HomeMy WebLinkAbout2009-07-14 City Council Item No. 14 CITY OF i
E
LA r� LS I NO E
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1
• DREAM EXTREME,
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: JULY 14, 2009
SUBJECT: CITY LOAN OF HOPE VI MAIN STREET GRANT FUNDS
BACKGROUND
The HOPE VI Main Street Grant Program is designed to strengthen public - private
partnerships to provide decent, safe, sanitary, and affordable housing, with primary
attention to rental housing, for very low income and lower income households in
downtown districts.
The City of Lake Elsinore ( "City ") has been awarded a $1,000,000 grant (the "HOPE VI
Main Street Grant ") from the Department of Housing and Urban Development ( "HUD ")
for the Pottery Court Affordable Housing Project (the "Project ").
On May 26, 2009, the Redevelopment Agency (the "Agency ") and Pottery Court
Housing Associates, L.P. (an affiliate of Bridge Housing) (the "Developer") entered into
a Disposition and Development Agreement (the "DDA ") for the Project, which provides
for the sale of 4.3 acres of Agency property near Pottery Street and the outflow channel
(the "Property "); a purchase money loan to the Developer of $4,061,000 (the "Agency
Loan "); and development of approximately one - hundred eleven (111) affordable
housing units.
However, the DDA only represents part of the Project's funding commitments. In
addition to a County loan of HOME funds, a construction loan, and an investor's equity
contribution to be obtained through the syndication of Tax Credits, the Project will also
require the proceeds of a City loan by way of the HOPE VI Main Street Grant funds.
DISCUSSION
The Developer has requested that the City contribute the $1,000,000 HOPE VI Main
Street Grant toward the estimated $23,000,000 Project budget. Specifically, these
CC July 14, 2009 Item No. 14
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Report to City Council — City Loan of HOPE IV MAIN STREET GRANT FUNDS
July 14, 2009
Page 2
funds will be used to reimburse the Developer of eligible predevelopment activities such
as relocation of tenants, architect and engineering costs, planning costs and permits.
Upon conveyance of the Project site by the Agency to the Developer pursuant to the
DDA, the City Loan will be secured by a deed of trust which will be recorded against the
Pottery Court property. The Developer has also agreed to the following loan terms:
• Use of funds will be consistent with the requirements of the City's original grant
agreement with HUD
• 3% simple interest
• Loan payable from residual receipts (revenues less operating cost and debt
service) on a pro rata basis with the Agency and County loans
• Any remaining outstanding balance due in 55 years
In order to expedite the proposed development funding, staff is recommending the City
approve the attached Resolution committing up to $1,000,000 of HOPE VI Main Street
Grant funds to the Developer for the Project and delegate to the City Manager the
authority to enter into a loan agreement and related ancillary documents specifying the
terms and conditions of the loan consistent with this report.
FISCAL IMPACT
There is no impact to the City's General Fund. The City Loan of up to $1,000,000 will
be funded by the HOPE VI Main Street Grant.
RECOMMENDATION
That the City Council approve Resolution No. 2009- authorizing a commitment of
$1,000,000 from the HOPE VI Main Street Grant for a loan to the Developer and
authorize the City Manager the authority to enter into a loan agreement and related
ancillary documents.
Prepared by: Barbara Leibold
City Attorney
I
Approved by: Robert A. Brady , ■
City Manager
Attachment: Resolution No. 2009 -
CC July 14, 2009 Item No. 14
Page 2 of 6
RESOLUTION NO. 2009-
RESOLUTION OF CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, AUTHORIZING A LOAN OF HOPE VI MAIN STREET
GRANT FUNDS TO POTTERY COURT HOUSING ASSOCIATES, L.P.
FOR AN AFFORDABLE HOUSING PROJECT KNOWN AS POTTERY
COURT
WHEREAS, the City is a municipal corporation organized and existing under the
laws of the State of California. The City has been awarded a One Million Dollar
($1,000,000) grant (the "HOPE VI Main Street Grant ") from the United States
Department of Housing and Urban Development ( "HUD ") pursuant to the federal HOPE
VI Authorization which was appropriated by the Consolidated Appropriations Act, 2008
(Pub. L. 110 -161) under the heading "Revitalization of Severely Distressed Public
Housing ( "HOPE VI Program ") for purposes of strengthening public - private partnerships
to provide decent, safe, sanitary, and affordable housing, with primary attention to rental
housing, for very low income and lower income households in the City, and particularly
for the Project (as defined below); and
WHEREAS, the City has entered into a Grant Agreement dated May 21, 2009
with HUD setting forth specific terms and conditions relating to the use of the funds; and
WHEREAS, by action of the City Council pursuant to Chapter 2 of the California
Community Redevelopment Law (Health & Safety Code §§ 33000 et seq.)
( "Redevelopment Law ") the City has established the Redevelopment Agency of the City
of Lake Elsinore (the "Agency "), whose purposes include increasing, improving and
preserving the community's supply of housing affordable to and occupied by low and
moderate income households pursuant to §§ 33334.2, 33334.3, 33334.6 and 33413 of
the Redevelopment Law; and
WHEREAS, Pottery Court Housing Associates, L.P. ( "Developer") is a California
limited partnership, whose general partner is an experienced affordable housing
developer, and whose purpose is to construct, operate and manage the Project (as
defined below); and
WHEREAS, on May 26, 2009, the Agency and Developer entered into that
certain Disposition and Development Agreement (Pottery Court) (the "DDA "), which
provides for (1) the disposition by the Agency to the Developer of approximately 4.3
acres of real property located within the boundaries of Rancho Laguna Redevelopment
Project Area No. I and generally bounded by Pottery Street and Sumner Avenue
between the outflow channel of Lake Elsinore and Langstaff Street (the "Property "); (2)
the loan from the Agency's Low and Moderate Income Housing Fund to the Developer
in an amount not to exceed Four Million Sixty One Thousand Dollars ($4,061,000)
( "Agency Loan "); and (3) the development of approximately one - hundred eleven (111)
units restricted to occupancy by very low income households at an affordable rent, two
(2) manager units, and community space which will provide a study room, a music
practice room, a great room for parties, a full kitchen, a pool, BBQs and one tot lot all in
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CITY COUNCIL RESOLUTION NO. 2009-
PAGE 2 OF 4
accordance with the Project Description attached as Attachment No. 3 to the DDA, the
Development Proposal submitted to HUD under the Grant Agreement and Tentative
Parcel Map 36193 and Residential Design Review No. 2009 -02 approved by the City
Council of City on June 23, 2009 (the "Project "); and
WHEREAS, on June 9, 2009, Developer submitted an application for an
allocation of nine percent (9 %) Low Income Housing Tax Credits pursuant to Section 42
of the Internal Revenue Code and /or California Revenue and Taxation Code sections
17057.5, 17058, 23610.4, and 23610.5 and California Health and Safety Code section
50199 et seq. for the Project (the "TCAC Application "). Developer anticipates the Tax
Credit syndication proceeds will be in the amount set forth in the Preliminary Project
Budget, and
WHEREAS, Developer requires financial assistance from City in order to cover
certain eligible predevelopment costs that Developer will incur in connection with the
Project; and
WHEREAS, the City desires to provide financial assistance to Developer for
certain eligible predevelopment costs in the form of a City Loan in the aggregate
amount not to exceed One Million Dollars ($1,000,000) (the "City Loan "); and
WHEREAS, Agency currently owns the Property and has agreed to convey the
Property to Developer subject to and in accordance with the DDA. The City Loan
proceeds will not be used by Developer for acquisition of the Property from Agency; and
WHEREAS, Developer and City agree that the City Loan will facilitate the
development of the Project which is in the vital and best interest of the City, is
necessary for the protection of the health, safety and welfare of the City's residents, and
is in accord with the public purposes and provisions of applicable federal, state and
local laws and requirements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The foregoing recitals are true and correct and are incorporated as
substantive findings of the City by this reference.
SECTION 2. The Agency hereby authorizes the City Manager to provide a loan
from the HOPE VI Main Street Grant in an amount not to exceed $1,000,000 to
Developer, to be used for costs and expenses approved by the City Manager, or his
designee, which are customarily incurred and shall have been actually incurred by
Developer for the predevelopment and development of Pottery Court.
SECTION 3. The City Loan shall require that the use of funds will be consistent
with the requirements of the Grant Agreement, provide for 3% simple interest, provide
for annual payments of residual receipts (revenues Tess operating cost and debt
service) on a pro rata basis with the Agency and County loans, and require that any
CC July 14, 2009 Item No. 14
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CITY COUNCIL RESOLUTION NO. 2009-
PAGE 3 OF 4
remaining outstanding balance be payable due in 55 years, or on such other favorable
repayment terms and schedule as the City Manager determine are in the best interests
of the City and Pottery Court.
SECTION 4. As a condition of the City Loan, the City will require that the loan be
secured by a Deed of Trust which will be recorded against the Pottery Court property
upon the property transfer from the Agency to the Developer pursuant to the DDA.
SECTION 5. That the making of the City Loan shall be contingent on and subject
to such other appropriate terms and conditions as the City Manager may establish.
SECTION 6. All loan documents shall be reviewed and approved by the City
Attorney for form and legality prior to execution.
SECTION 7. Subject to all applicable laws, including all notice and hearing
requirements relating to Pottery Court, the City Council hereby authorizes the City
Manager to execute a loan agreement along with any ancillary documents, administer
the City Loan, and take any other action with respect to the loan and Pottery Court
consistent with this Resolution and its basic purpose.
SECTION 8. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council
of the City of Lake Elsinore, California, this 14th day of July 2009.
ROBERT E. MAGEE, MAYOR
CITY OF LAKE ELSINORE
ATTEST:
DEBORA THOMSEN
CITY CLERK
APPROVED AS TO FORM:
BARBARA ZEID LEIBOLD
CITY ATTORNEY
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CITY COUNCIL RESOLUTION NO. 2009 -
PAGE4OF4
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
1, DEBORA THOMSEN, City Clerk of the City of Lake Elsinore, California, hereby
certify that Resolution No. was adopted by the City Council of the City of
Lake Elsinore at a regular meeting held on the 14 day of July 2009, and that the same
was adopted by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
DEBORA THOMSEN
CITY CLERK
CC July 14, 2009 Item No. 14
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,
Page 1 of 3
CITY OF LAKE ELSINORE
REDEVELOPMENT AGENCY AGENDA
THOMAS BUCKLEY, CHAIRMAN WWW.LAKE- ELSINORE.ORG
AMY BHUTTA, VICE -CHAIR (951) 674 -3124 PHONE
DARYL HICKMAN, AGENCYMEMBER (951) 674 -2392 FAX
ROBERT MAGEE, AGENCYMEMBER LAKE ELSINORE CULTURAL CENTER
MELISSA MELENDEZ, AGENCYMEMBER 183 NORTH MAIN STREET
ROBERT BRADY, EXECUTIVE DIRECTOR LAKE ELSINORE, CA 92530
************************************************ * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
TUESDAY, JULY 14, 2009 STUDY SESSION AT 4:00 P.M.
CLOSED SESSION AT 5:00 P.M.
PUBLIC SESSION AT 7:00 P.M.
CALL TO ORDER - 5:00 P.M.
ROLL CALL
CLOSED SESSION
(1 a) CONFERENCE WITH LEGAL COUNSEL -- ANTICIPATED LITIGATION
Initiation of litigation pursuant to subdivision (c) of Gov't Code
Section 54956.9: 1 case
(1b) CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov't Code §54956.8)
Property: APN 375 - 023 -058
Agency Negotiator: Executive Director Brady
Negotiating parties: Lake Elsinore Redevelopment Agency and US Bank /
JP Morgan Mortgage Trust #2006 -A2
Under negotiation: Price / terms / Conditions of Payment
CALL BACK TO ORDER - 7:00 P.M.
ROLL CALL
CLOSED SESSION REPORT
PUBLIC COMMENTS — NON - AGENDIZED ITEMS —1 MINUTE
(Please read & complete a Speaker's Form at the podium, prior to the start of the
City Council Meeting)
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of July 14, 2009
Page 2 of 3
PUBLIC COMMENTS — AGENDIZED ITEMS — 3 MINUTES
(Please read & complete a Speaker's Form at the Podium, prior to the Start of
the City Council Meeting. The Chairman will call on you to speak, when your item
is called)
CONSENT CALENDAR
(All matters on the Consent Calendar are approved on one motion, unless a
Board member or any member of the public requests separate action on a
specific item)
(2) Approval of Redevelopment Agency Minutes
Recommendation: Approve the following minute(s):
(a) Regular meeting of the Redevelopment Agency — May 12, 2009,
May 26, 2009, and June 23, 2009
(3) Warrant List Dated June 30, 2009
Recommendation: Authorize payment of Warrant List dated
June 30, 2009.
PUBLIC HEARING(S)
None.
BUSINESS ITEM(S)
(4) Downtown Master Plan
Next Step in the Process: Staff requests that the Redevelopment Agency
identify necessary modifications to the attached documents or, if
comfortable with the approach and documents, direct staff to incorporate
them into the General Plan EIR. Staff will then bring the entire Downtown
Master Plan package before the Planning Commission, Redevelopment
Agency and City Council for final consideration and adoption at the end of
the year along with the General Plan Update, and Housing Element which
will all be integrated into a single Environmental Impact Report.
PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of July 14, 2009
Page 3 of 3
EXECUTIVE DIRECTOR COMMENTS
LEGAL COUNSEL COMMENTS
BOARDMEMBER(S) COMMENTS
ADJOURNMENT
The Lake Elsinore Redevelopment Agency will adjourn to a regular meeting to be
held on Tuesday, July 28, 2009, at 5:00 p.m. to be held in the Cultural Center
located at 183 N. Main Street, Lake Elsinore, CA 92530.
AFFIDAVIT OF POSTING
I, DEBORA THOMSEN, Agency Secretary of the City of Lake Elsinore, do
hereby affirm that a copy of the foregoing agenda was posted at City Hall,
72 hours in advance of this meeting.
Debora Thomsen
Debora Thomsen, CMC
Redevelopment Agency Secretary
City of Lake Elsinore, California
CITY OF
LADE LS I NOTE
DREAM EXTREME,
MEMORANDUM
To: Mayor Magee, Mayor Pro Tem Melendez, Councilwoman Bhutta,
Councilman Buckley, and Councilman Hickman
From: Bob Brady, City Manager
Date: July 7, 2009
Subject: Downtown Master Plan Documents
The Downtown Master Plan will be reviewed by the Redevelopment Agency at its
July 14, 2009 meeting. Documents related to the Master Plan are attached and
are being provided in advance to allow for extra review time.
Please bring these documents to the July 14, 2009 meeting. Thank you.
Page 1 of 3
CITY OF LAKE ELSINORE
REDEVELOPMENT AGENCY AGENDA
THOMAS BUCKLEY, CHAIRMAN WWW.LAKE- ELSINORE.ORG
AMY BHUTTA, VICE -CHAIR (951) 674 -3124 PHONE
DARYL HICKMAN, AGENCYMEMBER (951) 674 -2392 FAX
ROBERT MAGEE, AGENCYMEMBER LAKE ELSINORE CULTURAL CENTER
MELISSA MELENDEZ, AGENCYMEMBER 183 NORTH MAIN STREET
ROBERT BRADY, EXECUTIVE DIRECTOR LAKE ELSINORE, CA 92530
************************************************ * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
TUESDAY, JULY 14, 2009 STUDY SESSION AT 4:00 P.M.
CLOSED SESSION AT 5:00 P.M.
PUBLIC SESSION AT 7:00 P.M.
CALL TO ORDER - 5:00 P.M.
ROLL CALL
CLOSED SESSION
(1 a) CONFERENCE WITH LEGAL COUNSEL -- ANTICIPATED LITIGATION
Initiation of litigation pursuant to subdivision (c) of Gov't Code
Section 54956.9: 1 case
(1b) CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov't Code §54956.8)
Property: APN 375 - 023 -058
Agency Negotiator: Executive Director Brady
Negotiating parties: Lake Elsinore Redevelopment Agency and US Bank /
JP Morgan Mortgage Trust #2006 -A2
Under negotiation: Price / terms / Conditions of Payment
CALL BACK TO ORDER - 7:00 P.M.
ROLL CALL
CLOSED SESSION REPORT
PUBLIC COMMENTS — NON - AGENDIZED ITEMS —1 MINUTE
(Please read & complete a Speaker's Form at the podium, prior to the start of the
City Council Meeting)
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of July 14, 2009
Page 2of3
PUBLIC COMMENTS — AGENDIZED ITEMS — 3 MINUTES
(Please read & complete a Speaker's Form at the Podium, prior to the Start of
the City Council Meeting. The Chairman will call on you to speak, when your item
is called)
CONSENT CALENDAR
(All matters on the Consent Calendar are approved on one motion, unless a
Board member or any member of the public requests separate action on a
specific item)
(2) Approval of Redevelopment Agency Minutes
Recommendation: Approve the following minute(s):
(a) Regular meeting of the Redevelopment Agency — May 12, 2009,
May 26, 2009, and June 23, 2009
(3) Warrant List Dated June 30, 2009
Recommendation: Authorize payment of Warrant List dated
June 30, 2009.
PUBLIC HEARING(S)
None.
BUSINESS ITEM(S)
(4) Downtown Master Plan
Next Step in the Process: Staff requests that the Redevelopment Agency
identify necessary modifications to the attached documents or, if
comfortable with the approach and documents, direct staff to incorporate
them into the General Plan EIR. Staff will then bring the entire Downtown
Master Plan package before the Planning Commission, Redevelopment
Agency and City Council for final consideration and adoption at the end of
the year along with the General Plan Update, and Housing Element which
will all be integrated into a single Environmental Impact Report.
PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of July 14, 2009
Page 3 of 3
EXECUTIVE DIRECTOR COMMENTS
LEGAL COUNSEL COMMENTS
BOARDMEMBER(S) COMMENTS
ADJOURNMENT
The Lake Elsinore Redevelopment Agency will adjourn to a regular meeting to be
held on Tuesday, July 28, 2009, at 5:00 p.m. to be held in the Cultural Center
located at 183 N. Main Street, Lake Elsinore, CA 92530.
AFFIDAVIT OF POSTING
I, DEBORA THOMSEN, Agency Secretary of the City of Lake Elsinore, do
hereby affirm that a copy of the foregoing agenda was posted at City Hall,
72 hours in advance of this meeting.
Debora 'Thomsen
Debora Thomsen, CMC
Redevelopment Agency Secretary
City of Lake Elsinore, California
EiL2!
LASE LSIN.OE
DREAM EXTREME
REPORT TO REDEVELOPMENT AGENCY
TO: HONORABLE CHAIRMAN
AND MEMBERS OF THE AGENCY BOARD
FROM: ROBERT A. BRADY
EXECUTIVE DIRECTOR
DATE: JULY 14, 2009
SUBJECT: CLOSED SESSION REPORT(S)
CLOSED SESSION
REDEVELOPMENT AGENCY CLOSED SESSION
(1 a) CONFERENCE WITH LEGAL COUNSEL -- ANTICIPATED LITIGATION
Initiation of litigation pursuant to subdivision (c) of Gov't Code
Section 54956.9: 1 case
(1b) CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov't Code §54956.8)
Property: APN 375 - 023 -058
Agency Negotiator: Executive Director Brady
Negotiating parties: Lake Elsinore Redevelopment Agency and US Bank /
JP Morgan Mortgage Trust #2006 -A2
Under negotiation: Price / terms / Conditions of Payment
Prepared By: Debora Thomsen
City Clerk
Approved By: Robert A. Brady
City Manager
RDA July 14, 2009 Item No. 1
Page 1 of 1
CITY OF
LAKE 02 L
/ DREAM EXTREME
iTW
REPORT TO REDEVELOPMENT AGENCY
TO: HONORABLE CHAIRMAN
AND MEMBERS OF THE REDEVELOPMENT AGENCY
FROM: ROBERT A. BRADY
EXECUTIVE DIRECTOR
DATE: JULY 14, 2009
SUBJECT: APPROVAL OF MINUTES
Discussion
The following Redevelopment Agency meeting minutes for the Lake Elsinore are
submitted for approval:
a) Redevelopment Agency Meeting Minutes from May 12, 2009,
May 26, 2009, and June 23, 2009
Recommendation
Approve the Minutes as submitted.
Prepared b : Debora Thomsen
P Y ct
Agency Secretary
Approved by: Robert A. Brady r
Executive Directo 1
RDA July 14, 2009 Item No. 2
Page 1 of 18
Page 1 of 3
CITY OF LAKE ELSINORE
REDEVELOPMENT AGENCY MEETING
MINUTES
May 12 2009
(not official until approved)
Regular meeting of the Lake Elsinore Redevelopment Agency was held on
Tuesday, May 12 2009 in the Cultural Center, located at 183 N. Main Street,
Lake Elsinore, CA 92530.
The meeting was called to order at 9:07 p.m. by Vice Chair Bhutta who noted all
Agency members were present except for Chairman Buckley.
PRESENT: Vice Chair Bhutta, Agency member Hickman, Agency
member Magee, Agency member Melendez.
ABSENT: Chairman Buckley.
Also present: Executive Director Brady, Agency Counsel Leibold, and Agency
Secretary Thomsen.
Staff members present included Acting Administrative Services Director Riley,
Acting Community Development Director Weiner, Public Works Director / City
Engineer Seumalo, Director of Lake and Aquatics Kilroy, Parks and Recreation
Director Gonzales, Police Chief Cleary, Fire Chief Hendershot, and Information /
Communications Manager Dennis.
CLOSED SESSION
(1A) CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov't Code § 54956.8)
Property: 154 North Main Street, 156 North Main Street, 158 North Main
Street
Agency Negotiator: Executive Director Brady
Negotiating parties: Lake Elsinore Redevelopment Agency and Tenants
Irma Y Leonardo Lee (154 North Main Street); and
Eduardo Ramirez Mosqueda (156 North Main Street); and
Paula Lopez / Super Saver, Inc (158 North Main Street)
Under negotiation: Rent and terms of payment
RDA July 14, 2009 Item No. 2
Page 2 of 18
Lake Elsinore Redevelopment Agency
Regular Meeting Minutes of May 12 2009
Page 2 of 3
PUBLIC COMMENTS — NON - AGENDIZED ITEMS —1 MINUTE
There was no one present who wished to speak regarding a non - agenized item.
PUBLIC COMMENTS — AGENDIZED ITEMS — 3 MINUTES
There was no one present who wished to speak regarding an agenized item.
CLOSED SESSION REPORT
Agency Counsel Leibold stated due to the absence of Chairman Buckley the
Closed Session item was cancelled.
CONSENT CALENDAR
(2) Approval of Redevelopment Agency Minutes
Recommendation:
Approved the following minute(s):
(a) Regular meeting of the Redevelopment Agency — March 24, 2009
(3) Warrant List Dated April 30, 2009
Recommendation:
Authorized payment of Warrant List dated April 30, 2009.
MOTION was made by Agencymember Hickman, second by
Agencymember Magee and unanimously carried to approve the Consent
Calendar as recommended.
AYES: Bhutta, Hickman, Magee, Melendez.
NOES: None.
ABSENT: Buckley.
PUBLIC HEARING(S)
None.
RDA July 14, 2009 Item No. 2
Page 3 of 18
Lake Elsinore Redevelopment Agency
Regular Meeting Minutes of May 12 2009
Page 3 of 3
BUSINESS ITEM(S)
None.
EXECUTIVE DIRECTOR COMMENTS
None.
LEGAL COUNSEL COMMENTS
None.
BOARDMEMBER(S) COMMENTS
None.
ADJOURNMENT
There being no further business to come before the Redevelopment Agency
(RDA) Vice Chair Bhutta adjourned the Redevelopment Agency portion of the
meeting at 9:08 p.m. for the City Council to conclude their meeting.
The Lake Elsinore Redevelopment Agency will adjourn to a regular meeting to be
held on Tuesday, May 26, 2009, at 5:00 p.m. to be held in the Cultural Center
located at 183 N. Main Street, Lake Elsinore, CA 92530.
Debora Thomsen
Debora Thomsen, CMC
Redevelopment Agency Secretary
City of Lake Elsinore, California
RDA July 14, 2009 Item No. 2
Page 4 of 18
Page 1 of 10
CITY OF LAKE ELSINORE
REDEVELOPMENT AGENCY MEETING
MINUTES
May 26 2009
(not official until approved)
Regular meeting of the Lake Elsinore Redevelopment Agency was held on
Tuesday, May 26 2009 in the Cultural Center, located at 183 N. Main Street,
Lake Elsinore, CA 92530.
The meeting was called to order at 7:37 p.m. by Chairman Buckley who noted all
Agency members were present.
PRESENT: Chairman Buckley, Vice Chair Bhutta, Agency member
Hickman, Agency member Magee, Agency member Melendez.
ABSENT: None.
Also present: Executive Director Brady, Agency Counsel Mann, and Agency
Secretary Thomsen.
Staff members present included Acting Administrative Services Director Riley,
Acting Community Development Director Weiner, Public Works Director / City
Engineer Seumalo, Director of Lake and Aquatics Kilroy, Parks and Recreation
Director Gonzales, Police Chief Cleary, Fire Chief Hendershot, and Information /
Communications Manager Dennis.
CLOSED SESSION
(1) CONFERENCE WITH REAL PROPERTY NEGOTIATOR
(Gov't Code §54956.8)
Property: APN 374 - 072 -028, 374 - 072 -030, 374 - 072 -032, 374 - 072 -034,
374 - 072 -036; 374 - 072 -018, 374 - 072 -020, 374 - 072 -022; 374 -071 -003,
374 - 071 -004, 374 - 071 -005, 374 - 071 -006, 374 - 071 -007, 374 -071 -008,
374 - 071 -009, 374 - 071 -010, 374 - 071 -011, 374 - 071 -012, 374 -071 -013,
374 - 071 -014, 374 - 071 -027, 374 - 071 -027; 374 - 072 -026
Agency Negotiator: Executive Director Brady
Negotiating parties: Lake Elsinore Redevelopment Agency and Pottery
Court Housing Associates, LP
Under negotiation: Price and terms of payment
RDA July 14, 2009 Item No. 2
Page 5 of 18
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of May 26, 2009
Page 2 of 10
CALL BACK TO ORDER - 7:00 P.M.
ROLL CALL
Chairman Buckley stated Roll -Call will stand as previously called.
CLOSED SESSION REPORT
Deputy City Attorney Mann gave an overview of the Closed Session item and
stated there was no reportable action.
PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 1 MINUTE
There was no one present who wished to speak regarding a non - agenized item.
PUBLIC COMMENTS — AGENDIZED ITEMS — 3 MINUTES
There was no one present who wished to speak regarding an agenized item.
CONSENT CALENDAR
(2) Approval of Redevelopment Agency Minutes
Recommendation:
Approved the following minute(s):
Regular meeting of the Redevelopment Agency — April 28, 2009
(3) Warrant List Dated May 14, 2009
Recommendation:
Authorized payment of Warrant List dated May 14, 2009.
(4) Investment Report — April 2009
Recommendation:
Received and filed.
MOTION was made by Agencymember Magee, second by Agencymember
Hickman and unanimously carried to adopt the Consent Calendar as
recommended.
RDA July 14, 2009 Item No. 2
Page 6 of 18
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of May 26, 2009
Page 3 of 10
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
JOINT PUBLIC HEARING
Notice of the Joint Public Hearing has been duly given and affidavits of
compliance are on file in the Agency Secretary's office.
No written communication has been received by the Agency Secretary's office.
CHAIRMAN BUCKLEY:
Chairman Buckley stated this is a Joint Public Hearing, for the purpose of
discussion and public comment. Chairman Buckley clarified the Redevelopment
Agency and the City Council will determine independently if they choose to
approve this item, the proposed Disposition and Development Agreement (DDA)
with Pottery Court Housing Associates, L.P. and acceptance of the
33433 Summary Report.
Roll Call of Council Members / Agency Members
CHAIRMAN BUCKLEY:
Roll will stand as previously called stating "all City Council and Agency Members
are present."
I will now open the Joint Public Hearing at 7:39 p.m. Executive Director Brady,
please proceed with the staff report.
EXECUTIVE DIRECTOR BRADY:
Executive Director Brady introduced the project known as "Pottery Court" and
then introduced Redevelopment Project Manager Steve McCarty to provide
further details of the project.
REDEVELOPMENT PROJECT MANAGER MCCARTY:
RDA Manager McCarty gave an overview of the project stating in 2008 the
Agency Board selected BRIDGE Housing Corporation (BRIDGE) as an
affordable housing partner. He gave a brief history of the project stating now the
Pottery Court is an affordable housing site of 4.3 acres. Originally it was
RDA July 14, 2009 Item No. 2
Page 7 of 18
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of May 26, 2009
Page 4 of 10
anticipated 88 units could be built, but with the acquisition of additional land the
project can now offer 111 units. Manager McCarty further stated the current
estimate is $3,275,642.57 and the Agency will provide "seller financing" for the
Purchase Price and provide funds for predevelopment and project costs. Total
Agency financing is $4,061,000. He went on to state in 2008 the Agency
committed up to $4,039,000 from available funds from the Agency's Low and
Moderate Income Housing Funds with the intent to build 90 units. The Agency
now requires $22,000 additional authorization from funds in the Agency's Low
and Moderate Income Housing Fund.
CHAIRMAN BUCKLEY:
Are there any questions by members of the City Council or the Agency?
None.
Before we proceed with public comments, has the Agency Secretary, staff or
fellow City Council / Agency Board members received any written
correspondence on this item? If so, let's enter those into the record now. If not,
we will now hear testimony from those present concerning the proposed DDA
and Summary Report.
The Agency Secretary responded she had not, nor had anyone else.
PUBLIC COMMENTS:
Dick Knapp stated he had just spent an hour going over all of the actuals, and
questioned the dollar figure of approximately $6,000,000. stating he determines
each house will cost $237,000 and noted the families are being over charged.
He stated they could purchase a nice house in today's economy for this type of
money. Mr. Knapp declared the numbers provided, did not add up and stated
the Council and the Redevelopment Agency was involved in RICO.
Project Manager McCarty responded justifying the numbers.
The Project Manager from BRIDGE stepped to the podium at the request of
Chairman Buckley to also respond.
Betsy Wilson from Bridge Housing came forward to address Mr. Knapp's
concerns. She stated the cost per unit also includes the purchase of the land.
She gave further detail of expenses: She stated her company has a national
reputation which has been built over 25 years. They are a non - profit company,
and along with the RDA, they have 3 party audits, which is a requirement of the
financing. She stated the hard cost for construction to build each unit is
approximately $100,000 and gave the breakdown due to applications, fees and
permits.
RDA July 14, 2009 Item No. 2
Page 8 of 18
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of May 26, 2009
Page 5 of 10
Agencymember Magee requested Chairman Buckley have Agency Counsel
address Mr. Knapp's allegation of RICO involvement, Chairman Buckley
concurred and made the request.
Agency Counsel Mann stated all of the proceedings regarding this project have
taken place openly and publicly or in Closed Session authorized by the Brown
Act. He stated RICO implies corruption and there is nothing illegal going on. He
noted all of the information is public and has been available for inspection for
several weeks and invited anyone to view these documents if they had any
questions. The Disposition and Development Agreement and the Economic
Report have been available for review and support the numbers.
Agencymember Hickman questioned RDA Manager McCarty asking how much
money the RDA is actually putting into the project. Manager McCarty responded,
stating only $4,061,000 at 3% simple interest, noting only 15 percent of the total
project cost is coming from RDA funds. He also stated the Agency's subsidy is
approximately $36,585 per unit.
Executive Director Brady stated the $4,061,000 is included in the $6 million
referenced by Mr. Knapp.
Treasurer Baldwin stepped forward and stated during times in his career he has
worked with BRIDGE Housing because of their reputation; they are the best
affordable housing developer in the market and truly provide quality.
CHAIRMAN BUCKLEY:
Anyone who did not complete a form would like to speak in favor of the item?
None.
Anyone who wishes to speak in opposition to the item?
None.
Anyone who wishes to address the matter at all?
None.
Seeing no one else who wishes to speak, I will close the Joint Public Hearing at
7:53 p.m.
Are there any final questions by members of the City Council or the Agency?
None.
If there are no further questions, I will turn the meeting over to the Mayor for
consideration by the City Council of the proposed Resolution.
RDA July 14, 2009 Item No. 2
Page 9 of 18
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of May 26, 2009
Page 6 of 10
THE FOLLOWING ITEMS ARE BEFORE THE AGENCY AND CITY COUNCIL
AS SPECIFIED:
(5) REDEVELOPMENT AGENCY ITEM:
Disposition and Development Agreement with Pottery Court Housing
Associates, L.P. and Acceptance of 33433 Summary Report
Recommendation:
Approved Resolution No. 2009 -09, Resolution of the Redevelopment
Agency of the City of Lake Elsinore Approving that Certain Disposition and
Development Agreement by and between the Redevelopment Agency of
the City of Lake Elsinore and Pottery Court Housing Associates, L.P.
(11) CITY COUNCIL ITEM:
Disposition and Development Agreement with Pottery Court Housing
Associates, L.P. and Acceptance of 33433 Summary Report
ITEM DEFERRED BY THE CITY COUNCIL TO THIS JOINT PUBLIC
HEARING SESSION WITH THE REDEVELOPMENT AGENCY
Recommendation:
Approved Resolution No. 2009 -026 of the City Council of the City of Lake
Elsinore, California, approving the sale of Real Property by the
Redevelopment Agency of the City of Lake Elsinore Pursuant to Certain
Disposition and Development Agreement by and between the
Redevelopment Agency of the City of Lake Elsinore and Pottery Court
Housing Associates, L.P.
CITY COUNCIL ACTION ITEM:
Mayor Magee stated the City Council was now in session and will consider and
act on the matter before it:
MOTION was made by Councilmember Bhutta, second by Councilmember
Buckley and unanimously carried to adopt Resolution No. 2009 -026
approving the sale of Real Property by the Redevelopment Agency of the
City of Lake Elsinore Pursuant to Certain Disposition and Development
Agreement by and between the Redevelopment Agency of the City of Lake
Elsinore and Pottery Court Housing Associates, L.P.
RDA July 14, 2009 Item No. 2
Page 10 of 18
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of May 26, 2009
Page 7 of 10
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
Passed and approved the following Resolution:
"Resolution No. 2009 -026 of the City Council of the City of Lake Elsinore,
California, approving the sale of Real Property by the Redevelopment
Agency of the City of Lake Elsinore Pursuant to Certain Disposition and
Development Agreement by and between the Redevelopment Agency of the
City of Lake Elsinore and Pottery Court Housing Associates, L.P."
Mayor Magee concluded the City Council Item No. 11 and turned the
proceedings back to Agency Chairman Buckley at 7:52 p.m. to conclude the
Agency portion of the meeting.
AGENCY ACTION ITEM:
Chairman Buckley stated the Redevelopment Agency was now in session at
7:52 p.m. and will consider and act on the matter before it, Redevelopment
Agency Item No. 5:
Resolution No. 2009 -09, Resolution of the Redevelopment Agency of the
City of Lake Elsinore Approving that Certain Disposition and Development
Agreement by and between the Redevelopment Agency of the City of
Lake Elsinore and Pottery Court Housing Associates, L.P.
MOTION was made by Vice Chair Bhutta second by Agencymember
Hickman and unanimously carried to adopt Resolution No. 2009 -09,
Resolution of the Redevelopment Agency of the City of Lake Elsinore
Approving that Certain Disposition and Development Agreement by and
between the Redevelopment Agency of the City of Lake Elsinore and
Pottery Court Housing Associates, L.P.
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
RDA July 14, 2009 Item No. 2
Page 11 of 18
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of May 26, 2009
Page 8 of 10
Regarding the Joint Public Hearing, Resolutions were approved by both the City
Council and the Redevelopment Agency to approve the Disposition and
Development Agreement with Pottery Court Housing Associates, L.P. and
acceptance of 33433 Summary Report.
CHAIRMAN BUCKLEY:
Closed the Joint Public Hearing section of the Agenda at 7:53 p.m.
BUSINESS ITEM(S)
(6) Agency Acquisition of City Real Property for Pottery Court Affordable
Housing Project APPROVED
Recommendation:
(1) Approved Resolution No. 2009 -10 Resolution of the
Redevelopment Agency of the City of Lake Elsinore, California,
Approving the Acquisition of Certain Real Property from the City of
Lake Elsinore, California.
(2) Authorized the Executive Director to execute the Certificate of
Acceptance any other ancillary documents necessary to effectuate
the transfer of the City -owned Real Property to the Agency.
Executive Director stated this was also a Joint Item, earlier in the meeting the
City Council took action to sell the property to the Agency, and now the Agency
needed to vote to purchase the property and to process the appropriate
documents.
MOTION was made by Agencymember Magee, second by Agencymember
Bhutta and unanimously carried to adopt Resolution No. 2009 -10 approving
the acquisition of certain Real Property from the City of Lake Elsinore,
California, and to authorize the Executive Director to execute the Certificate
of Acceptance and any other ancillary documents necessary to effectuate
the transfer of the City -owned Real Property to the Agency.
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
RDA July 14, 2009 Item No. 2
Page 12 of 18
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of May 26, 2009
Page 9 of 10
(7) Fiscal Year 2008 -09 Third Quarter Budget Report APPROVED
Recommendation:
Approved the revenue and expenditure budget adjustments proposed for
Third - Quarter Fiscal Year 2008 -2009.
Acting Administrative Services Director Riley gave an overview of the item,
stating the Report reflects a reduction in tax increment due to the reappraisal of
property values in all areas, which is the primary contributor to the $3.5 million
decrease in revenue.
Agencymember Hickman questioned if the drop of revenue is due to the Toss of
property taxes.
Mr. Riley stated the values of property taxes have declined; residents are having
their home's value reassessed which means a reduction in property taxes for
them to pay, resulting in less revenue to the cities.
MOTION was made by Agencymember Hickman second by Agencymember
Bhutta and unanimously carried to approve the revenue and expenditure
budget adjustments proposed for Third - Quarter Fiscal Year 2008 -2009.
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES
None.
EXECUTIVE DIRECTOR COMMENTS
None.
BOARDMEMBER(S) COMMENTS
None.
RDA July 14, 2009 Item No. 2
Page 13 of 18
Lake Elsinore Redevelopment Agency Agenda
Regular Meeting of May 26, 2009
Page 10 of 10
ADJOURNMENT
There being no further business to come before the Redevelopment Agency
(RDA) Chairman Buckley adjourned the Redevelopment Agency portion of the
meeting at 7:54 p.m. for the City Council to conclude their meeting.
Mayor Magee reconvened the City Council portion of the Joint Public Hearing at
7:54 p.m. and proceeded with the rest of the City Council Meeting.
The next regular meeting of the Redevelopment Agency of the City of Lake
Elsinore is scheduled for Tuesday, June 9 2009, at 5:00 p.m. for Closed
Session items in the Cultural Center located at 183 N. Main Street, Lake
Elsinore, CA 92530 followed by the Regular meeting at 7:00 p.m.
Debora Thomsen
Debora Thomsen, CMC
Redevelopment Agency Secretary
City of Lake Elsinore, California
RDA July 14, 2009 Item No. 2
Page 14 of 18
Page 1 of 4
CITY OF LAKE ELSINORE
REDEVELOPMENT AGENCY MEETING
MINUTES
June 23 2009
(not official until approved)
Regular meeting of the Lake Elsinore Redevelopment Agency was held on
Tuesday, May 26 2009 in the Cultural Center, located at 183 N. Main Street,
Lake Elsinore, CA 92530.
The meeting was called to order at 9:01 p.m. by Chairman Buckley who noted all
Agency members were present.
PRESENT: Chairman Buckley, Vice Chair Bhutta, Agency member
Hickman, Agency member Magee, Agency member Melendez.
ABSENT: None.
Also present: Executive Director Brady, Agency Counsel Liebold, and Agency
Secretary Thomsen.
Staff members present included Acting Administrative Services Director Riley,
Acting Community Development Director Weiner, Public Works Director / City
Engineer Seumalo, Director of Lake and Aquatics Kilroy, Parks and Recreation
Director Gonzales, Police Chief Cleary, Fire Chief Hendershot, and Information /
Communications Manager Dennis.
CLOSED SESSION
(1) CONFERENCE WITH LEGAL COUNSEL -- ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to subdivision (b) of Gov't Code
Section 54956.9 1 potential case
CLOSED SESSION REPORT
City Attorney Leibold gave an overview of the Closed Session stating there was
not reportable action.
PUBLIC COMMENTS — NON - AGENDIZED ITEMS —1 MINUTE
There was no one present who wished to speak regarding a non - agenized item.
RDA July 14, 2009 Item No. 2
Page 15 of 18
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of June 23, 2009
Page 2 of 4
PUBLIC COMMENTS — AGENDIZED ITEMS — 3 MINUTES
There was no one present who wished to speak regarding an agenized item.
CONSENT CALENDAR
(2) Approval of Redevelopment Agency Minutes
Recommendation:
Approved the following minute(s):
Redevelopment Agency / City Council / Planning Commission / Public
Safety Advisory Commission SPECIAL Joint Study Session Meeting
Minutes — May 6, 2009.
(3) Warrant List Dated June 15, 2009
Recommendation:
Authorized payment of Warrant List dated June 15, 2009.
(4) Investment Report — May 2009
Recommendation:
Received and filed.
MOTION was made by Vice Chair Bhutta, second by Agencymember
Melendez and unanimously carried to adopt the Consent Calendar as
recommended.
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
PUBLIC HEARING(S)
None.
BUSINESS ITEM(S)
(5) Budget Adoption (RDA)
Recommendation:
Adopted Resolution No. 2009 -011 adopting the Redevelopment Agency
Operating Budget for the Fiscal Year 2009 -2010.
RDA July 14, 2009 Item No. 2
Page 16 of 18
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of June 23, 2009
Page 3 of 4
Acting Administrative Services Director Riley gave an overview of the
Redevelopment Agency (RDA) revenues and expenditures stating the format of
the report was revised. He noted State Proposition No. 8 which is related to
State Proposition No. 13, allows property taxes to be readjusted in times of
economic downturn. He noted that this was the main reason revenues had
dropped 16 percent in tax increment revenue during Fiscal Year 2008 -2009. He
clarified the $4 million which is set aside for the Pottery Court project, should it be
approved, is not an impact to the RDA budget. Funding for Pottery Court if
needed, will come out of the Low and Moderate Housing Fund, not the RDA
General Fund.
Agencymember Hickman questioned Page 3 of 17 regarding the revenues and
expenditures, confirming the revenue is $20 million and the expenses are
$19 million, leaving only $1 million to be set aside. Mr. Riley confirmed this.
Councilmember Hickman then asked if there was any way to slow the expenses
down. Mr. Riley responded, there may be left -over funds from projects when
they are completed that could be set aside, noting $2.1 million is currently
budgeted for these projects.
Chairman Buckley gave an overview of the RDA balances, and stated
Redevelopment money keeps the tax local and pays Bond debt. He also noted
the City could use an economic boost and generally for the 4 of July revenue is
generated for the City. Chariman Buckley offered to pay $15,000. for the
fireworks out of the RDA budget. He estimated by the end of this new Fiscal
Year, the estimated revenue would be $23 million.
MOTION was made by Agencymember Magee, second by Agencymember
Melendez to approve the Operating Budget as recommended.
Chairman Buckley offered a substitute Motion to approve the Operating
Budget and include the expense of $15,000. to pay for fireworks. The
Motion failed for a lack of a second.
MOTION was made by Agencymember Magee, second by Agencymember
Melendez and unanimously carried to adopt the Redevelopment Agency
Operating Budget for the Fiscal Year 2009 -2010 as recommended.
AYES: Bhutta, Buckley, Hickman, Magee, Melendez.
NOES: None.
RDA July 14, 2009 Item No. 2
Page 17 of 18
Lake Elsinore Redevelopment Agency Meeting
Regular Meeting Minutes of June 23, 2009
Page 4 of 4
Passed and adopted the following Resolution:
"Resolution No. 2009 -011 — A Resolution the Redevelopment Agency of the
City of Lake Elsinore, California, adopting the Redevelopment Agency
Operating Budget for the Fiscal Year 2009 - 2010."
PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES
There was no one present who wished to speak regarding a non - agenized item.
EXECUTIVE DIRECTOR COMMENTS
None.
LEGAL COUNSEL COMMENTS
None.
BOARDMEMBER(S) COMMENTS
None.
ADJOURNMENT
There being no further business to come before the Redevelopment Agency
(RDA) Chairman Buckley adjourned the Redevelopment Agency portion of the
meeting at 9:09 p.m. for the City Council to conclude their meeting.
Mayor Magee reconvened the City Council portion of the Joint Public Hearing at
9:09 p.m. and proceeded with the rest of the City Council Meeting.
The next regular meeting of the Redevelopment Agency of the City of Lake
Elsinore is scheduled for Tuesday, July 14 2009, at 5:00 p.m. for Closed
Session items in the Cultural Center located at 183 N. Main Street, Lake
Elsinore, CA 92530 followed by the Regular meeting at 7:00 p.m.
Debora Thomsen
Debora Thomsen, CMC
Redevelopment Agency Secretary
City of Lake Elsinore, California
RDA July 14, 2009 Item No. 2
Page 18 of 18
CITY OF i/�c�,
LAKE LSINO R-
E
` DREAM EXTREME,
REPORT TO THE REDEVELOPMENT AGENCY
TO: HONORABLE CHAIRMAN
AND MEMBERS OF THE REDEVELOPMENT AGENCY
FROM: ROBERT A. BRADY
EXECUTIVE DIRECTOR
DATE: JULY 14, 2009
SUBJECT: WARRANT LIST DATED JUNE 30, 2009
Discussion
The warrant list is a listing of all general checks issued since the prior Warrant List.
Recommendation
Authorize payment of Warrant List dated June 30, 2009.
Prepared By: Frances Ramirez
Account Specialist I
Reviewed By: James R. Riley
Acting Director o Administrative Services
Approved By: Robert A. Brady11,
Executive Directo
RDA July 14, 2009 Item No. 3
Page 1 of 3
JUNE 30, 2009 LAKE ELSINORE WAR I' ANT LIST
REDEVELOPMENT AGENCY
CHECK# VENDOR NAME AMOUNT
6683 BURKE, WILLIAMS & SORENSEN, L.L.P. $ 21,019.25
6684 C.R. & R. DISPOSAL, INC. 102.73
6685 CITY OF LAKE ELSINORE 96,854.49
6686 E.V.M.W.D. 9,208.26
6687 ELSINORE WATER DISTRICT 4,294.39
6688 KEYSER MARSTON ASSOCIATES 6,782.49
6689 LAKE ELSINORE UNIFIED SCHOOL DISTRICT 15,075.74
6690 MT. SAN JACINTO JR. COLLEGE 1,808.06
6691 PRODUCTION VIDEO 30.00
6692 RIVERSIDE COUNTY OFFICE OF EDUCATION 3,732.79
GRAND TOTAL $ 158,908.20
RDA July 14, 2009 Item No. 3
7/2/2009 Warrant 063009 1 of 1 Page 2 of 3
JUNE 30. 2009 LAKE ELSINORE WARRANT
REDEVELOPMENT AGENCY SUMMARY
ARC'
FUN ;{D# FUND ]DESCRIPTION TO TAL,
910 R.D.A. AREA 1 FUND $ 49,059.51
914 20% HOUSING SET ASIDE 53,828.54
920 R.D.A. AREA 2 FUND 440.83
930 R.D.A. AREA 3 FUND 440.83
933 DEBT SERVICE FUND AREA 3 34,119.24
952 C.F.D. 90 -2 DEBT SERVICE FUND 21,019.25
GRAND TOTAL $ 158,908.20
RDA July 14, 2009 Item No. 3
7/2/2009 Warrant 063009 1 of 1 Page 3 of 3
CITY OF !.
LADE aLSINORE
REDEVELOPMENT
■I`' AGENCY
REPORT TO REDEVELOPMENT AGENCY
TO: HONORABLE CHAIRMAN AND MEMBERS OF THE
REDEVELOPMENT AGENCY
FROM: ROBERT A. BRADY
EXECUTIVE DIRECTOR
DATE: JULY 14, 2009
SUBJECT: DOWNTOWN MASTER PLAN
Backqround
Based on public input received in association with both the Civic Center
Competition and the General Plan Update process, it became evident that a
comprehensive study and plan were needed for the overall Downtown Lake
Elsinore area. The City's Redevelopment Agency subsequently authorized City
Planning Division staff to team with a qualified private consulting firm to prepare
a land use plan and associated development standards for a defined downtown
study area. The area is generally located south of Interstate 15 and north of the
lakefront between Riley Street and Chestnut Street.
The national architecture and planning firm Cooper Carry was selected along
with their various sub - consultants and commenced working on the Downtown
Master Plan project in November 2008. The consultant's initial task was to
become familiar with the myriad of issues associated with the downtown area
and tour the area in order to experience the existing conditions and identify the
various types of constraints and opportunities. The team then obtained input from
City residents and downtown merchants and property owners.
Thursday December 4 and Friday December 5, 2008 — Representatives from the
economic sub - consultant firm of Economic & Planning Systems conducted a
series of interviews at the City Cultural Center with various downtown
stakeholder groups including merchants, local developers and realtors to
ascertain existing economic conditions within the downtown area and the City as
a whole.
Saturday Morning December 6, 2008 — The first interactive public workshop was
conducted at the City Cultural Center. The purpose of the workshop was to
identify the various needs and perceptions associated with the downtown master
plan study area. Moreover, clear goals needed to be formulated.
RDA July 14, 2009 Item No. 4
Page 1 of 6
Downtown Master Plan
July 14, 2009
Page 2 of 6
Some of the main points garnered from the workshop participant's responses
included the following:
• Need for large public area at the lake front.
• Need for a strong downtown connection to the lake.
• Need to improve actual or perceived safety issues
downtown.
• Need to create a civic center in the downtown area.
• Need to "reuse" old buildings downtown.
Workshop participants were also asked to identify the top five investments which
should be made in the downtown area which included the following:
• Pier
• Downtown Street Improvements
• City to Publicly Purchase Land
• Lake Boardwalk
• City Hall
The design team then compiled all the information gathered from their document
review and field research along with the various interviews and workshop input
and commenced drafting a conceptual land use plan for the downtown study
area. Once the land use plan began to take shape, the team's economic sub -
consultants commenced drafting a market study for the downtown area so as to
ensure that the envisioned land use plan was economically viable based on
future anticipated market conditions.
Thursday Evening January 29, 2009 — The second interactive public workshop
was conducted at the City Cultural Center. The main purpose of the workshop
was to unveil the conceptual land use plan to the workshop participants and to
receive additional input on topics that needed further clarification after the first
workshop.
Conceptual Land Use Plan
The main concept of the conceptual land use plan is to reconnect the existing
downtown area with the lakefront to the south. The concept would be achieved
by realigning and extending Main Street directly to the water. Moreover,
Lakeshore Drive would be extended west across the existing drainage channel.
Given the length of Main Street between the 1 -15 freeway and the lake, and the
public's propensity to walk a limited distance, the design team has created five
distinct districts that can be walked in five minutes time. The districts include the
following:
RDA July 14, 2009 Item No. 4
Page 2 of 6
Downtown Master Plan
July 14, 2009
Page 3 of 6
Gateway District — This area is composed of the block between Flint Street and I-
15. The district would consist primarily of office buildings up to six stories tall.
Limited retail space would also be provided to serve the offices.
Garden District — Just south of the Gateway District, the Garden District
envisions primarily residential uses allowing residents to live and shop
downtown. The Main Street frontage is planned to consist of multi - family housing
which appear to be large historic single - family residences with gardens abutting
the roadway. Small retail or office uses could be established on the ground floor
of the residential buildings.
Cultural District — Just north of the Historic District, the conceptual land use plan
recommends diverting Main Street around a circle containing a new public library
and museum, and the historic Armory building creating a unique environment.
The Cultural District also anticipates a performing arts center, which would be
supplemented by mixed -use retail and residential uses.
Historic District — The heart of downtown Lake Elsinore comprises the three block
stretch of Main Street spanning from Heald Avenue to Prospect Street. The
primary intent of the Historic District is to preserve the architectural facades of
the buildings while allowing for the upgrading of the buildings with a mixture of
uses enabling the area to serve as the City's downtown commercial core long
into the future.
Waterfront District — The conceptual land use plan saves the best for last with
significant new investment by the waterfront. Improvements include a City Hall
and Civic Center, other governmental offices, a town square, retail space,
restaurants, and mixed use development with residential above retail. In addition,
the plan envisions an upscale resort hotel adjacent to a new pier on the lake side
of Lakeshore Drive. A large waterfront park is also anticipated which will feature
a variety of active uses and programmed space. Main Street would terminate on
a new pier which would feature a large ferris wheel ride, shops and a restaurant,
as well as stands for temporary uses such as a farmers market and other
ongoing events.
Each of the five proposed districts would have its own specific theme and feel
regarding architectural styles, signage and streetscapes. A series of public open
spaces with public art would be established throughout the various districts. In
addition, several shared public parking structures would be constructed
throughout the downtown area so as to serve the parking needs of the general
public.
The land use plan and the various issues associated with its implementation
have been integrated into a comprehensive Downtown Master Plan document
(See Attachment No. 1). The document serves as a bold methodology for the
long term renewal and revitalization of the City's historic downtown area. An
RDA July 14, 2009 Item No. 4
Page 3 of 6
Downtown Master Plan
July 14, 2009
Page 4 of 6
integrated process has been utilized to plan and design the land use, urban form,
circulation and infrastructure (both grey and green) to create both a high- density
pedestrian oriented downtown and a robust world class waterfront park and pier.
The plan has the potential to transform the downtown area into a regional
destination with landmarks, land uses and amenities that will create a viable,
livable and memorable place that the citizens of Lake Elsinore will be proud of for
generations to come.
Downtown Master Plan Market Study
Subsequent to the drafting of the Conceptual Land Use Plan, the economic sub -
consultants completed the "Revised Draft Lake Elsinore Downtown Market
Study" (See Attachment No. 3). The study examined the market potential for
residential, retail, office and hotel development within the downtown study area.
The study estimates the following potential real estate absorption rates:
Land Use Demand Through 2013 Demand Through 2035
Residential 120 -200 Units 790 -1,470 Units
Retail 9,000- 13,000 Square Feet 63,000- 95,000 Square Feet
Office 12,000 Square Feet 80,000 Square Feet
Hotel 40 -80 Rooms 150 -300 Rooms
Downtown Code
Upon completion of the Conceptual Land Use Plan, the planning sub - consultant
firm Downtown Solutions also commenced drafting a Downtown Code (See
Attachment No. 2). The code is a hybrid type of regulatory control which blends
conventional zoning, form -based zoning, and municipal (non- zoning) ordinances
to create the customized development standards needed to implement the
Downtown Master Plan. The code serves to address new development on private
property, describes how it will relate to the public realm, regulates permitted
uses, and will include standards for ensuring compatibility of the differing uses in
what is planned to be an urban environment.
Upon adoption, the code will be the single regulatory document for development
within the master plan area. The code will supersede the existing zoning code,
and other development standards and guidelines currently applicable to the
downtown area, although it will make reference to the zoning code wherever
appropriate. Topics addressed in the code include, but are not limited to the
following:
• Provision for appropriate building forms and frontages based on the
specific building typology.
• Provision for reduced parking requirements.
RDA July 14, 2009 Item No. 4
Page 4 of 6
Downtown Master Plan
July 14, 2009
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• Provision for specific storefront design parameters dealing with solid to
void ratios, design basics and sign locations.
• Specification of maximum allowable square footages for some ground
floor retail uses.
• Regulation of outdoor dining and how it impacts the pedestrian
environment.
The Downtown Code will also include special provisions designed to ensure that
the goals of the master plan are implemented. The provisions will include the
following:
1. Protection for Non - Conforming Uses and Structures — The code will
provide that existing uses within the master plan boundary may continue
indefinitely and owners will be allowed to make limited additions, remodel
and fully maintain their property during the interim. It will only be when an
owner proposes to put a new development on their property that the code
requirements will apply.
2. Minimum Development Site — In order to ensure that new development
occurs at a scale that will produce the urban environment envisioned in
the master plan, the code will require a minimum of one half acre in order
to provide for development of sufficient scale to support the intensity of
use specified by the FAR's or residential densities of the plan. This
requirement will not be a minimum lot size; it only affects the size of a
single development project, which will usually be achieved by combining
several smaller lots into a building site. This may occur when a single
entity purchases adjacent lots or when adjacent neighboring owners enter
into a partnering agreement.
Improvement Projects and Potential Funding Mechanisms
The Downtown Master Plan serves as a long -term vision document for the
downtown area which could take twenty to thirty years to fully develop based on
future local and national economic conditions. However, there are a few
development projects in the downtown area which are either planned or being
considered that can serve as catalysts to ensure that the momentum of the
master plan does not wane within a short period of time. These projects include
the Pottery Court affordable housing complex to be developed at the southeast
corner of Langstaff and Pottery Streets, and the Business Incubator facility to be
sited across from the existing Cultural Center. In addition, staff continues to
receive inquires about potential private developments on an ongoing basis.
In order to achieve the vision outlined in the master plan document, a variety of
public improvement projects will be required over time including several street
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Downtown Master Plan
July 14, 2009
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and infrastructure improvement projects which should be considered for future
inclusion in the City's Capital Improvement Program. These projects vary in
complexity and cost. The project consultants have drafted an Improvement
Projects & Potential Funding Mechanism List (See Attachment 4) which outlines
the necessary projects along with potential funding mechanisms. It should be
noted that this list of funding mechanisms is not exhaustive. As each specific
project moves forward, staff will seek additional applicable funding sources
available at that time.
Next Steps in the Process
Staff requests that the Redevelopment Agency identify necessary modifications
to the attached documents or, if comfortable with the approach and documents,
direct staff to incorporate them into the General Plan EIR. Staff will then bring the
entire Downtown Master Plan package before the Planning Commission,
Redevelopment Agency and City Council for final consideration and adoption at
the end of the year along with the General Plan Update, and Housing Element
which will all be integrated into a single Environmental Impact Report.
Prepared By: Matthew C. Harris, 14` C
Senior Planner
Reviewed By: Tom Weiner,
Acting Director of Com • nity Development
Approved By: Robert A. Brady,
Executive Directo 1�
1
Attachments
1. Lake Elsinore Downtown Master Plan Document
2. Downtown Code Document
3. Lake Elsinore Downtown Master Plan Revised Draft Market Study
Document
4. Improvement Projects & Potential Funding Mechanisms List
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