SUBJECT: A Resolution Authorizing the Town of Erie, Colorado, To Enter Into a Purchase and Sale Agreement with Brothers Redevelopment, Inc. And the Erie Housing Authority for the Sale of Real Property; Authorizing and Directing the Appropriate Town Officers to Sign Said Purchase and Sale Agreement; and, Setting Forth Details in Relation Thereto
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Body
DEPARTMENT: Administration
PRESENTER: Steve Felten, Finance Director
FISCAL INFORMATION:
Cost as Recommended: n/a
Balance Available: n/a
Budget Line Item Number: n/a
New Appropriation Required: n/a
STAFF RECOMMENDATION: Staff recommends approval of the resolution
Recommendation
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SUMMARY AND BACKGROUND OF SUBJECT MATTER:
The Town established the Erie Housing Authority (EHA) in 1999 and built a 12-unit senior housing complex in 2001. From January 2002 through November 2012 the complex was managed by the Boulder County Housing Authority. Since then the property has been managed by Pillar Management, a partner of Brothers Redevelopment, Inc. (BRI).
Small housing authorities do not enjoy the same economies of scale experienced by larger authorities. As a result of this and other factors, the Town's housing authority has never had positive cash flow. In addition, the Town does not have the staff to properly manage and operate a housing authority that receives federal rent subsidies. As a result, the Town has been working with BRI to transfer ownership of the property to BRI and ultimately expand the number of units.
Recently the Town has agreed in principle to sell the real and personal property of EHA to BRI. In addition, the Town has agreed to sell certain additional real property owned by the Town to BRI to facilitate future expansion plans. The total purchase price for all assets to be sold is $500,000, payable in cash. Along with cash on hand at EHA, proceeds of the sale will allow for the repayment of both loans with Centennial Bank and Trust, the $170,000 advance made by the General Fu...
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