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Meeting Minutes
Industrial Development Authority
Regular Meeting
November 12, 2024| 7:30 a.m.
Chandler City Council Chambers
88 E. Chicago Street, Chandler, AZ
Call to Order
The meeting was called to order by President Charles Ertl at 7:31 a.m.
Roll Call
Commission Attendance
Staff Attendance
President Charles Ertl
Dawn Lang, Deputy City Manager | CFO
Secretary James Baglini, Jr.
Tawn Kao, Assistant City Attorney
Director Lee Kroll
Julie Goucher, Accounting Senior Manager
Director Shannon Wilson
Edyie McCall, Economic Development Sr. Prgm Manager
Chandler Escalante, Workforce Dev. Project Manager
Leah Powell, Neighborhood Resources Director
Amy Jacobson, Housing & Redevelopment Sr. Manager
Karla Lange, Management Assistant
Other Attendees
Zach Sakas, Bond Counsel, Greenberg Traurig, LLP
Emily Abeln, Senior Vice President of Development, Brinshore Development, LLC
Absent
Vice President William Nolde
Treasurer John Lok
Page 2 of 9
Scheduled and Unscheduled Public Appearances
None.
Approval of Minutes
1.
Director Wilson moved to approve the August 13, 2024, Regular Meeting Minutes.
Director Kroll seconded the motion. Motion approved unanimously (4-0).
Briefing Items
2.
Chandler Career Center Grant – 1st Quarter Report: Edyie McCall, City of Chandler
Economic Development Sr. Program Manager noted that the 1st Quarter report outlining
the most recent metrics has been provided to the board in their Agenda Packet and that
she would answer any questions the board might have.
The board agreed that moving forward, the quarterly report would be provided to the
board as part of the agenda packet and in-person report will not be required. If there
are questions regarding the report, the IDA board will provide questions for discussion
at a future meeting.
Ms. McCall concluded that they are meeting three of the four metrics and are diligently
working on getting local Chandler companies to sign up on the Career Center website.
3.
2025 Annual Chandler Resident Survey: Ms. Lang conveyed the annual budget
process for FY2025-26 has been initiated with the Mayor and Council and that every year
as part of this process, the city engages the public by requesting information via their
annual resident survey. She voiced that engagement by the members of the boards
and commissions are very important, so she wanted to ensure that the board is aware
that the survey is available, and to please plan to provide input. The survey is fairly short,
with six general key questions, and then is broken out by the city’s Council focus areas.
The survey will be available online and advertised through the various social media
outlets, and paper copies will also be available at several city facilities. The survey will
be translated into three languages this year to encourage as much participation as
possible. She emphasized that this is vital to get this feedback at the beginning of the
process prior to directors putting together budget requests for the year.
Responding to Director Kroll, Ms. Lang noted that there was a recent work session with
the Mayor and Council to address issues related to street construction, as there have
been feedback from residents regarding this topic. She noted that there is a proposed
permit for the construction companies working on streets, that includes a deposit paid
by the contractors. It includes a requirement to take down blockades every night once
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work is completed, as part of the issue is these blockades are not removed daily and
causing traffic issues.
She noted the survey will be available on the website from November 25 – January 10,
2025, and emphasized that staff does respond to every comment, if contact information
is provided.
4.
July, August and September 2024 Financials: Ms. Goucher presented the July
Statement of Net Position that explained Total Current Assets with Cash in Bank of
$228,521, $2,000 in Accounts Receivable and Investments of $1,102,125, providing Total
Assets of $1,332,646. Intel application deposit of $3,000 is recorded as a Current Liability.
The Beginning Net Position is $1,325,396 and a Year-to-Date Change in Net Position of
$4,250, providing an Ending Net Position of $1,329,646. The Statement of Revenues,
Expenditures, and Changes in Net Position for the month ended July 31, 2024, includes
Investment Income of $4,250, providing a Net Change in Net Position of $4,250 for July.
Ms. Goucher presented the August Statement of Net Position that explained Total
Current Assets with Cash in Bank of $230,521, which includes the collection of $2,000 in
Accounts Receivable and Investments of $1,106,192, providing Total Assets of
$1,336,713. Current Liabilities for the period are $3,000. The Beginning Net Position is
$1,325,396 and a Year-to-Date Change in Net Position of $8,317, providing an Ending
Net Position of $1,333,713. The Statement of Revenues, Expenditures, and Changes in
Net Position for the month ended August 30, 2024, no Operating Expenses, and
Investment Income of $4,068, providing a Net Change in Net Position of $8,317 through
August.
Ms. Goucher continued with the September Statement of Net Position that explained
Total Current Assets with Cash in Bank of $230,521and Investments of $1,110,208,
providing Total Assets of $1,340,729. Current Liabilities for the period are $3,000. The
Beginning Net Position is $1,325,396 and a Year-to-Date Change in Net Position of
$12,333, providing an Ending Net Position of $1,337,729. The Statement of Revenues,
Expenditures, and Changes in Net Position for the month ended September 30, 2024,
includes no Operating Income or Operating Expenses, and Investment Income of $4,015,
providing a Net Change in Net Position of $12,333 through September.
5.
IRS Form 990 Fiscal Year Ending June 30, 2024: Ms. Goucher conveyed that this form
was filed in September 2024 and is compliant with the IRS annual reporting schedule.
6.
Arizona Corporation Commission Annual Report: Ms. Goucher noted that this report
was also filed in September 2024 and is compliant with the Arizona Corporation
Commission’s annual reporting schedule.
Page 4 of 9
7.
Discussion of Application for Financing by the Chandler Industrial Development
Authority submitted by Brinshore Development, LLC, and its affiliates in an
amount not to exceed $55,000,000 for project expenditures pertaining to an
affordable multifamily development consisting of approximately 250 units with
community amenities for families and seniors: Ms. Lang voiced to the board that
Brinshore Development, LLC and its affiliates has submitted an application for financing
for the board to review in an amount not to exceed $55,000,000.
She offered that Mayor and Council have identified the need for affordable housing in
the community. Affordable housing is not just an issue in Chandler, but has been
identified nationwide, as the market has priced people out of homes. She continued
that Chandler is one of the few communities in Arizona that has a Public Housing
Authority Commission, which manages public housing units within the community.
Ms. Lang introduced Leah Powell, Director of Neighborhood Resources and Amy
Jacobsen, Housing & Redevelopment Sr. Manager for the City of Chandler who have
been working with the Mayor and Council, who have recently approved a new project
on McQueen Road between Frye and Chandler Blvd. which is a large affordable housing
development. The remainder of Chandler’s public housing was built in the 1970s-1980s
and is in need of major redevelopment. The first step will be to build this new
development and move the seniors and families out of the next oldest public housing
units into this new development.
The application the board has before them today is a partnership with Brinshore
Development, LLC and its affiliates to develop this next oldest, Site 3, housed on 73 S.
Hamilton. This project would demolish the existing 40-unit South Hamilton
development and rebuild it to 250 units.
Ms. Lang continued that this topic has been under discussion by the Mayor and Council
for awhile and affordable housing is not an easy solution. In the long term, the goal is
to expand the number of public housing units offered by the City of Chandler. She noted
that there is a program called RAD (Rental Assistance Demonstration) which converts
existing public housing units into privately owned, managed and maintained units. With
tax credits and other funding sources, this allows communities to either update or add
affordable housing.
She noted that this project focuses on families and vulnerable populations, who will be
designated to have more units available in our community.
Ms. Lang introduced Emily Abeln, Senior Vice President of Development, Brinshore
Development, LLC, which is a development firm based out of Chicago, Illinois, who
focuses on building affordable housing complexes for communities. Ms. Abeln offered
the floor to Ms. Powell.
Page 5 of 9
Ms. Powell reiterated that most of Chandler’s public housing was built in the 1970’s. She
offered that the City of Chandler’s housing units include five multi-family sites and 103
scattered units, which are mostly single-family, and are not intended for rehabilitation
at this time. The focus of redevelopment will be on the five city public housing, multi-
family sites. Ms. Powell noted that Site 3 is approximately eight acres, and that the
current site houses 40 units. The desire is to increase that density. She reported that
they will meet with the Mayor and Council next week to get more direction for future
projects.
Ms. Powell added that there are some upcoming changes to the designations of this site
as of January 1, 2025, to include loss of the DDA (Difficult to Develop Area) designation,
which impacts the ability to get certain tax credits, and will have a significant impact on
the financing for this project.
Responding to Director Kroll, Ms. Powell voiced that all of Chandler’s housing units are
always 100% occupied, with a 3,000-applicant waiting list. There are some applicants
for one-bedroom units that have been on the waiting list for over ten years. The City
of Chandler also offers Section 8 vouchers of approximately 500, with some specialty
vouchers on top of that, and that wait list is also around 3,000 applicants. So, the city
will never have an issue with unoccupied units, as these turn over very quickly when one
becomes available.
Ms. Powell continued that current HUD guidelines allow for a family of four with an
income of $100,000 to qualify for federal assistance, and occupants pay 30% of their
rent. She noted that some occupants have no income, so the city subsidizes both rent
and utilities. The city does have preferences for people who work and live in Chandler
and will be adding additional preferences for the new properties to include seniors,
people with disabilities and veterans. Ms. Powell reported that occupants typically stay
in a unit approximately five years, and for Section 8, the units are occupied around seven
years. She emphasized that these programs are a steppingstone toward self-sufficiency.
She also noted that while some move on to self-sufficiency, there is populations with
capped income, like seniors or those with disabilities who will never be able to make
additional income, so it is important to have a safety net of housing for these
populations.
Responding to Director Kroll, Ms. Powell voiced that the Mayor and Council and HUD
sets the preferences for the city. The Council acts as the Public Housing Authority
Commission, which includes the council members plus one person who lives in public
housing, and they produce an annual plan and approve a five-year plan that includes
these preferences.
Page 6 of 9
Responding to Director Kroll, Ms. Powell noted that the goal would be to triple the
number of units currently available, however, the Council has yet to decide on a
definitive number of units. She noted that tentatively they are hoping to get to 600-700
units when all is said and done and added that they do have the 103 scattered units on
top of that. HUD does not release vouchers often, but they continue to apply for more
of these vouchers. The city is currently offering around 550 vouchers.
Ms. Powell confirmed that this would account for approximately 15% of the overall need,
based on the waiting list for both public housing and Section 8. She also added that the
wait list has not been opened for several years, however the last time it was opened for
Section 8, there were around 8,000 applicants, and they run a lottery for 4,000 out of the
total applicants. It is about the same for public housing. She emphasized that there is
a focus on being able to support service workers at restaurants and hotels and also
includes staff at schools and even some city employees meet the threshold, so it is
important that there are places for people to live where they work.
Responding to President Ertl, Ms. Powell reported that the lottery system for both public
housing and Section 8 weeds out a lot of potential for duplicate applicants.
Ms. Abeln reported that although Brinshore Development, LLC is an independent,
private firm, they almost exclusively partner with Housing Authorities and non-profits to
develop housing. She offered compliments to the City of Chandler on how well-
maintained the public housing units are, and how that demonstrates the care the city
demonstrates toward its residents.
Ms. Abeln continued that the project timeline for closing on the bond is in 2026, however
there is a long lead time due to the residents being moved from one housing site to
another. She continued that the affordable housing financing environment continues
to be challenging, and they experience the same market pressures, like increased
interest rates, insurance costs, operating expenses and construction costs. Additionally,
for a project like this, there costs incurred for bond fees and legal fees.
Ms. Abeln noted that given that this project is two years out, there will be shifts in the
project, and she plans to keep the board updated as it moves forward. She voiced that
the project would remain at 250 units, and the unit mix will essentially remain the same.
She reiterated that the reason for bringing a project like this to the board so early is
because of the low-income housing tax credits, which are a dollar-for-dollar tax liability
offset for the corporations that purchase them. There are incentives to build in DDAs
(Difficult to Develop Areas), which HUD (Department of Housing and Urban
Development) defines, and based on their sites published for 2025, this site will no
longer meet that designation, which equates to a 30% reduction in tax credit calculation.
Page 7 of 9
Ms. Abeln voiced that by putting forth the inducement resolution and requesting the
board’s approval, this allows them to apply for volume cap through the state of Arizona
at the beginning of 2025 and within the next 30 days applying for the 4% housing tax
credits, which with the approved application, qualifies within the year that the
application is submitted.
Ms. Abeln continued by explaining the RAD conversion program which includes a
private, limited partnership that has the benefit of state oversite in terms of the public
side, and ensures compliance and maintenance of the building, which interests the tax
credit investors to ensure the upkeep and care of the development and initial
underwriting because they want to protect the tax credits. This allows for the private
sector to do the heavy lifting for financing the project and overseeing the closing as well,
so it takes the burden off the government entity. She noted that the public housing
would be at approximately 80% AMI (at are below median income) for a family of four,
which would equate to $80,000.
She noted that the 250 proposed units are heavy on one-bedrooms because of the
senior housing priority, which is an initiative for the City of Chandler. She voiced that of
these units, due to the market rate and income in the city, 100% of the units would be
affordable, as the cost of capital is too high, and none will be able to be rented at market
rate.
Mr. Sakas voiced that these projects are extremely complicated, as there are outside
factors that the developer must qualify for, like tax credits, which do not come through
the IDA board for approval. However, combining tax credit financing with tax exempt
bond finance can make it attractive for developers. Until recently, there was little
incentive to apply for tax exempt bonds, as regular market money was easier to apply
for and was cheap, and they could still qualify for the tax credit financing. As interest
rates increase, the combination of tax credit financing combined with tax exempt bonds
become more advantageous for developers. The purpose of approving the inducement
resolution today is to allow Brinshore Development to apply for volume cap with the
state of Arizona. In conjunction, Brinshore will continue to work with the Arizona
Department of Housing on the tax credit front. He noted that their application is
complete and that there is sufficient information for the board to make a determination
from a preliminary basis.
Mr. Sakas noted that there is an additional feasibility report and application process
required for affordable multifamily housing deals that go through an IDA. There is a
population threshold to meet this requirement. The Arizona IDA, the Phoenix IDA and
Maricopa County IDA qualify for an exemption from this requirement, but the Chandler
IDA does not. This will be tabled for a later discussion but is for informational purposes
as a possible concession to the Chandler IDA fees, annual fees and other costs. He
Page 8 of 9
added that the application fee of $3,000 has been paid in full and is in good standing
with respect to the application.
Mr. Sakas continued that Brinshore Development LLC is getting in early for this deal, as
the volume cap offered through the State of Arizona was fully subscribed in 2024. Given
the scope of this project at $55,000,000, Brinshore is giving themselves and extra year
to ensure that they will be awarded this request either in 2025 or 2026.
Responding to Ms. Abeln, Mr. Sakas confirmed that once Brinshore Development
submits the tax credit application, they have 730 days to get the bond volume cap
through the state of Arizona.
Responding to President Ertl, Mr. Sakas confirmed that this is a preliminary inducement
resolution, and that more details on how the bond will be structured will come back to
the board for approval, with the details of the revenue sources pledged and repayment
structures. This is really the preliminary step to be able to request bond volume cap.
Action Agenda
8.
Discuss and possible adoption of Resolution 2024-03, granting preliminary
approval for and declaring the intention of the Authority to issue its multifamily
housing revenue bonds in an amount not to exceed $55,000,000 for Brinshore
Development, LLC or its affiliates
Director Kroll moved to approve Resolution 2024-03, granting preliminary approval for
and declaring the intention of the Authority to issue its multifamily housing revenue
bonds in an amount not to exceed $55,000,000 for Brinshore Development, LLC or its
affiliates. Director Wilson seconded the motion. Motion approved unanimously (4-0).
Ms. Jacobsen thanked the board for its approval and noted that there is a focus on
breaking the cycle of poverty with other programs offered today. There is a family self-
sufficiency program kicking off through a financial literacy program for local junior high
and high school students. She is hoping the school district will eventually come on board
with the program, which is a national model with twelve components, soon to be a
thirteenth component on buying a home. Ms. Jacobson noted this should be in the news
in the upcoming week as it is getting a lot of attention. She voiced that it includes junior
high and high school students that are part of the public housing youth that live on
Chandler’s sites. They will begin this as part of an after-school program that includes
financial literacy focusing on the students but hopes for parent involvement as well. She
noted that this education will continue with the development of the new sites.
Page 9 of 9
9.
2025 Industrial Development Authority Board Regular Meeting Schedule.
Director Wilson moved to approve the 2025 Industrial Development Authority Regular
Meeting Schedule. Director Kroll seconded the motion. Motion approved unanimously
(4-0).
Member Comments/Announcement
None.
Calendar
10.
The next regular meeting will be held on Tuesday, December 10, 2024, at 7:30 a.m.
Informational Items
None.
Adjourn
The meeting was adjourned at 8:17 a.m.
___________________________
Charles Ertl, President