MEETING DATE:
SEPTEMBER 12, 2017
SUBJECT:
Title
RESOLUTION NO. SHA 2017-028 - APPROVAL OF A PROPERTY TRANSFER FROM THE SUCCESSOR HOUSING AGENCY (SHA) TO RICHMAR STATION SAN MARCOS (DEVELOPER) FOR PROPERTY ASSEMBLY FOR A FUTURE AFFORDABLE HOUSING DEVELOPMENT IN THE RICHMAR NEIGHBORHOOD
Body
Recommendation
Recommendation
ADOPT a resolution that the City Council in its capacity as the Successor Housing Agency (SHA) to approve the transfer of property valued at $590,000.
Body
Board or Commission Action
City Council as SHA approval of ENA and predevelopment loan on September 9, 2014
City Council as SHA approval of Supplemental Housing Support Agreement on December 9, 2014
City Council as SHA approval of Development and Loan Agreement, Section 33433 Report and property transfer on August 11, 2015
City Council as SHA approval of property acquisition loan on July 11, 2017
Relevant Council Strategic Theme
Planning for the Future
Relevant Department Goal
Facilitate Affordable Housing Production
Introduction
One of the City’s objectives has been the completion of the revitalization of the Richmar neighborhood, including the area between Mission Road and Richmar Avenue eastward to Firebird Lane. To that end, on September 9, 2014 the City Council as SHA approved an Exclusive Negotiating Agreement (ENA) and a related predevelopment loan of $392,500 for the Richmar Station mixed-use affordable housing development. On August 11, 2015 the SHA approved a Development and Loan Agreement, Section 33433 Report, and transfer of the SHA-owned property known as “4-Way Liquor” to the Developer for a loan of $2,227,870 inclusive of the property value, relocation, demolition and associated soft costs. On July 11, 2017 the SHA approved an additional loan of $721,500 for acquisition by the Developer for property known as the “Sabbas property” inclusive of the property value and associated soft costs.
Discussion
Since the inception of the project concept, the Developer planned to include the trapezoid-shaped property at the intersection of W. Mission Road and Firebird Lane (APN 220-083-06) in the project. This property is currently owned by the SHA and consists of one 0.10 acre parcel that is presently devoid of structures. Acquisition of this property will allow the developer to continue orderly property assembly for the affordable housing project. This property acquisition will be the next step in a multi-phased property assembly process. Final property assembly for the entire project could take several years.
Included in the attached resolution is the approval of an additional loan from the City as the SHA for $590,000 for the appraised value. The property loan amount of $590,000 represents a paper transaction only and not an actual out-of-pocket cash loan from the SHA. The associated soft costs for this acquisition are consolidated with the companion property acquisition request also before the Council at the September 12, 2017 meeting.
The basic DLA and Section 33433 Report allowing for the transfer of property from the SHA to the Developer were approved by the City Council as SHA on August 11, 2015.
Fiscal Impact
As a “paper transaction” only, there is no direct fiscal impact.
Attachment(s)
1. Resolution No. SHA 2017 - XXX
2. GIS Exhibit depicting the potential project site, including the property identified as APN 220-083-06
Prepared by: Harry Williams, Housing Programs Manager
Submitted by: Dahvia Lynch, Director, Development Services Department
Approved by: Jack Griffin, City Manager