City-owned properties 1700 Drayton Street (PIN 20053 38013), 104 E 34th Street (PIN 20053 38007), and 1705 Abercorn Street (PIN 20053 38003), located in the Thomas Square neighborhood, were declared surplus and available for sale during the regularly-scheduled City Council meeting on May 14, 2020. These properties formerly housed the Code Compliance Department and its parking lot until the building suffered major fire damage, was subsequently declared a total loss and demolished. The combined properties encompass 0.78 acres or +/- 33,976 square feet.

A request for proposals (RFP) was issued soliciting proposals for development of affordable rental housing. This event was marketed publicly by both staff and Collier’s International, the City’s annual contract Real Estate broker. Three qualified proposals were received and evaluated by a three-person interdisciplinary committee of City staff.

The highest scoring response was from the Pinyan/Procida Development Group, a joint venture of Pinyan Company and Procida Development Group. Their proposal includes 40 residential units, +/- 700 SF of commercial retail space, and 42 parking spaces. The residential unit mix would consist of 25 one-bedrooms, 13 two-bedrooms, and 2 three-bedrooms developed on all three parcels of land. Pinyan/Procida plans to seek Low-Income Housing Tax Credits (LIHTC) from the Georgia Department of Community Affairs as well as a zoning amendment from the Metropolitan Planning Commission for the proposed project. Applications for LIHTCs are very competitive, and there is no guarantee the project will receive the required credits to make this project feasible.  Credits are awarded annually late in the calendar year.  The buyer may not close without these conditions being satisfied or may request an extension to re-apply for credits if not awarded. The proposed acquisition price of the three properties is $750,000. Anticipated investment for the proposed development totals $13,885,777 including land acquisition.

Request approval to award this sale to Pinyan/Procida subject to conditions noted, and authorization for City Manager to execute deeds and any associated closing documents.

Approval.