City previews $4.1M support for 5 Points transit‑oriented land acquisition
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Summary
City staff presented a stage‑one short‑term loan recommendation to acquire a 1.25‑acre 5 Points site for a mixed‑income, transit‑oriented development. Staff said the request would use TOD and housing trust funds, cap the loan at 90% LTV, and leave the city in first‑lien position.
City staff presented the 5 Points land‑acquisition request during an action preview on Feb. 9, describing a two‑stage process in which council would finance short‑term land acquisition (stage 1) and later review a full development proposal (stage 2).
Warren Wooten outlined the site near the Gold Line, an approximate 1.25‑acre property anticipated for a mixed‑use, mixed‑income development currently estimated at 145 units. Staff said the short‑term financing would come from the city’s TOD fund and the housing trust fund; available totals cited in the presentation included roughly $1.47M in the TOD balance and a $5M carve‑out in the housing trust fund for land acquisition. The staff recommendation showed a city investment figure of about $4.1M, characterized as up to 90% of the lesser of paid or appraised value; the developer would provide the remainder.
Wooten said the city would protect its investment via a first‑lien position and limit loans to 90% loan‑to‑value. Councilmembers praised the land‑banking/TOD approach as a way to compete with market pressures and to secure affordable units near transit, while asking technical questions about the loan mechanics, repayment and nonresidential uses the development may include (office, grocery). Staff said the scheme is intended to accelerate affordable housing production in high‑opportunity transit corridors and to protect parcels from speculative market pressures.
Next step: staff will bring a formal action item to the Feb. 23 council meeting for council approval.