Matters Memo

City of Boulder City Council Agenda Item Meeting Date: June 25, 2026 Agenda Title Consideration of a motion to approve the transfer of 1055 Alpine Ave. to the Housing Authority of the City of Boulder for its use in the Alpine-Balsam Project and authorize the city manager to execute any and all documents to effectuate this transfer.

Staff Contact • •

Jay Sugnet, Senior Housing Manager, Housing & Human Services Kurt Firnhaber, Director, Housing & Human Services

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to approve the transfer of 1055 Alpine Ave. to the Housing Authority of the City of Boulder for its use in the Alpine-Balsam Project and authorize the city manager to execute any and all documents to effectuate this transfer.

Executive Summary Approval from City Council is required to dispose of city property. In August, Boulder Housing Partners (BHP), the Housing Authority of the City of Boulder, will apply for competitive state funding for the first residential parcel (1055 Alpine Ave.) as part of the Alpine-Balsam project. The funding application is strongest if BHP can show control of the .74-acre parcel (Legal Description: LOT 4 ALPINE-BALSAM SUBDIVISION). The city intends to execute a transfer agreement or other written documentation and quitclaim deed with BHP to effectuate this transfer.

The 5.72-acre Alpine-Balsam property, formerly the Boulder Community Health (BCH) hospital, was purchased by the city in 2015. Plans for redevelopment have taken shape over the past several years. The reimagined site will provide new affordable and market-rate homes in a range of housing types, and the site will be the future location of the Western City Campus to serve city customers and house municipal functions. The site will include new indoor and outdoor public spaces, new streets and paths, sustainable solutions for infrastructure and buildings, increased tree canopy, a greenway for flood conveyance, easy-to-use travel options and managed parking. The vision for the area is guided by the Alpine-Balsam Area Plan.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved the parcel can be sold to Boulder Housing Partners as the first step to achieving the affordable housing goals at Alpine-Balsam.

Define and adopt a modified motion

Council would need to define any modifications or amendments to the draft motion language. This will likely require staff to bring back an amended version later and delay the transfer which would risk state funding.

Deny the motion or take no action

If this motion is denied the parcel cannot be transferred to Boulder Housing Partners and development of the site would be delayed.

Refer back to staff

If council refers this item back to staff it would delay the transfer and future site development.

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area Healthy and Socially Thriving Livable Citywide Strategic Plan Strategy 5: Support and provide holistic and accessible programs and services to enable diverse individuals and families to live in Boulder.

Priority Action 5c: Collaboratively implement and fund local and regional strategies to increase affordable housing stock and other potential innovative strategies that could provide increased housing options for our unsheltered community. Staff Notes Expanding affordable housing opportunities aligns with current city plans and policies.

Alignment with Additional City Plans Expanding affordable housing opportunities aligns with the Department of Housing & Human Services’ mission and strategy, as well as implements the Alpine-Balsam Area Plan.

City Council History The Alpine-Balsam project started over a decade ago with the purchase of the BCH site in 2015. City Council adopted an Area Plan in 2019 to guide future development of the larger, 70 acres Alpine-Balsam area. In 2021, City Council approved an Intergovernmental Agreement (IGA) with BHP agreeing that the city and BHP would comaster develop the site. BHP would be responsible for developing affordable housing on the site, and the city would be responsible for the Western City Campus. The IGA contains a Purchase Option Agreement whereby the city granted BHP an irrevocable, exclusive option to purchase all of the city’s rights and interests in Blocks A, B, C, and D of the Alpine-Balsam site (now referred to as Lots 1, 2, 3, and 4, respectively, due to subdivision of the property). Although the option expired on December 31, 2025, both the city and BHP intend to honor the agreement in order to support the Alpine-Balsam Project. In lieu of executing a new Purchase Option Agreement, and because BHP must demonstrate site control for its tax credit application, the city decided to proceed with transferring Lot 4 to BHP, and the city will transfer the remaining three lots contemplated in the Purchase Option Agreement to BHP when it is appropriate to do so during the course of the Alpine-Balsam Project.

Analysis The first phase of residential development at Alpine-Balsam will be 55 permanently affordable rental apartments serving adults who are at least 62 years of age. In addition, 1055 Alpine Ave. will include 14 rentals dedicated to people with disabilities who will receive services in partnership with Imagine! BHP is preparing an application to compete for state funding, and control / ownership of the site is a significant criterion for an award. As envisioned by the Alpine-Balsam Area Plan, the larger site will provide new affordable and market-rate homes in a range of housing types and will be the future location of the Western City Campus to serve city customers and house municipal

functions. Construction on the infrastructure (floodway, streets, water/sewer, etc.) is almost complete, and significant progress is being made on the Western City Campus building and refurbished parking structure. The BHP parcel will be the first housing to be constructed. After a potential award from the state in late 2026, BHP anticipates starting construction in summer 2027.

Anticipated Fiscal and Workplan Impacts Fiscal Note Estimated Fiscal Impact Narrative The transfer of the property, which was previously purchased by the city for affordable housing, does not have an impact on current or future budgets. Funding to pay for site infrastructure and the construction of the affordable rental homes will come from a combination of Low-Income Housing Tax Credits, state funding, and the city’s Affordable Housing Fund. Current Year Estimated Fiscal Impact Fund(s): 2140FD Affordable Housing Fund Department(s): Housing & Human Services Program(s): Community Investment

FY 2026 Budget

FY 2026 Estimated Impact

FY 2026 Net Change

Beginning Fund Balance

$9,216,654

$0

$9,216,654

Total Forecasted Revenue

$25,281,828

$0

$25,281,828

Total Estimated Expenses

$21,659,649

$0

$21,659,649

Ending Fund Balance(s) After Reserves

$12,562,766

$0

$12,562,766

FTE

10.42 FTE

Item

Three-Year Estimated Fiscal Impact

10.42 FTE

Item

FY 2026

FY 2027

FY 2028

Total Forecasted Revenue

$0

$0

$0

Total Estimated Expenses

$0

$0

$0

Net Estimated Impact

$0

$0

$0

Equity Analysis The transfer of this parcel will enable the creation of 55 permanently affordable homes for income-qualified applicants who are age 62 and older. This will provide an opportunity for 55 households to rent an affordable home in Boulder while increasing overall socio-economic diversity. The city’s affordable housing program is an important tool to help preserve and potentially increase racial and socioeconomic diversity.

Climate, Resilience, and Sustainability Considerations Future affordable housing at Alpine-Balsam will be all electric, energy and resource efficient while lowering monthly utility costs for future residents.

Community Engagement The Alpine-Balsam Area Plan was the result of extensive community engagement culminating with adoption of the plan by Planning Board and City Council in 2019.

Workplan Considerations Staff time needed to facilitate the property conveyance is a part of the normal work plan. No additional staff resources are required.

Next Steps for City Council Future parcels will be conveyed either to BHP or to private developers at the appropriate time.

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Attachments None.