Council debates sale of Central Ward lot to Covenant House for 100% affordable building at $500,000

A contentious discussion on Nov. 5 focused on the proposed sale of a city-owned Central Ward parcel to Covenant House for $500,000 to develop a six‑story building that the administration described as 100% affordable and targeted in part to residents without addresses.

Councilman Mike Gonzales questioned both the proposed land use and the price, saying the parcel sits in an area of rising development and asking why a property with an assessed value in the millions would be sold for $500,000. "If it has assessed for $11,288,000, why are we selling it for $500,000? The city, I believe, is in dire need of money, and we are giving this away," Gonzales said.

Allison Ladd, director of economic and housing development, replied that the city adopted a policy to provide nonprofits and community-based organizations the first opportunity to purchase properties to support community development. "The reason for that is...the land subsidy is what is used to help make things affordable," Ladd said, adding the reduced acquisition price helps make units available to residents at lower AMI thresholds and to people without addresses who may lack income documentation.

Supporters of the transaction noted Covenant House already provides services adjacent to the site. Antonio Valla, the project owner’s representative, said the team is "exploring a range of public and private dollars" and expects a financing and permitting timeline that could place construction about a year after site control and a roughly two‑year build, subject to financing cycles. "We're hoping to be about a year away from that. And then a 2 year construction period," Valla said.

Council members urged clarity on sale terms and the administration said it would provide supplemental documentation. The administration and several councilors framed the transaction as a land subsidy intended to enable affordable and specialized housing that the private market could not deliver without reduced acquisition costs. Ladd referenced prior city policy choices and past land sales where subsidized prices were used to secure affordable outcomes.

No final vote was recorded in the public transcript on Nov. 5; council members asked for additional documentation and for the administration to continue coordinating with the council and development partners.