11-12-2025 Workshop Packet - Laserfiche WebLink

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City staff have also been exploring the use of LAHA funds to create a manufactured home improvement program, and a future workshop will be scheduled to discuss the design and implementation of that initiative. Nevertheless, staff do not believe that providing an award to Lupe at this time would significantly limit the City’s ability to begin broader LAHA programming in 2026. Lupe is also requesting that the City adopt an updated preliminary resolution of support for a conduit bond issuance in the amount of approximately $17 million. Staff remain supportive of this request, as it presents minimal financial risk to the City. The developer will be responsible for all required application and legal review costs, and the City will collect an issuer’s fee if the bonds proceed to closing. The City previously approved a similar resolution for the July round of state bond awards; the developer is now seeking to reapply for the January round. Regardless of whether the City pursues creation of a TIF district or provides assistance through a forgivable loan using LAHA funds, staff have consulted with Baker Tilly regarding the appropriate timing for Council action. The consultant recommends that the City defer formal action until Lupe’s project funding is finalized, likely through a bond award in January. If Lupe is awarded the bonds, they will have 180 days to formally close on financing. The process to establish a TIF district, which is the longer of the two options, would require approximately 60 days and could be completed within that window if directed by the Council. Recommendation City staff recommend that the City Council review and evaluate Lupe Development’s revised request for TIF assistance and provide direction on whether to proceed with negotiations or maintain the previously stated offer. Council direction is also requested on whether to consider the use of Local Affordable Housing Aid (LAHA) funds in lieu of establishing a TIF district. Staff further recommends adoption of a preliminary resolution of support for the conduit bond request, as it presents minimal financial risk to the City, would enable the developer to pursue more favorable financing terms, and may help accelerate the project timeline. The developer will be responsible for all associated legal and application costs, and the City would collect an issuance fee if the bonds proceed to closing. Attachments: • Attachment A: Lupe’s Provided Project Update