Elmington assumes Parcel G1 as East Point Flats breaks ground; authority readies first annual audit

Counsel reported June 16 that legal instruments transferring Parcel G1 to Elmington Capital Group are complete and that the authority now holds the Metro-assigned interests related to the parcel’s development as East Point Flats.

Michael Mills, outside counsel with KSM, said Fallon assigned the Parcel G1 development rights to an Elmington affiliate and Metro conveyed the land to the authority. Mills said the project will include about 323 units that are 100% affordable, a dedicated daycare on the first floor, ground-floor retail and parking. He said the construction schedule runs through early 2029 with substantial completion expected in the first quarter of 2029.

Mills described the suite of documents that transferred in connection with the assignment: a partial assignment from Fallon’s master development agreement for Parcel G1; a quick-claim deed conveying land to the authority; a ground lease between the authority and the Elmington entity; affordability covenants, an addendum for a residential/commercial condominium regime, temporary construction easements and a parking agreement that interfaces with the Titans’ parking arrangements.

Board members asked whether the authority will have enforcement responsibilities for the 99-year affordability covenants. Mills said the authority assumes the contractual obligations and will have oversight responsibility alongside other interested parties, including tax-credit administrators.

In a separate informational item, staff said the authority will conduct its first annual audit this year under its private act and intergovernmental agreement with Metro. The audit engagement will use Metro’s contract with Crossland; a pre-audit readiness review by ACM is underway with a report expected July 1. The audit fieldwork is scheduled for October, with a final audit report anticipated at year-end and presentation to the board in January.

Staff also introduced Ingred Herrera, the new executive assistant who will support audit documentation, and said the authority has shortlisted candidates for a finance-manager role to assist with audit preparation.