City council, Tuesday night, approved purchasing a nine-acre parcel to be used for a future affordable housing project as part of the development of a 150,000-square-foot Costco retail store and fueling station.
The council, in a unanimous vote, approved the agreement between Longmont and Diamond G Concrete Company to buy the parcel. The city negotiated an additional land purchase of the nine acres as part of the annexation and land purchase of the Costco property.
Costco plans to build on a 17-acre site east and adjacent to the Harvest Junction South retail and residential development in southeast Longmont, according to city staff reports.
The nine acres is being purchased at a reduced market rate by the Affordable Housing (AH) Fund over a number of years via a long term loan from the city’s Fleet Fund, according to a staff report to the city council. The total purchase price is $1,470,150, a city staff report to the city council states.
The AH fund will pay $300,000 from its 2021 funding at closing. The Fleet Fund is loaning the AH Fund $1,170,150 which will be repaid over four years beginning in 2022 with an interest rate based on the rate of return on city investments, which will likely be one percent, the staff report states.
The city’s Housing and Community Investment Division will be conducting a Housing Needs Analysis and/or a market study for the property, conducting a request for proposals for the property “as well as looking at innovative development approaches in the meantime,” the staff report states.
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