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Item No. 15 <br />TO: Mayor, Mayor Pro Tem & City Council <br />FROM: Grayson Path, City Manager <br />SUBJECT: Celebration Paris / Paris Housing Authority Project <br />DATE: January 8, 2024 <br />BACKGROUND: <br />On February 14, 2022, the City Council approved Resolution 2022-11 in support of J -H Paris <br />Realty, LP's proposal to construct a multi -family affordable elderly rental housing development <br />to be located at 4415 Lamar Avenue, to be named "Celebration Paris". This project was to be <br />funded in part with tax credits through the State of Texas. In September 2022, the Texas <br />Department of Housing and Community Affairs granted a commitment notice to Celebration Paris <br />for a 9% competitive tax credit. <br />STATUS OF ISSUE: <br />In September 2023, Celebration Paris reached out to City Management to inform us that due to a <br />number of financial issues with construction costs, labor shortages, interest rates, etc., the project <br />feasibility had become challenging. To solve this, they began seeking a partnership with the Paris <br />Housing Authority by which the PHA would own the land, thus making it tax exempt, and the <br />Celebration Paris would build and manage the facility. This would be a long term lease, the <br />conclusion of which would result with the building reverting to PHA ownership. This would have <br />benefits for the PHA (expanding housing availability for many of their clients), the Celebration <br />Paris (allowing their project to proceed), and the City (expanding housing options for our citizens). <br />As of the writing of this agenda memo, the PHA Board is supportive of this partnership. <br />Celebration Paris and the PHA are currently in negotiations for a contract. In the meantime, should <br />this partnership proceed, the TDHCA will need to see a letter / resolution of support for this <br />partnership as it is a change from the original application in 2022. <br />This partnership and tax exemption would only apply to the portion of land intended for the <br />residential development, which is interior of the property. That portion along Lamar Avenue will <br />