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[1. CALL TO ORDER]
PROCEED, I WOULD, UH, REQUEST THE INTERPRETER.TAKE A MOMENT TO EXPLAIN THE CITY'S INTERPRETATION SERVICES THAT WILL BE OFFERED FOR TODAY'S CITY COUNCIL WORKSHOP.
THE FOLLOWING WILL BE AN ANNOUNCEMENT IN SPANISH, AND THANK YOU, MAYOR.
AND AS A REMINDER, IF WE COULD PLEASE SILENCE ALL CELL PHONES OR ANY OTHER DEVICES IN THE CHAMBER, IT'D BE GREATLY APPRECIATED.
AND, UH, WITH THAT, A LIVE WEBCAST, THE MEETING MAY BE VIEWED ON THE CITY'S WEBSITE.
IF YOU ARE WATCHING VIA ZOOM, INTERPRETER INSTRUCTIONS WILL APPEAR IN THE CHAT BOX AT THE BOTTOM OF YOUR SCREEN.
UH, FOR THOSE WHO PREFER TO SIT IN THE CHAMBER, HEADSETS ARE AVAILABLE TO PROVIDE LIVE SPANISH TRANSLATION, PLEASE SEE THE DEPUTY CITY CLERK TO CHECK OUT A HEADSET.
AND, UH, THE NOTICE AGENDA AND INFORMATION ON THE CITY OF NATIONAL CITY'S WEBSITE INFORMS MEMBERS OF THE PUBLIC THAT THEY MAY SUBMIT A GENERAL PUBLIC COMMENT OR A PUBLIC COMMENT ON A SPECIFIC AGENDA ITEM IN A NUMBER OF WAYS, EITHER IN PERSON BY SUBMITTING ONE OF THESE SALMON COLORED SLIPS.
THEY'RE AVAILABLE RIGHT OUTSIDE THE DOOR THERE.
PLEASE GET THEM OVER AS SOON AS POSSIBLE OVER TO OUR, UH, CLERK'S DESK AND BY, UH, VIA ZOOM, BY PRE-REGISTERING ON THE CITY'S WEBSITE.
NO LATER THAN TWO HOURS BEFORE THE MEETING OR EMAILING NO LATER THAN FOUR HOURS BEFORE THE MEETING.
ALL WRITTEN COMMENTS RECEIVED ARE DISTRIBUTED TO THE CITY COUNCIL PRIOR TO THE MEETING AND PUBLISHED ON THE CITY'S WEBSITE IF THEY ARE RECEIVED BY THE DEADLINE.
WITH THAT, UH, CITY CLERK, CAN WE HAVE ROLL CALL PLEASE? THANK YOU.
COUNCIL MEMBER YAMANI HERE, MAKE ANNOUNCEMENT ON THAT.
PRESENT, COUNCIL MEMBER, UH, VICE MAYOR MOLINA PRESENT.
AND WE'LL NOTE THAT, UH, COUNCIL MEMBER BUSH IS ABSENT.
AND JUST ANNOUNCE FOR THE RECORD, COUNCILMAN RODRIGUEZ WILL BE PARTICIPATING REMOTELY UNDER THE TELECONFERENCE CLAUSE OF THE BROWN ACT DUE TO A FAMILY EMERGENCY.
WITH THAT, IF WE COULD PLEASE, UH, STAND FOR THE PLEDGE OF ALLEGIANCE.
MEMBER YAMANI, WOULD YOU LEAD US? PLEASE, PLEASE STAND AGAIN.
BEGIN ALLEGIANCE TO THE PLAID OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC BEFORE.
RICHARD STANDS ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY.
WITH LIBERTY AND JUSTICE FOR ALL.
[4. PUBLIC COMMENT (Comment will be specific to Agenda Item)]
POINT, WE'RE GONNA TAKE PUBLIC COMMENT.UH, WE HAVE, I HAVE, THIS IS ACTUALLY, THIS IS ONES THAT ARE SPECIFIC TO THIS AGENDA ITEM, WHICH IS, UH, 5.1.
AT THIS POINT I HAVE TWO SPEAKERS, AND THEN WE ALSO HAVE SOME ON ZOOM.
SO, WITH THAT, UH, CARLA, I'M NOT GOING, I, I'LL LET YOU PRONOUNCE YOUR LAST NAME SO I DON'T, I DON'T TRY.
WHAT WAS IT NOW? IT DID TRY, UH, NO, NO, NO, NO, NO.
GOOD EVENING, MAYOR AND COUNCIL MEMBERS.
MY NAME IS CARLA MAYA AND I'M WITH CASA F.
WE ARE PROUD TO PRESENT KUDA NATIONAL CITY, A PROJECT ROOTED IN COMMUNITY LONG TERM AFFORDABILITY AND OPPORTUNITY FOR NATIONAL CITY RESIDENTS.
NATIONAL CITY FACES A CLEAR CHALLENGE.
HOME OWNERSHIP REMAINS OUT OF REACH FOR MANY WORKING FAMILIES, ESPECIALLY THOSE WHO LIVE HERE, WHO HAVE LIVED HERE FOR GENERATIONS.
MANY RESIDENTS CAN REMAIN IN THE COMMUNITY, BUT THEY DON'T HAVE ACCESS TO STABLE PATHWAYS, TO OWNERSHIP OR LONG-TERM WEALTH BUILDING.
UNI DELIVERS PERMANENTLY AFFORDABLE HOME OWNERSHIP THROUGH COM THROUGH A COMMUNITY LAND TRUST, ENSURING PUB TODAY'S PUBLIC INVESTMENT BENEFITS GENERATIONS OF NATIONAL CITY FAMILIES.
UNI DIRECTLY ADDRESSES THIS NEED.
WE'RE PROPOSING UP TO 60 HOMES FOR FAMILIES EARNING 30 TO 60% OF AREA MEDIUM INCOME.
OUR MODEL CREATES THE PATHWAY TO OWNERSHIP, STARTING WITH STABLE, AFFORDABLE HOUSING AND SUPPORTING RESIDENTS OVER TIME UNTIL THEY'RE READY TO PURCHASE.
AND THROUGH OUR COMMUNITY LAND TRUST, THESE HOMES REMAIN AFFORDABLE, NOT JUST FOR ONE FAMILY, BUT FOR GENERATIONS.
WE UNDERSTAND THAT OUR PROJECT MAY HAVE A HIGHER DEVELOPMENT COST AND A STANDARD PROJECT.
THAT IS BECAUSE UNI IS NOT A STANDARD PROJECT, IT IS DESIGNED AS A LONG-TERM COMMUNITY INVESTMENT.
IT IS A MI IT IS A MIXED USE DEVELOPMENT
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WITH COMMUNITY SERVING SPACE, NOT JUST HOUSING.IT INCLUDES HIGH PERFORMANCE, ALL ELECTRIC SYSTEMS THAT IMPROVE RESIDENT HEALTH AND REDUCED LONG-TERM COSTS.
IT IS DESIGNED FOR FAMILIES WITH MORE TWO AND THREE BEDROOM HOMES, WHICH REQUIRE MORE SPACE, BUT REFLECT ACTUAL COMMUNITY NEEDS.
IT INCLUDES STRUCTURED PARKING, DESIGNED FOR FUTURE ADAPTABILITY, CREATING LONG-TERM FLEXIBILITY, WHICH WILL BE AVAILABLE TO MODIFY ONCE THE TENANT PURCHASES THE PROPERTY.
AND MOST IMPORTANTLY, IT IS BUILT ON AN OWNERSHIP MINDSET USING DURABLE MATERIALS AND HIGHER QUALITY DESIGN TO REDUCE LONG-TERM COSTS AND SUPPORT STABILITY.
THIS IS NOT ABOUT MINIMIZING UPFRONT COSTS, IT'S ABOUT MAXIMIZING LONG-TERM VALUE FOR THE CITY AND THE COMMUNITY.
WE ALSO UNDERSTAND THAT, THAT THERE MAY BE SOME QUESTIONS ABOUT THE MODEL.
UM, THIS MODEL DOES NOT DISPLACE RESIDENTS.
IT IS IF A FAMILY IS NOT READY TO PURCHASE, THEY CAN REMAIN IN THEIR HOME.
CASA F WORKS WITH RESIDENTS OVER TIME, PROVIDING FINANCIAL COACHING, CREDIT SUPPORT, AND HOME BUYER EDUCATION.
SO WE ARE PREPARED WHEN, SO THEY ARE PREPARED FOR WHEN THE OPPORTUNITY COMES.
WE'LL ALSO EXPLORE DOWN PAYMENT ASSISTANCE OPPORTUNITIES FOR THE RESIDENTS COMMUNITY.
LAND TRUSTS ARE PROVEN MODEL USED ACROSS THE COUNTRY TO MAINTAIN AFFORDABILITY AND PREVENT DISPLACEMENT.
BUT WHAT MAKES THIS PROJECT WORK IS CASA FD.
WE ARE A TRUSTED COMMUNITY-BASED ORGANIZATION, AND WE'LL BE HERE LONG AFTER CONSTRUCTION TO STEWARD THIS PROJECT AND SUPPORT RESIDENTS FOR DECADES.
CASA FD HAS SERVED SOUTH BAY COMMUNITIES, NOT JUST THROUGH HOUSING, BUT THROUGH EDUCATION, ECONOMIC DEVELOPMENT, AND DIRECT SERVICES.
WE ARE DEEPLY ENGAGED AND ROOTED IN THIS COMMUNITY, AND WE REMAINED, WE WILL REMAIN SO OVER TIME ENSURING THAT PROJECTS LIKE COMIDA SUCCEED NOT JUST AT COMPLETION, BUT FOR GENERATIONS FOR OH, THANK YOU.
OKAY, NEXT WE HAVE, UH, EDO THREE MINUTES.
BUT IT SEEMED LIKE FEASIBILITY STUDY WAS, UH, VERY SHORT-LIVED.
THEY'RE MOVING RIGHT STRAIGHT INTO THE RFP PRO STAGE, IT LOOKS LIKE.
SO, YOU KNOW, I'M JUST LOOKING AT IT FROM THE CITIZEN'S PERSPECTIVE.
THAT WAS A SHORT CAP FEASIBILITY STUDY.
WHAT'S IT MEAN BASED ON INFORMATION PRESENTED? MANY OF THE PROPOSALS APPEAR TO BE RELYING ON, UM, GIVING AWAY OR HEAVILY DIS DISCOUNTING CITY LOAN PROPERTY THAT LAND HAS VALUE.
THESE ARE PUBLIC ASSETS THAT BELONG TO THE RESIDENTS OF THE CITY.
WHAT CON CONCERNS ME IS THE TIMING OF THIS DISCUSSION.
UH, THE CITY IS ALREADY FACING, UH, CONSECUTIVE DEFICITS POTENTIAL BUDGET AND STABILITY AND DELAYS IN THE 24 25 AUDIT REPORT.
THOSE ISSUES ALONE SHOULD BE CAUSE FOR CONCERNS.
YOU KNOW, WHAT, WHAT, HOW ARE WE IN A POSITION TO BE DISCUSSING GIVING AWAY CITY ASSETS WHEN WE HAVE A BUDGET DEFICIT? THAT'S PUZZLING.
THE TRANSPARENCY NEEDS TO BE EXPLAINED.
WHO COMES UP WITH THE TIMING OF THESE ISSUES RIGHT IN THE MIDDLE OF A BUDGET CRISIS? I'M NOT GIVING AWAY, I DON'T WANNA DISRESPECT THESE, UH, DEVELOPERS HERE, BUT, UM, THE TIMING OF THE PROPOSALS IS LIKE, YOU KNOW, UM, INCREDIBLY INSENSITIVE TO WHAT PEOPLE ARE FEELING RIGHT NOW AND HOW YOU'RE HANDLING THE FISCAL CONCERNS.
WHO, WHO BROUGHT THIS SUBJECT UP AT THIS TIME? THANK YOU.
WE DO HAVE GO TO, UH, ZOOM SPEAKERS NOW.
DO YOU HAVE COMMENT THAT YOU'D LIKE TO LEAVE WITH THE COUNCIL? I DON'T, I DIDN'T SAY I DID.
WAS ARE, ARE WE ON THAT PROJECT? ARE THE, ARE PROPOSAL? IT'S KIND OF CLEAR, CLEAR TO ME THE WHERE WE ARE ON THE AGENDA.
WE'RE IN THE PUBLIC COMMENT SECTION AND, UH, YOU HAVE SOME TIME TO GIVE PUBLIC COMMENT ON THE ITEM IF YOU'D LIKE.
UM, JUST A GENERAL AL UM, YEAH, I MEAN, I, I, I THINK, YOU KNOW WHAT, WHAT I, I MEAN, I'M HAPPY TO SAY A COUPLE THINGS.
UM, OVERALL, YOU KNOW, OUR APPROACH WAS REALLY TO TRY TO CREATE, UM, MORE HOUSING OPTIONS AND OPPORTUNITIES, UH, WITH A MIX OF, OF INCOME LEVELS.
UH, WHICH IS A, AN APPROACH THAT DIFFERED, I THINK, WITH THE UNDERLINING INTENT OF THE RFP.
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THAT BEING SAID, WE FELT THAT THE INCREASED DENSITY WAS ALL, YOU KNOW, ALL IN ALL, UH, ACCRETIVE TO THE DIRECTION THAT WE FELT THERE NEEDED TO GO WITH PROVIDING MORE HOUSING OPPOR OPPORTUNITIES FOR, UM, LOCAL, UH, RESIDENTS IN GENERAL.UM, AND, AND ALSO TO CREATE AN INCOME DIVERSITY IN WITHIN THE COMMUNITY, WHICH, YOU KNOW, THERE'S, THAT HAS BEEN ACHIEVED ORGANICALLY OVER TIME.
UH, AND OUR PROJECT REALLY TRIED TO, UM, UH, YOU KNOW, EN REINFORCE THAT ORGANIC ECONOMIC DIVERSITY THAT'S, THAT, YOU KNOW, THAT HAS DEFINED THE CITY'S CULTURE TO A GREAT DEGREE.
UM, AND SO, YOU KNOW, THAT I, YOU KNOW, WE RECOGNIZE THAT THAT DIFFERS FROM THE UNDERLINING INTENT AND ALSO IS A DIFFERENTIATOR, FOR EXAMPLE, FROM THE PRE, YOU KNOW, THE PROJECT THAT, THAT WAS JUST DESCRIBED, UH, THE PROJECT PROPOSAL.
UM, SO YEAH, THAT, THAT, THAT'S IT.
WERE THERE ANY QUESTIONS THAT I COULD ADDRESS, UH, WITH THIS TIME? THE QUESTION PERIOD WILL BE LATER.
ANTONIO S ALEX, ANTONIO, YOU'RE CUTTING OUT.
YOU'RE, YOU'RE, UH, CUTTING OUT.
SO, SO ANTONIO, I'M SORRY TO INTERRUPT YOU, BUT WE'RE, YOU'RE STILL CUTTING OUT.
I'M GONNA PUT YOU ON MUTE AND MAYBE YOU CAN GET TO A LOCATION WHERE YOU CAN, UM, GET A BETTER SIGNAL.
WE HAVE SOME OTHER SPEAKERS AND THAT'LL GIVE YOU A LITTLE TIME.
HI, I, I ALSO JUST WANNA ATTEND AND LISTEN IN SO I DON'T HAVE ANY COMMENTS.
UH, TO ADD, I WOULD JUST, UH, SPEAK IN SUPPORTING WHAT MR. SAN ANDRIS JUST, UH, SHARED.
I WAS ALSO INVOLVED IN THAT PROJECT AS WELL.
UM, AND FOR THE, THE VARIETY IN A SLIGHTLY DIFFERENT PERSPECTIVE, I THINK, UH, HAS SOME REAL MERITS.
GO GOMEZ? YES, CAN YOU HEAR ME? YES.
HI, UH, MAYOR AND COUNCIL MEMBERS GEORGIA GOMEZ WITH CAA FILI.
AND JUST REALLY WANNA ECHO WHAT MY COLLEAGUE, UH,
UM, I'M HERE IN SUPPORT OF UNIVA, WHICH IS, UH, A MIXED USE PROJECT PRESENTED TO YOU AS AN OPPORTUNITY TO BE INNOVATIVE FROM UTILIZING A COMMUNITY LAND TRUST MODEL, BUT ALSO EVEN WITHIN THE DEVELOPMENT ITSELF.
IT PROVIDES A PROJECT THAT WILL, UH, CREATE, UM, GENERATIONAL WELLBEING FOR THE COMMUNITY, AS WELL AS A GENERATIONAL WEALTH, UM, OPPORTUNITIES FOR FUTURE GENERATIONS THAT WILL CREATE STABILITY BY ALLOWING A, A RENT TO OWN CONVERSION PROJECT.
UM, AS WELL AS INCORPORATING, UH, PARKING OPPORTUNITIES TO BE CONVERTED INTO ADDITIONAL UNITS THAT FUTURE HOMEOWNERS CAN RENT TO BE ABLE TO PROVIDE INCOME FOR THEIR FAMILIES.
UH, WE PUT TOGETHER THIS PROJECT THAT WILL UPLIFT THE, THE HISTORIC ASPECT OF THIS PARTICULAR SITE, WHICH WILL CREATE A, A COMMUNITY THEATER TO REALLY HONOR THE LAMB THEATER ASPECT, UM, WITH PLENTIFUL OPEN SPACE.
UM, BUT MORE IMPORTANTLY, I CAN'T STRESS THE INNOVATION PART OF IT, ASIDE FROM THE SUSTAINABILITY, THE OPPORTUNITY TO CREATE GENERATIONAL WEALTH FOR FAMILIES, SPECIFICALLY TARGETING 30 TO 60% A MI INCOME EARNERS.
UM, AND WE HOPE THAT THIS CAN BE A PARTNERSHIP WITH, WITH THE NATIONAL CITY, BUT ALONG WITH THE COMMUNITY TO REALLY CREATE STABILITY FOR THE COMMUNITY AND ENTER INTO HOME OWNERSHIP, UH, LONG
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LASTING COMMUNITY, UM, UH, TO, TO CREATE OPPORTUNITY FOR THE COMMUNITY TO BE STEWARDS OF THEIR OWN LAND.UM, AND WE SEE THIS AS AN OPPORTUNITY THAT WILL DELIVER THAT STABILITY FOR THE COMMUNITY.
AND WE HOPE THAT WE GET THAT OPPORTUNITY TO PARTNER WITH YOU ALL TO REALLY CREATE THIS INNOVATIVE PROJECT THAT WE'RE TRYING TO BRING TO NATIONAL CITY.
AND LOOK FORWARD IN, IN THE ADDITIONAL QUESTIONS THAT YOU MIGHT HAVE DURING THE PRESENTATION.
AND WE'RE GONNA TRY, UM, ANTONIO.
ANTONIO, DO YOU HAVE A BETTER CONNECTION? I THINK SO, YES.
THANK YOU FOR, THANK YOU FOR ACCOMMODATING.
SO, YEAH, I, UM, I WORK WITH, UH, TUMBA, LLC AND, UM, SAN ANDREAS REAL ESTATE.
UM, AND I JUST WANTED TO KNOW THAT WE, UH, MADE A BIG EFFORT TO TRY TO COME UP WITH LIKE A, A GOOD SOLUTION FOR SITE THREE AND SITE FOUR WE'RE ABLE TO IN SAMPLE IN THE CASE OF THREE, TWO OTHER LOTS, AND IN THE SE IN THE CASE OF SITE FOUR, FOUR DIFFERENT LOTS.
UM, SO WE ARE VERY EXCITED FOR THIS, UM, BIGGER DEVELOPMENT OPPORTUNITIES THAT WE CAN BRING TO NATIONAL CITY.
UM, AND ALSO ONE THING THAT I WOULD LIKE TO COMMENT IS THAT THESE TWO SITES ARE ON THE DOWNTOWN SPECIFIC PLAN.
SO WE'RE TRYING TO BRING SOME BIGGER DENSITY THAT I THINK IS THE WHOLE POINT OF THE DOWNTOWN SPECIFIC PLAN, ALONG WITH SOME, UH, VERY, UH, AFFORDABILITY OPTIONS.
SO FOR SITE THREE, UM, THE RECOMMENDED PROJECT, UH, IS ONLY 20 UNITS AND, UH, OUR PROJECT IS 121 UNITS.
UM, AND FOR SITE FOUR, THE RECOMMENDED PROJECT IS ONLY THREE UNITS, AND WE WERE ABLE TO ACCOMMODATE 18 UNITS.
SO I THINK THAT THIS IS IMPORTANT FOR THE, UH, MAJOR AND COUNCILMEN AND COUNCILWOMEN TO, TO KNOW, UM, BECAUSE, UH, IF THESE PROJECTS GET BUILT, THE DEVELOPMENT OF THE WHOLE AREA AND THE WHOLE BLOCK GETS, UH, VERY COMPLICATED FOR, UM, BIGGER DENSITY THAT I THINK IT'S, UH, A VERY IMPORTANT PART OF THE DOWNTOWN SPECIFIC PLAN.
UM, SO YEAH, THAT'S MY, MY COMMENT.
[5.1 Own National City Homeownership RFP Proposal Recommendations]
WILL GO INTO 5.1, WHICH IS OWN NATIONAL CITY OWNERSHIP, RFP PROPOSAL RECOMMENDATIONS.AND I'LL TURN THAT OVER TO, UH, MARTIN READER.
THANK YOU AND GOOD EVENING MAYOR, VICE MAYOR, COUNCIL STAFF, AND THE PUBLIC MARTIN READER COMMUNITY DEVELOPMENT DIRECTOR.
UH, WE HAVE THE TEAM WITH US TONIGHT TO MAKE THE PRESENTATIONS.
WE HAVE, UH, ANGELITA OUR HOUSING, UH, MANAGER, AND WE ALSO HAVE DAVID MCC, AND WE ALSO HAVE REPRESENTATIVE FROM, UM,
SO I'LL HAND IT OVER TO ANGELITA.
GOOD EVENING, MAYOR COUNCIL MEMBERS OF THE PUBLIC AND STAFF ANGELITA PALMA, COMMUNITY DEVELOPMENT MANAGER WITH THE NATIONAL CITY HOUSING AUTHORITY.
WITH US HERE IS DAVID ECKRIN, COMMUNITY DEVELOPMENT SPECIALIST, THREE WITH THE NATIONAL CITY HOUSING AUTHORITY AND ALSO, UH, LENNY GINO WITH KAISER MARSON AND ASSOCIATES.
AND, UM, NOT MENTIONED, UH, WE ALSO HAVE WALTER BATH, WHO'S OUR OUTSIDE LEGAL COUNSEL.
UH, THIS INITIATIVE REPRESENTS AN IMPORTANT OPPORTUNITY FOR NATIONAL CITY TO EXPAND ACCESS TO AFFORDABLE HOME OWNERSHIP AND INVEST IN LONG OUR LONG-TERM FUTURE OF OUR COMMUNITY.
CURRENTLY, NATIONAL CITY'S HOME OWNERSHIP RATES REMAIN SIGNIFICANTLY LOWER THAN THE SAN DIEGO COUNTY AVERAGE, WHICH HIGHLIGHTS THE IMPORTANCE OF EXPANDING PATHWAYS TO OWNERSHIP FOR LOCAL RESIDENTS.
OVERALL, THE GOAL OF THIS INITIATIVE IS TO CREATE OPPORTUNITIES THAT STRENGTHEN OUR NEIGHBORHOODS, SUPPORT LONG-TERM HOUSING STABILITY, AND INVEST IN THE FUTURE OF THE NATIONAL CITY COMMUNITY.
TO PROVIDE SOME CONTEXT OF HOW WE ARRIVE TO THIS PHASE OF THE INITIATIVE, THIS TIMELINE HIGHLIGHTS SEVERAL KEY MILESTONES
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THAT HELP SHAPE THE OWN NATIONAL CITY PROGRAM.SINCE 2023, TOGETHER, WE HAVE BEEN ON A STRATEGIC JOURNEY TO EXPAND HOME OWNERSHIP OPPORTUNITIES FOR NATIONAL CITY RESIDENTS.
TODAY IS A MILESTONE IN FULFILLING THE CITY COUNCIL'S GOAL OF EXPANDING AFFORDABLE HOME OWNERSHIP OPPORTUNITIES TO NATIONAL CITY RESIDENTS.
OWN NATIONAL CITY IS INTENDED TO PROPEL, PROPEL THE IMPLEMENTATION OF CITY COUNCIL POLICY 9 0 1 BY PRIORITI, BY PRIORITIZING THE DEVELOPMENT OF HOME OWNERSHIP UNITS ON CITY OWNED PROPERTIES ZONED FOR RESIDENTIAL USE, THEREBY HELPING TO REDUCE THE DISPARITY AND HOME OWNERSHIP RATES BETWEEN NATIONAL CITY AND THE SURROUNDING REGION.
THROUGHOUT 2024, MILESTONES INCLUDED PLANNING AND POLICY EFFORTS SUCH AS THE ADOPTION OF THE LOCAL PREFERENCE POLICY AMENDMENT AND THE COMPLETION OF THE FOCUS GENERAL PLAN UPDATE, AND THE AUTHORIZATION OF THE HAP 2.0 FUNDING TO SUPPORT THE HOME OWNERSHIP STUDY AND RELATED FEASIBILITY ANALYSIS REQUIRED TO, UH, DEVELOP THE CITY OWNED PROPERTIES.
MOVING INTO 2025, THE INITIATIVE ADVANCED INTO PUBLIC ENGAGEMENT AND IMPLEMENTATION PHASES, INCLUDING THE LAUNCH OF THE OWN NATIONAL CITY WEBPAGE, THE PUBLIC WORKSHOP PROCESS, AND THE RELEASE OF THE REQUEST FOR PROPOSALS ARE RFP THROUGH OUR THROUGH PLANET BIDS.
THE NEXT PHASE OF THIS PROCESS FOCUSED ON EVALUATING PROPOSALS AND FINALIZING RECOMMENDATIONS TO ULTIMATELY CREATE SUSTAINABLE HOME OWNERSHIP OPPORTUNITIES THAT SUPPORT LONG-TERM COMMUNITY INVESTMENT AND HOUSING STABILITY FOR NATIONAL CITY RESIDENTS.
THIS SLIDE HIGHLIGHTS THE OWN NATIONAL CITY GRANT FUNDED STUDY SUPPORTED BY A $450,000 SANDAG GRANT.
HAP GRANT, THE STUDY IS A COMPREHENSIVE DATA-DRIVEN ANALYSIS THAT LOOKS AT MARKET CONDITIONS, AFFORDABILITY GAPS, AND HOME OWNERSHIP MODELS OF OUR SIX CITY OWNED SITES.
AND OVERALL, AND THE OVERALL FINANCIAL FEASIBILITY.
IT FOUND THAT WHILE A DEMAND FOR HOME OWNERSHIP, THERE ARE SIGNIFICANT AFFORDABILITY CHALLENGES FOR LOCAL RESIDENTS.
THE MOST FEASIBLE HOUSING TYPES ARE TOWN HOMES, ROW HOMES, AND ACHIEVING A DEEPER AFFORDABILITY WILL REQUIRE A SUBSIDY AND CITY LAND SUPPORT.
IMPORTANTLY, THE CITY PROVIDES A FRAMEWORK FOR THE RFP AND HELPED IN DEFINING FEASIBLE DEVELOPMENT TYPES, SET AFFORDABILITY TARGETS, IT IDENTIFIED SITE CONSTRAINTS AND A GUIDE AND HELPED GUIDE STAFF TO DEVELOP A SELECTION PROCESS AND WILL HELP WITH NEGOTIATIONS.
OVERALL, THE WORK SUPPORTS THE CITY'S GOAL AND EXPANDING EQUITABLE ACCESS TO HOME OWNERSHIP OPPORTUNITIES IN NATIONAL CITY.
THIS SLIDE REPRESENTS A KEY STEP, WHICH WAS OUR OWN NATIONAL CITY HOME OWN HOME OWNERSHIP RFP.
SO OUR REQUEST FOR PROPOSAL THAT WE PUT OUT, THE PRIMARY GOAL OF THIS EFFORT WAS TO ACTIVATE OUR SIX CITY OWNED SITES TO DELIVER AFFORDABLE AND MIXED INCOME HOME OWNERSHIP OPPORTUNITIES IN NATIONAL CITY FOR OUR RESIDENTS TO ACHIEVE THIS, THE CITY SOUGHT QUALIFIED NON-PROFIT AND FOR-PROFIT PROVIDERS WITH A DEMONSTRATED EXPERIENCE IN DELIVERING SIMILAR HOME OWNERSHIP PROJECTS, PARTICULARLY THOSE SERVING LOW AND MODERATE INCOME HOUSEHOLDS, WHICH REPRESENTS MOST OF OUR CITY.
IN ORDER TO ENSURE A STRONG, TRANSPARENT AND OBJECTIVE PROCESS, THE CITY RETAINED KAISER MARSON AND ASSOCIATES, KMA, A NATIONALLY RECOGNIZED ECONOMIC CONSULTING FIRM TO SUPPORT BOTH THE SOLICITATION AND EVALUATION
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OF THE PROPOSALS.THIS EVALUATION PROCESS IS ALSO DIRECTLY ALIGNED WITH THE CITY COUNCIL'S PRIORITIES TO EXPAND HOME OWNERSHIP OPPORTUNITIES, PARTICULARLY IN THIS COMMUNITY, UM, WHICH HAS HISTORICALLY FACED A BARRIER TO HOME OWNERSHIP.
OVERALL, THIS EFFORT REPRESENTS A CRITICAL TRANSITION FROM PLANNING TO PO AND POLICY TO IMPLEMENTATION, MOVING BEYOND STUDIES AND STRATEGY TOWARD THE ACTUAL DELIVERY OF NEW HOME OWNERSHIP UNITS FOR THE NATIONAL CITY COMMUNITY.
ULTIMATELY, THIS RFP IS A FOUNDATIONAL STEP IN CREATING LONG-TERM EQUITABLE ACCESS TO HOME OWNERSHIP AND STRENGTHENING NEIGHBORHOOD STABILITY ACROSS THE CITY.
WITH THAT, I'M GOING TO HAND IT OVER TO LIN GINO FROM KMA.
MR. MAYOR, MEMBERS OF THE COUNCIL, MY NAME IS LIN GINO.
I'M SENIOR PRINCIPAL WITH KAISER MARSTON ASSOCIATES, AND WE WERE TASKED WITH ASSISTING THE CITY IN THE EVALUATION OF THE PROPOSALS.
SO THE CITY RECEIVED RFP RESPONSES FROM THREE DEVELOPMENT TEAMS. CASA FAMILIAR, HEADQUARTERED IN SAN YSIDRO, THE TEAM OF COMMUNITY HOUSING WORKS AND HABITAT FOR HUMANITY, LOCATED IN SAN DIEGO AND THE TEAM OF OTTUM, LLC AND SAN ANDREAS GROUP FROM RANCHO SANTA FE AND LOS ANGELES RESPECTIVELY.
ALL THREE TEAMS HAVE PRIOR RESIDENTIAL DEVELOPMENT EXPERIENCE WITH CASA FAMILIAR AND THE COMMUNITY HOUSING WORKS AND HABITAT FOR HUMANITY TEAMS, IN PARTICULAR, HAVING PREVIOUS EXPERIENCE DEVELOPING NUMEROUS AFFORDABLE HOUSING DEVELOPMENTS IN SAN DIEGO COUNTY AS WELL AS THE CITY OF NATIONAL CITY.
UM, THE PROPOSALS WERE RECEIVED FOR ALL SIX SITES, PRIMARILY FOR FOR SALE RESIDENTIAL DEVELOPMENT WITH SOME PROPOSALS ALSO INCLUDING A FOUR RENT RESIDENTIAL COMPONENT, AS WELL AS SOME ALSO, UM, INTRODUCING A RENT TO OWN CONCEPT.
UM, WE WILL REVIEW INDIVIDUAL PROPOSALS FOR EACH SITE AS PART OF OUR PRESENTATION.
EACH DEVELOPER SUBMITTED A FINANCIAL PERFORMER, INCLUDING ESTIMATES OF DEVELOPMENT COSTS, SALES PRICES, AND RENTS, AND PROPOSED FUNDING SOURCES.
UM, THESE PERFORMERS WERE PROVIDED FOR THE FULL SITE AS WELL AS PORTIONS OF THE SITE.
ALMOST ALL PROPOSALS, UH, REQUEST A CITY LAND CONTRIBUTION AND TO THE PROPOSALS REQUESTED A LONG-TERM GROUND LEASE FROM THE CITY.
THE PROPOSALS RECEIVED WERE EVALUATED BASED ON THE FOLLOWING CRITERIA, THE DEVELOPER, DEVELOPER TEAM'S EXPERIENCE AND CAPACITY WITH COMPARABLE PROJECTS.
UH, PROJECT DESCRIPTION IN PARTICULAR, THE AFFORDABILITY DEPTH, THE DURATION AND RATIO OF AFFORDABLE UNITS TO TOTAL UNITS, THE PROJECT DESIGN, INCLUDING THE UNIT MIXES, ARE THEY SUITABLE FOR FAMILIES, AND THEN ALSO THEIR FINANCIAL PROPOSAL THAT DEMONSTRATES AN OVERALL FEASIBILITY NEXT SITE.
SO WE'LL GO THROUGH EACH OF THE DIFFERENT PROPOSALS FOR EACH OF THE SITES.
SO THE FIRST SITE IS SITE NUMBER ONE AND KNOWN AS THE PURPLE COW SITE, AND IT'S LOCATED AT NORTH HIGHLAND AVENUE AND EDA STREET AND CONSISTS OF APPROXIMATELY ONE AND A HALF ACRES.
UM, THE CITY RECEIVED ONE PROPOSAL FOR SITE NUMBER ONE FROM THE TEAM OF COMMUNITY HOUSING WORKS AND HABITAT FOR HUMANITY.
THE PROPOSAL FOR THE SITE CONSISTS OF 10 AFFORDABLE FOUR SEAL TOWN HOMES ON 0.37 ACRES AND 82 AFFORDABLE APARTMENTS ON 1.10 ACRES, AS WELL AS 92, UH, TOTAL PARKING SPACES.
THE FOUR SALE TOWN HOMES CONSIST OF ALL THREE BEDROOMS AND THE AFFORDABLE APARTMENTS INCLUDE A MIX OF JUNIOR, ONE BEDROOM, ONE BEDROOM, AND TWO BEDROOM UNITS.
THE TEN FOUR SALE TOWN HOMES WILL BE AFFORDABLE TO LOWER INCOME HOUSEHOLDS EARNING UP TO 70% AREA MEETING AND INCOME.
AND THE 82 AFFORDABLE APARTMENTS WILL BE AFFORDABLE TO EXTREMELY LOW AND LOW INCOME HOUSEHOLDS EARNING UP TO, UH, EARNING BETWEEN 30 AND 60% A MI UH, CHW AND HABITAT PROPOSED THE CITY DONATE THE LAND FOR THE FOR SALE COMPONENT AND ENTER INTO A LONG-TERM GROUND LEASE FOR THE RENTAL COMPONENT PORTION OF THE PROJECT.
FUNDING SOURCES PROPOSE FOR THE HOME OWNERSHIP COMPONENT WILL INCLUDE, UH, SALE PROCEEDS FROM THE SALE OF THE UNITS, WHICH, UH, WILL HAVE,
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UH, FIRST MORTGAGES PAID BY THE HOME BUYERS, UH, CAL HOME DEFERRED PAYMENT MORTGAGE PROGRAM FUNDS, WISH DOWN PAYMENT ASSISTANCE PROGRAM FUNDS, AND 2.5 MILLION IN DONOR AND CAPITAL CONTRIBUTION, AS WELL AS THE LAND CONTRIBUTION FROM THE CITY.THE PROPOSED FUNDING SOURCES FOR THE RENTAL COMPONENT INCLUDE LOW INCOME HOUSING TAX CREDITS, DEFERRED DEVELOPER FEE, A MIX OF LOCAL AND STATE FUNDING SOURCES, A PROPOSED RESIDUAL SEATS LOAN FROM THE CITY FOR THE VALUE OF THE GROUND LEASE, A CASH CONTRIBUTION FROM THE CITY OR OTHER, UH, THIRD, UH, OTHER SOURCES FOR 1.5 MILLION.
AND THEN THE DEVELOPMENT TEAM IS ALSO PROPOSING, UH, EIGHT VOUCHERS FROM THE CITY'S HOUSING AUTHORITY.
UH, STAFF FINDS THAT THE DEVELOPMENT TEAM AND THE PROJECT PROPOSAL SUFFICIENTLY MEETS THE RFP EVALUATION CRITERIA AND THEREFORE RECOMMENDS THE SELECTION OF THE CHW HABITAT TEAM TO ENTER INTO AN EXCLUSIVE NEGOTIATION AGREEMENT AND SUBSEQUENTLY A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE CITY FOR THE DEVELOPMENT OF SITE ONE.
UH, STAFF NOTES THAT WHILE THE RATIO OF HOME OWNERSHIP UNITS TO TOTAL UNITS AT 11% IS A BIT LOW, STAFF RECOGNIZES THAT THE RENTAL HOUSING COMPONENT HAS THE POTENTIAL TO LEVERAGE FUNDING SOURCES SUCH AS LOW INCOME HOUSING TAX CREDITS THAT ARE NOT AVAILABLE FOR AFFORDABLE FOR SALE DEVELOPMENTS.
SO THAT CONCLUDES A PRESENTATION FOR SITE ONE.
WE'LL MOVE ON TO SITE NUMBER TWO.
SO SITE NUMBER TWO IS KNOWN AS THE DIVISION STREET SITE, AND IT'S LOCATED AT THE NORTHWEST CORNER OF DIVISION STREET AND R AVENUE AND CONSISTS OF APPROXIMATELY 6,400 SQUARE FEET SLIDE.
THE CITY RECEIVED ONE PROPOSAL FORESIGHT TWO FROM THE COMMUNITY HOUSING AND HABITAT FOR HUMANITY DEVELOPMENT TEAM.
THE PROPOSAL FOR THE 6,400 SQUARE FOOT SITE CONSISTS OF TWO UNITS, ONE UNIT AS A SINGLE FAMILY, THREE BEDROOM HOME, WHICH, UH, NOTED AS THE MAIN HOME AND A SECOND UNIT AS A TWO BEDROOM ACCESSORY DWELLING UNIT.
THE PROJECT ALSO WILL HAVE TWO PARKING SPACES.
THE UNITS WILL BE AFFORDABLE TO HOUSEHOLDS EARNING UP TO 70% A MI.
AND THEN THE FUNDING SOURCES PROPOSED INCLUDE, UH, SALES PROCEEDS FROM THE SALE OF THE UNITS WITH THE FIRST MORTGAGE PAID BY THE HOME BUYERS.
A CAL HOME AND WISH HOME PROGRAM FUNDS ABOUT $110,000 IN DONOR AND CAPITAL CONTRIBUTIONS AND LAND CONTRIBUTION FROM THE CITY.
AND THAT STAFF FINDS THAT THE PROPOSAL SUFFICIENTLY MEETS THE RFP EVALUATION CRITERIA AND THEREFORE RECOMMENDS THAT THE SELECTION OF THE CHW UM, HABITAT TEAM TO ENTER INTO AN ENA AND SUBSEQUENTLY A DDA FOR THE DEVELOPMENT OF SITE NUMBER TWO.
OKAY, THEN MOVING ON TO SITE NUMBER THREE.
UM, SITE NUMBER THREE KNOWN AS THE ROOSEVELT LOT SITE IS LOCATED ON THE SOUTHEAST CORNER OF ROOSEVELT AVENUE AND WEST 11TH STREET.
THE CITY RECEIVED TWO PROPOSALS FOR SITE THREE FROM CHW HABITAT AND TUMBA AND SAN SAN ANDRES.
THE CHW HABITAT PROPOSAL FOR SITE THREE CONSISTS OF 24 SALE UNITS, COMPRISED OF A MIX OF STUDIOS, ONE BEDROOM FLATS, LOFTS, AND TOWN HOMES, AND FOUR PARKING SPACES.
ALL 20 UNITS WILL BE AFFORDABLE TO LOWER INCOME HOUSEHOLDS EARNING UP TO 70% A MI FUNDING SOURCES PROPOSED INCLUDES SALES PROCEEDS FROM THE SALE OF THE UNITS WITH FORCED MORTGAGES PAID BY THE HOME BUYERS.
CAL HOME AND WISH PROGRAM FUNDS 1.6 MILLION IN DONOR AND CAPITAL CONTRIBUTIONS AND A LAND CONTRIBUTION FROM THE CITY.
ALRIGHT, AND THEN THE OBA SAN ADDRESS PROPOSAL CONSISTS OF SITE THREE AND THE ASSEMBLAGE OF TWO ADDITIONAL PARCELS TO EXPAND THE DEVELOPMENT SITE.
UH, 0.13 ACRE PARCEL LOCATED AT 1 1 1 5 ROOSEVELT AVENUE, OWNED BY THE DEVELOPER OTTO.
AND THEN A 0.33 ACRE, UH, PARCEL LOCATED AT 1 1 1 2 NATIONAL CITY BOULEVARD.
CURRENTLY UNDER CONTRACT BY THE DEVELOPER, THE OMBA SAN, UH, A PROPOSAL, UM, UH, DEVELOPMENT OF THREE AFFORDABLE FOR SALE UNITS
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AND THREE FOUR SALE MARKET RATE UNITS AND 115 RENTAL UNITS ON THE ENTIRE EXPANDED DEVELOPMENT SITE AS WELL AS 139 PARKING SPACES.THE SIX FOUR SALE UNITS WILL INITIALLY BE DEVELOPED AS RENTAL UNITS AND CONVERTED TO FOUR SALE UNITS IN THE PROJECTS.
SEVENTH, UH, YEAR FOLLOWING PROJECT STABILIZATION, THE THREE AFFORDABLE FOUR SALE UNITS WILL BE AFFORDABLE TO VERY LOW INCOME HOUSEHOLDS EARNING UP TO 40% A MI FUNDING SOURCES FOR THE FOR SALE COMPONENT WILL INCLUDE, UH, SALES PROCEEDS FROM THE SALE OF THE UNITS.
ALSO FORM, UH, WITH FIRST MORTGAGES PAID BY THE HOME BUYERS, DOWN PAYMENT ASSISTANCE PROVIDED BY THE DEVELOPER, A ONE POINT MILLION FROM A PRIVATE EQUITY SOURCE IDENTIFIED AS ULTRA HIGH NET WORTH FAMILY OFFICE AND A LAND CONTRIBUTION FROM THE CITY.
A PERFORMER WAS NOT SUBMITTED FOR THE BALANCE OF THE PROJECT, WHICH IS THE 115 RENTAL UNITS.
SO KMA WAS UNABLE TO ASSESS THE FEASIBILITY OF THE RENTAL COMPONENT PORTION OF THE PROJECT.
NEXT STAFF FINDS THAT OF THE TWO PROPOSALS, THE PROPOSAL BY CHW HABITAT BETTER SATISFIES THE RFP EVALUATION CRITERIA AND THEREFORE RECOMMENDS THE SELECTION OF CHW HABITAT TO ENTER INTO AN ENA AND SUBSEQUENTLY A DDA FOR THE DEVELOPMENT OF SITE THREE.
OKAY, AND THEN MOVING ON TO SITE FOUR, UM, SITE FOUR IS KNOWN AS THE A, A AVENUE PROPERTY LOCATED AT 10 28 A AVENUE.
AND THE CITY RECEIVED TWO PROPOSALS FOR SITE FOUR FROM CHW HABITAT AND OTTO SAN ANDREAS.
THE COMMUNITY HOUSING WORKS HABITAT, UH, PROPOSAL FOR SITE FOUR CONSISTS OF THREE FOUR SALE TOWN HOMES, ALL WITH THREE BEDROOMS AND THREE PARKING SPACES.
THE THREE FOR SALE UNITS WILL BE AFFORDABLE TO LOWER INCOME HOUSEHOLDS EARNING UP TO 70% A MI AND THE FUNDING SOURCES PROPOSED INCLUDE FIRST MORTGAGE PAID BY THE HOME BUYERS CAL HOME AND WISH PROGRAM FUNDS, AND 1.1 MILLION IN DONOR AND CAPITAL CONTRIBUTIONS, AS WELL AS A LAND CONTRIBUTION FROM THE CITY.
THE OMBA SAN ANDREAS PROPOSAL FOR SITE FOUR, UM, ASSUMES THE ASSEMBLAGE OF TWO ADDITIONAL PARCELS CURRENTLY OWNED BY THE DEVELOPER.
UH, A A ZERO FIVE ACRE PARCEL AT 10 20 24 8 AVENUE AND A ZERO, UM, POINT 30 ACRE PARCEL AT 32 EAST PLAZA PLAZA BOULEVARD.
UM, TOMBA ANDRES PROPOSES THE DEVELOPMENT OF 18 TOWN HOME DEVELOPMENT, UH, TOWN HOME DEVELOPMENT ON THE EXPANDED SITE, WHICH IS THE CITY PARCEL AND THE TWO PARCELS OWNED BY THE DEVELOPER.
THE TWO AFFORDABLE FOR SALE UNITS WILL BE DEVELOPED ON SITE FOUR, AND ALL OTHER, UH, UNITS WILL BE PLATED FOR A FUTURE CONDO CONVERSION.
UM, THE ENTIRE, INITIALLY THE DEVELOPMENTS WILL ALL BE RENTAL.
THE PROJECT WILL ALSO INCLUDE 37 PARKING SPACES.
FUNDING SOURCES FOR THE TWO AFFORDABLE UNITS ON SITE FOR WILL INCLUDE A FIRST MORTGAGE PAID BY THE HOME BUYERS DOWN PAYMENT ASSISTANT PROVIDED BY THE DEVELOPER, 1.2 MILLION FROM A PRIVATE EQUITY SOURCE IDENTIFIED AS ULTRA HIGH NET WORTH FAMILY OFFICE.
AND THE LAND CONTRIBUTION FROM THE CITY, UH, PERFORMA WAS NOT SUBMITTED FOR THE, UM, FOR THE BALANCE OF THE PROJECTS.
WE JUST HAD ONE FOR THE TWO UNITS.
AND SO KMA WAS UNABLE TO ASSESS THE FEASIBILITY OF THE BALANCE OF THE PROJECT.
UM, AND THEN STAFF FINDS THAT OF THE TWO PROPOSALS, THE, UH, RECEIVE THE PROPOSAL BY CHW HABITAT BETTER SATISFIES THE RFP EVALUATION CRITERIA AND THEREFORE RECOMMENDS THE SELECTION OF CHW HABITAT TEAM TO ENTER INTO AN ENA AND SUBSEQUENTLY A DDA FOR THE DEVELOPMENT OF SITE FOUR.
OKAY, THEN MOVING ON TO SITE FIVE.
SO SITE FIVE KNOWN AS THE LAMBS THEATER SITE IS LOCATED ON THE SOUTHEAST CORNER OF EAST PLAZA BOULEVARD AND EAST E AVENUE.
THE CITY RECEIVED TWO PROPOSALS FOR SITE FIVE FROM CASA FAMILIAR AND THE TEAM OF CHW
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HABITAT.THE CASA FAMILIAR PROPOSAL FOR SITE FIVE, UM, INCLUDES TWO ADJACENT PARCELS, CURRENTLY OWNED BY THE DEVELOPER 0.37 ACRES AT 1101 TO 1119 EAST AVENUE AND 0.45 ACRES AT 10 19 TO 10 49 E AVENUE CASA FAMILIAR PROPOSES DEVELOPMENT OF 60 RENTAL UNITS THAT WILL CONVERT TO OWNERSHIP UNITS AFTER THE INITIAL 15 YEAR AFFORDABILITY PERIOD.
NEIGHBORING PROPERTIES CONSIST OF 26 UNITS WILL, WHICH WILL BE DEMOLISHED, RESULTING IN AN ADDITIONAL 34 NET PROJECT UNITS.
THE DEVELOPMENT WILL ALSO INCLUDE 68 PARKING SPACES.
30% OF THE UNITS ARE THREE BEDROOM UNITS.
WITH THE BALANCE PROPOSED AS ONE AND TWO BEDROOM UNITS, THE PROJECT 60 UNITS WILL BE AFFORDABLE TO EXTREMELY LOW, VERY LOW AND LOW INCOME HOUSEHOLDS EARNING BETWEEN 30 TO 60% A MI.
UM, THE PROJECT IS PROPOSED AS A RENTAL TO OWNERSHIP CONVERSION MODEL ALSO INCLUDES THE FORMATION OF A COMMUNITY LAND TRUST, SIMILAR TO CASA FAMILIARS OF ONDO APARTMENT DEVELOPMENT CURRENTLY UNDER CONSTRUCTION IN SAN, THIS MODEL PRESENTS SOME OPPORTUNITIES AS WELL AS CHALLENGES.
IT PROVIDES A UNIQUE POTENTIAL PATHWAY TO FUND AFFORDABLE HOME OWNERSHIP THROUGH LOW INCOME HOUSING TAX.
CREDIT FUNDING, UH, TAX CREDIT REGULATIONS REQUIRES THAT THE FIRST 15 YEAR COMPLIANCE PERIOD TO BE OPERATED AS RENTAL.
UM, THE, UH, THE CONVERSION PROCESS AFTER 15 YEARS HAS NOT YET BEEN TESTED AND THERE WILL BE LIKELY SOME, YOU KNOW, REGULATORY HOOPS AND OTHER ISSUES TO BE, UH, RESOLVED.
BUT THE ALDO PROJECT IS THE FIRST PROJECT TO GO FORWARD FOR THE DEVELOPERS.
SO THERE DEFINITELY WILL BE SOME LEARNING CURVE FROM THAT EXPERIENCE.
UH, FUNDING SOURCES PROPOSED IN, UH, FOR THIS PROJECT INCLUDES LOW INCOME HOUSING TAX CREDITS, A DEFERRED DEVELOPER FEE, A MIX OF LOW, LOCAL AND STATE FUNDING SOURCES, AS WELL AS A LAND CONTRIBUTION FROM THE CITY.
THE CHW HABITAT PROPOSAL, UH, FOR SITE FIVE, UM, IS FOR 62 RENTAL UNITS ON SITE FIVE IN A MIX OF STUDIOS, JUNIOR, ONE BEDROOMS AND ONE BEDROOMS AND TWO BEDROOM TOWN HOMES, AS WELL AS 44 PARKING SPACES.
THE PROPOSAL DOES NOT CONTAIN ANY HOME OWNERSHIP UNITS.
THE PROJECT 62 UNITS WILL BE AFFORDABLE TO EXTREMELY LOW, VERY LOW AND LOW INCOME HOUSEHOLDS EARNING BETWEEN 30 TO 60% AREA MEETING INCOME.
AND CHW HABITAT PROPOSES TO GROUND LEASE THE SITE FROM THE CITY FOR BETWEEN 75 TO 99 YEARS.
FUNDING SOURCES INCLUDE LOW INCOME HOUSING TAX CREDITS, A DEFERRED DEVELOPER FEE, A MIX OF LOCAL STATE AND FUNDING SOURCES, A PROPOSED RESIDUAL RECEIPT LOAN FROM THE CITY FOR THE VALUE OF THE GROUND LEASE, UH, AS WELL AS THE CASH CONTRIBUTION FROM THE CITY OR OTHER SOURCE FOR 1.5 MILLION.
UH, THE CCHW HABITAT TEAM ALSO PROPOSES EIGHT, UH, PROJECT BASED VOUCHERS FROM THE HOUSING AUTHORITY.
UM, AND LAST, UH, STAFF FINDS THAT OF THE TWO PROPOSALS, THE, UH, PROPOSAL BY CASA F BETTER SATISFIES THE RFP EVALUATION CRITERIA AND THEREFORE RECOMMENDS THE SELECTION OF A CASA FM TO ENTER INTO AN ENA AND SUBSEQUENTLY A DDA FOR THE DEVELOPMENT OF SITE FIVE.
THE RECOMMENDATION IS BASED ON AN INNOVATION AND POTENTIAL FOR A SUBSTANTIAL NUMBER OF HOME OWNERSHIP UNITS AS MENTIONED, ALTHOUGH NO HOME OWNERSHIP UNITS, UH, WOULD EXIST INITIALLY, THE PROPOSAL TAKES A UNIQUE APPROACH TO PROVIDING AFFORDABLE HOME OWNERSHIP.
HOWEVER, THERE IS SOME UNCERTAINTY RELATING TO THE LACK OF TRACK RECORD FOR THIS MODEL.
AND THEN LASTLY, SITE NUMBER SIX, KNOWN AS THE PLAZA BONITA SITE IS LOCATED ON PLAZA BONITA CENTER WAY, JUST SOUTH OF SR 54.
UH, THE CITY RECEIVED ONE PROPOSAL FOR THE SITE FROM THE TEAM OF COMMUNITY HOUSING WORKS AND HABITAT FOR HUMANITY.
UM, THE SITE IS BIFURCATED BY PLAZA BONITA CENTER WAY ON THE WESTERN PORTION OF THE SITE.
CHW HABITAT FOR HUMANITY PROPOSED, UH, FOR 30 FOR SALE UNITS COMPRISED OF THREE AND FOUR BEDROOM TOWN HOMES.
AND THEN ON THE EASTERN PORTION OF THE SITE, CHW HABITAT ENVISIONED THE CREATION OF A COMMUNITY
[00:45:01]
GARDEN FOR PROJECT RESIDENTS AS WELL AS THE SURROUNDING COMMUNITY.THE PROJECT WILL ALSO INCLUDE 33 PARKING STA SPACES.
ALL 34 SALE UNITS WILL BE AFFORDABLE TO LOWER INCOME HOUSEHOLDS EARNING UP TO 70% A MI.
AND THE, UM, DEVELOPMENT COSTS ON THIS PARTICULAR PROPOSAL WERE HIGHER THAN WHAT WE SAW IN THE OTHERS, BUT THAT IS PRIMARILY REFLECTIVE OF THE EXTENSIVE AMOUNT OF SITE GRADING AND BALANCING, UM, THAT IS NEEDED DUE TO THE SITE SLOPED TERRAIN.
I THINK THE FUNDING SOURCES PROPOSED INCLUDE THE FIRST MORTGAGES PAID BY THE HOME BUYERS, CAL HOME AND WISH PROGRAM FUNDS 11.4 MILLION IN DONOR AND CAPITAL CONTRIBUTIONS, AS WELL AS A LAND CONTRIBUTION FROM THE CITY.
AND STAFF FINDS THAT THIS PROPOSAL SUFFICIENTLY MEETS THE RFP EVALUATION CRITERIA AND THEREFORE RECOMMENDS AND THE SELECTION OF CHW AND, AND THE HABITAT TEAM TO ENTER INTO AN ENA AND SUBSEQUENTLY A DDA FOR THE DEVELOPMENT OF SITE SIX.
AND, UH, WITH THAT ANGELITA PALMA COMMUNITY DEVELOPMENT MANAGER, NATIONAL CITY HOUSING AUTHORITY, UH, THAT LEADS US BACK TO, UM, SEEKING COUNSEL DIRECTION.
BUT I DO HAVE A COUPLE MORE SLIDES TO GO OVER.
SO I'M GOING TO TAKE THIS OUT OF ORDER.
CAN WE GO TO THE LAST SLIDE, WHICH IS THE NEXT STEPS? UH, SO I WANTED TO GO OVER THIS JUST TO LET YOU KNOW WHAT WOULD BE, UH, COMING.
SO, UM, LOOKING AHEAD, WE HAVE, UH, SO PENDING COUNCIL DIRECTION.
SO AFTER OUR DISCUSSIONS TODAY, WE WILL PROCEED INTO WHAT IS THE NEXT PHASE, WHICH INCLUDES INTERVIEWS AND NEGOTIATIONS WITH SELECTED DEVELOPMENT TEAMS. STAFF WILL THEN ENTER INTO EXCLUSIVE NEGOTIATION AGREEMENTS OR E ASS TO ALLOW FOR DUE DILIGENCE AND REFINEMENT OF PROJECT DETAILS.
SO THROUGH THIS PROCESS, STAFF WILL NEGOTIATE DISPOSITION AND DEVELOPMENT AGREEMENTS OR DDAS, WHICH WILL FORMALIZE THE LEGAL AND FINANCIAL DEVELOPMENT TERMS FOR EACH SITE.
THESE AGREEMENTS WILL DEFINE THE PROJECT SITE DESIGN AND AFFORDABILITY REQUIREMENTS IN LAND PURCHASE OR LEASE TERMS, MOVING F MOVING AND MOVING FORWARD AND PROJECT THE PROJECT TOWARDS IMPLEMENTATION.
SO, UH, NOW WE CAN MOVE BACK ONE SLIDE.
SO WITH THAT, AT THIS POINT, STAFF WILL SEEK THE CITY COUNCIL, UM, CITY COUNCIL'S DIRECTION.
I KNOW WE DO HAVE TO OPEN THE ITEM UP FOR PUBLIC COMMENT, AND I'M SURE YOU HAVE SOME QUESTIONS FOR THE DEVELOPERS AS WELL AS, UH, STAFF AND OUR CONSULTANT.
UH, SO WITH THAT, I'LL, I'LL HAND IT BACK TO YOU, MAYOR.
UH, LET ME ASK YOU A COUPLE GENERAL QUESTIONS THAT AREN'T SPECIFIC TO ANY ONE PROJECT.
UH, A NUMBER OF THESE ARE FOR SALE UNITS AND THEIR TOWN HOMES, THINGS ON THAT LINE.
UH, HOW ARE WE GETTING AROUND DESIGN DEFECT ON ALL THAT? YEP.
I BELIEVE, I MEAN, THAT WOULD PROBABLY, THE DEVELOPERS WOULD EACH PROBABLY BE BETTER EQUIPPED TO ANSWER THAT QUESTION.
THAT'S A GENERAL 'CAUSE IT INVOLVES A NUMBER OF THESE DIFFERENT PROJECTS, NOT JUST THE SINGLE ONE.
UM, SO YEAH, WE CAN HAVE THE DEVELOPERS ANSWER, UH, THOSE SPECIFIC QUESTIONS.
IT WAS PART OF OUR OWN NATIONAL CITY STUDY.
THERE WAS AN EXHIBIT ON A DESIGN, UH, OR ON, WHAT IS IT EXACTLY? UH, CONSTRUCTION DEFECT INSURANCE.
THERE WAS A, AN EXHIBIT ON THAT.
UH, SO WITH THAT, I'M GOING TO ASK, UM, TWO PEOPLE, UH, FROM EACH OF THE DEVELOPMENT TEAMS TO STEP FORWARD AND COME TO THE TABLE.
SO YOU HAVE MICROPHONES TO SPEAK TO, TO SPEAK ON.
WE DIDN'T HAVE A FIGHT OVER WHICH TWO RECEIVED.
AND UH, WE ALSO HAVE A DEVELOPMENT TEAM ON ZOOM.
UH, SO IF YOU, UM, COULD UNMUTE THEM WHEN APPROPRIATE.
SO, UH, WE'LL START WITH ONE DEVELOPMENT TEAM AT A TIME JUST TO GIVE EVERYONE A FAIR OPPORTUNITY.
AND IS THIS THE CORRECT TIME IN THE, IN THE PRESENTATION TO BE GOING THROUGH AND ASKING THEM QUESTIONS OR, UH,
[00:50:01]
DO WE NEED TO OPEN IT UP FOR PUBLIC COMMENT FIRST? WELL, WE HAD PUBLIC COMMENT ON THIS ITEM ALREADY.UM, SO WITH THAT, UM, MEANT DO WE NEED TO OPEN THE PUBLIC HEARING? IT'S, IT'S NOT A PUBLIC HEARINGS.
UM, SO, UH, SINCE WE HAVE, UM, A TEAM ON ZOOM, I WILL, UH, ASK THAT WE, UM, MAYBE SEE IF THEY HAVE A RESPONSE.
I BELIEVE ALEX FROM THE TUMBA, SAN ANDREAS, UM, ONE, TWO YOU.
IS IT POSSIBLE THAT WE GO LAST GET RESTARTED JUST 'CAUSE I'M OKAY.
SO, UM, THEY ARE ASKING TO GO LAST.
UM, SO I'M GONNA START WITH CHW AND, UM, HABITAT FOR HUMANITY.
UM, GOOD EVENING, UH, COUNCIL MEMBERS AND THANKS FOR HAVING ME.
UM, MY NAME IS KAFI REED AND I'M THE PRESIDENT AND CEO OF SAN DIEGO HABITAT.
AND, UM, UH, WE JUST HAD A, UH, MINI EXCHANGE DEBATING WHO WAS GONNA GO FIRST ANSWERING THIS QUESTION HERE AT THE DAAS BECAUSE IT'S A VERY GOOD QUESTION AND FRANKLY, ONE THAT DOESN'T HAVE A PARTICULARLY APPETIZING ANSWER.
AND THE TRUTH IS THAT IT'S AN ONGOING AND CHALLENGING ISSUE.
HABITAT'S APPROACH HAS BEEN TO MAINTAIN AN ONGOING RELATIONSHIP WITH THE BUYERS OF ALL OF OUR UNITS.
WE MAINTAIN A FIRST RIGHT TO REPURCHASE THOSE HOMES AND WE SEE OURSELVES AS AN ONGOING ASSET MANAGER.
SO ANYTIME A OWNER OF ONE OF OUR HOMES HAS AN ISSUE, BE IT IN YEAR ONE, YEAR FIVE, YEAR 15, OR YEAR 30, WE HAVE AN INCENTIVIZED INTEREST TO MAKE SURE THAT THAT UNIT IS KEPT IN GOOD CONDITION BECAUSE WE WOULD EVENTUALLY VERY MUCH LIKE TO REPURCHASE IT AND SELL IT TO ANOTHER LOW INCOME FAMILY.
SO WHAT THAT EFFECTIVELY MEANS IS THAT IF AND WHEN FOLKS HAVE A PROBLEM WITH THEIR UNIT, WE ARE COMING OUT, WE ARE ASSESSING IT, WE ARE HELPING THEM PUT TOGETHER A FINANCIAL PLAN FOR, UH, FOR MITIGATING IT, WE ARE POTENTIALLY OVERSEEING THOSE SUBCONTRACTORS.
BUT AT THE END OF THE DAY, IF AT YEAR 10 THEY CHOOSE TO SUE US, WE WILL BE RELYING ON OUR INSURANCE AND OUR FINANCIAL CAPACITY TO RESPOND.
OUR GOAL SO FAR, AND WE'VE BEEN VERY SUCCESSFUL WITH IT HAS, IS TO BE A PARTNER WITH OUR HOME BUYERS.
WE CALL THEM PARTNER FAMILIES, AND TO TRY TO ADDRESS THOSE NEEDS ON AN ONGOING BASIS SO THAT IN YEAR EIGHT OR NINE WHEN AN ATTORNEY, AND I'M AN ATTORNEY BY, BY TRAINING THOUGH NOT BY TRADE, UM, WHEN FAIR ENOUGH, UH, WHEN AN ATTORNEY UM, COMES AND SAYS, HEY, LOOK, THERE'S THESE INCENTIVES TO SUE YOUR BUILDER.
WE'VE BUILT UP ENOUGH OF ENOUGH RELATIONSHIP EQUITY WITH THEM THAT THEY DON'T TAKE THAT CHOICE THAT HAS BEEN SUCCESSFUL FOR US SO FAR WITH THE 200 UNITS OR SO THAT WE HAVE, UM, IN OUR LOAN PORTFOLIO, BUT IS AN ONGOING ISSUE.
AND I WOULD BE LYING IF I SAID I HAD A SILVER BULLET FOR FIXING IT.
YOU KNOW, THAT WAS A VERY THOROUGH ANSWER, BUT I, I APOLOGIZE.
WELL, I, WHAT WERE WE GONNA HEAR FROM SOMEONE, THE OTHER DEVELOPER? AND THEN I HAD A FOLLOW UP QUESTION TO THAT.
UM, SO FOR THE, UH, FOLLOW UP, UM, SINCE THAT WAS SUCH A THOROUGH ANSWER AND FOR THE SAKE OF TIME, DO WE THINK IT'S NECESSARY TO HEAR FROM EACH DEVELOPER, UH, ON THAT? WELL, LET ME, LET ME SAY THIS.
IF THEY HAVE A DIFFERENT ANSWER YEAH.
IF, IF THEY HAVE A DIFFERENT ANSWER.
BUT LET ME, UM, SO IT WAS, UM, ACTUALLY NOT THOROUGH ENOUGH FOR ME.
UM, BECAUSE WHAT I AM LOOKING FOR IS KIND OF THE ROOT CAUSE, WHICH IT SEEMS LIKE IT'S STATE LEGISLATION OR IS IT THE FEDERAL LEVEL? SO THAT'S WHAT I WANT TO GET AT BECAUSE I THINK WE OFTEN HEAR THAT, OH, THIS IS HARD, BUT I WOULD LIKE MORE PARTICIPATION FROM EVERYONE IN THE ROOM.
IF IT'S STATE LAW WE NEED TO CHANGE, THEN HOW DO WE LIKE REALISTICALLY HAVE A PLAN TO GO ABOUT CHANGING IT? AND I'VE SAID THIS FOR YEARS ANECDOTALLY, AND I'M NOT A POLICY EXPERT ON THE GOINGS ON IN SACRAMENTO.
MY UNDERSTANDING FROM OUR POLICY ANALYST IS THAT IS FUNDAMENTALLY A STATE LAW ISSUE.
UH, A RIGHT THAT WAS CREATED TO ESSENTIALLY TRY TO EMPOWER AND PROTECT HOME BUYERS, HAS ACCOMPLISHED THAT IN MANY WAYS, BUT HAS ALSO BEEN, UM, WILL MAYBE USE THE POLITE WORD, UH, WARPED AND, AND TURNED INTO AN OUTCOME THAT HAS BEEN, UH, DETRIMENTAL TO YEAH, THE UNINTENDED CONSEQUENCES, RIGHT? YES.
SO THEN IT WOULD BE STATE LEGISLA, IS IT, SO THEN IT WOULD BE THE STATE LEGISLATURE THAT WOULD, THAT WOULD MAKE THAT CHANGE.
AND THEY HAVE NOT WANTED TO, WANTED TO ADDRESS THAT.
SO LEMME ASK THIS FOR OUR CITY STAFF, IF THEY KNOW.
SO ARE THERE LEGAL TEAM OR OUR HOUSING TEAM, DO WE HAVE IT ON OUR
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POLICY, UM, PLATFORM TO CHANGE THAT? DOES THAT EXIST? AND IF YOU DON'T HAVE THE ANSWER RIGHT NOW, THAT THAT'S FINE.BUT YEAH, TO MY KNOWLEDGE, IT'S NOT ON A POLICY PLATFORM RIGHT NOW.
WE HEAR FROM YOU HERE FROM THE OTHER TEAM.
I'M WORK THE ARCHITECT WORKING WITH CASA FAMILIAR ON THE LAMBS, UH, PLAYERS, UH, PROJECT FOR, AS YOU HEARD IN THAT PRESENTATION EARLIER, THE FOUR SALE PORTION WOULD OCCUR AT YEAR 15.
AND SO WE'RE OUTSIDE OF THAT SORT OF 10 YEAR RISK WINDOW.
UH, THE, THE OTHER, UH, THE THIRD DEVELOPER THAT WAS ONLINE, DO YOU HAVE ANYTHING TO ADD? UH, WHICH ONE WOULD YOU LIKE TO SPEAK OR HEAR FROM? I, I DON'T KNOW THEIR NA I DON'T KNOW WHICH COMPANY.
I BELIEVE, UM, ALEX FROM TUMBA, SAN ANDREAS, UH, HI.
WILL BE ANSWERING ALL OF THE QUESTIONS.
THE, UH, LOOK, THE REAL AS, AS IT'S BEEN STATED, THE REALITY IS THAT THERE'S A, A, UH, YOU KNOW, THERE'S, THERE'S A LENGTHY LIABILITY WINDOW, UM, FOR THE FOR SALE PRODUCT.
UH, WE LOOKED AT A, A NEAR TERM RENTAL OPTION TO MITIGATE THAT RISK, UM, AS PART OF OUR, OUR PROPOSED STRUCTURE.
UM, ANOTHER JUST BROAD QUESTION AND TO TO, TO TO, TO KIND OF ADDRESS THE OTHER KIND OF OPEN QUESTION REGARDING AN ABILITY TO CHANGE THE STATE LAW.
UM, THE, YOU KNOW, THE ISSUES WITH CONDOMINIUMS FROM A LIABILITY STANDPOINT HAS BEEN A, A DRAG ON CON, YOU KNOW, NEW CONDO DEVELOPMENT IN CALIFORNIA FOR SOME TIME.
UM, AND, UH, YOU KNOW, IT'S, IF YOU KIND OF LOOK AT THE COASTLINE OF CALIFORNIA AND COMPARE TO THE COASTLINE OF FLORIDA, UH, FROM A, FROM A CONDO DEVELOPMENT STANDPOINT, YOU SEE THE DI THE DIFFERENCE, THERE'S A LOT MORE CONDOMINIUM DEVELOPMENTS AND, AND FLORIDA.
'CAUSE THERE, THERE'S JUST DIFFERENT REGULATION AND LAW AROUND IT.
UM, DESPITE THAT, UH, IMPACT ON, ON THAT THE INDUSTRY AND ITS ABILITY TO IMPACT THE ECONOMY LOCALLY WITH THAT, THOSE NEW CONSTRUCTION PROJECTS THAT, THAT, UM, THOSE LAWS HAVE REMAINED IN PLACE.
UH, SO THEY, UH, YOU KNOW, MANY IN THE INDUSTRY KIND OF FEEL THAT THEY'RE FAIRLY STICKY.
UM, AND THE ABILITY TO, TO CHANGE THEM I I IS IS IS RATHER RATHER DIFFICULT.
UM, ALTHOUGH, YOU KNOW, IT, IT, IT, YOU KNOW, IT'S CERTAINLY WITHIN THE REALM OF POSSIBILITY, IT REALLY BECOMES A LIABILITY THAT ANYBODY INVOLVED IN, IN THOSE CONDOMINIUMS BEARS.
UM, AND, AND THAT'S TRUE OF THE DESIGN TEAM, THE ARCHITECTURE, THE ENGINEERING, UH, THE DEVELOPER, UM, AND, AND THE OTHER OWNERS.
UH, ANOTHER QUESTION IS THAT A NUMBER OF THE UNITS ON DIFFERENT PROJECTS, UH, HAVE A FOR SALE AVAILABILITY.
THE QUESTION IS, IS THAT DEEDED FOR OWNER OCCUPIED ONLY? YEAH, I BELIEVE THAT THAT AFFORDABILITY COVENANTS THAT WOULD BE, UM, IMPOSED ON THE UNITS WOULD REQUIRE OWNER OCCUPANCY.
SO IT'D HAVE TO BE OWNER OCCUPANT WITHIN THOSE.
I THINK THE ONE DIFFERENT ONE WOULD BE THE, UH, THE ONE THAT HAS THE A DU.
SO I'M ASSUMING THE A DU WOULD BE A RENTAL.
UM, SO, UM, WE DON'T HAVE ANY THAT HAVE A DU, UH, THERE'S AN OPTION FOR, UM, THE, UM, DIVISION.
THE DIVISION OUR STREET HAS A OH, OH I APOLOGIZE, A THREE BEDROOM AND A TWO BEDROOM.
I, I WAS ACTUALLY THINKING OF, UM, ONE OF OUR OTHER DEVELOPMENTS, RIGHT, THAT, UM, HAVE GARAGES THAT CAN, CAN BE CONVERTED TO ADUS.
RIGHT? THEY COST A YARD OF, UH, DEVELOPMENT.
UM, SO, UM, LET ME JUST HAND IT BACK TO LENNY TO RESPOND.
THE, THE PERFORMA IS SHOWING THAT PARTICULAR UNIT ALSO IT, THE, THE PROJECT ITSELF IS LIKE ONE FOR SALE PROJECT, RIGHT? YEAH.
BUT, BUT I SAY THE A DU OF COURSE WOULD BE A RENTAL OF THE OWNER OF THE, THE THREE BEDROOM.
JUST, JUST WANTED TO GET SOME CLARIFICATION ON THAT.
BUT, BUT MAYOR, I THINK I THOUGHT THAT, UH, THERE WAS A STATE LAW RECENTLY PASSED THAT ALLOWED, UH, ADUS TO BE
[01:00:01]
SOLD SEPARATELY IF WE AT THE CITY MAKE THE DETERMINATION THAT, UM, BASICALLY ALLOW LOT SPLITTING OR I DON'T KNOW, CITY ATTORNEY, IT IS CALLED WHOLESALING.I MEAN, GREAT WAY TO RUIN A NEIGHBORHOOD, BUT, BUT YOUR YOUR POINT IS MAKING SURE THAT IF WE'RE GONNA HAVE THESE HOMEOWNERS THAT WE, THEY'RE NOT TURNING AROUND AND RENTING IT AND THEN YEAH.
YOU DON'T SELL SOMEONE THEN THEY TURN IT INTO A RENTAL.
UM, ALRIGHT, OTHER, OTHER QUESTIONS.
THOSE WERE JUST SPEC, THOSE WEREN'T SPECIFIC TO ANY ONE PROJECT THAT I THINK, AND I, I, I'LL, UH, I'VE TURNED IT TO THE REST OF THE COUNCIL.
I'VE GOT QUESTIONS ON EACH INDIVIDUAL SPECIFIC ONE, BUT I JUST WANT TO ASK THOSE GENERAL QUESTIONS.
UH, SO SOMETHING THAT WE REQUIRE IS, UM, FOR OUR HOME OWNERSHIP UNITS, WE DO REQUIRE THEM TO BE OWNER OCCUPIED.
UM, SO I, I THINK FOR EVEN THAT, UM, A DU WE MIGHT WRITE IN AS A REQUIREMENT TO MAKE SURE THAT IT'S OWNER OCCUPIED.
UM, THAT WOULD BE LIKE SOMETHING OF A NEGOTIATING, UM, POINT, UH, THAT WE, IF IF YOU HAVE TWO UNITS ON THE SAME LOT, THE THREE BEDROOM, THE TWO BEDROOM, HOW THE, HOW CAN THE OWNER OCCUPY BOTH OF THEM SO THAT THAT IS SOMETHING THAT WE COULD WRITE INTO AN AGREEMENT.
SO, UM, IN ANY, ANYTHING, UM, THAT IS SOMETHING THAT WE COULD WRITE.
AND SO, UM, THAT IS, UM, WE COULD HAVE THAT WRITTEN IN.
UM, AND I AM, THESE ARE, THESE ARE THINGS THAT WE WOULD WORK OUT.
UM, I WANTED TO, UM, LET YOU KNOW THAT WE DON'T HAVE ALL OF THESE DETAILS WORKED OUT RIGHT NOW.
AND, UM, I WILL JUST HAND IT BACK TO YOU.
I, I ACTUALLY LOST MY TRAIN OF THOUGHT.
WELL, IT'S PART OF THE NEGOTIATING PROCESS THOUGH.
SOME OF THOSE DETAILS THOUGH, RIGHT? IN THE ENA IN THE E, CORRECT.
BUT YOU KNOW, TYPICALLY, UM, ANYTIME WE, WE FUND A HOME OWNERSHIP DEVELOPMENT, WE REQUIRE, UM, IT TO BE OWNER OCCUPIED.
WE DON'T ALLOW A UNIT TO BE RENTED OUT.
UM, IT HAS TO BE OCCUPIED BY A FAMILY.
UM, AND THAT IS A PURPOSE OF HAVING, UM, THIS PROGRAM.
I UNDERSTAND, I'M JUST SAYING ON THAT ONE PROJECT, YOU DO HAVE A THREE BEDROOM HOUSE.
AND YOU'VE GOT A TWO BEDROOM, A EDU MM-HMM
SO THAT ONE OWNER CAN'T, IS NOT GONNA OCCUPY BOTH OF THOSE.
SO, UH, THEY MAY HAVE LIKE THEIR IN-LAWS LIVING RIGHT IN THERE.
THERE, THERE IS A LAW THIS YEAR THAT ELIMINATED THE A DU OWNER REQUIREMENTS.
I THINK THAT'S WHAT EVERYBODY'S TALKING ABOUT, RIGHT? YEAH.
IN OTHER WORDS THAT AS IT RELATES TO AN A DU PARCEL, RIGHT? THAT PARTICULAR PARCEL IS NOT REQUIRED TO BE OWNER, UM, OCCUPIED.
SO THAT CONVER, IF THERE'S MORE, GO AHEAD,
UM, COUNCIL MEMBERS, UM, IF I COULD OFFER, THERE'S AT LEAST A COUPLE OF DIFFERENT WAYS THIS COULD BE MANAGED, SOME OF WHICH YOU'VE ALREADY KIND OF, UM, HINTED AT OR, OR, OR STARTED TO PREVIEW.
UH, ONE WE WOULD LOVE TO WORK WITH, WITH THE CITY OF NATIONAL CITY ON SOME SORT OF, UM, MECHANISM BY WHICH THAT UNIT COULD BE SOLD TO A SECOND FAMILY.
THAT'S A POWER THAT THE CITY COUNCIL HAS TO EFFECTUATE THAT LEGISLATION.
IT COULD BE SUBJECT TO A, A AFFORDABILITY COVENANTS OR RESTRICTIONS UNDER THIS PROGRAM.
IT COULD ALSO BE TREATED AS A LARGER INTERGENERATIONAL HOME.
IF THERE IS THE CONCERN THAT WE WANT TO HAVE, IT'D BE WHOLLY OWNER OCCUPIED.
IT'S NOT UNCOMMON FOR US TO GET APPLICANTS FROM FAMILIES THAT CAN CONTAIN, UM, UH, SEVERAL GENERATIONS, UM, WITHIN THEM.
THE OTHER, UH, THIRD, UM, OPPORTUNITY I THINK WOULD BE AS COUNCIL MEMBER SKINNER SUGGESTED, UM, AN EXEMPTION.
I CAN BE A COUNCIL MEMBER TOO.
UH, THAT, UM, THAT WE COULD HAVE, UM, A RENTAL THAT IS ACCRUING INCOME TO THE LOW INCOME FAMILY THAT OWNS THE SORT OF A LEAD PROPERTY.
SO THERE'S SEVERAL WAYS THAT WE COULD WORK IT OUT.
AND THE, AND THOSE ARE ALL THINGS THAT WE'VE BOTH ENTERTAINED AND UNDERSTOOD AND HAVE MODELS FOR.
I'M GONNA START LOOKING TO OTHER COUNCIL MEMBERS THAT WANNA BRING UP STUFF AND I'LL KIND OF SAVE SOME OF MY QUESTIONS AGAIN.
UH, YEAH, SO JUST A, A A COUPLE OF GENERAL, UH, QUESTIONS ON THE, UH, TO THE CITY ATTORNEY.
[01:05:01]
WHAT POINT, UH, JUST TO BE CLEAR ON OUR PROCESS IN THIS, AT WHAT POINT, UM, IN THIS PROCESS CAN WE COUNSEL PROVIDE, UM, INPUT ON, UM, MORE THE DESIGN OR PROGRAMMATIC USE? SO FOR EXAMPLE, ON THE PURPLE COW SITE, SO I KNOW, I KNOW KNOW THIS IS LIKE MORE A HIGH LEVEL AT THIS POINT, AND WE'RE TALKING MORE ABOUT THE UNITS AND THE HOME OWNERSHIP, BUT ALSO, UM, I MEAN THIS IS CITY LANDS.SO, AND SOME OF THESE SITES HAVE HISTORICAL AND CULTURAL VALUE.
SO THE PURPLE COW SITE, I MEAN, I THINK THERE SHOULD BE PAID SOME HOMAGE TO THE PURPLE COW IN SOME WAY INCORPORATED INTO THE DESIGN, WHETHER THAT'S A PLAQUE OR, I DON'T KNOW, PURPLE SPOTS AND PAINT, I DON'T KNOW.
OR, UM, THE LAMBS THEATER SITE, IF THAT, UM, I I COULDN'T TELL IF THAT WAS EVEN, UM, INCORPORATED LIKE THE, THE LAMBS THEATER, IF THERE'S A THEATER COMPONENT OF THAT.
BUT, SO AT WHAT POINT CAN WE, UH, GIVE INPUT ON THAT OR EVEN PROGRAMMATIC, UH, DEEPER LEVEL, LIKE WORKFORCE HOUSING OR SOME OF THESE CREATIVE IDEAS THAT MR. UH, REED, UH, MENTIONED? UH, YEAH.
SO IS THAT THIS OR IS THAT DNA PROCESS? SO THERE'S A, A COUPLE OF POINTS.
UM, NOW IS A TIME TO ADDRESS ANY SORT OF DESIRES THAT YOU HAVE, FOR EXAMPLE, WHAT YOU JUST MENTIONED.
UH, LET'S START WITH THE DESIGN ELEMENTS.
IF I WANT TO PAY HIS, UM, HOMAGE OR, UH, CREDIT TO, UM, A HISTORICAL DESIGN, THAT CAN BE SOMETHING TO BE TAKEN CARE OF.
NOT NECESSARILY THE DETAIL OF PURPLE PAINT, BUT WE WOULD LIKE TO SEE THAT THE HISTORICAL NATURE OF THE PURPLE COW SITE IS SOMEHOW WRAPPED INTO THE DESIGN ELEMENTS.
THAT'S SOMETHING THAT WOULD BE DISCUSSED NOW SO THAT ALL THE DEVELOPERS WHO ARE HERE UNDERSTAND SOME OF WHAT THE CITY COUNCIL'S CONCERNS ARE.
SECOND, WHEN WE'RE GOING INTO, IF THE COUNCIL GIVES DIRECTION TO MOVE INTO THAT ENA PHASE, THAT'S WHEN MORE CONCRETE WORK WILL BE DONE.
BUT GENERALLY THAT'S GONNA BE DONE BY CITY STAFF AND THEIR TEAM.
SO IF, IF THE COUNCIL HAS SOMETHING THAT THEY WANT TO ADDRESS OR IDENTIFY FOR STAFF TO WORK ON WITH THE E A'S NOW WOULD BE THE TIME TO AT LEAST START ADDRESSING IT BEFORE WE MOVE ANY FURTHER.
UM, BECAUSE THE DEVELOPERS WANT TO KNOW WHAT THE EXPECTATIONS ARE AS WELL UNDER UNDERSTOOD.
SO YEAH, AND THE, UM, THAT SPECIFIC DESIGN ON THE PAINT, I MEAN, THAT WAS JUST AN EXAMPLE, BUT JUST TO GIVE AN IDEA TO THE DEVELOPER, UH, TEAMS THAT WE ARE POTENTIALLY, UH, AWARDING JUST SOME OF THE IDEAS AND CONCEPTS ON WHAT, YOU KNOW, UM, BECAUSE I THINK THESE ARE ALSO OPPORTUNITY SITES, UM, AND THE, I THINK SOME OF THOSE ARE CONCESSIONS DEPENDING ON, YOU KNOW, THE, THE COST AND THAT WOULD BE MORE THE ENA PROCESS.
BUT I DO THINK THE, UM, UH, I MEAN FOR ME, THE HOME OWNERSHIP IS THE MOST IMPORTANT PART OF, OF THIS.
UM, AND, UM, AND THE AFFORDABILITY, UH, BUT ALSO WHERE, WHERE POSSIBLE, UM, HONORING OUR, OUR RICH DIVERSITY, OUR, OUR CULTURE AND OUR HISTORY OF THE SITES, UM, AND DOING CREATIVE THINGS, UH, WITH THE DESIGN AND WITH ART, I THINK IS, UM, IS IMPORTANT.
SO I, SO I, I APPRECIATE THAT.
THE, UM, MY, UM, SECOND QUESTION OR COMMENT, IT COULD, UM, IF STAFF COULD TELL ME ABOUT SOME OF THE, UM, THE OUTREACH WE'VE DONE IN THAT PROCESS, BECAUSE TO BE HONEST, I'M A LITTLE DISAPPOINTED THAT AS MUCH AS I LOVE THESE DEVELOPER TEAMS, I WAS REALLY HOPING FOR, UM, FOR, FOR MORE.
AND I WAS, I'M KIND OF SURPRISED THAT THERE ISN'T MORE INTEREST.
UM, AND SO COULD STAFF, UH, TALK ABOUT WHAT KIND OF THAT OUTREACH, UH, UH, PRO OUR OUTREACH FOR THIS RFP IF THERE WAS ENOUGH, YOU KNOW, UH, DENT TO OUTREACH AND KIND OF WHY, YOU KNOW, IT SEEMS KINDA SMALL AS MUCH AS CRAZY AS YOU GUYS ARE.
HI, UH, DAVID ACKRAN, COMMUNITY DEVELOPMENT SPECIALIST WITH NATIONAL CITY.
UH, SO THE RFP WAS HOSTED THROUGH PLANET BIDS, WHICH IS THE CITY'S PLATFORM FOR BIDDING AND OUTREACH.
UM, IT'S OPEN TO WHERE THE PUBLIC CAN VIEW AND CURRENT AND PAST BID OPPORTUNITIES.
UM, SO THROUGH PLANET BIDS NOTIFICATION WAS SENT TO 705 POTENTIAL DEVELOPERS THAT HAD AN EXISTING PLANET BIDS ACCOUNT.
UM, AND THEN ANY PROSPECTIVE DEVELOPMENT TEAM COULD MAKE AN ACCOUNT TO SUBMIT A PROPOSAL THROUGH THE PLATFORM.
UM, SO ADDITIONALLY, ABOUT A YEAR AGO, WE HELD A, A PUBLIC WORKSHOP WHERE IT WAS, UH, NOTIFIED THAT WE WOULD BE OPENING THE, UH, RFP THE FOLLOWING DAY.
UM, AND IN ADDITION TO THAT, IT WAS POSTED ON THE CITY WEBSITE, SOCIAL MEDIA, AND THEN VIA EMAIL TO, UH, ENTITIES ON THE DEVELOPMENT INTEREST LIST, WHICH IS ABOUT 60 ORGANIZATIONS.
SO IT SOUNDS LIKE THEN THERE WAS, YOU SAID 705, SO IT SOUNDS LIKE THERE WAS A, A LOT, UM, THAT YOU ALL REACHED OUT TO THEN.
SO WAS THERE ANY FEEDBACK ON LIKE, WHY, LIKE, IF, IF THERE FROM ANY DEVELOPERS WHO WEREN'T INTERESTED, UM, OR, AND, AND WHY THEY, THEY DIDN'T OR WHAT THE, WHETHER IT'S THE ECONOMY OR ANY OTHER ISSUES? I THINK IN GENERAL IT'S VERY, FOR SALE, AFFORDABLE HOUSING IS A VERY DIFFICULT KIND OF PRODUCT TO DEVELOP.
[01:10:01]
OF DEVELOPERS WILLING TO UNDERTAKE THAT TYPE OF DEVELOPMENT.UM, AND SO THAT'S PROBABLY THE MAIN REASON WHY, YOU KNOW, THERE'S A KIND OF A SPECIALIZED SKILL TO, YOU KNOW, ATTRACT POTENTIAL HOME BUYERS, KIND OF THE STEWARDSHIP PROCESS TO GET THEM, YOU KNOW, PREPARED FOR HOME OWNERSHIP.
AND THEN, UH, SO THAT'S PROBABLY THE MAIN REASON WHY THE LACK OF RESPONSE AND OUTTA CURIOSITY, THEY, THEY TOLD YOU THAT OR YOU? UM, I KIND JUST LOOK, IT'S KIND OF ON OUR OWN EXPERIENCE.
AND SO, UM, AND YOU, AND THAT IS, UM, KAISER MARSON ASSOCIATES WHO WORKS WITH, UH, THEY WORK WITH, UH, CITIES AND DEVELOPERS ACROSS THE COUNTY.
SO AGAIN, ANGEL DE PALMA, COMMUNITY DEVELOPMENT MANAGER, NATIONAL CITY HOUSING AUTHORITY.
I SPOKE WITH, UM, WAKELAND HOUSING, UH, DEVELOPMENT CORPORATION AND BRIDGE HOUSING DEVELOPERS.
UM, BOTH OF WHO, UH, INDICATED TO ME THAT THEY DID NOT SUBMIT A, A RESPONSE TO OUR PROPOSAL BECAUSE OF THE HOME OWNERSHIP, UH, COMPONENT.
UM, AND THE DIFFICULTY, UM, WITH THAT.
SO, UM, THERE TWO, UM, LARGE, LARGER DEVELOPERS, BUT, UH, THEY TOO, UH, WERE NOT ABLE TO RESPOND TO OUR RFP FOR THE REASON THAT, UH, LENNY INDICATED.
HONESTLY, I WAS JUST MAKING SURE THAT IT WASN'T BECAUSE OF OUR LACK OF, UH, OUTREACH OR ANYTHING.
SO, UM, BUT, AND SO YOU DID EXTENSIVE OUTREACH, SO I APPRECIATE STAFF'S WORK ON THAT.
SO THAT'S MY BROAD QUESTIONS FOR NOW.
UM, FIRST, UH, ALONG THE LINES OF WHAT, UH, MEMBER BUSH WAS ASKING RELATED TO, UM, THE RFP PROCESS AND THE OUTREACH, UM, MY QUESTION PERTAINS TO OUR PROGRAM HERE, WHICH IS OWN NATIONAL CITY, AND IT HAS TO DO WITH, UH, THE INITIAL, UM, YOU KNOW, OWN NATIONAL CITY AS A PROGRAM ALTOGETHER IS GOING OUT, UM, LOOKING FOR BIDS ON THE SIX PROPERTIES.
AND MY QUESTION HAS TO DO WITH, DOES IT HAVE TO BE TRYING TO DEVELOP OR TRYING TO GET ATTENTION ON THE SIX PROPERTIES? UM, DO WE NEED TO DO IT ALL SIX AT ONCE? UM, YOU KNOW, THANKFULLY, UM, WE HAVE A VERY EXCITED DEVELOPER THAT BID ON, UH, MOST OF THEM
AND I WONDER, YOU KNOW, IS IT FEASIBLE FOR, YOU KNOW, TO GO OUT AND AND OFFER ALL SIX ALL AT ONCE? OR SHOULD WE MAYBE SLOW DOWN A LITTLE BIT? AND, AND WHY ALL SIX? I MEAN, WHAT'S THE RATIONALE THERE? SO WE ARE ACTUALLY GOING BACK TO OUR TIMELINE, SLIDE IT.
UM, SO AFTER WE AMENDED, UH, CITY COUNCIL POLICY 9 0 1, WE, UM, IT WAS, UH, INDICATED, UM, THERE WAS THIS, UH, DRIVE TO GO OUT TO RFP ON ALL, UM, AND STUDY THE FEASIBILITY OF, UM, HOME OWNERSHIP DEVELOPMENT ON ALL CITY OWNED PROPERTIES.
UM, IT WAS INDICATED THAT WE WANTED TO DEVELOP ALL OF OUR PROPERTIES.
AND, UM, SO THAT IS IN FACT WHAT, UM, STAFF DID WE, UM, SOUGHT FUNDING.
AND WE HAVE, UH, COME BACK TO COUNCIL, UM, OVER THE PAST THREE YEARS WITH THAT IN MIND.
UM, BUT IT IS, UH, IT IS UP TO THE COUNCIL AND HOW YOU WANNA PROCEED IF YOU, IF YOU WANT TO, UM, TAKE OUR RECOMMENDATIONS FOR THE DEVELOPMENT OF ALL SIX OF THESE PROPERTIES.
UM, AND, UM, BUT WE HAVE, UH, YOU KNOW, OVER THE PAST THREE YEARS WORKED TOWARD THAT EFFORT AND IT DID START BACK WITH THE AMENDMENT TO THE CITY COUNCIL, UH, POLICY 9 0 1.
AND THAT'S ABSOLUTELY FAIR, UH, MR. READER.
OH, I WAS ALSO GONNA SAY, OBVIOUSLY THESE, THESE EFFORTS COST MONEY AND OBVIOUSLY TAKE TIME.
SO THE LONGER WE SPEND AND, YOU KNOW, WE HAVE OTHER THINGS THAT WE CAN BE USING THOSE FUNDS FOR.
UM, YEAH, I THINK THAT'S ALL I WAS GONNA SAY.
SO I, PERHAPS MAYBE THERE WAS, UM, UH, EFFICIENCY IN, IS THAT MAYBE WHAT I'M HEARING IS THERE WAS EFFICIENCY IN BIDDING OUT ALL SIX SITES ALL AT ONCE.
UM, SO THERE IS A EFFICIENCY IN, IN GOING OUT WITH THEM ALL AT ONE TIME, BUT IT, YOU KNOW, IT HAS TAKEN LONGER, UH, IN ADDITION TO ALSO BEING, YOU KNOW, UNDERSTAFFED AND JUST
[01:15:01]
KIND OF NOT HAVING THAT CAPACITY TO, UM, MAKE THIS HAPPEN.AND, UM, YOU KNOW, IT, IT HAS TAKEN SOME TIME, BUT WE HAVE DONE A LOT, YOU CAN SEE BY OUR TIMELINE THAT, YOU KNOW, WE, IN THIS AMOUNT OF TIME WE HAVE GONE AND, YOU KNOW, SOUGHT OUT FUNDING.
UM, WE'VE HAD, WE'VE DONE SOME ENVIRONMENTAL REVIEW OR SOME ENVIRONMENTAL, UM, UH, ANALYSIS AND, UM, WE'VE ADDRESSED SOME ISSUES ON OUR PROPERTIES.
WE'VE, UH, STUDIED, UH, DONE SOME THE STUDY, THE FINANCIAL FEASIBILITY, WHICH IS REQUIRED FOR THE DEVELOPMENT IN OUR, ON OUR PROPERTIES.
UH, WE'VE COME BACK WITH POLICY AMENDMENTS.
UH, SO THERE'S EFFICIENCY IN GOING OUT ON ALL OF OUR PROPERTIES AT ONE TIME.
BUT IT DOES TAKE, IT DID TAKE A WHILE TO DO THAT.
UM, TYPICALLY, UH, WE, YOU KNOW, WE WOULD'VE GONE OUT, UH, WITH ONE, YOU KNOW, ONE SITE, UM, AND IT COULD HAVE TAKEN MAYBE, UH, A YEAR TO DO THAT.
UM, BUT WE, UH, WENT OUT SIX AND KIND OF DID ALL OF THIS, UM, WITH JUST OUR SMALL TEAM.
BUT, UM, SO IT, BUT IT IS, UM, IT IS UP TO THE COUNCIL AND HOW YOU WANT TO MOVE FORWARD.
WE HAVE THESE RECOMMENDATIONS, UH, FOR YOU.
AND WITH THAT, THOUGH, WE ARE SEEKING DIRECTION TO MOVE FORWARD, UH, ON EACH SITE.
SO WE'RE ASKING, UM, IF YOU WANNA MOVE THROUGH EACH SITE AND ASK SPECIFIC SITE BY SITE QUESTIONS.
AND, UM, IF WE COULD GET YOU TO, UM, THEN, UH, MAYBE VOTE, UH, TO MOVE FORWARD WITH A DEVELOPMENT TEAM THAT WOULD BE HELPFUL FOR US, UH, TO MOVE ON TO THE NEXT STEP WOULD BE, WHICH WOULD BE TO NEGOTIATE A ENA, UM, EXCLUSIVE NEGOTIATING AGREEMENT WITH THE DEVELOPER, UH, SO WE CAN, UH, FULFILL YOUR GOAL, WHICH IS TO, UM, HAVE OUR NATIONAL CITY RESIDENTS, UH, TO GIVE THEM THE OPPORTUNITY TO BECOME HOMEOWNERS AND TO PROVIDE MORE HOUSING FOR OUR RESIDENTS, WHICH IS NEEDED.
NO, I COMPLETELY, UM, UH, YOU KNOW, I'M VERY HAPPY WITH ALL OF THE ACCOMPLISHMENTS THAT OUR SMALL BUT MIGHTY TEAM HAVE DONE.
YOU KNOW, YOU'RE ABSOLUTELY RIGHT.
WE GAVE YOU A BIG PROJECT HERE, OWN NATIONAL CITY, AND WHAT YOU HAVE ACCOMPLISHED IN THE LAST THREE YEARS IS EXACTLY WHAT WE HAVE, UH, AT HAND RIGHT NOW.
SO I, I'M NOT DIMINISHING ANYTHING THAT HAS OCCURRED IN THE LAST THREE YEARS.
WHAT I'M, UM, TAKING A STEP BACK ON AND ANALYZING RIGHT NOW IS, UM, YOU KNOW, WE HAVE WHAT WE HAVE RIGHT NOW ON THE SIX SITES.
IS IT NECESSARY TO CONTINUE, UM, WORKING ON SIX SITES? RIGHT.
YOU KNOW, IS IT POSSIBLE THAT RIGHT NOW WE TAKE A MOMENT AND, YOU KNOW, MAYBE MOVE SOME OF THE SITES FORWARD AND TAKE A STEP BACK AND MAYBE STOP AND ANALYZE MAYBE SOME OF THE SITES? RIGHT? THAT'S ALL I'M SAYING IS, UM, IS IT NECESSARY TO, TO, OH, I UNDERSTAND, WORK ON ALL SIX SITES? UM, I WOULD SAY THERE'S BEEN A LOT OF ANALYSIS DONE, AND THAT'S WHAT, UM, THAT OWN NATIONAL CITY STUDY WAS, WAS A FULL IN-DEPTH ANALYSIS OF THE ENTIRE PROCESS.
AND, UM, SO I WOULD SAY THAT WE ARE AS GOOD TO GO AS WE WILL EVER BE FOR THESE SITES.
AND, UM, JUST, UH, THE AMOUNT OF OUTREACH, UH, THAT WE'VE DONE, IF HOME OWNERSHIP AND HOUSING IS WHAT YOU'RE SEEKING FOR THESE SITES, THEN THIS, THIS IS, THIS IS IT RIGHT NOW.
UH, MY SECOND QUESTION, UH, BROAD QUESTION HAS TO DO WITH, UM, I'M LOOKING AT, OH, GOD, SORRY, I HAD IT, UM, EXHIBIT C IN OUR PRESENTATION, WHICH IS THE RFP PROPOSAL EVALUATION.
UM, AND ON WHAT I'M LOOKING AT IS PAGE SEVEN OF 83.
AND, UM, IT IS THE SORT OF THE BIG CHART THAT IS COMPARING ALL OF THE RECEIVED, UM, PROPOSALS.
AND THE REASON I'M LOOKING AT THIS IS 'CAUSE IT IS COMPARING EVERYTHING I'M INTERESTED IN THE LINE E, WHICH IS PREVAILING WAGES.
AND, UM, IT, YOU KNOW, SOME OF THESE SAY YES, AND SOME OF THEM SAY NO.
AND MY BROAD QUESTION IS, WHAT DOES THAT MEAN? WHY DO SOME OF THESE PROJECTS SAY YES FOR PREVAILING WAGE? AND SOME OF THEM SAY NO FOR PREVAILING WAGE, ARE, YOU CAN RESPOND.
SO THE PREVAILING WAGE LINE, UH, IS IN INDICATING WHETHER OR NOT THE DEVELOPMENT COST
[01:20:01]
ESTIMATES THAT WERE SUBMITTED IN THE PROFORMA WERE INCLUSIVE OR NOT INCLUSIVE OF ASSUMING PREVAILING WAGES.UM, AS PART OF THE DEVELOPMENT COSTS, UH, THE PAYMENT IS USUALLY TRIGGERED BY THE, THE TYPE OF FUNDING SOURCES THAT ARE, UM, PART OF THE DEVELOPMENT.
AND SO WHAT YOU'LL, YOU'LL TYPICALLY SEE IS THE, THE, THE RENTAL PROJECTS, WHICH WILL LIKELY BE, UM, HAVE TAX CREDITS AS WELL AS, UH, STATE AND FEDERAL FUNDING HAVE A TRIGGERING OF PREVAILING WAGES.
THE RENTAL, THE, THE PROJECTS THAT INCLUDE RENTAL UNITS HAVE A TRIGGER BASED ON THE FUNDING SOURCES.
HAVE A TRIGGER THAT REQUIRE PREVAILING WAGE.
AND THEN, SO THEN CONVERSELY, THE PROJECTS THAT DON'T HAVE RENTAL UNITS WOULD NOT HAVE FUNDING SOURCES THAT WOULD POTENTIALLY TRIGGER THE PAYMENT OF PREVAILING WAGES DURING THE DEVELOPMENT OF THE PROJECT.
AND SO THAT, THAT PREVAILING WAGE ASPECT WOULD ADD ABOUT MAYBE 15, 20% TO THE DEVELOPMENT COSTS BECAUSE OF THE, THE, THE COST OF HAVING TO PAY PREVAILING WAGES.
AND SO THE DEVELOPER IS NOT DOING PREVAILING WAGE BECAUSE OF THAT.
IT'S NOT PROHIBITIVE THAT THEY DON'T HAVE TO PAY IT BECAUSE THE FUNDING SOURCES PROPOSED FOR THAT PARTICULAR PROPOSAL DOES NOT TRIGGER, UH, THE NEED TO PAY PREVAILING WAGES.
SO THAT'S WHAT I MEAN IS, I'M TRYING TO UNDERSTAND WHAT THAT LINE INDICATES IS, IS THE DEVELOPER CHOOSING NOT TO PAY PREVAILING WAGE? UM, THEY DON'T HAVE TO PAY PREVAILING WAGES.
THEY DON'T HAVE, THEY DON'T HAVE TO.
SO IF THEY HAVE A FUNDING SOURCE THAT REQUIRES THAT THEY PAY PREVAILING WAGES, THEN THEY WOULD BE PAYING THEM.
IF THEY HAVE A FUNDING SOURCE THAT DOES NOT TRIGGER THE REQUIREMENT OF PREVAILING WAGE REQUIREMENT, THEN TYPICALLY DEVELOPER WOULD NOT PUT THAT IN THE DEVELOPMENT COST BUDGET BECAUSE IT ADDS A COST TO THE PROJECT.
SO DOWN THE LINE, I GUESS WHEN WE GO PROJECT BY PROJECT, THAT WILL BE MY QUESTION IS, IS THERE ROOM TO CONSIDER SOMETHING LIKE A PLA OR CONSIDER PAY PAYING PREVAILING WAGE? YEAH, ABSOLUTELY.
I MEAN, I THINK THAT'S A QUESTION FOR EACH OF THE DEVELOPERS AS YOU GO THROUGH THE ENA PROCESS.
BUT YES, AND WOULD JUST BE COGNIZANT THAT THAT WOULD ADD A COST TO THE DEVELOPMENT COST BUDGET, AND THEY WOULD REQUIRE EITHER ADDITIONAL DONATIONS OR SOMETHING TO, IN ORDER TO, YOU KNOW, ACCOMMODATE THE PAYMENT OF PREVAILING WAGES.
JUST, UH, PIGGYBACKING ON MY, UM, COLLEAGUES', UH, COMMENT ABOUT, UM, THOSE, UM, GENERAL QUESTIONS, UM, I THINK, UM, WE WOULD BE MORE EFFECTIVE AS A, UH, UM, AS A PEOPLE HERE IN THE DIOCESE TO BIFURCATE EACH PROJECT IN ORDER FOR US TO BE ABLE TO UNDERSTAND EACH PROJECT, MOST ESPECIALLY THOSE SITES THAT HAVE TWO PROPOSALS.
UM, I THINK WE CAN, UM, DISCUSS THOSE AND, UM, UH, WITH REGARDS TO, UM, INSURANCE PURPOSES WITH REGARDS TO PREVAILING WAGES, IF THESE ARE, UM, UH, IF THESE ARE PROJECTS WITH, UM, THAT ARE FEDERALLY FUNDED, WE, IT HAS TO BE PREVAILING WAGES.
UM, SO THAT, THAT'S, THAT'S ONE OF THE, UH, OF THE REQUIREMENT.
BUT, SO I WILL REQUEST, UM, THROUGH THE, THROUGH THE CHAIR TO, UM, TAKE UP THOSE SITES THAT HAVE TWO PROPOSALS, UM, FOR RIGHT NOW.
SO WE CAN, WE CAN REALLY ASK THOSE QUESTIONS SPECIFIC TO THOSE SITES.
UM, SO THEN WE CAN MOVE FORWARD OR NOT.
I THINK, UH, THAT WOULD BE MY REQUEST.
WELL, IF I COULD, I, I THINK EACH PROPOSAL HAS QUESTIONS WHETHER THERE'S ONLY ONE, ONE PROVIDER OR NOT.
SO, SO I, WE, WE CAN JUST GO, I UNDERSTAND MAYOR, BUT MY, MY COLLEAGUE, MY COLLEAGUE, UH, COUNCIL MEMBER MOLINA SAID, YOU KNOW, I MEAN, HOW COME THERE ARE SITES THAT ONLY HAVE ONE PROPOSAL MM-HMM
UM, IS IT, IS IT POSSIBLE THAT, YOU KNOW, I MEAN, WHY? AND THEY ANSWERED, YOU KNOW, I MEAN THEY DID ALL THESE PROCESSES, UM, MAYBE FROM, FROM FOLLOWING HER, HER, UM, UM, THOUGHT OF, OF, UM, YOU MEAN, UM, DISCUSSION.
UM, SHE ASKED IF THERE'S A ROOM TO GO BACK MM-HMM
AND SEE IF THERE ARE MORE PROPOSITIONS THAT WILL COME.
SO MY THING, MY, MY, FOR US TO MOVE FORWARD, UM, WITH, WITH THIS ALL THIS, THIS PROJECTS OR THIS, UM, EFFORTS THAT HAS ALREADY BEEN PUT IN, IN THIS, UM, IN THIS RFPS, THERE ARE TWO SIDES HERE THAT, UM, MAYBE WE CAN, WE CAN DISCUSS FIRST AND THEN MAYBE GO BACK TO THOSE OTHER
[01:25:01]
ONES AND MAYBE CONSIDER IF WE'RE GOING BACK AND ASK FOR MORE PROPOSITIONS.SO I WOULD LIKE TO REQUEST TO BIFURCATE.
UM, SO, UH, UH, COUNCIL MEMBER, IF I MAY, SO I, SO I THINK SOME OF THIS, UH, DISCUSSION, SO I THINK, UH, COUNCIL MEMBER MOLINA'S QUESTION IS, WAS ABOUT, YOU KNOW, THE, THE PHASING, OR CAN WE, DO WE HAVE TO DO IT ALL AT ONCE AND STAFF, UM, YOU KNOW, MADE IT CLEAR THAT, YOU KNOW, FOR, FOR THEM THEY'RE, THEY'RE COMFORTABLE WITH WHAT, WHAT THEY HAVE, AT LEAST WHAT THEY'VE PROPOSED FOR BASELINE TO ME.
AND IF OUR CITY ATTORNEY CAN, UH, WEIGH ON THIS, I THINK IT'S CLEAR THAT WE CAN MOVE FORWARD WITH, WE CAN REQUIRE FURTHER STUDY OF SOME OF THESE SITES WITH MORE QUESTIONS OR ASK, UH, SOME OF THEM TO BE BROUGHT BACK AND WE CAN MOVE FORWARD WITH SOME OTHERS, RIGHT? WE DON'T HAVE TO APPROVE THEM ALL IS, IT'S NOT ALL OR NOTHING.
YOU, YOU DO NOT HAVE TO APPROVE THEM ALL.
AND, UM, I, I KNOW SHELLY MAY, UH, WEIGH IN OUR, OUR CLERK HERE AS WELL.
THIS IS SET TODAY AS A WORKSHOP, RIGHT? AND AS A WORKSHOP, IT IS AN INFORMATION GATHERING SESSION.
THAT MEANS THIS IS THE TIME TO ASK ALL OF THESE QUESTIONS, RIGHT? RIGHT.
WE ARE ANTICIPATING, UH, BRINGING BACK ANY POTENTIAL VOTE ON ANY ITEMS NEXT WEEK IF WE'RE GOING TO DO THAT.
SHELLY, DO I HAVE THAT CORRECT? YES.
WE CAN BRING IT BACK NEXT WEEK IF THAT IS THE DIRECTION OF THE COUNCIL, BUT THERE CAN'T BE ANY VOTES TONIGHT BECAUSE IT IS A WORKSHOP ONLY.
SO YEAH, THERE CAN, WE CAN'T,
IF IT NEEDS TO BE MOVED OVER, THEN THAT CAN HAPPEN.
BUT IN OTHER WORDS, AND, AND THE DEAL IS EACH ONE, WE'VE GOT SIX DIFFERENT SITES HERE.
EACH ONE OF 'EM HAS AT LEAST TWO PROPOSALS.
WE HAVE A PROPOSAL IN FRONT OF YOU, AND THE OTHER ONE IS DON'T DO IT
SO MY SUGGESTION IS THAT WE JUST GO, WE TAKE SITE ONE, WE TAKE A LOOK AT WHAT OUR CO YOU KNOW, ANY THINGS WE HAVE AND JUST GO RIGHT DOWN DOWN THE LINE ON 'EM.
AND, AND THAT WAY, THAT WAY WE'RE NOT JUMPING KIND OF BACK AND FORTH ON THEM.
I LIKE THAT AND I APPRECIATE THE CLARIFICATION AND JUST OVERALL, WE HAVE A LOT GOING ON, LIKE BUDGET AND ALL THAT.
SO I ALSO WANT TO BE, UM, UNLESS STAFF, UM, THERE WAS SOME KIND OF A DEADLINE NOTE WITH DEVELOPERS.
I KNOW HE USED TO WORK IN DEVELOPMENT, SO I KNOW THAT THE TIMING IS KEY, BUT I ALSO WANNA MAKE SURE WE GET THIS RIGHT, SO RIGHT.
AND THE IDEA IS TO BRING IT BACK AS CLOSE IN TIME AS WE CAN.
OBVIOUSLY WE KNOW THAT THERE'S A LOT ON THE, ON THE PLATE OF FOR NEXT WEEK'S MEETING, BUT MM-HMM
IF THAT'S GONNA MOVE FORWARD, IT WOULD MOVE FORWARD EITHER THEN, OR WE WOULD SET ANOTHER TIME AT ONE OF THE OTHER JUNE MEETINGS.
OR WE COULD BRING IT BACK IN AUGUST AS WELL.
AND WE DO HAVE COUNCIL MEMBER RODRIGUEZ ON THE LINE AND HE DOES HAVE COMMENT, MAYOR.
IS THAT OKAY? NOW? I, I THINK NOW'S GOOD BEFORE WE GET INTO THE INDIVIDUALS, IF THAT'S WHAT I MUCH HEAR YOU.
UM, THANK YOU SO MUCH FOR CITY STAFF, UM, FOR THE APPLICANTS FOR COMMUNITY AT LARGE THAT SUPPORTED THIS AND WANT TO EXPAND HOME OWNERSHIP.
AND I KNOW THERE MIGHT BE SOME CONFUSION IN, UM, I HEARD IN SOME OF THE PUBLIC COMMENTS, THE, THE, UH, THE INTENT OF THIS PARTICULAR PROGRAM, UH, WAS TO EXPAND HOME OWNERSHIP.
AND I THINK, I THINK WE ALL REALIZED THAT WE HAVE A VERY SMALL HOME OWNERSHIP RATE IN THE CITY AT ONLY AROUND 35%, AND WE MUST BE MORE INVOLVED AND EXPECT HOME OWNERSHIP IN, IN ANY WAY POSSIBLE.
AND SO THIS PROJECT HAS BEEN A THREE YEAR LONG PROJECT.
WE ENDED UP WORKING TOGETHER, UH, A FEW YEARS AGO.
COUNCIL MEMBER YAMANI SPEARHEADED THIS EFFORT ON HAVING A POLICY 9 0 1 IN ORDER TO DEVELOP HOME OWNERSHIP ON PUBLIC LAND.
AND THAT HAD NOT BEEN THE CASE.
UM, YEARS PRIOR, SEEN AS LEFTOVER REDEVELOPMENT LAND WAS SOLD OFF AT VERY, VERY AFFORDABLE PRICES TO BUILD MARKET RATE APARTMENTS.
AND, UM, YOU KNOW, THOSE MARKET RATE APARTMENTS ARE NOW RENTING FOR, UH, UH, $3,000 TWO BEDROOMS ON WHAT USED TO BE PUBLIC LAND SOLD AT UNDER MARKET VALUE.
SO I THINK THAT GOING DOWN THIS PROCESS OF BUILDING THE RIGHT TYPE OF HOUSING FOR OUR CITY IS, IS CRITICAL.
AND SO I COMMEND THE EFFORTS OF EVERYBODY INVOLVED TO GET US TO THIS POINT AT THIS MOMENT.
UM, I AM, UH, UH, DISAPPOINTED IN A FEW THINGS THOUGH, UH, AT THE SAME TIME, UM, UH, I MENTIONED FROM THE BEGINNING THE IMPORTANCE TO BRING IN THE PRIVATE AND, AND PUBLIC PARTNERSHIPS, AND A PART OF THAT WAS MAKING SURE THAT THE REALTORS WERE INCLUDED IN THE CONVERSATION.
SO FINDING A WAY FOR THE PRIVATE MARKET, UH, REALTOR INDUSTRY TO PURCHASE AND SELL THE UNITS IS CRITICAL FOR US TO CREATE A LONGSTANDING
[01:30:01]
PROGRAM IN OUR CITY AND INCENTIVIZE THE PRIVATE MARKET TO GET MORE INVOLVED.SO THAT I STILL FIND CRITICAL, AND IT'S DISAPPOINTING THAT WE DIDN'T GET THOSE OFFERS TO INCLUDE THE PRIVATE INDUSTRY BECAUSE ULTIMATELY WE WANT PUBLIC PARTNERSHIPS AND, BUT WE DESPERATELY NEED MORE PRIVATE PARTNERSHIPS TO MAKE SURE THAT, UH, UH, YOU KNOW, WITH PRIVATE EQUITY, MORE OF THE RIGHT TYPE OF PROJECTS GET BUILT IN THE CITY.
AND ON THE OTHER END, YOU KNOW, WE ARE CONSIDERING HEAVILY SUBSIDIZING HOUSING DEVELOPMENT AND ALONGSIDE THAT, WE MUST INCLUDE, I BELIEVE, A PROJECT LABOR AGREEMENT ASSOCIATED WITH THAT TO MAKE SURE THAT THEY ARE NOT ONLY BUILT CORRECTLY, BUT UM, UH, PAID WITH GOOD UNION WAGES AND BENEFITS TO MAKE SURE THAT, UH, THE EMPLOYEES THAT WORK IN MAKING THESE UNITS HAPPEN, UM, DON'T QUALIFY FOR THE UNITS BECAUSE THESE ARE INTENDED TO BE FOR LOWER INCOME.
AND SO WE NEED TO MAKE SURE THAT AS WE BUILD, UH, EVERYBODY NEEDS TO BENEFIT AND THAT INCLUDES THE WORKFORCE THAT ACTUALLY BUILDS THE UNITS THEMSELVES.
UM, I DO HAVE A QUICK QUESTION, UM, ON THE, ON THE TAXING SYSTEM AND THE WAY IT WOULD WORK.
UM, SO, SO THESE AFFORDABLE UNITS FOR SALE, UM, WHAT WOULD PROPERTY TAXES LOOK LIKE FOR THE CITY ON THE RENT TO OWN MODELS AND, AND ON THE OTHER AND A COMMUNITY HOUSING WORK AND HABITAT MODEL.
SO THOSE, SO WE'LL LET, UM, CHW AND HABITAT, BECAUSE THAT WAS SPECIFICALLY FOR THE DEVELOPER, CORRECT.
AND, AND CASA FAMILIAR, IS THAT CORRECT? COUNCIL MEMBER RODRIGUEZ? YES.
CAN YOU REPEAT THE QUESTION? YEAH.
WHAT DO THE, UM, WHAT DO THE AFFORDABLE UNITS FOR SALE AND RENT TO OWN MEAN IN TERMS OF THE PROPERTY TAXES FOR THE INDIVIDUAL UNITS? SO, UM, IT'S BEEN, UH, SAN DIEGO HABITAT'S PRACTICE FOR MANY YEARS, AND IT'S SINCE BEEN ADOPTED BY THE, AND I'M GONNA GET THEIR NAME WRONG, THE CALIFORNIA ASSOCIATION OF ASSESSORS OR THE SORT OF UMBRELLA GROUP THAT MANAGERS, UH, AND PROVIDES BEST PRACTICES FOR ASSESSORS AROUND THE STATE TO EFFECTIVELY APPLY THE TAXES ON THE FIRST PAYABLE MORTGAGE.
SO IN A TYPICAL CAPITAL STACK, LET'S SAY FOR ONE OF OUR HOMES, THE HOMES MIGHT APPRAISE FOR, I'M JUST GONNA MAKE A NUMBER UP $800,000.
IF THE FIRST MORTGAGE IS $300,000, THAT THEN BECOMES THEIR STARTING PROPERTY TAX BASIS.
THE REASON IS THAT YOU DO NOT WANT TO BURDEN A LOW INCOME FAMILY WITH PAYING A PROPERTY TAX THAT IS BASED ON THE TOTAL VALUE OF THE HOME, WHICH IS GOING TO INCREASE THEIR MONTHLY HOUSING COSTS.
AND ALSO IN SITUATIONS WHERE THERE IS A RESALE RESTRICTION THAT'S TIED TO THEIR INCOME, BURDENS THEM WITH PAYING FOR EQUITY THAT THEY ARE NOT GOING TO BE ABLE TO TAKE ADVANTAGE OF.
SO THE TRADITIONAL APPROACH, AND WE'VE DONE THIS FOR MANY YEARS, UM, HERE IN SAN DIEGO, AND IT'S BEEN, UH, WE'VE BEEN A BEST PRACTICE ACTUALLY FOR MUCH OF THE REST OF THE STATE, IS THAT THE FIRST MORTGAGE IS EFFECTIVELY ANY MORTGAGES THAT HAVE A FIXED REPAYMENT PERIOD ARE THERE FOR THE BASIS FOR THAT TAXABLE VALUE.
UH, CAN I ASK QUICKLY, UM, SURE.
IN THAT FIRST MORTGAGE, IN THE MODEL THAT YOU'RE PROPOSING HERE WOULD BE BEGIN YEAR 15? UH, NO.
SO FOR US, WE WOULD BE DOING A SALE OF THE HOME IMMEDIATELY.
SO I, I THINK YOU MIGHT BE THINKING ABOUT THE CASA F UH, MODEL WHERE THEY'RE DOING A RENT TO OWN, SORRY, I'M PROPOSING THE PROJECT.
WITH THAT THEN, LET'S, LET'S TAKE A LOOK AT, UH, SITE ONE.
WE HAVE THE, UH, ALSO INTERESTED IN THE RENT TO OWN MODEL.
I'M ALSO INTERESTED IN THE TAX, UM, IN THE ANSWER ABOUT THE PROPERTY TAXES FOR THE RENT TO OWN MODEL.
HOW, HOW DOES THAT WORK? OKAY.
CAA THOSE ARE JUST BUILDING EQUITY.
UM, SO IT WOULD BE THE VALUE OF THE HOME AT YEAR 15 BECAUSE THE, FOR THE FIRST 15 YEARS THERE, UH, THE TENANT WOULD BE RENTING.
AND WHAT IS THE PROP, WHAT IS THE PROPERTY TAX BASE FROM YEAR ONE TO YEAR 15 LOOK
[01:35:01]
LIKE? EXEMPT? WE'RE GONNA HAVE SOMEONE COME AND ANSWER LOWER RIGHT.UM, SO, UM, DURING THE, THE FIRST 15 YEARS, AND I'M SORRY, COULD YOU INTRODUCE YOURSELF? OH, SORRY.
BECKY CONSTANTINE, DIRECTOR OF DEVELOPMENT FOR CASA.
UM, DURING THE FIRST 15 YEARS WHEN IT'S A RENTAL, UM, WE APPLY FOR A WELFARE TAX EXEMPTION.
UM, SO THERE'S NO TAXES THAT WILL BE PAID OR NOTHING, OR WE'LL PAY FOR, UM, JUST A MINIMUM AMOUNT OF TAXES AND THEN THE REST GET WAIVED UNTIL WE SELL IT.
COUNCIL MEMBER THAT ANSWER YOUR QUESTION? YES, THANK YOU.
AND I THINK THAT APPLIES BASICALLY ALL OF THE, UH, THE RENTAL SITUATIONS, WHICH ARE ALL, UH, UH, LOW INCOME.
SO THEY WOULD ALL BE EXEMPT FROM TAXES AS, UH, UH, FROM PROPERTY TAX.
SO WE HAVE SITE ONE, WHICH IS THE PURPLE COW SITE.
AND, UH, AND ALL THE ONE THING THAT I THINK ALL THE ONES HAVE IN COMMON IS THAT THEY'RE ALL ASSUMING A LAND CONTRIBUTION FROM THE CITY.
AND SO THAT, THAT'S, UM, A PART ON THAT ONE, UH, QUESTION I GOT ON THIS ONE.
THIS ONE IS ALSO ASKING, UH, FOR RESIDUAL RECEIPTS LOAN FROM THE CITY, UH, FOR 2.9 MILLION AND A 1.5 CASH CONTRIBUTION ON TOP OF THE LAND ITSELF.
WHERE DOES THAT MONEY COME FROM? SO THE, THE PROPOSAL FOR, IT'S FOR THE RENTAL COMPONENT PROJECT, WHICH IS THEIR TRADITIONAL TAX CREDIT PROJECT.
THE DEVELOPER IS ASSUMING THAT THE GROUND LEASE VALUE OF THE VALUE OF THE GROUND LEASE THAT THEY'RE ASKING FOR THAT RENTAL COMPONENT IS, HAS A VALUE OF ABOUT 2.9 MILLION.
AND THAT WOULD BE A LOAN, A RESIDUAL RECEIPTS LOAN FROM THE, FROM THE CITY FOR THAT VALUE.
AND IT WOULD BE REPAID FOR ANY KIND OF RESIDUAL RECEIPTS FROM PROJECT CASH FLOW AFTER DEBT SERVICE FOR THE DURATION OF THE, THE PROJECT.
SO IS THAT AN ACTUAL $2.9 MILLION LOAN? A DOLLAR LOAN? IT IS A RESIDUAL RECEIPTS LOAN.
SO IT IS A NOTE THAT IS CORRECT, BUT IT, IT WOULD ONLY, AND THE CITY WOULD BE REPAID FROM CASH FLOW FROM THAT NOTE.
SO THEY'RE ASKING FOR A $2.9 MILLION LOAN.
IT'S A A, IT'S A, A REPRESENTATIVE OF THE VALUE OF THE GROUND LEASE THAT THEY'RE, THEY'RE REQUESTING.
BUT THEN THEY'RE ASKING, ALSO ASKING JUST FOR A CASH AMOUNT, $1.5 MILLION ON TOP OF THAT? THAT IS CORRECT.
THEY'VE IDENTIFIED EITHER THAT COMING FROM THE CITY OR SOME OTHER THIRD PARTY SOURCE.
SO THAT KIND OF BECOMES THE QUESTION, WHERE DOES THE CITY COME UP WITH THOSE FUNDS? THANK YOU FOR POINTING THAT OUT.
CAN, CAN WE GO DEEPER INTO THE, WHAT THE SHORT TERM, UM, NET BUDGET IMPACT, AT LEAST TO OUR GENERAL OR HOUSING FUND, WHICH MIGHT BE, UH, MORE OF A QUESTION FOR OUR CITY STAFF, BUT I'M, I'M NOT UNDERSTANDING, AND, AND MAYBE MR. UH, DIRECTOR READER CAN ANSWER THIS.
SO THE RESIDUALS, THE RESIDUAL RECEIPTS, WHAT IS THAT IMPACT LIKE FOR FY 27 OR FY 28 FOR, FOR THAT MATTER? SO WHAT'S THE, I I'M NOT UNDERSTANDING WHAT THE IMMEDIATE IMPACT IS ON, ON THE RESIDUAL RECEIPTS LOAN.
THAT WOULD ALMOST CERTAINLY NOT IMPACT BY 2027.
THIS WOULD OCCUR AFTER CONSTRUCTION'S COMPLETE.
AND THEN CASH FLOW IS, UH, OR NET CASH FLOW AFTER, YOU KNOW, MAYBE A DEFERRED DEFERRED DEVELOPER FEE, THEN WE'D BE NEXT IN THE LINE.
SO BASICALLY WE'RE DEFERRING, UM, OUR, OUR REVENUE SO THAT IT WAS THE IMPACT THAT WE WOULD BE DEFERRING OUR, OUR REVENUE.
IS THAT BASICALLY WHAT THE IMPACT OF THAT RESIDUAL RECEIPTS LOAN IS? IS THAT FAIR TO SAY? YEAH, IT WOULD, IT WOULD BE DEFERRED FOR SEVERAL YEARS, YES.
WHICH I'M MORE OPEN TO LOOKING AT RATHER.
SO THE MORE DIFFICULT FOLLOW UP QUESTION I HAVE IS ABOUT THE 1.5 MILLION, UH, CONTRIBUTION.
SO POTENTIALLY WOULD THAT COME FROM, UM, I THOUGHT WE HA WE HAVE OUR HOUSING LOAN FUND, I THOUGHT, OR LIKE WHAT, WHERE POTENTIALLY WOULD THAT COME FROM? OTHER THAN OUR GENERAL FUND? SO WE DO HAVE A LOW AND MODERATE INCOME HOUSING FUND.
UH, WE DO HAVE SOME FUNDS AVAILABLE, BUT I ALSO WANNA OPEN IT UP TO THE DEVELOPER TO ADD ANY COMMENTS.
I'M KEVIN LECHNER, SENIOR VICE PRESIDENT OF HOUSING
[01:40:01]
AND REAL ESTATE DEVELOPMENT AT COMMUNITY HOUSING WORKS.UM, I DID WANT TO CLARIFY ON THE, THE LAND LOAN.
SO THAT WOULD NOT BE CASH COMING FROM THE CITY.
THAT WOULD BE THE APPRAISED VALUE OF THE LAND THAT WOULD BE GROUND LEASED AND THE CITY WOULD RETAIN OWNERSHIP OF THE LAND.
BUT THERE IS A VALUE TO THAT LEASEHOLD AND THAT LEASEHOLD WOULD BE, UM, DETERMINED BY THAT APPRAISAL AND THEN WOULD RECEIVE RESIDUAL RECEIPTS PAYMENTS AS STAFF INDICATED OVER TIME.
SO THAT'S NOT ACTUAL CASH COMING OUT OF ANY POTS OF MONEY THAT THE CITY MAY OR MAY NOT HAVE.
UM, THE 1.5 MILLION THAT WE INCLUDED AS A REQUESTED CASH CONTRIBUTION IS NOT ONLY VERY HELPFUL TO BUILD THE DEVELOPMENT, BUT IT ALSO HELPS COUNT TOWARD LOCAL LEVERAGING FUNDS, WHICH IN OUR VERY BYZANTINE STATE SCORING SYSTEM FOR OTHER SOURCES AND FOR TAX CREDITS, ASSIGNS A VALUE TO THOSE LOCAL LEVERAGED FUNDS THAT THEN CAN OPEN THE DOOR TO GET TO BE MORE COMPETITIVE FOR THE STATE SOURCES.
SO RECOGNIZING THAT IF THE CITY DIDN'T ACTUALLY HAVE THAT MONEY, WE WOULD HAVE TO FIND THAT MONEY SOMEWHERE ELSE.
BUT IF THE CITY HAS THAT MONEY, IT MAKES IT VERY BENEFICIAL FOR THE PROJECT BECAUSE THEN THE PROJECT ENDS UP BEING A HIGHER PRIORITY FOR THE OTHER STATE SOURCES.
BUT, BUT WOULDN'T THAT APPLY TO EACH AND EVERY ONE OF THESE PROJECTS? 'CAUSE JUST ABOUT EVERY PROJECT SAYS THAT THERE'S SOME KIND OF DEFICIT AND THEY WOULD BE GETTING IT FROM, AND I THINK THEY USED THE TERM, UH, PARTNERS OR DONOR, UH, CONTRIBUTIONS IT SOUNDS LIKE AS IF WE'RE A PARTNER HERE.
FOR ANY, FOR ANY PROJECT THAT'S GOING AFTER COMPETITIVE STATE SOURCES OR TAX CREDITS, THEY'RE GONNA NEED SOME KIND OF LOCAL LEVERAGING.
WHICH I THINK APPLIES TO EVERY ONE OF THESE PROJECTS.
HOW DO WE HAVE AN ESTIMATE OF HOW MUCH IS IN THAT HOUSING? UM, THE, THE OR THE HOUSING FUND.
WHAT WAS THE NAME OF THE HOUSING FUND? I'M BLANKING UP.
SO I FIRST WANNA OPEN THIS UP TO LENNY 'CAUSE I THINK SHE DID HAVE SOME COMMENTS.
DO DO YOU HAVE SOMETHING WITH RELATION TO THE 1.5 MILLION? YEAH, SO THAT WOULD BE, UM, THE, THE, UM, SCORING FOR TAX CREDITS RELATES TO THE RENTAL PROJECTS AND THE OTHER KIND OF SUBSIDIES AND CONTRIBUTIONS THAT WERE DISCUSS WERE MORE RELATED TO THE FOR SALE.
UM, AND THAT WOULD BE FROM THE, THE HABITAT'S PROPOSAL WOULD THOSE FUNDS WOULD BECOME FROM DONATIONS OR OTHER CONTRIBUTIONS.
THEY'RE NOT AS TIED TO THE LEVERAGING POINTS THAT IS REQUIRED OF A TAX CREDIT, UM, PROJECT, IF THAT MAKES SENSE.
SO, SO WHAT, WHAT CHW WAS MENTIONING IS THEIR, THE 1.5 MILLION IN THEIR PROFORMA WOULD PROVIDE THEM WITH SOME LEVERAGING POINTS MM-HMM
FOR THEM TO BE, HAVE A MORE ADVANTAGEOUS, UH, PROPOSAL WHEN THEY APPLY FOR LOW INCOME HOUSING TAX CREDITS.
THE FUNDING CONTRIBUTION MENTIONED IN THE FOR SALE PROPOSALS BY HABITAT, FOR EXAMPLE.
THOSE AREN'T TIED TO THE LOW INCOME HOUSING TAX CREDIT PROJECT.
THOSE WOULD BE RELIANT ON MORE LIKE CONTRIBUTIONS AND FUNDRAISING FROM THE ORGANIZATION IS MY UNDERSTANDING.
AND THEN THE QUESTION ABOUT WHAT'S IN OUR, UH, REVOLVING, UH, HOUSING, UM, LOAN FUND.
SO, UH, SO WE HAVE A LOW AND MODERATE INCOME HOUSING FUND, THAT ONE, UH, SO, UH, THEY ARE ASKING, UH, FOR A GROUND LEASE, UH, FOR THAT FUND.
UM, THOSE ARE FUNDS THAT WE CAN GO OUT TO.
UM, WE COULD HAVE A NOFA, A SEPARATE NOFA A SEPARATE PROCESS FOR, UH, THOSE FUNDS TO DO ADDITIONAL HOUSING WITH, UM, ADDITIONAL AFFORDABLE HOUSING WITH.
SO, UH, THAT WOULD BE LIKE A SEPARATE PROCESS FOR THOSE FUNDS IF WE NEEDED TO COME THROUGH, UM, AND TO MAKE THESE PROJECTS PENCIL WITH, UH, THROUGH, WITH THE COUNCIL'S DIRECTION, WE COULD, UH, CONTRIBUTE SOME OF THOSE FUNDS TO THIS PROJECT.
UM, BUT THAT IS A SEPARATE DISCUSSION FROM THIS RFP PROCESS.
AND THEN, SO MY TWO FOLLOW UPS TO THAT, SO HOW MUCH IS IN THAT FUND? AND THAT IS NOT TIED TO THE GENERAL FUND, RIGHT? CORRECT.
YEAH, MY, MY ONLY DEAL WAS IS AS I'M READING IT EVERYWHERE, EVERY PROPOSAL THERE'S MONEY NEEDED FROM PARTNERS AND I GOT A FUND AND THAT'S, AND IT EXCEEDS WHAT WE HAVE.
UM, OTH OTHER QUESTIONS ON, ON THIS IS WE'RE JUST TALKING ABOUT THE PURPLE CALCITE RIGHT NOW.
UH, CHWI DO HAVE MY PREVAILING WAGE
[01:45:01]
QUESTION.UH, SO HOW WILL IT WORK? UM, YOUR PROJECT INCLUDES, UH, RENTAL HOUSING, 82 UNITS, IF I UNDERSTAND IT CORRECTLY.
THAT WOULD BE BUILT UNDER PREVAILING WAGE, UH, REQUIREMENTS.
UM, AND THEN 10 FOR SALE HOUSING UNITS.
AND THAT WOULD NOT REQUIRE, UM, YOU KNOW, I GUESS LABOR, YOU KNOW, FOR, FOR IT TO BE BUILT UNDER LABOR THAT IS PAID THROUGH PREVAILING WAGE.
SO CAN YOU HELP ME UNDERSTAND HOW THAT WORKS? SO THERE'S TWO REASONS WHY, UM, HABITAT FOR HUMANITY, UH, PROJECTS ARE FREQUENTLY NOT COVERED BY PREVAILING WAGE REQUIREMENTS.
THAT DOESN'T MEAN THAT WE DON'T A, A APPLY THEM IF A CITY INSISTS OR REQUIRES THEM.
THE FIRST ONE IS PRACTICAL AND THE SECOND ONE, UM, UM, AND THE SECOND ONE HAS TO DO WITH THE FUNDING SOURCES.
SO AS MENTIONED, RIGHT, IF THE FUNDING SOURCES DON'T REQUIRE IT, IT DOESN'T LAND AS AN AUTOMATIC REQUIREMENT.
THE PRACTICAL RATIONALE IS THAT FREQUENTLY HABITAT FOR HUMANITY ASKS FOR THE PURCHASERS TO CONTRIBUTE LABOR TOWARDS THE CONSTRUCTION OF THEIR HOMES.
AND SO AS A SELF-HELP BUILDER, THERE IS A CARVE OUT AT THE STATE LEVEL FROM PREVAILING WAGE REQUIREMENTS.
SO WHEN WE TALK WITH CITIES, IF THERE'S GONNA BE A DDA OR IF THERE'S GONNA BE SOME SORT OF A SIMILAR SORT OF, UM, OVERLAY, BE IT A-A-P-L-A, WE, WE HAVE TO HAVE A PRETTY NUANCED CONVERSATION ABOUT WHAT IS THE ROLE OF THOSE FAMILIES IN BUILDING THEIR HOME.
UH, IF YOU'RE A SELF-HELP BUILDER, IT'S ODD TO SAY AS YOU'RE BUILDING YOUR HOUSE, YOU HAVE TO DO A VALUATION OF THAT LABOR AND PAY PREVAILING WAGE.
WELL I HAVE A THOUSAND QUESTIONS BEYOND THAT, BUT I'LL LEAVE IT THERE.
AND YOU DID, UM, PARTWAY I THINK ANSWER MY NEXT QUESTION, WHICH HAS TO DO WITH, UM, UH, YOU KNOW, WHERE WOULD THE CITY, UM, IF THE CITY IS INTERESTED IN, UM, NEGOTIATING MAYBE OR ENCOURAGING THE NEGOTIATION OF A PLA ONTO THIS PROJECT? UM, I DON'T KNOW IF THIS IS A QUESTION FOR THE DEVELOPER OR FOR THE CITY'S SIDE.
UM, IS THERE AN OPPORTUNITY FOR THE CITY TO, TO MAKE THAT TYPE OF, UM, UM, ENCOURAGEMENT OR REQUIREMENT OR, I DON'T KNOW WHERE THAT FALLS IN.
I KNOW THE CITY FOR OUR CIP PROJECTS, WE DO HAVE A PLA IN PLACE REQUIREMENT.
SO DOES THAT FALL INTO THE DDA NEGOTIATIONS? I'M JUST TRYING TO UNDERSTAND, YOU KNOW, AT ONE POINT CAN WE BE, UM, YOU KNOW, CAN WE SUGGEST THAT, UH, THAT WOULD BE DURING THE ENA PROCESS OR DURING THE NEGOTIATION PROCESS? UH, THERE IS ROOM TO INCLUDE THAT.
IS THAT COMMON PRACTICE? IT IS.
DID YOU HAVE ANYTHING? YOU HAVE ANY YEAH, WELL, BUT YEAH, THAT'S GONNA BE ON THE RENTALS.
IT'S JUST NOT, NOT ON THE FOR SALE.
THAT'S WHAT THE QUESTION WAS, WAS, YOU KNOW, APPLYING IT TO BOTH.
AS FAR AS THE, UH, PREVAILING WAGE.
UM, ANY OTHER QUESTIONS ON THE, UM, PURPLE COW SITE IF YOU I OH, I, I, I, OKAY.
I WOULD HOPE, UH, I KNOW THAT, UH, SHELLY, UH, SHELLY WILL YOU LET US KNOW IF ANY TIME IF, UH, COUNCILMAN RODRIGUEZ IS AH, YEAH.
'CAUSE WE DON'T HAVE A HANDS UP THING ON THIS, UH, WITH HIM BECAUSE OF THE WAY IT'S BEING SET UP.
SO IF YOU'LL LET US KNOW IF ANY TIME THAT HE'S ASKING, UH, IF ANYTHING.
I, I HAVE QUESTIONS ON THE, UM, FOR THE DEVELOPER TEAM.
UM, IF YOU COULD, UM, UH, TALK ABOUT, UM, THAT WHAT I REFERENCED EARLIER FOR THIS SITE IS ANY PLANS IF, IF THERE WAS ANY CONSIDERATION YET ON THE, ON THE HISTORY OF THE SITE? I WILL SAY THAT, UM, I, I DO APPRECIATE THE, UM, THE 10 UNITS, UH, BEING, UM, HOME OWNERSHIP.
SO I REALLY APPRECIATE HABITAT AND HUMANITY, LOVE THE MODEL AND FAMILIAR, UH, WITH THAT HERE IN NATIONAL CITY.
SO COULD YOU TALK ABOUT, UM, ANY CONSIDERATIONS ON, ON DESIGN SITE HISTORY, HONORING THAT? HAVE YOU GONE THAT FAR OR? NO, I MEAN, PUTTING ON MY, MY PLANNER HAT, I LOVE WHERE YOU'RE HEADED WITH THAT AND IT'S IMPORTANT TO US TO MAKE, UM, COMMUNITIES THAT ARE VERY PLACE-BASED.
BUT IN TERMS OF THE AMOUNT OF DEVELOPMENT WE DID TO RESPOND TO THE RFP, WE DIDN'T GET INTO WAYS TO HONOR
[01:50:01]
THE HISTORY YET.BUT LOVE, LOVE THE DISCUSSION AND LOVE WHERE THAT'S HEADED.
AND I THINK THAT COULD LOOK LIKE A LOT OF DIFFERENT THINGS.
SO, BUT THAT'S SOMETHING THAT I WOULD BE INTERESTED IF, UM, DEPENDING ON WHAT WE AS A A BODY, THINK OF THE PROPOSAL.
THE, UM, SECOND QUESTION I HAVE FOR THE TEAM IS, HAVE YOU LOOKED AT FOR THESE 82 RENTAL UNITS, WHICH I THINK, UM, YOU KNOW, WE'RE REALLY FOCUSING ON HOME OWNERSHIP, BUT THIS IS ONE OF THOSE TOUGH PARTS WHERE IT'S LIKE, UH, DECISION POINTS.
DO WE, UM, DO WE BUILD MORE TO HOUSE MORE PEOPLE OR DO WE BUILD LESS SO THAT HOME OWNERSHIP IS, IS I THINK A REALLY, LIKE, IT'S, IT'S, IT SEEMS TO BE LIKE ALMOST A, A CONFLICT IN A WAY.
UM, SO HAVE YOU ALL FOR THE, UM, 82 UNITS, WHICH I THINK, AND I APPRECIATE THE, THE UNIT MIX, THE ONE AND TWO BEDROOMS, SO THEY'RE SMALLER.
UM, HAVE Y'ALL CONSIDERED SMALL UNITS LIKE STUDIOS? HAVE YOU ALSO CONSIDERED THE MODEL, UH, SUCH AS, UM, WHAT, UH, CASA FILI, UH, IS PROPOSING? HAVE YOU CONSIDERED SOMETHING LIKE THAT FOR THESE UNITS? UM, I'LL ANSWER IN REVERSE IF THAT'S OKAY.
UM, SO WE'RE REALLY IMPRESSED WITH CASA FAMILIARIS MODEL, UH, AND THE SAN YSIDRO PROJECT.
I THINK FOR US, WE JUST HAVEN'T SEEN THAT TRACK RECORD YET AS, AS STAFF AND, UM, THEIR CONSULTANTS INDICATED.
WE, WE HAVEN'T SEEN IT EXECUTED YET, BUT IT'S CERTAINLY SOMETHING THAT WOULD FIT INTO OUR OVERALL HOUSING MISSION.
UM, SO IN TERMS OF, HAVE WE CONSIDERED IT YET AS A COMPANY? YES.
BUT WE HAVEN'T SEEN ENOUGH IN THE MARKET TO BE ABLE TO PURSUE IT.
WOULD THAT, SO IF WE AT COUNCIL WERE TO MOVE FORWARD WITH THIS, WOULD THAT BE SOMETHING THAT DURING THE NEGOTIATION PROCESS THAT YOU ALL WOULD BE WILLING TO FURTHER EXPLORE FOR THESE, UH, 82 UNITS? Y YES.
WE, WE WOULD BE HAPPY TO EXPLORE IT.
WE MAY NOT GET TO THE ANSWER YOU WANT.
BUT WE'D BE HAPPY TO EXPLORE IT.
WELL, WHAT I'D, YEAH, WHAT I'D LIKE IS JUST KIND OF, UM, THROUGH THIS ENA PROCESS, WHAT I'D LIKE STAFF TO CONSIDER IS WHAT ARE ALL OF THE MIX OF OPTIONS MM-HMM
SO FOR EXAMPLE, IF IT'S A DESIGN THING THAT WE REALLY WANT TO SEE THAT INCORPORATES THE HISTORY, BUT THERE'S A COST TO THAT AT HOME OWNERSHIP, THEN WE MAKE MAKE THAT LIKE, HAVE A COUPLE OF OPTIONS ON WHAT, YOU KNOW, YOUR, YOUR, YOUR PROJECT CONCEPT IS.
SO, UM, OR IF IT'S, IT'S OTHER, OTHER TYPE OF CONCESSIONS, I DON'T KNOW WHAT THAT WOULD BE, BUT YEAH.
SO I, I AM AT THIS POINT LOOKING IF YOU'RE AT LEAST OPEN TO CONSIDERING THAT YEAH, WE'RE, WE'RE OPEN TO IT.
IT WOULD BE A NEW, A NEW APPROACH FOR US.
BUT IT, IT SEEMS PROMISING, SO.
WELL, I'D ENCOURAGE YOU GUYS TO BE INNOVATIVE AND LOOK AT NEW.
SO HOPE YOU GUYS CONSIDER THAT.
WELL, ANOTHER THING, AND I THINK THIS APPLIES TO THE, UH, TO ALL OF THESE PROJECTS AS WE'RE LOOKING AT THEM, UM, YOU KNOW, THERE'S A DESIRE TO BUILD MORE HOUSING, CAN NATIONAL CITY, UH, YOU KNOW, BUILD OURSELF OUT OF THE, YOU KNOW, IN, OUT OF THE HOUSING PROBLEMS. ESPECIALLY SINCE ON A LOT OF THESE PROJECTS THAT INVOLVE THE STATE, WE CAN'T, UH, UM, WE HAVE NO SAY SO ON LOCAL PREFERENCE.
SO WE'RE END UP BUILDING 'EM FOR NORTH COUNTY AND EVERYBODY ELSE UNDER THE SUN.
UM, AND SO THAT'S, UM, SO THE QUESTION, CAN WE, YOU KNOW, BUILD OURSELF OUT OF IT? AND THEN THE, THE DEAL IS, IS THAT THESE ARE ALMOST, THESE ARE ALL GONNA BE TAX EXEMPT, SO THEREFORE WE'RE GONNA BE PROVIDING MORE SERVICES TO MORE HOUSING UNITS, BUT WITHOUT THE INCOME, ANY INCOME COMING IN TO HELP PROVIDE THOSE SERVICES.
THAT BECOMES, THAT BECOMES A REAL KEY POINT ALSO IN THE MIDST OF ALL THIS AS WE LOOK TO IT.
SO WHEN WE LOOK ON HOW MUCH MONEY WE'RE GONNA USE TO SUBSIDIZE, IT'S ALMOST LIKE AS IF WE'RE, UH, YOU KNOW, AND I, I REALIZE WHAT THE MARKET SAYS, BUT AS I SAY, BUT THEN WE'RE SUBSIDIZING TO PUT OURSELF INTO MORE OF A DEFICIT.
AND, UM, SO, YOU KNOW, IT'S, IT'S SOMETHING I THINK THAT WE NEED TO, TO REALLY CAREFULLY LOOK AT AND AS FAR AS WHAT IS THE LONG TERM CONSEQUENCES, UH, GOING WITH A LOT OF THIS ALSO.
ANYTHING ELSE ON PURPLE CAL? I I JUST WANT TO RESPOND TO THAT, MAYOR.
SO I DO RECOGNIZE THAT, UM, BY BUILDING MORE AFFORDABLE, BUILDING MORE UNITS THAT, UM, OR SACRIFICING, UH, INCOME, I, UM, YOU KNOW, FUTURE REVENUE GENERATION.
BUT I ALSO BELIEVE, AND WE'VE HAD THESE DISCUSSIONS AS A BODY THAT PHILOSOPHICALLY THAT WE SHOULD DO MORE, UH, FOR HOUSING, UM, IN OUR COMMUNITY.
SO I THINK THAT'S, THAT'S WHERE WE'RE AT HERE.
THIS IS US DOING MORE AND GOING ABOVE AND BEYOND WHAT WE HAVE IN, IN THE PAST.
UM, BUT THE FISCAL SUSTAINABILITY, WHICH YOU'RE TALKING ABOUT, I UNDERSTAND THAT, AND I AGREE,
[01:55:01]
BUT I THINK FOR THE PROPERTY TAX COMPONENT OF IT, I'M, I'M WILLING TO, TO DO THAT.BUT I, AGAIN, IT'S, IT'S, UH, A CHOICES.
BUT, UH, PHILOSOPHICALLY I DO THINK THAT WE SHOULD MOVE, MOVE FORWARD WITH THIS.
AND I AGREE, AND JUST BE HONEST WITH YOU, THIS MORNING I WAS, I WAS IN THE, UH, PLANNING COMMITTEE FOR SANDAG ON HOUSING.
UH, AND WE HAD ONE OF THE CITIES TALKED ABOUT HOW MANY LOW INCOME HOUSING UNITS THEY HAD IN THEIR CITY.
AND, AND EVERYONE JUST GOES, WOW, THAT'S A LOT.
AND I SAID, WELL, I DON'T WANT TO PLAY ONE UPMANSHIP, BUT I SAID, OUR CITY HAS IN EXCESS OF 18% OF ALL OF OUR HOUSING UNITS ARE SECTION EIGHT.
AND, AND THEY GO AND THEIR MOUTHS DROPPED.
AND BECAUSE NONE OF THEM EVEN COME IN WITH 18% TOTAL LOW, UH, LOW INCOME HOUSING, UH, AND, AND AFFORDABLE HOUSING.
SO IT WAS, UH, UM, YOU KNOW, AND I MEAN LITERALLY MOUTHS DROPPED ON THAT ONE.
SO IT'S, IT'S A SITUATION THAT, YOU KNOW, WE CAN, WE CAN ONLY DO SO MUCH THAT YOU SOMETIMES GO OVER, YOU GET AN OVERSATURATION AND THEN YOU CAN'T AFFORD TO PROVIDE THE SERVICES.
WE GOTTA DO, WE GOTTA FIND OUT WHAT THE, WHAT THE RIGHT BLEND IS IN ALL OF THIS.
AND THAT'S, YOU KNOW, AND I'M SURE YOU ALL REALIZE THAT TOO BECAUSE, 'CAUSE WE DON'T WANT TO DO SOMETHING THAT WE CANNOT THEN PROVIDE, PROVIDE THE SERVICES AND TO THE POPULATION THAT WE'RE BRINGING IN.
AND, UH, UH, AND I'M NOT SAYING YOU, YOU DON'T DO THE PROJECTS THAT JUST MAKE SURE THAT WE'RE TAKING CARE OF WHAT, YOU KNOW, LOOK AT ALL THE CONSEQUENCES AND THAT WE PLAN AHEAD FOR, FOR THAT TO, TO BE ABLE TO MEET THAT NEED.
SORRY MR. MAYOR, IF I MAY JUST ADD SOMETHING TO CLARIFY THAT AS FAR AS THE, THE PAYING FOR SERVICES, WHILE WE ARE, OBVIOUSLY WE WOULD, THERE WOULD BE A LOSS OF, OF PROPERTY TAX COMPARED TO A A MARKET RATE.
THESE UNITS WOULD, WHEN THEY GO THROUGH THE BUILDING PERMIT PROCESS, STILL HAVE TO PAY DEVELOPMENT IMPACT FEES, NOT A TRANSPORTATION IMPACT FEE, WHICH IS A SANDAG FEE, BUT THEY WOULD STILL BE PAYING IMPACT FEES TO THE CITY, RIGHT? YEAH.
SO THAT INCLUDES PARKS AND SAFETY.
THEY WOULDN'T LIBRARY AND FORTH, THEY WOULDN'T PAY THE UH, UH, THE SANDAG ONES, CORRECT.
THE
BUT THE OTHER DEVELOPMENT IMPACT FEES WE HAVE ARE NOT, THERE'S NOT THAT MUCH TO 'EM.
WAS PUBLIC SAFETY IS ONE OF THOSE SO, HUH? PUBLIC SAFETY IS ONE OF THOSE PUBLIC SAFETY SEWER LIBRARY PARKS AND PARKS.
JUST THOUGHT WHAT, AND I ALSO DON'T THINK IT'S A PROBLEM IF WE HAVE A LOT OF SECTION EIGHT, UH, TENANTS, SO I DISAGREE WITH THAT.
BUT I, I GET WHAT YOU'RE SAYING.
EXCUSE ME, MAYOR, UM, COUNCIL MEMBER RODRIGUEZ HAS A COMMENT.
UM, FOR ME, IT'S NOT MUCH OF AN IDEOLOGICAL QUESTION MORE THAN A FINANCIAL QUESTION.
SO JUST AS A CURIOSITY, HOW MUCH PROPERTY TAXES ARE WE GETTING FROM THOSE EMPTY SITES RIGHT NOW? RIGHT NOW WE'RE GETTING ZERO.
SO IT BEHOOVES US TO DEVELOP IN ORDER TO BUILD UNITS, EVEN IF THEY ARE BELOW MARKET RATE, BUT THEY ARE FOR SALE, THEY WOULD INEVITABLY BRING IN PROPERTY TAXES AND TO PROPERTY THAT WE DO NOT GET ANY MONEY OUT OF AT THE MOMENT.
AND SO I DO THINK IT'S A FINANCIAL QUESTION.
IN ORDER TO BRING IN REVENUE, WE MUST CONTINUE TO ENHANCE DEVELOPMENT AND ENCOURAGE DEVELOPMENT AND, AND IDEALLY DEVELOPMENT FOR UNITS THAT ARE, THAT ARE FOR SALE.
BECAUSE THEY'RE GOING TO INEVITABLY GO UP IN PRICE YEAR AFTER YEAR.
AND IF THEY'RE EVER SOLD, THE NEW OWNER WILL PURCHASE AND PAY THE APPROPRIATE TAX BASE AT WHATEVER THEY PURCHASE THE PROPERTY FOR.
SO IT IS, I THINK, UH, UH, GOING TO INEVITABLY BRING IN ADDITIONAL, UH, REVENUE.
NOW I THINK, I THINK IF WE'RE TALKING ABOUT HOW MUCH REVENUE IT COULD BRING, IF ALL THOSE UNITS WERE TO BE MARKET RATE FOR SALE UNITS, THAT WOULD BE A DIFFERENT QUESTION.
BUT I THINK, I THINK FRAMING THE QUESTION AS YOU DID, MAYOR, IT IS MUCH MORE OF AN IDEOLOGICAL QUESTION THAN IT IS AN ACTUAL FACTUAL QUESTION BECAUSE FACTUALLY WE'RE NOT GETTING ANYTHING IN REVENUE FROM THOSE PROPERTIES AND DEVELOPING ANYTHING WOULD BRING IN SOMETHING.
SO I THINK, I THINK WE GOTTA STICK TO THE FACTS AND, AND NOT KIND OF GO OFF OUR OWN IDEOLOGICAL PERSPECTIVES WHEN IT COMES TO HOUSING.
AND ULTIMATELY OUR, OUR COMMUNITY NEEDS HOUSING AS WELL.
SO JUST WANTED TO POINT THOSE THINGS OUT.
BUT IF WE STICK TO FACTS, THE WHOLE THING WOULD BE, YES, YOU WOULD GET SOMETHING OFF OF NOW, RIGHT NOW, BUT NOW YOU'RE NOT PROVIDING ANY SERVICES TO IT, SO YOU HAVE TO INCREASE YOUR SERVICES AND IF YOU'RE NOT GETTING ENOUGH MONEY TO PAY THE SERVICES, AND CURRENTLY RIGHT NOW AT MARKET RATE DOESN'T EVEN PAY FOR SERVICES MUCH LESS, UH, IF IT'S NOT PAYING ANY, ANY AT ALL.
SO ANYWAY, SO THAT'S NOT, THAT'S NOT IDEOLOGICAL REAL.
REAL QUICK FOLLOW UP QUESTION.
UH, WOULD, UH, WOULD IT MATTER, UM, DOES IT MATTER ON THE FEASIBILITY, UM, THE, SO THERE'S A LONG-TERM GROUND
[02:00:01]
LEASE ON THIS.UM, SO WOULD IT BE DIFFERENT, BETTER FINANCIALLY FOR THE CITY FOR A SALE? WAS THAT CON CONSIDERED AN OUTRIGHT SALE OF THIS LAND INSTEAD OF A LONG-TERM GROUND LEASE? UH, AND I DON'T HAVE A PREFERENCE.
I'M JUST ASKING, JUST TRYING TO, UM, FOLLOWING UP WITH, UH, COUNCIL MEMBER RODRIGUEZ AND THE MAYOR'S, UH, COMMENTS ON FINANCIAL, FINANCIAL NO, I APPRECIATE THAT.
I, UM, I THINK IN TERMS OF WHY WE PROPOSED THE GROUND LEASE, IT STILL GIVES THE CITY CONTROL OVER THE OUTCOME OF THE LAND OVER THE LONG TERM.
THE LAND WILL REVERT BACK TO THE CITY EVENTUALLY FOR SCORING PURPOSES.
A LOT OF TIMES A GROUND LEASE IS ADVANTAGEOUS IN THE TAX CREDIT SCORING, UM, UM, UH, SCENARIO.
UM, SO, SO THAT'S WHY WE PROPOSED IT THAT WAY.
AND THEN THE CITY WOULD EVENTUALLY GET RESIDUAL RECEIPTS INCOME FROM THAT GROUND LEASE.
THAT, THANK YOU FOR EXPLAINING.
AND I DID, I'M, I'M SORRY, I DID WANT TO GET BACK TO YOUR EARLIER QUESTION ABOUT THE, THE MODEL THAT CASA PROPOSED FOR THEIR UNITS.
I THINK THE OTHER CHALLENGE WE WOULD HAVE IS SOME OF THE OTHER SOURCES WE PROPOSED MAY NOT RECONCILE WITH THAT, UM, EVENTUAL HOME OWNERSHIP PROVISION.
SO SOME OF THE OTHER STATE SOURCES WE PUT IN, UM, DO NOT ALLOW FOR THAT SALE.
SO IN OUR EXPLORATION OF WHETHER THAT'S POSSIBLE, WE WOULD HAVE TO REMAP WHAT OUR POTENTIAL SOURCES WOULD BE.
'CAUSE THE OTHER SOURCES HAVE A 55 YEAR RESTRICTION THAT IS TIED TO RENTAL.
IF WE CAN GO ON TO SITE TWO AND ANYTHING'S, 'CAUSE I THINK WE'RE EVEN WHAT WE JUST COVERED JUST NOW IS A LOT OF GENERAL QUESTIONS THAT'S GONNA DEAL WITH ALL OF 'EM.
THAT THIS SHOULD GO A LOT FASTER NOW.
SO IF WE CAN GO TO SITE TWO, WHICH IS THE DIVISION, DIVISION STREET, AND UH, UH, OUR AVENUE, THAT IS THE ONE THAT IS A THREE BEDROOM WITH A TWO BEDROOM A DU ON THE SITE.
AND THAT ONE, UM, ONCE AGAIN, UM, LAND CONTRIBUTION CITY AND THEN THERE'S A DEFINITE, UH, FINANCING, UH, DEFICIT OF 110,000 TO BE FUNDED BY PARTNER TO OWNER CONTRIBUTION.
BUT OTHER THAN THAT, I THINK, UM, IT HAD WHAT, A 45 YEAR DEED RESTRICTION AT 70% A MI.
ANY SPECIFIC QUESTIONS ON THAT ONE? OKAY.
FOR THE DEVELOPER IS THIS SITE, UH, I APOLOGIZE THERE'S A THOUSAND PIECES OF PAPER IN FRONT OF ME.
DOES THIS ONE ALSO FOLLOW THE MODEL AS IN SITE ONE REGARDING THE LONG-TERM LAND LEASE? UM, SO THE ASSUMPTION IS THAT THERE WOULD BE A GROUND LEASE, I BELIEVE.
RIGHT? AND THE REALITY IS THAT, UM, HABITAT HAS WORKED WITH LONG-TERM GROUND LEASES.
OUR REQUEST TO THE CITY WOULD BE THAT WE MAKE THE GROUND LEASE AS LONG AS POSSIBLE.
WE HAVE DEVELOPMENTS CURRENTLY IN OUR PORTFOLIO WHERE WE HAVE A FOR SALE UNIT.
WE'VE ESSENTIALLY SOLD THE IMPROVEMENT ON TOP OF, UH, LAND THAT IS OWNED BY A GROUND LEASE.
WE HAVE THAT GOING ON RIGHT NOW WITH THE CITY OF ENCINITAS.
SO THE CITY OF ENCINITAS OWNS THE LAND BENEATH A HOME WHICH WE'VE BUILT.
WHAT THEN HAPPENS IS YOU GET THE APPRAISAL BASED ON THE IMPROVEMENT THAT THEN INFORM THE BASIS OF THE MORTGAGE AND THEN THAT DRIVES WHAT THE CAPITAL STACK IS.
AND, AND SO THAT WOULD BE THE PART ABOUT THE LAND CONTRIBUTION WOULD BE THE LAND LEASE IT.
BEYOND THAT, IS THERE A, UM, YOU KNOW, PLUS SOME TYPE OF CASH CONTRIBUTION AS WE DISCUSSED FOR SITE NUMBER ONE? SO IN THE CAPITAL STACK, I DON'T THINK WE HAVE A SPECIFIC CASH CONTRIBUTION FROM THE CITY.
THE REALITY HOWEVER, IS THAT A BIG PART OF HABITAT'S MODEL IS SEEKING DONATIONS FROM BOTH, UH, CORPORATE PARTNERS AND FROM INDIVIDUALS.
UM, AS MY DAD LIKES TO SAY, I AM IN THE BUSINESS OF SELLING HOMES FOR LESS THAN THEY COST.
AND SO THAT MEANS THAT WE HAVE TO GO AND SOLICIT THAT MONEY TO MAKE UP THAT DIFFERENCE.
UM, SO THE, THE NUMBERS JUST SEEMED VERY SPECIFIC, VERY IDENTIFIED FOR SITE NUMBER ONE.
AND I'M NOT HEARING THE SAME FOR SITE NUMBER TWO.
UH, I'M JUST SORT OF, UM, TRYING TO UNDERSTAND THAT LAND CONTRIBUTION PORTION FOR SITE NUMBER TWO.
AND, AND I'LL ASK THE SAME FOR ALL OF THE OTHER SITES, THE LAND CONTRIBUTION PORTION OR THE, OR THE FUNDING FROM OTHER SOURCES.
[02:05:02]
I, I GUESS THE ENTIRE CONVERSATION THAT WE JUST HAD REGARDING THE LAND CONTRIBUTION PLUS, YOU KNOW, WHICH IN MY MIND, OR AT LEAST PER THE NOTES THAT I WROTE, EQUATES TO THE VALUE OF THE 2.9 UH, MILLION, WHICH COMES IN THE FORM OF RESIDUAL RECEIPTS LOAN PLUS THE 1.5 MILLION.UM, I HAVE A QUESTION MARK ON HERE IN THE FORM OF CASH, UH, VIA DEFERRED DEVELOPER FEE IS WHAT I WROTE IN MY NOTES AS FAR AS, AND THEN LATER ON I WROTE DOWN LONG TERM LAND LEASE, CITY RETAINS, OWNERSHIP OF THE LAND.
ALL OF THAT CONVERSATION WE HAD FOR SITE NUMBER ONE.
SO WHAT IS THAT CONVERSATION FOR SITE NUMBER TWO? I THINK IT RUNS ALONG SIMILAR LINES.
I THINK THE IDEA IS THE CITY IS GONNA RETAIN OWNERSHIP OF THE LAND AND THE VALUATION OF THE LAND LEASE IS, IS STRUCTURED, I THINK FROM IN ACCOUNTING AND JUST TO HAVE IT SORT OF UNREPRESENTED AS A CONTRIBUTION INTO THE PROJECT.
THE VALUE OF THAT GROUND LEASE, DO YOU KNOW THE NU THE VALUE NUMBER, THE NUMBER, THE, THE AMOUNT IT WOULD BE PENDING THE APPRAISAL? WE, WE DON'T KNOW WHAT THE VALUE OF THE LAND IS WITH AN IMPROVEMENT ON IT.
IT, YOU KNOW, SUBJECT TO THE USE.
WE'D HAVE TO EXPLAIN TO THE APPRAISER THAT IT'S GONNA BE THIS PARTICULAR PIECE OF LAND AND, AND THIS IS THE PLANNED USE AND SO THEN THAT'S GONNA DRIVE WHAT THE VALUATION IS GOING TO BE.
BUT, BUT WE COULDN'T SPEAK TO IT NOW.
UH, JUST A FOLLOW THROUGH SIR.
UH, YOUR PROJECT ON HARDING, IS THAT LAND LEASE, SIR? UH, NO.
UH, THE CITY CONTRIBUTED THAT LAND INTO THE PROJECT AND WE WERE ABLE TO SELL THOSE UNITS.
FEE SIMPLE, YES, NO, NO RESTRICTION ON DEED.
UH, THERE IS A DEED RESTRICTION AS PART OF THE FINANCING CAPITAL STACK.
SO FOR ALL OF THE UNITS THAT HABITAT BUILDS, WE HAVE A 30 YEAR, UH, AFFORDABILITY COVENANT.
AND I'D HAVE TO FRANKLY ASK MY STAFF IF THE CITY PUT AN ADDITIONAL, UH, PERIOD BEYOND THOSE 30 YEARS.
BUT WE HAVE A 30 YEAR AFFORDABILITY COVENANT FOR EVERY PROPERTY THAT WE, UH, DEVELOP.
THAT IS THAT, UM, SO YOU SAID IT'S NOT LAND LEASE, IT'S A CONTRIBUTION FROM THE CITY.
IS THAT SOMETHING THAT YOU'RE ALSO TRYING TO SEEK FOR THIS SITE? FOR THIS, UM, FOR THIS, UH, SITE TO PROJECT THIS, UH, OUR AVENUE? SO AS PART OF OUR PROPOSAL, WE HAVE A STRUCTURED, AS A, WE HAVE IT STRUCTURED AS A, WE HAVE IT STRUCTURED AS A GROUND LEASE.
I THINK THE INTENT WAS, OR THE ASSUMPTION IS THAT THE CITY WOULD PREFER TO RETAIN OWNERSHIP OF THE LAND.
IF THE CITY IS INTERESTED IN ENTERTAINING A CONTRIBUTION OF THE LAND, THAT WOULD BE A BENEFIT THAT WOULD ACCRUE TO THOSE OWNERS OF THE PROPERTY THAT WOULD BE A BENEFIT TO THOSE FOLKS.
SO, SO IF THE CITY IS WILLING TO CONSIDER THAT, WE, WE WOULD CLAP OUR HANDS AND SAY THANK YOU.
BUT WE DIDN'T PROPOSE THAT BECAUSE WE ASSUMED THAT THE CITY WOULD PREFER TO RETAIN A LONG-TERM OWNERSHIP.
SO TO BE CLEAR WITH THIS THEN, UM, YOU WOULD LIKE THE OPTION, 'CAUSE I, I MEAN I'D BE OPEN TO, UM, DE DISPOSING OF THE LAND TOO, OF JUST SELLING IT OUTRIGHT, BUT THAT'S SOMETHING THAT YOU WANTED, THAT YOU WERE IN ALMOST MORE INTERESTED IN IS, IS, UM, PURCHASING THE LAND OUTRIGHT INSTEAD OF A LONG-TERM GROUND LEASE.
IS THAT CORRECT? PRIOR TO THIS MOMENT, I HAD NOT CONSIDERED A LAND CONTRIBUTION IN, WE HAD CONCEIVED OF THIS PROJECT AND OUR PROPOSAL WAS BASED AROUND A GROUND LEASE.
THERE'S THE NATURAL TENSION OF WANTING TO MAKE YOUR PROPOSAL AS ATTRACTIVE AS POSSIBLE AND WE ASSUMED THAT, THAT THE CITY WOULD WANT TO KEEP OWNERSHIP IF THE CITY IS WILLING TO ENTERTAIN A CONTRIBUTION OF THE LAND.
WE WOULD VERY MUCH THINK THAT WOULD BE ADVANTAGEOUS TO THE OWNERS OF THOSE PROPERTIES.
I WOULD LIKE IT AT LEAST CONSIDER, BUT THAT IS NOT CONSIDER, THAT IS NOT SOMETHING THAT WE'VE MODELED NOR ASSUMED.
YEAH, REAL QUICK, SORRY IF, IF I CAN BOUNCE THAT QUESTION TO STAFF BECAUSE I THINK, UM, YOUR ASSUMPTION WAS BASED ON THAT SCORING THAT WAS PRESENTED IN THE RFP, RIGHT? SO MAYBE STAFF CAN WEIGH IN ON WHAT THE PREFERENCE MAYBE FROM THE CITY'S SIDE IS, UM, BASED ON THE SCORING IN THE RFP, UM, YOU KNOW, WHY WAS IT SCORED OR WHY WAS IT, UH, PRESENTED THAT WAY TO DEVELOPERS? IS DOES THE CITY HAVE A PREFERENCE TO, TO FOR A GROUND LEASE? AND, AND IF YOU DON'T HAVE AN ANSWER, THAT'S OKAY, BUT IT, YOU KNOW, WE'RE ASKING QUESTIONS.
I I DON'T BELIEVE THE RFP CONTAINED A PREFERENCE FOR A GROUND LEASE OR NOT.
I I WAS ASSUMING THAT THE, THERE WAS SOME TYPE OF SCORING MECHANISM THAT WOULD GIVE MORE POINTS IF A GROUND LEASE WAS PRESENTED.
OR A LONG-TERM LEASE WAS PRESENTED.
JUST A FOLLOW UP, UM, SIR, THE ED FOR EXECUTIVE,
[02:10:01]
UH, FOR THE HABITAT SITE, I'M HABITAT FOR HUMANITY.UM, WOULD YOU BE VERY KIND TO GIVE ME AN OVERVIEW OF THAT PROP PROJECT ON HARDING, THE SIX UNITS, WHAT PROPERTY TAX, UM, IS THAT YIELDING THE CITY? SO IT'S A SIX UNIT, THREE BEDROOM TOWN HOME DEVELOPMENT.
UM, THE PROPERTY TAX STRUCTURE IS THAT THE HOMEOWNERS ARE TAXED ON THE MORTGAGES THAT HAVE A FIXED REPAYMENT DATE.
SO THAT IS THE FIRST PAYABLE MORTGAGE.
UM, I COULD NOT TELL YOU HOW MUCH IT'S YIELDING.
I'D HAVE TO EITHER, UH, LOOK IT UP OR ASK MY STAFF.
AND I ALSO WANT TO INCLUDE THE CAVEAT THAT THERE MAY BE MORTGAGES THAT ARE REPAYABLE BEYOND THE FIRST MORTGAGE THAT ARE INCLUDED IN THAT PROPERTY TAX BASIS.
BUT FOR THAT SPECIFIC PROJECT, AND I'D HAVE TO REFER TO SOME NOTES TO BE COMPLETELY ACCURATE, BUT THAT IS THE OVERALL STRUCTURE AND APPROACH.
SO FOR EXAMPLE, YOU HAVE A $300,000 MORTGAGE FOR FIRST, UM, 1% OF THAT FOR EACH UNIT.
SO, UM, THINKING BACK, I BELIEVE THE HOMES APPRAISED FOR JUST UNDER $600,000.
AND ONE OF THE THINGS THAT IS UNIQUE ABOUT THE HABITAT MODEL IS THE MORTGAGE AMOUNTS DIFFER PER FAMILY.
WE CHARGE A, WE APPLY 30% OF THE FAMILY'S INCOME TOWARDS THE MORTGAGE THAT WE ORIGINATE.
SO IN, SO I'M GIVING YOU KIND OF A RANGE.
I BELIEVE THE MORTGAGES WERE AROUND THE SORT OF TWO 80 TO THREE 50 RANGE.
AND AT THE TIME I THINK THAT'S AS ABOUT AS ACCURATE AS I THINK I CAN GET.
SO WITH THAT YOU CAN FIGURE OUT WHAT REVENUE WILL COME BACK TO THE CITY, KIND OF AN OVERVIEW.
IF THERE'S NO MORE ON THAT ONE, WE'LL TAKE A LOOK AT ANOTHER SITE.
AND THAT'S THE ROOSEVELT AND 11TH STREET, WHICH IS CLOSE TO US HERE.
AND, UH, THIS ONE, WE HAD, THIS ONE, WE DID HAVE TWO PROPOSALS ON, UH, THAT CAME IN.
AND THEY'RE VERY DIFFERENT PROPOSALS IN THAT THE, UH, THE SAN ANDREAS ONE, UM, INCLUDED OTHER PROPERTIES THAT THEY WERE COMBINING WITH IT.
AND, UH, AND WHERE THE, UH, UH, COMMUNITY HOUSING WORKS HABITAT WAS ONLY JUST THAT PIECE OF PROPERTY BY ITSELF.
SO, UM, WITH THAT, ANYTHING ON THAT ONE? NOW THAT'S TALKING ABOUT SIX STORIES, UM, UM, 20 UNITS WITH FOUR PARKING SPACES, HUH? THAT'S THE, YES, BECAUSE YEAH, THE OTHER ONE THAT'S NOT ANDREAS ONE IS EIGHT STORIES.
THAT'S 121 UNITS, BUT IT INCLUDES THE ADJACENT PROPERTIES.
ALSO, STAFF IS RECOMMENDING THE COMMUNITY HOUSING WORKS PROJECT.
YEAH, SO, UM, I KNOW PARKING IS, UM, A QUALITY OF LIFE CONCERN FOR OUR RESIDENTS.
UM, ANOTHER QUALITY OF LIFE CONCERN IS HOMELESSNESS AND JUST THE HOUSING CRISIS.
AND SO THAT HAS ALWAYS BEEN CONSISTENT ON THAT MAYOR.
UM, THAT, UH, THE, WE HAVE A HOUSING CRISIS, NOT A PARKING CRISIS.
SO, UM, I, IF THERE'S WAYS WE, IF WE, THERE'S CONCERNED ABOUT THE PARKING ASPECT, THEN I'M, YOU KNOW, OPEN TO DISCUSSING HOW WE MITIGATE THOSE IMPACTS, UM, OR HOW THIS PROJECT CAN, UM, BUT THAT, UM, I, I, WITH THE COMMUNITY HOUSING WORKS THIS PROPOSAL, I, YOU KNOW, IT SEEMS, UH, SOLID.
I ALSO APPRECIATE, UM, OOBA FOR SUBMITTING A PROPOSAL.
UM, AND I KIND OF HAVE SOME FOLLOW UP QUESTIONS, UH, FOR, FOR THEM I THINK IF THEY'RE ONLINE BECAUSE, UH, I KNOW OUR STAFF DID, DID NOT RECOMMEND, UH, MOVING FORWARD WITH THAT AT, AT THIS POINT.
AND I DO SHARE THE CONCERNS BECAUSE WHEN WE LOOK AT THE TWO PROPOSALS, UM, COMMUNITY, COMMUNITY HOUSING WORKS, PROPOSALS MUCH MORE DETAILED.
AND, UM, THERE WAS ALSO CONSIDERATIONS, IF I REMEMBER CORRECTLY, AND STAFF, PLEASE, UH, CORRECT ME IF I'M, UM, IF I STATE SOMETHING WRONG, BUT, UM, THERE WASN'T A PLAN OR IT DIDN'T SEEM TO ME LIKE THERE WAS A PLAN ON THE, UM, THE PARCELS THAT
[02:15:01]
THEY DON'T HAVE CONTROL OVER.AND THAT'S A BIG CONCERN OF MINE IS, UH, PROPOSING SOMETHING THAT THERE'S NO LAND CONTROL OVER.
SO IT KIND OF MAKES IT UNREALISTIC OR UNFEASIBLE IN MY EYES.
SO I DID WANNA GIVE OOBA A CHANCE TO, TO SPEAK BECAUSE I DO APPRECIATE THEM SUBMITTING A PROPOSAL.
I APPRECIATE THE DIVERSITY, THIS IS WHAT WE WANT.
AND, UM, BUT, BUT IT WAS, THERE WERE, THERE WERE SOME DEFINITELY LEGIT CONCERNS I HAD JUST ABOUT EXPERIENCE AND THE FEASIBILITY OF THE CONCEPT.
MAYBE THAT'S FOR CITY CLERK, IF THEY CAN ASK IF TBA IS AVAILABLE.
THAT WOULD BE ALEX FROM, UM, TUMBA, SAN ANDREAS DEVELOPMENT TEAM FOR THE CHAIR.
UM, SO, UH, CAN YOU JUST CLARIFY WHAT EXACTLY YOUR QUESTION IS? 'CAUSE I'M A LITTLE, A LITTLE LOST? SURE, SURE.
SO STAFF DID NOT RECOMMEND MOVING FORWARD.
I GOT THAT AND THERE WAS, UH, SUMMARIZED AS THE ITEMS Y UM, SO LOW YIELD OF AFFORDABLE UNITS.
UM, THE, THERE WERE GAPS IN THE PRO FORMA THAT I PERSONALLY, UM, SAW.
AND THEN, UH, LIMITED COMPARABLE EXPERIENCE AND LACK OF INFORMATION ON THE FINANCIAL CAPACITY OF THE INVESTMENT, UH, PARTNERS.
UM, SO COULD YOU, UH, SPEAK TO THAT? AND AGAIN, I APPRECIATE YOU SUBMITTING A PROPOSAL.
SO, BUT I DID FIND IT LACKING, SO I WANTED TO GIVE YOU AN OPPORTUNITY TO CLARIFY.
WELL, UH, THIS IS A, AN ASSEMBLAGE, UH, OF A FEW DIFFERENT PARCELS, UH, ONE OF WHICH WAS NOT UNDER OUR CONTROL, UM, UH, ANY LONGER.
UM, AND SO, YOU KNOW, THERE, THERE WERE SOME ELEMENTS OF IT THAT, TO YOUR POINT, UM, REQUIRED.
UH, YOU KNOW, I THINK A LITTLE BIT OF, AT THE TIME WHEN THIS WAS SUBMITTED, WHICH IS NOW, UH, LONG SINCE PASSED, UH, WE WERE KIND OF IN A BETTER NEGOTIATING POSITION FOR THAT AL PARCEL OR THAT, THAT PARCEL THAT WASN'T IN OUR CONTROL, UM, OUTSIDE OF THE, THE CITY ONE.
UM, BUT THAT, YOU KNOW, IT KIND OF LIKE SAT FOR A WHILE.
AND SO THAT CON THE CONTROL ASPECT OF THAT, UM, WAS LOST.
THE, YOU KNOW, I, I, I, UM, I DON'T KNOW IF I NECESSARILY AGREE ABOUT THE COMPARABLE EXPERIENCE, BUT, UM, WELL, SURE.
CAN YOU, CAN YOU EXPAND ON THAT WHY, UM, YOU DO THINK YOU HAVE, SO I'M OPEN TO, UH, HEARING YOU, SO WHY, UM, YOU DO HAVE THE, WELL, LOOK, I MEAN THE EXPERIENCE, I, UM, I WE'RE, YOU KNOW, WE'RE, I'M HAPPY TO KIND OF WALK THROUGH THE COMPARABLE EXPERIENCE.
I, I DON'T KNOW IF BRIEFLY IF YOU CAN PLEASE.
SO I, I MEAN, WE AS A TEAM HAVE A TREMENDOUS AMOUNT OF MIXED USE MULTIFAMILY EXPERIENCE.
UM, AND, AND THE, YOU KNOW, A A SMALL PORTION OF THAT WAS, THAT EXPERIENCE WAS SUBMITTED WITH OUR, UM, PROPOSAL.
UH, I THINK THERE WAS, YOU KNOW, SOME CONSIDERATIONS TO SELECTING ONES THAT WERE MOST APPLICABLE.
UH, AND THEN, BUT YOU KNOW, THE, THE, THE TEAM AS A WHOLE, UM, HAVE A, HAVE A TREMENDOUS AMOUNT OF EXPERIENCE.
THE, THE, YOU KNOW, THE, THE INTENT HERE WITH THIS PROJECT REALLY WAS TO, YOU KNOW, ATTEMPT TO MEET THE VISION AS BEST WE COULD TO MEET THE VISION OF DENSITY OUTLINED IN THE OVERLAY IN THE DOWNTOWN SPECIFIC PLAN.
UM, AND SO, UH, THAT VISION OF DENSITY, THAT'S, THAT WAS IN THE, THE SPECIFIC PLAN AND OUTLINED BY THE CITY PLANNERS WHEN THAT WAS INITIALLY DRAFTED, UH, ENVISIONED A FAIR AMOUNT OF DENSITY ON THIS BLOCK.
UH, AND SO WE SAW THAT VISION AS BEING THE GUIDING LIGHT FOR WHAT WE WERE PROPOSING, WHICH, YOU KNOW, YOU KNOW, TO YOUR, UH, INITIAL COMMENT ABOUT RISK, UH, YOU KNOW, IT WAS VALID, I GUESS THE, IS THAT WE SAW THAT ASSEMBLAGE AS BEING CRITICAL IN ORDER TO ACHIEVING THE DENSITY ENVISIONED BY YOUR CITY'S PLANNERS, RIGHT? AND SO THE, THE GOAL HERE WAS TO GET TO A PROJECT THAT ALIGNED ITSELF REALLY WITH THAT, THAT THE ONLY VI THE ONLY URBAN VISION THAT'S BEEN CANONIZED, RIGHT? FOR THE DOWNTOWN SPECIFIC PLAN IN RECENT HISTORY, AND THAT'S THE SPECIFIC PLAN, UM,
[02:20:02]
LOWER DENSITY FOR, FOR THESE PRO PROJECT, FOR THIS, FOR ONE PARCEL OUT OF THE ASSEMBLAGE THAT WE WERE PROPOSING IS GOING TO REALLY CURTAIL ANY FUTURE DEVELOPMENT OF, OF THAT BLOCK.NOW, DOES IT LIMIT IT? NO, NOT NECESSARILY.
IT DOESN'T, DOESN'T PRECLUDE IT FROM HAPPENING IN THE FUTURE, BUT IT, IT MAKES IT THAT MUCH HARDER IN ORDER TO ACHIEVE, IF THE GOAL OF THE CITY IS TO HAVE IT GROW IN ALIGNMENT WITH THE VISION OUTLINED IN THE SPECIFIC DOWNTOWN SPECIFIC PLAN, WHICH WAS WHAT WE GUIDED OUR PROPOSAL AROUND UNDER.
AND, UM, AND THEN THE HOMEOWNERS.
SO IN A, UM, I DO UNDERSTAND AND DO AGREE THAT, UM, PART OF THE, SO THE, THE, THE COMPLEXITY OF HOME OWNERSHIP IS IN A, IN A PROJECT DESIGN LIKE THIS ONE IS REALLY GETTING TO, IT IS REALLY HAVING TO DO WITH THE, THE COMPLEXITIES ASSOCIATED WITH CONDOMINIUM DEVELOPMENT IN GENERAL, RIGHT? UH, AND SO THE, OUR, OUR APPROACH WAS TO CARRY THIS PROJECT, UH, FOR RENT, UM, IN ORDER TO MITIGATE THAT, THAT LIABILITY, AND THEN ONCE THAT LIABILITY HAD BEEN MITIGATED, THEN THEN TRANSFER THOSE, THOSE DEEDS FOR SALE.
UH, THANK YOU, THANK YOU FOR THE CLARIFICATION ON WHAT YOUR KIND OF VISION OR YOUR GOAL FOR THE PROJECT IS, DENSITY MEETING OUR DOWNTOWN SPECIFIC PLAN GOALS.
SO, ANY OTHER QUESTION ON THE HOME OWNERSHIP? UM, ALEX, WAS YOUR TEAM OPEN TO LOOKING AT A MODEL, UH, SIMILAR TO, UH, CASA FILI, UH, MODEL FOR CON CONVERTING THOSE, UH, UNITS TO HOME OWNERSHIP? UH, CLARIFY WHAT THEIR MODEL IS SPECIFICALLY? UM, I APOLOGIZE, UH, FOR INTERRUPTING, BUT WE DO HAVE ANTONIO, UH, FROM THE TUMBA SAN ANDREAS, UH, DEVELOPMENT TEAM ON THE LINE.
ALSO, HE WOULD LIKE TO ADD TO THE FIRST QUESTION WAS, UH, WHICH WAS ABOUT THE DEVELOPMENT TEAM'S EXPERIENCE.
THEN MAYBE HE COULD, UM, STAY UNMUTED AND, UH, ALSO CONTRIBUTE TO THE RESPONSES.
WELL, YEAH, COURSE, ANTONIO, EXCUSE ME.
WHAT WAS THE DEVELOPMENT MODEL THAT YOU, THE THE MODEL OF OWNERSHIP? I MEAN, I, I THEY, IF YOU'RE REV REFERENCING LIKE THE, A MODEL THAT WAS DISCUSSED EARLIER IN THE PRESENTATION BY ANOTHER DEVELOPER, UM, YEAH.
SO THE, THE CASA FAMILIAR MODEL, WHICH THEY COULD, UH, TALK ABOUT.
BUT I THINK WHAT IT BOILS DOWN TO IS, UM, HAVING IT BE AFFORDABLE, BUT ACTUALLY THESE ARE MARKET RATE ARE, ISN'T IT? ARE THESE MARKET, ARE THESE UNITS MARKET RATE A MIXED INCOME? IT'S MIXED.
THERE'S AN ALLOCATION TO AFFORDABLE AND, AND THERE'S MARKET RATE, WHICH I'M TRYING TO SEE ON THE PROPO.
HOW MANY UNITS, UH, OF THESE, UH, 121 WERE YOU PROPOSING AFFORDABLE? UH, I'D HAVE TO CHECK.
I DON'T HAVE THE, THAT NUMBER IN FRONT OF ME.
IT, IT, IT'S SHOWING IT'S THREE UNITS AT 40% A MI.
I WAS, SORRY GUYS, I WAS JUST GONNA, YOU KNOW, IT WAS ANSWERED BY, I WAS GONNA ASK TO REPEAT THE QUESTION IN.
THANK YOU, MAYOR, CAN I GO NEXT? YES, GO AHEAD, ED.
UH, MR. ALEX, I'M GONNA ASK YOU THE SAME QUESTIONS, AND THEY APPLY BOTH TO, UM, SITE THREE.
I KNOW WE'RE FOCUSED RIGHT NOW ON SITE THREE, BUT THEY APPLY BOTH TO SITE THREE AND SITE FOUR.
UM, THEY ARE RELATED TO THE PREVAILING WAGE QUESTION THAT I ASKED, UM, ONE OF THE OTHER DEVELOPERS.
UM, AND IT HAS TO DO WITH YOUR PROPOSAL.
UM, THEY ARE FOR SALE UNITS, AND SO IT DOESN'T, UM, IT'S NOT TRIGGERING THE, YOU KNOW, UM, PREVAILING WAGE AS FAR AS THE CONSTRUCTION FOR THE, FOR THE, THE PROJECT BECAUSE YOU'RE NOT BUILDING RENTAL UNITS.
SO MY QUESTION HAS TO DO WITH, ARE YOU, IS YOUR TEAM, UH, OPEN TO,
[02:25:01]
UM, YOUR PROJECT BEING CONSTRUCTED UNDER A PLA AGREEMENT OR, UM, YOU KNOW, CONSIDERING, UH, PAYING PREVAILING WAGE TO GET THE PROJECT BILLED EITHER FOR, UH, SITE THREE OR SITE FOUR? UH, TO CLARIFY, UH, IT IS ACTUALLY MAJORITY FOR RENT.UM, AND IT, OH, WE, THAT'S, SORRY.
WE HAD NOT UNDERWRITTEN IT AS PREVAILING WAGE BECAUSE WE WEREN'T UTILIZING PUBLIC FINANCING.
AND SO THIS, THE, WE WERE NOT ASSUMING THAT THE, THE PROJECT WOULD BE BUILT WITH PREVAILING WAGE.
UM, AND THEN MY OTHER QUESTION, YOU KNOW, I'M ACTUALLY A LITTLE, GO AHEAD.
NO, I MEAN, I, I, I MEAN, I WOULD SAY THE SUBMITTAL DID NOT ASSUME THAT WE, YOU KNOW, WE COULD POTENTIALLY, UM, YOU KNOW, I, UH, WE'RE, OUR PROJECTS NOT THE REC ARE NOT THE RECOMMENDED SELECTION.
SO, UH, BUT IF, IF IT WERE, IF DISCUSSIONS WERE TO BE ENGAGED BY THE CITY, WE, YOU KNOW, WE COULD CERTAINLY LOOK AT THAT, BUT IT WOULD TAKE SOME ANALYSIS TO EVALUATE WHETHER OR NOT THE PROJECT COULD SUPPORT THAT ADDED COST BENEFIT, WHICH WAS MENTIONED EARLIER IN THE MEETING TODAY.
IT LOOKS LIKE, UH, MR. ANTONIO HAS, UM, OKAY.
SO I WAS, UH, SPEAKING REGARDING THE, UM, EXPERIENCE THAT WE HAVE AS DEVELOPERS.
SO WE'VE DONE MOST OF OUR PROJECTS IN MEXICO CITY AND IN SPAIN, AND WE'VE HAD DONE SOME RESIDENTIAL PROJECTS, UH, HERE IN, IN SAN DIEGO ON THE RESIDENTIAL LEVEL, THAT'S FOR A TOBA SEA.
I KNOW THAT, THAT SAN ANDRES HAS, UM, MORE EXTENSIVE EXPERIENCE.
AND REGARDING THE, UH, QUESTION THAT WAS ASKED ABOUT THE NON-CONTROLLED PARCEL, WE'VE BEEN ON ESCROW MULTIPLE TIMES WITH THAT PARCEL PRECISELY TO TRY TO SECURE IT FOR THIS, UM, UH, DEVELOPMENT.
SO WE ARE, UM, IN, UH, WE HAVE THAT HAD THOSE CONVERSATIONS WITH THE OWNER, UM, MULTIPLE TIMES.
WE JUST NEED TO MAKE SURE THAT IF WE ARE GOING TO MOVE, BE MOVING FORWARD, UM, WITH THE PROJECT, WE WILL NEED TO ACQUIRE THAT LAND.
UH, I DUNNO IF THAT ANSWERED THE QUESTION THAT WAS ASKED ABOUT THE PARCEL THAT IS NOT, UM, CONTROLLED BY US CURRENTLY.
IF I COULD ASK YOU A QUESTION.
UH, SO YES, YOUR, YOUR PROPOSAL THERE ON SITE THREE IS FOR EIGHT STORIES, AND SO YOU'D BE CORRECT, YOU WOULD BE, UH, UH, YOU'RE TALKING ABOUT DOING EIGHT STORIES THAT'S AT, UH, STICK CONSTRUCTION? YES, THAT IS CORRECT.
UH, IT'S A PODIUM ON, ON WOOD.
UH, WHAT, WHAT YOU'RE BE TALKING WHAT, SEVEN STORIES OVER PODIUM? IS THAT WHAT YOU'RE LOOKING AT OR WHAT? YES, SIR.
THERE, IT'S TWO LEVELS OF, OF, THERE'S MORE THAN ONE LEVEL OF CONCRETE.
YEAH, THAT'S, THAT'S PROBABLY THE, THE CONFU SOURCE OF THE CONFUSION.
UM, THE CONCERN I HAVE WITH THE, THE CHW ON THIS ONE IS PUTTING 20 UNITS INTO THAT NEIGHBORHOOD WITH FOUR PARKING SPACES, BECAUSE I, I KNOW WHAT SACRAMENTO SAYS, BUT SACRAMENTO'S CRAZY ON A LOT OF THEIR HOUSING IDEAS AND YOU KNOW, WHAT THEIR CONCEPT IS OF THE WORLD.
AND SO IT'S, UH, UM, YEAH, I, I HAVE SOME CONCERNS ABOUT THE HEAVY IMPACT IN THAT, THAT AREA WITH ONLY FOUR PARKING SPACES FOR 20 UNITS.
BUT, UM, BUT, UM, ALRIGHT, SO WITH NOTHING ELSE ON SITE THREE, WE CAN LOOK AT SITE FOUR.
THAT'S THE OTHER ONE THAT HAS THE, UH, TWO PROPOSALS AND, UH, THAT IS A AVENUE AT 11TH STREET MAYOR COUNSEL.
UH, MAY I ADD, UM, THAT, UH, WHEN YOU'RE GOING THROUGH EACH SITE, YOU CAN INCLUDE IF YOU, UH, WOULD LIKE THE DEVELOPER TO CONSIDER ADDING ADDITIONAL PARKING YEAH.
OR, UM, CHANGING THE PROPOSAL, UM, IN, IN ANY WAY.
THAT WOULD BE SOMETHING THAT WE CAN NEGOTIATE WITH THEM, UM, DURING THE ENA PROCESS.
[02:30:01]
WE TURN INTO THE, WELL, THAT'S SOMETHING FOR, FOR, FOR THAT PROPOSAL FOR, UH, COMMUNITY HOUSING WORKS.IF WE WAS TO LOOK AT THAT ON THAT SITE, I WOULD DEFINITELY WANT TO SEE MORE PARKING.
UH, AND WITH IT BEING CITY PROPERTY, WE GOT A LITTLE BIT MORE SAY SO THAN A, IF IT WAS AN OUTSIDE, OUTSIDE, UH, UH, PROPOSAL AS FAR AS BY STATE LAW, THAT'S THE DIRECTION THAT WE WOULD JUST NEED, UH, FROM THE COUNCIL.
YEAH, BECAUSE, YOU KNOW, BASICALLY ALL THE, UH, OR I SHOULDN'T SAY ALL OF 'EM, BUT VAST MAJORITY OF THEM ARE AT LEAST ONE UNIT PER, UH, ONE PARKING SPOT PER UNIT.
AND, UH, AND HERE I DON'T, I DON'T, WITH IT BEING A STUDIO OR ONE, UH, OR ONE BEDROOM, HAVING JUST ONE PER, PER UNIT I THINK IS ACCEPTABLE.
UH, SOME OF THE OTHER ONES, WHEN YOU'RE TALKING ABOUT THREE BEDROOM UNITS, UM, ONE PARKING SPACE IS US NOT NECESSARILY PRACTICAL IN, IN THIS DAY AND AGE.
SO UNLESS THERE'S SOME CONCERN, QUESTION.
UM, JUST, UM, CAN, CAN I GET CLARIFICATION IF THE LOT THAT THEY SAID THEY ARE ACQUIRING HAS, UH, HAS BEEN ACQUIRED OR, OR IS THAT UNDER ACQUISITION STILL? YOU'RE TALKING ABOUT THE, UH, SPENDING THE RESOLUTION OOBA YES.
YEAH, I, I DIDN'T HEAR, UM, IF YOU'RE HAVING A YES, SO IT'S PENDING THE, IT'S PENDING THIS RESOLUTION OF THIS, UH, OF THE OUTCOME OF THIS, UH, RFP.
UH, SO UNLESS THERE'S NOTHING ELSE WE CAN TAKE A LOOK AT, UH, SITE FOUR, WHICH IS A AVENUE AND 11TH STREET, ALSO VERY CLOSE TO CITY HALL HERE.
AND, UH, SO THIS ONE LOOKS AT EITHER THREE UNITS, UH, WHICH WOULD BE A FOUR STORY, THREE UNITS, AND, UH, UM, WITH ALL THREE UNITS BEING AT 70% A MI FOR SALE AND THREE BEDROOM UNITS.
AND, UH, THAT WOULD BE THE ONE PROPOSAL.
AND THE OTHER PROPOSAL IS TALKING ABOUT, UH, THREE STORIES, BUT IT BEING 18 UNITS AND WITH TWO OF THE UNITS BEING 40% AT A MI AND THOSE BEING AND, AND BEING, LOOKS LIKE TWO OF THE UNITS BEING FOUR BEDROOMS. AND I THINK THAT'S THE WAY THAT'S READING WITH 37 PARKING SPACES.
AND SO THAT INVOLVES ALL, ONCE AGAIN, ADDITIONAL PROPERTY BESIDES THE CITY PROPERTY TO MAKE THAT ALL WORK.
UM, SO THAT WOULD BE RIGHT HERE ON A AVENUE, WHICH IS A VERY TIGHT, UH, STREET TO SAY THE LEAST.
AND, UH, UM, AND ONCE AGAIN, PARKING AT A BIG PREMIUM DOWN THROUGH THERE.
AND, UH, UM, ANY THOUGHTS ON THAT ONE? JUST SIMILAR TO THE, UH, LAST ONE, I JUST, UM, AGAIN, I APPRECIATE OOBA FOR IN THE SAN AND ANDREAS REAL ESTATE GROUP FOR SUBMITTING THE PROPOSAL.
UM, UM, AND, UH, I, I MEAN, KIND OF INTERESTED IN THE CONCEPT IS JUST, UM, THE REAL, THE REALITY OF THE, UM, ACQUISITION OF TWO ADJACENT PARCELS AND, UM, JUST THE DIFFICULTY THERE AND THE DELAY THAT WOULD BE CAUSED BY, YOU KNOW, GOING, GOING THAT ROUTE IS JUST CONCERNS ME.
SO BOTH PARCELS HAVE BEEN, UH, PROPERTY OF TUMBA
YOU, YOU SAY THAT YOU ALREADY, YOU ALREADY HAVE ACQUIRED THOSE OTHER PARCELS? YES, YES.
WE, I, WE'VE BEEN OWNING THEM SINCE 2017, THOSE TWO PARCELS THAT ARE ADJACENT TO THE CITY PARCEL.
THAT IS, THAT IS A LITTLE DIFFERENT.
WELL, MAYBE THAT'S SOMETHING WE CAN GIVE FURTHER.
I DON'T KNOW CONSIDERATION TO, IF THAT'S THE CASE.
SO THERE'S STILL OTHER CONCERNS I HAVE WITH, UM, FINANCIAL CAPACITY, BUT I, BUT IF THAT CHANGES THINGS A A BIT, IF, IF THEY'RE, IF OOBA, UM, OWNS THE TWO ADJACENT, UH, PARCELS.
SO THAT'S, UM, YEAH, I'M OPEN TO THE CHAIR.
SO I THINK THAT WOULD BE A, UH, REPORT FROM STAFF WHEN THEY COME BACK.
UM, YOU KNOW, I'M AN, AN UPDATE ON THIS, UM, ON THIS, UH, APPLICATION.
[02:35:01]
SO THEN IT'S CLEARER ON PAPER.AND, UH, SO THE ADDITIONAL LOTS THAT YOU'RE TALKING ABOUT, THE TWO ADDITIONAL LOTS, THOSE ARE, I'M TRYING TO SEE, THEY'RE 32 EAST PLAZA BOULEVARD.
I'M SORRY, WHAT? 32 EAST PLAZA BOULEVARD, AND A EMPTY LOT THAT IS ADJACENT TO THE CITY LOT ON A AVENUE.
UM, AND I, I LIKE THE RENDERINGS.
AND I DO LIKE THAT THEY ARE, UM, A ALLOWED FOR A LOT MORE PARKING, UH, A LITTLE OVER TWO, UH, TWO SPOTS PER YEAR.
IT'S YOUR FAVORITE TOPIC, MAYOR.
IT IS, BECAUSE THAT'S, I'M KIDDING.
IF YOU LOOK AT OUR CITY COMPLAINTS ON OUR, WE GET THESE, YOU KNOW, PEOPLE SEND IN COMPLAINTS ABOUT EVERYTHING IN THE CITY, AT LEAST 50% OF 'EM ARE ABOUT PARKING.
MAYOR'S THINKING ABOUT QUALITY OF LIFE.
AND, UH, UM, MAYOR, UM, MR. ALEX HAS COMMENTS.
UM, AM I OKAY? UH, SO ONE OF THE, ONE OF THE DEFINING DIFFERENCES, UH, AS IT RELATES TO PARKING, UH, OUTSIDE OF THE FACT THAT OUR PROJECT ALSO OFFERS MORE PAR PARKING IS THAT FROM A CIRCULATION STANDPOINT, THE ACCESS OFF FOR ALL OF THE UNITS IS COMING OFF OF, UM, PLAZA, NOT A, SO, NOT OFF THE AVENUE.
AND SO IF YOU, YOU KNOW, IF YOU THINK ABOUT THE, THE BURDEN TO A STREET THAT'S REALLY NOT DESIGNED FOR THAT MUCH HEAVY TRAFFIC, VEHICULAR TRAFFIC, UM, THE ACCESS TO OUR, OUR PROJECT IS IN THE APPROPRIATE PLACE PER THE GRID OF THE CITY AND WHERE THE CITY GRID IS TRYING TO CHANNEL ITS VEHICULAR VOL, YOU KNOW, VOLUME.
AND SO THE, THE, YOU KNOW, IF YOU'RE THINKING ABOUT THIS PROJECT, YOU'RE GETTING SCALE, BUT YOU'RE ALSO GETTING SCALE IN A MANNER THAT MAKES IT, UM, IT, YOU KNOW, ALIGNED WITH THE EXISTING DESIGN OF THE CITY AND ITS INFRASTRUCTURE AND, AND THE QUESTION OF THE COUNCILMAN.
UM, SO WE HAD CONSTRUCTION BEATS FOR BOTH PROJECTS.
THE TOWER ON ROOSEVELT AND 11TH WAS AROUND $60 MILLION, UM, DEVELOPMENT AND, UM, AROUND 10 TO $11 MILLION.
SO FINANCIALLY IT'S, UH, MUCH MORE, UM, EASIER DEVELOPMENT ON AVENUE.
WELL, I, I'LL SAY THIS SEEMS, UM, MORE LIKE A, UM, UM, MORE DETAILED PROPOSAL.
I WAS GONNA SAY REALISTIC, BUT DETAILED PROPOSAL THAN THE OTHER ONE.
UH, QUESTION IS THE, FOR THE PARKING, ARE THERE UNITS ALSO ON TOP OF THE PARKING? IS THAT HOW IT'S, UH, DESIGNED AS WELL? OH, YES.
THE ONES ON, THE ONES ON HAPPY, THAT'S, THAT REPRESENTS, YEAH.
IF I MAY, UH, CAN WE GO BACK ONE SLIDE, UH, TO THE DEVELOPERS? I JUST WANT TO MAKE SURE THAT WE HAVE IT CLEAR.
THE SITES THAT YOU OWN, UM, THEY ARE ALL PICTURED OF HERE.
UH, THAT'S WHAT'S SHOWN ON THE SCREEN OF, AS FAR AS SITE CONTROL, THE, THE TWO THAT YOU REFERENCED? YES, IT'S CORRECT.
THE, THE ONE ON 32 EAST PLAZA BOULEVARD IS A LARGE LOT.
AND THEN, UH, THERE IS A SMALL LOT ON A AVENUE.
SO ALL LOTS, UH, THAT WE HAVE DISCUSSED OR THAT YOU REFERENCED, UH, OWNERSHIP OF, THEY ARE PICTURED, UH, ON THE SCREEN, IS THAT CORRECT? YES.
AND THEY'VE BEEN, UH, ARE ON OUR PROPERTY SINCE I THINK ONE IS 2016, AND THE OTHER ONE WE ACQUIRED IN 2017.
SO WE, WE WON'T HAVE AN ITEM TO BE COMING, UH, TO COME BACK TO COUNCIL WITH.
UM, NEXT, I JUST WANT TO ASK, UM, SO WE HAVE DISCUSSED, UM, A LOT ABOUT PARKING AND, UH, WHAT WE HAVEN'T TALKED ABOUT IS, UM, UH,
[02:40:01]
AN UPDATED PER FORMA.UM, WOULD YOU HAVE THAT, UM, HAVE YOU WORKED ON THAT ANYMORE SINCE, UM, SUBMITTING IT? I MEAN, UH, THE, THE PRO FORMA HASN'T BEEN WORKED ON SINCE SUBMISSION BECAUSE WE REALLY HADN'T HAD ANY SUBSTANTIAL COMMUNICATION WITH THE CITY SINCE SUBMISSION.
UH, DO YOU STILL PLAN ON MOVING FORWARD WITH THIS DEVELOPMENT MINUS, UH, WITHOUT THE CITY'S PROPERTY? UH, IT COULD WORK.
WE DO HAVE, UH, WE DO HAVE ANOTHER, SO OUR ARCHITECTS PRESENTED US THAT OPTION THAT, UH, IT WORKS WITHOUT, UH, WITHOUT THAT, UH, CITY PARCEL.
UM, IT MAKES IT MORE, UM, ROOMY, UH, WITH THE CITY PARCEL MM-HMM
BUT WE COULD MAKE IT WORK, RIGHT, ALEX? IF, IF I DON'T REMEMBER WE YEAH, THAT IS CORRECT.
IF, IF YOU, IF YOU LOOK AT THE, THE, THE PLAN, THE SITE PLAN THAT'S ON THE SCREEN NOW MM-HMM
YOU CAN SEE, UH, VERY FAINTLY THE PROPERTY LINE DASH THAT THAT'S THERE, THERE'S THE TWO PARCEL, THERE'S THE SORT OF SHAPE OF THE LARGER OUTLINE OF THE ASSEMBLAGE, BUT THEN IF YOU'RE LOOKING AT THE SCREEN, THE TWO DARKER RED UNITS ARE, ARE SITUATED, UH, LARGELY ON THE CITY OWNED PARCEL, AND THERE'S ONE LIGHTER PINK UNIT, UM, THAT STRADDLES THAT PROPERTY LINE.
WHAT ANTONIO IS REFERENCING IS THAT IF, IF, IF THE CITY PARCEL IS NOT INCLUDED IN THE ASSEMBLAGE, UM, THE DEVELOPMENT CAN, YOU KNOW, LARGELY CAN HAVE, UH, CAN STILL FUNCTION IN, UM, NET OF THE, YOU KNOW, THE TWO OR MAYBE THREE UNITS THAT, THAT, UH, WE WOULD LOSE IN THE, UM, PROGRAM.
BUT, UH, YOU KNOW, IF YOU INCLUDE IT, YOU KIND OF, THE CITY PARTIALLY YOU GET TO, UM, YOU KNOW, WITH THOSE LAST TWO UNITS, YOU GET TO A, UH, YOU KNOW, A LITTLE BIT MORE OF A CONTINUITY MIDBLOCK ALONG AVENUE A WITH THE, UM, HISTORIC CHARACTER OF, UH, UH, OF AVENUE A AT LARGE.
LIKE, THAT'S, THAT'S WHAT WAS IN THE, ONE OF THE RENDERINGS THAT WAS SUBMITTED WITH OUR PROPOSAL MM-HMM
UM, THE ARCHITECTURAL INTENT TO CREATE SOME CONTINUITY BETWEEN OKAY.
SOME HISTORIC ASPECTS OF, SO I'M GONNA PASS THE MIC TO LENNY NOW.
HI, THIS IS LENNY COVINO WITH KAISER MART, AND I JUST WANTED TO CONFIRM THAT WITHOUT THE CITY PARCEL, WHAT WOULD BE DEVELOPED WOULD BE A RENTAL PROJECT, AND THAT WOULD BE ALL AT MARKET RATE.
IS THAT CORRECT? UH, WELL, UH, THAT'S NOT A DECISION THAT'S BEEN FINALIZED.
WE HAVE NOT, WE HAVE NOT MADE, YEAH.
WE HAVE NOT MADE THAT DECISION.
UH, YET, LIKE WE ARE ARE YOU ATTEMPTING TO GET US TO LIKE I'M NOT THAT THERE WAS IN PART, I MEAN, THAT, THAT'S NOT A PROPOSAL THAT WAS SUBMITTED.
WE WERE SUBMITTING A PROPOSAL WITH THE CITY PARCEL, SO WE WOULD HAVE TO EVALUATE, WE'RE NOT GOING TO ANSWER THAT QUESTION ON THE FLY.
NO, I WAS JUST THINKING, UH, JUST FOR THE CITY'S UNDERSTANDING OF WHAT WOULD BE ANTICIPATED TO BE DEVELOPED IF THE CITY PARCEL WAS NOT, UM, AVAILABLE.
UM, LOOKING AT THIS, UM, THROUGH A PRACTICAL STANDPOINT, BECAUSE THIS, THIS, UM, DEVELOPER, UM, OWNS SOME PARCELS IN THE AREA, I THINK IT'S, IT, IT'S PRUDENT FOR US TO EXPLORE MORE, THE STAFF COULD EXPLORE MORE WITH THEM AND SEE HOW, UM, THIS WILL EVOLVE, UM, BASED ON, YOU KNOW, I MEAN THE FINDINGS THAT, UM, THIS DEVELOPER WILL, WILL CONSIDER TOO.
UM, YOU KNOW, I MEAN TO PROVIDE TO OUR STAFF YES.
LIKE, SO THE PROFORMA THAT SOME OF THE FINANCIAL, UH, BACKING, BUT HONESTLY THE, THE, THE CONCEPT, UH, I DO HONESTLY, I LIKE THIS CONCEPT, UH, BETTER.
SO YEAH, ON THE AVENUE AND, UH, WHERE THIS WOULD NOT PUT THE IMPACT ON THE AVENUE, THE IMPACT WOULD GO OUT ON THE PLAZA THAT'S DESIGNED FOR IT.
UH, ANYWAY, SO WE'LL GIVE YOU A LITTLE BIT OF GUIDANCE ON THAT ONE.
LET'S TAKE A LOOK AT, UH, LAMB'S PLAYERS THEATER SITE.
[02:45:02]
OUCH.IS THAT WHAT I HEARD? YES, YOU HEARD.
UH, NOW THIS ONE, OF COURSE HAS, UH, ONCE AGAIN HAS TWO DIFFERENT PROPOSALS.
AND THESE TWO PROPOSALS IS WITH CASA MA AND WITH, UH, COMMUNITY HOUSING WORKS.
UH, COMMUNITY HOUSING WORKS, JUST DEALING WITH THE SITE OF, UH, THE LAMBS PLAYERS THEATER BY ITSELF, UH, CASSA F DEALING WITH LAND THAT THEY ALSO OWN ADJACENT TO IT, UH, IMMEDIATELY TO THE SOUTH OF IT THERE.
AND, UH, UH, SO THAT WOULD BE A, UM, BUT WHEN YOU'RE TALKING ABOUT YOUR NUMBER OF UNITS, YOU'RE ONLY TALKING ABOUT THE ADDITIONAL UNITS THAT WOULD BE NOT ARE YOU TALKING ABOUT FOR YOUR ENTIRE SITE? THE ENTIRE, THE ENTIRE SITE.
SO, SO RIGHT NOW, RIGHT NOW, HOW MANY UNITS DO YOU HAVE ON THE EXISTING PROPERTY THAT YOU HAVE? RIGHT NOW WE HAVE A TOTAL OF 26.
SO YOU'RE GONNA HAVE FIVE STORIES.
THE SAME AS, AS FAR AS ON STORIES WISE.
UH, THE OTHER PROPOSAL IS FOR FIVE STORIES, BUT YOU'RE ADDING A MUCH MORE, UH, MUCH LARGER AMOUNT OF LAND.
AND THE, UH, AND YET THEY'RE TALKING ABOUT 62 UNITS JUST ON THE LAMBS PLAYER SITE.
AND YOU'RE TALKING ABOUT 60 UNITS ON YOUR, THE, YOUR EXISTING PROPERTY AND THE LAMB'S PLAYER.
I JUST WANT, JUST SO WE, WE, WE KNOW WHAT WE'RE COM WHAT WE'RE LOOKING AT HERE.
AND IF I CAN SPEAK TO THAT, UM, WE'RE FOUR AND THREE AND FOUR STORIES FOR THE PROJECT.
UM, WHEN IT'S ON PLAZA BOULEVARD, WE'RE AT FOUR STORIES, AND THEN THERE'S A SLOPE TO THE TOPOGRAPHY, RIGHT? YEP.
SO IT GOES DOWN AND IT'S MORE RESIDENTIAL AS YOU GO DOWN E AVENUE.
AND SO WHEN YOU GET TO THAT PORTION, IT'S THREE STORIES.
UM, BUT WE DO HAVE A LOT OF OUTDOOR SPACE, AND ONE OF THE THINGS IN OUR PROPOSAL IS A POCKET PARK SLASH THEATER, OUTDOOR THEATER SPACE THAT'S APPROXIMATELY 6,000 SQUARE FEET OR SO.
AND SO WE'RE ACCOUNTING, WE DON'T HAVE THE DENSITY SPREAD ACROSS A LARGER SITE, BUT WE HAVE A LOT OF OUTDOOR SPACE TO SORT OF, UM, MAKE IT A LITTLE MORE LIVABLE.
BEFORE WE GO FARTHER, I'M GOING TO JUST ASK MAYOR.
WELL, YEAH, I, I KNOW, BUT SOMETHING WE NEED TO DO SOMETHING HERE.
UH, MAYOR, I JUST WANTED TO, UH, FULL DISCLOSURE, UM, I AM VERY FAMILIAR WITH CASA FAMILIARS PROJECT.
UM, I HAVE A PROPERTY THAT THEY ARE DEVELOPING THAT SAME PROJECT THEY ARE PROPOSING HERE, UM, THAT INCLUDES A, UH, COMMUNITY LAND TRUST.
AND SO, UM, IT'S RIGHT NEXT TO THE PROPERTY THAT I HAVE IN SAN Y CIRO.
YOU OKAY? SHE JUST WANTED TO MAKE A DISCLOSURE.
I WANNA MAKE SURE I CUT THAT ON THE RECORD NOW THAT OKAY.
I JUST WANTED TO ADD, UH, YOUR QUESTION REGARDING THE NUMBER OF UNITS YIELDED FROM ONE PROPOSAL TO THE X.
THE NEXT, THE CAA FAMILIAR PROJECT, 30% OF THE UNITS ARE THREE BEDROOM UNITS, UH, WITH ADDITION TO ONE AND TWO BEDROOMS. WHILE THE COMMUNITY HOUSING WORKS PROJECT HAS STUDIOS AND JUNIOR ONE BEDROOMS, AS WELL AS ONE BEDROOMS, SO MUCH SMALLER UNITS SO THAT YOU CAN GET MORE UNITS ON THE SITE.
AND CAN I JUST SAY, I REALLY, UH, I REALLY LIKE THAT SMALLER UNIT PROPOSAL BECAUSE THERE'S A LOT OF, UH, EL ELDERLY, THERE'S A LOT OF, UM, YOUNG FOLKS, UM, LIKE FROM 18, UH, IN TWENTIES AND THOSE STUDIOS IN THOSE ONE BEDROOM UNITS BECAUSE THERE'S SO MANY, LIKE TWO AND AND THREE BEDROOM THAT IT'S, UM, SO THAT HELPS WITH, UM, FOLKS THAT ARE JUST ENTERING INTO THAT.
SO I, I REALLY APPRECIATE THAT UNIT MIX.
UH, SO SOMETHING THE RFP DID ASK FOR WAS FOR, UM, UNITS TO HOUSE A LARGER FAMILIES.
SO, UH, THEY DID FULFILL THE RFP, UH, REQUIREMENT FOR THAT.
UM, SO, OKAY, SO THEY'RE, THEY'RE, UM, WE'RE TALKING ABOUT CASA MAR HERE ON THIS CASE.
THERE'S 68 UNITS, OR I'M SORRY, 60 UNITS.
UM, AND AS SAY BOTH OF 'EM ARE TALKING ABOUT 49% A MI AVERAGE, UH, BUT THEIRS IS 60 UNITS AND THEIR'S IS ONE, TWO, AND THREE BEDROOMS WHERE THE OTHER ONE IS STUDIOS, ONE'S AND TWO BEDROOMS. AND THEY COULD YIELD MORE UNITS IF THEY, UH, DECREASE, UH, THEIR UNIT SIZE.
UH, SO THAT COULD BE A ASK OF THE COUNCIL IF THEY WANTED TO SEE SMALLER UNITS.
UH, JUST MAYBE JUST KEEPING IN MIND THAT WE DO HAVE SOME LARGER FAMILIES IN THE CITY THAT, UM, MAY, MAY WANT, MAY SEEK TO, UH, BECOME FUTURE HOMEOWNERS.
UH, SO, BUT I'LL LEAVE THAT TO THE COUNCILS.
AND LET ME ASK, WHAT IS THE 883, UH, SQUARE FOOT COMMERCIAL
[02:50:01]
SPACE? WHAT IS PROPOSAL ON THAT? SO ALONG PLAZA BOULEVARD, UH, WE DEDICATED SPACE, UH, THAT FRONTS PLAZA FOR, UH, FUTURE COMMERCIAL SPACES.AND THOSE, UM, RIGHT NOW THEY'RE SET UP AS SMALLER SORT OF INCUBATOR SPACES FOR THE SMALL BUSINESSES TO USE AS A STARTUP SPACE, OR THEY CAN, CAN BE COMBINED FOR A LARGER SPACE.
UM, ONE CONCERN I HAVE ON EITHER ONE OF THE TWO PROPOSALS JUST ABOUT THIS SITE IN GENERAL IS THAT YOU'VE, YOU'VE GOT THE PROPERTY OUT THERE ON THE CORNER OF PLAZA AND E, WHICH IS THE, UH, LAMBS PLAYER SITE, BUT YOU GOT WALMART NEXT TO IT, BUT THERE'S ONE HOUSE BETWEEN THEM.
AND, YOU KNOW, I REALLY WOULD LIKE TO SEE US GET SOME KNOWLEDGE ABOUT WHAT A LONG-TERM DETERMINATION WOULD BE WITH THAT HOUSE.
'CAUSE I HATE TO PUT, YOU KNOW, YOU GOT WALMART, YOU GOT THIS ONE HOUSE, THEN YOU'VE GOT THIS RIGHT UP AGAINST IT.
AND, UH, UH, AND TO SEE WHAT WOULD BE, YOU KNOW, FUTURE OPPORTUNITIES TO ACQUIRE THAT SITE TO MAKE THIS A MORE COMPLETE PROJECT.
WE HAVE REACHED OUT TO THE OWNER AND WE ARE IN COMMUNICATIONS WITH THEM ABOUT THAT.
TO, TO ME, MY DECISION ON THIS PRO PROJECT BY EITHER, EITHER PARTY WOULD BE, UH, YOU KNOW, CLARIFICATION ON, ON THAT WOULD BE KIND OF INSTRUMENTAL TO ME, UH, BECAUSE OTHERWISE WE'RE ISOLATING THAT ONE HOUSE AND WHICH ACTUALLY COULD MAKE FOR A MORE COMPLETE PROJECT IF AT SOME POINT THAT HOUSE WAS A PART OF, OF THIS PROJECT.
WHAT'S THE SQUARE FOOTAGE OF THAT MARE? I'M SORRY, WHAT? OF THE HOUSE? WHAT'S THE SQUARE FEET OF THAT HOUSE OR THE LOT? REALLY? FOR THE LOT.
OH, FOR THE LOT OF THE HOUSE RIGHT NEXT TO IT.
BECAUSE RIGHT ACROSS FROM THAT LAST THEATER IS, I CAN'T SEE WHAT WE'RE TALKING ABOUT.
IT'S RIGHT ACROSS FROM CENTRAL ELEMENTARY SCHOOL.
IT'S ACROSS FROM CENTRAL ELEMENTARY.
IF YOU'RE, IF YOU'RE LOOKING THERE IT IS THAT, SEE WHAT LOOKS LIKE A BLUE UP THERE IN THE, IN THE TOP RIGHT HAND CORNER IN THE TOP RIGHT CORNER.
YEAH, THAT'S THE HOUSE RIGHT THERE.
SO IT'S ABOUT 5,000 SQUARE FEET.
IT'S PROBABLY ABOUT A 5,000 SQUARE FOOT, I WOULD IMAGINE.
AND, UH, UM, BUT DOESN'T CASA FAMILIAR ALREADY? DOESN'T CASA FAMILIAR ALREADY OWN THE LAND ADJACENT TO IT? NOT THAT HOUSE? YES.
THEY THEY OWN, THEY OWN THE PROPERTY TO THE SOUTH, WHICH IS WHERE ALL YEAH, WHERE, WHERE THEY ZEROED IN RIGHT THERE.
AND SO THAT, YOU'D BE TALKING ABOUT TAKING THOSE OUT AND THEN REBUILDING UP AND IT WOULD BE KINDA LEVELED OFF BECAUSE THE TOPOGRAPHY DROPS DOWN.
IN OTHER WORDS, I THINK YOU SAID FOUR STORIES, AND THEN YOU'VE GOT FIVE STORIES AT THE LOWER LEVELS.
SO THREE, AS YOU WORK YOUR WAY, THREE UP THE TOP, FOUR DOWN BELOW FOUR AT PLAZA BOULEVARD.
AND AS YOU WORK YOUR WAY DOWN E AVENUE, UHHUH
AND WE HAVE, UH, TOWNHOUSE MODELS THE OTHER WAY.
SO FOR CASA, I, I HAD MENTIONED BEFORE KIND OF THE CULTURAL HISTORY OF, OF THE SITE IN LAMBS THEATER.
UM, WE DON'T HAVE TIME TO GO INTO THE HISTORY OF LAMBS THEATER.
I ACTUALLY DON'T KNOW MUCH ABOUT IT BESIDES THAT WE BURNED IT DOWN.
UM, BUT, UM, WHAT, I THINK YOU HAD A THEATER, UH, DID WHEN I MENTIONED THAT IT SOUNDED LIKE YOU GAVE AN AFFIRMATION.
SO CAN YOU SPEAK ABOUT THAT AS AN AMENITY? LIKE WHAT THE PROPOSAL OR CONCEPT IS? TURN
IS THERE ANOTHER PLAN? IS THERE ANOTHER ONE? YEAH.
UM, SO IT'S, IT'S A LITTLE BIT HARD TO SEE HERE, BUT TOWARDS THE BACK OF THE SITE, UM, THERE'S A BIG OPEN SPACE, UM, AS YOU GO DOWN E AVENUE.
AND SO WE'RE CONSIDERING THAT A POCKET PARK, AND WE'RE ALSO GONNA INSTALL A STAGE.
THE IDEA IS TO INSTALL A STAGE, UM, AND THEN IT CAN ALSO ACT AS A SORT OF OUTDOOR THEATER.
UM, AND THAT'S SORT OF THE ZONE THAT I WAS, UM, ESTIMATING AT ROUGHLY ABOUT 6,000 SQUARE FEET.
AND SO THEY COULD HAVE, UH, EVENTS THERE.
YEAH, I MEAN, IF WE MOVE MORE FORWARD WITH THAT CON UH, WITH, UM, YOUR PROPOSAL, I, I WOULD LIKE, OR ANY OF THE DEVELOPERS, I, I WOULD LIKE THAT HONORING LAMB'S THEATER AND SEEING WHAT CAN BE INCORPORATED.
BUT I KNOW THEATERS ARE, YOU KNOW, MAYBE DON'T GENERATE ENOUGH REVENUE OR STUFF, SO I, I'M COGNIZANT OF THAT.
BUT YEAH, I WANTED TO ADD THAT CASA FA MIL DOES HAVE A BLACK BOX THEATER IN SAN CIRO, SO WE DO HAVE EXPERIENCE IN THAT, IN THAT SPACE.
AND LAMB'S PLAYERS THEATER WAS ORIGINALLY A CHURCH BEFORE.
IT WAS BEFORE THEY MADE IT INTO A THEATER.
[02:55:01]
OUR BLACK BOX THEATER WAS A CHURCH IN SAN.UM, SO I HAVE QUESTIONS ABOUT THE LAND ACQUISITION.
UM, IF I UNDERSTAND CORRECTLY FROM THE, UM, COMMUNITY HOUSING WORKS, THE, THE LAND WOULD BE SIMILAR TO THE OTHER PROJECTS WE'VE SPOKEN OF ALREADY.
SO FOR CASA F, WHAT IS THE EXPECTATION FOR THE, THE CITY LAND? UM, CAN YOU SPEAK TO THAT? TO, I, I WOULD NEED YOU TO COME TO THE MIC.
LAND CONTRIBUTED BY CITY? YEAH.
I'M NOT AS FAMILIAR WITH THIS PROJECT.
I WORK ON THE AVAN ONDO PROJECT.
UM, AND I'VE JUST BE RECENTLY BECOME MORE FAMILIAR WITH THIS, UM, WITH THE AVAN ONDO PROJECT, AND I BELIEVE THIS WILL BE THE SAME STRUCTURE, IS THE LAND WAS DONATED TO THE COMMUNITY LAND TRUST THAT WAS SET UP BY CASA.
AND THEN, UM, THEN IT WILL BE, UM, IT, THE, THE LAND TRUST ALLOWS IT TO BE AFFORDABLE ACTUALLY FOR 99 YEARS VERSUS 55 YEARS.
UM, AND BECAUSE THE, WHEN WE ACTUALLY SELL THE UNITS, WE'LL JUST BE BASICALLY CONING THE UNITS OUT, UM, AND KEEPING THE LAND, SO.
SO IT WOULD REQUIRE THE CITY TO DONATE THE LAND? CORRECT.
UM, AND THEN I HAVE SEVERAL OTHER QUESTIONS, IF THAT'S OKAY.
UM, SO IF I UNDERSTAND CORRECTLY, THE PROFORMA THAT'S IN OUR PAPERWORK, UM, COVERS ONLY THE RENTAL PHASE OF THE DEVELOPMENT.
UM, IS THERE A WAY TO GET THE FINANCIAL MODEL FOR THE HOME CONVERSION PHASE? I, I, HANG ON A SECOND.
UM, WE HAVE GEORGETTE ON THE LINE.
SHE WANTS TO CHIME IN ON THAT.
UM, YEAH, AND I'M SORRY I DIDN'T CATCH THE, THE FIRST QUESTION.
COUNCIL MEMBER, UH, MELINA, BUT RELATED TO THE, RELATED TO, UM, THE HOME OWNERSHIP ASPECT OF THE PERFORM? YES, WE CAN ADD IT.
IT WAS JUST, WE JUST DIDN'T HAVE ENOUGH TIME TO DO ALL OF IT WHEN WE WERE PUTTING THIS PROPOSAL TOGETHER.
BUT WE CAN DEFINITELY EXPAND OR PERFORM A TO INCORPORATE.
UM, BECAUSE I DO HAVE QUESTIONS ABOUT, UM, THIS MODEL, YOU KNOW, IT'S, IT'S PRETTY UNIQUE AND, AND, UM, IT, IT INCLUDES THE PRICE AND, UM, WHO WILL QUALIFY, UM, YOU KNOW, FOR THE HOME OWNERSHIP PART OF IT.
UM, WHAT IS THE ENFORCEMENT MECHANISM TO ENSURE THAT CONVERSION HAPPENS? IS THE CONVERSION MEANT FOR ALL OF THE 60, 62 MM-HMM
OF THE 60 UNITS? IS, IS THAT CORRECT? YES.
CONVERSION IS MEANT FOR ALL 60 UNITS.
SO THE WAY, SO IT IS, UM, MY COLLEAGUE BECKY DID, UH, TALKED A LITTLE BIT ABOUT HER EXPERIENCE WITH AVAN SANDO, AND THIS IS THE SAME, THE SAME BOMB APPROACH, WHICH IS ALL 60 UNITS WOULD BE CONVERTED.
UM, BUT IT'S REALLY UP TO THE, THE TENANT, IF THEY WANNA DO THAT CONVERSION INTO A HOME OWNERSHIP, CA FD WOULD BE WORKING WITH THE HOMEOWNERS TO GET THEM READY FOR THAT CONVERSION IF THEY CHOOSE TO DO THAT.
UH, BUT THE, THE LAND, THE COMMUNITY LAND TRUST, WHICH IS ITS OWN ENTITY THAT WE ARE A PART OF, AND THE BOARD, UM, BUT MOSTLY BEING DRIVEN BY THEIR, THE MOST OF THE BOARD IS OUR RESIDENTS FROM THE EX, UH, FROM THE PROJECT, OR NASH IN THIS CASE WOULD BE LIKE NATIONAL CITY RESIDENTS INCORPORATING RESIDENTS FROM THE PROJECT.
SO THE, THE TRUST HAS ALSO THE ABILITY TO OWN THE UNITS, IF NOT ALL OF THEM GET SOLD BECAUSE, UM, BECAUSE THERE MIGHT BE SOME TENANTS, THEY JUST WANT TO CONTINUE BEING NON TENANTS AND NOT OWNERS.
BUT WE DEFINITELY WORKING INTENTIONALLY WITH THE, THE CURRENT OWNERS IN TERMS OF THE A MI, UH, BECAUSE OF THE FUNDING THAT IS BEING PROVIDED TO US RIGHT NOW, WE'RE WORKING WITH HCD TO ALLOW US TO DO THAT CONVERSION THAT LITECH ALLOWS US TO DO.
UM, IT WOULD BE THE SAME A MI TARGETS.
THE IDEA IS THAT WE'RE WORKING WITH THE TENANTS THAT ARE THERE, THAT WE'RE NOT WORKING WITH THE NEW FAMILIES SOMEWHERE ELSE.
IT'S THE TENANTS THAT ARE THERE THAT WE'RE WORKING WITH TO DO THAT HOME OWNERSHIP TRANSFER, UH, CONVERSION TO.
[03:00:02]
OKAY.UM, AND I, I FEEL LIKE YOU MAY HAVE ALREADY ANSWERED THIS QUESTION.
UM, SO LIKE, WHAT IS IT THAT HAPPENS AFTER 15 YEARS THAT ENABLES THAT CONVERSION? MM-HMM
SO LIKE I SAID, THE PERFORMA INCORPORATES THE, THE, THE, THE END GOAL WOULD BE A HUNDRED PERCENT HOMEOWNERSHIP CONVERSION.
UM, THAT'S, THAT'S OUR END GOAL, RIGHT? BUT LIKE I SAID, IF THAT DOESN'T HAPPEN, THEN THE UNITS, THE OWNERS BECOME THE CLT, UH, THE, THE, THE TRUST THAT WAS CREATED.
AND IN THIS, IN THIS CASE, IF SELECTED AND SUPPORTED BY THE CITY COUNCIL, WE CAN DISCUSS THAT FORMATION OF THE TRUST.
RIGHT NOW UNDER AVAN, SANDRO, THE TRUST IS MADE UP BY, UM, COMMUNITY MEMBERS AND GAA REPRESENT REPRESENTATIVES THAT ARE PART OF THE BOARD.
UH, BUT SO THERE'S NINE MEMBERS.
THE SIX, SIX MEMBERS ARE COMMUNITY FOLKS, AND THREE MEMBERS ARE DESIGNATED BY GAA FD.
BUT THE IDEA IS THAT IN THIS MODEL OVERALL IS REALLY, UH, IT FOCUSES MORE ON EMPOWERING COMMUNITY MEMBERS TO BE KIND OF LIKE THE OVERSEERS AND THE MANAGERS OF THE, OF THE DECISIONS IN TERMS OF WHAT DOES RESALE, WHAT THE RESALE MODEL WOULD LOOK LIKE, UM, AND, AND, AND HOW DOES IT, HOW DOES IT TRANSITION TO PERHAPS EITHER FAMILY MEMBERS OR, UM, ADDITIONAL TYPES OF MEMBERS THAT MIGHT WANNA BECOME OWNERS OF THE, OF THE PROPERTY.
SO THERE IS A LOT OF INTERACTION WITH THE BOARD, UH, BUT THAT, THOSE CONVERSATIONS START MAYBE LIKE IN YEAR 10 TO START PREPPING FOR THAT CONVERSION TO HAPPEN.
I, I HAVE A THOUSAND QUESTIONS, BUT, UM, LIKE, I'M CURIOUS, WHAT, WHAT IS TO HAPPEN IF A FAMILY LIKE DECIDES THAT THEY WANNA MOVE AT YEAR FIVE OR SIX OR SEVEN AND THERE'S A NEW FAMILY THAT COMES IN.
DOES THAT 15 YEARS BEGIN AGAIN FOR THAT NEW FAMILY? NO, THE 15 YEARS IS 15 YEARS BECAUSE THAT'S THE REQUIREMENT FOR LITECH, THE TAX CREDITS THAT WE GET THAT WERE AWARDED.
SO THEY REQUIRE THAT YOU KEEP THE UNIT'S RENTAL FOR 15 YEARS.
YOU CAN APPLY FOR AN EXTENSION.
WE ARE CHOOSING NOT TO CONTINUE THE, THE EXTENSION AS A RENTAL.
UM, THAT AT THAT POINT YOU CAN MAKE A DECISION.
YOU WANNA CONTINUE IT AS A RENTAL OR DO YOU WANNA CONVERT IT AS A HOME OWNERSHIP? WE ARE CHOOSING TO DO THE HOME OWNERSHIP SIDE OF THINGS.
UM, AND SO THAT'S THE PATH THAT WE'RE GOING.
UM, MY, I GUESS MY LAST QUESTION ON THIS TOPIC IS, UM, AGAIN, I THINK YOU JUST ANSWERED IT, IS MY UNDERSTANDING IS THE LOW INCOME HOUSING TAX CREDITS HAVE REGULATORY REQUIREMENTS FOR 55 YEARS.
ARE WE SURE THAT YOU CAN CONVERT TO HOME OWNERSHIP AFTER 15 YEARS? YES, A HUNDRED PERCENT.
THEY ACTUALLY, UH, LITECH ALLOWS FOR A 15 YEAR CONVERSION.
AND WE ARE THE FIRST ONES IN THE STATE OF CALIFORNIA TO TEST THAT, TO ACTUALLY UTILIZE THAT OPTION.
SO WE'VE BEEN WORKING WITH, WITH, UH, WITH, WITH, WITH, WITH THE STATE ON, ON, MOVING FORWARD WITH THAT.
AND WE'RE ALSO WORKING WITH HCD, WHICH IS THE OTHER PIECE OF THE STACKING OF THE FUNDING TO BE ABLE TO LINE UP, UM, ALL THE REQUIREMENTS.
UM, BUT YES, ABSOLUTELY, I'D SAY YES.
AND THEN FOR THE INCOME VERIFICATION OF THE RESIDENTS, DO THEY GET, UM, SOME TYPE OF INCOME CERTIFICATION EVERY YEAR OR JUST THE YEAR THAT THEY ARE GOING TO BE BUYING THE PROPERTY? IT'S EVERY YEAR.
THANK YOU VERY MUCH MS. GEORGETTE.
AND, AND I KNOW THAT YOU CARED ABOUT THIS.
WE'RE ALSO, WE'VE DONE ALL, UH, PROJECTS WITH, UH, PROJECT LABOR AGREEMENT, AND THEY'RE ALL PREVAILING WAGE.
WHAT WAS THAT LAST PART? UH, WE'VE DONE OUR, OUR LAST TWO PROJECTS OF ANAND AND LAS MEDIA.
BOTH WITH PREVAILING WAGE AND, UH, OH, GOOD.
UM, THIS CHART THAT I'M LOOKING AT SAYS PREVAILING WAGE.
SO I DIDN'T HAVE TO ASK MY QUESTION.
YEAH, NO, AND I JUST WANNA ACTUALLY ELABORATE A LITTLE BIT ON THAT IF YOU ALLOW ME.
SO WE ACTUALLY HAVE A PARTNERSHIP WITH THE LABOR, UH, BUILDING TRAITS TO TARGET OUR SOUTH BAY COMMUNITIES INTO THEIR APPRENTICESHIP PROGRAM WITH THE IDEA THAT WE WANT THE FOLKS THAT GO THROUGH THE APPRENTICESHIP PROGRAM THAT ARE FROM SOUTH BAY TO, TO BE HIRED IN OUR PROJECTS,
[03:05:01]
TO PUT THEM TO WORK.SO HOPEFULLY THEY'RE ENTERING INTO A MORE MID MEDIUM, UM, HIGHER INCOME JOBS OPPORTUNITY.
SO WE'VE BEEN VERY ACTIVE ON THAT SIDE OF, OF, OF THE HOUSE BECAUSE WE WANNA UTILIZE OUR DEVELOPER ARM MUSCLE, UH, TO REALLY PUT PEOPLE TO WORK IN HIGHER INCOME JOBS.
THANK YOU SO MUCH FOR ALL OF THAT.
UM, AND WE DO NEED TO MOVE ON TO OUR LAST SITE, SITE SIX, UM, MAYOR.
UM, THE PLAZA METER CENTER SITE.
AND, UH, THAT IS TOWN HOMES, THREE STORIES, 30 UNITS AND, UH, THREE AND FOUR BEDROOM, UM, UH, UNITS THERE.
SO, AND THAT, UH, COMMUNITY HOUSING WORKS IS THE ONLY ONE WHO HAS APPLIED ON THAT ONE.
SO, ANY THOUGHTS, ANYTHING ELSE? MY, MY ONLY QUESTION ON THIS ONE WAS, UH, REGARDING THE PARKING.
DID, WAS THIS ONE, DOES THIS ONE HAVE PARKING? THIS ONE HAS 30, 33 SPOTS FOR 30 UNITS.
AND, UH, THE ONLY THING IS IT IS THREE AND FOUR BEDROOM UNITS.
FAMILY, FAMILY, MORE CARS,
SORRY, YOU MISSED THE WHOLE PARKING.
MARCUS MISSED A PARKING OPPORTUNITY.
ESPECIALLY AT THAT ISOLATED SITE.
UH, ANY ANY MAJOR CONCERNS OR QUESTIONS ON, ON THIS ONE? OKAY.
UM, IF I CAN JUST GO BACK AND, AND YOU GUYS CAN HELP ME ON A LITTLE SUM UP HERE, UM, ON A NUMBER OF THESE ONES.
UH, AND I'M GONNA GO LIKE SITE THREE.
THE, A LOT OF THE CONCERNS, I KNOW WE, THE STAFFS OF RECOMMENDATIONS WITH, WITH COMMUNITY HOUSING WORK, THE CONCERN WAS ON, UH, SO MANY UNITS AND ONLY ONLY FOUR PARKING SPOTS.
SO IF THAT ANYTHING CAN BE, UH, CONTINUED DISCUSSION ON THAT, UM, WITH, UH, SITE FOUR, UH, WITH DISCOVERING THAT THE, UM, I'M GONNA SO CALL IT THE SAN ANDREAS, UH, SITE, UH, UH, PROPOSAL THAT, UH, FINDING OUT THAT THAT WAS, UH, YOU KNOW, MIXED WITH PROPERTY THAT THEY ALREADY OWN AND WASN'T ONE THAT THEY'D HAVE TO ACQUIRE AFTERWARDS, MIGHT WANT TO REEVALUATE ON, ON THE PROPOSAL ON THAT SITE AND GET MORE INFORMATION ON THAT ONE.
UM, ON SITE MAYOR, WHAT, WHAT SPECIFICALLY, UH, DID YOU WANT MORE INFORMATION ON? BECAUSE WE DID CLARIFY THAT, UM, THE, UH, WHAT WAS, UH, SHOWN WAS ALL OF THE, UM, YOU KNOW, WAS, UH, THEY DID OWN ALL OF THE PROPERTY THAT WAS SHOWN.
UM, I DON'T THINK WE, UH, COULD HAVE PROVIDED ANY MORE INFORMATION.
UM, WELL IT, IT SOUNDS LIKE AS IF YOU DIDN'T HAVE A, AS COMPLETE A PERFORMA AS YOU WOULD LIKE, UH, WELL, BECAUSE THEY DIDN'T HAVE THAT INFORMATION AVAILABLE AND THEY STILL DON'T HAVE IT AVAILABLE.
UH, SO WHAT SPECIFICALLY WOULD YOU LIKE FROM THEM? I'D LIKE MORE TIME FOR THEM TO BE, I'D LIKE US TO GET TO CONSIDER THEM AND I WOULD LIKE TO SEE SOME MORE OF THEIR FINANCIAL DOCUMENTS, FINANCIAL BACKING.
I, WHEN I READ THE PROPOSAL, I DIDN'T UNDERSTAND THAT THEY OWNED THAT, UM, ADJACENT SITE, BUT THAT COULD HAVE BEEN MY, UM, MISUNDERSTANDING.
BUT, UM, FOR ME, THAT'S WHAT WHAT I'M LOOKING FOR.
AND YOU KNOW, AS I LOOK AT THAT WITH THEM, THEY WOULD DEVELOP THEIR SITE SEPARATELY, THEN WE WOULD IF HAD THIS OTHER SITE DEVELOP SEPARATELY.
AND THAT'S GONNA PUT AN IMPACT ON A AVENUE.
A AVENUE IS A VERY NARROW STREET AND EVERYTHING ELSE.
UH, SO IF, IF IT IS AT ALL POSSIBLE, IF THEY CAN BE, UH, WE CAN TAKE A LOOK AT THEIR VIABILITY, UH, TO BE ABLE TO NOT ONLY DEVELOP THEIR SITE, BUT THIS ONE IN COM COMBINATION WITH IT, IT WOULD NOT HAVE THAT IMPACT UPON A AVENUE.
UH, 'CAUSE OTHERWISE WE'RE GONNA GET SOME REAL CONCERNS, I THINK, FROM THE PEOPLE THAT LIVE THERE.
SO WITH THAT, WE HAVE, UH, LOOKED AT THEIR, UM, FINANCIAL, UM, VIABILITY OR FEASIBILITY.
WE HAVE LOOKED AT THAT, BUT IF THEY CAN PROVIDE US MORE INFORMATION.
UH, YEAH, THE PROFORMA PROVIDED WAS ONLY FOR THE TWO AFFORDABLE UNITS.
WHAT YOU'RE ASKING FOR IS FOR THEM TO PROVIDE A PERFORMA SHOWING, UM, THE ENTIRE DEVELOPMENT.
[03:10:01]
ONE, AND, AND I KNOW THEY'RE ONLY AFFORDABLE ON TWO UNITS, BUT THEY'VE GOT THEIR PROPERTY WHICH THEY COULD BUILD AND THEY DON'T HAVE TO PUT ANY AFFORDABLE UNITS ON.AND THE OTHER PROPOSAL CALLS FOR THREE AFFORDABLE UNITS.
SO IT'S, IT'S NOT THAT THAT PART IS NOT THAT BIG A DIFFERENCE, BUT, BUT IF WE GET MORE INFORMATION FROM THEM AND WE SEEK OUT MORE INFORMATION TO SEE IF, UH, IF, YOU KNOW, IF THAT WOULD MAKE SENSE.
SO THEIR ENTIRE DEVELOPMENT IS, UH, HOW MANY UNITS, UM, UM, THAT WOULD BE QUITE A BIT OF WORK FOR THEM TO PUT, UH, THAT PERFORMANCE TOGETHER.
AT WHAT TIME, UH, LIKE HOW MUCH TIME DO WE WANNA, UH, GIVE THEM TO PUT THAT TOGETHER? 'CAUSE THAT, THAT MAY TAKE SOME TIME.
SO IF I MAY, UM, BECAUSE WE DO STILL HAVE A CLOSED SESSION AND, UH, WE'RE OVERTIME, SO CAN, DO WE NEED TO MAKE A, A MOTION FOR ALL THIS? AND, AND TIMING WISE TO ANSWER, UH, YOUR QUESTION, QUESTION, ANGELITA, I, I'M OPEN TO STAFF BEING ABLE TO, TO BRING THIS BACK.
AND I DON'T KNOW ABOUT NEXT WEEK BEING FEASIBLE.
SO I, I, AND I KNOW SHELLY HAD SAID WE COULD WAIT UNTIL AUGUST TO DO ALL OF THIS.
AND THERE IS NO MOTION TO MAKE TONIGHT.
WE'RE JUST GIVING SOME DIRECTION AND, YOU KNOW, AND WE DON'T EVEN NEED TO BRING 'EM BACK ALL AT ONE PACKAGE ANYWAY.
AND, BUT I, YOU KNOW, I DON'T THINK THERE'S THAT BIG OF A RUSH, UH, BECAUSE I SAY IT SOUNDS LIKE THERE'S, YOU KNOW, STILL WORK TO BE DONE.
AND, UH, AND THE OTHER CONSIDERATION THAT I WOULD HAVE ON ALL THESE PROJECTS WE'RE GIVING THE LAND.
I MEAN, THAT'S ONE WAY OR ANOTHER, WHETHER IN, IN ONE FORM OR ANOTHER.
UH, AND SO LIMITING THE AMOUNT OF EXTRA CONTRIBUTIONS FROM THE CITY, I THINK IS TO BE GREATLY LOOKED AT AND, UH, BEYOND, BEYOND THAT POINT.
UM, SO, UM, BUT ANYWAY, SO THAT, I KNOW THAT'S GONNA BE DISCUSSION WITH THE DIFFERENT, UH, PROVIDERS.
'CAUSE YOU GOT THREE DIFFERENT, THREE DIFFERENT DEVELOPERS THAT, UH, DEVELOPERS HERE WITH DIFFERENT PROJECTS.
AND, UH, BUT AS I SAY, I, I'M NOT IN A RUSH EITHER.
SO THAT, UH, IF, IF WE HAVE TO WAIT TILL AUGUST BECAUSE WE'RE SHUT DOWN IN JULY, WE HAVE TO WAIT TILL AUGUST.
THAT'S NOT GONNA, UH, YOU KNOW, I, I DON'T SEE US RUSHING THIS THING.
HAS ANYONE ELSE GOT A DIFFERENT VIEWPOINT OR ANYTHING? I THINK THERE'S STILL NO, I THINK I DO WANT TO JUST ADD ONE POINT IS, UM, MAYOR.
WHAT, WHAT WAS, WAS THAT JOSE? HE SAYS HE'S GOT A, HE WANTS TO TALK ALSO.
SO, SO I WOULD ACTUALLY, UH, SUGGEST THAT WE TRY TO KEEP THEM TOGETHER AS MUCH AS POSSIBLE.
I UNDERSTAND BEING CAUTIOUS AND LOOKING AT PROJECTS INDIVIDUALLY, BUT I THINK EVEN FOR THE DEVELOPERS TO MAKE THE PROJECTS PENCIL OUT, THEY MIGHT BE THINKING OF NUMEROUS DEVELOPMENTS INSTEAD OF JUST ONE.
SO I WOULD LOVE TO TRY TO KEEP THEM TOGETHER.
UM, AND ALSO, UH, AGAIN, SEEN AS THIS IS PUBLIC LAND AND PUBLICLY SUBSIDIZED, I WOULD LOVE TO HAVE A PLA ON ALL THE DEVELOP DEVELOPMENT PROJECTS BEING PROPOSED.
UM, AND I UNDERSTAND THAT, UH, JUNE, UH, SECOND MIGHT BE VERY DIFFICULT, BUT I WOULD BE OPEN TO HAVING IT JUNE 16TH DEPENDING ON OUR STAFF.
UH, AND HOW PACKED OUR, OUR AGENDA IS ON THE 16TH OF JUNE.
THE, THE BUDGET IS ON THE JUNE 16TH YES.
I, I, I UNDERSTAND THAT JUNE, I UNDERSTAND JUNE 16TH.
I DON'T THINK WE'RE MAKING ANY MORE CHANGES.
WE'RE JUST GONNA EITHER SUPPORT OR NOT SUPPORT.
SO I THINK MOST OF THE WORK IS GONNA BE DONE FOR THE BUDGET ON THE SECOND AND THE 16TH MIGHT JUST BE A, A VOTE ON SOMETHING THAT WE WILL HAVE DISCUSSED AT THAT 0.3 DIFFERENT TIMES.
UM, YOU KNOW, I HAVE NO PROBLEM KEEPING THE SIX TOGETHER.
UH, BUT I THINK THERE'S STILL, STILL WORKS AND NEEDS TO BE DONE.
UM, AND A LOT OF QUESTIONS BEEN RAISED, SO I I DON'T SEE A A, A MOTION WITH THAT.
MAYBE ON THE, IF THERE IS, UM, IF WE DO COME BACK ON THE 16TH, SO MAYBE WE CAN AT LEAST PHASE IT BECAUSE SIX IS A LOT, JUST GIVEN EVERYTHING THAT'S GOING ON.
SIX IS A LOT ANYWAY, SO I, AND I JUST, I WANT TO GET SOME OF THESE RIGHT.
AND AT LEAST STAFF CAN MOVE ON ON SOME OF THESE AND, AND EXPLORE SOME OF THE FINANCIAL ASPECTS.
SO, BUT I'M, I'M READY TO MOVE OUT 'CAUSE WE HAVE A CLOSED SESSION.
SO DID, IF, IF I MAY, I APOLOGIZE.
UM, SO A, A FEW THINGS I WOULD LIKE TO HEAR FROM OUR LEGAL COUNSEL TO SEE IF THIS DOES, UH, OPEN US UP TO, UM, ANY LEGAL CONSEQUENCES.
UM, AND ALSO FROM OUR DEVELOPER.
AND JUST TO MAKE YOU AWARE, UM, WE ARE AT BUDGETS, UM, WE, UH, FOR OUR DEVELOPER OR FOR OUR CONSULTANT, EXCUSE ME.
UM, SO WE WILL NEED TO GO BACK TO COUNCIL,
[03:15:02]
UH, TO, UM, AMEND OUR AGREEMENT WITH OUR CONSULTANT MM-HMMTO DO ANY MORE WORK GOING FORWARD.
UH, SO THAT WILL TAKE SOME TIME.
UH, BUT WE, WE WERE LOOKING FOR A DIRECTION, UH, AT THIS MEETING.
I WAS NOT AWARE THAT WE WOULD NOT BE GETTING A VOTE, UH, TODAY, UH, TO MOVE FORWARD WITH A ENA PROCESS.
UM, AND SO, UH, SINCE WE WON'T BE GETTING THAT TODAY, I, I JUST WILL SAY THAT, UM, IF WE COME BACK ON THE 16TH, UH, WE, UH, STAFF, UH, DON'T HAVE THE CAPACITY TO, UH, COME BACK WITH A STAFF REPORT.
WE CAN, UM, UH, BECAUSE THE REPORTS HAVE ALREADY BEEN DUE, UM, TO THE CITY CLERK'S OFFICE AND ARE, UM, SO THAT TIME PERIOD HAS, IT'S ALREADY COME, BUT, UM, THAT IS KIND OF WHERE WE'RE STANDING TODAY.
WE, UM, WE ARE LOOKING, WE WERE LOOKING FOR DIRECTION, BUT SINCE WE CAN'T GET THAT TODAY, THEN, UM, COMING BACK ON THE 16TH WITH MORE INFORMATION IS NOT SOMETHING THAT WE'RE GOING TO BE ABLE TO DO.
UH, WITH, UH, OUR, WITH CONTACTING DEVELOPERS.
UH, SO OKAY, WELL THEN LET'S CUT TO THE CHASE THEN, THEN WHY DON'T WE, YOU KNOW, TAKE A LOOK AT TENTATIVELY SAY, LET'S BRING THIS BACK IN AUGUST AND GIVE YOU TIME TO WORK ON IT DURING THE JULY BREAK.
EVERYTHING ELSE, IF YOU CANNOT MAKE EVEN THAT AUGUST DATE, LET US KNOW.
AND, YOU KNOW, AND SO WE'RE NOT GONNA, I DON'T WANT TO, YOU KNOW, I DO NOT WANNA RUSH ON THIS THING AND NOT BE ABLE TO COVER ALL THE, COVER ALL THE BASES.
SO DOES THAT, DOES THAT GIVE YOU ANY CLARIFICATION THEN, BECAUSE WE, WE DON'T WANNA RUSH YOU AND TRY TO SAY GO FOR THE, YOU KNOW, NEXT WEEK OR THE 16TH AND YOU, YOU'RE NOT GIVEN TIME TO EVEN, YOU KNOW, EVEN MAKE THE CONTACTS THAT NEED TO BE MADE.
AUGUST, AUGUST WORKS AND THEN WE'LL HAVE THAT OPPORTUNITY TO SORRY, SORRY.
COULDN'T SEE, I SEE WHERE THE VOICE COME FROM.
SO THAT'LL GIVE US THE OPPORTUNITY TO LOOK AT ALL, ALL, ALL THE DIFFERENT FACETS OF THE DECISIONS THAT YOU'LL HAVE TO MAKE.
AND, AND, AND LET ME JUST, JUST SAY FOR ONE THING, I KNOW THAT MR. NTO BROUGHT UP SOME QUESTIONS AT THE BEGINNING.
UH, A COUPLE OF THINGS BEING THAT THIS, THE REASON THIS IS COMING UP NOW, THIS HAS BEEN, THIS HAS STARTED IN 23 AND IT'S BEEN GOING THROUGH THE PROCESS AND WE PUT OUT RFQ TO, TO BRING ON THE CONSULTANT.
THESE WERE A RESULT OF THE RFPS.
THAT'S THE REASON WE'RE DEALING WITH THEM AT THIS STAGE.
AND IT HAD NOTHING TO DO WITH THE BUDGET OR ANYTHING ELSE ON THAT LINE OR THE TIMING OF THAT.
THE OTHER THING, THE OTHER THING BEING THE QUESTION IS, YOU KNOW, WHY ARE WE NOT JUST SELLING THESE PROPERTIES, YOU KNOW, THE CITY PROPERTY.
WHY DON'T WE JUST SELL IT? BECAUSE THESE ARE SURPLUS LANDS.
AND ACCORDING TO THE STATE SURPLUS LANDS ACT, UH, WHEN WE HAVE SURPLUS LANDS LANDS, THE, THE FIRST PEOPLE THAT WE HAVE TO HAVE THE PROVIDE THEM TO IS TO BASICALLY TO ORGANIZATIONS FOR, UH, BUILDING HOUSING.
AND SO THAT'S, YOU KNOW, IT WE'RE, WE'RE KIND OF HANDS ARE TIED ON THAT.
SO HOPEFULLY, HOPEFULLY THAT'LL ANSWER THOSE QUESTIONS.
WITH THAT, UH, IF, IF WE ARE, UNLESS THERE'S SOMETHING ELSE,
[6. CLOSED SESSION]
I'M GONNA MOVE US INTO CLOSED SESSION.WITH THAT, I'M GONNA TURN THIS OVER TO OUR CITY ATTORNEY AND TO, UH, UH, MOVE US INTO CLOSED SESSION.
TONIGHT, UM, ITEM 6.1, PUBLIC EMPLOYMENT.
UM, THE POSITION WE'LL BE DISCUSSING TONIGHT IS THE CITY MANAGER.
UM, WE'RE GOING INTO CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 5 4 9 5 7 B ONE.
WE ARE OUT OF, UH, CLOSED SESSION.
I AM GOING TO, UH, TURN IT OVER TO THE CITY ATTORNEY.
THE, UH, TODAY THE CITY COUNCIL MET IN CLOSED SESSION FROM 7 28 TO 8 25.
UM, ALL COUNSEL WERE PRESENT, UM, AT THE BEGINNING OF THE MEETING.
COUNCIL MEMBER RODRIGUEZ LEFT AT ONE MOMENT, 7 45.
UM, THE COUNCIL WAS ALL PRESENT AND THE COUNCIL TOOK NO REPORTABLE ACTIONS.
ADJOURN INTO OUR NEXT REGULAR MEETING, WHICH WILL BE NEXT TUESDAY.