Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Affordable Housing topic
No spam. Unsubscribe anytime.
City to lend $7.28 million for Camden Heights affordable housing infrastructure
Summary
The committee approved a finance plan for the Camden Heights affordable housing infrastructure project: the city will act as the lender for a $7,280,000 construction loan at 5% fixed interest with a conservative 19-year payback estimate; approvals included a development agreement and related consent items.
The Legal & Finance Committee on Aug. 14 approved the city acting as lender for the Camden Heights affordable housing infrastructure project and advanced related consent items including a development agreement.
Mike Dugan of the finance department presented the loan structure: the proposed loan amount is $7,280,000 with a fixed 5% interest rate for the life of the project or loan. Dugan described a conservative 19-year repayment scenario that would recapture an estimated $5.1 million in interest and said the city would take a junior lien position on the property and obtain four personal guarantees. Draw requests will be managed through a trustee, with monthly draw packages, inspections and invoice vetting required prior to payment.
Community Development noted this loan-launch mechanism could be used on future TIF projects and that the Camden Heights project will bring 252 affordable housing units to northern Rapid City. The committee approved the loan approach and related consent items on voice votes; staff said a request will be presented to the full council next month to place the full loan amount on the bill list so monthly draws need not return to council for approval.
Justin Williams, assistant city attorney, said his office worked with community development and finance on the development agreement with ECG Rapid City LP; the agreement was approved as presented.
Committee members thanked finance staff for transparency and noted the mechanism is intended to recapture interest that would otherwise be paid to outside lenders.
