Resolution No. 2025-10 Approving LIHI Development Agreement - 625 Winslow Way East4926-2966-5084, v. 1 1
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RESOLUTION NO. 2025-10
A RESOLUTION of the City Council of the City of Bainbridge Island, Washington,
approving a Development Agreement between the City and Low Income Housing
Institute (LIHI) for the development, construction, operation, and maintenance of an
affordable housing project at 625 Winslow Way East.
WHEREAS, the Bainbridge Island City Council has identified affordable housing as a City
priority and is committed to expanding the supply of housing on the Island that serves lower income
households, particularly families with children, employees of Bainbridge Island businesses and public
agencies, and seniors who might otherwise be displaced from the community; and
WHEREAS, the City is the owner of two adjacent parcels of real property located at 625
Winslow Way East and 180 Olympic Drive in the City of Bainbridge Island, which the City intends to
merge into a single parcel of land (the “Land”); and
WHEREAS, the Land has been identified by the City as an ideal location for a significant supply
of affordable rental housing greatly needed in the community, and the City desires to have the Land
developed and operated as an affordable housing project (the “Project”); and
WHEREAS, on April 22, 2024, the City issued a Request for Qualifications from established
affordable housing developers capable of developing and operating a mixed use development with
affordable housing units above and a ground floor commercial or other non-residential use component,
using a combination of tax-exempt bond financing and the Federal 4% Low Income Housing Tax Credit
program. In response, the City received six Statements of Qualification from interested developers and
operators; and
WHEREAS, based on the City’s review of the Statements of Qualification, the City selected
Low Income Housing Institute (LIHI) as its preferred affordable housing developer. LIHI is experienced
in the development and operation of affordable multifamily rental units in Washington state and with
Federal and state laws and procedures for the financing of such projects, including but not limited to, tax-
exempt bond financing, Federal tax credit financing, and county, city, and state housing trust funds; and
WHEREAS, LIHI and the City executed a nonbinding term sheet on December 13, 2024, setting
forth the parties’ expectations concerning the construction and operation of the Project and providing a
framework for further binding agreements, including a Development Agreement under which the Project
will be designed and financing will be sought, and a long-term Ground Lease and Regulatory Agreement,
under which the Project will be constructed and operated as affordable housing for a period of not less
than 75 years, and up to 99 years if required by the financing sources; and
WHEREAS, LIHI and the City Manager have negotiated the terms of the Development
Agreement and the Development Agreement has been presented to the Bainbridge Island City Council for
review and approval; and
WHEREAS, the City Council has considered the terms of the Development Agreement and has
determined that entering into the Development Agreement will further the Council’s goal of providing
affordable housing for those who live and work in Bainbridge Island and is therefore in the best interests
of the City and its residents and businesses.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND,
WASHINGTON, DOES RESOLVE AS FOLLOWS:
4926-2966-5084, v. 1 2
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Section 1. The Development Agreement between Low Income Housing Institute (LIHI) and the
City of Bainbridge Island for development, construction, and operation of an affordable housing project at
625 Winslow Way, attached to this Resolution as Exhibit A, together with all its attachments, is hereby
approved. The City Manager is authorized to execute the Development Agreement on behalf of the City.
Section 2. This resolution shall take effect and be in force immediately upon passage.
PASSED by the City Council this 13th day of May, 2025.
APPROVED by the Mayor this this 13th day of May, 2025.
Ashley Mathews, Mayor
ATTEST/AUTHENTICATE:
Christine Brown, MMC, City Clerk
FILED WITH THE CITY CLERK: May 9, 2025
PASSED BY THE CITY COUNCIL: May 13, 2025
RESOLUTION NO. 2025-10