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Council Meeting 7-26-88
Santa Monica, California
TO:
Mayor and City council
FROM:
City staff
SUBJECT:
Recommendation to Appropriate Funds for the Rehabili-
tation of city-Owned Facility at 612 Colorado Avenue
INTRODUCTION
This report requests the appropriation of $100,000 in Development
Agreement Funds pursuant to the City's Agreement with J.H. Snyder
Company to be used to support the rehabil i tation of Ocean Park
community Center's Homeless Drop-in Center and Day Break Shelter
at 612 Colorado Avenue.
It also requests an appropriation of
$200,000 from General Fund Reserves to cover the cost of
renovation and improvements to the remainder of the facility.
BACKGROUND
In December of 1987, the City Council approved the submission of
Federal and state grant proposals to support rehabilitation of a
facility to house a homeless drop-in center and shelter and
approved the award of these funds, if received, to Ocean Park
Community Center. By February I, the City had received notice of
the award of both the Federal and state grants in the amount of
$335,378 ($133,075 for rehabilitation and $202,303 for program
operations). On February 13, 1988, the City council approved
the use of a 35,000 square foot City-owned facility at 602-612
Colorado Avenue for the new homeless program and for lease to
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other non-profit organizations. Based on council approval, staff
began design work with Ocean Park Community Center and the
project architect and began to develop a renovation and leasing
plan for the remainder of the building.
Last month a release
agreement was effectuated with the previous lessee. The building
is now available for rehabilitation and leasing.
DISCUSSION
Based on the homeless grant award of $133,075 for rehabilitation,
it was estimated that 5,400 square feet of space could be
rehabilitated for the homeless program. However, in March of
1988, a development agreement was executed with J.H. Snyder
company II which makes available additional funds ($300,000) for
the construction and operation of new homeless programs and
facilities. Given the availability of these funds and based on
the refined architectural program for the homeless center, it has
been determined that an additional 1,723 square feet is needed
for center activities to better accomodate the drop-in center
function as well as provide an area for the resident manager of
the shelter.
While the first 5,400 square feet will be
contributed by the city as an in-kind match to the Federal and
state grants, Ocean Park Community Center will pay rent on the
remaining portion, possibly from additional Snyder Development
Funds (a plan for use of the remainder of these funds will be
forwarded to Council at a later date).
Based on estimates to date, the total rehabilitation cost for
OPCC1s program is approximately $233,000 which includes permits,
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e
demolition,
construction
and
tenant
improvements,
mechanical/electrical
work
and
construction
contingency.
$133,000 has been received in Federal and state grant funds;
therefore,
an additional $100,000 is needed from Snyder
Development
Agreement
funds
to
cover
the
additional
rehabilitation costs.
The estimated cost of renovating the remaining portion of the
facility (to be leased to non-profit organizations) is between
$170,000 and $200,000, including architectural and engineering
services,
demolition,
mechanical/electrical work,
and the
development of tenant suites.
While some support may be
available from the $200,000 received from the previous lessee as
a part of the release agreement to cover rent payments to the
City Transportation fund during rehabiliation, an appropriation
from General Funds reserves will be needed initially to cover
these costs.
Staff is currently identifying lessees for this
portion of the building and will provide Council with information
on the leasing plan shortly.
FISCAL/BUDGETARY IMPACT
Funds in the amount of $100,000 are available pursuant to the
Development Agreement with J.H. Snyder Company for rehabilitation
of the homeless component. There will be no impact on the City's
General Fund. Appropriation authority is requested in Account
01-200-262-143-506 in order to expend these funds. In addition,
approval is requested for the award of these funds, not to exceed
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$100,000, to Ocean Park community Center for rehabilitation of
the facility.
Funds in the amount of $200,000 for the rehabilitation of the
remainder of the facility are available in General Fund Reserves.
Appropriation
authority
is
requested
in
Account
01-720-262-000-952.
RECOMMENDATION
city staff recommends that the City Council:
( 1 ) approve
appropriation authority in the amount of $100,000 in account
01-200-262-143-506:
(2) approve the award of funds, not to
exceed that amount, to Ocean Park Community Center for
rehabilitation of the homeless portion of the facility: and (3)
approve appropriation authority in the amount of $200,000 in
account 01-720-262-000-952.
Prepared by: Barbara Stinchfield, Community Development Manager
Department of community and Economic Development
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