2017/12/13 Council Agenda Packet

• Low Barrier Facility I. As part of the City's Safe Streets Plan,the City intends to facilitate the construction of a permanent supportive housing facility to house individuals experiencing chronic homelessness. This facility is referred to in this resolution as a"Low Barrier Facility." J. This Low Barrier Facility will meet a critical need in our community by providing access to housing for individuals experiencing chronic homelessness,who are often individuals using more expensive and less effective services such as the jail or emergency room to meet basic needs of shelter. K. Expanded use of"housing first"was a priority recommendation of the Community Streets Initiative Taskforce as an evidence based best practice for addressing the issue of chronic homelessness. L. The preferred location for a Low Barrier Facility is the Unneeded Reservoir Property. This property is situated in proximity to public transit,grocery stores, and other amenities that are important for individuals transitioning from living outdoors to being part of a community through supportive housing. M. On May 11,2016,the City Council authorized the issuance of a Request for Qualifications for the purpose of selecting a developer and operator with experience developing and operating such supportive low-barrier housing facilities. N. On June 1, 2016,the City Council selected as developer Archdiocesan Housing Authority, a Washington non-profit corporation d/b/a Catholic Housing Services of Western Washington ("CHS"). The City later entered into an exclusive negotiating agreement with CHS. O. On November 9,2016,the City Council adopted a Resolution 7048,designating the Unneeded Reservoir Property as the preferred alternative for development of supportive low barrier housing, directing staff to commence the environmental review. P. CHS submitted Land Use Process Ill applications on December 30, 2016. The Hearing Examiner held a public hearing on May 18, 2017,and issued a decision on June 5,2017. Q. The City and CHS have agreed to transfer the Unneeded Reservoir Property to CHS for the Low Barrier Facility. City staff and CHS have negotiated an agreement to transfer the Unneeded Reservoir Property to CHS(the"Property Disposition Agreement"). Under the terms of the proposed Property Disposition Agreement, CHS will not pay City money for the Unneeded Reservoir Property. Instead, in consideration for the transfer, CHS will: 1. Secure the financing necessary to finance the development and construction of the Low Barrier Facility; 2. Execute and record against the Property a "Use Restriction Covenant" substantially the form as attached to the Property Disposition Agreement,which will cause the Property to be used for low barrier supportive housing for at least 50 years, all as set forth in the Use Restriction Covenant; 3. Execute and record against the Property the "Proiect Construction Covenant"substantially the form as attached to the Property Disposition Agreement,which will govern the development and construction of the Low Barrier Facility 9