5a. Approval of the Briarville PILOT Agreement
LDG Development has established a limited partnership, The Briarville Apartments LP, to acquire the parcel located at 600 Creative Way, and develop a 184-unit affordable housing complex. The Briarville Apartments LP have applied to the Tennessee Housing Development Agency (THDA) for a 4% Low Income Housing Tax Credit (LIHTC) to help finance the construction of this complex. The tax credit will result in an equity amount of approximately $11,094,061. When completed, the Briarville will be comprised of 92 two-bedroom units and 92 three-bedroom units as well as a pool, a gym, a business center, and a community center. The project will be reserved for families with average household incomes at or below 60% of the area median income (AMI), consistent with THDA’s income averaging guidelines.
Staff is recommending approval a PILOT having an initial payment of $22,000 in lieu of property taxes after the project is placed in service. The PILOT payment would increase by 3% annually over the 10-year life of the agreement. This PILOT payment was based on a review of the applicant’s sources and uses, debt obligations, as well as projected cash flow to the property. MDHA estimates this to be a tax abatement of approximately $435,992 for the first year the property is placed in service. The current uses of the site generate $5,771 in annual property tax. If approved, this would leave MDHA’s annual abatement capacity at $92,692.
5b. Driver’s Safety Match Grant Program
MDHA is committed to the safety and well-being of its employees. Each year MDHA provides defensive driver training for new employees that drive agency vehicles; and every three years all employees who drive agency vehicles are provided training. The purpose of the training is to educate staff on safe driving to reduce the number of vehicle accidents. MDHA contracts with the Tennessee Regional Safety Council to provide 4-hour training to Agency staff. The training consists of: education on safe driving techniques; defensive driving; dangerous driving situations; unsafe driving behaviors and attitudes. After the completion of the training, staff is required to pass a defensive driving written test.
MDHA holds automobile liability coverage through Public Entity Partners and is therefore eligible to seek reimbursement through a grant for the costs of offering driver’s safety training to employees. Public Entity Partners awarded this grant to MDHA in 2019. If the Board approves, the Agency will apply for the grant for 2020. The grant funds will reimburse MDHA for half of its driver’s safety training costs, up to $4,000 maximum. MDHA is responsible for the balance of this expense in the form of a match.
5c. Options for Five Pointes Redevelopment District
The Five Points Redevelopment Plan is scheduled to expire at the end of the year. Council member Withers has introduced a broad re-zoning to closely match the uses and height restrictions contained in the Plan. MDHA received a joint letter signed by the Historic East End, Lockeland Springs and Historic Edgefield neighborhood associations requesting MDHA extend the redevelopment district for a period of five years or until December 2025. The Development Committee requested options to be presented to the full Board at the October 13 and allow interested parties to voice their position on any action the Board may take.
The three paths under consideration are:
1. Extending the district as requested by the neighborhood organizations. That extension can be for up to five years as requested, or any other time deemed appropriate.
2. Extending the district for a time frame that coincides with the rezoning proposal now pending at Metro Planning. This would allow the Councilman ample opportunity to continue discussions with all impacted property owners and make any adjustments to his Bill.
3. Allowing the plan to expire as scheduled.
Published On: October 12, 2020
