HomeMy WebLinkAboutResolution 53-R-25 Seeking City Council Support of the Proposed Changes to the Ownership of the 60-Unit Affordable Housing Development to be Constructed at 504 South Boulevard5/27/2025
53-R-25
A RESOLUTION
Authorizing the Change of Post-Construction Ownership of
504 South Boulevard Project
WHEREAS, the Housing Authority of Cook County (“HACC”) owns certain
parcels of property commonly known as 508, 510, 512, and 514 South Boulevard in
Evanston, Illinois (“the HACC Site”); and
WHEREAS, the City of Evanston (“City”) owns a parcel of property
commonly known as 504 South Boulevard in Evanston, Illinois (“COE Site”); and
WHEREAS, the City and HACC previously entered into an
Intergovernmental Agreement for the purpose of redeveloping the HACC Site and COE
Site, commonly known as 504-514 South Boulevard, located in Evanston, Illinois (“the
South Boulevard Project”); and
WHEREAS, the developer for the South Boulevard Project is PIRHL
Development (“PIRHL”), and, originally, PIRHL also intended to retain an ownership
interest in the South Boulevard Project once it was completed;
WHEREAS, in early May 2025, PIRHL and HACC notified city staff that
the National Equity Fund, the primary investor in the development, has asked for a
change in the ownership structure to satisfy some financial risks resulting from the
significant changes in economic market conditions; and
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53-R-25
WHEREAS, the National Equity Fund has requested that PIRHL step out
of the ownership structure entirely but remain as co-developer and as a joint and
several guarantor, developing and constructing the Council-approved 60-unit building
and remaining through the initial leasing process;.and
WHEREAS, given HACC’s financial strength and experience, the National
Equity Fund, HACC, and PIRHL agree that amending the ownership structure of the
South Boulevard Project, so that HACC is the sole owner of the property, is an
appropriate solution; and
WHEREAS, with HACC as sole owner, the units in the South Boulevard
Project will remain affordable in perpetuity; and
WHEREAS, the change in ownership would not require any changes to
the Council-approved South Boulevard Project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF EVANSTON, COOK COUNTY, ILLINOIS, THAT:
SECTION 1: The City Manager is hereby authorized and directed to
proceed with PIRHL Development concerning their proposal for development of the
South Boulevard Project.
SECTION 2: The City Manager is hereby authorized and directed to
negotiate any additional conditions or terms with PIRHL Development as may be
determined to be in the best interest of the City.
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SECTION 3: This Resolution shall be in full force and effect from and
after its passage and approval in the manner provided by law.
_______________________________
Daniel Biss, Mayor
Attest:
_______________________________
Stephanie Mendoza, City Clerk
Adopted: __________________, 2025
Approved as to form:
_______________________________
Alexandra Ruggie, Corporation Counsel
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