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RES NO. 2018-03 ESTABLISH GOALS FOR THE CITY-OWNED SUZUKI PROPERTYRESOLUTION NO. 2018-03 A RESOLUTION of the City of Bainbridge Island, Washington, establishing goals for the conservation and development of affordable housing on the City -owned Suzuki property. WHEREAS, the City of Bainbridge Island purchased the property known as the Suzuki property in 2000; and WHEREAS, the property is located within the Winslow Sewer Service Area; and WHEREAS, in 2015, the City invited development teams to participate in a competitive process to assist with the development of affordable housing on the Suzuki property; and WHEREAS, the City Council selected a team comprised of Olympic Property Group, Housing Kitsap, and Jonathan Davis; and WHEREAS, the 2016 Housing Needs Assessment identified a demand for affordable housing options on Bainbridge Island; and WHEREAS, the 2016 Comprehensive Plan contains numerous goals related to affordable housing. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DOES RESOLVE AS FOLLOWS: Section 1. The City Manager is directed to negotiate a development services agreement with Olympic Property Group for the purpose of completing all necessary work required for permits, approvals, and development of the site. Section 2. The development services agreement shall incorporate the following goals: A. The project shall be 100% affordable with the goal of achieving affordable housing for income levels of 30 — 120% AMI. B. The project shall be a mix of rental and homeownership units. C. The project shall create permanent affordable housing. D. 50% of the land value related to the site will be contributed to the project by the City of Bainbridge Island. E. Ownership of the project after permit approvals have been obtained will be as follows: Page 1 of 2 1. Green space will be held in a land trust administered by a nonprofit or governmental entity; 2. Homes for sale will be held in a community land trust to be administered by Housing Resources Bainbridge or a similar nonprofit entity. If necessary to assure permanent affordability, there should be deed restrictions and/or covenants providing for permanent affordability of the homes; and 3. Homes for rental will be held by a partnership of Housing Kitsap and tax credit investors. In addition, there shall be deed restrictions and/or covenants providing for permanent affordability of the homes. F. The project shall be designed to develop the optimal number of affordable housing units, consistent with the 2016 Comprehensive Plan, zoning requirements, the 2017 Environmental Assessment prepared by Environmental Science Associates ("ESA"), site characteristics, sustainable development practices, and financial considerations. Section 3. The City Manager shall provide the development services agreement to the City Council for approval. Section 4. If the development services agreement is approved, the City Manager shall provide status reports to the City Council during City Council Business meetings at project milestones when Preliminary Design is completed, when Preliminary Approval has been achieved, and prior to beginning site engineering, construction, and development. At each of these milestones, City Council action to proceed will be required prior to moving to the next phase. PASSED by the City Council this 23rd day of January, 2018. APPROVED by the Mayor this 23rd day of January, 2018. ATTEST/AUTHENTICATE: t By: Christine Brown, City erP FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL RESOLUTION NO. By: Kol Medina, Mayor January 19, 2018 January 23, 2018 2018-03 Page 2 of 2