To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Tara Vargish, Development Services Director
Matt Gohl, Special Projects Manager
Title
Resolution Approving a Partial Fee Waiver for the Meadowmark Senior Multifamily Residential Housing Development
Body
________________________________________________________________________________
Executive Summary
On February 21, 2023, Town Council approved the partial fee waiver for $500,000 for Meadowmark. The formal resolution and agreement are attached to this item for final action.
Town staff received a fee waiver request from Castle View Owner, LLC in a letter dated November 22, 2022 (Attachment A) associated with the planned Meadowmark development. In partnership with the Douglas County Housing Partnership, the owner is requesting a $500,000 fee waiver for the development of 200 rent-restricted units for seniors whose income is 70 percent, or less, of the Area Median Income (AMI).
Town code allows up to 100 percent of applicable fees to be waived for attainable housing projects. Fees that can be waived include application and permitting fees, development impact fees and system development fees. Total Town fees for this project, as shown in the request, are estimated to be $4.18 million; the requested fee waiver amount reflects roughly 12 percent of these fees. Town Council has approved fee waivers in the past including for Auburn Ridge senior housing in 2013 and for senior housing at Oakwood Apartments in 2020.
This project is located on Filing 19, Lot 2 North Subdivision of the Meadows Master Development, north of Castle Rock Parkway and west of Highway 85, situated within Councilmember Hollingshead’s District. The vicinity map is provided here for reference.
Meadowmark has received an award of Low Income Housing Tax Credits (LIHTC) from Colorado Housing Finance Authority (CHFA) and also received a funding commitment from the Colorado Division of Housing (CDOH). CDOH funding requires support from the local municipality which would be satisfied by approval of this fee waiver request.
Budget Impact
Approval of the requested partial fee waiver would result in $500,000 less revenue for Town funds and affected funds will not be made whole for lost revenue. Waived fees would reduce impact proportionally as shown in the following table. The CR Water system development fees were not included in this fee waiver due to concerns with language in the bond covenants.
*Based on 2022 Development Fee Schedule
Staff Recommendation
Staff recommends approval of Castle View Owner, LLC’s partial fee waiver request totaling $500,000 of fees. It is further recommended that this fee waiver be contingent on Castle View Owner, LLC pulling a building permit no later than December 31, 2023.
Proposed Motion
“I move to approve the resolution and agreement to provide Castle View Owner, LLC’s $500,000 partial fee waiver request.”
Attachments
Staff Report
Attachment A: Castle View Owner, LLC Fee Waiver Request
Attachment B: Resolution
Exhibit 1: Fee Waiver
Exhibit 2: Agreement