Town, county to revisit $10M funding gap for 90 Virginian Lane housing phases

Jackson Town Council and the Teton County Board of County Commissioners will use their March 9 special joint meeting to give direction on whether to commit an additional $10 million for the 90 Virginian Lane affordable workforce housing project, a 221-home Pennrose proposal the Housing Authority is pursuing as one of the last large infill sites in town. Staff describe the decision as central to how the Town, County and Housing Authority structure project phasing and oversight “to ensure both phases of the 90 Virginian Lane project are built.” (Town Council Staff Report; Special Joint Meeting Agenda Packet)

The project is currently framed as two phases: a 161-unit rental phase (three buildings) and a for-sale phase (two buildings). Staff recommend building the rental phase first once the whole site is designed and entitled, while also trying to protect against the risk that the for-sale phase could be delayed or not built. The staff report says Pennrose rejected making the phases interdependent, but agreed to (among other items) design and entitle the entire site and show financing commitments for both phases before starting rental construction. (Town Council Staff Report)

On money, staff recommend using the previously discussed first $10 million (“the First 10”) mostly for horizontal infrastructure, reimbursed after financing closes and entitlements are in hand; the report cites an $8.5 million estimate for that work, with the remaining $1.5 million proposed as a low-interest loan at 50% completion. The remaining gap is another $10 million (“the second 10”), with staff outlining options that include town/county “rights of first rental” buys, workforce condo pre-purchases, and/or a Housing Authority bond strategy tied to rental-project revenues. (Town Council Staff Report)