This report requests the Economic Development and Housing Subcommittee recommend City Council approval to enter into a disposition and redevelopment agreement with Pennrose, LLC for the sale and redevelopment of three City-owned parcels totaling 0.4 acres at 1016 N. 2nd Street. The City acquired the site in 2004 and issued an RFP in 2023 for a mixed-use high-rise development, requiring at least 20 percent of residential units to be affordable or workforce housing. Pennrose submitted the sole proposal, envisioning a $20 million, five-story, 64-unit affordable housing community with approximately 4,650 SF of commercial space and 32 parking spaces. All residential units will be restricted to households earning no more than 60 percent of the Area Median Income (AMI). The City will sell the site to the developer for $1.5 million. A deed restriction will be recorded on the site, restricting it to affordable housing for a term of 40 years upon project completion.