Council delays vote on $30M revenue-bond conduit for 1300 Campbell Avenue redevelopment; moves matter to work session

Council received a detailed presentation from Tom Martin, redevelopment director, and representatives from Astoria Housing Partners on a proposed $50 million redevelopment of the vacant 1300 Campbell Avenue building into roughly 120'125 residential units. Astoria asked the Lynchburg Redevelopment & Housing Authority (LRHA) to serve as conduit issuer for $30,000,000 in private activity (tax-exempt) bonds to finance construction; the project relies on an equity stack including historic-preservation tax credits and affordable-housing incentives.

Tom Martin and Astoria representative Alan Michaels (Mr. Hall) said LRHA would issue the bonds as conduit debt with no financial obligation to the city treasury and that LRHA would receive an administrative fee. The developer said long-term leverage would be low (targeting 20'25% long-term debt) and that the property would be managed by a professional firm, Nossbaum, with on-site management and 24/7 security.

Council focused questions on due diligence: whether similar projects have been delivered by the developer group, how bond allocation limits are applied by the state, and what protections should be required for the city and tenants. Multiple council members said they wanted time to review the financing documents and have a work session with staff and the housing authority. After procedural debate on whether the finance committee recommendation bound council, a substitute motion to move the item to a work session and return it to general business passed 4'2 with 1 absent. Council recorded concern about vetting and emphasized the LRHA and staff should provide additional detail at the next work session before final council approval.