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HomeMy Public PortalAbout1991_03_05SPECSPECIAL MEETING MINUTES OF THE LEESBURG TOWN COUNCIL MARCH 5, 1991 A Special Meeting of the Leesburg Town Council was held on March 5, 1991, at 5:30 p.m., in the lower level committee meeting room, 25 West Market Street, Leesburg, Virginia, pursuant to notice thereof having been delivered to all councilmembers prior thereto. The meeting was called to order by Vice-Mayor James E. Clem. Present were: Vice-Mayor James E. Clem, Councilmembers Georgia W. Bange, Christine M. Forester, Donald A. Kimball, Claxton E. Lovin, and William F. Webb. Absent was Mayor Robert E. Sevila. Also present were: Acting Town Manager Steven C. Brown, Planner Peter Stephenson and Deputy Town Attorney Deborah Welsh. Mr. Brown addressed the Council reviewing the staff report. He stated that staff strongly recommends that the Council hold its own public hearing. Mr. Pat Moynahan, Executive Director of the Loudoun Foundation for Affordable Housing (LFAH), addressed the Council explaining how the LFAH began. We are looking for projects to undertake throughout the county and town - knowing that grant funds are available. The deadline to file the application is March 8, 1991. Two public information sessions have been held and we are now asking the Council for the ability to move forward with this application. Once the application has been filed the Town of Leesburg has 60 days to decide and to hold public hearings. There is approximately $86,000.00 available to the Town of Leesburg for administration costs. Mr. Brown asked, if the Town of Leesburg withdrew their application within the 60 days, would the state hold this against the town in the future. Mr. Moynahan stated that he knew of communities that have withdrawn their applications and have received subsequent grants. Mr. Kimban asked how many projects LFAH has undertaken. Mr. Moynahan stated that LFAH has been mounting an education campaign until now. Mr. Ralph LaRocl~ representing LFAH, addressed the Council stating that these two projects will not solve the entire spectrum of the housing problem. Mr. Kimball stated that Council has an obligation to be mindful of staff resources. Mr. Brown agreed further stating that right now the comfort level with this project is low but staff is willing to put forth the effort to raise the comfort level. Mr. Moynahan stated that LFAH has a commitment to respect the community. The funds from this grant are used for acquisition of land, clearing of land, infrastructure, etc., not for construction. Mrs. Forester asked who would allocate the funding and why doesn't the county or town take advantage of this opportunity every year. Mr. Moynahan stated that Loudoun County does not want to get into rehabilitation or development. Mr. Leland Mahan, representing LFAH, stated that many communities do not take advantage of this grant because they are not aware of what grants are available. This is a quality development. Mr. Kimball questioned how LFAH would guarantee to keep the units affordable. Mr. Moynahan stated through deed restrictions. Mrs. Forester asked who determines who gets these units? Is preference given to Town of Leesburg residents? Mr. Moynahan stated that LFAH would pre-qualify people/pre-screen candidates. Mr. LaRock stated that Town of Leesburg involvement cannot be discriminatory but can be preferential. Mrs. Forester asked what effect win these units have on the market value, and what other jurisdictions have this kind of mixture. Mr. Moynahan stated that these units do not affect the market value. The appreciation rate is capped. The units are not comparable to other units. He noted other areas having these units include Fairfax, Arlington and Montgomery County. Mrs. Forester expressed support of the grant but would like to hold a Town Council public hearing. Mr. Kimball asked what level of staff support would be needed for this project and why does Kincaid Forest only propose 51% affordable housing - the need is great. Mr. Moynahan stated that a significant portion of staff support would be needed. Mr. Moynahan stated that Kincaid is proposed at 51% affordable because the land value is higher. Fifty one percent meets the guidelines. Mr. LaRock stated that we do not want to provide an enclave of affordable units. Fifty one percent is a high percentage. Mr. Lovin stated that he could support the resolution if it meets the criteria of the Town of Leesburg. Ms. Bange stated, with regard to the comfort level, that she personally knows the individuals involved with LFAH and feels very comfortable. They would be the first to scrub this project if they found something wrong with the grant. "I am a strong supporter of affordable housing. We owe it to our citizens." Special Meeting minutes of March 5, 1991 Mr. Kimball concurred with Ms. Bange and would like to see Kincaid Forest at 100 percent. A representative of Kincaid Farms addressed the Council stating that they plan to offer the land at below market value and apologized for the rush nature of this application. It is a worthwhile project and the Council should do it now rather than one year from now. Mrs. Welsh, Deputy Town Attorney, addressed the Council. She stated that her main concern was the lack of time and information. She met with the developers last week. This type project is recommended in the Town Plan as supporting affordable and elderly housing. She noted that the information provided to her was missing quite a number of pages - there was very little to review, therefore, she could not give the Council a complete report. The resolution states that the Town of Leesburg will be the applicant. How much will it cost the town to file the application? Is there any expense to withdraw the application if need be? The documents do not state that a locality may withdraw the grant application. She stated that she has no reason to disbelieve th~ applicant but she is just not familiar with this procedure. She asked if the LFAH would refund to the Town of Leesburg any expenses put out by the town and suggested that Mr. Mahan provide an opinion that the Town of Leesburg could withdraw the application in 60 days. Mr. Moynahan stated that it is possible to withdraw the application in 60 days according to the state staff. The pages missing from Mrs. Welsh's documents pertain to the budget and are application pages. There is no application fee. Mr. Brown stated that is was possible to hold two public hearings in the 60 days. Mr. Clem agreed that the Council was under a tight time frame. Town Council public hearings should be held. Mr. Webb asked what would happen if the town received $250,000.00 from the grant and then the state says there is no more money. Mrs. Welsh stated that she does not know what would happen. Mr. Lovin asked if it was possible that the application be granted before the 60 days, and would the town still be given the full 60 days, and will the town's Deputy Town Attorney become comfortable with this in 60 days. Mrs. Welsh stated that she would try. Mr. Kimball asked if a member of staff or Council should be on the foundation. Mr. LaRock stated that the foundation would welcome any members. On motion of Mrs. Forester, seconded by Ms. Bange, the following resolution was proposed and unanimously adopted. 91-51 - RESOLUTION - AUTHORIZING THE APPLICATION TO THE VIRGINIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS WHEREAS, the Loudoun Foundation for Adequate Housing, Inc. presented a Community Development Block Grant (CDBG) application proposal to the Planning and Zoning Committee of the Town Council on February 19, 1991; and WHEREAS, the application proposes affordable housing units at two separate development locations, tentatively known as First Street and Kincaid Forest, within the Town of Leesburg; and WHEREAS, encouraging the provision of a wide range of housing opportunities by type, density and price to meet the needs of all residents, and encouraging the provision of sufficient affordable and elderly housing are adopted Town Plan policies; and and WHEREAS, the availability of affordable housing is a significant economic development asset; WHE~, the first of two required public hearings regarding the proposed CDBG application w~s held on February 27, 1991 and no public opposition was raised; and WHEREAS, the second hearing will be held on March 6, 1991; and WHEREAS, the submission deadline for this application is March 8, 1991; and WHEREAS, the Town of Leesburg, as applicant for this grant~ intends to continue to work with the Loudoun Foundation for Adequate Housing, Inc. to acceptably define the specific terms and agreements of this proposal, and will seek additional public input prior to accepting the subject grant funds if so selected; and WHEREAS, the receipt of CDBG funds as proposed will provide an important social and economic development benefit for the town: THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as follows: The Acting Town Manager is hereby authorized to apply for up to $1,000,000 of Virginia Community Development Block Grant funds. These funds, and remaining funds provided by non- Special Meeting minutes of March 5, 1991 public sources, will be used to assist in the development and construction of up to 8 and 62 affordable dwelling units at two developments in Leesburg, Virginia tentatively known as First Street and Kincsid Fores~ respectively. It is projected that up to a total of 175 low - and moderate - income persons will benefit from the implementation of these projects. Aye: Councilmembers Bange, Clem, Forester, Kimball, Lovin and Webb Nay: None Absent: Mayor Sevila On motion of, and duly seconded, the meeting was adjourned at 7:20 p.m. Clerk of Council James E. Clem, Vice-Mayor Town of Leesburg