HomeMy WebLinkAbout0010_1_Transfer of APN 365-30-001 GF to Fund 106 - SRREPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by: Jason Simpson, Director of Administrative Services
Date:June 14, 2016
Subject:Resolution of the City Council Approving the Transfer of APN 365-030-001
as General Fund Property Asset to Fund 106 In Exchange for Two Million
Dollars
Recommendation
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, APPROVING THE TRANSFER OF APN 365-030-001 AS A GENERAL FUND
REAL PROPERTY ASSET TO FUND 106 IN EXCHANGE FOR TWO-MILLION DOLLARS
($2,000,000).
Background
The City of Lake Elsinore (the "City") owns certain real property identified as APN 365-030-001
(the "Property"). The Property, in excess of 5 acres, lies within a desirable development area
adjacent to the Summerly project with direct access to Mission Trail.
The Property was acquired with and is an asset of the City’s General Fund. Based on the
comparable property values and considering the development potential with entitlements, the
Property is currently valued at $2,000,000.
Discussion
The City has received a proposal from Lake Elsinore CCR LLC (the “Developer”) to acquire the
Property for the purpose of developing: i) approximately 81 units of affordable housing for
income-eligible households, including one manager’s unit, to be developed on the Property; ii)
office space; iii) community meeting room and social service center for use by the residents of
the Property; iv) passive and active open space areas; and v) related parking and other
improvements located or to be located on the Property (the “Affordable Housing Project”).
The Developer’s managing affiliate is an experienced developer of multi-family housing.
Existing proposed developments for low-income households in the City of Lake Elsinore are not
likely to meet the projected need for affordable housing within the City. According, the proposed
Affordable Housing Project would meet a critical need in the community
Transfer of APN 365-30-001 as a General Fund Real Property Asset to Fund 106
June 14, 2016
Page 2
An important initial step to the Affordable Housing Project is the transfer of the Project to the
City’s Affordable Housing In-Lieu Fee program.
The Affordable Housing In-Lieu Fee program is a component of the City’s redevelopment efforts
and the legal requirements of the State of California that the City meet its share of regional
affordable housing needs. With respect to certain residential development within the
redevelopment project areas, the City collects an Affordable Housing In-Lieu Fee equal to $2.00
per square on such residential developments. The City holds the Affordable Housing In-Lieu
Fees it collects in trust in the Affordable Housing In Lieu Fund (the “Fund 106”) for later use with
respect to the development of affordable housing units.
Acquisition of the Property by Fund 106 in connection with the proposed Affordable Housing
Project conforms to the purposes of the Affordable Housing In-Lieu Fee program.
In order to move forward with the Affordable Housing Project, the City Council is requested to
approve the transfer of the Property to Fund 106; Fund 106 will reimburse the City’s general
fund in the amount of $2,000,000, representing the value of the Property. Following such
transfer, use of the Property will be strictly limited to affordable housing purposes.
Fiscal Impact
Approval of the Resolution will ultimately lead to the development of the Property for affordable
housing purposes and will provide for the reimbursement of the City’s General Fund for its
value.
Exhibits
A – Resolution Approving Transfer
B – Location Map