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C/ED: HSG: NW: DA: (LINCASH\NEWTEAM)
Council Meeting: September 10, 1991
Santa Monica, Calif.
TO: Mayor and city Council
FROM: City Staff
SUBJECT: Recommendation to Approve the Designation of CP-Century
West and Volunteers of America for the Development and
ownership of 45 Units of Affordable Housing at 2827
Lincoln and 827-831 Ashland Avenue (Lincoln/Ashland
Project)
INTRODUCTION
This report presents recommendations regarding the selection of the
development team consisting of CP-Century West and Volunteers of
America for 45 units of affordable housing at 2827 Lincoln and 827-
831 Ashland Avenue. The report recommends that the City Council:
1) authorize the City Manager to negotiate and enter into a
Property Disposition Agreement with CP-Century West and Volunteers
of America for the development and ownership of 45 units of
affordable housing; 2) authorize the Mayor to execute a Resolution
for reassignment of the State Urban Predeve10pment Loan land; and
3) authorize the City Manager to reexecute all necessary state loan
documents.
BACKGROUND
The City currently holds title to the 65,000 square foot parcel
which is located at the northeast corner of Lincoln Boulevard and
Ashland Avenue in the Sunset Park neighborhood. The development of
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45 units will take place on the rear 49,000 square feet. The
project will consist of 14 one-bedroom units, 16 two-bedroom units,
14 three-bedroom units and one four-bedroom unit.
On October 9, 1990, the city council approved city acquisition of
the Lincoln/Ashland site. This approval included authorization for
the City Manager to enter into an interim loan agreement with the
state for an Urban Predeve10pment Loan to be used towards
acquisition. In addition, the City executed a Land Disposition
Agreement with community Corporation of Santa Monica (CCSM) to
develop the site.
On February 27, 1991 the project received a Notice Of Official
Action, securing its planning approvals and allowing the project to
proceed in two phases. The first phase, which is the subject of
this report, involves the development of the housing portion only.
The second phase is projected as an 1,800 square foot commercial
building. Due to the availability of residential financing and the
difficulty in securing commercial financing, the housing portion
must move ahead at a faster pace than the proposed commercial
portion. The staff will publish a Request for Proposals in the
next 90 days to address the development of the commercial portion
of this site.
On May 24, 1991, the City chose not to extend the Land Disposition
Agreement with CCSM and assumed short-term responsibility for the
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project. On July 22, 1991 the City staff published a Request for
Qualifications (RFQ) to solicit a new development team to proceed
with the project exactly as planned, combine the necessary
financing, and assume the ownership responsibilities upon
completion.
On August 23, 1991 the state approved the full assignment of its
Urban Predevelopment Loan from Community corporation of Santa
Monica to the City. This assignment is necessary in order to
retain the $923,000 loan, which was used to assist in paying for
site acquisition. The state has required that the City Council
formally adopt the attached resolution to evidence the city's
agreement to accept the full assignment.
DEVELOPER / OWNER I MANAGEMENT QUALIFICATIONS
The city received applications from four strong development teams
in response to the Request for Qualifications. CCSM chose not to
submit an application. The stated criteria for selection included
the following;
1. Demonstrated ability and experience of the applicant in
managing limited partnerships, with a non-profit general
partner.
2. Demonstrated ability and experience of the applicant and
any related consultants or subcontractors in managing
affordable housing.
3. Demonstrated ability and experience of the applicant in
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securing affordable housing financing.
4. Financial capacity of the project owner including the past
financial history and current outlook.
5. Ability of the applicant to successfully manage the
development and partnership within the financial package
outlined in the RFQ.
6. Ability of the applicant to successfully complete the
project in the time frame outlined in the RFQ.
In addition, the city staff met with each prospective applicant to
discuss the project and to ascertain more detail about the proposed
development team and their ability to move the project ahead.
CP-CENTURY WEST AND VOLUNTEERS OF AMERICA
After much consideration as well as discussion with other lenders
involved in this project, the staff is recommending the development
team of CP-Century West and Volunteers of America. They provide
the combined expertise of an experienced development and
construction company along with the strength of a nationwide
nonprofit developer and owner of affordable housing.
The enti ties that make up CP-Century West have developed and
constructed more than 100 apartment complexes in Southern
California and Texas and have managed over 100 real estate
syndications, joint ventures and limited partnerships. Volunteers
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of America currently owns and manages 8,725 affordable housing
units throughout the country, with approximately 30 million dollars
raised in tax credit equity towards the production of 13
multifamily projects.
Volunteers of America have provided financial statements for three
consecutive years, exhibiting prudent levels of reserves and sound
fiscal management. In addition, each partner in the team has
adequate time to allocate immediately to this project.
Both Century West and Volunteers of America have extensive multi-
family residential management experience. Volunteers of America
specifically has more than twenty years of property management
experience in affordable housing, including a systematic method of
computerized monthly financial reports generated from their
national office for each of its properties nationwide. This
centralized approach, combined with an on-site manager, ensures a
well maintained and efficiently run property. The specific
allocation of property management responsibilities will be
determined by CP-Century West and VOA.
FINANCIAL/BUDGETARY IMPACT
No financial or budgetary action is required at this time. A
Program loan from the Citywide Housing Trust Fund was approved for
this project on December 12, 1989.
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RECOMMENDATIONS
It is recommended that the city Council:
1. Designate the team of CP-Century West and Volunteers of America
as the developer for 45 new units of affordable housing at 2827
Lincoln Boulevard and 827-831 Ashland Avenue and authorize the city
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Manager to negotiate and enter into a Property Disposition
Agreement along the lines outlined in this report, with CP-Century
West, to develop 45 units of affordable housing.
2. Authorize the city Mayor to execute a Resolution to Borrow from
the state Urban Predevelopment Loan Program.
3. Authorize the City Manager to reexecute all necessary state loan
documents.
Prepared by: Nancy West, Housing Program Manager
Denise Altay, Senior Development Analyst
Community Development Department
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BEFORE DISTRIBUTION CHECK CONTENT OF ALL
DISTRIBUTION OF RESOLUTION # J'd) q ~
/
Council r4eeting Date '7po.{c;'/
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Was it amended "1 _ N ()
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FO~ CITY CLERK,' S ACTION
ORDINANCE *
Introduced:
Agenda Item *
Adopted:
ALWAYS PUBLISH ADO?TED ORDINANCEf
Cross out Attorney's approva~
VOTE: Affirm~tive:
Negative:
Abstain: .
Absent: p,~
PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING
pISTRIBUTION: ORIGINAL to he signed, sealed and filed in Vault.
NEWSPAPER PUBLICATION (Date: )
Department originating staff report( Laurie L~eberman}
, .
Ord~nance5 only for Attorney { Claud~a Thompson}
Management Services Lynne Barrette ORDINANCES ON~Y
Agency mentioned in document or staff report
(certified?)
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Subject file (agenda packe~l
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Counter file
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Others: (Review for
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Building Dept.
C EO /YlPfrty ~
departl'iter. t 'E5 "-~l-;' 'l€ P~j ~_O
parJsing Auth.
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blOW) .
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SEND FOUR COPIES OF ALL ORDINANCES ~O:
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SEND FOUR COPIES OF ALL ORDINANCES TO: 4
Debra Myrick
Santa Monica Municipal Court
1725 Main Street, Room 118
Santa Monica, CA 90401 Total Copies -:3
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CED:DA:jld637jhpcjpc
City council Meeting 9-10-91
Santa Monica, California
RESOLUTION NUMBER 8294(CC5)
(City council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AUTHORIZING THE CITY MANAGER
TO ENTER INTO AN AGREEMENT TO SECURE A HOUSING
PREDEVELOPMENT OR LAND PURCHASE LOAN FROM THE STATE OF
CALIFORNIA FOR THE PURPOSES OF DEVELOPING 45 UNITS OF
AFFORDABLE HOUSING AT 827-831 ASHLAND AVENUE
WHEREAS, the city of Santa Monica, California (hereinafter
referred to as the "city"), is a public entity established under
the laws of California and empowered to own property, borrow
money, and give security for loans; and
WHEREAS, the California Department of Housing and Community
Development
(hereinafter referred to as the nstaten)
is
authorized to make loans for the production of affordable housing
for low-income persons; and
WHEREAS, the City wishes to obtain from the state a housing
predeveloprnent or land purchase loan for the development of such
housing,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Manager, or his or her designee, is
hereby authorized to enter into a loan agreement with the state
in an amount not to exceed Nine Hundred Twenty-Three Thousand
Dollars ($923,000.00) for the purposes of developing 45 units of
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affordable housing at 827-831 Ashland Avenue, Santa Monica,
california, and to execute security and other instruments
necessary or required by the State to evidence and secure the
agreement.
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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ROBERT M. MYERS
City Attorney
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Adopted and approved this loth day of September, 1991.
~:!d
I hereby certify that the foregoing Resolution No. 8294(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: Councilmernbers: Genser, Holbrook, Olsen, Vazquez, -
Zane, Abdo
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: Katz
ATTEST:
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ci y Clerk