Submitted by: David Cristeal
Submitting Department: Community & Economic Development
Agenda Section: Action
Item Title:
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Pennrose - Sanctuary at Hyattsville Crossing request of a Payment in Lieu of Taxes (PILOT) Letter of Intent (LOI)
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Suggested Action:
recommendation
I move that the City Council authorize the Mayor to send a Letter of Intent (LOI) in support of the proposed Payment in Lieu of Taxes (PILOT) for the Pennrose - Sanctuary at Hyattsville Crossing development project.
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Summary Background:
Pennrose is requesting a Payment in Lieu of Taxes (PILOT) from the City of Hyattsville. It is requesting a PILOT to complete a comprehensive finance package that would support the development of the Sanctuary at Hyattsville Crossing, a proposed 120-unit affordable rental community. This new apartment community, as presented to the City Council at its April 5th meeting, would be located on an underutilized portion of the First United Methodist Church (FUMC) property.
Pennrose is requesting a PILOT that would reduce the estimated annual City taxes on the 120-unit development from $61,042.47 to $15,682.47, and for a period of 40 years. This property currently pays no City taxes and therefore, the requested PILOT would not result in a loss in tax revenue.
As timing is of the essence, in lieu of preparing and presenting a draft PILOT Ordinance at this time, staff has prepared a Letter of Intent (LOI), that memorializes the City's support for this proposed affordable housing development and its intention to consider and support a PILOT at a future City Council meeting. Based on a 'best case scenario' where Pennrose obtains necessary funding and entitlements in the next 6 to 12 months, it would need the City's PILOT Ordinance request to occur between May and November 2026.
The LOI, attached as part of this Agenda Packet, describes terms and conditions under which a PILOT Ordinance for the proposed affordable apartment community would be considered ...
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