HomeMy WebLinkAbout1997-06-10; City Council; 14205; REQUEST FOR FINANCIAL ASSISTANCE FOR THE ACQUISITION OF PROPERTY BY CATHOLIC CHARITIES FOR LA POSADA DE GUADALUPE HOMELESS SHELTER.' \ 6 Pjd
% %TY OF CARLSBAD - AGEN A BILL 4 ..
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REQUEST FOR FINANCIAL ASSISTANCE FOR THE
LA POSADA DE GUADALUPE HOMELESS SHELTER
MTG. 6/10/97 CITY ATTY. ACQUISITION OF PROPERTY BY CATHOLIC CHARITIES FOR
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.rl RECOMMENDED ACTION: e/o l D
-u, Adopt Resolution No.---YFgPC2s recommended by the Housing Commission, to 2
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2478 Impala Drive by Catholic Charities, San Diego for La Posada de Guadalupe Homeless SI '5 appropriation of $200,000 from the Housing Trust Fund for the acquisition of property local a
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ITEM EXPLANATION:
The City has received a request for financial assistance in the amount of $200,000 to as:
Charities, San Diego with the acquisition of property for La Posada de Guadalupe. Currer
Charities leases the property located at 2472-2478 Impala Drive on a year to year basis to
Posada de Guadalupe Homeless Shelter. Notwithstanding the success of La Posada, the
term site control has negatively impacted Catholic Charities' ability to provide a cost effective
service program.
Catholic Charities has continually applied for funding grants to support operation of the she
been unable to obtain these significant sources of revenue due to the lack of site contl
applicable grant period. To this point, Catholic Charities has been able to absorb the cons
operating deficits of La Posada. However, the continuing loss of significant operating re\
grants and rising costs would cause the shelter to operate at a level of loss beyond Cathol
ability to sustain.
The property owners have informed Catholic Charities of their interest and intent to sell the pr
property owners, strong supporters of the shelter, have agreed to provide Catholic (
opportunity to purchase this property for $362,500. Catholic Charities would be able to provic
of its own financial resources for the acquisition of the property and is requesting assistar
remaining balance of the purchase price.
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The acquisition of this property would help in resolving issues of long term site control and, c(
from a rent increase by new owners or possibly expenses associated with relocating to anothel 2 3.m
Catholic Charities were unable to acquire the property, significant additional expense could I: z '$ $
positively impact Catholic Charities' ability to secure funding for the operation of the La
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La Posada de Guadalupe provides transitional housing for a maximum of 50 homeless men.
improving the quality of life for its participants by encouraging and enabling employme
acquisition of permanent housing. Residents are able to maintain shelter for up to 90 days, r
and hygiene services, and participate in other supportive service programs. La Posada de
has been able to serve 1,576 unduplicated individuals, with 61,061 bed nights and 174,791
four years of operation. Continued support and operation of this shelter will assist the City'
population and create a supportive community environment with enhanced supportive SI
facilities.
RECOMMENDATION:
assists in meeting the great need in Carlsbad for housing single homeless men and is
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0 $200,000 from the City of Carlsbad Housing Trust fund as a non interest bearing deferred 0 On May 8, 1997, the Housing Commission approved a recommendation to City Counci
purpose of assisting Catholic Charities, San Diego to acquire property located at 2472-2478 I
for the continual operation d) La Posada de Guadalupe Homeless 9 elter for single men. This
secured by the property.
Catholic Charities will be required to operate the facility as a homeless shelter consist€
requirements of the Conditional Use Permit for the facility and the application for financial a:
loan will be reduced by 10 percent of the loan principal for each complete year of ope
repayment of the loan will be required if Catholic Charities, San Diego continues to operate
shelter on this property for a ten year period.
Financial assistance provided to Catholic Charities, San Diego for the acquisition of pro1
Posada de Guadalupe Homeless Shelter will be subject to granting the City a right of fir:
purchase the real property and any improvements thereon should it at any time be made i
purchase. Additionally, the City will be offered an opportunity to purchase the property upon t
of the loan term and every year thereafter. The purchase price of the property will be the fair n of the property at the time of purchase. The City shall cooperate with Catholic Charities ti
alternative sites for the homeless shelter and provide assistance with the relocation of th
shelter.
Staff believes that the requested financial assistance will be acceptable based upon an app
property to be completed by Catholic Charities substantiating the $362,500 purchase prl
leveraging of other financial resources. Additionally, for every $1 the City is contributing to ti
price of the property, Catholic Charities is providing $0.81 of their own financial resources. Wt
not meet the leveraging goal the City would seek with other affordable housing projects, subsi
homeless shelters, particularly for land and capital improvements, are very scarce.
It is staffs recommendation that the City Council authorize the appropriation of $200,0(
Housing Trust Fund for the acquisition of property by Catholic Charities, San Diego for La
Guadalupe Homeless Shelter. La Posada is the only homeless shelter located within Carls
shelter and services to the community’s homeless population. The Housing Trust Fund shall k
for the purpose of providing funding assistance for the provision of affordable housing consisl
policies and programs contained in the Housing Element of the City’s General Plan. This she
case management services are consistent with Objective 3.3 of the Housing Element to prc
and assistance for the homeless.
FISCAL IMPACT:
A total undesignated balance of approximately $2,260,000 currently exists in the Housing 1
Appropriation of the $200,000 recommended financial assistance for the acquisition of
Catholic Charities for La Posada de Guadalupe Homeless Shelter will not substantially imp;
balance.
EXHIBITS:
1. Resolution No. 9”--&?~authorizing the appropriation of $200,000 from the Housing Tn
the acquisition of property by Catholic Charities for La Posada de Guadalupe Homeless Sk
2. Housing Commission Review Application
Catholic Charities, San Diego continues to operate a homeless shelter on this property, repaq
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1 CITY COUNCIL RESOLUTION NO. 97-485
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AUTHORIZING THE APPROPRIATION OF
$200,000 IN THE FORM OF A NON INTEREST BEARING DEFERRED
LOAN FROM THE CITY OF CARLSBAD’S HOUSING TRUST FUND
FOR THE PURPOSE OF ASSISTING CATHOLIC CHARITIES, SAN
DRIVE FOR THE LA POSADA DE GUADALUPE HOMELESS
SHELTER
DIEGO TO ACQUIRE PROPERTY LOCATED AT 2472-2478 IMPALA
WHEREAS, a request for financial assistance was submitted to the City of Ca,
Housing Commission for review and consideration by Catholic Charities, San Diego; and
WHEREAS, Catholic Charities, San Diego has expressed a need to receive f
assistance in the amount of $200,000 from the City of Carlsbad Housing Trust Fund
purpose of acquiring property located at 2472-2478 I for La Posada de Gui
Homeless Shelter; and
using needs and prior
nd the cost effective1
roperty and the leveragin!
und for the purpose of providing f
RESOLVED by the City Council of the
1. The above recitations are tr
23 2. The City Council hereby the Finance Director to appropriate an amour
exceed $200,0 nterest bearing deferred loan from the Housin
Fund to financially a rities, San Diego with the acquisition of F
located at 2472- a Posada de Guadalupe Homeless Shelter.
3. That the City M s authorized to enter into additional agreemel
be necessary or appropriate to assist Catholic Charities, San Diego with the acqui:
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26 Catholic Charities, San Diego, execute such other documents, or take other actions
27 the subject property.
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il CITY COUNCIL RE UTION NO. 97-485
PAGE 2 w 0
1 General Conditions; li 2
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1. Financial assistance in the amount of $200,000 from the City of Carlsbad Housin
Fund will be made available as a non interest bearing deferred loan. This loan
secured by a Trust Deed and Promissory Note for the property on behalf of the
Carlsbad.
2. Catholic Charities, San Diego will be required to operate the facility as a homeless
consistent with the requirements of the Conditional Use Permit for the facility :
application for financial assistance. If Catholic Charities, San Diego continues to or
homeless shelter on this property, repayment of the loan will be reduced by 10 percer
loan principal for each complete year of operation. No repayment of the loan will be I
if Catholic Charities, San Diego continues to operate a homeless shelter on this pror
a ten year period.
3. Financial assistance shall be subject to granting the City of Carlsbad a right
refusal to purchase property should it at any time be made available for pu
the property upon 1
price for the prope
e. The City shall COI
meless shelter and
, Catholic Charities, Sa
. The loan agreeme
mount and form of th
ementation agreeme
g of the City Counc
ABSENT:
ABSTAIN: v
22 II CLAUDE A. LEWIS, Mayor
23 ATTEST: /I
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25 ALETHA L. RAUTENKRANZ, City Clerk
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(SEAL) 27
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EXHIBIT 2
Housing Commission Review Application
i
0 moLIc CHAR
&$gee and Immb
February 28,1997
Ms. kilani Hines
Department of Housing and Redevelopment
City of Carlsbad
2965 Roosevelt St., Suite B
Carlsbad, CA 92008-2389
Dear Ms. Hines,
Catholic Charities, Diocese of San Diego seeks the assistance of the City of Carlsba
to ensure the continued operation of La Posada de Guadalupe as a shelter benefitting
homeless men in the Carlsbad area. Specifically, we request financial support from the
Housing Trust Fund in the amount of $200,000 to purchase the property at 2472-2478
Impala Drive from the current owners who are strongly desirous of selling the land in the
very near future. With this level of assistance, Catholic Charities will be able to secure thc
remaining resources needed to affect a timely transfer of Deed. In its absence, CCSD coul
lose this opportunity to obtain the site control required to receive significant operational
funds from the federal government as well as risk our ability to remain at this location.
Catholic Charities requests that you utilize the attached amended Project
Description which was contained in our application to the City of Carlsbad for capital cos
under the CDBG Program. We are also prepared to provide any additional information
that you may require and request.
Thank you for your assistance in processing this request.
Sincereiy,
Department Director
+ 0 Catholic Charities
A WMMUNITYSERVICE MINISIRY Diocese of §an Diego
4575 Mission Gorge Place, Suite A, San Diego, CA 92120 - Tel. (619) 287-9454 - Fax (I
Member Agency of united Way Member Agency of Catholic Charities USA
0
PROJECT DESCRIPTION
I. SUMMARY
Capital funds in the amount of $ 200,000 are requested to
purchase the property upon which is located the unique and successful shelter facility and program known as La Posada de
Guadalupe de Carlsbad. Commenced in 1992 and operated by
Catholic Charities of San Diego (CCSD) in partnership with the
Caring Residents of Carlsbad (CRC), La Posada is an important
asset for and component of the City of Carlsbad’s response to th
perennial problem of homelessness among farm workers and day
laborers. Located on a 3.62 acre parcel adjacent to the City’s
Safety Center on Impala Drive, La Posada represents a physical
plant and communal environment unlike any other in San Diego
County. To preserve the benefits of this resource is the purpos
of this grant application.
11. NEED
La Posada was originally conceived and constructed as a
temporary shelter. Designed with mobile units and a maximum sta
of 90 days, the physical and programmatic character of the
shelter was planned as a test of its capacity and capability to contribute to a meaningful response to homelessness and its
compatibility with the community‘s will and willingness to share
in that solution. Fortunately the outcomes have all been
positive for all concerned - CCSD, CRC, the City of Carlsbad and
the homeless themselves. Unfortunately, the temporary character
has had some negative consequences for the program.
First, although the tenure of occupancy has always been uncertain, the prospects of losing the ability to remain at the
current site are now real. The land’s owners, strong supporters
of the shelter since its inception, have indicated their,decisio
to act on their investment by placing the property for sale.
Should another buyer have alternative use for the space, the
ability of CCSD to identify a suitable substitute is unlikely.
Based on the experience of establishing La Posada at its present
premise, the costs of locating a comparable tract plus preparing
the site and moving the mobile units would also be prohibitive
absent sufficient funding. The likely level of needed assistanc
would nearly match the sale price being asked by the owners, and
the loss of service time and community support would be great.
Second, the lack of site control beyond a year-to-year leas
has resulted in the loss of significant operating revenues. Our
1996 application for a two-year, $ 200,000 federal emergency
sufficient site control over the course of the grant period. Th
1997 round of FESG funding is currently in process, and without
ownership of the site, our ability to demonstrate sufficient sit
control to qualify for these needed operating monies is negated.
shelter grant (FESG) was not even evaluated because it lacked
0 e
Conversely, if we are able to attain ownership, then the level 0.
funds we could receive would go a long way to making the shelter
able to operate in the black.
Third, the lack of long-term or permanent site control has
also adversely affected the site’s ability to secure a long-term
Conditional Use Permit. The Planning Commission was willing to
grant such a permit before it learned of the tentative nature of
our tenancy. The cost in application fees for renewing the CUP
is another savings to be realized if ownership is secured,
Fourth, the single largest expense besides personnel is
space. It is unlikely that a new landlord would provide CCSD
with the same rental rate as we currently experience. Additiona:
costs could cause the shelter to operate at a level of loss
beyond its ability to sustain. In fact, Catholic Charities has
already absorbed significant sums of deficit (nearly $ 200,000)
in both the original construction costs and operating expenses over the past three years. The City of Carlsbad has been able tc
contribute only a fraction of this amount through annual awards
of CDBG Public Service funds. By approving this request, the
City can make a significant contribution to maintain a program
that has been beneficial from its beginning.
111. METHODS
Catholic Charities has already held discussions with the
current owners who are willing to work out a deal for the sale of
the property to Catholic Charities. Representatives from the City of Carlsbadrs Planning and Housing Departments have also
been involved. The asking price is $ 362,000 and a formal
appraisal will be completed by March 5 to assess its market
value. A funding package that includes significant Housing Fund
support would go a long way to assuring the acquisition of this property. The Allied Irish Bank, which has financed several
other property purchases for Catholic Charities, has indicated
its agreement to provide credit for the remaining amount.
Negotiations for the land will include the authorized agents
of the agency, the Executive Director and members of the
Corporate Board. All legal and fiscal requirements would be
handled in accordance within standard procedures and mechanisms,
including those established for HUD-funded projects.
IV. BENEFITS
1. Acquisition of permanent site control
2. Continuance of program operations
3. Enhancement of opportunities for operating funds
4. Realization of savings in space costs
5. Availability of site for future services
6. Location of Catholic Charities as a long-term resource
within Carlsbad
0 w
CITY OF CARLSBAD
COMMUNITY DEVELOPMENT BLOCK GRANT/HOME PROGRAM
FUNDING PROPOSAL APPLICATION
1997-98
The following information must be completed by each personlagencylorganization interested in
being considered for CDBG/HOME funding. All information requested & be provided or the
application will be considered incomplete and will not be further evaluated for funding
consideration. Please type or print clearly. Attach additional sheets or information as necessary
The applicatiorl must not exceed a total of ten (10) pages, not including the requirec
attachments as listed in the Checklist of Required Documents.
ADMINISTRATING AGENCY
Name of Agency: Catholic Charities, Diocese of San Diego
Address: 349 Cedar Street, San Diego, CA 92101
Federal Tax ID Number: 23-7334012
. PROPOSED PROGRAM/PROJECT
Title of Program/Project: La Posada de Guadalupe
Location of Program/Project: 2472-78 Impala Drive, Qtlsbad, CA 92o~
Contact Person: Robert d”oSer, Phan. Telephone NO.: 1 619 ) 287-9454
Requested Funding Amount: $ 300 3 000
Brief Description of Program/Project (Describe the work to be performed, including the activitie,
to be undertaken or the services to be provided, the goals and objectives of the
program/projec:t, etc.):
La Posada is a unique 50-bed facility serving hcxneless male farm workers and day laborers with basic szrvices of shelter and food and with case managtmnt,
assistance directed at employment and permaneit housing. Funds wit1 be used to purchase the property thereby assuring site control and the continuity of the facility a:ld its ‘services, plus enhancing the ability to . sec:ure operatin funds .
' 1997-98 CDBG/HOME F 'ng Applicarion
Poge 2 w e
I, ORGANIZATIONAL ABILIM1CAPACITY
A. This agency is: M Non-profit 0 For-profit
0 Local public agency f3 State public agency
0 Other (Please specify.)
exists to wi p" ness actively on behalf of the scriptural values of and justice, to acknowledge the sacredness of the human person, t enhance the quality of life for all. to advocate for F just socie to call men and women to action on behalf of the poor, and to pro self-determination for all.
8. What is the pur se/mission of the agency? A CO~U~ it^ Serv ice mini stry
C, How long has this agency been in operation? Please indude ihe date
incorporotionP
Since 1919 as the social service agency of the Roman Catholic Diocese; officially inforporated as 501 (C) (3) in February, 19;
D. How long has this agency been providing the proposed program/project?
Since November 1 , 1992
E. Please submit an organizational chart for the agency os Atfachment A.
F. Please describe the agency's existing staff positions directly responsible for i
proposed prograrn/prqect and their quafifeations and experience
implementing such a program/project. (Resumes may also be submitfed
Attachment B.) 0ept.Director:Liaison with city, budgeting, .program development, program evaluation - Ph.0.; 15 years administrative experience. Program bnager; Oaily program operation, staff supervision, maintain site and services, Liaison with other agencies. Casemanagers: Direct service delivery, client supervision, intal assessment, case planning, referral follow-up. Cook: Prepare meals, plan menu, supervise kitchen, food storage
G. Please indicate your agency's level of experience with the CDBG/HOME prog~ and/or other State or Federal Funding Souces.
CDBG/HOME moaram
0 No or lime experience, up lo 1 yeor of using CDBG/HOME funds.
0 Some experience, 2 to 3 yean of &ng CDBWHOME funds.
tl Moderate experience, 4 to 5 yew of using COBWHOME funds. @ Considerable experience, more than 5 years of using CDBG/HOME fur
Other State/Federal Fundina Sources:
0 No or little experience, up to 1 yeor of using other State/Federal funds.
0 Some experience, 2 to 3 years of using other Stafe/Federal funds. 0 Modergte experience, 4 to 5 yew of using other State/Federal funds;
@ Considerable experience, more man 5 yean of using other State/%
funds.
(wF:\APPLCATION) Rsv.sW: lO/z/96
' 1997-98 CDBG/HOME Fu g Application
Page 3 w
H. If you hove received federal funds, including CDBG/HOME funds, in previous
years, hove. program violation findings ever been made against your
agency/organuaiion?
b No 0 Yes
If yes, please explain noture of finding($) and how finding($) has been addressed
by your organization.
11. FlNANCtAl CAPACITY/STABILfTY
A. Please submit the proposed budget for the program/project, itemizing revenue!
and expenses, to this applicafion as Attachment C. Indicate how the requestec
CDBG/;iOME funds would relate to the overoll proposed Sudget.
8. Please submit a copy of the organization's financial audit report for fhe last fiscc
year as Attachment 0.
C. Did you receive any of the following sources of funding from the City cf Carlsbac within the lg$f two years ( 1995-96 and 199497) for the popose~
program/project?
Sources of Fundinq
CDBG Community Actiiiies (General Fund monies)
HI2 xes 0 011 RJ 0
if yes, please indicate amount and status of previousty awarded funds (fui expended, funds remaining, program/project discontinued].
Amount Received stotur
CDBG/HOME funds 10,000 (95-96) fully expended' (operat 30,000 (95-96) project complete (capi Community Activities 9,790 (96-97) 1/2 funds remaining (0
0. Did you receive any federal funds, indudng CDBGlHOME funding from 0th cities, last year [July 1996 - June 1997)?
c3 No pb Yes (Please list funds below
Proaram Source Amount Received
FEMA $ 25,000 $
$
E. W1l1 additional CDBG/HOME funds be required in future years for the project?
0 No il Yes
(WP:WPPUCAnCNl Revised: IW9196
City of Carlsbad 0 1
1997-98 COBGIHOME Funding Applicotion
Poge 4
Ill. BENEFITS d, BENEFICIARIES
A. HOW accessible = convenient k he pIOpoJed prOQrOm/fYOjeCt 10 CaSbOd
residents? (Please be specifc such OS direct services to client's home. transportation provided to and from faC%W, of relation to public hansportotii.)
Project located within Carlsbad, near migrant camps, adjacent to safety center, near El Camino Real, and less than 1 mile from bus Stop,
8. What is the approximate percentage of your clients thof hove annual famfi
incomes in each of the.following ranges: (Percentoges should add to 100%; Please see the 1904-95 Income timils for the CDBGIHOME Progrom)
80 % of clients are at 30 percent or below of the area median income 20 X of cEents ore bebeen 31 and 50 percent of the area median incomc
% of clienfs are between 51 and 80 percent of he area median incomc % of cfienis ore above 80 percent of the area median income -
c. Please describe how low and moderate income persons GU benefit from th
proposed prograrnlproject. Include the need or oroblern to be addressed relation to Consolidaied Plan housing and community develcpment priorities. c
well os the population to be served or the area to be benefited. (Se
Consolidated Plan Priorities)
By providing a safe, sanitary and sober shelter environment for homeless men within which they are encouraged and enabled througt casemanagement and support services to obtain employment, permane housing and social assimilation; transitions men from unsafe migrant camps to an effective shelter program to affordable rentl housing.
o. Please idcafe the number of clienis, by howehdda 01 individvob, benefit from the proposed acfivify and the percentage that are Corlrbad residents.
Households or 475 Persons of which 100% are Corlsbad residents
E. Does your agency focus its activities on populofions with sQedol needs?
0 No b Yes (Please specib)
Please specify which special needs populations. (Homeless individuak/fam Persons w*fh disabilities. Persons with substance abuse problems, Veterans. F workers & day loboren. Oderiy. Children. etc.)
Homeless male farm workers and day laborers.
(wP:\APPLlCAm
terised: 10129/6
. c;q OT C;armaa
L. 1997-98 CDBG/HOME Fu a g Application a
Page 5
IV. lMPLEMENTATlON Of ACTIVITY
A. Please submit a schedule for implementation of the proposed construction,
rehabilitation, property acquisition, other construction related or new
public/community service program/project os Attachment E. The agency must
ensure the expenditwe of all CDBGIHOME funds awarded within the program
year.
I, the undersigned, do hereby attest that the above information is true and correct to the best of
my knowledge.
Executive Director 12/4/96
Signhe Title Date
~~
Date Received: 12-0q-4b
Date Reviewed: 12- l0-9ca
Staff Person Completing Review: Lbo I\ &k". "6lEME1-k &4.4Z<ksq-
National Objective: L/H 1J-e $=3kF=l-f
local Objective: tksvM d&
Eligibility Determination: - 970. -1 Ts) : 570.zc)4(a)/2)(i_)(+
(WP:\APPLICATION) Revised: 10/29/96
e W
PROJECT DESCRIPTION
I. SUMMARY
Capital funds in the amount of $ 300,000 are requested to
purchase the property upon which is located the unique and
Guadalupe de Carlsbad. Commenced in 1992 and operated by
Catholic Charities of San Diego (CCSD) in partnership with the Caring Residents of Carlsbad (CRC), La Posada is an important
asset for and component of the City of Carlsbad’s response to tht
perennial problem of homelessness among farm workers and day laborers. Located on a 3.62 acre parcel adjacent to the City’s
Safety Center on Impala Drive, La Posada represents a physical
plant and communal environment unlike any other in San Diego
County. To preserve the benefits of this resource is the purpos‘ of this grant application.
11. NEED
successful shelter facility and program known as La Posada de
La Posada was originally conceived and constructed as a temporary shelter. Designed with mobile units and a maximum sta: of 90 days, the physical and programmatic character of the
shelter was planned as a test of its capacity and capability to
contribute to a meaningful response to homelessness and its
compatibility with the community’s will and willingness to share
in that solution. Fortunately the outcomes have all been positive for all concerned - CCSD, CRC, the City of Carlsbad and
has had some negative consequences for the program.
the homeless themselves, Unfortunately, the temporary character
First, although the tenure of occupancy has always been uncertain, the prospects of losing the ability to remain at the
current site are now real. The land‘s owners, strong supporters
of the shelter since its inception, have expressed an interest and intent to act on their investment by placing the property fo
sale. Should another buyer have alternative use for the space,
the ability of CCSD to identify a suitable substitute is unlikely. Based on the experience of establishing La Posada at
its present premise, the costs of locating a comparable tract
plus preparing the site and moving the mobile units would also b prohibitive absent sufficient funding. The likely level of needed assistance would nearly match the sale price being asked by the owners, and the loss of service time and community suppor would be great.
Second, the lack of site control beyond a year-to-year leas
has resulted in the loss of significant operating revenues. Our
recent competitive application for a two-year, $ 200,000 federal emergency shelter grant (FESG) was not even evaluated because it lacked sufficient site control over the course of the grant period. Another round of FESG funding is coming in the Spring o 1997, and without ownership of the site, our ability to apply. fo and acquire these needed operating monies is next to nil. Conversely, if we are able to attain ownership, then the level o -funds we could receive would go a long way to making the shelter able to operate in the black.
0 W
Third, the lack of long-term or permanent site control has
also adversely affected the site's ability to secure a long-term Conditional Use Permit. The Planning Commission was willing to grant such a permit before it learned of the tentative nature of
our tenancy. The cost in application fees for renewing the CUP
secured. is another savings that could be realized if ownership was
Fourth, the single largest expense besides personnel is space. It is unlikely that a new landlord would provide CCSD with the same rental rate as we currently experience. Additiona costs could cause the shelter to operate at a level of loss beyond its ability to sustain. In fact, Catholic Charities has
already absorbed significant sums of deficit (nearly $ 200,000) in both the original construction costs and operating expenses over the past three years. The City of Carlsbad has been able t contribute only a fraction of this amount through annual awards of CDBG Public Service funds. By approving all or part of this
capital request, the City can make a significant contribution
with federal funds to maintain a program that has been beneficia
from its beginning.
111. METHODS
Catholic Charities has already held discussions with the
current owners who are willing to work out a deal for the sale c the property to Catholic Charities. Representatives from the City of Carlsbad's Planning and Housing Departments have also been involved. The actual asking price is still under review bc it will likely rest in the $ 300,000 - $ 375,000 range. A funding package that included significant CDBG support would go long way to assuring the acquisition of this property.
Negotiations for the land would include the authorized agents of the agency, the Executive Director and members of the Corporate Board. All legal and fiscal requirements would be handled in accordance within standard procedures and mechanisms, including those established for HUD-funded projects.
IV . BENEFITS
1, Acquisition of permanent site control
2. Continuance of program operations 3. Enhancement of opportunities for operating funds
4. Realization of savings in space costs
5. Availability of site for future services
6. Location of Catholic Charities as a long-term resourcc within Carlsbad
e a
ATTACHMENT E: IMPLEMENTATION SCHEDULE
A meeting between representatives of Catholic Charities, th
City of Carlsbad and the property owners is scheduled for
December 12, just three days after the due date of this
application. Pending the outcome of that and subsequent discussions, plus the decision of the CDBG Review Panel and the City Council, the amount available through CDBG should be known in early 1997. If favorable, then the ability to execute the sale in a timely manner during the first quarter of the '97-'98
fiscal year should be highly probable and desirable. No expense covered by CDBG will be incurred, however, until and unless authorization from the City is provided. Since the steps needed
to be taken to implement this project do not require any
the site prior to sale, the involved fiscal and legal activities
should not pose any delays or difficulties.
intermediary (e.g. real estate broker) or physical alteration of
*. .
Marjorie HOWard-JOneS 4823 Argosy Lane e CarIsbad. California 92008 (619) 729-2054
June 13, 1997
To: Mayor Lewis and City Council members Re: Purchase of Las Posadas site
Dear friends,
As a long-time supporter of the Las Posadas men's shelter, I have been impressed by its efficient operation and its effective approach to helping homeless men find work and productive lives in our community.
It is significant to me that its director, Edward Preciado, has been in charge since the shelter's inception. To me, this demonstrates the long-range perspective and stability
of the shelter's program.
I hope that your serious consideration of this proposal will lead to the necessary funding to ensure the future of this essential facility.
Sincerely, \.
4. 1 jf \ j ;-, \I~~Q/\,~*,L"x+ &LLL 2 u\ -
C.C. Caring Resident; of Carlsbad
AGENDAclMl# 17
G#IByoT aw -
fltu.Atanztger '.city'Attorney
-> C Clerk
-.
-a
_*
1 e
June 13,1997
TO: MAYOR AND CITY COUNCIL
lCzt%%H
?$HE INFORMATIOF
D:$hCy MAN-Ag
ASST. CITY M
a:
THE CITY COUNCIL,
L *=9 u
FROM: HOUSING AND REDEVELOPMENT DIRECTOR &
VIA: CITY MANAGER
REQUEST FOR FINANCIAL ASSISTANCE -M POSADA DE GUADALLTE
On June 10, 1997, City Council discussed Catholic Charities’ request for financial assistance for
acquisition of the site for La Posada de Guadalupe homeless shelter. It was Council’s decisior
continue discussion of this matter to their June 17, 1997 meeting.
The following is provided to clanfy staff’s recommendation and to ‘provide other options for (
Council’s consideration.
Staff Recommendation
Catholic Charities’ request for financial assistance arose from an unexpected decision by the prop
owners to sell the property currently leased for La Posada de Guadalupe homeless shelter. While
property owners’ decision to sell presents a risk to Catholic Charities, an opportunity to en;
continued provision of shelter and supportive services for the homeless in Carlsbad can also be achieve
Transitional homeless shelters such as La Posada are considered a high priority for assistance within
City’s Consolidated Plan and are also consistent with the goals, policies and programs of the Ci
General Plan Housing Element to provide shelter and assistance for the homeless. Rather than face
possibility of increased operating costs or possible loss of the site for the homeless shelter as a resul
new ownership of the property, Catholic Charities and staff have worked together to present a finan
plan to retain the shelter and its services.
Staff supports a non-interest bearing forgivable loan of $200,000 from the City’s housing trust func
Catholic charities ($162,500).
bridge the gap between the purchase price of the property ($362,500) and the financial resource
Staff did originally consider providing financial assistance with repayment of the principal due upon
close of the homeless shelter or sale of the property. The City has in the past provided funds to a
with the development of affordable housing opportunities with no requirement or very “soft” terms
repayment based upon the understanding that such affordable housing would be permanent. Whilc
Posada, as opposed to other City supported housing, is semi-permanent in nature, this is by design.
the surrounding community grows and the shelter needs for the homeless change, there may
justification to relocate or even discontinue the homeless shelter. Siting and design of these shelters n8
to be flexible to address these concerns.
As suggested, addressing the housing needs of the homeless is not comparable to addressing the permar
housing needs of low income families. In relation to rental or ownership units for lower income fami
fundmg to support housing and services for the homeless population, particularly single males, is sc:
Additionally, in providing housing for the homeless there is no reasonable expectation of project incc
or rent. With few funding resources avdable to meet the housing needs of the homeless, the homc
I June 13,1997 0 4
Financial Assistance-La Posada
Pag@ 2
population is the hardest low income group to serve and the greatest in need for financial assistance.
most critical financial assistance need is typically for operating funds.
Demonstrating the difficulties in serving the homeless, Catholic Charities currently carries
approximate $155,000 accumulated deficit for operation of La Posada. Catholic Charities in
approximately $50,000 in operating deficit annually for operation of the facility. It is anticipated
Catholic Charities will continue to face a funding shortfall due to the limited funds available to sup!
these services and no program income. If Catholic Charities operates the shelter for ten years, t
operating deficit would reach approximately $655,000.
By providing financial assistance in the form of a forgivable loan, the City is helping with the :
acquisition and providing needed operating subsidy. Staff has recommended that each year Cath
Charities continues operation of the homeless shelter on this property, repayment of the loan wil
reduced by IO percent ($20,000) and completely forgiven upon reaching 10 years of operation. In et
the forgiveness of the loan by 10 percent each year will provide a $20,000 subsidy for the operation o
Posada. This $20,000 subsidy comprises approximately IO percent of La Posada’s total operating bul
of $186,000.
While each year the City has available Community Development Block Grant (CDBG) funds to a
with the administrative and operational costs of social service programs such as La Posada, the City
been unable to provide adequate CDBG funds to significantly impact their operating costs. Since 1’
Catholic Charities has been awarded an average of $8,860 in CDBG funds each year, approximate
percent of their annual operating budget. Federal regulations limit CDBG funds which sup]
operational costs cf social service activities to 15 percent of the CDBG allocation.
The $20,000 to be forgiven each year presents the City with an opportunity to use another func
source, the Housing Trust Fund, to provide financial support for the only homeless service provide
Carlsbad. With &s subsidy and CDBG Lds, the City’s contAbution wJl have a posit& impaa
providing a cost effective shelter and service program for the homeless.
As a result of the City’s participation, Catholic Charities and the residents of Carlsbad have t
successful in providing shelter to men who would otherwise be on the streets, canyons, and public a
of Carlsbad. The City’s continued assistance and cooperation greatly contributes to maintainic
beneficial program for addressing the needs of the homeless.
Should City Council not agree with the annual forgiveness of 10 percent of the loan, as recommendec
staff, the following options are also provided for Council’s consideration:
Options
I. Upon transfer or change of title of the property, recover $200,000 from the sales proceeds. If the (
should purchase the property, the purchase price for the property will be the fair market value of
property at time of purchase less the City’s financial contribution for acquisition of the property; 1
2. Recover all or a portion of the $200,000 from sale proceeds that represent appreciation over
-
above the original sales price of the property ($362,500).
If you should have any additional questions, please contact me or Leilani fines at x2815.
C: Community Development Director
0 0
KATHLEEN DUNN WELLMAN
ATTORNEY AT LAW
POST OFFICE BOX 1670
CARLSBAD. Cp IFORNIA 92018
(6 19) &I&&
June 14, 1997
Mayor Bud Lewis
Councilwoman Ramona Finnila Councilwoman Ann Kulchin Councilman Matt ilall
1200 Carlsbad Village Drive
Carlsbad, California 92008
Re: Resolution No 970004
Funding Assistance for Site Acquisition of La Posada
de Guadalupe de Carlsbad Homeless Shelter
Dear Mayor Lewis and Councilmembers Finnila, Kulchin, and Hall:
Until your comments were expressed at last Tuesday's counc meeting I was not aware of the concerns raised by some of y'
with regard to Catholic Charities 31) San Diego application €
financial assistance in the acquisition of the La Posada la site.
Since the hour wss late, I thank you fcr continuing 5; discussion of this application for financial assistance whi will provide all of us with the opportunity to furti: communicate with one another as inle are all of the same mind attempting to address the needs of our area's homeless in a mo effective, caring and cost efficient manner.
As you are aware, the housing commission discussed a
considered the same issues and approved Commissioner Scarpelli
motion 8-1, to adopt Reolution 140 37-004 which is now before yo
The ayes included Escobedo, Latas, Noble, Rose, Scarpell Schhlehuber, Valiter and 'vu'ellmzn, with Calverly against.
The stong consensus of the iIousing Commission was 'chat t overall benefit that the citizens of Carlsbad have received
the services provided 5y Catholic Chzrities to our homeless ov
the past four years 2nd khe committment by Catholic Chari'cies
continue to provide these services for at least the next k years 'GO our community (if our community so wishes) merited t
adoption of the resolution as presented 'LO you by staff la
Tuesday night.
On a separate attachment, for your reference, I have s forth the dollar amounts of the benefits previously received
the City, cf Carlsbad and to be received with this application.
AFme 4 k7J-S faeL.77
OF= 6/7Av.
J&G?,~S c/7y PQdmvL &a-z
0 0
Letter to Mayor Lewis an6 Council Members Re: iiesolution io 97-004
Page Two Dated: June 14, 1997
For your additional consideration, based upon my experienl upon the Housing Commission, and in researching and developing :
Posada de Guadualupe, I would point out that Catholic Chariti
of San Diego is not the first non-.profit organization to hz
made application for and to receive financial assistance from t housing trust fund.
Moreover, "for profits1! (ie developers and landlords) ha also made application for and received approval for financi assistance from at least some of the following sources: t
housing trust fund, the redevelopment fund, development densi bonuses and/or waiver of the payment of property taxes for t
life of the project. (The latter is a requirement, I believe,
receiving federal tax credits and the term is 55 years.)
In most instances, a "cash payback" requirement was n
mandated but instead a "useful life" (a term ranging from 20 55 years depending on the project) was instead mandated. being understood that the community was receiving an affordab housing benefit for that period of time.
To date under no circumstances has a non-profit which
actually providing social service benefits in Carlsbad, includi' the development of affordable housing, been required to sustain sizeable net operating loss in order to receive financi assistance from the city from one of these funds.
In fact this city has authorized sizeable payments certain non-profits as well as Iffor profits1' to cover the considerable charges for development costs. Further, where payback has been mandated the non-profit has used funds (
subsidized rents) generated by the project itself to meet th
condition, therefore not sustaining an actual loss.
Please refer to the second attachment to this letter f examples of same.
Because of the nature of La Posada in that it is emergency shelter, it does not self-generate funds such as ren nor can it be subsidizied under the Section 8 program as c
Villa Lorna and The Laurel Tree developments. Therefore, tl forgiveness provision of Resolution No 97-004, effective
results in an annual subsidy of $ 20,000.00 toward La Posada
overall annual operating budget of $ 186,000- 00, which
contributed by Catholic Charities of San Diego and to a mu lesser extent by Caring Residents of Carlsbad. The foregivene, provision as outlined above is critical to the sustainab
operation of La Posada.
0 0
Letter to Mayor Lewis and Council Members
Re: Resolution No 97-004
Dated: June 14, 1997 Page Three
With regard to the issue of Catholic Charties receiving
windfall upon the sale of the property, firstly, Cathol
Charities is committed to operate La Posada for at least
additional ten years and this committment is not contingent up
property valuation but rather the wants and needs of the city Carlsbad.
Secondly, from a Caring Resident point of view, we belie that it is in our city's long term best interest to have
sustainable. program in place to address the needs of our city
homeless long term as well as to provide long term affordab housing.
There are very few non-profit organizations that have t personnel and present fiscal capacity such as Catholic Chariti of San Diego to sustain and operate quality emergency shelt programs with full case management and other support servic such as La Posada.
Now with federal welfare reform in the offing and t
federal government looking to churches, non-profits, and loc
communities to meet the needs of our homeless it is all the mo
important for the local community to be in partnership with o of the more experienced providers of social services who have m
with success in obtaining funds from community foundations, t
United Way, and the federal government programs.
As more local jurisdictions become aware of the demands t federal government is placing upon them, once again Carlsbad wi be ahead of the curve in providing for its homeless in having i partnership with a quality non-profit already well established.
From my experience the last seven years as a Caring Reside
of Carlsbad and from working with Catholic Charities of San Die to bring La Posada de Guadualupe de Carlsbad to reality, Cathol
Charities of San Diego did not, has not and is not now seeking
make a profit in its operation of La Posada nor from the city
Carlsbad. But rather, with the set of circumstances with whi
it is now faced, it is seeking to sustain for the long term t viability of La Posada to alleviate the needs of Carlsbad homeless as we have petitioned it to do.
It is my strong hope that with additional discussions a
the assistance of the city's legal counsel, the resolution may "fine tuned" to address the several concerns raised at 1;
0 0
Letter to ?.layor Lewis and City Council Members Re: Resolution Mo 970094
Dated: June 14, 1997
Page Four
Tuesday's council meeting from all sides with respect to any
future sale of the real property.
KDX: sh
Enc
cc to Julie Mygaard Ray Patchett Evan Becker Ann Fait RayMonda Duvall
.~
e 0
ATTACHMENT ONE to Letter dated June 14, 1997
Re: Resolution No 97004
Funding Assistance for Site Aquistion of La Posada de
Guadalupe de Carlsbad Homeless Shelter
FINANCIAL BENEFITS RECEIVED BY CITY OF CARLSBAD IN DEVELOPMENT
OF LA POSADA DE GUADALUPE HOMELESS SHELTER
1990 - 1992: A11 predevelopment and actual development costs
and services DONATED by La Posada Development Team whose members included but not limited to:
Landowner: Carlsbad 48, A Limited Partnership
Non-Profits: Catholic Charities of San Diego
Architect: Gerard0 Samaniego EC Associates, AIA
Land Planners PZ
Developers: Rick Engineering; Ladwig & Associate
General Contractors: O'Gara Construction;
Financial Consultant: Western Financial
Caring Residents of Carlsbad
KayMar Construction
1992 - SOURCES AND AMOUNTS OF INITIAL FUNDING:
State of California Emergency Shelter Program Grant -- $ 345,000 00
Caring Residents of Carlsbad (value of in kind
and matching services to qualify for ESP Grant
Catholic Charities of San Diego - $ 90,000 00
Carlsbad 48 - A Limited Partnership (rent
reduction of $ 42,000 00
SUBTOTAL INITIAL FUNDING: $ 567,000 00
- $ g0,ooo 00
1992 - 1997 SOURCES AND AMOUNTS OF FUNDS TO SUPPORT LA POSADA
(Annual operating budget of $ 186,000 00)
Catholic Charities of San Diego - $ 830,700 00*
Caring Zesidents of Carlsbad - $ 71,283 00
($ 55,500 to Catholic Charities)
($ 15,783 to outside sources for benefit of La Posada (ie chairs, gravel, kitchen equipment, etc)
City cf Carlsbad CDBD - $ 44,300
SUBTOTAL OF SUPPORT FUNDING: $ 946,233 00
8 Includes current operating deficit carried by
Catholic Charities of San Diego @ $ 155,000 00
0 0
ATTACHMENT TWO to Letter dated June 14, 1997
Re: Resoluttiton No 97004
Funding Assistance for Site Aquistion of La Posada de
Guadalupe de Carlsbad Homeless Shelter
METHODS OF FUNDING USED BY CITY OF CARLSBAD
LAGUNA APARTMENTS REHABILITATION PROJECT
Housing Commission Resolution No 96-912 passed unanimously
November 14, 1996; Subsequently set to be heard by Ci Redevelopment Commission; Subsequent Action: (Developer th
cancelled escrow and plan fell through)
As approved by Rousing Commission, a "for profit" develop
Redevelopment Fund to be used for his rehabilitation of 17 uni
extremely deteriorated apartment complex on Laguna Drive
sought financial assistance of $ 216,750 from City of Carlsb
The assistance of $ 216,750 was to be in the form of a interest deferred payment loan due in ten years from the city Carlsbad's Redevelopment Low St ?.loderate Income Set-Aside Fund
For a committment by the developer to deed restrict these
units for Low h Moderate Income rentals for the next twen
years, he would receive sufficient funds to completely rehab t
apartments; he would also receive significant appreciation
value of property upon completion of the rehab; further he w not restricted in selling the project at any time aft completion of the rehab and any net profits would go to t
developer
LAUREL TREE APARTMENTS (PROPOSED 152 LOW INCOME RENTAL APARTMEN
PROJECT FOR A 55 YEAR TERM)
On November 7, 1995, MAAC - the non profit develop received council approval of its application for appropriation
$ 500,000 00 from the CiLy Low & Moderate Income Housing S
Aside Fund (part of the city's redevelopment funds) in order apply for $ 500,000 00 from the State HOME Fund program.
approved this was leveraged at 1 to 1 by the city redevelopme
.funds and the state Home Fund Program.
On May 21, 1996, City Council Resolution // 96-186 approv an additional .$ 200,000.00 appropriation from the Housing Tru Fund to the Laurel Tree Project to increase the chances of t project receiving favorable tax credit funding from the State T Credit Allocation Committee. Its application before the TCAC
hopeful but remains pending. With this additional request f funding MAAC is agreeing to convey the land to the City for
lease-back to the project. (Staff notes that the city has n
yet entered into any final agreements on the Laurel Tr
Project. )
0 0
VILLA LOMA - 344 AFFORDABLE RENTAL APARTMENTS (COMPLETED Ab RESTRICTED TO AFFORDABLE HOUSING FOR A 55 YEAR TERM)
Developer: Aviara Land Associates
Non-Profit: Bridge Development Corporation
Sources of city funds toward this project:
Site aquisition by City of Carlsbad: CDBD Funds of
approx .$ 880,000 00; balance in the form of a HUD Section I( loan to be paid from. CDBG Fundsj
Total Construction Yard & Soft Costs for Villa Lorna: $ 28,713,8{
of which $ 2,212,000 is from city redevelopment funds in t'r nature of two loans with different terms but both with simp1 interest on unpaid principal at 3%. All the payback by Bridi
Development Corporation on these loans is based on "surplus caz
flow" from the project.
While Aviara Land Associates incurred $ 900,000 in prc development expenses and the city as the redevelopment agenc contributed an additional $ 2,000 000 for its Land Advance, tk
agreement between the parties provides that the city and Aviar
Land Associates will be reimbursed from mitigation fees for thei
respective costs incurred in developing this successful project.
Moreover, in the development of this project Aviara Lar
Associates receives credit for rneeting its minimum inclusionar housing requirement with respect to its development of the Aviar iYIaster Planned community.
0 0
4340 Highland Drive
Carlsbad, California 92008
June 17, 1997
Mayor and City Council
Carlsbad, California
Dear Mr. Mayor and Members of the City Council:
Regarding the matter of La Posada de Guadalupe of Carlsbad, 1
request that a decision favorable to the continuation of this
service be given.
The facility for homeless men testifies to the earnest effort
of this community to provide a temDorary shelter and support
for the unfortunate.
I understand that the crux of the issue facing the City is tl.
and staff a facility such as this exclusively under city
auspices, the burden of funding would be a serious concern.
As this civic/volunteer effort is well recognized locally ant
Kathy Wellman was recently honored for her significant
contribution toward this, I recommend that the City assist La Posada in the necessary funding which will benefit the
entire community.
Thank you.
matter of funding, Certainly, if we were required to operate
C%F
n P. McGill ,
.\
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,: .qz.,f J i r" L 7i.c . L '' ' I.i //k:&- L-i/
,." Justine C. McGill
dGLNDAmea3
c: Mayor city Q;ouncil city Manager
City Attorney
Ciiy Cleric
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4 0 0
b I
Board OB Btrectots
Ann Tait,
peadent
/?tichad O'qam,
Dice- ptesident
fiatp fiontoy,
c?fZeASU@e@
i3at6ata $menex,
Sectetaq
Rosaknd Eelmont
'BOU~~S aunn
gmne 3enton
qha -%.Ley
'Bonna Ross
fiaeilyn
i3'm Wassenhove
Kathleen 'Bum
Wellman
flethue Y&s
3da YoUes
cd?LPt$ ResidePtts o$ C&s6, -
AGENDASTEM ## L3 ,..,
June 15, 1997
Q Mayor City Council
City Manager
UXy Attorney
City Clerk
CDM Bev XVCC
&P+U Q d
Mayor Bud Lewis and City Council Members Finnila, Kulchin,
Nygaard and Hall
City of Carlsbad 1200 Carlsbad Village Drive
Carlsbad, CA 92008
Dear Mayor Lewis and Carlsbad City Counc
Members:
At our board meeting on Saturday June 14th, t
enclosed was adopted and is being sent to you f
your information.
Should you have any questions about our feelin on the matter please contact me.
Sincerely yours, a-d&/ a5Z-A
ANN FAIT, President Board of Directors of Caring Residents of Carlsbad
729-3738
AF: sh
cc Sr. RayMonda DuVall
CaQing Residefits 4 Caalsbad, 3fic- jl ;bablic Eeaejit Coap;2
p.O.730~ 2194, Cazlsbad, CA 92018, telephones 619/729-37SS L? 9q-t
a e
J ”
MOTION OF BOARD OF DIRECTORS OF CARING
RESIDENTS OF CARLSBAD
The Board of Directors of Caring Residents of Carlsbad h;
passed unanimously the following motions directed to Mayor BI Lewis and Members of the Carlsbad City Council, with regard 1 Financial Assistance for Site Acquisition of the La Posada ( Guadalupe de Carlsbad Homeless Shelter by Catholic Charties (
San Diego:
1. The Board of Directors of Caring iiesidents of Carlsbi
supports the contents of the letter of Kathleen Dunn Wellmi
dated June 14, 1997, in its entirety, and directed to Mayor Lew: and Carlsbad City Council Members Finnila, Kulchin and Hall, Rc Resolution No 97004 on next Tuesday’s Carlsbad City Counc:
Agenda.
2. With regard to the future sale, if any, of the Irnpa: Drive property by Catholic Charities of San Diego, and in tl
event a profit will be realized from the sale of said re; property, the net proceeds of sale of said property should 1 distributed as follows:
A-I. Any and all outstanding debt incurred by Cathol: Charities of San Diego in its overall operation of the sheltel (including all funds it advanced toward its purchase price a1
any outstanding capital or operating deficits) shall be paid :
full from the net proceeds of sale directly to Catholic Charitic
of San Diego.
A-2. Any and all costs of relocation of the shelter i
another site in Carlsbad for the continued operation of i
emergency shelter program shall be paid in full from the nc proceeds of sale.
A-3. All funds advanced by the City of CArlsbad from ii Housing Trust Fund in a sum not to exceed $ 200,000.00, shall 1 paid to the City of Carlsbad Housing Trust Fund.
A-4. Any profits then remaining shall be distributed 1 Catholic Charities of San Diego.
PASSED, APPROVED AND ADOPTED at a regular meeting of tt Board of Directors of Caring Residents of Carlsbad, held on Ju:
14, 1997.
- &? &Ll %’A’ /
ANN FAIT, President-
Board of Directors of
Caring Residents of Carlsbad
. m e
Financial Assistance
La Posada
Catholic Charities $1 62,500
City of Carlsbad Loan $200,000
Total Purchase Price $362,500
..
S*P s- s%%u.o
A~L %h7 edHm
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Loan Terms
a No interest
0 Loan will be reduced by 10%
0 Right of first refusal
a Option to purchase in the fifth
year and each year thereafter
Cooperate in determining
alternate sites and assist with
relocation
each year of operation