Loading...
HomeMy WebLinkAboutRDA Minutes 1998-02-11 Chairman Eugene R. Mullin M I N U T E S Boardmembers: James L. Datzman Redevelopment Agency Joseph A. Fernekes Karyl Matsumoto Municipal Services Building John R. Penna Community Room February 11, 1998 AGENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 7:00 p.m. Chairman Mullin presiding. ROLL CALL: Boardmembers present: Datzman, Fernekes, Matsumoto, Penna and Mullin. Boardmembers absent: None. AGENDA REVIEW AGENDA REVIEW Executive Director Wilson stated there were no changes to the Agenda. CONSENT CALENDAR CONSENT CALENDAR '-"' Motion to approve Minutes of the Regular Meeting of Approved. 1/28/98. 2. Motion to confirm expense claims of 2/11/98. Approved in the amount of $220,476.50. M/S Penna/Matsumoto - To approve the Consent Calendar. Carried by unanimous voice vote. PUBLIC HEARINGS PUBLIC HEARINGS 3. Public Hearing - To consider California Community Chairman Mullin opened the Public Hearing. Redevelopment law requirement for each redevelop- ment agency to adopt a five year implementation plan Coordinator of Economic & Community Develop- to monitor its progress in meeting both its affordable ment Beyer explained: accomplishments and any housing obligations under the law and affordable changes proposed to the plan for the next two years; housing needs of the community; Conduct Public special goals for the five year plan are the elimina- Hearing; adopt resolution. .5'qO .~ tion of blight, and the use of Agency housing funds and its plan; activities in the Gateway; there is a A RESOLUTION APPROVING AN AMENDED modification due to the widening of Oyster Point IMPLEMENTATION PLAN FOR REDEVELOP- Blvd. and the completion of the Overpass with the MENT flyover; the El Camino has seen the approval of low and moderate income housing units and Cosco has purchased the former Macy's Warehouse with its massive retail use; there is a significant change as a result of the BART agreement, for that agreement 2/11/98 Page 1 AGENDA ACTION TAKEN PUBLIC HEARINGS PUBLIC HEARINGS Public Hearing - Continued. was put together and assumed that the City would pay for the undergrounding of BART; the signed agreement provides for BART picking up the plan, and some of the assumptions will be modified; staff is proposing to come back to the Agency to amend the project area boundaries, Willow Gardens, and Winston Manor Shopping Market; the amendment of the plan will consider the assumptions and the land use densities in the project area and the plan has been modified. Coordinator of CDBG Fragoso explained that the housing production portion of the plan has three requirements - that we produce affordable housing and replace any housing that is lost and expand the housing fund according to the redevelopment law and provides times for doing so. She continued: the Agency is in keeping with that and has far ex- ceeded the requirements of redevelopment law; our housing production, although the Agency has not produced new housing, but has substantially rehabed the hotels because they are affordable, which has allowed us to offset the replacement of some units lost over the years; we had a deficit of 11 units, but the rehab has made up for the replacement obliga- tion; we are reflecting the loss of one or two units and staff feels we can meet that with the substantial rehab that has given us production credit; the hous- ing fund has been expended in a timely fashion with excellent projects which helped us meet the expendi- ture of that and the City continues to have a healthy balance because the tax increases are increasing on a year to year basis; perhaps the most significant change is the one in the Downtown Central Devel- opment where there is potential for development in affordable housing; the other significant change that is required by redevelopment law is that 15% of all housing produced in any redevelopment area, and that means the Downtown Central, must have 15% affordable housing; if the developer is not required by the Agency to construct the affordable units, then the Agency must assume the obligation; so, staff proposes to come back at a later date for an ordi- nance for the Agency to require that developers in those two project areas produce the affordable units on site; staff will come back with an in-lieu option with fees should the developer prove it is unfeasible to do that; staff feels it is prudent to adopt this and we will come back with an ordinance at a later date; 2/11/98 Page 2 AGENDA ACTION TAKEN PUBLIC HEARINGS PUBLIC HEARINGS Public Hearing - Continued. the other significant change is in the El Camino Project area, for originally it was thought that 3,600 in new housing could be produced, and with staff's experience with the McLellan project and recent discussions of changing the density found that 3,600 is unrealistic and that has been scaled back to 500 that would be produced along the corridor reflecting the lower density that will be discussed with the Redevelopment Agency. Chairman Mullin invited anyone wishing to speak on the item to step to the podium, no one did and he closed the Public Hearing. Discussion followed: Boardmember Penna did not have a problem with this item; Boardmember Matsumoto stated, this is where our staff should be going; Vice Chairman Datzman asked, if it turned out there was a decision for the downtown area what would the obligation be, and how would it work for our responsibility; the obligation is a one to one replacement for the exact bedroom size, but the single rooms of the hotels have been successful in saving specific numbers of units; the Board has to develop a replacement plan and it has four years to do it; a developer has to provide the 15% affordable housing, and if that is not feasible on-site, they have to show us, and we would need a very compelling reason, for if they do not produce, then it is the Agency's obligation; it is the Agency that is respon- sible and we can either assume that and do the con- struction or require an inclusionary ordinance within the project area; there has been thinking on whether or not that could be a Citywide requirement and it is an issue that will come back, but staff is talking about the El Camino and the downtown area; this is only a redevelopment requirement; cities have a way of coming up with inclusionary clauses for housing on a smaller scale; City Manager Wilson stated he is developing some models for senior housing that the Council could make citywide, take that and say there is a concern about housing and you want a mixed type, then many cities have said that all parts of the City participate; staff has tried to look at all housing needs; Chairman Mullin questioned "the property at the corner of Linden and Baden to re- move blight for the community theater; that is a typo; why isn't there an accumulative total of pro- jects; is it the nature of this chart where it does not 2/11/98 Page 3 AGENDA ACTION TAKEN PUBLIC HEARINGS PUBLIC HEARINGS Public Hearing - Continued. have a total; sharing single family homes; the City has funded HIP which is a house sharing program where they assist seniors with little funds to live in a big house; it is one of the few non-profit agencies that the Redevelopment Agency can assist; we do get credit for HIP and Shelter Network in the yearly reports that go to the State and the Agency will see those in the block grant application. M/S Fernekes/Penna - To adopt the Resolution. RESOLUTION NO. 2-98 Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS 4. Resolution approving loan agreement with MP City Manager Wilson related: following a prior dis- Greenridg¢ Associates for a multi-family development cussion on Broadmoor Lumber where the City want- on El Camino for affordable housing. ~'6t~ 3 ed to preserve its commercial property, the Feder- ated Warehouse property, and at the appropriate A RESOLUTION APPROVING THE LOAN time when we go into the revision of the plan we AGREEMENT FOR THE DEVELOPMENT OF shift our residential and look for residential on the GREENRIDGE AFFORDABLE HOUSING BE- mixed site; the requirement in the redevelopment TWEEN THE REDEVELOPMENT AGENCY AND area is that 15% of the units be for low and moder- MID-PENINSULA HOUSING COALITION ate income housing and Greystone has entered an agreement to provide the housing and Mid-Peninsula will construct the units. The agreement before the Agency is to provide a low interest loan agree- ment to the Mid-Peninsula Housing Coalition to provide for the construction of 34 units of 940 to 1,500 sq. ft. units. The cost is $5.6 million and the Agency picks up 17% of the total cost for the units which allows the City to pick up an additional seven units under redevelopment law. The City has a deficit of low and moderate income housing and this will help with that situation. The report also sum- marizes the concerns of the loan agreement, eight will be met and two include that the developer must include evidence that he has met the commitment. It includes a property manager after construction is complete with restricted covenants for low income housing for 55 years, and specifically points out the number of low income housing. Staff believes this is a good opportunity to pick up the seven units and recommends adoption of the revised resolution. Counsel Mattas stated he wanted to be sure the name of the entity is Greenridge Assoc., a partnership, 2/11/98 Page 4 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. and the agreement specifically approves the rent agreement with a promissory note and has a deed of trust consistent with the loan. Discussion followed: this is a repayable loan; Mr. Schwartz stated yes, at 3%; Mid-Peninsula manage- ment starts with the selection and screening of the tenants and they advertise widely, although residents receive first consideration; they look at credit and rental history, behavior, make a home visit and it is done through a lottery system; the overall goal is that any one moving in is a responsible person to the community and the neighborhood; they have on site management and someone lives on site and they have their own maintenance and operate 35 others in the bay area; is 55 years a long time to keep this as a low market rate; Mr. Schwartz stated the major source of financing is the low income tax program from Federal and State; to get the maximum amount of funds you have to commit to 55 years, which they are pleased to do; Chairman Mullin questioned why the E1 Camino project did not contribute any- thing to the low income housing; at the time the implementation plan was required, the El Camino Corridor was already in, and was somewhat grandfathered in, and at that time the Council did not adopt the inclusionary clause. M/S Datzman/Matsumoto - To adopt the revised Resolution. RESOLUTION NO. 3-98 Carried by unanimous voice vote. GOOD AND WELFARE GOOD AND WELFARE No one chose to speak. M/S Fernekes/Datzman - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment was 7:47 p.m. 2/11/98 Page 5 AGENDA ACTION TAKEN RESPECTFULLY SUBMITFED, APPROVED. Eugene. Mullin, Chairman Redevelopment Agency Redevelopment Agency City of South San Francisco City of South San Francisco The entries of this Agency meeting show the action taken by the Redevelopment Agency to dispose of an item. Oral communications, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 2/11/98 Page 6