Town, county weigh second $10M for 90 Virginian Lane workforce housing buildout

Jackson Town Council and the Teton County Board of County Commissioners, meeting jointly March 9, were asked to give key direction on the 90 Virginian Lane affordable workforce housing project—including whether to commit an additional $10 million beyond the $10 million already discussed for the development partner deal with Pennrose. Staff described the site as one of the last large infill workforce-housing opportunities in town, currently scoped at 221 permanently deed-restricted homes with roughly $40 million in public funding when land value and the “first” $10 million are included. See: Town Council Staff Report.

On phasing, staff recommended starting construction with the rental phase—three buildings totaling 161 rental homes—after design and entitlements for the full project are complete. To reduce the risk that the for-sale phase (buildings 4 and 5) could be delayed or not built, the packet says Pennrose agreed to (1) design and entitle the entire site up front, putting predevelopment spending at risk, and (2) demonstrate financing commitments for both the rental and for-sale phases before starting rental construction. Town Council Staff Report.

For the already-anticipated $10 million public contribution (“the First 10”), staff proposed using up to $8.5 million on a reimbursement basis for shared horizontal infrastructure (parking, utilities, sidewalks and similar sitewide improvements) after the project closes on rental financing and receives entitlements for all phases, plus an estimated $1.5 million loan at 50% completion at a proposed 2% rate secured by a subordinated leasehold deed of trust. For the remaining $10 million gap (“the second 10”), staff outlined options including purchasing rights of first rental for municipal employee housing ($275,000 per right; example package of 18 rights for $5 million), pre-purchasing 5–9 workforce condos (roughly $550,000–$950,000 each) to convert some planned ownership units into rentals, and/or the Housing Authority raising money via subordinate bonds payable from rental-project revenues. Town Council Staff Report.