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SR-407-005-02 (4) . tltJ?-- cOOS-c.YZ.- I 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 - 1 - cc!:~-l . I 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. - 2 - . I 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 - 3 - .' I 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 - 4 - . ,- 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 - 5 - . I 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 - 6 - . I 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 - 7 - . I 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 - 8 - . I 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. - 9 - . , 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 - lO - . 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 . 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 - 1 - !Ir~~ 1.1" \\ l;;.~ i!: ." j' '1 ~ JI ; " .,. ~11: ~t' ,j.~ :II~' I ... .;t , ':1 11 '~ t in "i"< i; :i. _." , , i fi" . .!J rl~ " : ,~- ":- ~ {. ;: ...' I,' , - ~ ~"1 I -..... ~ ~~ .;. ,1 , " ' . - .~ ~ i . ~.:l.-: I .- \ .. 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" -85- . 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 " / " -86- ~ -' . . 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 - ~I" -" =-a: . . -~w ---'.r~ .-.~ , PROGRAM/ADDRESS -I~.: ~ .. t , -- 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 - '...-:;.....!. ~r-~- r~-: ~ .", !!:;" . i I p. i. I'~>'.' "1:' ROGRAM/ADDRESS ~i' '~ ~" . R , .. . 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. : invent . ,A-A. J (1t->--. ~J-~' "f:-/ ~r 0 c / fA v '- - , :u+ -u --- , .j;:f--( ~ , ~ 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 - 1 - . . . , 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 - 1 - . . , 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 - 2 - . 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, - 1 - . . . 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 - 2 - . . & 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 - 1 - .. 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 - 2 - ~- - -----~ --~-- - . . parking, amen iflts, and other cost-containment items that HOD may ~ 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; - 3 - \ . . (2) The City has identified the HUD Section 202/8 loan . 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 - :reso4th5 - 4 -