title
To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a Highland Grove Development Area Cooperation Agreement between the City of Richmond and the Better Housing Coalition for the purpose of providing for the redevelopment of the properties located at 500 Dove Street, 509 Dove Street, 2641 Richmond Henrico Turnpike, and 2651 Richmond Henrico Turnpike and known as Highland Grove in the city of Richmond. (6th District)
body
THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That the Chief Administrative Officer, for and on behalf of the City of Richmond, be and is hereby authorized to execute a Highland Grove Development Area Cooperation Agreement between the City of Richmond and the Better Housing Coalition for the purpose of providing for the redevelopment of the properties located at 500 Dove Street, 509 Dove Street, 2641 Richmond Henrico Turnpike, and 2651 Richmond Henrico Turnpike and known as Highland Grove in the city of Richmond. The Highland Grove Development Area Cooperation Agreement shall be approved as to form by the City Attorney and shall be substantially in the form of the document attached to this ordinance.
§ 2. This ordinance shall be in force and effect upon adoption.
DATE: November 13, 2023 EDITION: 1
TO: The Honorable Members of the City Council
THROUGH: The Honorable Levar M. Stoney, Mayor
THROUGH: J.E. Lincoln Saunders, Chief Administrative Officer
FROM: Sherrill Hampton, Director,
Department of Housing and Community Development
RE: Approval of the Highland Grove Redevelopment Area Cooperation Agreement and Authorization for the Chief Administrative Officer to Execute the Agreement
ORD. OR RES. No.
PURPOSE: This O&R request is to approve the Cooperation Agreement (see Attachment A) by and between the City of Richmond (“City”) and Better Housing Coalition (“BHC”) to provide funding of up to $7,294,000 to facilitate the installation of infrastructure improvements for the development of Highland Grove Phase I and to authorize the Chief Administrative Officer to execute the Agreement and transfer the funds to BHC pursuant to the payment schedule as defined in the Cooperation Agreement.
BACKGROUND:
The proposed development of Highland Grove into a mixed-income community has been a longstanding goal of the City and the Richmond Redevelopment & Housing Authority (“RRHA”). The City has identified the expansion of housing choices and the affordability, accessibility, and availability of safe, quality, and affordable housing for all residents, as a top priority. The City views its collaboration with RRHA and the developer, BHC, as an important catalyst in transforming Highland Grove into a vibrant mixed-income community.
The Highland Grove Project is a development initiative that includes 50 acres of assembled private acquisition, RRHA, and City-owned property in North Richmond. It is part of the revitalization of the former Dove Court Public Housing Complex.
On April 26, 2021, BHC executed an agreement with RRHA to serve as the Master Developer of the Highland Grove subdivision. As the Master Developer, BHC engaged three additional seasoned community development nonprofit organizations to partner in the Highland Grove project: the Maggie Walker Land Trust, project: HOMES, and Richmond Metropolitan Habitat for Humanity. The partners are working collaboratively to construct and sell 122 new, high-quality single-family homes to first-time homebuyers in two (2) phases. The homes will be compatible with the scale, density, and style of those in the adjacent neighborhoods; and a mix of affordable and market-rate homes, targeted to households with annual incomes of between 50 - 120% of the Area Median Income (AMI). The project will increase access to homeownership and family wealth-building opportunities for low-to-moderate-income individuals and families.
Consistent with its commitment, the City is seeking approval to enter into a Cooperation Agreement (see Attachment A) with BHC who purchased the lots from RRHA in September 2022 to fund $7,294,000 for the installation of infrastructure improvements for the development of Highland Grove Phase 1 which will subsequently result in the construction of 97 new affordable and market-rate for-sale residential units. The funding will be specifically used for the planning, design, engineering, and infrastructure installation activities to support the project.
COMMUNITY ENGAGEMENT: The Highland Grove Development Project is in accordance with the Highland Grove Redevelopment Community Unit Plan (CUP). The CUP was developed by Urban Design Associates in 2019 and adopted by the City of Richmond on May 28, 2019, after a year-long planning process with input from the City Council and administrative agencies, community groups, community leaders, Highland Park residents, and City residents.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: Richmond 300 Goal 14, Mayoral Declaration of an Affordable Housing Crisis, and Highland Grove CUP, along with the adopted Equitable Affordable Housing Plan.
FISCAL IMPACT: No negative impact. The CIP funds are available and ready for disbursement pursuant to the payment schedule in the Cooperation Agreement (see Attachment A). There will be additional revenue to the City as it relates to property taxes for any newly created housing units.
DESIRED EFFECTIVE DATE: Upon Adoption
REQUESTED INTRODUCTION DATE: December 11, 2023
CITY COUNCIL PUBLIC HEARING DATE: January 8, 2024
REQUESTED AGENDA: Consent Agenda
RECOMMENDED COUNCIL COMMITTEE: Requesting that the committee assignment be waived.
AFFECTED AGENCIES: Housing and Community Development, PDR, DPW, and DPU
RELATIONSHIP TO EXISTING ORD. OR RES.: Ord. 2023-197
ATTACHMENTS: Proposed Cooperation Agreement (Attachment A)
STAFF: Sherrill Hampton, Director, Department of Housing and Community Development - (804) 646-6822