MEMORANDUM

TO: Pete Sprague, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Mayor

Bonnie Golden, Grants Manager

Mark Fowler, Purchasing Manager

FROM: Bill Dunn, Project Manager

DATE: October 14, 2004

SUBJECT: RESOLUTION 2004-108: SUPPORTING THE APPLICATION BY THE BOROUGH TO THE ALASKA HOUSING FINANCE CORPORATION AND THE DENALI COMMISSION FOR ADDITIONAL FUNDING NEEDED FOR THE TYONEK TEACHER HOUSING PROJECT

The Fiscal Year 2003-2004 budget approved by Ordinance 2003-19 included the appropriation of $350,000 for new teacher housing in Tyonek. Borough land is not available for this purpose. In October 2003 the Native Village of Tyonek (NVT) proposed to build and furnish two (2) 1400 SF homes on land across from the school to be leased to the borough.

Resolution 2004-013 authorized the Mayor to negotiate a sole source contract with NVT to provide two teacher housing units and a lease of property. Throughout the past several months, the administration has been meeting with representatives of NVT in an effort to finalize a formal proposal. In June 2004, NVT invited representatives of Cook Inlet Housing Authority (CIHA) to meet with representatives of the borough and NVT. By that time it had become apparent that there were significant challenges with respect to both site control of the land and adequacy of funding to meet project goals.

NVT has made progress on the site control issues and CIHA has submitted a formal proposal on behalf of NVT to design and build a duplex with three-bedroom units for a price not to exceed $550,000. CIHA has also assisted in identifying possible funding sources for the additional funding required. The borough would be the applicant for the additional funds.

The attached Resolution expresses support for the application by the borough to the Alaska Housing Finance Corporation and the Denali Commission for additional funding needed for the Tyonek Teacher Housing project and urges favorable action on the application.

Attachment: Resolution 2004-