SR-407-005-02 (4)
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CC/PL I
MAY 2 3 1989
CjED:HD:CR:baw
Parking Authority
city Council: 5/23/89
Santa Monica, California
To:
Mayor and city Council Members
Chairperson and parking Authority Members
Subject:
city staff
Recommendations Regarding the Sale of Air Rights Over
parking Lot Four at 1116-46 Fourth street to Retirement
Housing Foundation for Development of Senior Housing
From:
INTRODUCTION
This report transmits information and recommendations regarding
the sale of air rights over parking Authority Lot 4 located at
1116-46 Fourth street. The report recommends that the parking
Authority adopt a resolution authorizing the transfer of Parking
Lot 4 to the city, upon receipt of a U.S. Department of Housing
and Urban Development (HUD) Section 202 loan commitment and upon
a determination by the City Council that the desired public
parking facility for the site can be constructed in conjunction
with the senior housing.
The report also recommends that the
City Council:
(1) adopt a resolution transferring Parking Lot 4
from the Parking Authority to the city, contingent upon the
receipt of the HUD section 202 loan commitment and city Council
determination that the desired parking facility can be
constructed with the senior housing; and (2) adopt a resolution
authorizing the sale of the air rights to Retirement Housing
Foundation (RHF) and to negotiate and execute an option Agreement
subject to award of the Section 202 loan and city Council
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approval of construction of the desired public parking facility
for the site in conjunction with the proposed project.
BACKGROUND
On February 28, 1989, the parking Authority and city Council
approved in concept the development of affordable senior housing
utilizing the air rights over Parking Authority Lot 4, located at
Fourth and Wilshire. The project proposes the use of HUD Section
202 loan program funds to develop sixty-seven (67) units of
senior housing, including the manager's unit, at the site. The
city council authorized staff to prepare and issue a Request for
statement of Qualifications to select a project development team.
On March 29, 1989, the City council approved the selection of the
development team of Retirement Housing Foundation, non-profit
sponsor, Phillips Consulting, housing consultants, and Bahr
Vermeer and Haecker, architects, to prepare an application for
the proposed Section 202 senior housing project on the Fourth and
WilShire site.
The Parking Authority authorized the Authority Attorney to
prepare the necessary resolutions and notice of intent to sell
the air rights over Parking Lot Four to RHF contingent upon the
receipt of a funding commitment from HUD under the section 202
program, determination that the desired parking facility for the
site can be constructed in conjunction with the senior housing,
completion of required environmental analyses, and execution of a
Development and Disposition Agreement.
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At city Council direction, City staff is currently working with
Kaku Associates, parking and traffic consultants, to determine
the need and feasibility of increasing the number of public
parking spaces in conjunction with developing senior housing at
the site. This includes an analysis of current and future
parking demand in the area served by the parking lot, an analysis
of the site constraints in constructing a facility to accommodate
identified needs and an economic feasibility analysis. City
staff will make recommendations to the City Council regarding the
pUblic parking component of the project in July 1989.
In addition, City staff has begun to meet with members of the
community to inform the residents of the status of the project.
Upon receipt of a Section 202 funding commitment, the design
process will begin. This process will include meetings with
neighborhood residents regarding project design.
The following tirneline outlines the next steps in the process of
obtaining a HUD Section 202 loan commitment and project design.
The schedule reflects the time required by Kaku Associates to
complete the parking demand analysis.
1) May 23, 1989 - Recommendations to City Council to: 1)
adopt resolution regarding the transfer of the Fourth
street property to the City; 2) hold a public hearing
regarding the proposed sale of air rights; 3) adopt
resolution authorizing the sale of air rights to RHF
contingent upon receipt of a Section 202 loan
commitment; and 4) authorize the City Manager to execute
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an Option Agreement for the purchase of the air rights,
contingent upon receipt of a section 202 loan
commitment. Recommendation to Parking Authority to
adopt resolution regarding the transfer of the Fourth
street property to the City. Information on City funds
required for project cost not covered by the HUD loan.
2) June 15, 1989 Development team submits
application to HUD for Section 202 loan funds.
loan
3) JUly 1989 Information and recommendations to City
Council regarding the need for additional public parking
at the site.
4) August 1989 - Begin environmental review required by
California Environmental Quality Act.
5) September 1989 - HUD Notice of Award of Section 202 loan
funds.
6) October 1989 - June 1990 - Project design and approval
process.
The following describes the requirements for submittal of a loan
application, including the amount of City funds required for
project amenities not covered by the HUD loan.
DISCUSSION
The non-profit sponsor must submit evidence of site control when
applying for HUD Section 202 Loan Program funds. In order to
grant site control to Retirement Housing Foundation, the Parking
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Authority and City must transfer the property to the City, the
City Council must hold a public hearing on the proposed sale of
air rights, and the City and RHF must negotiate and execute an
Option Agreement which provides RHF the exclusive right to
purchase the air rights for the proposed proj ect. The Ci ty
Council and Parking Authority performed these same steps for the
Third street senior housing project.
The following describes this process in detail and discusses the
estimated maximum amount of City funds required for project costs
the Section 202 loan program may not fund.
Granting of Site Control
The HUD section 202 Loan Program requires that RHF submit
evidence of site control through an option Agreement to purchase
the property with the HUD application. It is necessary for the
city to enter into an Option Agreement with RHF, which provides
RHF with the exclusive right to purchase the air rights for the
development of senior housing under the section 202 Loan Program
on the site. In response to City Council direction, the Option
Agreement is contingent upon receipt of a section 202 loan
commitment and a determination that the desired pUblic parking
facility can feasibly be constructed with the senior housing
project.
Transfer of Title
The title to Parking Lot Four is currently held by the Parking
Authority of the city of Santa Monica. parking Authority law
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prevents the Parking Authority from using property or revenues
for non-parking purposes. However, the city is not restricted in
this manner. Under Highways Code Section 32667, the legislative
body by two-thirds vote may adopt a resolution transferring
property of the Parking Authority to the city. Therefore it is
recommended that both the city Council and Parking Authority
adopt the attached resolutions authorizing transfer of property,
subject to the receipt of a HUD Section 202 loan commitment for
the senior housing project.
In order to ensure that there is no fiscal impact of the transfer
of Parking Lot Four to the Parking Authority Fund it will be
necessary for the Ci ty and Parking Authority to enter into a
Payment Agreement that provides for an annual payment of revenues
collected from the pUblic parking meters by the city to be paid
to the Parking Authority. Upon RHF's receipt of a HUD Section
202 loan commitment staff will return for approval to execute
such a Payment Agreement.
Public Hearing
The Municipal Code Section 2508A, as amended by Ordinance No.
1125 (CCS) requires that the City hold a public hearing prior to
the sale of property held by the city. A notice was published in
the Outlook on May 12th and 19th, as required by the Municipal
Code, specifying that a pUblic hearing would be held on the
proposed sale of air rights over Parking Lot Four to RHF. six
notices were also posted at the site. In addition, the Municipal
Code allows for the sale of real property without public bidding
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if it is in the best interests of the city. Due to the
experience of RHF in successfully obtaining HUD section 202 loan
commitments, and in developing and managing senior housing, the
attached resolution finds that is is in the best interests of the
city to provide RHF with an exclusive option to purchase the air
rights of the property.
City Funds
The HUD 202 program regulations prohibit the use of funds for
items such as structured parking, building articulation,
balconies, or other design amenities. By covering the cost of
ineligible items, a locality strengthens the chances of receiving
a HUD section 202 loan commitment and produces a more functional
and attractive project. Exhibit 1 details the costs not covered
in the HUD 202 loan. It is anticipated that the difference
between the HUD approved costs and the total project costs would
be approximately $1,963,203, however, the City will receive funds
from the sale of the air rights. It is proposed that these funds
be applied towards the costs not included in the Section 202
loan. It is anticipated that the city would have to provide
funds in excess of the sale proceeds to the proj ect, in the
amount not to exceed $1,163,203 or approximately $17,624 per
uni t. Funds are currently available for this proj ect in the
citywide Housing Trust Fund.
In additon, the City will encumber funds for architectural and
engineering expenses incurred prior to receipt of Section 202
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funds. The developer will reimburse the city for eligible costs
upon funding of the section 202 loan.
NEXT STEPS
The City Manager will negotiate and execute an Option Agreement
with RHF for the sale of the air rights over the Fourth Street
property to be submitted with the application for Section 202
funds due June 15, 1989.
City staff will return to the City council with recommendations
regarding the public need for additional public parking spaces
and the economic and physical feasibility of constructing a
facility to meet those needs in July 1989. This will provide the
city council with the opportunity to choose not to proceed with
the proposed project prior to a Section 202 loan program award.
In addition, City staff will begin the environmental review
process required by the California Environmental Quality Act, in
August 1989.
Upon award of a Section 202 loan commitment, RHF will submit the
proj ect to the Planning Commission , Architectural Review Board
and Coastal Commission for review and approval. In addition, RHF
will work with the North of wilshire Residents neighborhood
organization during the project design and approval process.
FINANCIAL/BUDGETARY IMPACTS
A maximum of $1,163,203 will need to be committed to this project
for costs which may not be covered by the HUD section 202 program
loan. Funds from the Citywide Housing Trust Fund are currently
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available. After receipt of a section 202 loan commitment,
$500,000 will be committed from account #01-720-264-146-961 and
$663,203 will be committed from account #01-720-264-145-961.
RECOMMENDATIONS
It is recommended that the city council:
1) Adopt the attach,ed resolution which authorizes the transfer
of property at 1116-46 Fourth street owned by the Parking
Authority to the city, subject to the conditions stated~
2) Hold a public hearing on the proposed sale, waiving public
bidding requirements, of the air rights of Parking Lot Four
to RHF for the development of senior housing;
3) Adopt the attached resolution authorizing the sale of the air
rights to RHF, subject to RHF's receipt of a Section 202 loan
commitment, determination that the desired parking facility
for the site can be constructed in conjunction with the
senior housing, compliance with the California Environmental
Quality Act, and execution of a Development and Disposition
Agreement;
4) Authorize the City Manager to negotiate and execute an option
Agreement, which provides RHF the exclusive right to purchase
the air-rights of Parking Lot Four for the development of
senior housing.
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It is recommended that the Parking Authority:
1) Adopt the attached resolution which authorizes the transfer
of property at 1116-46 Fourth street by the Parking Authority
to the City, subject to RHF's receipt of a Section 202 loan
commitment.
Prepared by: Carol Anderson, Housing Analyst
Candy Rupp, Housing Program Manager
Community and Economic Development
:staff4th
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EXHIBIT l:
I
PROJECTED COST SUMMARY SECTION 202 LOAN
Comparison of Development Cost and Maximum HUO 202
Loan
DEVELOPMENT COSTS NOT INCLUDED IN 202 LOAN
Parking structure
Elevator - Two additional
floors with lobby
Trash Chute - Two additonal
floors and room
Off Site utilities
Landscaping
Facade Improvements
Parking Meters
Off-site costs
Architect & Engineers Fee
Contingency & Inflation (on above)
TOTAL NON-HUD COSTS
MAXIMUM HUD 202 LOAN:
Construction Costs
Construction Contingency
Financing Costs
Construction Interest
Taxes
Insurance
Title and Recording
Legal
Organizational
Audit
Consultant Fee
Management Fee
Land Cost
$310,403
$ 5,000
$ 20,000
$ 15,000
TOTAL HUD COSTS
TOTAL PROJECT COST
SOURCES OF FUNDS
HUD 202 LOAN
CITY LAND SALE PROCEEDS
CITYWIDE HOUSING TRUST FUND
TOTAL FUNDS AVAILABLE
$1,381,950
$ 28,000
$ 5,000
$ 10,000
$ 4,000
$ 126,185
$ 52,000
$ 100,000
$ 106,068
$ 150,000
$1,963,203
$2,805,000
$ 84,776
$ 350,403
$ 9,000
$ 2,000
$ 5,000
$ 40,000
$ 6,600
$ aoo,ooo
$4,102,779
$6,065,982
$4,102,779
$ aoo,ooo
$1,163,203 ($l7,624/unit)
$6,065,982
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SUPPLEMENTAL I~ITE~ CC!PA-l~
<-~A---P / D--:_ k-J.!>
5//1 /~1 r0L0
C/ED:HD:CA
SUPPLEMENTAL INFORMATION: May 19, 1989
Santa Monica, California
TO:
Mayor and City council Members
Chairperson and Parking Authority Members
FROM:
City staff
SUBJECT:
Resolutions Accompanying Staff Report CC/PA-1
"Recommendations Regarding the Sale of Air Rights
Over Parking Lot Four at 1116-46 Fourth Street to
Retirement Housing Foundation for Development of
Senior Housing"
This report transmits three resolutions which have been approved
as to form for the May 23, 1989, city Council meeting item CCjPA-
1. These resolutions replace the resolutions transmitted on May
16, 1989 attached to the staff report for the CC/PA-1 item. Two
of the resolutions contain minor revisions to include language
which was inadvertently omitted in the copies included with the
staff report.
standard language required in all resolutions transferring
Parking Authority property to the city and has been included as
the second paragraph on the first page of the revised
resolutions.
Prepared By:
Carol Anderson, Housing Analyst
Candy Rupp, Housing Program Manager
Department of community and Economic Development
:info4th
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SANTA MONICA-MALIBU UNIFIED SCHOOL DISTRICT
Department of pupil/Administrative Services
1988-1989
Based on the student ~acia1 and ~thnic ~urvev - Fall 1988. the
following chart indicates the status of the .1istrict regarding
segregated schools. in danger of becoming segregated schools ·
and racially isolated schools.
BASED UPON THE ELEMENTARY SCHOOLS MINORITY ENROLLMENT AVERAGE
OF 45.5%
Minority segregated In Danger Racially
school percentage (+20%) (15-19%) Isolated
(-20%) ~
Edison 88.;: Sea
franklin
9rant 25. ';
43.8:
~c~inlev 70:0; Sea
MU1r 65 4i IO
Faaers 66:51> Sea =
Foosevelt 32.2%
webster 17.3; RI ~
Malibu Park 19.4 RI
BASED UPON THE MIDDLE SCHOOLS MINORITY ENROLLMENT AVERAGE
OF 42.6% ~
=
John Adams
Lincoln
Ma11bu Park
61. 0:
42.3",
17.0%
IO
RI
seg - segregated
ID - In Danger
RI Racially Isolated
BOARD OF EDUCATION ACTION 6/23/84
ANY SCHOOL WHICH HAS A MINORITY STUDENT POPULATION OF 20
PERCENTAGE POINTS OR MORE ABOVE THE DISTRICT AVERAGE IN ITS
RESPECTIVE CATEGORY OF ELEMENTARY SCHOOL OR MIDDLE SCHOOL,
MAY BE CONSIDERED SEGREGATEO.
ANY ELEMENTARY OR MIDDLE SCHOOL THAT IS 1.5-1.9 PERCENTAGE
POINTS ABOVE THE ELEMENTARY SCHOOL OR MIDDLE SCHOOL MINORITY
ENROLLMENT AVERAGE, MAY BE DEFINED AS XN DANGER OF BECOMIN~
SEGREGATED.
ANY ELEMENTARY OR MIDDLE SCHOOL THAT IS 20 PERCENTAGE POINTS
~ELOW THE ELEMENTARY SCHOOL OR HIDDLE SCHOOL MINORITY
ENROLLMENT AVERAGE, MAY BE DEFINED AS BbCIALL'l lSOLATEQ.
II A"
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Elementary Schools
Segregated:
In Danger:
Racially Isolated:
Middle Schools
Segregated:
In Danger:
Racially Isolated:
.
65.5% - 100% minority enrollment
60.5% - 64.5% minority enrollment
o - 25.5% minority enrollment
62.6% - 100% minority enrollment
57.6% - 61.6% minority enrollment
o - 24.9% minority enrollment
"
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INVENTORY OF AFFORDABLE HOUSING AS OF 9/28/88
PROGRAM/ADDRESS
NUMBER OF UNITS
YEAR BUILT
Family Elderly Total
1. section 8 Housing Assistance Payments Program
citywide
225
323
548
N/A
2. FHA/HUD-insured privately Owned projects
westminster Towers
1112 7th Street
Santa Monica, 90402
o
285
285
1969
Santa Monica Towers
1233 6th street
Santa Monica, 90401
o
150
150
1964
Geneva Plaza
1441 21st street
Santa Monica, 90404
o
100
100
1979
Neilson Villas
3100 Neilson Way
Santa Monica, 90405
o
100
100
1977
Subtotal
635
3. Section 8/Section 202 New Construction
Barnard Park Villas
3356 Barnard Way
Santa Monica, 90405
o
61
61
1981
Ocean Park Villas
2019 5th street
Santa Monica, 90405
24
o
24
1982
Santa Monica RHF Housing
1121 3rd street 72
o
72
1990
Subtotal
156
4. Public Housing
175 Ocean Park Blvd.
Santa Monica, 90405
12
10
22
1985
1901-09 11th street
Santa Monica
19
o
19
1988
Subtotal
41
IIBII
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.-.~ , PROGRAM/ADDRESS
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--
NUMBER OF UNITS
YEAR BUILT
Family Elderly Total
=-
5. Development Agreement or Inc1usionary (completed)
Colorado Place
1855 9th street 11
1450 14th street 19
2006 20th Street 11
2407 4th Street 8
o
o
o
2
11
19
11
10
1982
1982
1982
19B7
paseo del Mar
1541-1551 Ocean Avenue 10
o
10
1984
cecil Gale
1027 11th street
1
o
1
1984
Inclusionary (In Market-Rate Developments)
1007 5th st. 1 1985
1027 11th st. 1 1984
1418 14th st. 2 1985
1827 12th st. 1 1986
2456 Arizona 1 1986
911 5th st. 1 1987
2624 5th st. 1 1987
1239 9th st. 1 1987
1818 19th st. 1 1987
2502 28th st. J 1987
1941 Euclid 1 1986
3203 Nebraska 1 1987
1314 14th st. 3 1987
924 3rd st. 3 1987
1236 21st st. 1 1987
922-924 Lincoln 1 1987
1111 Washington 1 1986
926 2nd st. 4 1987
937 loth st. 2 1988
1535 18th st. 2 1988
1904 11th st. 2 198B
1934 18th st. 2 1988
2918 Arizona Ave. 2
Subtotal 100
6. Community corporation of Santa Monica (Non-profit ownership)
2017-2023 20th street
12
'*
12 - R
1983
724 Pacific Avenue
B
'*
8 - R
1984
2525-33 Kansas Avenue
20
*
20 - R
1984
2625 Kansas Avenue
16
*
16 - R
1984
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I'~>'.' "1:' ROGRAM/ADDRESS
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NUMBER OF UNITS
Family Elderly Total
1959 C10verfield Avenue 62
community corporation of Santa Monica (conto.)
62 - R
1843 17th street
2302 5th street
1629 Michigan Avenue
1937 18th street
1827 19th street
1808 17th Street
Ocean Park 12
1917 17th street
1943 17th street
1314 18th street
14.27 Berkeley
Ocean Park 43 Coop
2121 Arizona Ave
3 Vicente Terrace
2009-15 Cloverfield
2020-28 Cloverfield
1747 15th street
1544 Berkeley
1423 2nd street
2700-2900 Neilson Way
Subtotal
12
10
25
lO
32
11
28
49
378
*
8
8 - R
7. Other Non-profit Developments (City-Assisted)
Alternative Living for
the Aqing
2323 4th Street
*
5
5 - R
..
4
4
*
6
6
..
6
*
6
6
6
*
4
12
B
7
7 - R
..
7
*
7 - R
6
6
..
7
7
*
29
43
*
10
*
25 - R
..
lO - R
..
32 - R
..
11
7
7
..
..
28
..
49
29
407
o
6
6
.
YEAR BUILT
1985
1985
1986
1986
1986
1986
1986
1987
1987
1987
19B8
1988
est. 1988
est. 1988
est. 1989
1988
est. 1989
1
I
i
I
J
est. 1989
est. 1989
est. 1989
est. 1990
1988
.
.
-~- 8. p~co Neighborhood Rehabilitation Grant program (Hinor Repairs)
ESF
~y
P1ca Neighborhood
1983-1985
230 - R
NOTES: * - CCSM units are primarily occupied by families, but may
also be occupied by elderly tenants.
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C/ED:HD:CA
SUPPLEMENTAL INFORMATION: May 19, 1989
Santa Monica, California
TO:
Mayor and City Council Members
Chairperson and Parking Authority Members
FROM:
city Staff
Resolutions Accompanying staff Report CC/PA-1
"Recommendations Regarding the Sale of Air Rights
OVer Parking Lot Four at 1116-46 Fourth Street to
Retirement Housing Foundation for Development of
Senior Housing"
SUBJECT:
This report transmits three resolutions which have been approved
as to form for the May 23, 1989, city council meeting item CC/PA-
l. These resolutions replace the resolutions transmitted on May
16, 1989 attached to the staff report for the CC/PA-l item. Two
of the resolutions contain minor revisions to include language
which was inadvertently omitted in the copies included with the
staff report.
standard language required in all resolutions transferring
Parking Authority property to the city and has been included as
the second paragraph on the first page of the revised
resolutions.
prepared By:
Carol Anderson, Housing Analyst
Candy Rupp, Housing Program Manager
Department of community and Economic Development
:info4th
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RESOLUTION NO.
(PAS)
(PARKING AUTHORITY SERIES)
A RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF SANTA
MONICA TRANSFERRING PROPERTY OF THE PARKING AUTHORITY TO THE
CITY
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~ 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 the property would be compatible with maintaining at least
the existing number of public parking spaces for parking
purposes; and
WHEREAS, the City of Santa Monica desires to sell the air
rights over the property to the Retirement Housing Foundation
(flRHF") for purposes of developing senior housing under the U.S.
Department of Housing and Urban Development section 202/8
Program; 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
WHEREAS, the transfer of such property does not contravene
any covenant or agreement made with the holders of any bonds of
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the Parking Author i ty 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. Upon the approval of the RHF's application for
loan funds for the development of senior housing under the U.S.
Department of Housing and Urban Development Section 202/8
Program, and upon a determination by the City Council that the
desired public parking facility for the site can be constructed
in conjunction with the senior housing, the property located at
1116-46 Fourth Street in the City of Santa Monica shall be
transferred from the Parking Authority of the City of Santa
Monica to the City of Santa Monica.
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:
~~.~
Robert M. Myers
City Attorney
:reso4th3
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RESOLUTION NO.
.
(CCS)
11
(CITY COUNCIL SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA
TRANSFERRING PROPERTY OF THE PARKING AUTHORITY TO THE CITY
WHEREAS, the Parking Authority of the City of Santa Monica
is the owner of certain real property located at lll6-46 Fourth
Street in the city of Santa Monica: 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 the Property would be compatible with maintaining at least
the existing number of puplic parking spaces for parking
purposes; and
WHEREAS, the City of Santa Monica desires to sell the air
rights over the Property to Retirement Housing Foundation (flRHFfI)
for purposes of developing senior housing under the U. S.
Department of Housing and Urban Development (HUD) Section 202/8
Program; 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
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,
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. Upon the approval of RHF's application for loan
funds for the development of senior housing units under the HOD
Section 202/8 Program, and upon a determination by the City
council that the desired public parking facility for the site can
be constructed in conjunction with the senior housing, the
property located at 1116-46 Fourth Street in the city of Santa
Monica shall be transferred from the parking Authority of the
City of Santa Monica to the city of Santa Monica, and accepted by
the City of Santa Monica.
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:
~~.~
Robert M. Myers U
City Attorney
:reso4th4
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& RESOLUTION NO. ____ (CCS)
(CITY COUNCIL SERIES)
A 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 RETIREMENT HOUSING FOUNDATION
WHEREAS, the City of Santa Monica (hereinafter "city") owns
the property at ll16-46 Fourth Street which is commonly known as
Parking Lot Four (hereinafter "Property") i and
WHEREAS, Retirement Housing Foundation ("RHF") will subm~t
an application to the United states Department of Housing and
Urban Development (HUD) for a Section 202/8 loan to develop
senior housing units; and
WHEREAS, RHF desires to enter into an Option Agreement with
the city to purchase the air rights over the Property for the HUD
senior housing units; and
WHEREAS, the development of housing units in the air rights
over the Property would be compatible with maintaining at least
the existing number of public parking spaces for parking
purposes; and
WHEREAS, the City desires to sell the air rights over the
Property to RHF for purposes of developing senior housing; and
WHEREAS, the City has caused the notice of such intent to
sell air rights to be published in a local newspaper and posted
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notice on the ~operty providing informat~
of a public hearing; and
on the date and time
WHEREAS, the City Council has held a public hearing at 7:30
p.m. on May 23, 1989 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 agrees to sell the air rights over the
Property to RHF and this is the final authorization to proceed
with the proposed project subject to:
A. Receipt of funding conuni tment from HUD for a Section
202/8 loan for development of 67 units of senior housing in the
air rights over the Property.
B. Determination by the City Council that the desired
public parking facility for the site can be constructed in
conjunction with the senior housing.
C. Compliance with the provisions of the California
Environmental Quality Act.
D. Execution of a Development and Disposition Agreement
between the City and RHF.
SECTION 2. The city agrees to provide up to $1,200,000 to
pay for those development costs for items required by the City
but not included in the Section 202/8 Loan, including structured
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parking, amen iflts, and other cost-containment
items that HOD may
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identify, subject to:
A. RHF 1 S receipt of a funding conuni tment from HUD for a
Section 202/8 Loan for development of senior housing in the air
rights over the Property.
B. Determination by the City Council that the desired
public parking facility for the site can be constructed in
conjunction with the senior housing.
C. Execution of a Development and Disposition Agreement
between the City and RHF.
SECTION 3. Upon receipt of a funding commitment from HUD
for a Section 202/8 loan for development of 67 units of senior
housing in the air rights over the Property and compliance with
the provisions of the California Environmental Quality Act, the
City Manager is authorized to negotiate and execute a Development
and Disposition Agreement between the City and RHF.
SECTION 4. Municipal Code section 250SA 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
advertising for bids would not be in the best interests of the
City because:
(1) The City has determined that the development of rental
housing units for low-income seniors is of benefit to tpe City of
Santa Monica;
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(2) The City has identified the HUD Section 202/8 loan
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program as the most suitable source of funding necessary in order
to develop such housing, and this funding is available only to
qualified non-prOfit developers; and
(3) The city has found RHF to be the most suitably
qualified non-profit developer, with experience in working with
the HUD Section 202/8 loan program, to develop such housing in
Santa Monica.
SECTION 5. 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:
~ """-. "'^'er
Robert M. Myers
City Attorney
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