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sr-021009-1g~~~ ~ ~,tYOf cety counCSi Report Santa Monica6 City Council Meeting: February 10, 2009 Agenda Item: 1 ^~ To: Mayor and City Council From: Andy Agle, Director of Housing and Economic Development Barbara Stinchfield, Director of Community and Cultural Services Subject: Approval of the Ocean Park Community Center to Lease, Rehabilitate and Operate the City's Property at 1614-1616 Ocean Avenue Recommended Action Staff recommends that the City Council: 1) authorize the City Manager to negotiate and execute lease documents and other related documents with Ocean Park Community Center (OPCC) to lease, rehabilitate and operate the City-owned property located at 1614-1616 Ocean Avenue as supportive housing for chronically homeless and mentally- ill persons; and 2) award OPCC a $100,000 funding advance for architectural, legal and consultant services. Executive Summary In conjunction with the implementation of the City priorities to address homelessness, staff issued a Request for Proposal (RFP) pursuant to Council direction regarding the City-owned property at 1614-1616 Ocean Avenue for the long-term lease and rehabilitation/reconstruction of the property as permanent affordable housing with supportive services. One proposal was received in response to the RFP, from OPCC with Community Corporation of Santa Monica as a partner. Staff has conducted its evaluation of the proposal and recommends selecting OPCC. Further, staff recommends providing OPCC with initial funding of $100,000 to facilitate the redesign of the building and leveraging of county/state/federal funding sources-for the rehabilitation of the property and provision of supportive services. Finally, OPCC needs to obtain site control of the property to.be eligible to apply for funding from other sources, rehabilitate the property and operate the proposed supportive housing project. Background In 1973, the City purchased 1614-16 Ocean Avenue, a seventeen unit residential rental property with two commercial units (a total of nineteen units). Over the past several decades, the Housing Division has overseen the management of this rent controlled property. The building was constructed in 1953 and currently is partially occupied by OPCC's Daybreak Day Center, a social services program that provides emergency services linked to case management, on-site health care and counseling and benefits advocacy to homeless, mentally ill women. Daybreak Day Center is also a key participant in the Chronic Homeless Program/Service Registry. Daybreak Day Center currently leases five units on the first floor to provide day services to its clients. An additional seven units are occupied by residential tenants and seven units are currently vacant, in anticipation of the future rehabilitation. The Community Priority adopted by City Council in the FY 2007-08 budget addressing the impacts of homelessness on the community included a goal to "develop local supportive housing options for chronically homeless and mentally ill people." In addition, the "Action Plan to Address Homelessness in Santa Monica" adopted by the City Council in February 2008 includes the goals of: developing more permanent supportive housing resources within and outside of Santa Monica; and develop a pilot with a local housing provider which combines housing with intensive post-placement support service for chronically homeless individuals. On March 11, 2008, the City Council authorized staff to solicit proposals to rehabilitate or reconstruct the City-owned apartment building at 1614-1616 Ocean Avenue as affordable permanent supportive housing for very-low-income, long-term Santa Monica homeless persons, pursuant to along-term lease. Discussion On June 4, 2008, the City issued an RFP for the 1614-1616 Ocean Avenue property for the long-term lease and rehabilitation/reconstruction of the site as affordable housing with supportive services. The notice of the RFP was posted on the City web-site and mailed to a total of 23 organizations, including local non-profit affordable housing developers and service providers. Proposals were due at 5:00 pm on July 15, 2008. One proposal was submitted in response to the RFP by OPCC. 2 Staff reviewed the proposal based on the evaluation criteria outlined in the RFP: 1) thoroughness, completeness and responsiveness to RFP; 2) financial structure of project; 3) financial feasibility of the proposal; 4) financial capacity of the developer; 5) quality of the design; 6) demonstrated ability and experience of all development team members; 7) zoning compliance; 8) management experience of target population; 9) experience working with and being responsive to stakeholder groups; 10) experience providing supportive services to target population; and 11) quality and appropriateness of supportive services plan. OPCC is well established in the community with a proven capacity to develop, own, and operate supportive housing and provide intensive services to chronically homeless and mentally ill persons. The development team members are all experienced and well qualified organizations with track records in Santa Monica and with affordable housing. Community Corporation of Santa Monica will act as development project management consultant during the entitlement, financing and rehabilitation phases and will manage the property in conjunction with OPCC during the operating phase. The OPCC team includes Ralph Mechur Architects for architectural and engineering services and Nancy Lewis Associates, Inc. for financial consulting services. The design of the site would allow for the conversion of program units into permanent supportive housing units as the needs of the population change and the program is reconfigured accordingly. The project is subject to all of the required planning and zoning reviews for a rehabilitation project. Commission Action Prior to the City Council's March 2008 approval to issue the RFP, the Social Service Commission discussed the long-term lease of 1614-1616 Ocean Avenue as affordable special needs rental housing at their February 25, 2008 meeting. The Commission 3 voted to support the staff recommendation and the use of City-owned property in a prime location for supportive housing for homeless persons. The Housing Commission discussed this item at their February 21, 2008 meeting and also voted to support staff recommendations and explore other sites and opportunities that would increase the total number of homeless persons served. The Commission on the Status of Women (COSW) considered the issue at their February 13, 2008 meeting and voted to support the concept of permanent supportive housing for vulnerable populations. Financial Impacts & Budget Actions Funding of $100,000 for the financing advance to OPCC is available in account H 14037708.589000. Prepared by: Melissa Lindley, Senior Administrative Analyst, Housing Division Forwarded to Council: Andy Agle, Director ~-~ P: a ont Ewell Housing and Economic Development Manager Barbara Stinchfield, Director Community and Cultural Services 4 Reference Contract No. 9036 (CCS).