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Home My WebLink About03/25/2008 RDA Reports CITY OF LAKE ELSINORE REDEVELOPMENT AGENCY AGENDA THOMAS BUCKLEY, CHAIRMAN WWW.LAKE- ELSINORE.ORG ROBERT SCHIFFNER, VICE - CHAIRMAN (951) 674 -3124 PHONE DARYL HICKMAN, MEMBER (951) 674 -2392 FAX GENIE KELLEY, MEMBER LAKE ELSINORE CULTURAL CENTER ROBERT MAGEE, MEMBER 183 NORTH MAIN STREET ROBERT BRADY, EXECUTIVE DIRECTOR LAKE ELSINORE, CA 92530 ****************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** TUESDAY, MARCH 25, 2008 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 REAL PROPERTY NEGOTIATOR (Govt. Code § 54956.8) Property: APN 374 - 263 -001 Agency Negotiator: Executive Director Brady Negotiating Parties: Lake Elsinore Redevelopment Agency and David Reynolds Under Negotiation: Price and terms of payment (1 b) CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) Property: APN 373 - 071 -018 and 373 - 071 -004 through -016 Agency Negotiator: Executive Director Brady Negotiating parties: Lake Elsinore Redevelopment Agency and JLJ LP and Elsinore Country Club Holdings LP Under negotiation: Price and terms of payment CALL BACK TO ORDER — 7:00 P.M. 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.) 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 Boardmember or any member of the public requests separate action on a specific item.) (2) Approval of Redevelopment Agency Minutes Recommendations: Approve the following minutes: a) Joint City Council /Redevelopment Agency Study Session — March 11, 2008. b) Regular Meeting — March 11, 2008. (3) Warrant List Dated March 14, 2008 Recommendation: Authorize payment of Warrant List dated March 14, 2008. (4) Investment Report — February 2008 Recommendation: Receive and file. PUBLIC HEARINGS (5) Industrial Design Review No. 2007 -01 — Brody Industrial Recommendation: Concur with City Council action. BUSINESS ITEMS (6) Affordable Housing RFQ Recommendation: Direct staff to proceed with the drafting of a letter of intent outlining the roles and responsibilities for BRIDGE Housing and the Redevelopment Agency in a public /private partnership to collaboratively work toward the fulfillment of Agency inclusionary requirements. (7) A Proposed Affordable Housing Development (Lakeshore Village) Recommendation: Direct staff to develop a financial commitment letter and report for Agency consideration upon the approval of the Coalition's project by the Planning Commission. (8) First Extension of Time for Vesting Tentative Tract Map No. 34017 Recommendation: Concur with City Council action. (9) Industrial Design Review No. 2007 -02 for the Design and Construction of an Industrial Complex Consisting of Nine Buildings and Associated Improvements Recommendation: Concur with City Council action. PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES EXECUTIVE DIRECTOR COMMENTS LEGAL COUNSEL COMMENTS BOARDMEMBER COMMENTS ADJOURNMENT The Lake Elsinore Redevelopment Agency will adjourn to a regular meeting to be held on Tuesday, March 25, 2008, 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, VIVIAN M. MUNSON, 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. VIVIAN M. MUNSOt DATE AGENCY SECRETARY CITY OF LADE 5 LSINOR E DREAM EXTREME, REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY CITY MANAGER DATE: MARCH 25, 2008 SUBJECT: CLOSED SESSION REPORT Discussion (1 a) CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Govt. Code § 54956.8) Property: APN 374 - 263 -001 Agency Negotiator: Executive Director Brady Negotiating Parties: Lake Elsinore Redevelopment Agency and David Reynolds Under Negotiation: Price and terms of payment (1 b) CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Gov't Code §54956.8) Property: APN 373 - 071 -018 and 373 - 071 -004 through -016 Agency Negotiator: Executive Director Brady Negotiating parties: Lake Elsinore Redevelopment Agency and JLJ LP and Elsinore Country Club Holdings LP Under negotiation: Price and terms of payment Recommendation Recess prior to adjournment of tonight's meeting in order to conduct an executive (closed) session. Approved by: Robert A. Brady i �r► Executive Director a" Agenda Item No. 1 Page 1 of 1 CITY • LADE OLSINOR DREAM EXTREME. REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: MARCH 25, 2008 SUBJECT: APPROVAL OF MINUTES Discussion The following Redevelopment Agency minutes are for approval as follows: a) Joint City Council /Redevelopment Agency Study Session — March 11, 2008 b) Regular Meeting — March 11, 2008 Recommendation Concur with City Council approval of all submitted Joint City Council /Redevelopment Agency Study Session Minutes and all regular meeting Redevelopment Agency minutes as submitted. Prepared by: Vivian M. Muns n f Agency Secreta Approved by: Robert A. Brady 4 ig` Executive Directo Agenda Item No. 2 Page 1 of 6 MINUTES REDEVELOPMENT AGENCY MEETING CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA TUESDAY, MARCH 11, 2008 CALL TO ORDER — 5:00 P.M. Chairman Buckley called the Redevelopment Agency meeting to order at 5:00 p.m. ROLL CALL PRESENT: CHAIRMAN BUCKLEY VICE -CHAIR SCHIFFNER MEMBER HICKMAN MEMBER KELLEY MEMBER MAGEE ABSENT: NONE CLOSED SESSION Agency Counsel Leibold indicated the following item was to be discussed during Closed Session: (1) CONFERENCE WITH REAL PROPERTY NEGOTIATOR (Govt. Code § 54956.8) Property: APN 374 - 263 -001 Agency Negotiator: Executive Director Brady Negotiating Parties: City of Lake Elsinore Redevelopment Agency and David Reynolds Under Negotiation: Price and terms of payment. Agency Counsel indicated any action taken during Closed Session would be reported on during the regular portion of the meeting. Regular Redevelopment Agency meeting was recessed into Closed Session at 5:00 p.m. RECONVENE IN PUBLIC SESSION (7:00 P.M) ROLL CALL — 7:00 P.M. 1 Agenda Item No. 2 Page 2 of 6 , PRESENT: CHAIRMAN BUCKLEY VICE -CHAIR SCHIFFNER MEMBER HICKMAN MEMBER KELLEY MEMBER MAGEE ABSENT: NONE Also present were Executive Director Brady, Agency Counsel Leibold, Administrative Services Director Pressey, Captain Fetherolf, Information /Communications Manager Dennis, Director of Public Works Seumalo, Director of Community Development Preisendanz, Director of Parks & Recreation Gonzales, City Treasurer Weber, Lake & Aquatic Resources Director Kilroy, Planning Manager Weiner and Clerk of the Board Munson. CLOSED SESSION REPORT Agency Counsel Leibold reported on discussions undertaken during Closed Session. No reportable action was taken. PUBLIC COMMENTS — NON - AGENDIZED ITEMS —1 MINUTE There were no comments from the public. PUBLIC COMMENTS — AGENDIZED ITEMS — 3 MINUTES There were no comments from the public. AGENCY APPROVES CONSENT CALENDAR NO. 2 THROUGH 4 The following items were listed on the Consent Calendar for Agency approval: (2) Approval of Redevelopment Agency Minutes Recommendation: Approve the following minutes: a) Joint City Council /Agency Study Session — July 24, 2007. b) Regular Meeting — July 24, 2007. c) Joint City Council /Agency Study Session — February 26, 2008. d) Regular Meeting — February 26, 2008. (3) Warrant List Dated February 28, 2008 Recommendation: Authorize payment of Warrant List dated February 28, 2008. 2 Agenda Item No. 2 Page3of6 (4) Amendment to City Manager's Employment Agreement Recommendation: Concur with City Council action. It was moved by Member Kelley, and seconded by Member Hickman to approve Consent Calendar Item Nos. 2 through 4. The following vote resulted: AYES: CHAIRMAN BUCKLEY VICE -CHAIR SCHIFFNER MEMBER HICKMAN MEMBER KELLEY MEMBER MAGEE NOES: NONE ABSENT: NONE ABSTAIN: NONE PUBLIC HEARINGS (5) AGENCY CONCURS WITH CITY COUNCIL ACTION BY ADOPTING A RESOLUTION ADOPTING MITIGATED NEGATIVE DECLARATION FOR CAPITAL IMPROVEMENTS PROJECT NO. 4237; CITY OF LAKE ELSINORE BOAT LAUNCH FACILITY IMPROVEMENTS PROJECT It was moved by Vice -Chair Schiffner, and seconded by Member Hickman to concur with City Council action. The following vote resulted: AYES: CHAIRMAN BUCKLEY VICE -CHAIR SCHIFFNER MEMBER HICKMAN MEMBER KELLEY MEMBER MAGEE NOES: NONE ABSENT: NONE ABSTAIN: NONE 3 Agenda Item No. 2 Page 4 of 6 BUSINESS ITEMS There were no business items. PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES There were no comments from the public. EXECUTIVE DIRECTOR COMMENTS No comments. LEGAL COUNSEL COMMENTS No comments. MEMBER COMMENTS No comments. ADJOURNMENT It was the consensus of the Redevelopment Agency to adjourn to a regular meeting on March 25, 2008, at 5:00 p.m. at the Cultural Center located at 183 N. Main Street, Lake Elsinore, CA, 92530. The following vote resulted: AYES: CHAIRMAN BUCKLEY VICE -CHAIR SCHIFFNER MEMBER HICKMAN MEMBER KELLEY MEMBER MAGEE NOES: NONE ABSENT: NONE ABSTAIN: NONE 4 Agenda Item No. 2 . Page 5 of 6 Chairman Buckley adjourned the meeting at 7:32 p.m. THOMAS BUCKLEY, CHAIRMAN REDEVELOPMENT AGENCY ATTEST: VIVIAN M. MUNSON AGENCY SECRETARY 5 Agenda Item No. 2 Page 6 of 6 C ITY OF LA U LSINOR DREAM EXTREME, lev REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: MARCH 25, 2008 SUBJECT: WARRANT LIST DATED MARCH 13, 2008 Discussion The warrant list is a listing of all general checks issued since the prior warrant list. Recommendation Authorize payment of Warrant List dated March 13, 2008. Prepared By: Matt N. Pressey Director Of Administrative Services Approved By: Robert A. Brady !' Executive Director ' Agenda Item No. 3 Page 1 of 3 MARCH 13, 2008 LAKE ELSINORE WARRANT REDEVELOPMENT AGENCY SUMMARY FUN D# FUND DESCRIPTION TOTAL. 910 R.D.A. AREA 1 FUND $ 202.40 913 DEBT SERVICE FUND AREA 1 3,510.52 914 20% HOUSING SET ASIDE 4,751.17 920 R.D.A. AREA 2 FUND 506.00 923 DEBT SERVICE FUND AREA 2 5,533.23 930 R.D.A. AREA 3 FUND 5,302.71 933 DEBT SERVICE FUND AREA 3 _ 189.46 952 C.F.D. 90 -2 TUSCANY HILLS DEBT SERVICE FUND 171,995.63 956 C.F.D. 90 -2 2007A TUSCANY HILLS DEBT SERVICE FUND 165,150.00 GRAND TOTAL $ 357,141.12 3/18/2008 Warrant 031308 1 of 1 Agenda Item No. 3 Page 2 of 3 MARCH 13, 2008 LAKE ELSINORE WARRANT LIST REDEVELOPMENT AGENCY CHECK# VENDOR NAME AMOUNT 5930 URBAN FUTURES INCORPORATED $ 2,000.00 5931 NBS 2,706.72 5932 UNION BANK OF CALIFORNIA 342,172.89 5933 LEIBOLD, MCCLENDON & MANN 10,261.51 TOTAL $ 357,141.12 3/18/2008 Warrant 031308 1 of 1 Agenda Item No. 3 Page 3 of 3 CITY OF i��. LAKE oLSINORE 1 DREAM EXTREME. REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: MARCH 25, 2008 SUBJECT: INVESTMENT REPORT — FEBRUARY 2008 Discussion The Investment Report is a listing of all funds invested for the Redevelopment Agency as of the date shown on the report. Recommendation Receive and file. Prepared By: James R. Riley 41R; Finance Manager I/ Reviewed By: Matt N. Presse Director of Admini tive Services/ RDA Treasurer Approved By: Robert A. Brady 40 Executive Director Agenda Item No. 4 Page 1 of 2 REDEVELOPMENT AGENCY FOR THE CITY OF LAKE ELSINORE MONTHLY REPORT OF INVESTMENTS FEBRUARY 2008 INTEREST DATE MATURITY RATE PURCHASED RATE AMOUNT Local Agency Investment Fund 4.161% Daily 24 -Hour $ 26,131,243.96 INVESTMENT TOTAL $ 26,131,243.96 I certify that this report accurately reflects all pooled investments and it is in conformity with the investment policy as approved by the City Council on June 26, 2007. A copy of this policy is available in the office of the City Clerk. The pooled investments shown above provide sufficient cash flow liquidity to meet the next six months estimated expenditures. Matt N. Presse Investment Office March 25, 2008 Date Agenda Item No. 4 Page 2of2 CITY OF ice. • LADE Q LSITIORE , • DREAM EXTREME. REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: MARCH 25, 2008 SUBJECT: INDUSTRIAL DESIGN REVIEW NO. 2007-01 — BRODY INDUSTRIAL Recommendation: Concur with City Council action. Approved by: Robert A. Brady Executive Directo Agenda Item No. 5 Page 1 of 1 CITY OF • LAI(E 9 LSINORE DREAM EXTREME.. REPORT TO REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: MARCH 25, 2008 SUBJECT: AFFORDABLE HOUSING RFQ Background On August 28, 2007, the Agency Board directed staff to proceed with a Request for Qualifications (RFQ) to select an affordable housing developer to proactively partner with in the development of affordable housing. This strategy provides the opportunity to form a public /private partnership to efficiently develop affordable housing by leveraging the resources of the Agency with the additional skills, funding sources, and economies of scale brought by working with an experienced affordable housing developer. The Agency issued the RFQ on September 4, 2007 and received eleven (11) submissions by the October 3, 2007 deadline, with one additional entry received on October 12, 2007. Agency staff, working in collaboration with Agency Counsel and the Director of Administrative Services, reviewed the twelve (12) RFQ submissions and assigned each a score on a scoring matrix that took the following fifteen (15) factors into account: • Financial history of the development team; • Responsiveness and commitment to the RDA's development needs and long term plan for meeting RDA inclusionary requirements and housing needs of the City of Lake Elsinore; • Completeness of the proposal relative to RFQ requirements; • Expressed desire to form a partnership with the RDA to develop high quality affordable housing that engages the historic, natural, and cultural assets of the community; • Demonstrated experience of the developer in the successful development, Tong -term operation /management, and economic performance of affordable housing projects of comparable size, Agenda Item No. 6 Page 1 of 5 Report to Redevelopment Agency — Affordable Housing RFQ March 25, 2008 Page 2 scale and complexity as potential future projects in the City of Lake Elsinore; • Experience in developing projects in redevelopment project areas under public /private partnerships; • Ability of the developer to implement high quality affordable housing development projects on time and within budget; • The developer's proven ability to access a variety of funding resources to develop and complete a diversity of projects; • A detail and results oriented, but mission driven, approach toward affordable housing development; • The quality of the architectural aspects of the developer's previous projects; • The quality of the aesthetic design of the developer's previous projects; • The responsiveness of previous projects to neighborhood compatibility issues, access /circulation, integration of sustainable materials and approaches, and aesthetics; • Experience in working with the public sector in public /private real estate development projects, willingness to engage in public outreach efforts to affected residents, property owners and to the local business community, pro- active plan to engage with local community in the development review process; • Interpersonal dynamics and the ease of communicating and working as partners for the development of affordable housing in the City of Lake Elsinore; and • Establishment of clear lines of responsibility within the developer team on which the RDA can rely during negotiations and implementation of the project. Staff selected the three (3) highest scoring developers and interviewed them on February 7, 2008. Following the interviews, staff also conducted reference checks on each of the development firms. Although all three firms did very well overall in the scoring matrix, interview process, and reference checks, staff ultimately selected BRIDGE Housing Corporation because of their superior experience in the development of affordable housing, sustained history of lower subsidy amounts through the leveraging of multiple funding sources, clear lines of responsibility and working relationships, staff's positive past experience with the developer, excellent references, well capitalized partners, and uniquely distinguished in -house property management firm, among other factors that collectively made BRIDGE Housing stand out among the competition. Agenda Item No. 6 Page 2 of 5 Report to Redevelopment Agency — Affordable Housing RFQ March 25, 2008 Page 3 Discussion Overview of BRIDGE Housing Corporation Since beginning active operations in 1983, BRIDGE Housing Corporation (BRIDGE) has participated in the development of over eleven thousand (11,000) homes throughout California, valued at more than $3 billion. In fact, BRIDGE has become the largest affordable housing developer in California— carrying out its development work both on its own and in partnership with local governments, private sector corporations and other nonprofit groups. Additionally, BRIDGE brings the experience and cost - savings of an in -house property management company, BRIDGE Property Management Company (BPMC). BPMC was formed in 1987 to ensure that the quality of BRIDGE developments would be maintained over time. According to staff's reference checks, BRIDGE and BPMC make excellent partners in ensuring the long term quality, safety, and affordability of their developments. Nearly 70% of the homes built by BRIDGE are affordable to working families who earn roughly $15,000 to $50,000 per year. Approximately 78% of BRIDGE developments are rental apartments; the balance are for sale to first -time homebuyers. As affordable housing is BRIDGE's primary business, their experience with securing tax credit allocations and other federal and state government funding is extensive. BRIDGE has financed over fifty (50) projects using tax credits and over a dozen other projects using subsidized financing without tax credits. BRIDGE has been an active participant in the low income housing tax credit program since its inception in 1987. BRIDGE has also helped to shape policy changes in the tax credit program over the years and was a major participant in the movement to pass Proposition 1C in 2006. On an annual basis, BRIDGE is typically garnering multiple tax credit allocations for both 4% and 9% deals. They also regularly utilize other funding programs including the California Department of Housing and Community Development Multi- family Housing Program (MHP), the Federal Home Loan Bank's Affordable Housing Program (AHP), construction and permanent financing from the California Housing Finance Agency (CaIHFA), as well as tax exempt bond allocations through the California Debt Limit Allocation Committee (CDLAC). Staff also recognized their success in, and collective knowledge of, structuring deals with historic and new markets tax credits —two sources of funds of potential significance in portions of the Redevelopment Agency's project areas. In addition to the debt and equity programs described above, BRIDGE has unique access to capital through a sister company, BUILD. BUILD has an allocation of $175 million in CalPers equity to be invested in infill housing. BRIDGE is currently seeking mixed - income development opportunities in Southern California for a BUILD investment. In this type of transaction, the majority of the development would be market Agenda Item No. 6 Page 3 of 5 Report to Redevelopment Agency — Affordable Housing RFQ March 25, 2008 Page 4 rate in order to achieve the required investment returns, but BRIDGE has structured transactions that include an affordable component, as well. In fact, BRIDGE looks forward to the opportunity to analyze potential mixed - income sites in Lake Elsinore as part of this effort. Next Steps With Agency Board approval, staff will continue to work with BRIDGE to develop a comprehensive affordable housing strategy for the Redevelopment Agency of the City of Lake Elsinore. As discussed in the past, this strategy will utilize a three -prong method for fulfilling the Agency's inclusionary requirements with existing and projected Low /Mod Housing Funds. These Low /Mod Housing Funds are also known as 20% Agency set - aside funds because they represent the 20% of Agency tax increment set -aside for the development of affordable housing —one of the primary missions and legal obligations of the Redevelopment Agency. As a reminder, the first component of the three -prong affordable housing strategy developed in August 2007 was to issue an RFQ to select an affordable housing developer to proactively partner with the Agency for the development of affordable housing to meet the Agency's inclusionary requirements. With this portion of the strategy completed, the Agency now possesses the opportunity to move forward with a public /private partnership and collaboratively identify politically, economically, and socially ideal sites for the development of affordable housing. By working with BRIDGE, staff anticipates benefiting from the experience and dedication of California's largest affordable housing developer, while also mutually realizing the economies of scale made possible by an affordable housing need as extensive as the one in the Agency's project areas. In addition to new construction opportunities, staff will work with BRIDGE on the other two methods of the three -prong affordable housing strategy. The second method to fulfill the Agency's inclusionary requirements is to purchase long term affordability covenants on the City's existing housing stock that do not currently count towards the Agency's inclusionary requirements and are not expected to remain affordable, or are already not affordable for low and very low income households pursuant to California Redevelopment Law Section 33413(b)(2)(B). While this second method could represent the most cost - effective means of acquiring affordable housing to meet inclusionary requirements, no more than 50% of the Agency's affordable housing inclusionary requirements may be met by purchasing restrictions on existing housing stock. Additionally, 50% of the price- restricted units must be made affordable to very low income households, compared to only 40% for Agency assisted new construction developments. The third method to fulfill Agency affordable housing obligations is to complete the substantial rehabilitation of existing units that do not currently count towards Agency Agenda Item No. 6 Page 4 of 5 Report to Redevelopment Agency — Affordable Housing RFQ March 25, 2008 Page 5 inclusionary requirements. Staff have identified 251 affordable housing units in the City of Lake Elsinore that are not currently restricted by the Agency, many of which are in need of rehabilitation. Staff plans to work with BRIDGE Housing to analyze the feasibility of substantially rehabilitating these developments as a component of the Agency's affordable housing strategy. Fiscal Impact Moving forward with the collaborative identification of potential affordable housing sites, substantial rehabilitation opportunities, and ideal prospects for the purchase of long- term affordability covenants will not incur any direct financial obligations. Future development agreements and purchase agreements resulting from the three aforementioned strategies will be evaluated as they are proposed. All future potential Agency subsidies should only impact the Redevelopment Agency's 20% set -aside funds collected for the development of affordable housing. Recommendation Direct staff to proceed with the drafting of a letter of intent outlining the roles and responsibilities for BRIDGE Housing and the Redevelopment Agency in a public /private partnership to collaboratively work toward the fulfillment of Agency inclusionary requirements. Prepared by: Steven McCa Redevelopment Project Manager Reviewed by: Matt N. Press Director of Admin' rative Services Approved by: Robert A. Brady ' / '' I/ _ Executive Directo i� Agenda Item No. 6 Page 5of5 CITY OF LAI(E L LSINODE , DREAM EXTREME, ■ REPORT TO REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: MARCH 25, 2008 SUBJECT: A PROPOSED AFFORDABLE HOUSING DEVELOPMENT (LAKESHORE VILLAGE) Background At the August 28, 2007 Redevelopment Agency Board of Directors meeting, the Agency Board directed staff to develop an RFQ to select a partner for the proactive development of affordable housing, but to also continue to accept over - the - counter applications from other qualified developers of affordable housing. Of particular interest at the time was a project organized between Corman Leigh and the Central Valley Coalition for Affordable Housing. Since that time, the Central Valley Housing Coalition ` developed a proposal for the construction of one - hundred and twenty -eight (128) units of affordable housing on a 7.29 acre parcel in west Lake Elsinore within Redevelopment Project Area 2 (see Figure 1 below). Fi ure 1: Pro osed Site for Lakeshore Villa l e � kr % . / 4 4,41104,,, tg . . 7: , - d;;;p i $ F 1 � 1 ~ S .,4,430.,; , .. A . _ , . ,.% . ' • ,,,,„%. , , , ,4. ,.-„.:. „...,,,,,,,„,..,,.., , -4,-.. ,,,,..,,,,-,‘,. f.„. , ,„„,,.., , , , „.,, , i , , . ,,,,, „. ..• ..,,,, ,- -4„. Y y 11Yd�/{y � • � � $ #fir �4 ,��{. 6, , '''. } d 'F +� 6 -* 4 C 4 ,y, y a, Agenda Item No. 7 Page 1 of 4 Report to Redevelopment Agency —A Proposed Affordable Housing Development March 25, 2008 Page 2 Discussion Overview of Central Valley Coalition for Affordable Housing Central Valley Coalition for Affordable Housing (the Coalition) was established in 1989 and, since then, has developed and /or currently owns 10,576 units throughout the State of California. The 10,576 units represent a portfolio of new construction apartment units, single family homes and a mix of existing apartment inventory for which they purchased, rehabilitated and preserved, or repositioned as affordable housing inventory in various communities throughout California. Of the twelve (12) firms who submitted for the Redevelopment Agency's RFQ in October, the Coalition presented the second most amount of units developed, rehabilitated, or otherwise owned. After reviewing the Coalition's qualifications, staff believes that the firm possesses the requisite experience to successfully develop the Lakeshore Village affordable housing development. Overview of the Proposed Development The proposed Lakeshore Village development consists of ten separate structures with a total of 126,168 square feet and one - hundred and twenty -eight (128) units of affordable housing, a 2,348 square foot recreation area, and a 1,060 square foot tot lot. The development also provides 292 parking spaces, including 128 covered spaces, with a total of 25,860 square feet of carports. The two -story development would be located on a 7.29 acre parcel with a density of approximately 17.56 dwelling units per acre —well within the R -3 zoning requirements, which allow for up to twenty -four (24) dwelling units per acre. As proposed, sixty -two (62) of the one - hundred and twenty -eight (128) units will be affordable to and occupied by persons and /or households at or below fifty (50) percent of the Area Median Income (AMI), in a mix of fourteen (14) one - bedroom, twenty -three (23) two - bedroom, and twenty -five (25) three - bedroom units (see Figure 2 below for current income limits corresponding to these restrictions). Thus, just over 48% of the development will be affordable to families with very low incomes, which is well above the 40% required by California Redevelopment Law, but below the amount that would trigger Article 34 requirements for voter approval of a low rent housing project. Additionally, sixty -six (66) of the one - hundred and twenty -eight (128) units will be affordable to and occupied by persons and /or households at or below sixty (60) percent of the Area Median Income (AMI) in a mix of fourteen (14) one - bedroom, twenty -four (25) two - bedroom, and twenty -seven (27) three - bedroom units. If this project moves forward, a Declaration of Covenants, Conditions, and Restrictions restricting rents and occupancy of the one - hundred and twenty -eight (128) units for 55 years will be recorded against the property in favor of the Redevelopment Agency as per California Redevelopment Law. Agenda Item No. 7 Page 2 of 4 Report to Redevelopment Agency —A Proposed Affordable Housing Development March 25, 2008 Page 3 Figure 2: 2008 Income Limits by Percent of AMI (TCAC) Riverside County AMI: $66,600 Income Level No. of 50% (Very Persons 100% 60% Low) 1 $ 46,400 $ 27,960 $ 23,300 _ 2 $ 53,300 $ 31,980 $ 26,650 3 $ 59,900 $ 35,940 $ 29,950 4 $ 66,600 $ 39,960 $ 33,300 5 $ 71,900 $ 43,140 $ 35,950 6 $ 77,300 _ $ 46,380 $ 38,650 7 $ 82,600 $ 49,560 $ 41,300 8 $ 87,900 $ 52,740 $ 43,950 Information available at: http: /www. treasurer. ca. gov /ctcac /rentincome /08 /max_income.pdf Fiscal Impact As proposed, the total project cost is estimated at $23,435,050. Agency staff and Keyser Marston Associates are reviewing the developer's pro forma for project feasibility. Subject to additional changes resulting from the Agency's review of the Coalition's pro forma, if the Coalition is successful in achieving syndication proceeds of $5,940,132 from the anticipated $6,751,500 in 4% low income housing tax credits, in addition to $10,389,299 of tax exempt bond financing, the resulting gap is $7,105,619. At a subsidy rate of approximately $55,513 per unit of affordable housing, the Redevelopment Agency could fill the remaining $7,105,619 gap. In order for the Coalition to move forward with any application for low income housing tax credits, the California Tax Credit Allocation Committee (TCAC) requires that they obtain a letter of commitment from the Redevelopment Agency. This letter of commitment would commit the Agency set -aside funds to the project contingent upon TCAC award of the necessary 4% tax credits. Any future commitment letter and development agreement will be evaluated as they are proposed. All future potential Agency subsidies should only impact the Redevelopment Agency's 20% housing set -aside funds collected for the development of affordable housing. Agenda Item No. 7 ' Page 3 of 4 Report to Redevelopment Agency —A Proposed Affordable Housing Development March 25, 2008 Page 4 Recommendation. Direct staff to develop a financial commitment letter and report for Agency consideration upon the approval of the Coalition's project by the Planning Commission. Prepared by: Steven McCarty Redevelopment Project Manager Reviewed by: Matt N. Presse Director of Admini- rative Services Approved by: Robert A. Brady Executive Directo �r 10) Agenda Item No. 7 Page 4 of 4 CITY OF i-� • LAKE r-(1.1*, LS I I`�O E K � DREAM EXTREME. REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: MARCH 25, 2008 SUBJECT: FIRST EXTENSION OF TIME FOR VESTING TENTATIVE TRACT MAP NO. 34017 Recommendation: Concur with City Council action. Approved by: Robert A. Brady Executive Directo Agenda Item No. 8 Page 1 of 1 CITY LAKE K � LS I TAO ICE DREAM EXTREME.. REPORT TO THE REDEVELOPMENT AGENCY TO: HONORABLE CHAIRMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY FROM: ROBERT A. BRADY EXECUTIVE DIRECTOR DATE: MARCH 25, 2008 SUBJECT: INDUSTRIAL DESIGN REVIEW NO. 2007 -02 FOR THE DESIGN AND CONSTRUCTION OF AN INDUSTRIAL COMPLEX CONSISTING OF NINE BUILDINGS AND ASSOCIATED IMPROVEMENTS Recommendation: Concur with City Council action. Approved by: Robert A. Brady Executive Directo Agenda Item No. 9 Page 1 of 1