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Council hears one-time housing requests including $3M for Kendalwood and $1.7M for hotel conversion
Summary
Staff presented multiple one-time affordable-housing asks not yet baked into the FY27 budget, including $3 million for Kendalwood Phase 4, $900,000 for community services housing, and a $1.7 million request from Brick Lane Better Communities to convert the Holiday Inn on Emmett Street to permanent housing.
City Manager Sam Sanders and budget staff detailed several one-time housing requests that are not yet included in the proposed FY2027 baseline and would require cash allocations if council approves them.
Staff identified a $3,000,000 gap for Kendalwood Phase 4 and said the housing authority presentation in an upcoming work session would present the PHA perspective. A $900,000 request for community services housing is currently viewed favorably by staff but not finalized. Brick Lane Better Communities has requested $1,700,000 to convert the Holiday Inn on Emmett Street to permanent housing; Sanders said staff are initiating conversations with Brick Lane and with project leads on the 10th and Wirtland project to explore workable options.
Sanders emphasized these are additional asks "in addition to" the city’s $10,000,000 annual affordable housing commitment; he said the items listed are cash-funded and would add to the city’s commitments if accepted. Councilors asked staff for more detail on timing and whether proffer receipts or other one-time funds could be used; staff said proffer timing depends on certificates of occupancy and construction schedules and that staff will develop an explicit methodology for estimating and phasing expected proffer receipts before recommending uses.
No commitments were made; staff said they would continue negotiating with project proponents and return with recommended approaches for council consideration.
