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~ ~,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.
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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
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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
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Reference Contract No.
9036 (CCS).