an agreement that 1% of each house sold will be contributed to Habitat, which is roughly equal to that amount. He said the time to create an integrated whole is not insignificant and will take hundreds of hours. He said Habitat could build houses similar to what they have built in the past. He said this could become a prototype and they are committed to have an integrated project.