Three residential apartments at Kelly Place have been approved for commercial sale and employee leasing
JACKSON, WYMING – During a City Council meeting on Monday, February 5, County Commissioners approved changing the condominium deed restrictions at Kelly Place for three two-bedroom units to allow for initial sales to businesses for employee housing.
According to The Town, the developers requested that the deed restrictions on the three units be changed to allow them to be sold to businesses, stipulating that the units must be rented to a qualifying household that meets workforce program requirements (one person) working full-time locally, and 75% of household income is earned locally, There is no residential property within 150 miles).
The developer requested this amendment because he says a changing market, with higher interest rates (compared to the previous several years), has prevented the remaining three units from being sold, according to meeting minutes.
The city’s approval of this amendment allows developers to sell Units 3, 11 and 12 (sale price cannot exceed $895,000) to companies that will then rent the apartments to employees of their workforce.
“I see this as we work with our partners,” Mayor Haley Morton Levinson said during the City Council meeting. “For public-private partnerships to continue to work, we have to be flexible. Ultimately, our community members who work for local businesses will live in these units. So I support that. I appreciate that the developer partner has not come back to ask for additional subsidies, which We’ve seen it many times in our other projects.
April Norton, director of the Jackson/Teton County Department of Housing, announced that she disagrees with the amended change to allow the units to be sold to businesses.
During the City Council meeting, Norton assured County Commissioner Jonathan Schechter that if the units return to the market at a future date, the units would then be required to be sold to a qualified homebuyer.
The property consists of two adjoining plots of NH-1 located in the residential core of the city in an area that has been identified by both the Comprehensive Plan and Housing Action Plan (HAP) as a desirable location for workforce housing redevelopment. The county purchased the property in January 2019, and the property was transferred to the Jackson/Teton County Housing Authority.
According to The Town newspaper, of the original 12 units, seven have been purchased and two are under contract. All three units are still available for purchase. These are all two-bedroom homes and are priced in the $850,000s
City Council minutes state that if units remain unsold one year after the effective date (date restriction implemented), the developer must lease the unit to a qualifying household. At this point, the city or housing department will have the right to request an appraisal (paid by the developer) and if the appraisal is less than the sale price, the developer will be required to list the unit for sale at or below the sale price. appraised value and you will have an additional 12 months to sell it.
If units remain unsold after an additional 12 months (a total of 24 months from the effective date of the amended and restated restrictions), a second appraisal will be required. If this appraisal is lower than the first appraisal, the developer must list the unit for sale at or below the appraised value. If the appraisal is higher than the first appraisal, the developer must reduce the selling price by 10%.