Franklin approves up to $3.5 million for Franklin Hill workforce and affordable housing project

The Board of Mayor and Aldermen of Franklin on Feb. 10 unanimously approved a resolution supporting a city financial contribution of up to $3,500,000 to Franklin Hill Project LLC to support construction of up to 44 affordable and workforce housing units at properties addressed 403 and 405 5th Avenue North.

City staff told the board the commitment is a "not-to-exceed" reimbursement arrangement that would cover infrastructure costs, development fees, construction costs and a portion of land formerly under the water management fund. "This reflects a not-to-exceed contribution of up to $3,500,000 toward the project," a staff member said during the meeting.

Staff and members of the Hill project team said a development agreement and the formal development plan will follow. The agreement, they said, will specify reimbursement timing and the contract terms that bind all parties. Project-team members Tom and Kathleen were in the meeting and available to answer technical questions, staff said.

Board members stressed the need for contract protections to ensure the public contribution is tied to delivery of units. "We can provide some protections that I think you're trying to make sure we put in place that it ties to the delivery of the project," a city staff member said. Alderman Barnhill and others noted that the city's earlier valuation and the stipulated use of the land mean the net public contribution is larger than the headline cash amount when land value is considered.

The resolution states the project would deliver up to 44 units, with a breakdown discussed at the meeting of approximately 10 units in an "affordable" category and 34 in a "workforce" category; staff said those numbers remain subject to final plan adjustments. "The goal is to get to that number," a staff member said; board members asked that the city ensure the final agreement obligates delivery and includes protections if the project does not proceed as planned.

The board voted to approve the resolution by voice vote. Officials said the development plan and a binding development agreement will return to the board for further approvals and will include the specific conditions for reimbursement and delivery of units.

The board's approval sets a financial ceiling for the city's participation; it does not itself authorize any immediate disbursement of funds. The next steps are completion of the development plan, negotiation of the development agreement and any required subsequent approvals by the board.