SR-010996-6N
6N
..
JAN 0 9 1996
RH:~~:kmb. ~F6,l-10396 (janstaff.wpd)
Counc~~ Meet~Lg: January 9, ~996
TO.
l:ayc'~ a:;td !-:errbers of the C1 ty Counc1l
FROH:
C::.ty Staff
SUBJEC'I': F::.nal p.._pprcva~ of Fl:nd1ng Ass1stance U:1Ger the
Mult1fam1ly ~ar~hqeake Repa1r Loan ~~~?~) Program for
Restorat1on c= 86 UL=-ts at 205 Wash=-ng~on Avenue
(Sovere1gn BUl~d1~g)
::ntrOdl:ct10::
Th1S repor:: ::-e;:;ommencis that the Cl ty l1anager be a:.: ::21or1 zed to
nege~late and execute f::'Lal lean docJments u~o~ f::.na~ approval of
a K~lt1fa~11y Earthquake ~epalr Loan (MERL) ?~ogram loan to The
SO'lere1gn Restorat1on ?artne::::-s Ltc,
The ~equest for fund1ng
aSS1s::ance by the OWLe~ of the 86-unlt multlfamlly property known
as ::he Scverelgn, locatec at 285 Washlngton Avenue,
:rom the MERL
Program 1~ the amount of $3,2:5,000 was conce~tually app~oved by
::ne Clty Cou!1cll c:: SepteF-~er 12, 1995, pe::dlng completlon of the
approprlate e~v::'::::-C~Le~tal ana~ysls. The envl::::-onmental a~alys=-s has
nOVi been sa'C::.sfactorlly comp~eted. It 15 the~efore recommended
::nat the C1ty COJnC1~ provlce f1nal approva~ of the S3,275,000 loan
reqc.est.
BackGrCLlnd
T~e M~RL Program was adopted by the C=-ty Councll on Febr~ary 21,
1995.
The ?rcgra:r establ~shes ::he frarre,,'Jcrk for Cl ty staff to
eva2. -.1 a ~e
~ca::1
appllcat=-O:l
requests
for
fULd=-Lg
0:::
mUltlfam(; N
1
JAN 0 9 1QQl;'
rehabll::. tat:.on a::1:i constructlon ::0 rep"-ace UDl ts da:[;aged or
:iestroyed by tl:e C::-2::1Uary 1;, 19 9~ Northrldge earL'1q'.lake. Susan
=onnally, re~resen::::'::1g the partnerS~lp that owns the Soverelgn,
appllec fo~ tl:e MERL ?rcgram ~oan.
The 86 U::1l::S of the Scverelgn
are =-::1 two bUlldlngs cf th~ee ard flve storles, ccmprls~ng
apP~oxlmately 75,000 square feet of :loor area. It has Deen
unlL~cblta~le Slnce the ear::hqua<e, Tce "-can funds wlll be utlllzed
fo~ ~eflnanclng of the prcperty, acq~lsl~lon and certaln ellg::.ble
proJe~t soft costs.
D::'S~USS10L
OL Septen~er 12,
1995
'- .
i...ne
=lty Counell ccnsldered all
aspects
of
tl:e ~oan ~equest from The Scvere::.gn Res::c~at1on Par~ners Ltc. and
approvec the s~c=f recommenced 10a::1 transac~lonl cO~::lnge::1t upon
complet::.on of appropr:.a~e env=-~orLffiental reVlew.
Slibsequent to the
aforeT2nt1cned Councl~ actlon the requlslte envlronmental reVl2W
was ccndl1cted.
1::15 pro=: ect lS exe:npt fro:L the ~2qulrere::ts of the Callfornla
EnVlron~ental Q~allty Ac~ (CEQA) pursuant to S~a::e CEQA GUldell~es
Sec::::.cn :'5302.
As a ~esu"-~ of state Offlce of H1storlC
?reserva~lon COLc~rrence that the ~e~abll~tatloD w~ll Dot have an
adverse effec:: O~ thlS l::.storlC property (see at::ached letter), ~~e
p~cJec:t
15
also
categor::.cally
excludeci
from the Natlonal
EnVlro~~ental ?OllCY Ac~ :X~FA; pursuaL~ to federal NSFA GJldel~Les
SeC~lon 24 CFR 58.35.
.
2
T~e appl~cant has agreed, ?urs~ant to concer~s expressed by L~e
HCLSlr.g CCIDmlSS10n, to ut:l~ze c~~ 86 ~r.~LS fer ITUlt1famlly hOUS1~g
fc~ a mln:~um of 10 years. W1t20Ut the appl1can~ agree1ng ~o tC1S,
the Se~tlement AgreemeLt otherw:se gover~lng use of the Soverelg0
tvOL:::'d allc;-{ 52 of the UDl ts to be des~gnated for hotel use.
Fl::al
approval for fundlng ::::e loan lS nm"l apprcpr:.ate because all
necessary
envlronme::,,,:::al
ana.:.yses
have
been
sat1sfactor1ly
co:rp=-e~ed.
ThlS act1C:: WOll_Q enSL~e the ~estoratlc~ 0= c
h:s::crlca~ly slgn1flcact strecture to
1tS orlglnal
s'ta'tus.
~~erefore, flnal ctDDroval of the ~oan WOL_Q result lrl 86 vacated
~~lts be:ng re::~~~ed to the hous~r.g stock, the opportunl:::y for
~lsplaced te~a::::s ::0 return to L~e1r unl::S and
22 urll ts be1ng
~eed-~es::rlcted :or 3J years :::0 hcuse~olds wl::h 1Dcomes no greater
::han 60% of ~ec:a~.
?lnanClal/ELc~etarv =rDact
Of t~e app~ox:~ately $33.4 mllllo~ In grant fun~s ava1la~le for
thlS
progra::-L/
the
C--n
- ---:l
has
deslgnated
$30/:::46/.:)00
for
lendlng
pU~~oses. Of thlS amount, $8/012,545 15 tc ~e compr1sed 0: Category
~I loa::s. C~r~enLly/ s:3,~45,997 of Lhe tota::' fends avallable fo~
leLd1ng ~ave bee~ CCrnID1ttec to o~~er spec1=lc proJects p~lor to
Clty Cc~ncl~ GeLlon OL ~2~S ma~::er. Category II proJects t~at ~ave
p~evlously been cODm1tted for =una~Lg a::-Lount to S~,252,OOO.
~herefore/ ~~:s ~oG~ request lS w1t21~ the budgetary parameters of
the ~ERL ?~og~am, The accouLt numbe~ for thls act1v1ty would be
3
~9-700-695-00000-4481-CC2JJ.
BeCOIIJITlencatlon
-'-
lS recommended that the C~~y COJ~Cl~:
;~; flnd that ~esto~a~lon
of the Sove~elq~ lS categorlcally excluded Lnde~ ~EPA and exempt
fraT ~he provlslons of C~QA, a~d (2; glve flnal approval to tee
lean req~est of $3,275,000 ~o I~e Sovere~g~ Restoratlor. Pa~tners
~td. and authc~~ze the Clty Manager to nego~late ar-d execute f1nal
loan 8.0cure:lts on the ~erms outllned ln the Sev~ern..')er 12, 1995
s~G=f report.
?reparec DY:
Je== ~athleL, ResCJrce ~ar.agement D1rector
Ke~~j M. Breskln, X~RL ?rogram Manager
r.ttacl:71er..t.
Letter c: DeceTI~er 15, 1995 frc~ the Offlce of
Hlstorlc 2reservat~on
4
SENT BY.Dect Parks & Recreat:o:i2-'5-35
16: 18
916653952.:t..
. ..
,.,
STATE Of CALIFORNIA -mE RESOURCES AG9ICY
PEiE WlLSOH, Go"lmOf
I
oFFlqe OF HISTORIC PRESERV A TlqN
DEPARTMENT OF PARKS AND RECREATION
p 0 BO~ ~2$~
SACRAMENTO 94296-0001
(918) ~24
FAX (gtO) ~-9tI24
(i
December 15, 1995
Reply To: HUD951215X
Mr. Jeffrey P. Mathieu, Director
Resource Management
Resource Management Department
Hous~ng and Redevelopment Dlvision
city of Santa Monica
612 Colorado AvenUe, suite l08A
Santa Monica c..Z\ 90401;
Re: CDBG/MERL Loan, s~vereign Hotel, Santa ~on~ca, CA
,
Dear Mr. ~a~h~eu:
The city of Santa ~onica (City) has determined that acquis~t~on
and ~ehabllitation (Under~aking) of the Sovere~gn Hotel, a
property determ~ned eligible for inclusion in the National
'Register of Hlstoric Places, will not adversely affect historic
prcper~ies. In its capacity as lead federal ~gency pursuant to 24
CFR 58, the city has requested my comments on this determination
in accordance with 36 CPR 80C, regulations i~plementing section
106 of the National Historic Preservation Ac~. Thank YOU ~or
consulting me in this ~atter. ~
As lead federal agency I for purposes of Section 106 compliance, L~e
Clty has also determined that the Area of Potential Effects (APE)
for the Undertaking lies entirely within the lot lines of the
parcel upon which the Sovereign nctel ~s situated and ~hat there
are no other historic properties within this APE. I do not object
to these findings.
The city's finding of Uno adve::-se effec~lI (36 CPR BOO.S[d]) is
'based on certain info~ation contained in Attachments A ~nd B to
its letter. These attachments ~ndicate that i= rehabilitation of
;the Soverelgn Hotel iSicar=ied out i~ accordance wi~h the SHPO/~PS
irecommendations conta~~ed therein, s~ch rehabilitation will mee~
Ithe nSecratary of t~e Ir.~erior 1 s Standards =or Rehabili tation11.
IThe city's le~ta~ states that Sovereign Resto~at~on Partners (SRP)
jhas agreed ~o implement the rehabilitation in accordance with
Ithese recommendations. w~t~ full knowledge of these
!recommendations and of SRPlg agreement theretoJ the city has
thereupon based its determination t~at the Undertaking will nee
adversely affect historic properties. Pursuant to section
:800.5(d} ((l) (i) or 36 CFR aoo, I concur in the City'S
determination that theiundertaking does not meet the "criter~a of
Adverse E::'fect' (36 eFT 800.9 (b]) .
!
I
I
~----
SE~T BY:Dept
I
I
!
i
ParKs & Recreatlo:12-i5-95
!
16: 1 8
9ia653982.d~
:: 2
Jeffrey Mathieu
December 15, 1995
Page T"....o
Sovereign Hotel
The C~tY.5 consideration of hlstoric properties early in the
planning process for this Undertaking is appreciated. If we can
be of further assistance to the parties in t~is matter, please
call Hans Kreutzberg at (916} 653-9107.
Sinperely,
0~~
~ C~erilyn E. Widell
I~' state Historlc Preservation Cf~~cer