SR-CC/PA-2 (7)
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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.
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SEP 1 0 1991 -
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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;
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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
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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
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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
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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
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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
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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
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BEFORE DISTRIBUTION CHECK CONTENT OF ALL FOQ CITY CLERK'S ACTION
DiST1\~BUTION OF RESOLUTION t/~.?jllt!'e ~ ORDINANCE J -
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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
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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)
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Ord~nances only for Attorney ( Claudia Thompson) ,2
Management Services Lynne Barrette ORDINANCES O~LY l'
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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
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- , 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-_ - -. ---
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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
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WHEREAS, given the location of such property it is not
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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
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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:
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Robert M. Myers
city Attorney
pkathres
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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
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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
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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
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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;
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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:
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~.i~ "'IiIf"~
Robert M. Myers
city Attorney
ccresol
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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
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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
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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:
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(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
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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 /
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