DATE: January 5, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Vernon Gerth, Assistant City Administrator for Community and Economic Development
SUBJECT: e
Consideration Of A Request By The Franklin Housing Authority (FHA) For A Commitment Of An Allocation In The FY 2016 Budget To Off-Set A Portion Of The Sanitary Sewer And Water Development Fees (Access, System Development, Tap, And Effluent Fees) For Phase II Of The Reddick Redevelopment Project (Continued From 1/13/15 Worksession.
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Purpose
The purpose of this memorandum is to provide the Franklin Board of Mayor and Aldermen (BOMA) an overview of Franklin Housing Authority's Reddick Property Redevelopment Project, applicable development fees, and summary of their request that reduces the Sanitary Sewer and Water development fees associated with Phase II of their project.
Background
Reddick Property Redevelopment - Project Scope
Phase I (Complete) - 49 units within one, multi-family building
· 40 - Public Housing Units
· 8 - Tax Credit Units
· 1 - On-Site Managers Quarters
Phase II - 65 units in multiple buildings
· 34 - Public Housing Units
o 2 - Detached, Single-Family Dwellings
o 4 - 8 Unit Multi-Family Dwellings
· 31 - Tax Credit Units
o 3 - Detached, Single-Family Dwellings
o 14 - Duplexes (28 units)
Reddick Property Developments Fees
|
Phase I |
Phase II |
Total |
Road Impact Fees |
|
|
|
Public Units |
N/A |
N/A |
|
Tax Credit Units |
$ 13,833 |
$ 101,896 |
$ 115,729 |
|
|
|
|
Facilities Tax |
|
|
|
Public Units |
N/A |
N/A |
|
Tax Credit Units |
$ 5,811 |
$ 24,203 |
$ 30,014 |
|
|
|
|
Sanitary Sewer and Water |
|
|
|
Public Units |
Credit $172,175 |
$ 122,188 |
$ 122,188 |
Tax Credit Units |
applied to Phase I |
$ 251,224 |
$ 251,224 |
|
|
|
TOTAL $ 373,412 |
|
|
|
|
Fire and Irrigation Meters |
$ 13,123 |
$ 4,000 |
$ 17,523 |
|
|
|
|
OVERALL TOTAL (Estimated) |
|
|
$ 536,678 |
Existing Sanitary Sewer and Water Service
When the Reddick Property was originally developed in the mid-1960's the property was served through a single, master water meter. Section 18-113 of the City's Municipal Code no longer allows master meters to serve multiple dwellings/buildings. Each building, and in the case of duplexes, each dwelling unit is required to be served by its own service line and water meter. Sanitary Sewer and Water development fees are calculated on the size of the water meter needed to serve the use and building.
The Franklin Housing Authority recognizes the need and requirement of extending separate services and installing water meters to each building and, in the case of duplexes, to each unit. FHA has agreed to design the infrastructure accordingly. Since the cost of installing a master meter would be less expensive than the cost of providing water meters to each building, FHA is requesting the BOMA consider allocating funds to the Franklin Housing Authority in the FY 2016 budget for the difference between the sanitary sewer and water development fees associated with a master meter in lieu of the development fees associated with the individual building services and water meters. The difference is approximately $194,162.
Based on the information provided to date, the estimated Sanitary Sewer and Water Development Fess calculated on individual services and water meters totals $373,412. The Sanitary Sewer and Water Service Development Fees calculated on a single, three (3) inch master water meter totals $179,250. If approved, this request would reduce development costs $194,162 for Phase II of this project.
Financial Impact
As noted in the previous section, development costs would be reduced $194,162 for Phase II of Reddick Property Redevelopment Project. Even though the request is tied to sanitary sewer and development fees, it is recommended that any allocation appropriated by the BOMA to the Franklin Housing Authority be used to off-set development fees thereby keeping the sanitary sewer and water fund whole. The City's Water and Sanitary Sewer System Development fees have been established over time to provide that new system users provide adequate contributions related to system capacity and the cost of system and treatment plant infrastructure.
Recommendation
Staff supports the Franklin Housing Authority's redevelopment activities and, in this instance recommends the BOMA consider increasing their General Fund Appropriation to the Franklin Housing Authority on a one time basis in the FY 2016 budget to assist the Housing Authority in providing additional public and workforce housing in Franklin. The Housing Authority is requesting $194,162. Their current appropriation in the FY 2015 budget is $8,460.
Staff also acknowledges other entities interest in building lower cost housing that is affordable by families whose income is below 80% of the median family income levels in the Greater Nashville - Franklin - Murfreesboro MSA. The BOMA may also want to consider an annual appropriation to the Housing Reserve that, under certain conditions, allows entities who build high-quality, lower-cost housing to apply for to offset a portion of development fees.