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council Meeting: 06/15/93 Santa Monica, California'~~~
Parking Authority
RM:Housing:JM:JG:4thst202/stafrpt3
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
Development 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 of public
parking spaces and production of sixty-six (66) units of affordable
senior housing. This report also 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.
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
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JUN 1 5 :993
and City council approved in concept the development of sixty-seven
(67) units of affordable senior housing at the site. The concept
plan calls for at least the replacement of the existing 167 public
spaces, as well as provision of necessary tenant parking spaces.
A preliminary analysis of the site, given the zoning in the subject
area, appears to favor a subterranean parking structure, with the
residential units beginning at grade. The city Council & Parking
Authority also authorized City staff to prepare and issue a Request
for statement of Qualifications to select a project development
team.
In April 1989, the Parking Authority and City council approved the
selection of Retirement Housing Foundation (RHF), a non-profit
sponsor, who submitted an application to HUD for section 202
funding. The application was submitted in June 1989, but was not
awarded funding. The project was rejected for technical reasons
and was never evaluated on its merits.
In May 1991, staff again published a Request for Statement of
Qualifications (RFQ) in the newspaper. The announcement sought a
development team consisting of a non-profit 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
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Housing Foundation, and the other response was submitted by Jewish
Federation of Greater Los Angeles (JFC). staff reviewed the
submissions and recommended that the Council designate JFC as the
project sponsor. The Council approved this sponsor and authorized
the City Manager to execute an agreement with JFC for the sale of
air-rights above Parking Lot 4, pending their receipt of a section
202 funding award. JFC submitted this project proposal to Hun
which coincidentally reduced overall 202 program funding allocation
by thirty-two percent (32%) , due to a one-time change from a loan
to a grant program. The project's overall ranking was good and
probably would have been funded if not for the reduced allocation
level.
The application was also submitted in June 1992 and the project's
ranking was within one or two points of funding. The selected
developer, in discussions with HUD, has been encouraged to submit
an application for the 1993 funding cycle. The deadline to submit
applications for section 202 funds for this year is July 8, 1993.
DISCUSSION
Staff recommends that the Council designate JFC as the project
sponsor. An application submitted a third time to HUD by the same
sponsor has the benefit of familiarity, and shows a determination
and commitment by the sponsor and the city to produce this type of
affordable housing.
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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 nair-rights" projects in Beverly Hills (151 units) and Los
Angeles (50 units). Both projects incorporate the development of
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 additional HUD 202 projects, consisting of
an additional 322 units, which are under development.
The legal framework concerning site control must be established
prior to the July 8, 1993 application deadline in order to
demonstrate to HUD that the developer has adequate site control.
The legal framework requires 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.
This arrangement is similar to the manner by which the Third street
Senior housing project was able to demonstrate site control.
Staff has structured the financing plan for the project so that the
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proceeds from the sale of the air-rights will fund the replacement
of the current public parking spaces. The air-rights revenue will
also be available to pay the Parking Authority for meter revenue
which will be lost during the course of construction.
staff expects HUD to announce the Section 202 awards in late
September. 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 spring of 1995.
PUBLIC HEARING ON SALE OF AIR-RIGHTS
As required by code, a notice of public hearing was published in
the Outlook on June 5, 1993, 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 4.
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 non-profit developers; and
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3. ) Based upon review of developer qualif ications, the recollllllended
sponsor was determined to have assembled the most qualified
development team with experience in working with the HOO
Section 202 program
FINANCIAL/BUDGETARY IMPACT
No financial or budgetary action is required at this time. The
fair market value of the air-rights will be negotiated and received
following HUD program guidelines. The agreement is contingent upon
full funding of the project, and the air-rights will be sold at the
time of funding of the Section 202 grant.
RECOMMENDATIONS
Staff recommends that the Parking Authority and the City council
take the following actions:
Parkinq Authority Action
1.) Adopt a resolution transferring Parking Authority Lot 4 to the
city;
City Council Action
1.) Adopt a resolution acquiring and accepting the transfer of
parking Lot 4 from the Parking Authority;
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
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conclusion of this hearing, adopt a resolution authorizing the
sale of the air-rights to JFC;
3. ) Adopt a resolution authorizing the city Manager to negotiate
and execute an Option to Purchase with JFC for the exclusive
right to purchase the air-rights and develop the project;
Prepared by: Jeff Mathieu, Director
Johanna GUllick, Senior Development Analyst
Jim Kemper, Senior Development Analyst
Resource Management Department
Attachments:
L Resolution of the Parking Authority of the city of
Santa Monica Transferring Property of the parking
Authority to the city of Santa Monica
2. Resolution of the city Council of the City of Santa
Monica Transferring Property of the parking
Authority to the City of Santa Monica
3. 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
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RESOLUTION NO. 221 (P AS )
(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 15
the owner of certain real property located at 1116-46 Fourth Street
1n 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 mainta1nlng 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 Counc11 of
Greater Los Angeles ("JFCII), who will prepare an applicatl.on for a
United states Department of Housing And Urban Development ("HUD")
Sect10n 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 from the HUD
Section 202 program for purposes of constructing affordable seDlor
housing on the property;
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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Acting city Attorney
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Adopted and approved thlS 15th day of June, 1993.
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I hereby certify that the foregoing Resolution No. 221 (PAS)
was duly adopted by the Parklng Authorlty of the City of Santa
Monl.ca at a meetl.ng thereof held on June 15, 1993, by the
follow~ng Author~ty vote:
Ayes. Authority Members: Abdo, Genser, Holbrook, Olsen,
Rosenstein, Vazquez
Noes. Authorlty Members: None
Abstaln: Authorlty Members: None
Absent: Authorlty Members: Greenberg
ATTEST:
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RESOLUTION NO. 8598 (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
Fouri 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 alr-rights
over Parking Lot Four would be compatible with maintalning the
existing number of publlC parking spaces ln Parking Lot Four for
parking purposes; and
WHEREAS, the City of Santa Monica desires to sell the air-
rlghts above over the Property to the Jewish Federation Council of
Greater Los Angeles ("JFC"), who will prepare an application for a
United states Department of Housing And Urban Development (ItHUD" )
Section 202 grant to develop affordable senior houslng units in the
air-rlghts over Parking Lot Four; and
WHEREAS, pursuant to Streets and Highways Code section 32667,
the legislative body by two-thirds vote may adopt a resolutlon
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 acquire and
accept 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 from the HUD
section 202 program for purposes of constructing affordable senior
housing on the property;
SECTION 2. The City Clerk shall certify to the adoption of
th~s Resolution, and thenceforth and thereafter the same shall be
1n full force and effect.
APPROVED AS TO FORM:
~~
Joseph Lawrence
Acting city Attorney
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Adopted and approved this 15th day of June, 1993.
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VL Mayor
I hereby cert~fy that the forego~ng Resolution No. 8598(CCS}
was duly adopted by the City Council of the City of Santa Monica
at a meetJ..ng thereof held on June 15, 1993 by the followlng
Counc1l vote.
Ayes: Counc~lmembers: Abdo, Genser, Holbrook, Olsen,
Rosenstein, vazquez
Noes Councilmembers. None
Abstaln: Councilmembers None
Absent: Counc~lmernbers Greenberg
ATTEST:
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RESOLUTION NO. 8599 (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 "City") owns
certain real property located at 1116-46 Fourth street 1n the city
of Santa Monica, which is commonly known as parking Lot Four
(hereinafter "Property"); and
WHEREAS, Jewish Federation council of Greater Los Angeles
("JFCll) wlll submit an applicat.lon to the United States Department
of Housing and Urban Development ("HUD")given the location of such
property it .lS not economic to use such property solely for parklng
purposes; and
WHEREAS, the development of houslng units in the air-rights
over Parklng Lot Four would be compatlble with maintaln1ng the
eXlstlng number of public parklng spaces ln Parking Lot Four for
parklng purposes; and
WHEREAS, the Clty of Santa Monica desires to sell the air-
rights above over the Property to the Jewish Federation Council of
Greater Los Angeles ("JFC"), who will prepare an application for a
United States Department of Housing And Urban Development ( "HUD II )
Sectlon 202 grant to develop affordable senlor houslng 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 publlshed 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 6:30
p . m. on June 15, 1993 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 Monlca agrees to sell the
air-rights over the Property to JFC subject to:
A. JFC's receipt of a grant commitment from the HUD
Section 202 program for purposes of constructing affordable senior
housing on the property;
B. Compliance with the provisions of the California
EnVlronmental Quality Act.
C. Executlon of an agreement entitled option to
Purchase between the city and JFC.
SECTION 2. Municlpal Code Section 2.24.110 provides that
the sale of real property shall be by notice inviting blds 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-lng 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 ldentified the HUD Sect10n 202 grant program
as the most suitable source of fund1ng necessary ln order to
develop such housing, and this funding is ava1lable 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
Clty of Santa Monica and JFC regardlng the exclusive right to
purchase the alr-rights above Parklng Authority Lot 4, contlngent
upon JFC's recelpt of a HUD section 202 grant commitment.
SECTION 4. The City Clerk shall certify to the adoption of
thlS Resolution, and thenceforth and thereafter the same shall be
ln full force and effect.
APPROVED AS TO FORM:
~~~
seph Lawrence
Actlng City Attorney
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Adopted and approved thlS l5th day of June, 1993.
gt pJ,t
Mayor
I hereby cert~fy that the forego1ng Resolut~on No 8599(CCS)
was duly adopted by the Clty Council of the City of Santa Monlca
at a meetlng thereof held on June 15, 1993 by the following
CounCl1 vote'
Ayes. Councl1members: Abdo, Genser, Holbrook, Olsen,
Rosensteln, Vazquez
Noes Councl1members: None
Abstaln: Councilmembers: None
.A..bsent: Councllmembers: Greenberg
ATTEST:
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