Resolution 6184 - Laserfiche WebLink

construction of the transitional housing is approximately 5 years away, there is more than adequate time to plan and obtain the funding necessary for construction. The Executive Director of the Everett Housing Authority, in a letter addressed to DVS dated March 2, 2009 indicated that the Housing Authority fully supports your plans for provision of a new shelter together with administrative and supportive services for victims of domestic violence. "We further support the inclusion in your plans of a small transitional housing development at the 12th Street end of the property. "Our Board of Commissioners has formally agreed to serve as the lessee and developer of the transitional units. Our expectation is that the site would be leased to EHA (or to an entity controlled by EHA) and we would develop, own and manage the units. It would be our expectation to "project-base" vouchers at the site, utilizing the allocation already awarded to DVS as part of the Sound Families program, and supplementing them with adequate additional vouchers to cover all of the units. Using this approach will serve two important purposes: first, it would make the units affordable to the tenants, all of whom will be referred by DVS from the shelter; second, it would provide a secure source of rental income, using market rental rates, in order to satisfy a lender. "Since the site will not be vacated by the Army for three years, it is not possible to secure commitments at this time. The current weakened state of the credit market together with the focus of normal housing funders on "shovel ready" projects contribute to this situation. However, the transitional housing element of the proposal is modest in size and should not present any significant obstacles to completion. The generous lead time available should be of great assistance in putting the development and financing package together. "We are excited about your progress in this effort and look forward to working with you to make this entire undertaking a reality." 5. Proposed Financial Plan to Operate and Maintain Proposed Project The preliminary projections of the cost to acquire, remodel, develop, furnish and cover contingency expenses and equipment are as follows: *Capital Project Other Land acquisition $0.0 Fundraising (2006-2011) $0.8 Construction 2.8 3-Year Program Expansion (consistent with Development 1.0 Growth projected in strategic plan) 0.5 Project Contingency 0.9 Transition and start-up costs 0.1 Furnishings & Equipment 0.3 Overall project contingency (— 2%) 0.1 Sub-total Capital Project 5.0 Sub-total Other 1.5 Total Expenses $6.5 *(All figures are presented in millions) NOTE: The market value of the Oswald site with its acreage and existing buildings is not known. Based on preliminary work done to date, it may cost$3.0-$5.0 M more to acquire land and build "from scratch"on another property comparable to the size and location of the Oswald Center. The difference in cost for new construction rather than renovation of existing structures is factored in to this projection. 8