Council grants Link Development two 90‑day ENA extension options for proposed Avenue Q affordable housing

The Palmdale Housing Authority and City Council voted unanimously to approve an amendment granting Link 4th Street Palmdale LP additional time to negotiate an exclusive negotiating agreement (ENA) for a proposed affordable housing development at Avenue Q and 4th Street East.

Anna Marie Lanoux, interim housing manager, told the council the developer had previously received two 90‑day extensions and now seeks two additional 90‑day periods (an initial extension plus an option for a second) so it can assemble a financing package that includes tax credits and grant awards expected to be decided in September. Lanoux emphasized the action authorizes time to negotiate; it does not approve a development plan.

During discussion, councilmembers pressed for the size of the funding gap and assurances the developer can close it. Lanoux said the shortfall is large — staff cited a figure in the meeting of roughly $40 million — and that the developer had applied to alternative funding sources with results expected in September. One councilmember reviewed public records and said the developer’s corporate history included past state filings flagged as delinquencies, raising concerns about capacity to perform.

Lanoux said the city retains discretion: if the developer does not secure funding the city can terminate negotiations and seek another developer. A councilmember requested a memo from city attorney and staff documenting the selection history, available recourse, and contractual remedies should Link fail to perform; the council approved the extension while requesting that follow up.

Next steps: the extension takes the negotiation period through the end of the calendar year if the option is exercised; staff will return with a city‑attorney memo on recourse and a selection‑history summary.