Cholo City Council prepares for $44M housing project approval amidst construction risks

The Show Low City Council meeting on May 6, 2025, centered around a proposed housing project aimed at addressing the community's growing housing shortages. The project, which involves a partnership with Sustainability Partners, is designed to provide affordable housing options while minimizing financial risks for the city.

City officials discussed the various risks associated with the project, including construction delays, material cost fluctuations, and operational challenges. However, they emphasized that the partnership would transfer most of the development risks to Sustainability Partners, allowing the city to focus on securing occupancy commitments from local institutions and employers.

A key point of discussion was the potential impact of inaction. Council members expressed concern that failing to move forward with the project could worsen existing housing shortages and affordability issues in Show Low. The proposed development aims to create a significant inventory of affordable housing, which city officials believe will attract industry and support local economic growth.

Despite the optimistic outlook, some council members raised questions about the project's viability and the risks involved. Concerns were voiced regarding the financial implications if the partnership were to falter, particularly if the city had to assume responsibility for the project. The council debated the necessity of exploring other funding options and whether Sustainability Partners should be considered a sole source provider for this type of service.

The meeting concluded with a commitment to further evaluate the project and its potential benefits for the community. City officials plan to present a development services agreement at the next council meeting, which will outline the terms of the partnership and the anticipated outcomes for Show Low residents. As discussions continue, the city remains focused on addressing the pressing need for affordable housing while ensuring that any risks are carefully managed.