HomeMy WebLinkAboutMemo - Sunset Multi-Service & Career Development Center - Letter of Intent 6-21-2018DEPARTMENT OF COMMUNITY
& ECONOMIC DEVELOPMENT
M E M O R A N D U M
DATE:
June 21, 2018
TO:
Ed Prince, Council President
Members of Renton City Council
VIA:
Denis Law, Mayor
FROM:
C. E. “Chip” Vincent, CED Administrator
STAFF CONTACT:
Mark Santos-Johnson, Community Development Project Manager
SUBJECT:
Sunset Multi-Service & Career Development Center – Letter of Intent for $400,000 City Capital Grant to the Renton Housing Authority
ISSUE:
Should City Council provide a $400,000 capital grant to the Renton Housing Authority to help renovate the former Renton Highlands Library for the Sunset Multi-Service & Career Development
Center?
RECOMMENDATION:
Staff recommends Council approve a $400,000 capital grant to the Renton Housing Authority to help renovate the former Renton Highlands Library for the Sunset Multi-Service & Career Development
Center, subject to an acceptable agreement to be approved by Council established between the City and the Renton Housing Authority. Furthermore, staff recommends that the Council authorize
the Mayor to enter into and execute the Letter of Intent with the Renton Housing Authority for the $400,000 City capital grant.
BACKGROUND SUMMARY REGARDING LETTER OF INTENT:
In response to the issues that were discussed at the May 7, 2018, Finance Committee meeting, CED staff worked with the City Attorney’s office and the Renton Housing Authority (RHA) to
create the attached Letter of Intent for the proposed City of Renton Capital Grant to RHA for the Sunset Multi-Service & Career Development Center (Center).
The Letter of Intent provides additional background information regarding: (i) the Sunset Area community’s need for additional human services; (ii) the plans and efforts since early-2015
to use the former Renton Highlands Library for the Center; (iii) the sale in March 2018 of the
former library to RHA and the related City property loan to RHA; (iv) the demolition of the final Sunset Terrace public housing buildings by the City and the status of the City demolition
loan to RHA; and (v) the current capital needs and funding for the renovation of the Center.
In addition, the Letter of Intent outlines RHA’s agreement to enter into an agreement as a condition of the City’s award of the $400,000 in capital funds for the Center. The agreement
will address the terms and conditions outlined in the Letter of Intent, including:
RHA’s agreement to pay the City $400,000 of the remaining balance of the loan for the former library at least 30 days in advance of when RHA needs the City to provide the $400,000 capital
grant for the Center.
As noted in the original promissory note for the acquisition of the former library, RHA agrees to make annual payments of $160,000, plus applicable accrued interest, on the anniversary
date of the closing of the sale of the property each year until the balance of the loan is repaid.
RHA agrees to pay the City the remaining balance of the demolition loan in the amount of $325,957, plus accrued interest by December 31, 2019, or upon sale of the underlying property
secured by the demolition loan – whichever comes first.
RHA agrees to use the property for the Center for a period of at least ten years, commencing from the opening of the Center after renovations.
RHA agrees to provide services at the Center to respond to needs of residents in the Sunset Area and surrounding neighborhoods, including, for example, child and/or adult learning, tutoring,
and mentoring; employment counseling and services and job training; integrated health services, including behavioral health counseling and services and health education and health care
services; case management; and/or legal assistance. However, the actual services to be provided will be determined based on the regional and community partners who participate in the
Center, the community’s evolving needs, and the available seed and/or operating funds for various services over the ten year period.
CONCLUSION:
The Center is an integral part of the Sunset Area Transformation Plan and a critical community improvement to more effectively respond to the human service needs of residents in the
neighborhood. CED staff have been working closely with RHA, Neighborhood House, the Renton School District, and other regional and community organizations to help make the Center a
reality since early-2015. (Please see the attached letters of support from the Renton School District and Neighborhood House for the proposed $400,000 City capital grant for the Center.)
The City can greatly assist RHA and Neighborhood House in leveraging the balance of the $3 million capital acquisition and renovation campaign by providing a $400,000 capital grant
to help renovate the former Renton Highlands Library for use as the Center.
cc: Robert Harrison, CAO
Jason Seth, City Clerk
Jan Hawn, ASD Administrator
Kelly Beymer, Community Services Administrator
Cliff Long, Economic Development Director
Guy Williams, Human Services Manager
Attachments:
Letter of Intent – City of Renton Capital Grant to Renton Housing Authority for Sunset Multi-Service & Career Development Center
Letter of support from the Renton School District
Letter of support from Neighborhood House