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HomeMy WebLinkAboutAGENDA REPORT 1990 1205 CC REG ITEM 11ABERNARDO M.PEREZ Mayor SCOTT MONTGOMERY Mayor Pro Tem ELOISE BROWN Councilmember CLINT HARPER, Ph.D. Councilmember PAUL W. LAWRASON, Jr. Councilmember LILLIAN KELLERMAN City Clerk MOORPARK M E M O R A N D U M STEVEN KUENY City Manager CHERYL J. KANE City Attorney PATRICK RICHARDS, A.I.C.P. Director of Community Development R. DENNIS DELZEIT City Engineer �, ) JOHN V. GILLESPIE 7i &'FLU/ Chief Police ' RICHARD T. HARE City Treasurer To: The Honorable City Council From: Patrick J. Richards Director of Community Development ��PjG� Y P Date: November 29, 1990 (City Council Meeting 12 -5 -90) Subject: AFFORDABLE HOUSING PROPOSAL - BIBO /CABRILLO ECONOMIC DEVELOPMENT CORPORATION (CEDC) STATUS REPORT Background On November 21, 1990 BIBO Inc. and Cabrillo Economic Development Corporation (CEDC) presented a proposal to the City Council to provide 100 affordable rental units within the City. The subject site is a 7.41 acre property located on the south side of Los Angeles Avenue just west of Fremont Street. At the Council's November 21st meeting the applicants not only explained their proposal, but also requested a variety of assistance needs related to their project. The assistance needs are as follows: 1. Interim Financ ing - The use of CDBG and other City funds as a no interest loan. 2. Fee Deferral 3. Design Flexibility 4. Fast Track, P;gocessinq 5. Millard Street Improvements 6. Parcel Map Approval 7. Affordable Housing Agreement 799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864 The council determined that the project had merit towards providing affordable housing, but withheld any decision regarding the project until additional discussions could take place between the Affordable Housing Committee, staff and the applicant. The Council directed the Committee and staff to meet with the applicants and work on the details of this proposal. Staff is to provide a status report to the Council at their December 5, 1990 meeting. • On November 28, 1990 the Affordable Housing Committee and staff met regarding this proposal and discussed the following: 1. Use of CDBG and City Affordable Housing funds as an interim no interest loan of $400,000 to the project. On Tuesday December 4, 1990 a meeting is to be held between City staff, CEDC and the County CDBG staff so as to reach a decision on the use of CDBG monies. Staff at present has been advised by the County that CDBG funds may not be used for loans. However, they are reviewing the matter further and will discuss their position at the December 4th meeting. 2. At the present time the City has $186,639 available to be placed in the Affordable Housing fund account. Staff is still in the process of reviewing if there are any legal constraints to a no interest loan to this project. There is also $16,200 from the CDBG Small Cities Program that may be available to this project. This money has become available because of loan repayments from two homes. Any loan of CDBG or City funds to the applicants will need to be protected in the event that if the sale does not occur within a time certain there is a requirement for repayment in full. 3. BIBO Inc. has provided to staff a graphic illustration of the future Millard Street extension (see attachment). This illustration indicates that the house on the adjacent corner parcel (This is a separate lot from the subject site) would need to be removed to accommodate the roadway. The Committee agreed with staff regarding the need for the roadway connection. This matter would need to be made part of any consideration for a future subdivision of the site. 4. The Committee discussed the applicants interest in a fee deferral and concluded that some fees may be able to be deferred (not waived) but any contract service such as City Engineer, City Attorney etc. would need to be paid in a timely manner. The Committee suggested that a smaller than usual deposit could be made to the City for which billings would draw upon. 5. The issue of fast tracking the processing was determined to be an impact on current staff inasmuch as there is a vacancy in the Department of Community Development. No specific timelines were discussed. 6. The issue of escrow extension became the focal point of concern for both staff and the Committee. At present the applicants escrow for this property expires on or about December 31, 1990. Without assurance that there is a legal extension; the City may extend a considerable amount of staff time without results. Before proceeding further with this project there should be substantial illustration that the escrow has been extended long enough to allow this project to be processed in a timely manner. That the City Council request from the applicant a written escrow extension, for a time period of at least six (6) months, prior to providing any commitment of City resource in support of this project. Attachment: Millard Street Future Alignment