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HomeMy WebLinkAbout2010-07-13; City Council; 20313; LA POSADE DE GUADALUPE FARM WORKER HOUSINGCITY OF CARLSBAD - AGENDA BILL 21 AB# MTGr DEPT. 20,313 7/13/10 CED Agricultural Conversion Mitigation Fee Funding of La Posada de Guadalupe Farm Worker Housing DEPT. DIRECTORS^ CITY ATTORNEY CITY MANAGER RECOMMENDED ACTION: That the City Council ADOPT Resolution No. 2010-189 APPROVING disbursement of $1,945,600 in Agricultural Conversion Mitigation Fee funding to Catholic Charities Diocese of San Diego for construction of the La Posada de Guadalupe farm worker housing project, and AUTHORIZING the City Manager or his/her designee to negotiate and execute funding and regulatory agreements subject to approval by the City Attorney, and authorizing the Finance Director to appropriate the disbursement to the ACMF budget. ITEM EXPLANATION: On February 19, 2008 (AB#19,327 / Resolution# 2008-050), the City Council awarded Catholic Charities Diocese of San Diego (Catholic Charities) with a $2 million Agricultural Conversion Mitigation Fee (ACMF) grant to construct a new farm worker housing and homeless shelter to replace the existing shelter (La Posada de Guadalupe) located at 2476-2478 Impala Drive. However, a stipulation of the grant authorizes disbursement of only $108,500 to support design work. Disbursement of funding in excess of the $108,500, or funding to support costs beyond design work, requires ACMF Ad Hoc Citizens Advisory Committee (Committee) review and City Council approval. To date, $54,400 has been disbursed to the grantee to support design of the project. On February 22, 2010 the ACMF Committee recommended that the City Council make the full funding amount available to the grantee for construction of the project with disbursement based on progression towards completion of the project and milestone benchmarks. Draft minutes from the February 22nd meeting have been appended to this report as Exhibit 2. Since the February 22, 2010 Committee meeting, staff and Catholic Charities have met to discuss an appropriate structure for the grant. Catholic Charities has indicated support of fundamental structural components of the grant as proposed by staff and as detailed within the attached Key Terms and Conditions Summary (Exhibit 3). Such components include structuring the grant as 0% interest loan, which would be forgivable after 20 years and subject to regulatory and operating agreements. In addition, Catholic Charities indicates being supportive of negotiating the specific details of the grant as specified in the Key Terms and Conditions Summary document. Staff has reviewed and analyzed the preliminary project schedule (Exhibit 4) and has verified that the tasks outlined therein are detailed in reasonable sequence and duration to demonstrate a comprehensive and realistic command of the steps necessary to carry out the project. DEPARTMENT CONTACT: Kevin Pointer 760-602-4620 kevin.pointer@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION:APPROVED DENIED D CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D Page 2 Although the prospective conditional use permit submittal date is indicated as April 30 in the project schedule, staff notes that submittal of the application occurred on May 21, 2010. FISCAL IMPACT: Agricultural Conversion Mitigation fees are collected as coastal agricultural lands that are subject to the fee convert to urban uses. These fees have been set-aside in a special city fund (ACMF Fund) dedicated to providing the types of grants the Committee and City Council considers during the project solicitation/evaluation process. Through the adoption of Resolution 2008-050 by City Council on February 19, 2008, $2 million has already been authorized within the ACMF Fund for the La Posada de Guadalupe project; however, disbursement was limited to $108,500. To date, $54,400 has been disbursed for the project. Approval of the recommendation would authorize the appropriation and expenditure of the remaining $1,945,600 reserved within the ACMF Fund for this project. The only direct cost to the City resulting from the recommended action will be the staff time associated with the ongoing administration of the grant. ENVIRONMENTAL IMPACT: The proposed authorization for disbursement of $1,945,600 in ACMF funding is exempt from the requirements of CEQA. The award of funding is exempt from environmental review pursuant to CEQA Guidelines Section 15061(b)(3), which states that "CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA." Furthermore, the authorization for disbursement of grant funding does not authorize, permit, or guarantee the construction of the project. Construction of the project will be analyzed pursuant to CEQA through review of a conditional use permit required for the project. At this time, there is insufficient information to determine whether the project will result in any significant environmental impacts. EXHIBITS: 1. City Council Resolution No. 2010-189 2. February 22, 2010 ACMF Committee meeting Minutes 3. Key Terms and Conditions Summary 4. Project schedule. z EXHIBIT 1 1 RESOLUTION NO. 2010-189 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA APPROVING THE APPROPRIATION 3 AND DISBURSEMENT OF $1,945,600 IN GRANT FUNDS FROM THE AGRICULTURAL CONVERSION MITIGATION FEE FUND 4 TO CATHOLIC CHARITIES DIOCESE OF SAN DIEGO AND AUTHORIZING THE CITY MANAGER OR HIS/HER DESIGNEE 5 TO EXECUTE FUNDING AND REGULATORY AGREEMENTS SUBJECT TO APPROVAL BY THE CITY ATTORNEY. 6 CASE NAME: LA POSADA DE GUADALUPE ACMF FUNDING 7 WHEREAS, on February 19, 2009 the City Council approved $2 million in 8 Agricultural Conversion Mitigation Fee (ACMF) funding to Catholic Charities Diocese of San 9 Diego (Catholic Charities) for the construction of a new farm worker housing project to replace 10 the existing La Posada de Guadalupe shelter at 2476-2478 Impala Drive; and WHEREAS, the approval of the grant was conditioned such that up to $108,500 was authorized to be disbursed to support design of the project and disbursement exceeding $108,500, or funding for non-design related purposes, would first require ACMF Ad Hoc Citizens14 Advisory Committee (Committee) review and City Council approval; and WHEREAS, staff has disbursed $54,400 to Catholic Charities for design of the16 project; and WHEREAS, on February 22, 2010, the Committee recommended that City lo Council authorize the remaining amount ($1,945,600) for disbursement based on milestone benchmarks and progression towards completion of the project. 21 NOW, THEREFORE, the City Council of the City of Carlsbad, California, does ~~ hereby resolve as follows: 23 1. That the above recitations are true and correct. 24 2. That the City Council hereby authorizes the disbursement of $1,945,600 from the Agricultural Conversion Mitigation Fee fund to Catholic Charities Diocese of San Diego for the 25 construction of La Posada de Guadalupe farm worker housing project. 26 3. That the City Manager or his/her designee is authorized to execute the necessary funding and regulatory agreements, subject to approval as to form by the City 27 Attorney. 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4. That the Finance Director is authorized to appropriate the $1,945,600 to the ACMF budget. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of July, 2010, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard and Blackburn. NOES: None. ABSENT: None. CLAUDE A. LEWIS, Mayor ATTEST: LQRRAJNE fol. WOOD, CityJCIerk CITY OF CARLSBAD AGRICULTURAL CONVERSION MITIGATION FEE AD HOC CITIZENS' ADVISORY COMMITTEE MINUTES Monday, February 22,2010 Faraday Center, Room 173A 1635 Faraday Avenue, Carlsbad, CA 92008 1. CALL TO ORDER: ACTION: Chairperson Larson called the meeting to order at 1:30 p.m. Committee Members Present: Chairperson Eric Larson, Vice Chairperson Julie Baker, Jackie Stone, Hope Wrisley, Richard Erhardt, and Ken Alfrey. Staff Members Present: Minutes Clerk, Leticia Trevino; Associate Planner, Kevin Pointer 2. APPROVAL OF JULY 6, 2009 MINUTES: ACTION: Committee member Hope Wrisley moved to approve the minutes of the July 6, 2009 Committee meeting. The motion was seconded by Jackie Stone and carried unanimously. 3. RECEIVE REPORT ON STATUS OF PROJECTS AWARDED WITH AGRICULTURAL CONVERSION MITIGATION FUNDING The Committee received a report from Mr. Pointer on the status of grant projects awarded between 2007 and 2008. At the November 17,' 2008 meeting the Committee requested that staff return at future meetings and provide a status update to the Committee on grants that have been awarded by City Council since the Committee began making recommendations on expenditures of the funds. 4. RECEIVE REPORT ON AVAILABLE FUND BALANCE The Committee received a report on the available fund balance from Mr. Pointer. Pagel Committee discussion ensued regarding the available fund balance. The Committee reached consensus, agreeing that the available fund balance is insufficient to solicit applications for grant funding. 5. COMMITTEES DISCUSSION ON AWARDED GRANT AGP 06-16 (LA POSADA FARM WORKER HOUSING) Mr. Pointer introduced the item indicating that in 2008, a $2 million grant was awarded for the La Posada project; however, a condition of the grant only authorizes disbursement of $108,500 to fund project design work. In June 2009, staff disbursed $54,400 to the grantee. Prior to disbursement, (in January 2009) the Committee received testimony from the grant recipient explaining that the project could still be constructed however the grantee was having a difficult time securing operational funds necessary to operate and maintain the building once constructed. At is January 6, 2009 meeting the Committee passed a motion indicating that the grant recipient should return to the Committee within six months to provide a status update and again within one year, upon which the project should be viable. If project is not viable, the Committee could consider making a recommendation to City Council that the remainder funding ($1,945,600) be reprogrammed such that it would be made available to fund other grant projects. The grantee provided its first report to the Committee at its July 6, 2009 meeting and is returning at the present meeting to address the Committee's concerns regarding project viability. Catholic Charities representative, Sister RayMonda DuVall, addressed the Committee regarding design; a plan for funding operations; and, a preliminary construction budget. Sister DuVall requested that the Committee make a recommendation to City Council that the remainder funding be made available to Catholic Charities so they can proceed with construction of the project. Committee discussion ensued regarding the operations and construction budget. Mike Colarusso, also representing Catholic Charities, responded to Committee concern regarding the construction budget. Chairperson Larson opened the item to public comment. Tom Maddox addressed the Committee regarding La Posada de Guadalupe as a component of the Housing Element of the General Plan. Chris Calkins expressed concerns regarding the construction budget and the use of the funds to support housing for homeless, as well as women and families. Tom Maddox additionally referenced the use of the shelter for farm worker housing purposes until a time when there is no long a need. Kathy Wellman addressed the Council regarding a need for farm worker housing needs in Carlsbad. Committee member Baker requested that staff address the timeframe for which it is anticipated that farm worker housing in Carlsbad will no longer be needed. Committee member Alfrey made a motion, which was seconded by Chairperson Larson, that the Committee recommend City Council approve release of the full amount of the funding with Page 2 disbursement being based upon milestone benchmarks and progression towards completion of the project. The motion was approved 5-1 with Committee member Baker dissenting. 6. PUBLIC COMMENT Casey Cinciarelli addressed the Committee regarding separation of funds to support homeless and farm worker housing needs. Greg Rubin introduced himself as the new chairperson for the Agua Hedionda Lagoon Foundation. 7. FUTURE COMMITTEE MEETING DATE Fred Sandquist stated that he anticipates addressing the Committee by the third week of March to discuss the Batiquitos Lagoon Foundations grant for lagoon monitoring and management. The Committee identified March 29, 2010 as the next potential meeting date. 8. ADJOURN Chairperson Larson adjourned the meeting at 2:44 pm. RESPECTFULLY SUBMITTED, Leticia Trevino, Minutes Clerk PageS 7 La Posada de Guadalupe ACMF Program Grant Key Terms and Conditions Summary Proposed April 2010 Subject to final approval by the City Council, the City of Carlsbad will provide financial assistance through the Agricultural Conversion Mitigation Fee (ACMF) Grant Program in the total amount of $1,945,600 to Catholic Charities for the purpose of constructing a shelter with a minimum of fifty (50) beds for farm workers on the existing site of the La Posada de Guadalupe facility in Carlsbad. This assistance will be provided in the form of a non-interest bearing, forgivable loan secured by a note and deed of trust, and be subject to a loan and regulatory/operating agreement. In order to receive the $1,945,600 loan, staff will be recommending that Catholic Charities enter into a loan and regulatory/operating agreement with the City of Carlsbad. Staff will request that the City Council authorize the City Manager or her designee to negotiate and prepare the required loan and regulatory/operating agreement documents for final execution by the City and Catholic Charities. The purpose of this Key Terms and Conditions Summary is to set forth the proposed recommendation of staff for consideration by Catholic Charities for the subject ACMF loan. The agreements will include a description of the project and the intended use for the ACMF loan. A projected construction budget and project schedule will be included within the agreements. It will be expected that Catholic Charities adhere to the project budget and schedule, unless an alternate budget and/or construction schedule is approved by the City of Carlsbad in writing. Upon approval and further direction from the City Council, the terms and conditions will be negotiated between the City of Carlsbad and Catholic Charities and will include, but may not be limited to, the following: • The subject loan shall be used for the construction of the approved facility; approved Conditional Use Permit and appropriate building permits must be issued by the City of Carlsbad before any of the loan proceeds noted herein will be released. • The loan proceeds shall be disbursed in the form of construction draws which shall require appropriate documentation and certifications from the general contractor and/or project manager to be submitted to the City for review. • Incremental disbursement of the loan funds shall be based on the itemized development budget and phased schedule with payment to be made directly to Catholic Charities based on submittal of invoices, and certification by the general contractor and/or project manager that said work has been satisfactorily completed and that actual construction costs to date conform to the approved development budget. • The term of the loan shall be no less than twenty (20) years. • The loan shall be non-interest bearing and shall be forgivable after twenty (20) years. • The loan shall be amortized over the term of the loan beginning upon issuance of the final certificate of occupancy for the completed project; amortization of l/20th per year. Page 1 of 2 The loan will be secured against the property at 2472-2478 Impala Drive through a "Promissory Note" and "Deed of Trust and Security Agreement." Catholic Charities to furnish the City with a title report on the property. The loan shall become due and payable if the property is transferred to another entity, the shelter discontinues operation for four months or longer in any twelve-month period during the term of the loan, or Catholic Charities defaults on the terms of the loan/regulatory agreement. The loan shall be repaid to the City according to the amortized schedule noted above. A minimum of fifty (50) beds must be utilized by or made available to farm workers at all times, unless by mutual agreement the City and Catholic Chanties determine that there is no longer a need for at least fifty (50) beds. The facility may convert to a facility that serves the general homeless population upon modification of the Conditional Use Permit (if necessary), and occurrence of one of the following: o At the end of the loan period; or, o Upon agreement by both the City Council and Catholic Charities that there is no longer a need or it is no longer feasible to provide farm worker housing; or, o Upon repayment of the remaining loan balance, according to the schedule of amortization noted above. Catholic Charities shall keep and maintain on the property, or at its principal place of business, full, complete and appropriate books, records and accounts relating to the development, including all such books, records and accounts necessary or prudent to evidence and substantiate in full detail use of the construction loan. Books, records and accounts relating to compliance with the terms, provisions, covenants and conditions of the Agreements shall be kept and maintained in accordance with generally accepted accounting principles. All such books, records, and accounts shall be open to and available for inspection by the City, its auditors or other city authorized representatives at reasonable intervals during normal business hours. There shall be periodic inspections of the property to ensure compliance and proper maintenance of the improvements constructed with said loan proceeds Catholic Charities must obtain all permits and approvals necessary for the development to occur. Catholic Charities shall provide the City with quarterly progress reports regarding the status of construction of the proposed facility, until such time as the development is fully constructed. Following completion of construction of the facility, Catholic Charities will operate and maintain the facility for eligible occupants in conformity with the Regulatory/Operating Agreement as well as the loan agreement. Catholic Charities shall maintain all necessary licenses and permits to continue operation of the facility. Transfer of property and assumption of loan is allowed subject to agreement by all parties, including the City. City shall have first right of refusal for purchase of property or to operate facility. Unused funds shall be returned to the City. Page 2 of 2 La Posada de Guadalupe Project Schedule Task 1.0 Renewal of existing Conditional Use Permit (CUP) 2.0 CUP process for new development 2.1 CUP pre-submittal 2.2 CUPsubmittal, review and processing 3.0 Permitting process (building, landscape, grading, etc.) 4.0 Construction Start 05/21/10 05/04/09 05/04/09 05/21/09 08/30/10 04/23/10 Finish 10/01/10 10/01/10 05/20/09 11/23/10 03/25/11 09/12/11 10 Agricultural Conversion Mitigation Fee Funding for La Posada de Guadalupe Farm Worker Housing Kevin Pointer July 13, 2010 History of Grant Award •Feb. 19, 2008—City Council awards $2 M ACMF grant for reconstruction of La Posada de Guadalupe. •Grant authorizes disbursement of $108,500 to support design work. Grant Disbursement •$54,400 disbursed to date. •Funding above $108,500 requires Committee and Council review. Committee Recommendation •Feb. 22, 2010—Committee recommends City Council make the full funding amount available with disbursement based on progression towards completion of the project and milestone benchmarks. Key Terms and Conditions Summary •Staff and Catholic Charities support structuring the grant as: –0% interest loan –forgivable after 20 years –subject to regulatory and operating agreements Recommendation •ADOPT resolution APPROVING disbursement of $1,945,600 in ACMF funding subject to execution of agreements and AUTHORIZING the City Manager to negotiate terms and conditions of the agreements subject to approval by the City Attorney and AUTHORIZING the Finance Director to appropriate funding.