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SR-CC/PA-2 (7) . ... . . . ~C/P,f-r3. SEP 1 0 i99J CDD:HD:NW:JK Santa Monica, California Parking Authority City Council: 09/10/91 TO: Mayor and city council Members Chairperson and Parking Authority Members FROM: City staff SUBJECT: Recommendations Regarding the Sale of Air-Rights Over Parking Authority Lot Four at 1116-46 Fourth Street to Jewish Federation Council of Greater Los Angeles for Developement of Senior Housing INTRODUCTION This report transmits information and recommendations regarding the selection of a sponsor organization to pursue redevelopment of Parking Authority Lot 4. The concept plan regarding redevelopment of Parking Authority Lot 4 calls for the replacement and possible increase of public parking spaces and production of sixty-six (66) units of affordable senior housing. This report recommends the adoption of Parking Authority and City Council resolutions which initiate the legal framework necessary for the project sponsor to begin the HUD section 202 application process. To be considered for HUD Section 202 funding, the applicant must be able to show adequate site control. Therefore, staff recommends that title to Parking Authority Lot 4 be transferred from the Parking Authority to the city of Santa Monica, and that the City enter into an Option Agreement with the project sponsor concerning the sale of air-rights and the redevelopment of the site, contingent upon their receipt of a HUD section 202 grant. 1 (!e/PIIf- ~ SEP 1 0 1991 - -- '- . In order to allow the proposed developer to submit a HOD Section 202 application, this report recommends the following Parking Authority and City council actions: Parkinq Authoritv Action 1. ) Adopt a resolution authorizing the transfer of Parking Authority Lot 4, contingent upon receipt of a HUD Section 202 grant commitment city council Action L) Adopt a resolution accepting the transfer of Parking Authority Lot 4 to the City, contingent upon receipt of a HUD Section 202 grant commitment; 2. ) Conduct a public hearing on the sale of air-rights above Parking Authority Lot 4 to Jewish Federation Council of Greater Los Angeles ("JFC"), a nonprofit corporation, and upon conclusion of this hearing, adopt a resolution authorizing the sale of the air-rights to JFC, contingent upon the receipt of a HUD Section 202 grant commitment; 3. ) Adopt a resolution authorizing the city Manager to negotiate and execute an option Agreement with JFC for the exclusive right to purchase the air-rights and develop the project, subject to award of a HUD Section 202 grant; 2 '" - BACKGROUND In 1988, the city council directed staff to analyze the feasibility of an affordable housing project utilizing the air-rights over Parking Authority Lot 4, located at 1116-1146 Fourth street between Wilshire Boulevard and California Avenue. At their joint meeting on February 28, 1989, the Parking Authority and City Council approved in concept the development of sixty-seven (67) units of affordable senior housing at the site, and authorized City staff to prepare and issue a Request for statement of Qualifi- cations to select a project development team. In April 1989, the Parking Authority and City Council approved the selection of a nonprofit sponsor who submitted an application to HOD for Section 202 funding. The application was submitted in June 1989, but was not awarded funding. RUD's previous rejection of the application was not based upon a review of the project's merits. staff believes that the project is competitive enough to receive an award of Section 202 funds if submitted during the 1991 funding cycle with modified option Agreement language. The deadline to submit new applications for Section 202 funds for this year is september 30, 1991. DISCUSSION The concept plan calls for at least the replacement of the existing 3 . - . one-hundred sixty-seven ( 167) public spaces, as well as the necessary tenant parking spaces. A prel iminary analysis of the site, given the recent zoning changes in the subject area, appears to favor a subterranean parking structure, with the residential units beginning at grade. In May, staff published a Request for statement of Qualifications (RFQ) in the newspaper. The announcement sought a development team consisting of a nonprofit developer, housing consultant, and an architect with the qualifications, financial capacity, and relevant experience to demonstrate the capacity to undertake a HUD section 202 housing project. Two ( 2 ) responses were received. One response came from Retirement Housing Foundation, and the other response was submitted by Jewish Federation of Greater Los Angeles ("JFC") . After review of the submissions, staff recommends that the Council designate JFC as the project sponsor. JFC's subsidiary organization, Menorah Housing Council, will serve as the project developer. The rest of the development team consists of Howard J. Katz, consultant, and Associated Architects. JFC has sponsored a number of HUD Section 202 projects for the elderly in the Los Angeles area. Specifically, JFC sponsored recent "air-rights" projects in Beverly Hills (151 units) and Los Angeles (50 units). Both projects incorporate the development of 4 affordable rental housing for the elderly above a publicly-owned parking structure. Menorah Housing Foundation currently manages four HUD section 202 senior housing projects in the Los Angeles area. They are also the managing agent for five HUD 202 projects, consisting of an additional 322 units, which are under development. NECESSARY ACTIONS & PROJECT TIMELINE This proposed affordable senior project is at a preliminary stage. However, the legal framework concerning site control must be established prior to the September 30, 1991 application deadline in order to demonstrate to HUD that the developer has adequate site control. The legal framework which is contemplated would require the parking Authority to transfer the site to the City, and the City to enter into an agreement to sell air-rights to JFC. Both actions should be conditioned upon JFC's securing a HUD section 202 grant commitment for this development in 1992. This arrangement is similar to the manner by which the Third street Senior housing project was able to demonstrate site control. Staff will be contracting with a consultant to structure a financing plan for the replacement of the current parking, utilizing the proceeds from the sale of the air-rights, plus the revenues from the replacement parking. As part of this process, staff will also look at the potential feasibility of adding spaces 5 to the present number which exists at the site. Staff expects HUD to announce the section 202 awards in late February. If the JFC proposal is awarded a funding commitment, staff will immediately proceed to work with the development team and the neighborhood on design and site planning. It is expected that the project could begin construction in late summer, 1993. PUBLIC HEARING ON SALE OF AIR-RIGHTS As required by code, a notice of public hearing was published in the Outlook on August 31, 1991, ten days prior to this hearing. The notice specified that a public hearing would be held on the proposed sale of air-rights above Parking Authority Lot Four. Staff recommends that the sale of air-rights without public bidding is in the best interest of the City for the following reasons, which are enumerated in the attached resolution: 1.) The development of rental housing for low income seniors is of benefit to the City of Santa Monica; 2. ) The HUD section 202 program is the most suitable source of funding for the development of such housing, and is available only to qualified nonprofit developers; and 3. } Based upon review of developer qualifications, the recommended sponsor was determined to have assembled the most qualified development team with experience in working with the HUD section 202 program 6 . FINANCIAL/BUDGETARY IMPACT No financial or budgetary action is required at this time. RECOMMENDATIONS Staff recommends that the Parking Authority and the city Council take the following actions: Parking Authoritv Action 1.) Adopt a resolution authorizing the transfer of Parking Authority Lot 4, contingent upon receipt of a HUD Section 202 grant commitment City council Action 1.) Adopt a resolution accepting the transfer of Parking Authority Lot 4 to the City, contingent upon receipt of a HUD Section 202 grant commitment~ 2. ) Conduct a public hearing on the sale of air-rights above Parking Authority Lot 4 to Jewish Federation Council of Greater Los Angeles ("JFC"), a non-profit corporation, and upon conclusion of this hearing, adopt a resolution authorizing the sale of the air-rights to JFC, contingent upon the receipt of a HUD section 202 grant commitment; 3. ) Adopt a resolution authorizing the city Manager to negotiate and execute an option Agreement with JFC for the exclusive 7 . - right to purchase the air-rights and develop the project, subject to award of the HUD section 202 grant Submitted by: Jim Kemper, Senior Development Analyst Nancy West, Housing Program Manager Community Development Department d:\4thwilsh\staffrpt 8 - ------ BEFORE DISTRIBUTION CHECK CONTENT OF ALL FOQ CITY CLERK'S ACTION DiST1\~BUTION OF RESOLUTION t/~.?jllt!'e ~ ORDINANCE J - , Council Meeting Date 9// CI /?r' Introduced: Agenda Item I e ~~_.:<. Adopted: . /V" . ALWAYS PUBLISH ADO?TED ORDINANCE~ 'Was it amended? Cross out Attorney's approval VOTE: Affirmative: 7--0 - Negative: Abstain: . Absent: PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING DISTRIBUTION: ORIGINAL to he signed, sealed and filed in Vault. NEWSPAPER PUBLICATION (Date: ) -- Department originating staff report( Laurie L~eberman) . , Ord~nances only for Attorney ( Claudia Thompson) ,2 Management Services Lynne Barrette ORDINANCES O~LY l' - Agency mentioned in document or staff report (certl.fl.ed?) Subject file (agenda packet) 1 Counter file 1 . .. Others: (Review for departments who need to know). Airport parJsing Auth. Auditorium Personp.el Building Dept. Planning C/ED~~. I Police Finan~ Purchasing General Serv. , , Rear/Parks Library Transportation Manager Treasurer Fire SEND FOUR COPIES OF ALL O~INANCES ~O: ~ CODED SYSTEMS 4 120 Main Street Avon, New Jersey 07717 SEND FOUR COPIES OF ALL ORDINANCES TO: 4 . Debra Myrick Santa Monica Municipal Court 1725 Main Street, Room 118 -.S Santa Monica, CA 90401 Total Copies "-- - ----- -'- - -- --- - ~....... -~ --- -- -- - -~- ....... ---..-... - - , j.......,--. .... ........,. _ ___r- -- - - - - BEFORE DISTRIBUTION CHECK CONTENT OF ALL FO~ CITY CLERK'S ACTIO~ DISTRIBUTION OF RESOLUTION i/J~~~~V ORDINANCE # Council Meeting Date 9 ~o If? Introduced: Agenda Item * tY r/A--.2_ Adopted: . fro ALWAYS PUBLISH ADO?TED ORDINANCEf Was it amended? Cross out Atto~ney's approva~ VOTE: Affirmative: ~/' ~r'-~' ~/ ,vtJ.;fM,.4.wr~ Neqative: Abstain: ,. . Absent: PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING DISTRIBUTION: ORIGINAL to he signed, sealed and filed in Vault. NEWSPAPER PUBLICATION (Date: ) -- Department originating staff report( Laurie L1eberman) # , ,2 Ord1nances only for Attorney ( Claud1a Thompson) Management Services Lynne Barrette ORDINANCES O~LY 1 - Agency mentioned in document or staff report (certif1ed?) SUbject file (agenda packet) 1 Counter file 1 . . ~ Others: (Review for departments who need to know) . Airport ,. ParlSing Auth. Auditorium Personnel Building Dept. Planning C!E9J7~ I Police Financ~ : Purchasing . General Serve Recr!Parks Library Transportation Manaqer Treasurer Fire SEND FOUR COPIES OF ALL ORDINANCES TO: ~ CODED SYSTEMS 4 120 Main Street Avon, New Jersey 077r7 SEND FOUR COPIES OF ALL ORDINANCES TO: 4 . Debra Myrick Santa Monica Municipal Court 1725 Main Street, Room 118 -3 Santa Monica, CA 90401 Total Copies -~- -- _____,0-_ - -. --- -- --.- ---....- -- - - -... --- -- ---- ,- - '- --~, --.: ,to..........,.. ....... - - - . I ~ , RESOLUTION NO. 217 (PAS) (parking Authority Series) RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF SANTA MONICA TRANSFERRING PROPERTY OF THE PARKING AUTHORITY TO THE CITY OF SANTA MONICA WHEREAS, the Parking Authority of the city of santa Monica is the owner of certain real property located at 1116-46 Fourth Street in the City of Santa Monica, which is commonly known as Parking Lot Four; and ~ WHEREAS, given the location of such property it is not - economic to use such property solely for parking purposes; and WHEREAS, the development of housing units in the air-rights over Parking Lot Four would be compatible with maintaining the existing number of public parking spaces in Parking Lot Four for parking purposes; and WHEREAS, th~ City of Santa Monica desires to sell the air- rights above over the Property to the Jewish Federation Council of Greater Los Angeles (uJFC"), who will prepare an application for a United States Department of Housing And Urban Development ("HUDU) Section 202 grant to develop affordable senior housing units in the air-rights over Parking Lot Four: and WHEREAS, pursuant to streets and Highways Code Section 32667, the legislative body by two-thirds vote may adopt a resolution transferring property of the Parking Authority to the city; and 1 . - --- , j \ WHEREAS, the transfer of such property does not contravene any covenant or agreement made with the holders of any bonds of the Parking Authority of the city of Santa Monica issued and outstanding, NOW, THEREFORE, THE PARKING AUTHORITY OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The Parking Authority of the City of Santa Monica shall transfer the property located at 1116-46 Fourth Street in the City of Santa Monica to the City of Santa Monica subject to: A. JFC's receipt of a grant commitment in 1992 from the HUD Section 202 program for purposes of constructing affordable senior housing: SECTION 2. The Executive Secretary shall certify to the - adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: --';".... A. :......... ~..."---.". ",:,"}l'l~ -~ Robert M. Myers city Attorney pkathres 2 . - ~- . \ . Adopted and approved this loth day of September, 1991. Ch~P~~ I hereby certify that the foregoing Resolution No. 217(PAS) was duly adopted by the Parking Authority of the City of Santa Monica at a meeting thereof held on September 10, 1991, by the following Authority vote: Ayes: Authority Members: Genser, Holbrook, Katz, Olsen, Vazquez, Zane, Chairperson Abdo Authority Members: - Noes: None Abstain: Authority Members: None Absent: Authority Members: None ATTEST: /~~6" d~ --- CLerk of Parking Authority . ~ . . RESOLUTION NO. 8284 (CCS) (City Council Series) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA TRANSFERRING PROPERTY OF THE PARKING AUTHORITY TO THE CITY OF SANTA MONICA WHEREAS, the Parking Authority of the City of Santa Monica is the owner of certain real property located at 1116-46 Fourth Street in the city of Santa Monica, which is commonly known as Parking Lot Four; and WHEREAS, given the location of such property it is not - economic to use such property solely for parking purposes; and WHEREAS, the development of housing units in the air-rights over Parking Lot Four would be compatible with maintaining the existing number of public parking spaces in Parking Lot Four for parking purposes; and WHEREAS, the City of Santa Monica desires to sell the air- rights above over the Property to the Jewish Federation Council of Greater Los Angeles ("JFCn), who will prepare an application for a United States Department of Housing And Urban Development ( nHUD" ) section 202 grant to develop affordable senior housing units in the air-rights over parking Lot Four; and WHEREAS, pursuant to streets and Highways Code Section 32667, the legislative body by two-thirds vote may adopt a resolution transferring property of the parking Authority to the City; and 1 . . ~ . WHEREAS, the transfer of such property does not contravene any covenant or agreement made with the holders of any bonds of the Parking Authority of the city of Santa Monica issued and outstanding, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City of santa Monica agrees to purchase and acquire and accepts the transfer of the real property located at 1116-46 Fourth Street from the Parking Authority of the city of Santa Monica subject to: A. JFC's receipt of a grant commitment in 1992 from the HUD Section 202 program for purposes of constructing affordable senior housing; - SECTION 2. The City Clerk shall certify to the adoption of this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: .- ....... ........... "---...-'" .... ~.i~ "'IiIf"~ Robert M. Myers city Attorney ccresol 2 . t , . Adopted and approved this lOth day of September, 1991. 9 Af/& Mayor I hereby certify that the foregoing Resolution No. 8284(CCS) was duly adopted by the City Council of the City of Santa Monica at a meeting thereof held on September lOth, 1991 by the following Council vote: Ayes: Councilmembers: Genser, Holbrook, Ka t z , Olsen, ~ Vazquez, Zane, Abdo Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: None ATTEST: , ~~rl2~ ci ty cler(il . . . RESOLUTION NO. 8285 (CCS) (City Council Series) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING AN AGREEMENT TO SELL AIR-RIGHTS OVER PROPERTY AT 1116-46 FOURTH STREET TO JEWISH FEDERATION COUNCIL OF GREATER LOS ANGELES WHEREAS, the City of Santa Monica (hereinafter "cityll) owns certain real property located at 1116-46 Fourth Street in the City of Santa Monica, which is commonly known as parking Lot Four (hereinafter "Propertytt); and WHEREAS, Jewish Federation council of Greater Los Angeles - (t'JFC") will submit an application to the United States Department of Housing and Urban Development ("HUD't)given the location of such property it is not economic to use such property solely for parking purposes; and WHEREAS, the development of housing units in the air-rights over Parking Lot Four would be compatible with maintaining the existing number of public parking spaces in Parking Lot Four for parking purposes; and WHEREAS, the city of Santa Monica desires to sell the air- rights above over the Property to the Jewish Federation Council of Greater Los Angeles (fIJFC"), who will prepare an application for a United States Department of Housing And urban Development ("HUD" ) Section 202 grant to develop affordable senior housing units in the air-rights over Parking Lot Four; and 1 . - ---- . WHEREAS, the City of Santa Monica has caused notice of intent to sell air-rights to be published in a local newspaper and posted notice on the Property providing information on the date and time of a public hearing; and WHEREAS, the city council has held a public hearing at 7:30 p.m. on September 10, 1991 to hear from the public on the proposed sale of air-rights. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. The City of Santa Monica agrees to sell the air-rights over the Property to JFC subject to: A. JFC's receipt of a grant commitment in 1992 from the HUD section 202 program for purposes of constructing affordable ~ senior housing; B. Compliance with the provisions of the California Environmental Quality Act. C. Execution of an agreement entitled option to Purchase between the City and JFC. SECTION 2. Municipal Code Section 2508A provides that the sale of real property shall be by notice inviting bids unless the City council finds that advertising for bids would not be in the best interests of the city. The City council finds that advertis- ing for bids would not be in the best interests of the city because: ( 1) The City has determined that the development or rental housing units for low income seniors is of benefit to the city of Santa Monica: 2 , (2) The City has identified the BUD section 202 grant program as the most suitable source of funding necessary in order to develop such housing, and this funding is available only to qualified nonprofit developers; and (3) The city has found JFC to be the most suitable and qualified nonprofit developer, with experience in working with the HUD section 202 grant program, to develop such housing in Santa Monica. SECTION 3. The city Manager is authorized to negotiate and to execute an agreement entitled Option to Purchase between the City of Santa Monica and JFC regarding the exclusive right to purchase the air-rights above Parking Authority Lot 4, contingent upon JFC's receipt of a HUD section 202 grant commitment. SECTION 4. The City Clerk shall certify to the adoption of - this Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ;,-~..;. ..-....p..-".,..--..A,.-...-Jf .:--.,---...... _~~-o.--~~....--y - Robert M. Myers City Attorney ccreso2 . 3 . . . ~ Adopted and approved this loth day of september, 1991. ~ ::::f I hereby certify that the foregoing Resolution No. 8285(CCS) 4 was duly adopted by the City Council of the City of s~ta Monica at a meeting thereof held on September lOth, 1991 by the following Council vote: Ayes: Councilmembers: Genser, Holbrook, Katz, Olsen, ~ Vazquez, Zane, Abdo Noes: Councilmernbers: None Abstain: Councilmernbers: None Absent: Councilmernbers: None ATTEST: C--~X A~ ~ ci ty Clerk / .