Administration backs below-market sale to enable 196 affordable units at historic Northwest Pipeline building

City staff and the selected development team presented terms for a below-market conveyance of the 2.42-acre Northwest Pipeline property to facilitate preservation and affordable housing. Staff said the site is appraised at roughly $18,000,000; the development team proposes a $1,000,000 purchase price with a conditional closing structure that requires evidence of financing, design review, and a development agreement before conveyance. The Grove proposal includes adaptive reuse of the historic building, about 196 affordable homes restricted for 50 years, at least 15,000 square feet of community-serving commercial space, a shared parking structure (approximately 100 stalls), a public plaza and public art.

Dan Nackerman (HAIM) and development partners explained affordability levels (all units at or below 80% AMI with an average near 60% AMI and an expected mix including ~80 two-bedroom and ~29 three-bedroom units) and programmatic commitments including a voluntary family self-sufficiency escrow and financial coaching. Nackerman said the team has spent about $3,164,000 of its own funds to date and acknowledged a remaining financing gap; he described planned upfront site activation and increased security at opening. Council members probed security measures, commercial leasing risks and repayment projections; the development team projected possible cash flow in year 15 in the $600,000–$800,000 range but cautioned market uncertainty.