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HomeMy WebLinkAbout12-05-1996 City Council Study SessionMINUTES CITY COUNCIL STUDY SE5SION CTTY OF LAKE ELSINORE 130 SOUTH MAIN STREET LAKE ELSINORE, CALIFORN7A THURSDAY, DECEMBER 5, 1996 *a~e~~eft~ts~efes**ft~~~e~a~t*xft~eaw~e~xw*xa~xa~re~txw~xaKxa*~e~*~w~e~w**~~~s~~~s~x~~e~xa~fEa*~ CALL TO ORDER The City Council5tudy Session was called to order at 2:40 p.m. ROLL CALL PRE5ENT: COUNCII.MEMBERS: BRINLEY, KELLEY, PAPE ABSENT: COITNCII.MEMBERS: ALONGI, METZE Also present were: City Manager Molendyk, Administrative Services Director Boone, Community Development Director Leslie, Building and Safety Manager Russell, and Deputy City Clerk Bryning. PUBLIC COMMENTS - AGENDIZED TTEMS None. DISCUSSION ITEM 1, In fll Lots - Housing Program. (F:87.1) City Manager Molendyk introduced Gray Boyse and explained that he was proposing to do in-fill development in the older section of the City and fulfill one of the goals of Council. The housing would be built in the Historic Downtown area and be for low to moderate income families. The bulk of the money will come from the private sector and cost the City will be approximately $7,500 per home in pernut and plan check fees and once the home is sold the City will eventually recover the money and this would meet our 20% set aside for low income housing. He noted that the architecture will be compatible with the downtown area. Gary Boyse of Bonita Homes Development Corporation explained that the homes that his company is proposing to development would be specifically for low to moderate income families. He noted that the Redevelopment Agency participation in the program allows them to obtain below market interest rates for the first-time home buyers and gives them a marketing tool to compete with standard subdivisions. He further noted that the RDA participation allows them to obtain an interest rate from CHAF's Affordable Housing Partnership Program that averages 1% below the normal market rate. He outlined the benefits of the in-fill lot development and how it would impact the City. He explained that this is a benefit to the community since it develops pride in ownership and will encourage neighborhood to improve. He explained the City's involvement in the loan requirements and the qualifications required of the home buyer. Mr. Boyse outlined the construction budget necessary to build and the benefits for the home buyer. Mayor Pape and Mayor Pro Tem Kelley questioned the loan arrangements. Mr. Boyse explained that the City would carry a note for the $7,500 for the 30 year period and would recover the money by the end of that period or the entire amount at the time of sale. City Manager Molendyk explained that this is not multi-family, but rather single family residentiaL PAGE TWO - STUDY SESSION MINUTES - DECEMBER 5, 1996 Mayor Pape asked how many homes that they will be building. Mr. Boyse explained that ~ they will start with 15 homes and go from there. Councilwoman Brinley questioned the locations for the homes. Mr. Boyse explained that they would be located from Chaney Street all the way up into the old Downtown area. Councilwoman Brinley asked if Mr. Boyse was aware of the criteria for the Overlay District in the Historic Downtown Area. He stated that he was and that he feels that the criteria is good for his project. Mayor Pro Tem Kelley asked if they would be doing landscaping. Mr. Boyse stated that they will be doing sprinklers and landscaping in the front of the homes to enhance the appearance and value. COUNCILMAN METZE ARRIVED AT 2:45 P.M. Mr. Boyse explained that the home buyer would have to be FHA qualified, with good credit and would have to come in with $2,000 or a little less to qualify. He further explained that the home buyer would have an income cap of $33,000 a year to qualify as well. He noted that they will be attempting to acquire 2 to 41ots in the same azea to improve the neighborhood and encourage improvement in the surrounding homes. Mayor Pape questioned the fees. Mr. Boyse stated that the school, water and sewer fees wilChave to be paid and become a part of the wst of the home, however the City's participation will keep the cost at an affordable level for the home buyer. Mayor Pro Tem Kelley questioned the start time for the project and how large the homes would be. Mr. Boyse stated that they hoped to be ready to start in June and the home would be approximately 1,200 square feet. City Manager Molendyk noted that the proposed area has lots that are longer and narrower. COUNCILMAN ALONGI ARRIVED AT 2:55 P.M. Councilwoman Brinley suggested that Mr. Boyse might want to consider lot mergers to increase the size of the lots. City Manager Molendyk explained that the project falls in the Historic Overlay District and that Mr. Boyse's Company will try to group several of the home together to improve the area. Mr. Boyse explained that this project will help to generate tax revenue as well as the fact that home ownership promotes pride. He noted the other areas that they have done similar projects and the positive impact that they have had. Mr. Boyce further explained the note wiil be for 30 years and will have to remain low to moderate should the owner sell for the first 10 years. Councilwoman Brinley asked if there was a limit on the amount of time that the buyer must retain the home before they could seli. Mr. Boyse stated that there was no limit. City Manager Molendyk stated that this item has been placed on the Agenda for D~c~mb~r 10,1996, and aft~r Gouncil has r~view~d the p~ck~g~ peovided by Mr, ~oyco, they can bring forward further questions. PAGE THREE - STUDY SESSION MINUTES - DECEMBER 5,1996 Councilman Metze stated that he felt that this would be an incentive to improve the neighborhood. ADJOURNMENT The City Council Study Session was adjourned at 3:06 n.m. Respectfully submitted, ?l'i'x!'E'S'T; . ~~__`~•v'.~c^a'' !~ICKI K~1SA~, CITY CLERK