Loading...
HomeMy WebLinkAbout2003-07-23; Housing Commission; MinutesMinutes of: HOUSING COMMISSION Time of Meeting: 6:OO P.M. Date of Meeting: July 23,2003 Place of Meeting: HOUSING AND REDEVELOPMENT OFFICE CALL TO ORDER Chairperson Scarpelli called the Special Meeting to order at 6:04 p.m PLEDGE OF ALLEGIANCE The Housing and Redevelopment Office did not have a flag so the Pledge of Allegiance was waived. ROLL CALL Present: Commissioners: Renee Huston Edward Scarpelli Margaret Schraml Bobbie Smith Absent: Commissioner: Dons Ritchie Staff Present: Housing and Redevelopment Director: Debbie Fountain Management Analyst: Craig Ruiz APPROVAL OF MINUTES Minutes of March 23,2003, were approved as written. VOTE: 3-0 AYES: 3 -0 NOES: None ABSTAIN: 1 (Margaret Schraml) COMMENTS FROM THE AUDIENCE ON ITEMS NOT LISTED ON THE AGENDA There was no audience in attendance, who wished to speak at this time. NEW BUSINESS Chairperson Scarpelli confiied that Craig Ruiz would be doing the presentation regarding the Redevelopment Commission to provide redevelopment funds for the Roosevelt Street project. Craig Ruiz said in March of this year the Redevelopment Agency purchased a piece of property on Roosevelt Street at 2578. When the property was purchased, there were two intents behind that purchase. First, there was a boarded up, abandoned house that was on the property, which was uninhabitable. There was a lot of trash and debris that was scattered and all sorts of other things on that property. One of the first goals of redevelopment is to remove blight from the redevelopment area. By acquiring the property and removing the debris, that was accomplished. Redevelopment agencies are also charged with providing affordable housing, which is what we want to pursue on that sight. It is just under 6AOths of an acre and with the current zoning, staff believes from ten to twelve units could be developed on the site. After acquiring the property, staff issued a Request for Qualifications to agencies that provide or build, own and operate affordable housing. We received three responses and interviewed all three firms. The fi that was selected is Wakeland Housing. Wakeland is located in San Diego and has done one project in the City of Carlsbad, which is the Vista Las Flores project on Aviara Parkway. That is the latest affordable housing project that has been completed in the city. Wakeland has local experience, which was one of the important factors that helped us in choosing to select them. We are now entering into an agreement with them to provide a pre-development loan. We HOUSING COMMISSION MINUTES JULY 23,2003 PAGE 2 of 5 will use those funds to do the necessary planning, architectural and engineering studies. We will then be able to go forward to City Council for an approval of an apartment project. This is the fust step in that process, to go forward on the studies and the necessary entitlements. At a future date, we will have some type of financial assistance proposal. from the developer that we will bring back to the Housing Commission that will finance the construction of the project. There are three actions before the Commission. One is to approve the loan documents, which include the pre- development loan for the project for $200,000. There is the assignment agreement. If for some reason during this process they were to default and not complete the project, any plans or studies that were completed would become the City’s possession. We could take those plans or drawings forward to complete the process. The third document is the promissory note, which is the promise to repay the loan. To approve the loan is the second action. Third, the money we are looking to utilize is from the Community Development Block Grant fund. It is a special fund that is set aside for affordable housing development. One of the actions that you will need to make a recommendation to the Council is to allocate the CDBG funding specifically for that loan. Barry Getzel is here from the development and can answer questions specifically about their company. If you have any questions about the report, I would be happy to answer them. Chairperson Scarpelli asked if anyone had any questions. Commissioner Huston asked about the refinance of the subsequent loan. Craig Ruiz said the loan of $200,000 will likely be rolled into a permanent loan, which will fund the development of the project. Chairperson Scarpelli asked what the price of the property was? Craig Ruiz said it was $690,000. Commissioner Huston asked how much was in the Block grant for housing? Craig Ruiz said it was $244,000, which is available. Debbie Fountain said it actually goes into what we call the housing reserve fund of the CDBG program. Then when we have a project, it is reallocated to a specific project. So that is what is being proposed as one of your actions tonight is to take that entire amount that is in the reserve hd and allocate it to this project, but right now we are only requesting $200,000 of it to go into the pre-development loan. Chairperson Scarpelli said he was confused about that. He thought it was $200,000 plus $244,000, but it is really the reserve that is $244,000 and the loan is $200,000. Chairperson Scarpelli continued, that this funding from the CDBG housing reserve so it doesn’t affect the amount of money that we have available under the CDBG funds or other distributions for other projects. This is totally separate. Debbie Fountain stated that was correct. Chairperson Scarpelli asked if there was a budget in the packet. He asked about the parking situation. In the ten to twelve units, are they going to be making space in the public right-of-way or is there enough parking on site? Craig Ruiz said a portion of the money will be allocated for the final layout. There will be parking on site that will be adequate. HOUSING COMMISSION MINUTES JULY 23,2003 PAGE 3 of 5 Chairperson Scarpelli asked if there was an alley behind this project? Craig Ruiz said no. Chairperson Scarpelli said everythmg is egress or ingress off of Roosevelt. The management of the proposed project of ten or twelve will be by Wakeland? Craig Ruiz said yes. Barry Getzel, from Wakeland Housing and Development Corporation, said Wakeland is a non-profit affordable housing developer. They have been in existence for about five years. We did the Vista Las Flores project in Carlsbad. We have done a couple of other projects on our own, and we did a rather unique project in National City. We have done a lot of joint ventures with larger for-profit companies. We have about 2,300 units that we are involved in. Several projects we have done by ourselves and some with a joint venture. We are currently doing something in downtown San Diego and in San Ysidro. We llke doing small to moderate sized projects that are infill. Even though this is only ten to twelve units, we find it really intriguing because it is in the redevelopment area and just trying to perpetuate a pedestrian type atmosphere has interested us in all of our projects. I think this will be a really good one. Chairperson Scarpelli commented, that he is just completing a project with thirteen single-family homes. He wanted to know what architectural fm Wakeland normally works with. Mr. Getzel said they work with different ones at different times. They are interviewing a few right now. There was one that we preliminarily picked out and discussed it with staff here, but it turned out he didn't have adequate insurance so we are now seeking someone else. Generally they are very experienced people in doing affordable housing and working intercity, and we are going to make sure whoever we select is someone who has a lot of experience in the City of Carlsbad. I think it is important to have that rapport with city staff and knowing what the requirements are and to be familiar with what is expected of them. Chairperson Scarpelli just thought that figure was high. Mr. Getzel commented that would also include the soil engineering work, the civil engineering and the architecture. If less is spent, the remainder will go back to the city. Chairperson Scarpelli asked if there were any more questions. Commissioner Huston said she had a comment based on the workshop recently held about the downtown. It was all about architectural interest and the downtown being pedestrian friendly. Are those amenities you plan to include in your project? Mr. Getzel said definitely. One of the tricky things on this sight is to try to figure out the ingress and the egress without creating some major giant curb cut, which isn't very pedestrian friendly. We will keep in mind how it looks from the street as you walk by. We want it to have that coastal feel. Chairperson Scarpelli asked ifthe fiontage was 150 feet or 100 feet? Mr. Getzel said it is about 110 feet. It is only about twice that deep. You have to have about a 24-foot wide driveway. There will need to be a creative use of landscaping and how the buildings are positioned. A hundred and fifty feet is the maximum you can go without a turnaround for a fire engine without creating other water fire hydrants and everythmg on sight. You have to figure out which buildings are in the back. It will take a lot of thought, but I think we can deal with it. HOUSING COMMISSION MINUTES JULY 23,2003 PAGE 4 of 5 Chairperson Scarpelli asked, so you haven’t done anythmg preliminary yet like how many structures can make up the ten to twelve units? Mr. Getzel no we haven’t. One thing we are thinking of, we usually have a community center, an indoor structure. I think given this sight and to get the number of units and to get the parking, I think we are talking more of maybe creating a little outdoor mini passive recreation area that also could be a meeting space for the residents rather then put another building there. I think there is a limit to how many buildings you can put on that sight. Chairperson Scarpelli agreed it will be a challenge. ACTION: Motion by Chakn Scarpelli that the H ousing Commission adopt resolution 2 003-03 recommending approval to the Housing and Redevelopment Commission to provide a $200,000 pre- development loan to Wakeland Housing and Development Corporation. VOTE: 4-0-0 AYES: NOES: None ABSTAIN: None ABSENT: Ritchie Huston, Scarpelli, Schraml, and Smith ACTION: Motion by Chairman Scarpelli that the Housing Commission approve the pre- development loan agreement and related documents, and that $244,161 fiom the Community Development Block Grant Housing Reserve Fund be reallocated to pay pre-development costs for the development of an affordable housing project at 2578 Roosevelt Street. VOTE: 4-0-0 AYES: NOES: None ABSTAIN: None ABSENT: Ritchie Huston, Scarpelli, Schraml, and Smith CHAIRPERSON’S REPORT No reports. Chairperson Scarpelli did ask for the results on the participation on the H ousing Committee, but it appears as though the City Council did not feel that was appropriate. Our input would be to re-evaluate the way in which things are formulated or at least look at that as possibly a flawed formula and it needs to be looked at again. DIRECTOR REPORT: Debbie Fountain said she did not have anythmg, but maybe Craig Ruiz could share with the Commission where we are at with the Villages of La Costa project and Calaveras, the two big ones coming up. Craig Ruiz confiied, yes those are the last two projects that you saw that we did the two bond issues for. Villages of La Costa at Alga and El Camino Real, behind the Crazy Burro, we closed and issued the bonds, $20,000,000 worth and they have started construction on that project. They have building permits in hand now. The site has been graded. That should be completed the middle to the end of summer of 2004. That would be 180 units. Calavera Hills was $8,500,000 bond issuance and that also closed last month. They are grading that site. During the construction of College Blvd, they will have to stop for a couple of weeks and then pick it back up in September when the road and other utilities can get to the site. That is a 106 units, which will be completed about the same time as the Villages of La Costa. HOUSING COMMISSION MINUTES JULY 23,2003 PAGE 5 of 5 Debbie Fountain also commented on Kelly Ranch and how much work has been done, off of Faraday and Cannon. That is going full speed forward and that will have an apartment project that will have 11 1 affordable units in it. Also Bressi Ranch is being graded. ADJOURNMENT By proper motion, the meeting of July 23,2003 was adjourned at 6:25 p.m. Respectfblly submitted, Debbie Fountain Housing and Redevelopment Director PATRICIA CRESCENTI Minutes Clerk MINUTES ARE ALSO TAPED AND KEPT ON FILE UNTIL THE WRITTEN MINUTES ARE APPROVED. I The Cdty of Carlsbad Housing & Redeuelopment Department AREPORT TO THE HOUSXNG GOMXXSSXON I I Staff: Craig Ru3z management 2Lnalyfat I XtemNo. 1 I DATE: JULY 23,2003 SUBJECT: ROOSEVELT STREET AFFORDABLE HOUSING PROJECT RECOMMENDATION OF APPROVAL TO THE HOUSING AND DEVELOPMENT LOAN TO WAKELAND HOUSING AND DEVELOPMENT AGREEMENT AND RELATED DOCUMENTS, AND THAT $244,161 FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING RESERVE THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT AT 2578 ROOSEVELT STREET REDEVELOPMENT COMMISSION TO PROVIDE A $200,000 PRE- CORPORATION, APPROVAL OF THE PRE-DEVELOPMENT LOAN FUND BE REALLOCATED TO PAY PRE-DEVELOPMENT COSTS FOR I. RECOMMENDATION That the Housing Commission ADOPT Resolution No. 2003-003 recommending APPROVAL to the Housing and Redevelopment Commission to provide a $200,000 pre-development loan to Wakeland Housing and Development Corporation, approval of the Pre-Development Loan Agreement and related documents, and that $244,16 I from the Community Development Block Grant Housing Reserve Fund be reallocated to pay pre-development costs related to the development of an affordable housing project at 2578 Roosevelt Street. 11. PROJECT DESCRIPTION On March 11,2003, the Carlsbad Redevelopment Agency (Agency) purchased a vacant SS-acre property located at 2578 Roosevelt Street. The property was acquired for the purpose of developing affordable housing. The Agency anticipates that a 10-12 unit apartment project can be built on the site (subject to City CounciVHousing and Redevelopment Commission approval). It is the Agency’s intention to work with a non-profit housing developer to construct, own and operate the development. The property is located in Land Use District 8 of the Carlsbad Village Redevelopment Area. In the Redevelopment Area, the Carlsbad Village Redevelopment Master Plan and Design Manual (Master Plan) is the land use and design regulatory document. Under the Master Plan regulations, multi- family housing is a permitted land use. Further, the General Plan and Master 2578 ROOSEVELT STREET JULY 23,2003 PAGE 2 Plan allow for a maximum density of 19 dwelling units per acre. The surrounding land uses include a 3-story office building to the north, single-family residences to the east, multi-family apartments to the south, and an office and trailer park to the west. The property is within close proximity of many of the service facilities, retail locations, mass transit and other amenities offered within the Redevelopment Area. At the time the Redevelopment Agency initiated the acquisition, the site contained an uninhabitable, boarded-up residence. In addition, the site contained large amounts of trash and debris. As a requirement of the Agency’s purchase, the previous property owner removed the structure and all of the material stored on-site. In addition to providing affordable housing, the purchase and development of the subject property will assist the Redevelopment Agency to meet the primary redevelopment objective of eliminating blight. The Carlsbad Redevelopment Agency’s 2000-2004 Redevelopment Implementation Strategy includes an affordable housing production plan that indicates the Redevelopment Agency intends to assist in the production of 253 units of newly constructed affordable housing units. Acquisition of the subject property will assist the Agency in meeting a portion of the production goal. The subject Strategy also requires that covenants be placed on the property to ensure the long-term maintenance and affordability of the designated affordable housing units for a minimum of thirty ( 30) years. For the u ltimate d evelopment o f t he property, the Agency will require long-term affordability requirements for a minimum of fifty-five (55) years. As stated above, the proposed action before the Housing Commission is to approve the Pre- Development Loan Agreement and related documents. Wakeland will utilize the pre- development funds to conduct all necessary planning, engineering and architectural studies, and process the necessary permits to allow for the project development. At a later date, the Housing Commission will review a request for financial assistance to construct the subject affordable housing project. 111. DEVELOPMENT TEAM After acquiring the property in March, 2003, the Redevelopment Agency issued a Request for Proposals to firms with experience developing affordable housing projects. After reviewing the three responses and conducting interviews, Wakeland Housing and Development Corporation was selected to develop the site. Wakeland is an experienced non-profit affordable housing developer in the San Diego and Southern California region. In 2001 Wakeland developed the 28- unit Vista Las Flores affordable apartment complex in Carlsbad (southeast comer of Aviara Parkway & Cobblestone Road). IV. FINANCIAL ASSISTANCE In acquiring the property, the Agency utilized funding from the Redevelopment Low and Moderate Income Housing Fund (LowMod), the Federal Community Development Block Grant 2578 ROOSEVELT STREET JULY 23,2003 PAGE 3 (CDBG) Program, and the Federal Home Investment Partnership Program Fund (HOME) Program. CDBG regulations state that such funds may only be used for land acquisition and pre- development activities, but not on actual construction activities. Therefore, the Pre-Development Loan will utilize CDBG funds exclusively. As stated in the attached Pre-Development Loan Agreement, the amount of the loan i s to be $200,000. Staff is requesting that the entire balance be reallocated for pre-development activities for this project. The $44,161 difference between the loan amount and the allocated CDBG amount would be reserved as a contingency fund for the pre-development portion of the project. If some or all of the contingency funds were not used, it would be returned to the Housing Reserve Fund to be use for a future project. The CDBG Housing Reserve Fund has a current balance of $244,161. While the project is in the p ermit p rocessing stage, staff and W akeland will b e negotiating a development agreement. The agreement will formalize the roles and responsibilities of the Agency and Wakeland for the property development and operation, establish the terms for the purchase or long-term lease of the property, and the terms of the City's construction loan to the project. The agreement will be returned to the Housing Commission for its review at a later date. V. LOAN DOCUMENTS As part of this transaction, the Agency and the developer will be entering into three agreements. The first agreement is the Pre-Development Loan Agreement that details the requirements to repay the loan. The Assignment Agreement states that in the event of a default, all plans, studies, drawings and entitlements become the property of the Agency. If necessary, the Agency could then use these documents to complete the construction of the project. The Promissory Note is the developer's pledge to repay the loan. VI. SUMMARY AND STAFF RECOMMENDATION It is the role of the Housing Commission to make financial assistance recommendations to the City Council and Housing and Redevelopment Commission based on several considerations with respect to affordable housing projects. These are: e The proposal's effectiveness in serving the Agency/City's needs and priorities as expressed in the Housing Element of the General Plan and the Consolidated Plan. 0 The proposal's consistency with the AgencyKity's affordable housing policies and ordinances as expressed in the Housing Element and Inclusionary Housing Ordinance. 2578 ROOSEVELT STREET JULY 23,2003 PAGE 4 The proposal's development and operating feasibility, emphasizing the development team capacity, financing sources and the role of the Agency/City in providing financial assistance or incentives. The subject affordable apartment project will b e developed by a capable non-profit developer that is committed to affordable housing. The financing structure, which will utilize a variety of federal, City and private hnding sources, is sound. The proposed City assistance meets the City's underwriting goals of a strong borrower and reasonable project costs. The project location is close to numerous service facilities, retail locations, mass transit and other amenities offered within the Redevelopment Area. Finally, the project, through the removal of a previously non- habitable structure and removal of trash and debris, will accomplish several redevelopment revitalization goals along with the provision of affordable housing. It is staffs recommendation that the Housing Commission approve the resolution of support recommending conditional approval of the proposed City financial assistance for pre- development associated with the subject affordable housing project to be located at 2578 Roosevelt Street. VII. ATTACHMENTS 1. Housing Commission Resolution No. 2003-003 2. Draft Pre-development Loan Agreement, Promissory Note and Assignment Agreement 3. Vicinity Map 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 HOUSING COMMISSION RESOLUTION NO. 2003-003 THAT THE HOUSING COMMISSION RECOMMEND APPROVAL TO THE DEVELOPMENT LOAN TO WAKELAND HOUSING AND DEVELOPMENT AGREEMENT AND RELATED DOCUMENTS, AND THAT $244,161 FROM THE COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING COSTS FOR THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT AT 2578 ROOSEVELT STREET HOUSING AND REDEVELOPMENT COMMISSION OF A $200,000 PRE- CORPORATION, APPROVAL OF THE PRE-DEVELOPMENT LOAN RESERVE FUND BE REALLOCATED TO PAY PRE-DEVELOPMENT WHEREAS, on March 1 1,2003, the Carlsbad Redevelopment Agency acquired property located at 2578 Roosevelt Street for the purposes of developing an affordable housing project; and WHEREAS, after acquiring the subject property, the Redevelopment Agency issued a Request for Qualifications for the purpose of selecting a non-profit affordable housing developer to develop, own and operate an affordable housing development on the subject site; and - WHEREAS, the Redevelopment Agency seeks to enter into a Pre-Development Loan Agreement with Wakeland Housing and Development Corporation to fund the pre-development activities to allow the project to receive necessary entitlement permits; and WHEREAS, the Housing Commission did, on the 23rd day of July, 2003, hold a public meeting to consider the Redevelopment Agency Pre-Development Loan Agreement to provide funding for the pre-development costs related to the development of an affordable housing project at 2578 Roosevelt Street; and 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 HC RESOLUTION NO. 2003-003 PAGE 2 WHEREAS, upon hearing and considering all testimony, if any, of all persons desiring to be heard, said Commission considered all factors relating to the proposed Pre-Development Loan Agreement. NOW, THEREFORE, BE IT HEREBY RESOLVED by the Housing Commission of the City of Carlsbad, California, as follows: 1. The above recitations are true and correct. 2. The Pre-Development Loan Agreement is consistent with the goals and objectives of the City of Carlsbad’s Housing Element, Consolidated Plan, the Inclusionary Housing Ordinance, the Carlsbad General Plan and the Village Master Plan. 3. The Pre-Development Loan Agreement will assist the development of approximately ten to twelve (10-12) affordable housing units which will be affordable to lower income households. The project, therefore, has the ability to effectively serve the AgencyICity’s housing needs and priorities as expressed in the Housing Element, the Consolidated Plan and the Village Master Plan. 4. That based on the information provided within the Housing Commission Staff Report and testimony presented during the public meeting of the Housing Commission on July 23, 2003, the Housing Commission hereby ADOPTS Resolution No. 2003-003, recommending APPROVAL to the Housing and Redevelopment Commission to provide a $200,000 pre-development loan to Wakeland Housing and Development Corporation, approval of the Pre- Development Loan Agreement and related documents and that $244,161 fiom the Community Development Block Grant Housing Reserve Fund be reallocated to pay pre-development costs for the development of an affordable housing development at 2578 Roosevelt Street Ill Ill Ill 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 5. That the Housing Commission recommends that the Redevelopment Agency Executive Director or his or her designee be authorized by the Housing and Redevelopment Commission to execute all documents related to provision of the Agency assistance, including but not limited to a Pre-Development Loan Agreement, Promissory Note and Assignment Agreement, in substantially the form presented to the Housing Commission on July 23, 2003, and subject to review and final approval by the City Attorney. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Housing . Commission of the City of Carlsbad, California, held on the 23'd day of July, 2003, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: EDWARD SCARPELLI, CHAIRPERSON CARLSBAD HOUSING COMMISSION DEBORAH K. FOUNTAIN HOUSING AND REDEVELOPMENT DIRECTOR HC RESOLUTION NO. 2003-003 PAGE 3