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SR-04-14-2009-1G__ - -- ctYor City Council Report Santa Monica City Council Meeting: April 14, 2009 Agenda Item: ~-"G To: Mayor and City Council From: Barbara Stinchfield, Director, Community and Cultural Services Subject: Resolution Authorizing the City Manager to Submit an Application to the California State Department of Housing and Community Development for Funding Under the Proposition 1C Infill Infrastructure Grant Program; to Execute an Agreement for Such Funding and Any Amendments Thereto; and to Submit or Execute Any Related Documents Necessary to Participate in the Infill Infrastructure Grant Program for Palisades Garden Walk in the Civic Center Recommended Action Staff recommends that the City Council approve the attached resolution and authorize the City Manager to: 1) submit an application to the California State Department of Housing and Community Development for funding under the Proposition 1C Infill Infrastructure Grant Program; 2) execute an agreement for such funding and any amendments thereto; 3) submit or execute any related documents necessary to participate in the Infill Infrastructure Grant Program; and 4) commit to fully funding the project should the grant be awarded. Executive Summary This report recommends that the City Council authorize the City Manager to submit an application for funding under the Prop 1C Infill Infrastructure Grant Program in the amount of $15,489,680 to support the design, site preparation and construction of Palisades Garden Walk, a 6-acre park, and portions of its surrounding streetscapes. It also recommends that the City Manager be authorized to submit any and all related 1 supplementary documents and execute a grant agreement and any associated amendments to that agreement. Discussion As authorized in the attached Resolution, staff is preparing a grant application for submittal to the State Housing and Community Development Department (HCD) on or before the April 1, 2009 deadline. The application will request $15,489,680 in grant funds to support the design .and construction of Palisades Garden Walk (and its streetscapes) as a critically needed infrastructure component of the Civic Center Specific Plan area which includes The Village mixed-use development and its affordable housing. The application will be submitted in the Qualifying Infill Area (QIA) category with Building B of The Village serving as the qualifying project and a portion of the Civic Center Specific Plan serving as the qualifying planning area. The grant application contains a commitment to fund the full project. The Infill Infrastructure Grant Program is funded by Proposition 1C, the Housing and Emergency Shelter Trust Fund Act of 2006. Its primary objective is to promote infill housing development. The program seeks to accomplish this objective by providing financial assistance in the form of gap funding for infrastructure improvements necessary to facilitate specific residential or mixed-use infill development projects. Both infill projects and areas must have either been previously developed or be largely surrounded by development. The application selection criteria include project readiness, housing affordability, housing density, proximity and access to transit, parks, employment centers, and consistency with a regional blueprint or similar regional growth plan. On January 30, 2009, HCD issued a Notice of Funding Availability. (NOFA) for the 2008- 2009 Funding Round of the Infill Infrastructure Grant Program. Approximately $197 million in grant funds are available in this grant cycle with an even 50/50 split allocated to Qualifying Infill Project (QIP) grants and Qualifying Infill Area (QIA) grants. 45% of each category is targeted for grants to projects located in Southern California (Kern, 2 San Bernardino, San Luis Obispo, Santa Barbara, Ventura, Los Angeles, Orange, Riverside San Diego or Imperial counties). Budget/Financial Impact The recommendations in this Staff Report have no budgetary impacts at this time, however should the grant be awarded the City would be required to fully fund the project. Cost estimates for the project, submitted as part of the grant application process, show a total cost of $20,807,678, so the City would need to contribute $5,317,998 in addition to the grant amount. $6 million in redevelopment funds are currently available in 0170772.589000 to support the overall effort to plan and design all the remaining elements of the Civic Center which includes this project. Prepared by: Karen Ginsberg, Assistant Director, Community and Cultural Services roved: ~~~ Barbara Stinchfield Director, Community & Cultural Services Forwarded to Council: Attachment A: Resolution No. (CCS) 3 Reference Resolution No. 10391 (CCS) & Contract No. 9055 (CCS).