Special Board of Aldermen 04-08-2021 Page 6
Chairman Dowd
Are there any questions on what was presented by the Aldermen? Alderman Wilshire?
President Wilshire
Thank you. Through you, Mr. Chair, to Director Marchant. In your Memo to the Board in January, you
talked about a termination fee. Is that something, if it is not extended could go into that fund.
Director Marchant
Yes that’s a great question. So just to give a little bit more context, the agreement with Clock Tower goes
through 2027. At the end of that time there is a $1.3 million dollar payment due to the fund with an
extension clause. The key about the extension clause is that we may extend it to make sure that we are
preserving the 29 units of affordable housing that exist through this grant agreement. So that payment
could go to this fund or the City could renegotiate it that only a portion of the payment goes to the City and
the rest goes to supporting those 29 units staying affordable going forward. But certainly, that is up for
discussion.
President Wilshire
Thank you.
Alderman Dowd
Any other questions from the Aldermen? Alderman Klee?
Alderman Klee
Thank you, Mr. Chairman. It’s not so much a question it is just kind of a comment. | can tell you from the
State’s perspective as well as from the City’s perspective how incredibly important it is to have this
affordable housing in general. But to be able to set up a Trust Fund, and | agree with what was said about a
baby growing and so on, and | think we need to start somewhere. It’s too small at the beginning to really
make a big difference, is that correct Director Marchant?
Director Marchant
It is not intended to be used immediately; it is intended to be used as an investment for the future.
Alderman Klee
So the key here is to get it started and get it moved and make it available so if there are grants and so on,
is that what the whole goal is, as you said “other revenue sources”. | just want to clarify that, so you are
talking about things like that nature?
Director Marchant
The goal is to find additional revenue sources that can sustain this fund and grow this fund over time so it
can be used most appropriately going forward.
Alderman Klee
Thank you Mr. Chairman and thank you Director Marchant, | appreciate it.
