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Agenda - Agenda Packets - Regular Meeting 7/6/2006
REDEVELOPMENT OPERATIONS MANAGER STEVEN PASAROW ENDA GULAR MEETING OF THE SAN JACI(NTO CITY COUNCIL JULY 6, 2006, 7 "00 p.m San Jacinto Unified School. District Board Room 45;South San Jacinto AvenueSan Jacinto, California Nowis the time for:the public to address` the :Council'on.any subject within' the jurisdiction of the City" Counci/not/istedon the;agenda. :Min. -illation of three:(3) minutes shall be set for each person 'desiring'to address the city Councih anager's previous month's public comment report / City Manager, NSENT`CALENDAR The matters listed; under" Consent Calendar -are considered routine and;will be:'enactedby one motion by City Council Members in the form listed. There wilfbe no separate discussion on these items prior to the motion unless members of the City Council; staff or the public: requests s specified item be> removed and/or "discussed If an:item is pulled, it will be heard at the endof number '5. Staff Reports.'; Warrants at 07/06/06 / Approve / Finance Director 3.2 Action Minutes June 15, 20061 Approve l City Clerk Treasurer's Report May 31, 2006 / Approve /Finance Director Ordinance No.;06-16 - Tentative Tract Map No. 32574 (TTM 32574) to facilitate, a residential developmentof:.131 single-family lots located east of Lyon Avenue between DeAnza Drive and Cottonwood Avenue /'Approve second reading and adopt Ordinance No. 06-16 approving Change of Zone 2- 06 based on Planning Commission's Conditions of Approval and: by further y Council Agenda July 6, 2006 Paden of 6 motion read by title on An Ordinance of the, City Council of the City of San Jacinto, California, approving a Change of Zone of Tract 32574 from Residential Agriculture Accessory Business (RAAB) to Single Family Residential (R.-1), located east of Lyon Avenue between De Anza Drive and Cottonwood Avenue Solicitation of RFP for Special District Accounting and Consulting Services Approve / Finance Director 6 Senate Bill 1266 — Perata Highway Safety, Traffic. Reduction, Air. Quality, and Port Security Bond Act of 2006 Update / Receive and File /,City Manager 7 Ordinance No. 06-19 repealing High Density Ordinance 05-34 / Approve introduction and first reading of Ordinance No. 06-19 and; by further motion read by title only: An Ordinance of the City Council of the City of San Jacinto Repealing Interim. Urgency Ordinance No.:05-34 Limiting the Development of High Density Residential Land Use Projects / Community Development Director. $ Resolution No. _ / A Resolution amending and adopting local guidelines for implementing the California Environmental Quality Act (PUB. Resources Code Sec. 21000 et seq.) / Approve and Adopt/ City Attorney 9 Grant of Easement Deed / Right -of -Way Dedication for landscape easement along, Cottonwood Avenue T30813-1 / Approve / City Engineer .10 City Manager Employment Agreement / Approve and authorize Mayor to execute / City Attorney Dedications: from Metropolitan Water District — permanent easements Nos. RL221.3 (Warren Road) and ,RL:2402:(Upperline Avenue). The Cove'Specific Plan Warren Road°Improvements'/Accept / City Engineer .12. ` Parks Landscape; Maintenance Contract Award: ) Award public works contract to Pacific Coast Landscape for $69,600 b) Authorize the Mayor to execute the contract with Pacific Coast Landscape c) Direct City Clerk to reject all other bids 13 Rancho San Jacinto Park, Channels & Basins Landscape Maintenance Contract Award: a) Award public works contract to Pacific Coast Landscape for $153,000 Authorize the Mayor to execute the contract with Pacific Coast Landscape Direct City Clerk to reject all other bids arkways, Medians and Residential Area Landscapes Maintenance Contract ward. a) Award public works c%ontract to EZ Sunnyday Landscape for $123',600' b) Authorize the Mayor to execute the contract with.EZ Sunnyday c),.Direct City.' Clerk. to: reject ail other bids %; Temporary road: closure 1N,anen Rd. from`Cottonwood to Esplanade Avenue Approve !,City Engineer IC HEARIN 1 Rancho; Estrella Specific Plan to develop 283 detached single family homes,, 5,000 and 6,000 square foot lots, an 8.23 acre public park, 1.2'acres of public parks, 2.1k acresof greenbelt, a 4 acre detention basin, and 9.4 acre reserved for the future alignment of Highway 79. Tentative Tract Map No. 33141 / Applicant Century American Development / Community Development. Director a) Approve and Adopt a mitigated, Negative Declarationand its associated Mitigation Monitoring and Reporting Program ,b) Approve. introductionand first reading of Ordinance No�. 06=18 and by further motion read by title only: An Ordinance of the';. City Council : of the City„ of San Jacinto, Caiifomia ApprovingChange of. Zone 8 05 A Zone Change from 2, (Two. Family Residential) to SP (Specific Plan), on property located.on west of Sanderson Avenue, South of. the Casa Loma Canal, East of Cawston Avenue, and North of Cottonwood Avenue c) Resolution ;No:. / .A Resolution .approving; Planning: Commission Specific'. Plan 01-2-05, a specific plan to be known as the Rancho Estrella Specific Plan / Approve and Adopt d) Resolution No .. / A Resolution approvingTentative. Tract. Map No. 331141 for 'the :for Rancho Estrella Specific Plan, 241-lot:subdivision located generally west of Sanderson Avenue, south of the Casa Loma Canal. East of CavvstonRoad and north of Cottonwood avenue / Approve and Adopt pplicant has requested a continuance to, Augusta; 2006.s City -,Council "Agenda: July 6, 2006 Page4offi•. Resolution No. / A public hearing to consider a tax-exempt bond financing to be issued by the California Municipal Finance Authority to benefit Edelbrock permanent Mold Inc / Approve and Adopt / Economic Development Specialist Resolution No / A Resolution ;certifying the results of an election and adding property commonly known as APN No, 433-242-010 into Community Facilities District No. 2003-1 for Police and Fire Services (CFD 2003-1, Annexation No. 34/ Approve and Adopt/ Special Tax Consultant and. City Attorney Resolution No. _ / A Resolution certifying the results of an election and / adding properties commonly known as APN Nos, 433-291-040, 433-291-041, and 433-300-031 into Community Facilities. District No. 2003-1 for Police and. Fire Services (CFD 2003-1, Annexation No:.33/ Approve and Adopt/ Special Tax Consultant and City Attorney Resolution No. / A Resolution approving the Engineer's Report and declaring the intention to levy and collect assessments within LLPD .No, :1, giving notice and setting the time and place of the public hearing on the'. levying of the proposed assessment fiscal year 2006-2007 annual levy. / Approve. and Adopt / Special Tax Consultant and City Attorney Resolution No, / A Resolution approving the Engineer's Report and to levy and collect assessments within LLPD No, 2, ;for;.fiscal year 2006-2007- annual levy, / Approve and: Adopt / Special Tax Consultant and City Attorney Landscaping, Lighting, and Park District No, 2 (LLPD No. 2) Annexation No. 58 (DHI San Jacinto I, LLC —. Tract 'No. Tract 32250) / Special Tax Consultant and City Attorney a) Resolution No. / A Resolution initiating proceedings for the Annexation of property into LLPD No 2 - Annexation No.. 58 / Approve and Adopt b) Resolution No. / A Resolution approving the Engineer's Report for Annexation No: 58 into LLPD No, 2 / Approve and Adopt c) Resolution No. / A Resolution declaring intention to annex property into LLPD No. 2— Annexation No, 58 / Approve and Adopt d) Public Hearing / At the conclusion of the public hearing if the City determines that a majority protest does not exist, by motion approve the certification ofthe election results for adding certain property. into LLPD No. 2 known as Annexation No. 58'/ Approve and Adopt Resolution / A Resolution ordering annexation of territory into LLPD, No. 2 and evying assessments .: Landscaping, Lighting, and,Park. DistrictNo.'2.(LLPD,No.:2)Annexation No 59 State(RamonaPlaza, LLP Al'N ;Nos 433 291-040 and 433-29'1-041) Special; Tax, Consultant and'Cty. Attorney a) Resolution No / A Resolution initiating proceedings; for the Annexation of property into: LLPD No;2 —Annexation; No ; 59 / Approve and Adopt ki} Resolution No. /A Resolution approving the Engineer's Report for Annexation 59 into LLPD No.;2 /,Approve and Adopt c) Resolution No /A Resolution declaring intention to; annex property into;LLPD No 2 Annexation No. 59 / AApprove;and Adopt d) Public Heating" At the conclusion of the public; hearingif the City determines that a .majority protest: does.. not exist, by motion approve -the certifiiication:ofthe;election results for adding certain property into LLPD No. 2 known, .as Annexation No. 59;/ Approve and. Adopt Resolution.: Resolution ordering• annexation of territory into LLPD iNbi 2 and levying assessments tesolution No / A resolution approving affordable housing disposition and evelopment agreement between the Redevelopment Agency of the City of ;an Jacinto and Palm Desert Development Company concerning the evelopment of an 81-unit affordable housing development on Santa Fe Street; etween.Esplanade Avenue and Oakwood Street; and Making certain findings ursuantto California Health and Safety Code Section 33433 / Approve and• adopt / DeputyCity. Attorney At the end of the scheduled : City; Department sterns; anyone wishing to discuss a consent calendar, item should corre'forward:upon invitation' of the Mayor;;; state their name, address, and the consent calendar item number pulled Speakers short/d limit comments to three.(3J minutes. Dint City.Cler triclusionary Housing Policy and In -Lieu Fee Program / Presentation and direc staff to proceedto finalize inclusionary housingpolicy and in -lieu fee program;: and prepare ordinance for -adoption / Community Development Director Total Maximum Daily Load Task .Force Agreement with Lake Elsinore and Canyon Lake Task Force / Approve, /- Authorize mayor to execute agreement International Conference of Shopping Centers (ICSC) Report//Receive and: ile! Economic Development. Specialist oting"Delegate for League of California Cities Conference September 6- 006 / Select delegate` and alternate! City Manager Council 4genda • July 6, 2op6 r' . Pad 6of6, AYOR / COUNCIL MEMBER REPORTS / DISCUSSION Council MembersReports SEDSES'SIO CONFERENCE WITH REAL;PROPERTY NEGOTIATORS Property: Northeast corner of San Jacinto IAve: and 6t",Street - Riverside Count Assessor Parcel Nos:-:437-076-004•, 006 •,007 & 008 Agency negotiator: Barry McClellan City Manager Negotiating parties: Graciella C; Cruz Under negotiation: Price and Terms" ADJOURNMENT If you challenge any action of the City Council in court, you may be limited to raising, only those issues you or ( • someone: else raised at thepublic' hearing described-in'this notice,' or in:written •correspondence 'delivered .to the City Council (cio the City Clerk) at, or priorto, ;the public hearing. CHALLENGE TO LAND USE DECISIONS: Any. person seeking to challenge a •decision regarding land use made by the City Council as a result of a proceeding in which by law a hearing is..required to be given, evidence is required to be taken, and the discretion in the, determination of facts is vested in the:City Council, shall be required to commence that action 90 days following the date onwhich the decision.of the City Council becomes finales provided in Code of Civil Procedure Section 1094.6. Please refer to Code of Civil Procedure 'Section 1094..8 to determine how to Calculate when a decision becomes final:': is the intention of the, City: of; San Jacinto: to comply with the Americans with Disabilities Act (ADA) in all respects: If, as an attendee or a participant at this: meeting; or. in meetings an a. regular basis; you will need special assistance beyond what: is normally' provided, the- City will attempt to . accommodate you in' every reasonable manner. Please Contact City Hall at (951) ':537-6358; at least 48 hours prior to The meeting to inform us of yourparticularneeds=and to determine if accommodation, is, feasible. I, rporbt/iy L: hot6.e pity of San �ncinto; foregoing agenda this 30th day0f7une, 2006; as required &y (au AGENDA ITEM TO: Honorable Mayor and Members of the City Council FROM: Tim Hults, Community DevelopmentDirector SUBJECT: Inclusionary Housing Policy and In -Lieu Fee Program RECOMMENDATION: Staff recommends that the City Council: a) Direct staff to consult with local housing developers and finalize an Inclusionary Housing Policy and In -Lieu Fee Program structure. Furthermore, it is requested that the City Council direct staff to work with the City Attorney to prepare an Ordinance for the adoption of an Inclusionary Housing Policy and In -Lieu Fee Program. BACKGROUND: Since the early 1970's, cities and counties in California have proactively sought.. to ensure the inclusion of affordable housing in new residential developments: In 1976, the State Legislature integrated inclusionary housing requirements into Section 33413 of the California Redevelopment Law ("Redevelopment Law") and later in the California Coastal Act. In brief, new residential developments in redevelopment project areas are required to provide between 15% and 30% affordable housing units. Inclusionary housing programs allow the development of affordable housing to become an integral part of development taking place in the community. Cities generally regulate and require inclusionary housing via a zoning ordinance which imposes mandatory conditions or voluntary objectives for the inclusion of below -market housing in future market -level developments: A typical inclusionary zoning ordinance will set forth a minimum percentage of affordable units to be provided in a specific residential development, generally defined as a percentage of the median income of the area: The share of units allocated to such households is termed a "mandatory set -aside." The goal of such a process is to establish a relatively permanent stock of affordable housing units produced by the private market. City Manager: Finance Director: "" Many ordinances contain some form of incentives provided by the City or municipality to the developer in return for the provision of affordable housing. These incentives can take the form of waivers of zoning requirements, including density, area, height, open space, use or other provisions; local tax abatements; waiver of permit fees or land dedication; fewer required developer -provided amenities and acquisitions of property; "fast track" permitting; and/or the subsidization or provision of infrastructure for the developer by the jurisdiction.' The Inclusionary Housing Report ("Report") provides background on the emergence of locally adopted Inclusionary. Housing Ordinances as an effort to meet the growing need for affordable housing throughout California and presents examples of some of these ordinances. More importantly, the Report presents an analysis of the various potential impacts from the implementation of an inclusionary housing ordinance in the City, as well as alternatives designed to address or mitigate the cost of residential development under such an ordinance. San Jacinto Redevelopment Agency - inclusionary Housing Requirements Redevelopment Law requires that the San Jacinto. Redevelopment Agency ("Agency") reserve at least thirty percent (30%) of all new or substantially rehabilitated units completed by the Agency at affordable costs for very low, low, and moderate income households. Fifty percent (50%) of these affordable units must be set aside for very low households. For those new or substantially rehabilitated units completed by a private developer, the requirement is for at least fifteen percent (15%) of those units to be reserved for very low, low, and moderate income households, forty percent (40%) of which are to be designated for very low income households. According to the housing portion of the. Agency's current Five -Year Implementation Plan, the Agency has received credit for producing 147.5 affordable housing units through December of 2004; the corresponding deficit is 59 units and the ten year projected need is 282 units. Redevelopment Law does not require the Agency to prepare and implement an Inclusionary Housing Ordinance, howeversuch a policy is beneficial to the Agency as it assists the Agency is meeting its inclusionary housing obligations as defined by the Redevelopment Law. Without such a policy the Agency has little discretion in requiring inclusionary units from housing developers. Additionally, by not meeting its inclusionary housing obligations the California State Department of Housing and Community Development may withhold Agency revenue or institute other penalties in an effort to force the Agency to meet its inclusionary housing obligation. 1 Burchell, Dr. Robert W. & Galley, Catherine C. 'inclusionary Zoning: A Viable Solution to the Affordable Housing Crisis?" New Century Housing. 2000. The Center for Housing Policy. 24 June 2005. < httplwww_inhousing.org/NHC-ReportINHC-2.htm>. 2 JUSTIFICATION: California Community Redevelopment Law requires that the Agency meet its Inclusionary Housing Obligation. The approval of an Inclusionary Housing and In -Lieu Fee Program will serve to assist the Agency in meeting this obligation. ALTERNATIVES: Approve and direct staff to consult with local developers and the City Attorney to develop an Inclusionary Housing Policy and In -Lieu Fee Program Ordinance for the City of San Jacinto. Staff recommends this alternative. Not Approve and not direct staff to consult with local developers and the City Attorney to develop an Inclusionary Housing Policy and In -Lieu Fee Program Ordinance for the City of San Jacinto. The City Council will receive and file the Report. FISCAL IMPACT: There is no budgetary impact as a result of the recommended action. The recommended action allows staff to finalize efforts to create an Inclusionary Housing Policy and In -Lieu Fee Program for the City of San Jacinto. ATTACHMENTS: • Inclusionary Housing Policy and In -Lieu Fee Program Report • Power Point Slides: Overview of Affordable Housing Obligations 3 City of S 2 4NTO 1 1 Juy62OO6 (NiCity of ban Jacinto 201 East Main Street San Jacinto, CA 92583 INTELLiCENT COMMUNITY OgVELOPMENT ROSENOW SPEVACEK GROUP NE.:s.„ 309 WEST 4TH STREET SANTA ANA, CALIFORNIA g2701-4502 PHONE: (714) 541-4585 FAX: (714) 541-1175 EMAL:INFO©WEBRSG.COM I. Purpose of Report... 1 /I, introduction and Background ... .... ................... 1 The City of San jacintc Emergence of inclusionery Housing Programs ........ ........... 2 inclusionary Housing Requirements Redicnal Hcusing Needs Ass=ssrnint (RHNIA) 4 IV. Associated Costs of Inclusionary Housing ...... 5 Hic..,meownershic Affordaoility Rental Affordability In -Lieu Fee — For Sale Houslng ....... ..... ...... . 7 Full In -Lieu 9 80°,4,.. In -I F4-•-= ..... ............. . 50% In -Lieu Fee 25% n-Ueu Fee 10 in -I ieu Fee — Construction Cost Only 10 in -Lieu Fee — Rental Housing 12 Full In -Lieu Fee 12 80°,/a In -Lieu Fee 13 50% In -Lieu F.=, 13 95% In-1 it=u Fee 13 Housing Development Scenario 16 Community Land Trusts 18 Density Bonus Legislation 1 9 Recommended Programs and Protects ..... ............ ..... 21 Appendix A - Local inclusionary Housing Ordinances and Practices .. ... 24 Re.'7NICAJAI SPFVACEK GROUP iNO. JULY 2006 CM( OF -SAN jACINTO ;NCLUSiCJNAFY HOUSING P'Oi !CY & N LEU FEF STUDY The City of San Jacinto ("C ty'; has retained Roseno Spevacek Group, nc. (`RSG"` to conduct a series Gf economic, policy, and development impact analyses that vwill inform the preparation of a local !nclusionary Housing Ordinance. This lndlusionary Housing Report (`Report") provides background on the emergence of locally adopted °nclusion;;a y Housing Ordinances as an effort to meet the growing need for affordable housing thrcughout California and presents examples of some of these ordinances. More importantly, the Report presents an analysis of the various potential impacts from the implementation of an inclusionary housingordinance in the City' as well as alternatives - nee" f i i� :f. :,i tiJf�:.+-ilA J address or mitigate the cost cif residential development under such an ordinance. The goal of this Report is to provide the Agency with a document that achieves the following: Designs an inciusionary housing in -lieu fee program and orovides _ ait::'i I::`;IBiz both ownership and rental units in the City of San Jacinto. a Provides detailed inclusionary housing strategies, pote!:tial programs, an! specific projects that will meet the San Jacinto Redeve a t enAgency'snou goals. Examines the potential effects of an inclusionary development of housing in the City of San Jacinto. Provides methodology an the calculation of an :nclus the City. prrggram on iousiric in -lieu fee to a identifies successful inclusionary housingstrategies in local cities. inclusionary housing programs allow the development of affordable housing to become an integral part of other development taking place in the CGmfunity. Cities generally regulate and require inclusionary housinc via a ;cirinG ordinance `anoQ which imposes mandatory conditions voluntary objectives for the inclusion uSi3n of below -market housing in future market -level developments. A typical inclusion ary f zoning ordinance will set forth a minimum percentage or units to he provided in .. specific residential development affordable to nGusebccs at a particular income level, Generally defined as a percentage of the median income of the area. The share of units allocated to such households is termed,, a"mandatory set -aside." The goal of such a process is to establish a i eleti �I'v permanent t stock of affordable housing units provided by the p ? r'ret !�v ✓r!`f �. ti../ i114i :tie �. ROSENOW SPEVACEK GROUP INC. err' OF SAN JAC NTC JULY 2010E INCLUSION; t HOU iNG PG! O V z. iN LiEu FEE: STUDY In many ordinances, some form of incentive IS provided by the County } or municipality to the developer in return for the provision of affordable housing. These incentives can take the form of waivers of zoning requirements, including density, area, height, open space, use or other provisions; local tax abatements; waiver of permit fees or land dedication; fewer required developer -provided amenities and acquisitions of property; 'fast track" permitting; and/Or the subsidization or orovision of infrastructure for the developer by the !urvdlotiion. The City of San Jacinto The City of San Jacinto is located in the Rivers; e County of Southern California approximately 80 miles east of ins r?n,ge'e.s and miles northof Sa:n mid_ ;go �`.(� �VIA!�r�L�!'_) Jl ✓i _ �iti �Ii.%+1'J 90 EFIII�t ��':i u�%. as general 5 v city April ` 9 with p ation Incorporated a .a crai law on 1888, �n estimated population of 28,437,the City operates under the .u? inClll ManGiger form of gG°lerhiiient. Population th p 1 that thegrowthinCityhastoof County of Table 1 below presents brief -?-ia y the p' do of , the 20t jf 1 a summary of population trend � +.Jv' 2, period. JMINtta • ; n.N TO Growth rate 2000 2001 2002 2003 2004 2005! 23 9 .24,627 25,447 26,321 27,198 78,4371 3.57 % 3.33% 3. 7% _.1:WO 4.56'! I RIVERSIDE COUNTY 1,545,3R7 1,590,473 1,654,220 1,776,754 1,807 858 8(7 0001 Growth rate 2.92% 4.01% 4.38% 4. 0% 3.82%l Source: Stale of California, Department of Finance, E-4 Population Estimates Nor Cities, Counties and the State, 2007-2005, with 2000 DRU 5enchmark. Sacramento. California, May 2005E Home prices over the last decade have soared fueled by a growing population's demand.F danuEthrough January' th _ it From January ary 2004 1 ulsgh ��E iGai ; 2005, the average single family residence in San Jacinto appreciated approximately 27% in value. The escalation in the Cost of housing has continued into 2006. In fact, the March 2006 median sales price of a single family home in San Jacinto was $33" 0'00 approximately 22% higher than the median price of March 9005. Since the early 1 9v s: cities and counties in California have proactively ght to ensure the inclusion of affordable ;housing in new residential developments. :n 1976, the State Legislature provided legislative basis forthese S efforts by integrating 'ramfusioay housing requirements -0 Section 23413 of the California Earche!!. Dr. Robert'JV. & Galley, Catherine 0_ "Iric!usionary Zoning: A Vievle Solution to .he r fordaole Hous'ng Crisis?" New 0yrPurd Housint.. 2- 00. The Center for Housing Pciicy. 24 June 2005. < bttr://wwN. in housi no. rc/NHC-RecortNHC-2^`i RUSEN0W SPEVACEK GROUP INC. 200€ ELT✓ n:F :FAN JACINI'n: !I1CLUSIOW,RY '-iCC.ol v -'OLr,. ' _ N FEE ST : Redevelopment Law ("Redevelopment Law") and later in the California Coastal Act. in brief, new residential developments in redeveiopment project areas are required to provide between 15% and 30% of all units as affordable housing. City Councils and Counts Supervisors have had, and exercised, general flexibility in designing local ordinances requiring various levels of affordable housing activity from new residential development within their jurisdictional al boundaries. This flexibility has led to variations in the percentage of units required as affordable, length of affordability, and alternative methods to the direct provision ofaffordable housing units by developers. me jurisdictions have to .� v - pens. c opted to adopt the Redevelopment Law standards while others have embraced stronger requirements. Once _.l jurisdiction has decided that an incusionary housing ordinance is necessary, a policy must be designed that integrates efficiency, developer concerns and community needs. Some of the common thread principles that help guide the design and rm le ent ation of local incluslonary housing policies include: 'l . Size of the inoi+usionaray percentage: �. income -targeting of the housing: 3. Alternatives to construction on -site: ". Developer incentives; and Length of a,ordabiii +f' hiclusionary Housing Requirements At the local level, there already exists a precede; . ,or the inc,usionary housing ordinance effort. Specifically, Redevelopment Law requires that the San Jacinto Redevelopment Agency ("Agency") reserve at least thirty percent (30%) of all new or substantially rehabilitated units completed by the Agency at affordable costs for very low, low, and moderate income households. Fifty percent (50%) of these affordable units must be set aside for very low households. For those new or substantially rehabilitated units completed by a private developer, the !� � v %� v.JPri ti .e requirement is for at least fifteen percent (" aithe units bereserved � � !0� of those `nee to r b��Fv'✓,.. for very low, low, and moderate income houssehold s, :'J �'ei tc "IC (40%) of which are to be designated for very low income households. According to the housing portion of the current t Five-YeFive-Year Implementation. elan. the .Agency has received credit for producing 147,5 affordable- hcu s3i;r units t„ n h December :o r004 h.. .. I �ig, �.�..,. ,Ew.c: v, —vV .. iC yvrra.ti.l:iv'`idii Ey deficit is 53 canii:. i;t,.., the projected need is 282 units. in meeting the coal of presenting, iil''r Living!. and increasing the stock of a iordabl e housing units, the Agency may purchase or cause, ause ..ent cr regulation, long term affordability covenants on multi -family units that '1Jnuld maintain the rental andfor purchase price of those units that are l'"''c't currently available at affordable housing costs or whose current affordability is in danger. ROSEiNOW SP= ACEK CROUP INC. 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A single family housing developer may satisfy the requirements of the nclusionary Housing Ordinance by paying an in -lieu fee for each affordable unit not provided according to the affordability requirements. The full (100%) in -lieu established calculating t; current market e" feeis JFaN.{shed byGalCula_ ny the urren� "3:c� ii�t price for new for -sale housing, then deducting the maximum loan amount the family may qualify for, given the family size'''. Additional in -lieu fee scenarios provided in this Report r: include an 80% in -lieu fee, 50% in -lieu feeand an in- ieu fee,which is the 100% in -lieu fee net of land acquisition costs. According to data obtained from various homebuiider` lebsites and Da aQuick Real Estate News, the current 2006 market E newfor-sale housing inSan o-lows; t bedroom ;,. FG+ Sale ii .,aCi;"?Tv is as follow cufliG ue'di GGF'"1 (three personfamily) $240,000; three bedroom ., (four person famit %! $31 0 000; four and five bedrooms (five and six person families) $350, 0.` the . �� ,5�� C" A s> rat.,�'e for the irrocsit cn of these in -lieu fee rates s has tere ' de`Jeloned and Is rietaiied in the ,,, „comerPrograms andP . this Report, Additionally, h € ""C, mended Projects section of � s Report the ty may want to introduce language into theIn ' ran Housing Ordinance Clus?G ��' , which allows the City Council discretion in applying the in-Eeu fee payment scenarios, so as to allow for alternative actionssuch as the gifting of land to the City.it would be in the Ci yis best interest to retain this lexibilit'y. .. to provide additional incentives and opportunities for deve,lopers to provide e affordable d G�"u,.,ul� housing opportunities both within the proposed development and City. Table 4 identifies the costs associated with s a for -sale housing purchase; including the economic constraints of three, four, fiveand person households he u �l� cs six s,.,. av� +for the moderate-, and very -low income groups. . The maximum family size far a dwelling is calculated as the total number of bedrooms plus cne. A three_ bedroom home would have a maximum family size of four persons. °.CSENOVV SPEVACEK GROUP!i'iC. CITY OF SAN JA.CIN O JULY'_OO5 NCLUSIONAR HCUS Pie POLICY ;a IN ;_iEU FEE STUDY .,. • • Table 4 San Jacinto 2006 PirojedtectfibilleoiNtiEtithip. eitiste,.aricl-AffcitdiabilityttotiOttitillintt Assomption.5: boon cost (174 Sales price or home Affordable 1 lorne Price Income Category Max. AI IC loss: Taxes (1 15%) Ins (31 4100 per year) Utihties Collars Remaining forP & Down payment (5"/0) Amount Remaining Maxi mom loan aidlOfilli Moderate. I o..nrrm (1 )0% QI Mel tidn mconre.affshialde (t1tt r353) 6 2,100 69,005-1- 74,500 80:000 31iersoi i 4 poison 6 poison 6 pension I lousoltold Household Household i loosen iold 29.6,000 310,0011 360,000 350,000 209,000 1 662 230,118,81045 ! 2411,716,500 827„269,00 1VIod Mo.1 i Mod - 7 lylot Ire (2830(31)) (2(8203)) ( _1( 83131)) (830 (258) (GE) (97)1 (PM) (113) 1,310 1,444 1,568 1,666 10,450 I I 500 I 2,438 13,45) 234,550 298,500 337,5(33 339,550 207,302 220,463 , 246.438 2136,717 4 / 400 3 person I lonseneld 740,000 104,000 Low Low Lo1A1 907 -tall 1,037 - (100) (1(19) (117) (83) (68) 656 5,200 234,800 103,707 1 113,422 (83) (83) (97) (113) 717 '7'73 LOW lircorso On of median iscorse9 46.000 49,700 53,3,50 4 person 5 person 6 person Household Household Household 310,000 350,000 350,000 113;750 '122,500 134,000 Low '1,167 ( I 28) (83) (113) 843 Voty 1(3v/win/no ((05 of 1101Oi9ll roconoe) 25 900 20,750'T Ti ,050 33„.1(10 3 person 4 person 5 person 13 po(son Household Household I lonseheln Housonoici 240,000 310,000 360,000 360,000 63,000 74,000 '79,500 87,500 Very Low Very Low Very Low Very Low -- 648 719 776 834 (65) (71) (76) (84) (83) (83) (83) (33) (68) (97) (113) (I 'I 3) 431 468 504 554 5,688 6,125 6,700 3,400 3,700 304,313 343,875 343,300 236,600 306,300 1 72,300 133,293 68,180 73,964 79,895 3,075 4375 346 025 345,6:25 117,580 POSIENCAN SPEVACEK GROUP INC. 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'- 0 (10 () 0 cl'-i 52. roc _7.-1 (1) 9:5 c 0 ID --; 0 1 1 0 0 ,c..: ''' 0 cf) 0 u) ,_.-.:,. , 71...i:i- _ri3,-, ) 51a. ...„0:1 ,,.) : 05: <is 7.7: -'-... 6. sic.i h• 9.)) :3_ (I) o -3 ,.: . 0 (f) Li"- 0_ C • :714" Lb (iL!, CD 11c q cf, -±oc), CD C r_c>,". _.C-), J-. -,-"C TI..((lil 0° ,T(')-. ,•.'t.);1),.775.,.. c(c1)1 o (D ,.- rD -6, ID ij) . 6) a 1_3 _,, w ,., k<ci(1):-)' 'Ir3 (WI) -D4-11 ---' 71-7._. --::•;; -'3:' (D -<, 0 (.0 3 ri-:.„-.7.--: 2 (1) a) ,Dir). ,c,-:,' D„.....C). 75i.::t3, t .1,2_7(1-1. !,)7 ,i (....,"1 7‘;',---7...: =7--1,-'': u(L(11: M 73 a) (76 (I) "CD- -"(h 0,) C.) li.30)DO'L-13--012,..1r0 -3- .._. ---1 .75 CI) )_ ID c) (---)) CD 71 CD C-). CD CD -0 ..=.,, .._.] ) o - ID Fi1- (..! .7,.:,)D) -z(c.7).)i-.)' (7..D.':) 0 0 p.) 1:.071 _i(D ;_,...3..zr c.....1 .:,:.,. 3. rl, , ,..„ ..) (...)i 1, CD 1.11... C) --(', a, (i) c-.) .<.t. ....../ ID :,-..... C) 1...-. L- "":" ''';-,-; 47, -...i: iij- CD :15" ii); i1i) •-•' ori 7 --- .. . (.0 •-i.: .1.'1'15 l''-.17.71.] 157C(*(11)--;Ut.-711:„.'{ 75(:71:-!?'.). (-1,1(C(1)C.ii, "(1.7-5h7h• (7;*:.C111-).-. -:-.1- 0- ID :73 ,-) 2,,;-• D.) Cn 11) -;(1-1,!-05 0 C7... '--(s < (1) 7 - 0 (1.) .- - ' 0 C) --"" D CD ) LI- -I il tP) `'4, 'e-...;' -Fl „t7i3)- ..,..ii (i-03-- f,6-751• ,..--.e..-- U) ?is IL: ID (f7 (7)?r" 0 .,-5- a) '(:).) El: a•• ---1 a 7 (1) 0 -.-" 5.-1 r(--1- s---5-. kii .._ ,--... CI) • C.1 ,,i) 01 ... .) -5 -(11 -.cL)1 4(I?;,) („.1--D=,„.:',.Lz'2ii..))-.-- -.(T,3 • 1,C:,3r)' -u0., .(3). -..11 13) ha,as(,_of !'c..,1 i-ti11:1.) , N)>(()) ; a..7.•.., < .1-_,- a) - (i., iii h, ...-, I (r) 0 -0 --I 0 0 (1) -,-- 23 (--(- -(73 C7 (I) "HA (r) (-( (7. D) C)) .;-.1:-!)..) 758 i'Cl\! Ir'rrID (7). C-ar:).F.. -61(1) (DtC? (--,6 ,„.-J- (..(9... c.)) ..-6 -6.1)- ".4. 21 ,, 7.1. (1.3 _ _ , 0) ' 7:a.--,; C.--:11,, 1 (I) a , 0., a) 1 (r, ti.. (-) c) 9 1 ID l'-.1 'Cr 0. a) -.5 (1) o - a) --..'- 1 (:) 1-3 .-77: VI 0 CV ---I 0 -• r --, (.-11) .,. I, 0 C -2.1( (." -,.I 1-J 15 :- 1 (1) (1) 11) 71 13 ,---,- 0 (--').. ()(1) 0.„ (--i. '2, 03 ,("(,' CC, CI, z_3-'1.1 0 (:I; ''''. U,.) _i_' till), ▪ - fC,1:)) cic.5): g; 0 0-, -1 - , 1 () ."773 03 . -7:1 7.") Dr.i (-2-.1-. r.4.2. -,;..71,. I.D -- )1) C) (1) ID 0 11) 111. -0 ("D (I) - .:.- -(-- (1) 6,.. - 61' -ck.13) %) c) ;:i (_ . --, - -5 0 D - CI) CD ts("... ' -_) -(-r ? ' (6 2' -11 --1 -' (0 itD ..'-: CD (*) 1:jr. a) (-C3 ij2 il"; '..'‘ CDC) I:- (_-', -;-..• i ----. Fcl C.-1.• (1) 5 ( 0) C2--1 y. & L.-. o !;.i: 9 ' 1). ,.-i ,, „.,, . .3. .-...' (D (D -, . :13- ..:.) D -'- -r., - 0 C:l."‹. r .0. 0 CD_ ..- .:.... 1,1)..'D (6 (1)7:1 1:0 (1) CD co Scenario 1 (Full In -lieu Fee) 521e Pi ice of 1 kone Maxnm un L ea n Amount Fdl in lieu Fee Scenario 2 (6(V31 In -lien Fee) (Sale Ri ice of I I011e Maximum Lean Amount 80% (n lieu Fee Scenario 3 (60% In•lieu Fee) stele Pure1,>f Florae MW t.: mum Loan Amould 50% !n lieu Fee Scenario 4 A In -lieu Fee) Sale Pri. of Florae Meixlnu inl t oan Nnourd 5f)% in lieu Fee Sr:enarlo 5 (lu-lieu Fee - Construction Costs Qnly) Sale Pishe.or Holne Con (ruction Cnst orHonle - Maxlmnm Loan eln amount In Lieu Fee Construction Cos Notes: MAX Al K. Mdxk^rH111 Innonre (! 10 a of,_a mr parson 4 prrsan� I lonseilck( I kn,srnald -,� CIF 000.. 207,3U2 12H,:II(i;4 - 87,698 81,537 able'a acted NOtne°wrieteiliP„Full (100641 in Lleu;Fee pst`:Ocfnatto I6m'lu1 4 49 .3.',"1;) nee: 6 p015111.i� '10i rv,rahnid I-Iousehold 300,)100 - 5311 (100 215,438 266,717 103,5G2 83,283 Low rywonx. (88 n 3 person ... 4 peson I lousehnld I-Inusehold L4+1/I in NI,,e) 5 persun 6 por;'on Household -InnSchclp1 70,000 -1(U 000 35d1000 ' 5 Il0u 111122 122,300 '133,293 136,293 196,578 227,700 216,707 Table 8 eowherstri Eighty Percent 8qa/o Ib-Lleu Fe Mork -Tab. brcorn^ (1(033 of rnrrb' ul au:y a-af/au akl�L 35%) . 3 peiann .- 4 pot son ®5 (h01son (person Houschnlrl 0.(-lnuoehold Plollsehold Ilnnsr nnirl 2L.15000 - 1I0,0U0 3501,AH'1�nra)On0 207,302 220,403 24G,'135 'fi0,717 70,158 65,230 82,850 fi6,626 Ban .laaInto 2006 Protected Homeo Mrxk'IaIR )ncoln' 1.1_._.1616 ise! nK3 .___.........._. �..3p�nh ..� Apel=n5 I lousehoicl I kxlsohold .295 0000 -•110,00(1 207,302 228,403 48,849 40,769 n)nrnrne-affoidshl peleon G I muse hot) tlou 35(100U '.4G,438 51,781 (srson tloust/hokl 24U,0U0 103,707 109, 034 nuoum (8(63 cll)It1dalr Gxnnre) 1 poi nn LFinnsehe!d I lnusehnid 3 i0,000 7190llu0 113,422 1223U0 157,262 182,160 F poison Iousoholla 50,000 3:3,203 73.3(i5 Very 1i 5 rM'1;nn 1 Inuseh01d 24U ((0(1 (01, 113.9 171,81'1 3 pr1Irnll lousehold 2+ifl,uo0 613,189 137,449 Table r' . .1' itkshtp Flf!( Pereeri�,ysq�/q� Irl Lielyl Fed Gosf :zoenarla Lan l,r,,p, 3 11elsan 4 person Househnlel I Inuseholrl 2,10,1100 10.1, / 0/ 310,030 113,422 68,146 98,289 t u�r�nn rusel1a111 35000)) 350?;lion 122,301) 133,29:1 113,850 108,.354 VcY 3 (wrs0n 110050110111 240,0(H) GB,19n 85,906 I-Inuo, 1roll1 �$11I 011U 1g(orn { 1 1, of nlr kw; Irl ltl..l_ ool.rfl (i 11e19011 Hell i,aho1 ( 1-I00seho5I fl67)-570(l7 73,901 711595 37,61(0 236,016 270,305 262,420 9 Incivne (50' 4 person Inusehnlri ni 1 17.10 73,9134 118,018 0 Twenty Five Percent 25 /4 In -Lieu Stitt JBcihtb ZQ 5 Protected Homeownership Y.. ( Q � e Cost Scenario 4106801)c In110ne ((1051 nl lkoknrr Income-Oagrz able 35%) 3 person 'l person 5 person S person �I-inusehold Housal,old I-lousehald Household 290 300 110o00 "i5Qt100 3.5001 u1 -- --- 207,302- 239,463 210,438 200I'I I 21,924 : 20,384 25,690 20,821 l ow ilhreme 3 person-- person I kninehnill 1 lousehold 240,000 31n,000 103,707 1'13'122. 34,07349,144 table'0. San Jacinto 2006 Ptotected iiorneowfltir5htp FUI1 In Litho Fee Net M(xt`'lala Lmop (1f03 ofine 3 persona 4 person I lousehold I krusehold 310,000 207,000 22t3,40' RO SENOW SPEVACEK GROUP INC JULY 2006 '95 000 151,800 207 302 0 b person Household 3a(1,000 2i5,300 2,18,438 8,882 incfxne 3iRru able 49 3G4(,) G pol5crn 1 Iollseholtl 350 UUII 255,WO '430 7I7 nax Walla r(L„niol_de(1ousmrl lost alklwan__ __________________________ Vnn I➢C@i.'e pelsan Inusehnl) 300,000 '1 22'300 56,925 (i I'>1rSn11 linuseholil 360,000- I 33, 293 54-177 Very( OW (bail.O 3 Ilers(11'1 4 I1f,r ser, I Irnlsell/10 I lapse bald 246,060 3ftl,0(111 -_ C0,189 73,E+6d 42,953 59,009 Acijutsltion Costs Scenario, 7_001 !!aroma (805 of m00511I bx nrlF) 3 (?ersoii 4 poi AP 5 person 1-1 ehnid I lnusehold 1101150110111 1110,000 350000 207,000 255,300 113, 122 17-2,300 93,.178 133,000 246.000 • 151,800 103,707 48,093 13 pelsan 3 pelsan Household Household 350,000 240,0011 255,300 '151,80 ) 133,203 61,181:1 122, 007 83,611 0011f1, Mu00A4 4 0041100 ilnusellold 11110,,0(q) 207,111111.1 73,95u 133,036 Of urclia11 b)r -me) V po snn h person I Inasehnkd I dins"hold "d1,000 l511,I'1lllI 79,69f.) 137,580 216,244 2011,936 lrrrlritlarr rur Nap) 5 r'ore,on inl rsc'hakl 35o,no0 7 U, 605 135,152 1 rc 1-lrlosellnir1 350,0(10 67, 08) ) 31,210 t•f wodinn incoo re) 5 person (i person l lnuschohI Htlusehol,1 1 ,0,(hl(1 79,605 - 87,5580 67,576 6,5,605 I�Of uo,lran me 5 poison 1101150110111 3 �0,11(11 11.15,111D 7l.),0115 176,605 Isnn nIrehnkl 357,71 0 255,300 /17,GR0 162,220 CITY OF SAN .IACINTO INCI_U,^IONARY HOUSING POLICY , IN LIGI.1 FEE Sft1DY c.. 0 I 7.3 O - L U ,. (U m U (D N C)-, ) m (U o • m (D u, 3.:1.. fl) ? S �.. O- n w)' ]- 1,5 SC.L3 (1) 1 C) (U (p (11 I1) -' (1) (I) .6i =Y Sla IU } (D 0- 0 - 3 ('i) u) fu C) (s (!) -5 it) C..:" t (;. f U m- O .t) C5 O (- (C) (,, (l) 7 fl) i S () j . (- ) it I1; r� - -fir Y 7 tl) tir SS) t c ' fl) (0 (- Ill (X) S ( ) (D' ill .._ (I) _ I, D 3 } f,s 11) (D 0 u) m (() _- tD fly. si)Y `5 (f) C') C1. (-.L c) O (.1)0 t17 C_1 o l) (,) ttl �l u^ ... (D (§( li 5!) t.) 0CD I) -71 C!l '- lla _ �. • (,C) u) C3 (1) (2 3 ' i t:� i1. f�,` ll)} (7 t3 FL)f) f O) tD I. CD (D lr O :i 0 ivy C; (s 0 {U{ n, (i K1 0 Ca_ +h 73 -} cu 0 0 "0 f1... f 0. -i CD S]) t) ul (l) -w7c - 31) 3 (1) u) ,.1?.? T (L� 55 CL (oiU Q) . y, U) l ti, l m fl3 CD CD Sls Lid S1) [L to [) I_)• 0 ') LU 1) -) i r m a, LU -3 c� • U) LA 0 .. (1 (� fll 73 S - 3 (j) (clip i) may., (') (f, 0) f0 `") U �) L- i71 •'a f1) 0 Q) (1) '' ' - `C] 0) CD Co fll C) �? szp 0 (0.) y' (n ) :z u, Ci y CD ) (n (-) (f}. (n -) (;) iC1 ') ill CI (1) lU CI) -0 (l (1) ) N 0 u) U (l) (ll 0 m (1) ()1 (U1 _ • U'1 C N, a (D (U (b III. -1 fU C) 0 (l (U X (7 <� c 3 •S._ • (n L- ' (C) (- ni'' E5 (C) r.). 3 (r (� 0 3 f1) "l D Cl A) f_ i1, TIC') [D (CI 01 d) -) 1 1- 0.2 0 0 C) 1- 0 -ri 0) 71 2' I 1 0 -I < 0 ad..), e(:) c) -c:i (-,•..,,- ......1 po -o 74‘ 7'' -C-.5 11 —I r'2:. '' -1 CA a, a, ..F.',.. 6 c,.. co C: U c--:1 6 cli , 6 ,6 ,..1) ._) _ _.) ....) 0 5. ..t3 :3 ii3 (rs * 9.2 :3 73 L-. w (r) o w „.. .._,I 0 t-) :..) (fs O ci s.'",- a) 1",;:W(("7,W5-CaE4-_,.:,-.13r1:I,.5.),...,1..T;S).')!,-"11 - .i -.c-..0n'7•,6fC:o(7Ci'LZ.<.‘j..:.-1-,3.-).".--.71) i3) -.: -- ,.'4.Coc.0.c---l7ic,4:C:."70-0 :„:.7..J-..-'..P:4"3Du'.,3l.,D...c,1..--,•,:). ) .I,, -g.-(ar_a(„F-":(4(C.-..:- i„.".1T,I23 )..).7):)s„i)1i,.l-i -,)) -(1r2at::-nwi('..61c..i-a.n-e-:,11.1)-4,)).5)..:. , 1 -. . ::-o7-,(6(iur3a-7.(-('5!7.:-'711..1.7.--1..1)-5-).)),,/.-): - .- : " . t7:i--7,a-2a({a:0C;.:'ff.7l'.;1.':-.,77.:c.`.1i.13Z)3; 1),,..i. - -.. ..... .,c,nn;---acacC—"(1.-,".-T.i.3-1„),)i..l)- -7 )I ccP'-i-(,,(o-=f.DhC9.7-;p.--.,.-. . ._.. i"0ac7W((:cw--..._-01-r13Di-,3 aj 1)),,,-1s, . _ - .:,I-. .',c.7,_.7t(.C(.DF_-7c--.l.1<-."ii.„1:'3D.; l5)3ii.3,:..'..-...:,. ,-,•",7((((-t'ClE(-z((. l. -.DDD.f-1-70-.i.1,- 1i,.-,1.j,. i: ,- 1.•. -((0C9-751c:-((:-1(--a14-D1.:.i1T,I:.-:5.1:.1i)') )) 1'- . .- 'l ''c.::.',(0m-,FLn0:-Crk-:73.2.!:i1,,ISI-I.I),.-)i,1.). 2 '.- ;: ...(,-3'C,:f0(((.•cs7-((-cC.:•a.,'_:.D-j-i-eD.1-1:.Dj23L;33) )?,:.,,)', .. ('CC(a4E(7(:—.2('_'.-1..'i..i:3.t3-iq-i2)C.)r);;.)s' -,. (:c..-(-.:(c0-r-0-.c':t...5:'-1-.7y,,.1'".)_.iJ.. i): .1))'..,.'1....t T-r:i..wc,7:-or06g„(a.:•S-7fi..4,',-..t..1 )I.5i3:„)')°,l. , .. i.. (--07(a(.-9-(p--0-604,_ICc0"-.7-1,I:)D,.7"13))):):-).)' "I. -5 ,,,, .-, -ec1„CJ-0 (7 -:h..6,;73 , C-4(_(Cr:7-W(,:1E19--6O.0.01(:-71.15D11-iD1Il1- , .D ..0 r: (:(1N)3J d,,L---,q 0) ,):l: "---- .)n)-n.DE:( (0_ 11 6_,O._7'": ) _,„ - -a ) - . CD t- )., i 1) ,.j:9C1;5'(1) 36t) 11x0f: cL?-1iD6_ 8 .. : iiGD a./_L 1- =3‹,i,1:,..D _a35:-co ni::--, 3 c:?) ; ";30 56La-,. I a:1_.‘c)D._ o c(0 o 2.,::-:N5) ccro;:)< 7u-.1C1(( D C) ,:=a.(1)ll ,,bd_0co 0 3q'-/(co () )) ) - .!. 69 -' ' a) .7--) _ ,,.... 5 11.1 4,, ,..-<7,- ......I. ... 0 cLI (D. ••-•:.' C) Cl.) 1•13 (7:2 Ct) --::-):-•‘ 171)' ('K.-'J'-..,' .. 'CC71I')1 -T-°?- . •C.:-LL.):. .t"1-7111" WIT) ('IIh i0l) 71.70.1 5,-,°.3- ,:,4,-•:• ,,c), --'_„7,I1 1-3-', -. -,g.-.--.-_--5--.. ••c•'=..3. C,7,O:7_3)3-' aI-,D,,).) .. -DU-,.)j....• , f.._..,_.. 0:-0 (I) :.- !1t7771i6 )I3Ci10::7:(., ,DC_2.0„,.- =,j;<C: Ei c--( 77f0 ..3 ci. -.7., x a:, (D ;-...- ..... •,.- ,:,... 1. (1) :S0(U.„)-).). . =.-.9-..1 pFti.7(.1.1.It): _:c',-1,1.n-_'I N0-J-rc.,•.-s.--1, (D,.1*.*i':,;. " : si17((_1C'd' .7-7) -(:-(c((ifD1ii.).1,),:' 30 (1) -- - i- (• 4:.L2mF5i-07rii•!il)t - 2..i_S7r72.I.AD.l'..).,-"',CC6-Cr)D-: .3-•'. 9-,-- 7i51r:-• !ta1i:7);9)r (1) :067.-C(0uf5 /`i ,) rD_ 3(9‘;1m(I)--73.'3 0 01 2 . ?i1,7k -,5()-1[7-"765--:',.2'13 -, ac-f(.1):T3(C8..30 j-DA.(ti:) 2.1 5.-ir, =.7;o ((D (D I,ai -!-(:30:0-• CD1--) caL ci-u' aq 137brP0j(J) 3 (1) al(T9!oh C c 0 F; 1 ri- it) 0 •C-34, 9') a C.,). fi) •-,z CD .73 C 0 :.-3 D (.(-..) 0.,. :,,,-:-. Table-10 San Jaclnto 2006 Projected Multi -Family Housng Arihua! Unit Rental Gap LOW ifPGINIIH (BO% of median onGome) Very Low Income (50% of median income) ._....... 41 400 46,000 49,700 529,750 31,050 33,350 :T., person z1 person 5 pe rs o n 6 person3'5 3° :. 3 r)2(5;rs9or)u°) ?-1 person 6 5 person )person 7— 1-knisehold i Household I loosehold llousehold i Household Household Household Household flaiket Rent • 1,200 1,350 1,550 1,675 1,200 1,350 1,550 1,675 Income Calegoi y Low Low Lw Low Very Low Very Low Very Low Very Low o Max. ARC 777 83 932 1,001 64 719 /76 834 1,.101 (45) (4.5) (45) (45) (45) (45) (45) (45) Dollars Remaining for Rent 732 818 887 956 603 '574 .731 789 Monthly Rental Gap (it :lily) (468) (533) ((.64) (720) (598) (67() (8.1n) (88() Annual Rental Gap 5,616 6,390 '7,)62 8,634 7,170 i5 9,825 0,635 ROSENOW SPEVACEIK GROUP INC. .11.ILy 2006 CITY OF SA N1 JACINTO ISIONAR HOUSING POLICY & N L IEU FFF 14 8a0.Ja0int 2DQ8 Projeete( io 1 (Full In -lieu Fee) Annual Rental Gap Total Rental Gap (Years 1-55) NPV @ 7.5% of Total Rental Gala 1ak91e11 Rental ' lousing Fail (10Q% )'.Multi -Family In -Lieu Fee doe# 8eehario Low Innnn,e (8n% of median (axon son 4 person 5 person I-lonsehald Household Household 5,616 5 6I6 I 6390 7,962 553,662 629,968 784,946 96,426 109,715 136,706 1 6 person lousehold 3,634 851,196 140,244 Vel y L.41m Income (50% of median income) 3 person 4 person 5 person 6 person Householcl 1louseholcl Household Horlsehnkl 7,170 8,115 9,825 '10,63 5 553,662 629,968 784,94(3I 351,196 .3,108 139,333 168,693 182,601 Sant Mc ito 20O6 Pro eaten Rontai Housing EightjF Pefcen# 80% �luit .., . .. .x..... .,... ( ) i i=artily In lieu Fee ICis# ��enari Scenario 2 (80% In-Iieu Fee) Annual Rental Gap NPV cr 7.5% of Total Reulal Gap 80% of NPV Gap Low Income (80%of 31)ersoll 4 person ---- 5 person 1-lol,lsehnld Household 11ol.lsehold 5,616 6,390 7,962 96,426 1(1917'15 136,706 77,141 87,772 109,365 median income) Very Low 071177e (50% of median inc:nme) person 3 person 4 person 5 person 6 person Household Householcl Householcl Household Household 13,634 7,170 148,244 123,108 118,595 98,486 13,115 9,825 '139,333 168,693 '182,601 111,466 ' 134,955 146,081 Tapia 3 aointo 200a.ProjettedRental housing: Fifty i..eroerlt (5d'yof intieu,,Fee R enarin 3 (50^G, In -lieu Fee) Annual Rental Gap NPV @ 7.5% of Total Rental Gap 50%, of NPV Gap :enarin 4 (25% In lieu Fee Anni.i 4 Rental Gap NPV @ 7.5% of natal Rental Gap 25% of NPV Gap A(oles: ROSENOW SPEVACEK GROUP INC.�-- JULY 200E 10,635 1_o,,i Income (80X. of weclion income) Very Low income (50% of median in;0100.) person 4 person 5 person 6 person 3 person 4 person 5 person 6 person Household -°lousehold Householcl Household Household Household I loitseI old Household 5,616 6,390 7,962 96,426 109,715 136,706 48,213 54,858 68,353 8,634 7,170 8,115 9,825 10,635 148,244 123,108 139,333 168,693 'Io':,Cio 1 74,122 61,554 69,567 84,347 91,300 Table 14 Housing Twenty Five Percent (25%) In Lieu Pee Rental Coat iaenari Lx'w Income (80% of / 3 person Household 5,619 96,426 24,106 MAX. ARC = maxirnLn l 4 person Household 6, 390 109,715 !en i00007er) Very Low become (50% of median incon, 6 person 3 person 1-louseholrl Household 8,634 7,170 148,244 27,429 34,177 , 37,061 tfk)rrtioNlcr'ental cost allowance 5 person Household '7,06 136.706 4 person 5 person 6 person Household Household Hrnlsehold 8,115 9,825 11),635 123,108 139,333 160,6993 182,601 30,777 34.833 4,173 45,650 CITY OF SAN JACINTO INCH( ISIC,NAR`( HOI.ISING r'OLICY 5 IN LIEU FFE .STUDY 15 ...1.:77.,,... (C;iti.:: :c.....). ((-1'.., .(7: -'3d.., -,3, c.)..%-c...) (1, .6 "to ff.,. 'k.6")3 ti):-) a-C '-••6 . 71.3 '(-.)- -:- ..-(,)) (-) r.-.,- :..1 •:_,, (j) ro co (1) a) -(iii''').' .,:.(1; ..,u cc::: 0[1:1_.) te13-J. -(.17.7.11. ,-..), I -, .,cii-j:::- I (,(1),, co: , ,z..? To ...;•:.1 . ij: -D-I (1.1 CD .-. - 0 0) -(.1 --.... : ‘O .,,:. , a) .:C1.--'(:).' (''..--/) 3C: 7-.3 , (i) 0 1:1) () T SD lil a 73 a ----' (JD (cif )) (..- -; i• :iii_ _ pi ) -1.(jci': CD SA Ci.i 0 ,.) 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Lt,7pr,ci)_-, -e, ---). :::: :i)Dii)To-.' .1D i_ 9CI ii; (:5 :7: :-,Lo15-.3 3(1):6)-DC73 0 (D 5(1)-!' 1CD i1)" 1)ca 0 7 ;/,783_ ^'7i- 1.,;?,..-) (D7 co -:?c)„„(:c(i:::. ri;c) ,N(ni) " ll)-•Y:0.) -.,)•z: (I) --5 -- • (,,,,, Os 0) C) C) (a,.)- 'FL21.), n (±....)"1.._1C0::13 - =i.)I-ia n ;T_, 3 :.)1)o (3 )C() 3i- =(1,j::37Tfr CiJ11 (D (113 (D 0 03 0(1) 81_,ii) n (D (I) CJTY F NN J NT "r -FAMILY RESAEVEL P.. DRAFTFiNANC:IAL PRO(` RIVIA [Product Site Size: !Number of units existing: Number of units proposed - Phase 1: _ Unit Size (in square feet): PROJECT COST 'CONSTRUCTION: RUCTION: Or SITERN ERASTRUCTUREIUTLT.E-S SITE-: COSTS (including surface parking and an RESIDENTIAL BUILDING COST GENERAL CONDITIONS I. TOTAL CONSTRUCTION TOTAL LAND & CONSTRUCT ON ISOFTCOSTS: PRQFESSIONALiCONSULTANiT FEES PUBLIC PERMITS & FEES TAXES, INSURANCE, LEGAL 8 ACCOUNTING 61Vrap MARKETING DEVELOPER FEE (Administration & Overhead) CONTNGENCY TOTAL SOFT COSTS RESERVES: CAPITALIZED INITIAL LOSSES E INCOME OFFSET ,Rents from occupied mace-; OPERATING RESERVE ,ES R REPLACEMENT: TOTAL RESERVES NNRNCINu: CONSTRUCTION FINANCING FINANCING FEES 1 TOTAL FINANCING TOTAL PROJECT COST ncl.) 7.0 0.0 150 AREA't 304,920 304,920 165,000 3, 000 364,920 sq 4t. 'pprox. 1100 sq' SQ FT PER UNIT TOTAL -1 5C S .5C $87.5C b.50 998,00 $3,3,49 $7,115 S96,250 36,050 $112.464 3457,380 0 r 20 S14 3r,500` 630 3C0I S16,359,500 °!a of construction 2.50% 3.75% 7.5D% 9.50% 3.00% 5112,464 $1'-i.309.600: $ ger Bldg. I Sq. _ S oer `.,'nii Total 1 52.56 52,8 - S421,740 $3.83 $4,217 $6 2.610 67.67 $8,435 31,265,220 $0.51 $562 56=,343 i $3.07 $3,374 5506,035 S2.56 $2.812 341)1.740 i 19.8% 820.19 $22.212 S3,331,746 AL_OWA,NCE 150 1..00.00i 4,5C0) 1:30 $2.00 62200 150 $$2.00 62.200 5330,0001 :933C.OQC! $4.796) (5400) f560,000)) 4.7% $4.79 55,267 6790 0'50 1.3% 51.33 31,465 5219750 6,0% 56.12 56,732 S1,109.300 TARGET PRORT 11,5°6 Of Total Cost 'TOTAL COST 'UNCLUDING DEVELOPER PROFIT) $128.19 9141,008 321,131,146 $14.74 316.215 92,432.,382 () 142.93 $157,224 $23,383,528 !TOTAL RCVEit3'E (Gross Income Value .rents) 5106.81 3119,595 317,354..182 'PROPOSED DEVELOPMENT FINANC'AL GAP ($34,92) ($37,529) f$5,329.346) TOTAL PROFIT FROM PROPOSED DEVELOPh1E (519.38) IS21,313) ($3.195,384)I `,TSY, ROUP T•.J y J CINTO R S=sJ..✓J ��. E't`AC: �- INS- .. ra'-f. ,.—:�,! 'UL`I J:006 :N `LuSiCNAF ' OUS RG PO' ..' & IN LIEU FEE STUDY G"IT G. �f INTO ULTI FAM 1f HOUSING G Mpxyp,I GROSSr I CQ LCUlJ'TI Rental Unit lncam Gross potential income- k5t Units © $800/unit Other Income ( i 04%o Cr rental income Cross Potential Income- all vacancy & collection losses in 'Gross effective income p rating Expenses rn 35% Of G(',1 1Net Operating Income capitalization Rate VaIue Per Unit Annual ncome 1,440,000 144,000 1,584,000 ;ii (79.200) V f ',5i9,20 u 987,430 V J4,1 899 119,895 Conirnunnty Land Trusts In addition to in -lieu fees charged to deveicipers, there are other :s bons avafiehle o City to meet their affordable housing goals. A community land trust (OLT) is a democratically o trod ed nn t organization thha estate o pror ide controlled v:i:; -... non-profit Jrit that invests r real estate /�...� .benefits to the 10C2i community, particularly in staking housing available to ow income 'nd'tidUaiS and families. An effective CLT can make inc u ionary development easier for the developer by taking on various facets of the affordable housing process, es" s marketing, screening, and counseling, while providing the City with a more effective mechanism for ongoing monitoring and support to the buyers of affordable units. A CLT offers flexibility that can be used to create permanent affordability and meet the City's i, clusionar'y housing goats. Community land trusts have been estabiis e.d in communities across United States and Califon 4 distinctive a approach to E S the nlc....., ia�..., in California, offering a u�J_inC'EI the ownership of real estate, as well as a unique approach to community -based governance. n hi i1 t . I I' retains ownership of the land, while li��?g "lie ;lCl�fiv itself to those `_ilri^, Canr?Ct �'..�_ t�.1i'ci a�. tv.olcally afford to purchase, a home,CI T !and may serve various needs, but, when possible„, it is advantageous for the and trust to assist families in owning their own homes. When a CL i sells a home, it ,eases the underlying and to the homeowners through a long-term (usually 99-year) renewable lease, vvhich can then give residents and their descendants the right se wish to live there.' � r;� J^ .c u and far as long as they rv.:.h The length of affordability maintained by a CI i varies greatly throughout the c from several years to permanence, with the average being approximately 34 ears. Jurisdictions that require permanent affordability are Generally the most comicatibie CLT goals. Others set a minimum length or which the units must stayaffordable. This flexibility can be used to create permanent affordability even. when it is not recuired by an inclusionary housing ordinance. inclusiorary Housing - EOOY=Cf":iCS. Fulanoloa Calh g Paper #3_ Ik' ttu'.e for Commur'f. RCS ENOW SPEVer,CEEc GROUP NO. OTT OF SAID jACiNTO JULY 2006 iNCLUSIONARY HOUSING PCL;C.-' 3 ;N LIEU F_= STUDY CLTs have a range of techniques with which t0 maintain the affordability of indus unary housing, however, the majority of it clusionary housing programs maintain affordability through deed restrictions or resale 'controls. These provide clear legal mechanisms to maintain affordability, as well as formulas for determine^ig resale prices and the eligibility of potential homeowners: - Density Bonus Legislation On January 1, 2005, the State of California implemented several changes to the State's Density Bonus Law. Senate Bill 1818, introduced by Senator Hollingsworth, requires cities and counties to update their ordinances and bring them into conformance with new State standards. Under the prior Density- Bonus Law, the State alloe for _ L� %%u density bonus when housing projects provided between 1 ; and 20`;/o of the total units as affordable. in addition, provideat least alternative to ab e. cities and counties needed to !ea7c onep i tit i affordable u' The most repent change in !am/ an!''Cantly reduces he providing dit'g aisOry b e nits, The � Sly, � �._; `,�i:.,c5 _... amount of units that a developer must Create in order to receive a density bonus, .and also requires cities and counties to offer between one and three alternatives, depending onthepercentage ofaffordable 4 the developer provides. It isimper ad that the per^e tape units that , of San. Jacintois cognizant ^i h mandated state _z City Cif S✓ the ai td fed requirements when rv� vning �r indusionary housing ordinance and in -lieu fee programs:. Overall, the City is obligated to meet thefollowing in standards,toSB 1 �clic•��.i�g starch: s, according 18 r8 ® If at !east 5% of theis are'orMab'_ o e i o .e he eholds or 10% ,.;nits att�.._ !: tJ v rf-sow +:C .uS..:i� of the, units are affordable to 10Alti i rviw'e ~iouser ..:lies then the inrriie for a 20% density bonus. o If 10C/ ofcondominiumn n dd development nt units .od- ;7,o :,r planned ..edr�Up,l"rre.�, nits are ��. ,:��."i�,_..e income households, then the project is eligible to receive a 5% density bonus • For every ry 1 o,o increase / of veryow income units above the initial 5% threshold, an ., additional 2.5% density bonus must be allowed. • For every 1% increase of low i icorne units above the initial 10% threshold, ar additional 1.5% density bonus must be allowed. • For every 1% increase of moderate income units above the initial 10% threshold, en additional 1% density bonus must be allowed. • These bonuses reach a maximum density bonus of 35% when a project provides either 11% very -low income units, 20% low inccrne units, or 40% moderate income units. in addition to these requirements, several other provisions have been modified. Cities and counties must grant more concessions or incentives towards developers, depending on the percentage of -affordable units provided. These options include, but are not limited to, reductions in zoning standards, design requirements, mixed use zoning, and vaned parking standards. Also, increased density bonuses are available to those developers that donate land for residential use. The land must satisfy he roU J_tk ing egiuitements:7 The project must have the appropriate general plan designat on and zoning permit fir. E c_ion a unit f 7 very low income households in i�,E,;:eft construction units affordable to , 'v i :.:� e an n le i^ the unitsi the residential development am,,ura .or. less than 1 �r"fo of in the s!�, rtia! wlc�, ......t. Cailforn..a Chapter of the Amercen !an ling Ass,,da ion Answers to Frequently Ask! d Questions R_egar;"dln? S.= 1813 ROSEPlC'P! Sin AC 9'OLJP INC CI I OF JACINTO dULY 2008 INC L`tS tuna,1 9-N -r' .! p^ C & l(ti — -- 19 The project must be at least one acre it size or of sufficient size .' development of at least 40 units. '-e project must be dented by adecLaie bublic facilities any I s:'uc ire e increased abundance of inciusionaryhousing ordinances has triggered some concern relating these policies to the Costa -Hawkins Act. The Fe Costa -Hawkins Act regulates local rent control by giving the owner of rental units the right to set both the initial rent and the rent when a tenant vacates the unit. Several Southern California cities have been ha`lenged on their inciusionary ordinances, when applied to rental housing, on they basis that they violated the Costa -Hawkins Act. However, in reviewing several of the cases, the Cities were successful in defendingtie Ordinance and ledaiiiy. However,language in the Costa -Hawkins Act specifies that the stipulations 1, when the owner of rental units have agreed, by contract, with a public agency to rents en _ n consideration for a direct financial contribtion or any other farm of assistance." nce. Inciusionar rental units should be exempt from Costa -Hawkins when the project includes both a contract with the local agency, and a,7 of theincentives listed in the density bonus law.' As reisult, density ..+c,:!,sesand icther d ve t-nent concessions for rental inclusionary units can avoid this problem 4 A Public Agency Guide to Carer o;",1a Density- Bon iea1J'!. Barbara `4 aU'L, v-?u _,?yQ". ROS_NOVV S EVAC=K GROUP 'NC. '. I •= SAN N .JACiN O L Y 2r05 NNCL';JSiG A . IOUSiNG ROL t N I_. 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(11 '..a. i''' :3.'.' .9 .<': "i.' -1 23 -) fil (0 (0 _= ci,, , c ) To ensure that developers are provided with sufficient incentives to develop affordable housing within the Project Area, it is recommended that City Council adopt the following guidelines for the inciusionary housing in - lieu fee: o For new single/multi family housing in which the developer will not provide any of the required affordable units, impose a 100% in -lieu fee for all affordable units not constructed as calculated in the preceding section of this Report; For new single family housing in which the developer will provide 100% of the moderate income units required, impose the 80% relieu fee on ail affordable units not constructed as calculated in the preceding section of the Report; o For new singe family housing in which the developer does not provide very !ow income units impose the 100% in -lieu fee for mufti -family housing on all affordable units not constructed: fl For all units in which the developer is required to pay an ln-lieu fee, the developer must also provide to the City a fee in an amount to be calculated on an annual basis for the monitorino and administration of the program. The in -lieu fee is to be the whole or a fraction of the iestimateci subsidt cost of providing the affordable units, derendinc on ha riiercentecte of units by iririome category to be prOV ded bv the developer. For any fractional unit to be provided by the developer, a frection of -ieu fee may be paid to the City in ibrocortion to the required unit. For any affordable unit constructed in excess cf the obligation created as a result of the inclusionary Housing Program, the developer may receive credit towards future obligations in the City of San Jacinto. The in -lieu fee is to be paid at the time of buding permt issuance, iz u. It is recommended that City Council consider the development of a Community Land Trust (CLT) to assist in meeting the inclusionary housing goals of the Agency. An effective CLT can make inciusionary development easier for the developer by taking on various facets of the affordable housing process, such as marketing; screening, counseiing, and other assistance. CLIs can aiso provide the City with a more effective mechanism for ongoing monitorind and support to the buyers of a,ffordable units. A CLT offers flexibility that can be used to create permanent affordabty and meet the Cityis inclusionaryi housing goals, For those instances where the develope,r opts to build the affordable housing units or pay an in -lieu fee approved by City Council, it is recommended that City Council approve the use of a density bonus to provide increased incentives to provide afferdabie units i.ivithin the community, OSENCAN SPEVACEK GF'.0P INC. CET OF SAN j'ASINTO jULY 2006 USiONARY POLICY a iN UE-1.; FEE STUDY 7'7) it is recommended that City Council consider several alternatives to offer to developers in addition to in -lieu fees in order to comply With those most recent changes in the density bonus lair. The following recomme.noations are based upon aiteric^atives offered to developers in other Southern Cali l..a €!fGr5ii2 rE cities.. These alternatives can include, b Ct are not limited to: ❑ Reduce parking requirements for those developers who pr-vide inciusionar; units. .Allow market rate mufti -family developers to purchase".s„ _n '-ord b' cret�ll., i. c 3r �,satiiE housing developments built by other parties. Reduce, defer, Or waive various permit fees d taxes fore • ers his c i and ;� s e '�aic�.,.... ;v -n include fees associated with reviewing planning applications, building plans, Construction inspections, and other SerficeS. Allow for the construction of off -site inclusionary units built by he de'•I- lcc r . Encourage the purchase and re.hadiiitation of sub -standard multi -fan - the developer for the provision of incluSiOnary units. it is recommended that City ounc-El adopt a progressive inc usionarf housing and in -lieu fee programs, implementing the ordinance in severa stages, in order to provide the opportunity for adjustment to local housing developers in the area. For example, the City Council may choose to gradually increase the in -lieu fee over a five year time horizon. Alternatively, City Council may .chcose to annually increase the per .entage "f inclusionaary units required until t reaches the desired level, t is recommended that the Agency pursue the purchase of of ordabilit= covenaaan is within established rental projects. First r a". city for such purchases shall be within the Project Areas and secondly Citywide. of th highf l:i� units, Because the cost of land and construction for new multifamily purchase of covenants on existino rental units is an effective and efficient use of the Agency's Housing Funds. Because multi -family housing within the Redevelopment Project Ares is limited, it v may be both necessary and advantageous to purchase covenants on renal units outside of the Project Area. The REDEVELOPMENT _AN provides that the reservation of affordable units outside a project area receives a 2 for " credit (or 50 ). r it is recommended that the Agency pursues pui,ifs c 3 r e pa tnerships with existing property owners and developers to facilitate the purchase and re.habilitation and/or rehabilitation of deteriorated er distress rental properties cityw r o n- p"�.8'i:3'd''? he community and provide inclusionary units. This approach would enable the Acienc'v to deal with deteriorated multi -family properties both within the Project Area and Outside vvhile addressing their housing obligations at the same time. identify non-profit organizations that are active in the community who mamay be partnersin the provision of affordable housing Dorn.. within thi City viable f3a�c rs i,, .s llsiv+^ a;¢v;w3I')i._ a,^v!.?aii,w ., «�. ��r t..;iiltf.,a ii{_r .[R the :..•: t. ROSENCIN SPEVACEK OR ouP itNC. JUL. 2006 r_'..rTY OF SA`l JA.Cili O : NCLUS1ON.ARY -I✓ 'SING POL r Y & iN LIEU _ _ r'0DY -J ' (11 (l) rl) C-)) (n (1) (4 Ill (13 +3 '-CS C ID(1) () -0 ro i ,, , 0 t. c a l) C. (1) 0 f.- S_L c] (- (13 s,• 4= • (-- a.) U o L (n Z) (� ( r) ?< t_ l) - - 0) (1 C) (U (- ;I; in O Li WI r� 1:3.rn ` L_ ,.< 0 >, _ C) 3 3 (13 Cn (n C37 Cu cr. ,,. 1 .(_ c_ u) _(_ C) 0 C. .O -S C:) (n N '�) ( ) O) -- n) ' s (- a) C) Z) L _ (1) 'it' C (n N ' (13 (t3 (13 Qy 0 -1-[1 S_ 11) C1 C) L ,o--.. s_ a) .h, (1) (.1)S) D (1 U (U 11 •,3 `J RS ( 4 1-- -- 'C `Ii U :3 (() (U 0 U) a) (6 C C3) -0 _ (3 E (U (") P J "(-1) C: {- C) OJ 03(J 0 - n 3 (n ay Cl _ N t._ al ("1.) (U (13 (1) 3.2 Q) a, , C CU fU C) N a) (I3 U "(1 NS S a3 -e) c ,� L_ 4✓ f (1) llf Cr- U) 0 (l) (t) C) ti:� C:.C) (U (n 57 _3 _3 C)) U +U >, c N .(_' (.A (U iU (1 U) (1) u) L) .- CI_ 7 0 7 li U) (' Q1 Z3 4(3 0_ ll) (U i�L: 0-)77_ (� C.C"3 Q X a) '-- CL _-L: _ . (:L (I) '0 (13 (13 a3 ili (CS 0 (. 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(f? .�_ (1) f) (:) (z rf) (.n,m (.) . l.r_' at n : - ,a) (n :i �-I h-- 0 ()a • (1) c>a 11 R; u) (CS 0 (n O _ (ll a) U '- () c1 ) y) (a n 1 cis (1) C) C(l) C� -(7) (lt)) 01 C:_) d) (() (1) 0 [U all f1 u) x) 13 ) Z7 a) a) 0 a) � !) i (n ` N (fl T3 r -7', 0 C (11 4.. r� ai (a 41- O a) t:1 qS_iA �>T , (6 U (1)(1)> C. rT `- C)(1.) _ ](Cf ,Q-(�LL-&() - -'T7LU (On (,) p-'�) i`. 0(1a. : 1 0ozi () T,>: :%Ou Uv) [(i (I.) -- _-i)q > F) C) C5 •(;)' -CI - , +n u) (() tU ID CI ' 3 03' ) a) m a n (3 0 C0 :) (3) ( a m,fJ to d) (05 L1 c •i3 0 G( 1) ai 0) t— (U 13 N (ll O a) (0 ID Mu 19 .{J f,- VI -t, it (1 ,.',• ;.. to C: 0 (—ciJ� .0 rJ) s) F. (1) [U (IJ ,I) q) (U t (I) (7 (:3 (I) fl) CO }- i 7 t7) ) (m 0) l Sr «) U (_ a) .i� a) ((`.) i`S -0 an b (1)C).. U { . 0 i_ ((3 0 0 (vs I— N as 01 X ui 1) ..`i (3 (I) I— : a) i (I) ` (U •n' os :..(: ,.L.m r."C3 C U a) 7 (l3 U (I.) ,. , () C� Tz C) s... (5 ... . C (U :c_ () (13 0 IF S-' 0 :3 pj L (!) �ti ).. (I) t ()_ ::3 L: «i as C1) f3 '"' (_ (_; (I) e(-. -• .. 0 (U J ». c Jul: y m (y 1a 1.5 ,„- C7) L (1) ,'.� O •5 �:. 0 ;-' () 0 j 0 (i)` .2, c= 'i. .C) ii (S1 ((3 ;::1 (13 f')., y (I) C) if) O tO (U !) APPE DA E3 R V ne ('7 ftrre�c RS D COUNTY INCOME G N 1f.1€fFFtsm f.. COUNTY .►fl i Afforahie Housing Costs for Home Purchase Programs pg r-ampul of "tossing alai Community I7evelopnrenr IncomeLimits. drifed April 6, 2006) 1 Person Median d-lousehodd Income $40,300 .? Per on 1Ion sehoid Median Income..: $46,000 --_ 3 Person Median Income: Household 4. I''c $51,800 Median d'come: r son I doreseholyd $ 5' ,5a2O Income Cotegc3rY ��. Annual income ul __ ._ 1VIonTfily Affordable . _.___._,.. � _ Income Category _._ _._._n Annrnl Ins orne iTirfi y Affordable I;ir 4uirr Income Category t__,_�. -Annual Income y ��ontfil- Income Affordable, Category Annual Income Mol 0Iy Afrar.aale Very Low ow (3) Moderate 4 $20 150 $32,200 $48,300 $504 $705 $1,293 Vely Low Low Modei ale _-_ $23,000 $36,800 $5 5, 200 '$575 $805 $ 1,476 Vely Low __._ $25,900 $41,400 zlausinr $648 Very Low $28 750 $46,000 $69,000 _ $719 Low Moderate `l>907 Low $1,662 Moderate $I,OOC $1,845 $62,'100 5 Person I Iorrseho1cl Median Income: Income Category Very Low Low Moderate 6 Person household $62,100 Median become: $06,700 Annualori[lily Income Annual olr[fity Affordable Affordable ble Income Category Income _,:t-Jniisirin ________ WV JOlL5il $776i Very Low $33,350� $834 $31,050 $49,700 $1,087 Low $53,350 ( $1,167 $74,500 $1,902 Moderate $80,000 1 $2,140 7 Person Household Median Income: $71,300 Income Annual Mo�fil Affordable Category Income 1 Category Very Low $35,650 $891 Very Low Low '57,050 $1,248 Low Moderate $85,600 $2,288 Moderate Pherson Household Median I icome: $75,90(3 Income Annual-McrfiTy Income Affordable _________.LSu?n- $37, 950 $949 $60,700 $1,328_ $91, 100 $2,43 5 ROSENOW SPEVACEK GROUP INC.. JULY 200E 27 CITY OF SAN JACINTO INCEUSIONARY Ii0USING poiICYF IN I_IE L) FEE STUDY APPE IX 6 RIVERSIDE COUNTY INCO RIVERSIDE COHITFY 2006 Affordable Rent Limits E GUIDEL. NES bl CO Me figures based OR) Depavanent of Housing owl Colmminity Development in( (Mir, 1.3010s dated April 6, 2006) Person Household Median Income: $40,300 2 Person I lonseholf Median Income: $46,000 3 Person I lonsehold Median Income: $51N0 Person Household Median Income: $5 7,500 Income Category Very Low Low Moderate AntaI Income (I) :1;20,150 $32,200 8300 Nrcimaiy" Affordable (.2) $501 $605 Income Category Very Low Low $ , 08 Moderate Mti.1,1.51-111.5014. 1111.611153.112:121i..191191.P1 Vn 5 Person Household Median Income: $62,100 At triuzll Income lVfFinTiq Affordable .Income Category Rent 5575 Very Low $690 $1,265 6 P11.1'5011 Household Median I /II:0471e: $66,700 Arinu al Affordable Income Vlonthly _keel Category It wom e $25,900 $048 \/ery L 0 \he Low1 $41,400 $777 Moderate 1 $62,100 1 $.1,125 7 1 erson Household Median Income.: $ 71,300 1, ow Moderate Annual Income $28,750 $46,000 $69,000 -11.71e nig IV At lo Kiehl gad. $710 $863 $ 1,581 11 Per son I knisehold Medial, Income: $75,900 MiTtriry Affordable scmg Income Category Annual Income income Affordable Category Income Len t_ Annual Income Affordable Rent Category Annual Income --urrT-TirTryr Affordable _Rani $39.1 Very Low Low Moderate $31,050 $40,700 $74,500 $776 $932 $1,708 Very Low Lov/ Moderate $33,350 $53,350 $80,000 $834 Very Low $1,001 Low $1,834- Moderate. $35,650 $57,050 $85,000 $1,070 $1,901 Income Category Val y Low Low Moderate Annual Income $37,950 :1160,700 $91;100 ..... $1, I 39 $2,007 ROSENOW SPEVACEK C12011P INC JULY 2006 CITY OF SAN JACINTO INCI lIPJONARY HOUSING POLICY 5 IN 111.0.1 FEE STUDY 28 Jodsdl .11,l hills Nroyo (rnn(le Llaniilo Brentwood Cnri5bnd (':hula Vista City or 305hl Balboni r 3mnde Colon A FEN 1` IX IN LIE t OMp =, 'I OGRAMS IN CI LIFORN1 . „_.. AFFORDABLE (IOUSINO IN LIEU FEES FOR UEVELOrERTII s ROUIi0OUT CAIOONIA IF ..�.._«,......_,...� 1f ri'n i',r rnr hij vaTin County ProluctSlz h Regrod InLieu Pee Amnon! Comments noolnln I;)ll lalNl Lrglre I n, Nmelu6 �...-.._..I l in -TEITETTTirf,r rrdoc „m.�-.s,....,,,. ..�....__......_......e ....__ ..e�.. ..____�..m ......._...._,...._m.,._,E. _.._....< ,9rn Luis Qh'pn 3oy1IIa Coln Son 1)11,4 n inn Diego 3mda rfilbara 15111,1500 301,01,51 Denville (anon Cesln fhrvls 30)0 I/el Mar f'.nn Ilie,tr Encinitas ;inn Ulegn 0,emnnl AInrirelln Cxd40 1101115 Sarlrem Ihne prance Linn Bench °tau ge „Wel61 o5 GSIos brim noxlr Lnlfe Nemedn 6e1101 d1111.050 Paola Clota Mono 10 0 10 Il If ir In 50 I'2'S nr the e5ltmeled lend_ enprnvenlenls. (Hui nnnsinullfun 1:ad cLlforiv lint hive binkcl rale nook f11111e men ey the crnrnnu my hmnn devaiol n'd owl on nftnadnble null Ievhldcrl rmlio of 10''r150wnrnuh In 1110 «vilely 11r0 anlolral of the io-11011, nmirw l00v shall be de leun:ned hy n resolllllon of Iho rilycnunl1il. 11heamount of Ibe imlieu housing fee, shall he wificimd to nral;lde Ilre see u= lnnnln^l: type, end 5.00100n rrisbihullar or hlctrl(ionnry n11110l the sonic aliarrin14111y levels Ihnt vmold ollmrwlse I',e rnril(Vol Tire In ilnr{ hewing fee else shell ilwlnrla an odndnedi Alive foe srdllelmd In amrcr the vv.la of ndmb11slo-lfrrli the iu-limr Irrvis1110 lee. Approved on a case by c on0 bns15. 31111. iidei $235 jpo dppopr rlel:ln null type and nfhwdo0Npy S-06 o7ft 510 375( 511(11111n n, 10(0 The Indies tee to he (mid tar enen nrnlROt (all: d051l11110 unit shell he Piaeh ('I5°4q perevil of Mr subsidy 501'tl01 10 make nlfrxr9a lde Ica [coven icrorhe Imo, bold oar. newly-conshuclod, typiaol nl1PrI led hansinel null ArosldenRal development of11111e 01!coos i may comply with the requllemenls of 11119 nhopler hy pnylnu nil in -lieu lea as estnbl1shed by cau1111 msolol1rn, ns it may ha amended from lion Intone The remelt may nnnunlly review the tea and limy, 115e11 tat the evew. ndlllst the fee For any pineal nerjod during which Iho e.naecil rhres uM rnviwy,• Ilse le.o null lcliznrl by this nllrseclierr,fen arnixmis will be ndinsted mvue hy the rib/ manner loved on lhel ollgmcllm 'I5 Fed hales 25,35 in In tti 1(r .1h 25 10 I be in Ilea fee shall Ire cuieulnled hosed nil Iho s111551515 (0I!ornr(Inl between %lint a moderate income household learning ono ha(rL ed lee percent (1101151 of qurrenl BMW) medinn Income), odic Merl (rc expe, led house! rnlrl 51s0 nnrl appropinle (lull size, can niforr1 to pay for noosing and Me oslimated Iolel ran:l of a enw, non- PM r.1111 of approprinie sizeas determined to the snlisf00111l M the I ono die in lien fee shall he calculated on 0 Pleje :hhy ()vied basis •sill, Ilia per coil tee paid srlle d to review and epprovil by Ih e Chien of Planning. rho Clty hose S 1R0Pl , most build dmindonery pragrnm, Intl Council Ims the flexibility In allow (level col s to pay no in -lien fee. Clevelry era hove nol boon successful in nllompls In pay the in horn fen $111.440 h151eod of builrNrg 110/10. flolermin ul by Gily Council Pees estnhlslhed by Clly l::ounlnl aml mo;Fhrrl 1«en Ihne In time S3(1,113;' 590,000 5'I l3 4/1 Case Iry case pi pirm. City is mainly hull! out 030.d.10 The Cily true a 5TRQW5 muss build Induvirnrnry program, but Council has the tio0S;114y to allow developers to oily nil 111 lieu foe. I:lev0loper h eve lid Iran successful ➢1 onrtmpls 'obey ore in r lieu lee Instead nfhulldleu (mils. The In -lieu lee is hissed on the development end of nil n1fndable veil i-) county specified sole pi ire of Iho effonlabll Ilhil 11(55 set by C..11y Council iiiiilaincluled lion( time le illee laylnotil of on in Deo fee hrillh-rna a 00011 PI II -rf nhrd Fire not dhen,ise _shill hoot by ree lu(Ion of the !von counIl^ 11 d. Inns t.e :h ll he Gerdes hens, Lenhar. 1,1111011011. nrk'nlar' 1 I( I'aeilic Itrxnec; alms censer 31`111nye. I moles ROSENOVV SPEVACEK GROUP INC. JULY 2006 20 CITY OF SAN JACINTO I NCLUSIONARY HOUSING POLICY & IN LIEU FEE STUDY APPENDIX : IN LIEU Nr ' PROGRAMS IN CALIFORNIA AFFORDABLE HOUSING IM-LIEU PEES FOR O0VE(OPERS T ,11RO 1Gl{oui CALIFORMIA\ .l (t '.n. 1 r JII r1Y f ! .I S13 r2 111t11551,11,u Fen Wrr Mint Conlll .I IS Ibr11151i [,attiv551111,1 lee, 5, aBrr InAraldevrinpr1Irtl1010J lotnIdIN-lars :hailbn t1lnbl<da+ Ile 1111elencrl between the le:nning :I,Iy 'emend of median hloolu0 hrc ovnere1rip u111''; IUv Percnnl of me Men nm<r:e d,r lentil 511051In pay tor bnnsing. and Ille o.Amnlod col of a nlnlisel Pale mill nl applvpdnle 5,5,e,1,, ho deler1111ned by the Cmmly. This <ktterenlial e15111 be u5111i010 by the mgnilvd ntultlrer M inclnsimlm'v mIil' 15 d0en11410'ehtln Ivml rlellfee Inbe paidnr.lir:n of cormlincling heimemalNol nlle It011. 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Forexnrnp1e, tf a deaelniler Is mpu,r-Il to trldld 2 our Iralmlen Im11'. pl the lomalld morloram Bwmm, Iuvnls, Ihoy nmtld nhenvr In hc11,1 1 Ihmn- vhrom halt al thnvery lan.level TIIIs nnn'o5 the Chy to gn111 a fam(yshmd unit (1*11:1, isneclicd in the cornr,5 nityl_ :dlde11H tkvelolrl ,a,e.0111101,014 n S.: by 1., Iilolll V le.:: k(IoI,en. andi..hnnams. Un0Mnpin9 fees SG. I.II5 q. A.for apk. e1I 1l V Hi I rho lily he. n sll,Gun `•cite lagei aheo (10- 20 A).'I!Hi wutcs old 1u to S52,fg(I Vernal@et Iale unit. I: Ien PIgec't 1.)110 111,3 filly Imo a ,0dtng Cale 1(010nrm:1,1 h - im 11eo fees, moping 110111$055 bn ieaj1I0/1. ol1.IpX1 sq.1t. In S,10 950 for 1,54.5,, of 1.1150 nq. R I'm HI plvlelds Urcalar Alae 5,0110 sq. ih deyclopeln u11c1 p0Y S11 ill pm'sg0are tool -0 tln3 iene1h:11 As:pi lf001 Er Ir:nlalbIl 'BIC F1Nrml f e r 151, ed ll lee pm II rc of 1'I hie rinftl -Ic ry cpr,IAnn.ale prcr-of n(h n1ab1e ant 1 he In kt, fee Is hnced nn th da1elnpnlnIilcord n1 rm allroJallln w1A t-1 mllriy d case [cite aloe 1l5,,d2Me evil fl 1,)11olt In1 nl wq In171AT7_ .w op 1 1 Ill Inlart I f 1 ,pleb `1emax ❑nnee ROSENOW SPEVAC EK GROUP INC. CI t'Y OF SAN JACINTO JULY 2006 INCLUSIONARY HOUSING POLICY & IN LIEU FEE STUDY Overview of Affordable Housing Obligations AN AC 1 ,R City o S nJacinto Redevelopment Agency Inaluionary housing programs began in C;.aliforr is during the early 1970 s. Inalusionary housing requirements are mandaod by California Community Redevelopment Law, Section 33413. Need for an effective incIusianary housing policy has become increasingly critical in growing cities like San Jacinto. Housing program which requires residential developers to provide a percentage of total units at below market rents or sale s prices. The prospective cost to development can be mitigated with economic incentives and alternative compliance options. RSG will prepare an economic analysis which will measure the cost of alternative inclusionary requirements against the value of incentive packages. Jurisdictions free to design programs and strategies for reeking inclusionary housing requirements. Practical questions and concerns for policy -makers. What makes a program effective? What are appropriate goals for a policy or ordinance? What are the key variables or features in balancing developer concerns and community needs? The most significant policy points associated with inclusionary housing is the. t . Size of the inclu siorrary percerntage; ? Income -targeting of the housing; Alternatives to construction on -site; 4. Developer incentives; and Length of affordability. • Redevelopment agencies may use Housing Set - Aside Funds to assist in the production of inclusionary housing units. • Inclusionary Housing units must remain affordable for a minimum of 45 years for ownership housing and 55 years for rental housing. • The Agency has produced 147.5 affordable units through Decernher of 2004. • Existing inclusionary unit deficit as of December 2004 was 59 units. • RSG will analyze the units needed over the next ten years, through FY 2013 14 and the remaining life of the project areas • The current RHNA figures cover the time period of 1998 through 2OO ., • The RHNA numbers indicate a Citywide need for 5,339 housinc units to be dispersed in the following manner; 1,795 upper income units • 1,267 moderate income units - 898 low income units 1,379 very low income units • It is recommended that the City Council adopt an Inclusionary Housing Ordinance with an In -Lieu Fee option • Fee scenarios presented include; Full In -lieu Fee 80% In -lieu Fee 50% In -lieu Fee 25% In -lieu Fee It is recommended that the City Council set and revise the fee annually so as to meet current market conditions and costs • That the City Council adopt an Ordinance requiring all housing developments within the City to meet the inclusionary housing requirements of the CRL • That the City Council adopt an Inclusionary Housing In -Lieu Fee Policy in conjunction with the Inclusionary Housing Ordinance that allows developers to pay a fee in -lieu of providing the affordable units required under the Inclusionary Housing Ordinance • That the City Council adopt specific guidelines, contained within the Report, for imposition of the inclusionary housing in -lieu fee • That the Agency pursue the purchase of affordability covenants within established rental projects first within the Project Areas and secondly Citywide • That the Agency pursue public private partnerships with existing property owners and developers to facilitate the purchase and/or rehabilitation of deteriorated or distressed rental properties TO: FROM t SUBJECT: AGENDA ITEM' July 6, 2006 The. Honorable Mayor and Members of the City Council and the Agency Board A. Haviva Shane, Deputy City Attorney Joint Public Hearing for Approval of the Santa Fe Street Affordable Housing Disposition and Development Agreement between the Redevelopment Agency of the City of San Jacinto and Palm Desert Development Company, a California corporation RECOMMENDATION: Staff recommends that the City Council and the Agency Board, by motion adopt the attached Resolutions approving the Santa Fe Street Affordable Housing Disposition and Development Agreement ("Agreement") between the Agency and Palm Desert Development Company ("Developer"), and that the City Council adopt the Health and Safety Code Section 33433 Summary Report ("Summary Report"). BACKGROUND: Since 1979, Developer has constructed and continues to own and maintain numerous successful, quality affordable housing projects in Riverside County. Developer finances the construction of low and moderate income housing through the use of tax credit financing obtained from the 9% Federal Low Income Tax Credit Program ("9% Tax Credits"). This involves a competitive application process which is governed in California by the California Tax Credit Allocation Committee ("TCAC"). 9% Tax Credits are awarded based on various factors including geographic area, income targeting, development costs and developer experience. Without 9% Tax Credits, low and moderate income housing projects are difficult to finance because the units, once developed, are made available at below market rents. Developer has a strong track record with TCAC and is experienced in preparing 9% Tax Credit applications. Page 1 of S RVPUB1HSi LANE1716269.1 The Agency is required, pursuant to the California Redevelopment Law and under its own Implementation Plan, to improve and increase the supply of affordable housing in the City. Under the Agency's Housing Compliance Plan, which is part of the Agency's Implementation Plan, the Agency has a current deficit of one hundred -and thirty five (135) affordable units which the Agency is obligated to add to the City's housing supply between the years 2004/05- 2008/09. In order to address this deficit in affordable housing, the Agency has. been negotiating an agreement with Developer. In furtherance of these negotiations, the Agency acquired the property located on Santa Fe Street between Esplanade Avenue and Oakwood Street, commonly referred to as Assessor Parcel Number 439-070-022 (the 'Property"). The Agency selected the Property based on its central location and proximity to amenities and public transportation opportunities, which makes the Property competitive for the upcoming round of 9%o Tax Credit applications in July. Even if Developer successfully obtains an allocation of 9% Tax Credits, based on the currently high costs of construction, Developer will have a funding gap for the Project. The Agency has agreed to assist in funding this gap, in exchange for affordability and maintenance covenants to be recorded against the Property. DISCUSSION: A. The Agreement: The Agreement provides for the transfer of the Property to Developer and the development of eighty (80) affordable units on the Property, plus one (1) additional manager's unit. The Agreement provides for the development of forty (40) two -bedroom units, and forty (40) three -bedroom units subject to the following occupancy restrictions: (i) Eighteen (18) of the units restricted for lease to households at or below one hundred twenty percent (120%) of the area median income; (ii) Thirty (30) units restricted for lease to households at or below eighty percent (80%0) of the area median income; (iii) Thirty-two (32) units restricted for lease to households at or below fifty percent (50%) of the area median income. (iv) One (1) unit restricted for use by the person or household that is managing the project. The occupancy restrictions will be in place for a period of fifty-five (55) years, and will be recorded against the Property pursuant to a regulatory agreement. Page 2of5 R V P UB\HS HANE1716269.1 Q,1..N 1 V NV B. Required Findings: The California Redevelopment Law (Health and Safety Code section 33433) requires that prior to the sale of any property acquired with tax increment dollars, the legislative body must adopt a resolution, following a public hearing, which must include the following findings: (1) The sale of the Property will assist in the elimination of blight or provide housing for !ow or moderate income persons. (2) The sale is consistent with the Agency's Implementation Plan adopted pursuant to Health and Safety Code Section 33490. (3) The consideration for the sale is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the sale. The Agency made available for public inspection the Summary Report that provided information regarding the cost of the Agreement to the Agency, the estimated value of the interest to be conveyed, and an explanation of why the sale of the Property will assist in the elimination of blight. The Agency placed a public notice in the Press Enterprise on June 23 and June 29 to advise the public of the public hearing and the availability of the Summary Report. The above three (3) required findings are addressed as follows: 1. The sale of the Property will assist in the elimination of blight or provide housing for low or moderate income persons. The Project will provide eighty (80) units of high quality multi -family rental housing. The Project will assist the Agency in its efforts to meet its housing goals as set forth in the Agency's Implementation Plan and Housing Compliance Plan. if the Project is constructed, the affordable housing deficit, as set forth in the Housing Compliance Plan, will be reduced from one hundred thirty five (135) units to fifty four (54) units for the 2004105-2008/09 period. The Property is located within the r'edevelopment Plan ("Redevelopment Plan") of the San Jacinto Redevelopment Project Area ("Project Area"). The Project Will eliminate blighting influences in the Project Area by converting vacant land which is prone to the accumulation of debris and rubbish. The vacant land will be replaced with a modern housing complex that has been designed to incorporate aesthetically pleasing architectural and landscape features. The regulatory agreement to be recorded against the Property includes maintenance covenants to ensure that the Property is maintained in good condition. The Project will generate additional economic activity in the Project Area by creating temporary construction jobs, as well as permanent maintenance and management jobs. Page 3 of 6 RVPUMF1SHANE\716269.1 Residents of the Project will also create increased demand for goods and services in the Project Area. 2. The Project is consistent with the Implementation Plan. The Project is consistent with the Agency's goal to eliminate or alleviate blighting conditions in the Project Area, and to provide low and moderate income housing opportunities. The goals of the Implementation Plan, including the Housing Compliance Plan, include: (i) increase the supply of low and moderate income housing; (ii) Leverage Agency Housing Funds with other resources in order to promote the development of affordable housing; (iii) Provide priority to proposals that will eliminate or prevent the spread of blight; (iv) Create infill housing; (v) Encourage the development of multifamily rental housing units. The Project will leverage Agency Housing Funds with the use of 9% Tax Credits for the development of a high quality, affordable multifamily housing development, in a currently developed area of the City. Thus, the Project is consistent with the goals of the Implementation Plan. 3. The consideration is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized bv the sale. The Agreement provides for a sale of the Property to Developer for Eight Hundred Eighty Four Thousand Three Hundred Dollars ($884,300) ("Property Purchase Price"). The sale will be made pursuant to a purchase loan which will be repaid by Developer to the Agency from residual receipts generated by the Project. Based on the Summary Report which is supported by a reuse analysis conducted by the Agency's consultant, RSG, the Property Purchase Price is equivalent to the fair reuse value indicated in the reuse analysis. C. Environrnentai Review: An initial study of the Project was completed and on May 13, 2006 a Mitigated Negative Declaration ("MND") was adopted for the Project pursuant to the requirements of the California Environmental Quality Act ("CEQA"). Mitigation measures related to the Project include, but are not limited to: (i) completion of a burrowing owl survey prior to issuance of a grading permit, and specified mitigation measures if burrowing owls are identified on -site during construction activities; (ii) the payment of traffic mitigation fees; (iii) the completion of a soils and geotechnicai study prior to issuance of grading permits; (iv) preparation of a Stormwater Pollution Prevention Plan and Water Quality Management Plan; (v) Page 4 -.1 RVPUMHSHANE1716269.1 restricted hours for construction activities; (vi) payment by Developer of various fees, such as school and park fees; (vii) completion of all street improvements as required by the City Engineer. As of the date the MND was adopted, there have not been any substantial changes proposed for the Project that would require major revisions of the MND due to new significant environmental effects, nor has any change been proposed that would lead to any increase in any previously identified significant effects. In addition, no substantial changes have occurred with respect to the circumstances related to the Project which would require major revisions of the MND, thus there will be no new significant environmental effects nor any increase in any previously identified significant effects. Further, there is no new information of substantial importance regarding the Project which was not previously known or considered prior to adoption of the MND. Based on these facts, none of the conditions requiring preparation of a subsequent Negative Declaration, MND, or Environmental Impact Report ("ER"), as set forth in State CEQA Guidelines Section 15162, have occurred. FISCAL IMPACT: The total immediate cost of the Project to the Agency is Three Million Three Hundred Sixty Four Thousand Dollars ($3,364,000). This amount includes: • The transfer of the Property valued at Eight Hundred Fi nty Four Thousand Three Hundred Dollars ($884,300). • Up to Two Hundred Fifty Thousand Dollars ($250,000) to cover predevelopment expenses, to be provided as a grant to Developer. a A loan from the Agency in an amount not to exceed Two Million One Hundred Sixty Five Thousand Seven Hundred Dollars ($2,165,700) ("Agency Loan"). The Agency Loan will be reduced by up to Seven Hundred Fifty Thousand Dollars ($750,000) if Developer obtains an allocation of HOME funds from the County 4 Riverside. • An additional Sixty Four Thousand Dollars (se4,000) in costs incurred by the Agency related to the purchase of the Property. The Property will be transferred pursuant to a purchase loan, to be secured by a promissory note and deed of trust. The purchase loan will be repaid in full by Developer from residual receipts generated by the Project, and will earn interest at a rate of one percent (1%) per annum until repaid. The full amount of the purchase loan, if still unpaid, will be due upon the expiration of the term of the affordability covenants. Page 5 of 6 R1TPUBW..31-1ANE1716269.1 The Agency Loan will also be secured by a promissory note and deed of trust, and will earn interest -at a rate of one percent (1 %) per annum until repaid. The Agency Loan will be repaid by Developer from residual receipts generated by the Project. The full amount of the Agency Loan, if still unpaid, will be due upon the expiration of the term of the affordability covenants. ATTACHMENTS: • City and Agency Resolutions • Summary Report and Reuse Analysis Page 6 of 6 RVPUBIEISHHA NE1716269.1 SUMMARY REPORT PURSUANT TO SECTION 33433 OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW ON THE SANTA FE STREET AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE SAN JACINTO REDEVELOPMENT AGENCY AND THE PALM DESERT DEVELOPMENT COMPANY INTRODUCTION The following Summary Report has been prepared pursuant to Section 33433 of the California Health and Safety Code._ The Report sets forth certain details of the proposed Santa Fe Street Affordable Housing Disposition and Development Agreement ("DDA") between the City of San Jacinto Redevelopment Agency ("Agency") and the Palm Desert Development Company ("Developer"). The DDA between the Agency and the Developer is for a residential housing development to be built consisting of an 81-unit apartment complex planned at the 4.78 acre property located on the west side of Santa Fe, south of Esplanade Avenue, in the City of San Jacinto and also known as Assessor Parcel Number 439-070-022 ("Project"), This Summary Report is based upon information contained within the DDA, which commits the Agency to provide certain financial support to the Developer for the Project. This Summary Report is organized into the following seven sections: 1. Salient Points of the Agreement: This section includes a description of the Project, and the major responsibilities imposed on the Developer and the Agency by the DDA. 11. Cost of the Agreement to the Agency: This section details the total net cost to the Agency associated with implementing the DDA. HI. Estimated Value of the Interests to be Conveyed Determined at the Highest Use Permitted Under the Redevelopment Plan: This section estimates the value of the interests to be conveyed determined at the highest use permitted under the existing zoning, and the Redevelopment Plan. IV. Estimated Reuse Value of the Interests to be Conveyed: This section summarizes the valuation estimate for the site based on the required use, and with the ccnditior,s and covenants required by the DDA. V. Consideration Received and Comparison with Established Fair Reuse Value: This section describes the compensation to be received by the Agency, and explains any difference between the compensation to be received and the established fair reuse value of the site. VI. Blight Elimination: This section describes the existing blighting conditions on the development Site, and explains how the DDA will assist in alleviating the blighting influence. This Report and the DDA are to be made available for public inspection prior to the approval of the DDA. I. SALIENT POINTS OF THE AGREEMENT A. Project Description • The DDA provides for construction of an 81-unit apartment complex. The Agency has acquired the Site, and is proposing to sell the Site to the Developer. The Developer will then construct the housing units, of which 32 units will be rented at rates which will be affordable to households at or below 50% of Area Median Income ("AMI"), 30 units at or below 80% AMI, and 18 units at or below 120% AMI. One (1) unit will not be restricted but will be used by the resident manager. Developer Responsibilities The DDA requires the Developer to complete the following activities: 1. Obtain entitlements for the Site to develop an 81-unit apartment project. Prepare and submit to the City of San Jacinto ("City") all development plans, construction drawings, and related documents for the development of the Project, including landscaping and public improvement plans. 2. Apply for an allocation of Federal 9% low income housing tax credits ("Tax Credits") from the California Tax Credit Allocation Committee (" T CAC"). 3. Apply for an allocation of tax credits from the Tax Credit Allocation Committee. 2 4. Upon receipt of an_allocation of Tax Credits, purchase the Site from the Agency for $884,300 ($4.25 per square foot), paying 0% ($0) as a down payment at close of escrow, and providing a purchase money note ("Promissory Note") to the Agency for the balance, $884,300, secured by a trust deed in favor of the Agency subordinate to a construction loan. The Promissory Note shall accrue interest at the rate of 1 % per year, simple interest, shall be paid from the cash flow of the project, and shall be due and payable by the expiration or termination of the affordability covenants. 5. Immediately following the close of escrow, Developer will commence developrnent cf the Site and pay for all plans, permits, and construction. Developer shall develop the project in accordance with the Schedule of Performance attached to the DDA. 5. Once complete, Developer shall rent the units to moderate, low, and very -low households at affordable rents. The term of these affordability restrictions shall extend 55 years from the date of the recording of a Certificate of Completion for the Project. 7. Once the Developer owns the property, the Developer shall maintain it in good condition, free from the accumulation of debris or waste material, subject to normal construction job -site conditions, and shall maintain in a neat, orderly, healthy, and good condition the landscaping at the property required to be planted in accordance with the Scope of Development. 8. The Developer shall refrain fro B. Agency Responsibilities Under the DDA, the Agency must complete or cause the following activities: 1. The Agency shall provide the Developer with a Preliminary Title Report and underlying documents for the Site. discrimination. 2. Once the Developer has met all the conditions precedent, including receiving an allocation of Tax Credits and securing financing, the Agency shall sell the Site to the Developer for $884,300 ($4.25 per square foot) and carry 100% of the purchase price as a purchase money promissory note (the "Purchase Loan"). 3. Provide up to $250,000 (the "Predeveiopment Grant") to Developer as a grant to help defray predevelopment costs. 4. Provide additional financial assistance in the amount of $2,165,700 (the "Agency Loar'). The Agency Loan will be evidenced by a promissory note which will be secured against the property by a subordinated trust deed. The loan will accrue interest at 1% per year 3 simple interest, and will be repaid from the cash flow of the project ('Residual Receipts"). Any balance outstanding will be due and payable upon termination cr expiration of the affordability restrictions, 55 years after the recording of the Certificate of Completion. li. COST OF THE AGREEMENT TO THE AGENCY The estimated cost of the Agreement to the Agency is $3,364,000, consisting of the $3.3 million of Agency Assistance provided to the Developer through the DDA, and $64,000 in additional costs incurred by the Agency when it acquired the land. III, ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED AT THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN The estimated value of the interest to be conveyed is $795,000, which is the appraised value of the property according to an appraisal prepared by Tierra West Appraisal & Land Use Dynamics, Inc. and dated November 16, 2005. IV. ESTIMATED REUSE VALUE OF THE INTERESTS TO BE CONVEYED The Agency's economic consultant, Rosenow Spevacek Group Inc (RSG), has prepared a reuse value analysis of the Site for the Project. That analysis concluded that given the terms and restrictions required by the DDA, the reuse value of the site is $4.25 per square foot or $884,300. This value is predicated upon the Site being sold and the Project developed in accordance with the DDA, of which 32 of the units to be developed will be rented at affordable rents to households at or below 50% Area Median Income ("AMI"), 30 units to households at or below 80% AMI, and 18 units to households at or below 120% AMI. The term of these restrictions will extend 55 years from completion of the Project. V. CONSIDERATION RECEIVED AND COMPARISON WITH THE FAIR REUSE VALUE The DDA requires the Agency to sell the Site to the Developer for $884,300, which is the fair reuse value indicated in the RSG analysis VI. BLIGI IT ELIMINATION Development of the Site in accordance with the DDA will convert vacant land, which is prone to the accumulation of debris and rubbish, to modern housing, built to current construction standards, in accordance with current construction and planning codes. The units will also be affordable to moderate, low, and very low income households for a period of 55 years from completion, of this project. The development of the Project will also create bath temporary jobs, due to the construction of the Project, and permanent jobs, through the maintenance, repair, 4 and management of the completed Project. The new households residing at the Project will also create additional economic activity within the surrounding area due to their increased demand for goods and services. These accomplishments are all in furtherance of the Agency's redevelopment plan for the area. INTELLIGENT COMMUNDEVELOPMENT June 28, 2006 Mr. Steven Pasarow San Jacinto Redevelopment Agency 248 East Main Street San Jacinto, CA 92583 Subject: Reuse Analysis, Santa Fe Site Dear Mr. Pasarow: ROSENOW SPEVACEK GROUP INC. 309 WEST 4T- STREET SANT:: AN.-., C%LiFORNIA 927C i-45C2 T EQ? 4585 5411175 - EJNo.;_-s M wEBPS.7,C W NI Pursuant to your request, the Rosenow Spevacek Group Inc. ("RSG") has analyzed the proposal from the Palm Desert Development Company ("Developer') to build an 81-unit apartment complex planned at the 4.78 acre property located on the west side of Santa Fe, south of Esplanade, and also known as Assessor Parcel Number 439-070-022 ("Project"). This analysis is to fulfill the requirements by the City of San Jacinto Redevelopment Agency ("Agency") under Health & Safety Code ("H & S Code") section 33433 which requires redevelopment agencies, before leasing or selling property acquired with tax increment funds, to pass a resolution approving the lease or sale, and also finding that either (i) the consideration is not less than the fair market value at its highest and best use in accordance with the redevelopment plan, or (ii) the consideration is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the sale or lease. The consideration is below the fair market value of the land, and therefore this letter constitutes the reuse analysis of the !and based upon the proposed conditions of the sale. Background As a recipient of redevelopment funds, the Agency must improve and increase the supply of affordable housing within the City. The Agency is required to provide affordable housing, which can be done through development, rehabilitation, and acquisition. The Agency, to meet its housing obligations, must use twenty percent of its funds specifically for housing. The funds are known as housing set -aside funds and are designated for affordable housing purposes within the City. Examples of how the funds may be used include land acquisition, housing rehabilitation, home ownership, and affordable housing development. In addition to the Dousing set -aside funds, the Agency recently approved refinancing of existing bonds for a better rate, which also provided additional funding for housing programs and projects. To plan for future housing development and meet the Agency's obligations pursuant to California Redevelopment Law, Agency staff has pursued acquisition of property for future housing development. Staff has reviewed a number of sites for potential development. Properties considered were zoned multi -family, located near major transportation corridors, and in the four acre size range. The Project site meets this profile outlined by Agency staff and is suitable for housing development. The Developer, Palm Desert Development, is proposing to construct an 81-unit apartment complex, :-SDE':ELPJPVE'ir PL.=--.*II i _151NG PiNANCPNG REAL ESTATE ACOUISI-IC'� Mr. Steven Pasarow June 28, 2006 Page 2 consisting of nine residential buildings, one community center/laundry with a manager's unit, pool, and recreation areas. The Project site is currently vacant. The site is currently owned by the Agency. The Agency recently purchased the property from Santa Fe Pointe, LLC for $884,300 plus a reimbursement for the seller's expenses, which brought the total investment to $948,300. The property value, according to an appraisal by Tierra West Appraisal & Land Use Dynamics inc. dated 11/16/05, is $795,000. The Developer will be acquiring the property for $884,300, with the Agency carrying back financing for 100% of the purchase price. Surrounding uses are residential to the east (mobile home park) and south, commercial to the north, and vacant to the west. The site is generally flat and will therefore require little grading to accommodate the development. Analysis The property is designated for -high density residential development, sc in order to determine the highest and best use for the property, RSG developed a proforma utilizing current condominium development costs against a value of developing 81 for sale condominium units (see Exhibit A). RSG's analysis indicates that a market rate housing developer could pay the appraised value for the property and earn a competitive profit by developing market rate condominiums. By comparison, the Developer will be developing apartments for rent, rather than condominiums for sale, which are less valuable on a per -unit basis and therefore will support a lower land value. In addition, the terms of the Santa Fe Street Affordable Housing Disposition and Development Agreement ("DDA") between the Developer and the Agency requires the Developer to rent the units to qualified households at below market rents. RSG's analysis of the value versus costs of this scenario at attached to this report as Exhibit B and indicates that, without a subsidy, there would be a $16.9 million gap between the estimated value of the completed project and the costs. The Developer, of course, does not plan to lose money an this project. The Developer piens to utilize the 9% Federal Low income Tax Credit Program ("9% Tax Credits") to fund the development of the project and earn a profit. This program provides tax credits against Federal income tax obligations to investors who fund the development of affordable housing projects through the program. The tax credits are allocated on behalf of the Federal government by the California Tax Credit Allocation Committee ("TCAC"), a unit of the State of California in Sacramento. Tax credits are allocated by TCAC on a competitive basis, with developers competing based upon income targeting, geographic area, development costs, developer experience, and other criteria. Generally, developers have about a 30%° chance of receiving an allocation of 9% Tax Credits in any given allocation round. In the case of the subject project, if it were to receive an allocation of 9% Tax Credits, the tax credit investor is expected to invest approximately $14.7 million towards the development of the project. Other funds would come from a construction loan during the construction period, possibly HOME funds from the County of Riverside, and a permanent conventional loan once the project is completed, all in addition to $3.3 million from the Agency. G:1RSG\San Jacinto\Tax Credit ProjectiSar,a Fe Reuse erelysis 6-28-0£.dac Mr. Steven Pasarow June 28, 2006 Page 3 The estimated sources and uses of funds for the project are as follows: Sources & Uses of Funds Uses: Development costs 20,076,743 Sources - Permanent Permanent mortgage 2,024,788 Tax Credit Investor 14,723,511 County of Riverside (HOME Funs 0 Deferred Developer Fee 28,444 Agency loans & grants 3,300,000 Total 20,076,743 The Deveioper is required to apply to the County of Riverside for HOME funds in an amount of at :east $750,000. if the Developer receives an allocation of HOME funds, they will be used to reduce the amount of the loan from the Agency. The development budget estimates that $250,000 will be required from the Agency to pay for predevelopment costs„which is referred to in the DDA as a predevelopment grant of up to $250,000. The developer is anticipating applying $28,445 of its own funds to the project, according to its most recent projections, which is indicated above as a deferred developer fee. Therefore, as can be seen from the above, the Agency's total assistance of up to $3,300,000 will be leveraged by the use of conventional financing, tax credit investor funds, and potentially, County HOME funds, to develop the $20 million project. Without the tax credit program, the Agency's contribution, on its own, would not be sufficient to cover the feasibility gap. The affordability restrictions imposed on the property by the Agency through the DDA reduce the value of the completed project by more than the amount of Agency assistance. Therefore the sales price of $884,300, subject to the conditions of the DDA, is not less than the fair reuse value of the land, Summary • The Agency first purchased the property from Santa Fe Pointe, LLC for a total cost of $943,300. The Developer will apply for 9% Tax Credits in July 2006. • if the Developer receives an allocation of 9% Tax Credits, it wail purchase the property from the Agency for 884,300 pursuant to the terms of the DDA. • The Deveoper will build an 81-unit affordable apartment project which it will rent to moderate, low, and very low income households at affordable rents, which are below market. The affordability restrictions imposed on the proper ty through the DDA reduce the value of the property. • The Project would not be feasible without 9% Tax Credits and the Agency assistance. GURSGYSan JaartoGax Creait Project\Sarta Fe Reuse analysis 6-26-05.doc Mr. Steven Pasarow June 28, 2006 Page 4 A review by RSG of the Developer's proforma indicates its projected costs are reasonable and within industry standards. The price of the land indicated in the DDA, $884,300, subject to the affordability restrictions and other terms of the DDA, is not less than the fair reuse value of the land. Thank you for the opportunity to review this project on your behalf. If you have any questions I will make myself available for discussion. Yours truly, ROSENOW SPEVACEK GROUP iNC // Ls, Tim Mulrenan Director • 5:kRSMSan Jacinto \Tax Credit Project‘Sante Fe Reuse eralysis8-28-06.doc Mr. Steven Pasarow June 28, 2006 Page 5 81 Unit Market Rate Condominium Project 100% of units market rate - unrestricted Use: Condominiums land size: 203,217 FAR: EXHIBIT A 17 units per acre 0.48 Revenue 99,400 sq. ft. size/unit sq. ft. 2-br 1 ba 1,000 20,000 3-br 2 ba 1,250 50,000 4-br 2.5 ba 1,400 29,400 Total income 99,400 1,227 sq. ft. per unit no. units 20 40 21 81 price/unit 295,000 350,000 395,000 price/sq. ft. total 295 5,900,000 280 14,000,000 282 8,295,000 28,195,000 81 Unit Market Rate Condominium Project 100% of units market rate - unrestricted Development Costs: Land Hard Costs: Construction - residential Community Bldg. on -site work off -site work 208,217 sq. ft. @ $4.25 per sq. ft. allowance sq. ft. $/sq. ft 96,320 $120.00 4,965 $130.00 208,217 $15.00 Subtotal - hard costs Soft Costs: Architecture & Engineering 5.00% of hard costs Fees & Permits $12.42 per sq. ft. Utility & capacity charges $1.56 per sq. ft. consultants allowance legal & accounting allowance con. financing - points 1.50% of loan amount of $21,146,250 con. financing - interest 8.50% , 30% outstanding, 18 months perm. Financing - pts 0.00% marketing allowance TCAC fees property taxes 1.30% of hard costs insurance & bonds 12.50% of hard costs furniture & equipment allowance Homeowner's Association Expenses 6 months @ $200/unit/month contingency 5.00% of hard costs Subtotal - soft costs 48.28% of hard costs Total development casts excluding developer fee Developer fee 12.50% ofr=venue Per Bldg. Amount Sq. ft. per unit 884,300 58.90 $10,917 11,558,400 5120.00 $142,696 645,450 $6.49 $7,969 3,123,252 $31.42 $38,559 312,320 $3.14 $3,856 15,639,422 $157.34 $193,079 781,971 $7.87 $9,554 1,196,033 $12.03 $14,766 150,000 $1.51 $1,852 50,000 $0.50 $617 125,000 $1.26 $1,543 317,194 $3.19 $3,916 1,617,688 $16.27 $19,971 75,000 $0.75 5926 203,312 $2.05 $2,510 1,954,928 $19.67 $24,135 200,000 $2.01 $2,469 97,200 $0.98 $1,200 781,971 $7.87 $9,654 7,550,297 $75.96 $93,214 24,074,019 $242.19 $297,210 3,524,375 $35.46 $43,511 9 T otal cost 1Totai Value Additional Profit (Cost 0 $ equired) $27,598,394 $277.65 $340,721 $28,195,000 $283.65 $348.086 $596,606 56.00 $7,366 G'RSG\San Jadrte\Tax Credit ProiecttSama Fe Reuse welly siso-2&O6.doe EXHIBIT B 9% Tax Credit Apartment Project 100% of units affordable to moderate, low, or very low income households Use: Apartments 17 units per acre land size: 208.217 FAR: 0.41 Revenue 85,261 sq. ft. 1,053 sq. ft. per unit size/unit sq. ft. % AMI no. units monthly rent annual/unit total 2-br 1 ba 941 3,764 30.00% 4 337 4,044 16,176 2-br 1 ba 941 12,233 45.00% 13 531 6,372 82,836 2-br 1 ba 941 12,233 50.00% 13 596 7,152 92,976 2-br 1 ba 941 9,410 60.00% 10 726 8,712 87,120 3-br 1 ba 1,167 4,668 30.00% 4 386 4,632 18,528 3-br 1 ba 1,167 12,837 45.00% 11 610 7,320 80,520 3-br 1 ba 1,167 19,839 50.00% 17 685 8,220 139,740 3-br 1 ba 1,167 9,336 60.00% 8 835 10,020 80,160 2 br 1 ba (manager's) 941 941 1 0 0 0 Total rental income 85,261 81 598,056 miscellaneous income @ $14.81 per unit per month 14,400 Gross Potential Income 612,456 vacancy & collection losses @ 5.00% (20,823) Gross Effective Income 881,833 Operating Expenses (residential) @ $4,402 per unit per year (356,542) Reserves @ $250 per unit per year (20.250) Net Operating Income 205,041 Capitalization Rate 6.50% Property Value $3,154,480 Value per unit $38,944 Value per square foot $37 9% Tax Credit Apartment Project 100% of units affordable to moderate, low, or very low income households Per Bldg. Development Costs: Amount Sq. ft per unit Land 208,217 sq. ft. @ $4.25 per sq. ft. 884,300 $10.37 $10,917 Hard Costs: sq. ft. $/sq. ft Construction - residential 96,320 $90.64 8,730,767 $90.64 $107,787 Community Bldg. 4,965 $114.56 568,790 $6.67 $7,022 on -site work 208,217 $11.91 2,479,447 $29.08 $30,610 off -site work allowance 312,265 $3.66 $3.855 Subtotal - hard costs 12,091,270 $141.81 $149,275 Soft Costs: Architecture & Engineering 3.72% of hard costs 450.000 $5.28 $5,556 Fees & Permits $18.68 per sq. ft. 1,799,427 $21.10 $22,215 Utility & capacity charges $2.60 per sq. ft. 250,000 $2.93 $3,086 consultants allowance 0 $0.00 $0 legal & accounting allowance 85,000 $1.00 $1,049 con. financing - points 1.28% of loan amount of $13,675,896 175,000 $2.05 $2,160 con. financing - inter e: 7.50% , 60% outstanding, 15 months 749,998 $8.80 $9,259 perm. Financing - pts 2.81% 2,024,788 56,875 $0.67 $702 marketing allowance 50,000 $0.59 $617 TCAC fees 90,000 $1.06 $1,111 property taxes 0.33% of hard costs 40,000 $0.47 $494 insurance & bonds 1.81% of hard costs 218,985 $2.57 $2,704 furniture & equipment allowance 150,000 $1.76 $1,852 leaseup & operating reserves 6 months @ avg. 45% occupancy 138,707 $1.63 $1,712 contingency 7.01 % of hard costs 847.181 $9.94 $10.459 Subtotal -soft costs 42.19% of hard costs 5,101,173 $59.83 $62,977 Total development costs excluding developer fee Developer fee 11.06% of costs 18,076,743 $212.02 $223,170 2,000,000 $23.46 $24,691 Total cost Total Value Profit (Loss) $20,076,743 $235.47 $247,861 $3,154.480 $37.00 538, 944 (316,922,253) (S198.48) ($208,917) STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO AND PALM DESERT DEVELOPMENT COMPANY CONCERNING THE. DEVELOPMENT OF AN EIGHTY-ONE (81) UNIT AFFORDABLE HOUSING DEVELOPMENT ON SANTA .FE STREET BETWEEN ESPLANADE AVENUE AND OAKWOOD STREET IN THE CITY OF SAN JACINTO AND MAKING CERTAIN FINDINGS PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 33433 IN CONNECTION THEREWITH WHEREAS, pursuant to the provisions of California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.) ("CRL"), the City Council ("City Council") of the City of San Jacinto ("City") approved and adopted a redevelopment plan ("Redevelopment Plan") for the San Jacinto Project Area ("Project Area"); and WHEREAS, the Redevelopment Agency of the City ("Agency") is engaged in activities necessary to execute and implement the Redevelopment Plan for the Project Area; and WHEREAS, the Agency owns that certain real property within the Project Area consisting of approximately 4.78 acres located on Santa Fe Street between Esplanade Avenue and Oakwood Street, commonly referred to as Assessor Parcel Number 439-070-022 ("Property"); WHEREAS, Palm Desert Development Company, a California corporation ("Developer") desires to acquire the Property from the Agency and construct on the Property an eighty-one (81) unit multi -family affordable rental housing project ("Project") comprised of forty (40) two -bedroom units, and forty (41) three -bedroom units subject to the following occupancy restrictions: (i) Eighteen (18) of the units restricted for lease to households at or below one hundred twenty percent (120%) of the area median income; (ii) Thirty (30) units restricted for lease to households at or below eighty percent (80%) of the area median income; (iii) Thirty-two (32) units restricted for lease to households at or below fifty percent (50%) of the area median income. (iv) One (1) unit restricted for use by the person or household that is managing the project. RVPUB \ HSHANE171 61 13. 1 WHEREAS, to assist in the development of the Project on the Property, the Agency desires to provide the Developer a predevelopment grant in an amount not to exceed Two Hundred Fifty Thousand Dollars ($250,000); a purchase loan for the - purchase of the Property in an amount not to exceed Eight Hundred Eighty Four Thousand Three Hundred Dollars ($884,300); and a loan in an amount not to exceed Two Million One Hundred Sixty Five Thousand Seven Hundred Dollars ($2,165,700), all to assist the Developer in financing the development of the Project on the Property ("Agency Assistance"); and WHEREAS, in consideration of the Agency Assistance, the occupancy restrictions maintaining the affordability of the Project will be ensured for a fifty-five (55) year term pursuant to a regulatory agreement to be recorded against the Property; and WHEREAS, the Agency and the Developer have negotiated the terms of that certain Santa Fe Street Affordable Housing Disposition and Development Agreement ("Agreement"), which provides, among other things, the Developer's development of the Project on the Property and the Agency's provision of the Agency Assistance to the Developer; and WHEREAS, a copy of the proposed Agreement is and has been on file at the Agency office, located at 248 East Main Street, San Jacinto, California 92583, and available for public review during normal business hours of the Agency, since June 23, 2006; and WHEREAS, the Agency has determined that implementation of the Agreement: (i) is in the best interests of the City and the Agency and the health, safety and welfare of the City's taxpayers and residents and is in accordance with the public purposes set forth in the Redevelopment Plan and CRL, (il) strengthens the City's land use and social structure; (iii) alleviates economic and physical blight in the City; and (iv) provides needed affordable housing in the City; and WHEREAS, pursuant to Government Code Section 65402, the Planning Commission of the City must determine prior to the time of conveyance of the Property to the Developer that the location, purpose, extent and development of the Project are in conformance with the City's general plan; and WHEREAS, pursuant to CRL Section 33433 the City 'Council of the City (acting as the Agency's legislative body) must make certain findings and determinations in connection with Agency 's sale of the Property which was acquired with Agency tax increment revenue; and WHEREAS, pursuant to CRL Section 33433, the Agency has prepared, and the City Council has reviewed and considered, a summary report ("Summary Report") setting forth: (1) the cost of the Agreement to the Agency; (2) the estimated value of the interest to be conveyed; and (3) an explanation of how the acquisition and conveyance of that interest will assist in the elimination of blight within the Project Area and the Agency has made the Summary Report available for public inspection in R V P UBVHS HANE1715113.1 accordance with CRL Section 33433; and WHEREAS, pursuant to CRL Section 33433, on June 23, 2006, and June . 29, 2006, the Agency caused notice of the a joint public hearing of the City Council and the Agency's Governing Board to be published in a newspaper of general circulation within the Agency's territorial jurisdiction; and WHEREAS, pursuant to provisions of CRL Section 33433, on July 6, 2006, the City Council and the Agency's Governing Board held a duly noticed joint public hearing on the proposed Project and on the proposed Agreement; and WHEREAS, the Project is a "project" subject to the California Environmental Quality Act ("CEQA"); and WHEREAS, a Mitigated Negative Declaration (" MND") was previously prepared for this Project, and was analyzed and adopted on May 13, 2006, all in accordance with the requirements of CEQA; and WHEREAS, pursuant to State CEQA Guidelines Section 15162, the City Council, as responsible agency under CEQA, has determined that none of the conditions requiring preparation of a subsequent Negative Declaration, MND, or Environmental Impact Report ("EIR") have occurred regarding the Project; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Jacinto as follows: Section 1. The City Council finds and determines, based on the information made available in the Summary Report, the staff report accompanying this Resolution, the oral presentation of staff, and the other written and oral evidence presented to the City at or prior to the public hearing, that, pursuant to CRL Section 33433: (i) The sale of the Property and development of the Project will assist in the elimination of blight and provide housing for moderate -income persons; The sale of the Property is consistent with the implementation plan adopted by the Agency for the Project Area; and (iii) The consideration to be .paid for the Property by the Developer is not Tess than fair reuse value of the Property with the covenants, conditions and development costs provided for in the Agreement. RV ITI \F+SHANE\716113.1 Section 2. The City Council approves the Agreement together with non - substantive changes and amendments as may be approved by both the City Manager and the City Attorney. Section 3. The City Council hereby authorizes and directs the City Manager fo take any action and execute any documents necessary to implement the Agreement. Section 4. The City Council, as a responsible agency under CEQA, certifies that it has reviewed and considered the MND adopted for the Project along with the proposed Agreement, and in its independent judgment finds that: (i) No substantial changes to the Project have been proposed which would require major revisions of the MND due to new significant environmental effects, nor has any change been proposed that would lead to any increase in any previously identified significant effects and no subsequent MND is required. No substantial changes have occurred with respect to the circumstances related to the Project which would require major revisions of the MND, thus there will be no new significant environmental effects nor any increase in any previously identified significant effects and no subsequent MND is required. There is no new information of substantial importance regarding the Project which was not previously known or considered prior to adoption of the MND. In Tight of the above findings and pursuant to State CEQA Guidelines Section 15162, no subsequent Negative Declaration, MND, or DR is required. Therefore, and in accordance with both CEQA and the State CEQA Guidelines, no further analysis under CEQA is required. Section 5. The City Council directs staff to file a Notice of Determination with the Riverside County Clerk's Office within five (5) working days of the adoption of this Resolution. Section 5. This Resolution shall take effect upon its adoption; provided however that that Agreement shall not be entered into on behalf of the Agency until all matters ;elated to Conditional Use Permit 10-03 are resolved to the satisfaction of the City Council. R V? UB1.L:S:LANe 1716113.1 APPROVED and ADOPTED, this 6th day of July, 2006 by the following vote: Vote: Ayes: Nays: Abstain: City of San Jacinto Dale Stubblefield, Mayor ATTEST: Dorothy Chouinard, City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) I, Dorothy L. Chouinard, duly appointed City Clerk of the City of San Jacinto, California, do hereby certify that the foregoing Resolution No. , was adopted by the City Council of the City of San Jacinto, County of Riverside at a regular meeting thereof held on the 6th day of July, 2006. Witness my hand and official seal this dayof , 2006. Dorothy L. Chouinard, City Clerk RVEV3IISHAND7i6113.1 B. Required Findings; The California Redevelopment save° "Health and Safety Code section 334 requires that prior to the sale of any property acquired with tax increment boilers, the legislative body must adopt a Tesolution, following a _public nearing, .ivwich must include the following findings: (1) The sale of the Property will assist it the elimination , cliggr. of provide housing for low or moderate income persons, 2,) The sale is consistent with the Agency s imcier^en-_at cn F !a 5 adopted pursuant to .-iealirSafe t v m 3) The consideration for the sale is not ;ess train the fair reese ealee at the use and with the covenants and conditions and development costs authorized by the sale, The .Agency made ailabie - ,r iic scec. un the Summery a; provided information regarding the cost of the Agreementthe ,Venn£, estimated value or the interest to be conveyed, and an exparat.oc, o sale of the P:-cperrf will assist ,n the. iiimina.icr of blight re Agency Pieced public notice in the Press Enterprise or jene 23 and 'a _u .o advise of the public hearing and the availabilityof ,e v 'mmar 3 ock IThe above three cl findings are addressee as follows.: I. The sale of the Prorer'f' will assist in housing for low or moderate income bersons. The Project will provide eighty SO) units of high quality multi -family rental housing. The Project will assist the Agency in its efforts to meet its housing goals as set forth in the Agency's Implementation Plan and Housing Compliance Plan. p `3 affordable ho X,es cir. �l'' if the Project is constructed, '.2a~iLwrd, 13"4i housing Wit; v'S"'�{. deficit, as set ,wks v yr. g Compliance ian e e- v ': :cc educed r,i 6 d t ,Y*t",.'"1Y9:, e'er d a-� reduced from one hundred ;��,d 1^" units tofifty four(54) the 2CO" O5-OO8C9 period, ,�..:, Property o at d within "1e -development m. t -^i!': u+r "=sbe- e The Property } �s V�Jc�i1Se C� JL¢P'SY ]tll d the J m'EvLcr �t � Set �C � ��v J } _ FVN. bevel a+n of the San Jacinto Redevelopment Project Area ("Project Area"). The Project eliminate blighting influences in the Project Area by converting vacant land is prone t€A"•.tie accumulation of debris and rubbish. The vacant land will be replaced with a modern housing complex that has been designed toincorporate r3va aesthetically pleasing architectural and landscape features, The regulatory Jfgu a,mentto be recorded d M t Property includesmaintenance H .� r4 woes e.,.eYi' against the a�i a�n�..;,.d va,. covenants iev to ensure that the Property is maintained in good condition. The Project generate additional economic activity in the ProjVic. Area by creating temporary ry construction jobs, as wellas permanent maintenancemanagement labia, and E^ns;��v. ,max; a icn of _- / JBES"''T-•. _62f9 i Residents of the Project will also: :create increased demand: for coccs an services in the Project Area. The Proiect is consistent with the irnoierrientation Pan. The Project is consistent with the Agency's goal to eliminate or alleviate biightine conditions in the Project Area, and to provide low and moderate income housing opportunities. The goals of the implementation Plan. including the Housing Compliance Plan, include: increase the supply of low and moderate income ricusind; ) Leverage Agency) Housing as with other resources in ender to promote the development of affordable housing, (iii1 Provide priority to proposals that will eliminate or ereyeet the spread of blight; Create infi housing; Encourage the development of multifamily rentslhei entire The Project 'will leverage Agency HOLSina Penes whin the ese of :4% Tax -Clierieta for the deve.lopment of a high duality, affordable multifamily bus development, in a currently :developed area of the Cr14'. Theer the riritojecea consistent with the goals of tine lit-neje:the:int:at:ion Pier) 3 The consideration is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the sale; The Agreement provides for a sale of the Property to Developer for Eight Hundred Eighty Four Thousand Three Hundred Dollars ($884,300) ("Property Purchase Price"). The sale will be made pursuant to a purchase loan which will be repaid by Developer to the Agency from residual receipts generated by the Project. Based on the Summary Report which is supported by a reuse analysis conducted by the Agency's consultant, RSG, the Property :Purchase Price equivalent to the fair reuse value indicated in the reuse analysis. C. Environmental Review: An initial study of the Project was completed and on May 13, 2006 a Mgated Negative Declaration ("Mig:D") ;01q.s adopted for the Prciact nutriment tr.) the :requirements of the California Eevironithental Quality Act ("CEDA"). Mitigation measures related to the Project leiniude, but are not limited to: completion of a burrowing owl survey prior to issuance of a grading permit, and specified mitigation measures if burrowing owls ere identified cresite, during ecristrupticri activities; (ii) the payment of traffic mitigation fees e compiatiO7 of a scila and eeotechnicai study prior to issuance of grading permits: fiv) Prapers&In of a Stormwateir ;Pollution Prevention Plan ..and '1%1 741.37 {\'s, 7,f RVPU3 716259.1 restricted hours for construction activities; (vili payrnent -by Developer of various fees, such as school and park fees: vu completion of all stre.et improvements as required by the City. Engineer. As of the date the MND was adopted, there riave not been any substantial changes proposed for the Project that would require major revisions of the MND: due to new significant environmental effects, nor has any change been proposed that would lead to any increase in any previously identified significant effects, in addition, no substantial changes have occurred with respect to the circumstanbes related to the Project which would require major revisions of the MND, thus there will be no new significant environmental effects nor any increase in previousFy identified significant effects. Further, there is no new information of substantial importance regarding the Project which was not orenifous:' known or c,ionsidered prior to adoption of the MNDJ Based on these facts, none of the condttions 7,equinci preparation of a subsequent Negattve Deotaratton, NINO, or Pnvironmenttatt tmroact Rancor ("7:Rif as set forth State cE-QA Guidettnes Section tal,67, have ccouryert FISC.AL IMPACT: 'ne, Octet trtmedtate roost rof the tO he Agency is, TrOtee M'ahon Thrs,e Hundred iiStxttiii Four Thousand Dollars ic$:7:1,36.4,000), This amount :notuoies: * The transfer of the Property valued at EghtHundred D'4,L Thousand Three Hundred Doitars * Up to Two Hundred Fifty Thousand Dollars ($280,000) M. 00 v A r predeveJcpment expenses, to be provided as a grant to De/edger. 4 A ban from the Agency n an amount not to exceed Two Wigton One Hundred Sixty Five Thousand Seven Hundred OcItars ($2,165,700) ("Agency Loan"), The Agency Loan witt be reduced by up to Seven Hundred Fifty Thousand Dditars j$75C);000) ]f Deveioper obtains an :',CCatiOn of HOME funds from the County of Riverside. * An add:tone] Sixty Four TO;vqprz,nrf DONST': f13.64,1(')in the Agency re.iated to tne purchase of the Prop7.oty. The Property Mt! he transferred pursuant t- a ourchaze ican, to be secured nY a crorntascr): note ard deed of tfust The numhase idret be jert,*Jd Deveioper from residue re:depts., generated by the Project and 'Ai earn interest at a ate nf c-i.rnert der an:film Jnittt tabad. The f,Jtj amovnt -3Urchase loan, if still unpaid, -.MK oe 44L19 toohe exoiratich of the te:m of the (offordi"'itri onvenants 7152z.•;9.1 The Agency Loan wllalso be secured by a promissory note and deed Of trust, and will earn interest -at a .rate of one percent (1%) per annum until repaid The Agency Loan will be repaid by Deveioper from residual receipts generated by the Project. The full amount of the Agency Loan, if still unpaid, wiil be due upc,r, the expiration of the term of the affordability covenants. ATTACHMENTS: City and Agency Resolutions Summary Report and Reuse Anay RAOUBTISIL4NE \ 626 I SUMMARY REPORT PURSUANT TO SECTION 33433 OF THE CAL:FCRNIA COMMUNITY REDEVELOPMENT LAW ON THE SANTA FE STREET AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE SAN jACINTO REDEVELOPMENT AGENCY AND THE PALM DESERT DEVE.LOPMENT COMPANY INTRODUCTION The following Summary 'Report nas Peer Prepared pursuant 70 SettOr 334-33 of the ::;form Health and Safety- Code. The :Fedor: sets forth deinair (details of the proposed Same Fe Street Affordable Housing Disposition arc Development Agreement ("ODA')• between the City dt San Jacinto Redevelopment Agency ("Agency') and the Pam Desen Development Company (ii7(evelonen'l The DCA between the A.oency and the Developer is Tot a tesiitterzlz-ti nprosing sieve-icor:rent to be built consisting of an Si -unit apartment complex bianned at the 4 75 acre properly iccatec or the west side of Santa Fe, south of Esplanade Avenue, in the City of San lacirto and aisc known as Assessor Parcel Number 439-070-022 ("Project"). This Summary Report is used upon information contained within the ODA, vtenicn commits the Agency to provide certain financial support to the Developer for the Project. This Summary Report is orcianized into the following seven sections: I. Salient Points of the Acreeme.nt: This section includes a .clesdrict on of the Project, and the major responsibilities imposed an the Developer arc the kgency by the DC.)(A. It, Cost of the AC,T99Mant to the Agency This section detelis the tore-4 net oast tc.) the Agency associated with implementing the DDA. 111]. Estimated Vair.re of the interests to be Conveyed Determined at the Highest Use Permitted Under the Redeveioroment Pan: This section estimates the value of the interests to be conveyed determined at the highest use permitted under the existing zoning, and the Redevelopment Plan. V, Estimated Reuse .-Value of the interests t be Conveyed: his section sum the valuation estimate for the site based on the required use and with covenants required cv the DD.A. ins ens V. Consideration Received and Comoarisoen with Established Fair Reuse V'al use: Th., section describes the compensation to be received by the Agency, and explains any difference between the compensation to be received and the established fair reuse :raise of the site. i. Siidht Efiirnnianation: This section describes the e development Site, and en:lairis how the wii ssist aileviati th influence. id the ..e'bde'a are e to %e mace 1' aailab e fcr SALIENT FOI ITS " E rye RE= EtiT The ODA "orovides - , - u acquired the Site, and is proposing to sell the Developer. The Oe. e€o! aY then construct the housing units, of which 32 ni e will be tented at rates which will be affordable to households at or below 50% of Area Median income CAM"), 30 units at or below 80% AMI, and 18 units at or below 120% WI. I. One +; but will be used by the resident manager. Developer Responsibilities The r�JA. rea tea i oh.«;er s �.`piet. swing activities: .. Obtain entitlements Io. ,ne Site to develop an 81 snit ace "me^t submit to the City of San Jecii deveiooSme and related documents for the deveicipment of the Fro nitro imbrsvement plans. of ecerai 9% inw income housind the California axredit tax 'credits A. Credit Allot; stirs ie d . e ant 4. Upon receipt of antallocation cf Tax ,Oreplits, !purchase the Site from the .A.gency for $884,300 ($4,.25 per square foot), paying 0°,iici iiso; as a Sown czyment atciese nf escrow, and providing a purchase money note ("Promissory Note") to the Agency for tee balance, $884,300, secured by a teast deed in favor of the Agency subordinate to constraiction loan, The Promissory Note shall eel:rile interest at the rate of 1% per year, simple interest, shall be paid from the cash ficw of the project, and shall be due are payable by the expiration or termination of the affordability covenants. 5. immediately following the close of escrow, Developer will commence development of the Site and pay for all plans, permits, and construction. Developer shall develop the b.:reject in accordance with the Schedule of Pe,rfairmarree attached tic the DDA. 5 Once complete, Developer shall rent the units tc moderate, lcw are vereepey households at affordable rents. The term cf these affordability rest:lc:tiers shaii erietericti 55 years from The date of the recerding of a Certificate of CC,itoieticr for the Piciece Dec- The Deveioper earccerbe the Disiveiberier snail thiaintaie it rir :boo tatenoiteete free from the accumulatior of debris or waste thateriai, subject lid ecerhai etersteectice- leb-site oteraiiitiees and snail mairteie -e^t hate and ',bee score ef the ;7:x:et! requite: re ee elenteta scane eiiiittlir the Seterree Develormere The Developer shall refrain from oiihoriminatiori, Agency ReosbfteS Under the DOA, the Agency must complete or 'cause the following' activities: 1. The Agency shell ortsvide the ilDev•ieloper wit, a 27.rrellmietreni Tlte, Report. and enderi.no documents •for tie Site 2. Once the iDetielocer has met ail the conditiers Precedent, including reiceivieg an e,itocatierr of Tax Oredits and eeciehnic finereinc, tne Agency shall sell fee Site 7,S. :ta Develccer for 3884.300 (34.25 per square fool; and earh4 100% of the b.:ire:rase pees es teurieneee mcrey ersmissory note fThe 'Purchase Lean'. 3Pere-vibe jt ithe "Predereelociroenz A")'to Tieveipper e ereet tic heir.' defray Predeveiecthert ecists. 4. Provide additional fnciai assistance le the amount of S2,155,700 (the "Agency Leareiiti. The Agency Loan will be evidenced by a promissohiii -70t9 which will •lbe sec against :he proicy by a eurtordinated trust Ceed. The icen will accrue interest at 1% ber year 3 simple interest, and will be repaid from the oast flow of the project il"Fe.sicual Receipt Any balance outstanding will be due and payable upon termination Cr expiredicin of the affordability restrictions, 55 years after tne recordinc of the Certificate cif Cembieticr. 1. COST OF THE AGREEMENT TO THE AGENCY The estimated cost of the Agreement to the Agency is $3,364,000, consisting of the $3,3 rrAion of Agency Assistance provided to the Developer trough the DCA, and 864,000 in additional costs incurred by the Agency when it acquired the lanci. lie ESTIMATED VALUE OF THE INTERESTS TO SE CONVEYED DIETERMiNED AT THE HIGHEST USE PERMITTED UNDER THE REDEVELOPMENT pLAN The estimated value of the interest to se conveyed is $7735.000; whiee 'a the appraise:: veil! ie of the property according ids an appraisal prepared by Tierra Wes.:casa &arc Use Dynamics, no, and dated November t5. 2005, SST. Fg:FUS''''7 VALUE .DF TienIE iNTERESTS TO SE :DCNVEit'ED The Agencys economic consultant, Rosenow Ssevacek ,Group nci:iP,S31i, has prepared reuse value analysis of the Site for the Project. That analysis concluded that given the terms and restrictions required by the DCA, the reuse value of the site is $415 per square foot or $884,300. This value is predicated upon the Site being sold and the Project developed in accordance with the DDA, of which 32 of the units to be developed will be rented at afforelacie rents to households at or below 50% Area Median income ("AU"), 30 units to households at or below 80% AMI, and 18 units to households at or below 120% AMl. The term of these restrictions will extend 35 years from completion of the Project. v, DriNSIDER.ATION REOEIVIFD ANS, COMPARMON WITh THE FAIR RiFilt.,lFIF VALUE The riiCA. requires the AeAncy to sell the Site to the Develerser fOr S3a4,300, wnicn is the te reuse value indicated in the P:SG. analysis SIUGHT EiLMENATION Development of the Site ir accordance with the DCA will convert vacant land, which is crone to the accumulation of debris and rubbish, to modern housing, built to current constrictor standards, in accordance with current construction and planning codes. The units will also be affordable to moderate, low, and very low income households ifor settled of 55 years frem completion of this priciect. The development of the Project will also create both temporary jots, due to the construction of the Projeici, and permanent jobs, through the maintenance, repair. and management of the completed Project. The new households residing at the Project will also create additional economic ectilyty wittir he 3urrs,,,und.jng: area due to their -increased demand for goods and serces: These accomplishments are all in furtherance of the Aaencys redevelopment clan for the area. 3 K.OSE' CV1,' S June 28, 2006 Mr. Steven Pasarow San Jacinto Redevelopment Agency 248 East Main Street San Jacinto, CA 92583 Subject: Reuse Anaivsis, Santa :-e Site Dear Mr. Pesaro r Pursuant to your request. the iniiosenow Spe<<acek has analyzed the c.o sac from the Palm Desert Development Company ("Developer') o oµild ari 3":- nit apartment t co pie planned et the 4.78 acre property, located on the west side of Santa Fe, south scr Espianade and also known a.. Parcel lumber 43`9-3. ,�-` -22 ("Project"). This analysis .s to fulfill the requirements hi the Assessor 3rv..E_ of San Jacinto Redevelopment Agency "Agency" , nder Health 3: Safety 33433 which requires redevelopment agencies, before leasing or selling property acouireid increment funds, to pass a resolution approving the lease or safe and also `indin.y that either consideration is not less than the fair market value at its highest and best dse . adopter. redevelopment plan, or the considerations not less than the fair reuse .va'iue at foe dse a..Y covenants and conditions and development costs authorized by the salt, or lease consideration a:ion below the fair market value of the land. and therefore this et e constitutes the re se a. sis of the based upon the proposed conditions of the sale. Saclkcround As a recipient of redevelopment funds, the Agency must improve and increase the supply affordable housing within the City. The Agency is required to provide affordable housing, which can be dons through development, rehabilitation, and acquisition. The Agency, to meet its housing obligations, must use iiventy ,percent of its funds specifically for housing. The funds are known as housing set -aside funds n;are designated i for fF si nehousingpurposes within the C t� Examples ofhow thefunds m and �, si4� fd � r _. p dc.. p�: pies City, �v.C?�. .s;% � may be used include land acquisition, housing rehabilitation, home ownership, and affordable housing development_ in addition to the Housing set -aside funds, the Agency recently approved refinancing of existing bonds for a better rye; v%E pai sV provided additional funding for nousf � tier.,s y . li _t vroievs. 2^ Oar for future housing development and ;fleet the Agency's coiicaAc�:s pursuant _c Californiae or .lily/4foPC1'�?eEaStaff �+Law, staff as pursued G acquisition ,�. �;ls"c"'e""`r development Sta f .has reviewed n. number sites ' C . e Pr:, e{,: et er ,.r si"..s for J.d;,e� tea: �e�u may,. c. were zoned multi -family, located near major transportation corridors, and in the Y� Agency '` . Prole y_ iE�v meets 'C AEv �.'r+r �tiSe Y�^�'.bA ��y+'rCY ,riB�rppaa .Ye�,K� staff and i.�,' is suitable for�j1sEt 'o development. GL .tThe ice v Palm vise+ s veloo went s r E r icsi g to raw st �'..icv an s n,it tipa u.:eft c !: sex, Mr. Steven Pasarow June 28, 2006 Page 2 consisting of nine residential buildings, one community aenterflaurair/ with a manages ert. recreation areas. The Project site is currently vacant. The site is currently owned by the Agency. The Agency recently purchased the propey from Santa Fe Pointe, LLC for $884,300 plus a reimbursement for the seller's expenses, which brought the totai investment to $948,300. The property value, according to an appraisal by Tierra West Appraisal &Lard Use Dynamics Inc. dated II/15/05, is $795,000. The Developer will be acquiring the property for 6884,300, with the Agency carrairic back financing for 100% of the purchase prce. Surrounding uses are residential to the east (mobile home parKi and south, commercial to the :rinn, she vacant to the west. The site Is generally flat and 'will therefore require little :rana to accemeenciate the development. Analysis The property Is designated for nigh .gensity residential development, so in orcler cietermirie the hicnest and best use for the eiroperty„ P.SG developed a Proforma utilizind current coriticnium development. costs against a value of developing 81 for sale condominium units ,lisee Exhibit Pe. R.Stals analysis indicates that a market 7.ate ricesing developer :odd day the appraised value Mr ate ampere aria eare competitiVe profit by developing market rate condominiums, By comparison, the :Developer will be developing apartments for tent, rather than coilcc;minitime for sale, which are less valuable on a per -unit basis and therefore will sudden a lower land value. In addition, the terms of the Santa Fe Street Affordable Housing Disposition and Development Agreement ("DDA") between the Developer and the Agency requires the Developer to rent the units to eualified households at below market rents. :F<SG's analysis of the value versus costs of this scenario at attached to this report as Exhibit B and indicates that, without a subsidy, there would be a $1'6.9 million gap between The estimated value of the completed project and the costs. The Developer, of course, does not elan to lose money on this project. The Developer plans to 'a:feline the 9% Federal Low income Tax Credit Program ("9% Tax Credits") to fund the development of the project and earn a crofit. This program provides tax credits against Federal income tax obligations to investors who 'kind the development of affordable housing projects through the program. The tax credits are allocated on behalf of the Federal:government by the California Teat Credit Allocation Committee ("TCAC',"), a unit of the State of California in: Sacramento, Tax credits are allccated by TOAD on a competitive basis, with deveilopers competing based upon income targeting, geographic; area, development costs, developer experience, and other criteria. •5enerally, developers have about a 30% chance of receiving .an allocation of 9% Tax Credits in any g yen allocation round. in the ease of the subject project, if t were to rectie an allocation of Tax Credits, the tax credit nve.-;ster isexpected tO invest apereximately $14..7 tetwarals the :development of the erelect. Other fends would come from a construction loan during the construction period, possibly lnOME funds from the County .ef Riverside, and a permanent ,ettnarentional 'loan once line creilect is complete. , SH in adolitipe tot $3.3 million from the Agency. iacir.-1072:4 E-vs 3r.suss anslys13!--23-0e,foo Mr. Steven Pasarow June 28, 2006 Pace 7 The estimated sources and uses of funds for the project are.. as T'ollows: 1Sources & Uses of Funds Uses: Development costs 20,076,743 . , l , rSourices - Permanent : Permanent mortoage 2,024,738 , iax it -teak inoestor iCounty of Riverside lle-lCilviE Fon, 3 , iDeferred Developer Fee 28444 Agency loans & orants 2300000 l'ciitai 20.075.743 The Developer requirter.: aooly to the Ociur.ry of Riverside for ei0ME funds ar aintottent of at -east $750,30D if tne Deveioper receiver a- allocation of lolOME tires. theii will ote dsec to raducts. the amount cf the ban from the Agency. The deveiocrineht oudget estimates That $250,23C. w 5e -act...redo from The Agency to pay for predeyelcomert costs„wnich, is -referred to in the DDA as a onterdever:ii:„*.i-ne#e grant of tic to S250,000 ine develboer is anticicatinc accno $25 4-45 of its nisi,- -::, the oho:6ot according to Its M:St raar nr't•eCf,C7. rivrinn 's indicated r-rbot's. ss oeferinzknee Therefore, as can be seer from the above, :he ii-igency's iotei assistance of Joe to $03,2D0 :ID: will be ieverageol by the use of conventionai financing, tax credit investor funds, an orctsntleliy, :round' liOCM.E. funds, to develop the $2.0 million project. '0'e/it:lout the 'a.. credit program, the .Agencris contribution, on its own, -would not be sufficient to cover the 'feasibility gap. The affordability restrictions imoosed the property by the Agency through the DDA reduce: the value of the comoieted project by more than the amount of Agency assistance. Therefor,' the sales price of $684,300, subject to the conditions of the DDA, is not less than the fair reuse value of the land Summary # The Agency 'first purchased The property from Santa Fs Foirite, LLC /or intre cost of -ie,Ilez4F,DOC,_ # The Developer w spoly for 0% Tex Oradite in luiy 200e * .f the Developer ress-ives an alio:cation' of 9% Tax ffirsdits, let 4# .A.z..anicy for 38430C cur.suent th,.= tsrrris of this • The Develops: bidlid an 31-nit affordardie anartrriert oti•ol.eno iivon rent to, inisoleners. e.rd very iow income lhoideenciois at afforsiabie rents, ietriort -ere 'below rhsricef. * 7,hie affortabilierF restrict ions imposec o the ::pa - through rediticei trio oroce,rty ▪ Thee 3P77,'",,,C,:t would not ote feasible -i#/ithout, 3% Tex Orecilts and the /lige-riot,/ assistance. rZAR.$(3;Sailjadro,,Tax crsdit prolectI,Sama RauS.S. aralytis 5-25-73.doc Mr. Stever Pasarow June 28, 2906 Page 4 of th. , 1^ n'!. tl [._ indicates Its o ct e das`�natie A review by RSG the Developer' rotor la . d;vates ., ,,��ie��e� :,s;s are�.. _i within industry standards. The price of the land indicated in the D A, 5884,300, subject to the a other terms of the DDA, is not Tess than the fair reuse value of the and. Thank you for the opportunit o esiev ®. ,r projeti behalf. f'yseif available for disc sslc UTS ROSEOtfis rest,' Mr. Steven Pasarow June 25, 2006 Page EX-@B T A 31 Unit Market irate Condominium Project 100% of units ,market :ate - unrestricted Use: Condominiums land size: 708.717 FAR: 0.48 Revenue br'ba 3-br 2 ba 4-Pr 20 ba Total income 99,400 sqft. size; cit 3-3G -25G ,40.0 50.00E 29.400 99.40G 17 units per acre 1,227 sq. ft. per unit nc _nts 295 35c 000 395,000 280 282 `4.'u0 3,295.30; 28,95.30 31 t.init Market at Condominium Project 100% of units market ate - unrestricted peveIopmert Costs: _and Construction - ; esside: Community Bide. on -site work off -site work allowance 3.' 26 per sq.... so. --. 3P323 4,965 `r 2n .315.00 Subtotals - hard costs Soft posts: Architecture & Engineering Fees & Permits Utility & capacity charges consultants allowance legal & accounting allowance con. :financing - points 3 con. financing interest 3 perm Finan= Tots allowance marketing T:,-.ti- -.,C 3 fees 5.00% of hard -costs $12.42 per sq. ft. $1.56 per sq. -. .50% of loan amount 80%30% utstsrd.P .30% property taxes .. 0% insurance nce & bonds 12 furniture &. equipment allowance Homeowner's Association Expenses contingency 5.00% 8% of hard costs Subtotal soft costs Total development Developer fee of hard costs of far_ costs 6 months ;c $200e unit:month of hard costs ets excluding developer feu 1250% Dfra,snue - er 3ae.. ATirtrtsrzt 384,30: 2.320 a3 $38:,559 $3.`.4 $3,856 13.539.422 a=157 192 37;9 781,971 :96,333 150,000 50,000 125,000 317134 t. 75, COO 3 812.03 $.* E66 51.51 $1.652 $0.50 $617 $1.26 $1,543 $3.12 $3,915 .,c._. 80.75 2:03,312 $2.35 a =-., .254.32 i.5T 824,135 80.98 $ r00 781,971 37.87 89 654 524.5 w2 a $29,. ish. i ctal COST Tatai Value 4dditeer?ef Profit (Cost Cases $7,598 391.E .$27..35 $340 72. 328. 95,000 328. 35 334 386 ,.S:'San ;_a,:d- ys: ..xt -a ,S Fe 3-22-,:a9cc EXHIBIT 9% Tax Credit Apartment Pro!ect 100% of units affordable to moderate, low, or very low Use: Apartments 17 land size: 208,217 FAR; 0.41 income bousaho.eo units per acre Revenue 85,261 sw.*t. 1.053 size/unit - sq. ft. %AMI 2-br 1 ba 941 3,764 30.00% 2-br 1 be 941 12,233 45.00% 2-br 1 be 941 12,233 50.00% 2-br 1 ba 941 9,410 60.00% 3-br 1 be 1 ;167 4,668 30.00% 3-br 1 be 1.167 12,837 45.00% 3-br 1 ha 1,167 19,839 50.00% 3-br 1 be 1.167 9,336 60 30%. 2 br 1be imenacer'si 941 941 Total rental income 85,261 miscellaneous income r 14.3 Gross Potential Income vacancy & collection losses 5. 0G% Gross Effective income Operating Expense iuen: al . © 34,4C2 per Reserves G $263 per Net Operating income Capitalization Rate . Property Value Value per unit Value per square foot sq. ft. per unit no units IT per year er `ear 6,372 596 7,152 726 5,12 .8c 4,332 610 7,320 685 8,220 8?5 n nr 0 10;a. i3.06 92;978 9.0 80.520 139,740 80.160 0 598.056 .44.4310 _. 2.15E 1. iff 205, .31-•, 6.50% 5557 54,4? 0 38,944 9% Tax Credit Apartment ?r ilecf 100% of units affordable to glacier- evetonment Costs: Land Hard Costs: Construction - residential Community Eldg. on -site work off -site work 208,217 allowance e ;?osecsds .i24.2.5 per sq. Et. so. ft. 5 sa. 1 96,320 590.34 4.965 5114.56, 208,217 511.91 Subtotal - hard costs Soft Costs: Architecture & Engineering Fees & Permits Utility & capacity charges consultants allowance ieoal accounting allowance con. financing points 1.28% Of 'oan amount of con. financing - interet 7.50% . o3% outstanding pa-m. Financing - cis 2.31% marketing allowance TCAC fees properly taxes 0.33% of ;hard costs insurance ? blonds 1.31% o. hard costs furniture & equipment allowance leaseup & operating reserves b months �v avg. 45?.% occuoa contingency 7.01% of hard costs Subtotal - soft costs 42.19% of hard costs 3.72% of hard costs 318.68 per sq. ft. 2.50 per sq. It. Total development casts .. c!'::d inc developer tee -Developer lee 11.06% of costa ' 6 2,C24,738 Per Sii.do. Amount Sq. t. per vn 3,730,767 68,790 2,479,447 312,265 590.54 66.37 $29.08 53.66 5 07;737 $7,022 330,610 63.855 12,091,270 9.,c70 3141.81 514.,275 450, 0CC 799, 42. 250,000 3, 300 5,00C 749,998 56,375 60,000 90,000 40,000 ''985 15l30C 138,707 347.181 $5.28 $5 556 621.10 52" 2'15 $2.93 63,086 0.00 50 $1.00 '51 _343 52.05 58.30 $9,259 40.57 $ 7 02 r.,.59 $617 61.0E $1 111 60.47 $494 62.57 232,704 $1.78 $31 552 51.33 £s 71 59.94 510.459. 5,101,173 359.83 $62,277 3,076743 2 .02 2 000,f000 $23.46 $24 T otal cost ;Total Value ,mefft $20,076 743 $3,154.480 $235.47 537.00 ES; $247,881 u38, 0-. STATE OF CALIFORNIA COUNTY OF RIVERSIDE) ss CITY OF SAN JACINTO ) A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO, CALIFORNIA, APPROVING AN AFFORDABLE HOUSING DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO AND PALM DESERT DEVELOPMENT COMPANY CONCERNING THE DEVELOPMENT OF AN EIGHTY-ONE (81) UNIT AFFORDABLE HOUSING DEVELOPMENT ON SANTA FE STREET BETWEEN ESPLANADE AVENUE AND OA OOD STREET IN THE CITY OF SAN JACINTO AND MAKING CERTAIN FINDINGS PURSUANT TO CALIFORNIA HEALTH AND SAFETY CODE SECTION 33433 IN CONNECTION THEREWITH WHEREAS, pursuant to the previsions of California Redevelopment Law (California Health and Safety Code Section 33000 et seq.) (" RL"), the City Council ("City Council") of the City of San Acrratc Caay appiroved and adopted a redevelopment plan ("Redevelopment Plan) for the San, Jacirtc Redevelopment project Area ("Project Area"; and WHEREAS, the Redevelopment Agency of the C C"Agency") is engage,c in activities necessary to execute and implement t 'l e Receieieprnent molar um at',e Project Area; and WHEREAS, the Agency owns that certain real property within the Project Area consisting of approximately 4.78 acres located on Santa Fe Street between Esplanade Avenue and Oakwood Street, commonly referred to as Assessor Parcel Number 439-070-022 ("Property"); and WHEREAS, Palm Desert Development Company, a California corporation ("Developer") desires to acquire the Property from the Agency and construct on the Property an eighty -ore (81) unit multi-fami y affordable rental housing project ("Project") comprised of forty " two -bedroom units, and forty (40) three -bedroom units subject to the following occupancy restrictions: `E1 Eighteen (l3) of the units restricted for lease to households- at or below one hundred twenty percent (1l20%) of the area median income; T lei, y (30) units restricted for lease to l,ousehoids t =� area median `ncome; ✓— I i'J't1'w _32 units restricted for lease to households (50%' of the area median income. One t unit restricted for u managing the project person or household that is RI JBHS ANE /!6=54.1 WHEREAS, to assist in the development of the Project on the Property, the Agency desires to provide the Developer a predevelopment grant in an amount not to exceed Two Hundred Fifty Thousand Dollars (6250,000); a purchase loan for the purchase of the Property in an amount not to exceed Eight Hundred Eighty Four Thousand Three Hundred Dollars ($884,300); and a loan in an amount not to exceed Two Million One Hundred Sixty Five Thousand Seven Hundred Dollars ($2,165,700), ail to assist the Developer in financing the development of the Project on the Property ("Agency Assistance"); and WHEREAS, in consideration of the Agency Assistance, the occupancy restrictions maintaining the affordability of the Project will be ensured for a fifty-five year term pursuant to a regulatory agreement to be recorded against the Property: arid WHEREAS, the Agency and the Developer have negotiated rine terms of that certain Santa Fe Street Affordable Housing Disposition and Development Agreement ("Agreement"); which provides for, among other things, the Developer's. development of the Project on the Property and the Agency's provision, of the Agency Assistance to the Developer; and WHEREAS, a copy of the proposed Agreement is and has been on The at, the Agency office; located at 248 East Main Street San -Jacinto; California G2583, and available for public review during normal business hours of the Agency, since June 23-, 2006; and. WHEREAS, the Agency has determined that implementation of the Agreement: (i) is in the best interests of The City and the Agency and the health, safety and welfare of the City's taxpayers and residents and is in accordance with the public purposes set forth in the Redevelopment Plan and CRL, (ii) strengthens the City's land use and social structure; (iii) alleviates economic and physical blight in the City; and (iv) provides needed affordable housing in the City; and WHEREAS, pursuant to Government Code Section 65402, the Planning Commission of the City must determine prior to the time of conveyance of the Property to the Developer that the location, purpose, extent and development of the Project are in conformance with the City's general plan; and WHEREAS, pursuant to CRL Section 33433 the City Council of the City (acting as the Agency's legislative body) must make certain findings and determinations in connection with the Agency is sale of the Property, which was acquired with Agency tax increment revenue; and WHEREAS, pursuant to CRL Section 33433, the Agency has caused to be prepared, and the City Council has reviewed and considered, a summary report ("Summary Report") setting forth: (1) the cost of the Agreement to the Agency; (2) the estimated value of the interest to be conveyed; and (3) an :explanation of how the acquisition and conveyance of that interest will assist in the elimination of blight within the Project Area and the Agency has made the Summary Report available for public RI.TPUB'ESPANE `, 716154.1 inspection in, accordance with CRL Section 33433; and WHEREAS, pursuant to CFI Section 33433, on June 23, 2006, and June 29, 2006, the Agency caused notice of the joint public hearing of the City Council and the Agency's Governing Board to be published in a newspaper of general circulation within the Agency's territorial jurisdiction; and WHEREAS, pursuant to provisions of CRL Section 33433, or July 6, 2006, the City Council and the Agency's Governing Board held a duly noticed joint public hearing on the proposed Project and on the proposed Agreement; and WHEREAS, the Project is a "project" subject to the California_ Environmental Quality Act ("CEQA"); ant WHEREAS, a Mitigated Negative Declaration ("MND") was Lrevlousiv prepared for this Project, and was analyzed and adopted on May 13, 2006, all in accordance with the requirements of CEQA; and WHEREAS, pursuant to State CEQA Guidelines Section 16162. the Agency, as the lead agency, has determined that ,-'one of the conditiozis requiring; preparation of a subsequent Negative Declaration, NAND, or Environmental ilmj_tiadt Report ("ER") have occurred regarding the Project; and WHEREAS, the Agency has ,determinee that the 7equrements of Acie XXXiV of the California Constitution (which requires an election to be heid in the City in the event of the acquisition, construction or development of a low -rent housing project) does not apply to the Project because the Project wily not be developed, constructed or acquired by the Agency; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the City of San Jacinto Redevelopment Agency as foilowe: Seddon 1. The Agency's Board of Directors approves the Agreement, in substantially the form presented to the Board of Directors. Section 2. The Executive Director is hereby authorized to execute the Agreement on behalf of the Agency, together with such charges and amendments as may be approved by both the Executive Director and Agency Counsel. The Executive Director is further authorized to take any actions and execute any and all necessary documents to implement the Agreement. ton. 3. The Agency Board certifies that it has reviewed and considered the MND adopted for the Project on May 13, 2006 along with the proposed Agreement, and in its independent judgment finds that: R.VPUBV-ISHANT:\ 716154.1 No substantial changes to the Project have been proposed which would require major revisions of the MND due to new significant environmental effects, nor has any change been proposed that would lead to any increase in any previously -identified significant effects and no subsequent MND is required. No substantial changes have occurred with respect to the circumstances related to the Project which would require major revisions of the MND, thus there will be no new significant environmental effects -for any increase it any previously identified significant effects and no subsequent BAND is required. There is no new information of substantial ;npcTtarace regarding the Project which was not previously known or considered prior to adoption of the MND In light of the above findings and pursuant tc• State CEQ ,. Guidelines Section 15162, no subsequent Negative Declaration:,, MND, or EIR is required. Therefore, and in accordance with both �ECA and the State CEGA Guidelines, eno `'rther analysis under CEQA is required. Section 4. The Agency Board directs staff to file a Notice of Determinat o wish the Riverside County Clerk's Office within five 5) working days of the adoption of this Resolution. Section 5. This Resolution shall take effect immediately upon its adoption; provided however that the Agreement shall not be entered into on behalf of the Agency until all matters related to Conditional Use Permit 1 -03 are resolved to the satisfaction of the Agency Board. APPROVED and ADOPTED, this 6`° day of July, 2006 by the following vote: Vote: Ayes: Nays: Abstain: vacir;tL by Dale Stubblefieid, Chairman of the Redevelopment Agency of the C tv of San. Jacinto R u? . Sri Vc\7 6 54.: ATTEST: Dorothy Chouinard, Agency Secretary RVPIJP.AHR-Td•47z.\.716154.1 Community Redevelopment Law (CRL) includes provisions for using twenty percent of its Redevelopment Funds (Housing Set -aside) to improve and increase the supply of affordable housing. Rehabilitation of property is an eligible expenditure from the Housing Set -aside Fund. The property rehabilitation will assist the Agency in meeting its housing obligations. ATTACHMENTS: • ATTACHMENT: Before & After Floor Plans Page 3 of 3 Fatnilyrown Kitchen Dintnzroom .,,;(17:7';i1:-)„ II ,l'il ../ Washer/ . . - drayer „ 1/7 Bath , .. i 1 , ---: ' ' - ------- - 1 . \ _i - 1 , 1 1 Storege. 7 Car Crag-' IV 0' 1st floor plan before th,, addition .0 AY Familyroom Wather/ drayer i 11 i I 1 ',.N.> ,,, 10 ..-4 „ ,- /Vett, ----t:—. --- Kitchen Storege Bath •1 v Ir 2 Car Garage Diningroom Livingroom Balloor plan afier the addition flA --- 81_0a 1 Nov patio slab 6' 0 _71 •• Bedroom It 4 11 -6" 3Lopp Linen C/L t .t "3° W, 6 fF " • L3' 45" Bedroom # 5 cri 4'-0" C/L C/L 5`, 0" 14' -0" 28 41" Z1` STATE OF CALIFORNIA COUNTY OF RIVERSIDE )ss CITY OF SAN JACINTO ) ORDINANCE NO, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN JACINTO AMENDING THE TIME LIMIT OF THE EFFECTIVENESS OF THE REDEVELOPMENT PLAN FOR THE SOBOBA SPRINGS REDEVELOPMENT PROJECT AREA PURSUANT TO HEALTH AND SAFETY CODE SECTION 33333.6(d)(1) WHEREAS, the City of San Jacinto Redevelopment Agency ("Agency") is a community redevelopment agency duly created, established, and authorized to transact business and exercise its powers, all under and pursuant to the California Community Redevelopment Law (Part I of Division 24, commencing with Section 33000 of the Health & Safety Code of the State of California) ("CRL"): and WHEREAS, pursuant to Ordinance No. 767 adopted or, December 27, 1983, the City Council of the City of San Jacinto ("City Council") adopted the Redevelopment Plan ("Redevelopment Plan") for the Soboba Springs Redevelopment Project Area ("Project Area"); and WHEREAS, the Redevelopment Plan currently provides that, among other things, the effectiveness of the Redevelopment Plan expires forty-five (45) years from the date of adoption ("Effectiveness Deadline"); and WHEREAS, pursuant to CRL Section 33333.6(a), the effectiveness deadline for redevelopment plans adopted on or before December 30, 1993 may not exceed forty (40) years from the date of adoption of the redevelopment plan or January 1, 2009, whichever is later; and WHEREAS, pursuant to CRL Section 33333.6(d), the legislative body is required to amend any redevelopment plan adopted on or before December 30, 1993 that does not conform to the forty (40) year effectiveness deadline; and WHEREAS, it has been brought to the attention of the Agency and the City Council that the Effectiveness Deadline of the Redevelopment Plan does not comply with the forty (40) year effectiveness deadline required by CRL Section 33333.6(a); and WHEREAS, the City Council desires to adopt this ordinance ("Ordinance") to amend and reduce the Effectiveness Deadline of the Redevelopment Plan, as more particularly set forth below, in accordance with CRL Section 33333.6; and WHEREAS, pursuant to CRL Section 33333.6(d)(2), such amendment may be adopted without compliance with standard procedures for redevelopment plan amendments; and RVPUMHSHAND.71 61 66. WHEREAS, City staff has determined that the enactment of this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code Section. 21000 et seq.) ("CEQA") pursuant to CEQA Guidelines Section 15378(b)(4) because it is a fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Jacinto as follows: SECTION 1. The City Council of the City hereby reduces the Effectiveness Deadline of the Redevelopment Plan for the Soboba Springs Redevelopment Project Area from forty-five (45) years to forty (40) years. SECTION 2. Except to the extent a longer period of time may be allowed pursuant to the provisions of the CRL as it exists now or may be amended, the first sentence of Section 1000.00 of the Redevelopment Plan for the Soboba Springs Redevelopment Project Area is hereby amended and replaced in its entirety as follows: "Duration of Plan. Except for the nondiscrimination and nonsegregation provisions which shall run in perpetuity, the provisions of this Plan shall be effective and the provisions of other documents formulated pursuant to this Plan may be made effective for forty (40) years from the date of the adoption of this Plan by the City Council...." SECTION 3. The Redevelopment Plan, as amended, shall remain in full force and effect, unmodified except as to the extent of the amendment expressly set forth in this Ordinance. SECTION 4. The City Council hereby authorizes and directs the City Manager to undertake such actions and execute such documents as may be reasonably necessary or convenient to the carrying out and administration of the actions authorized by this Ordinance. SECTION 5. If any section, subsection, sentence, clause, phrase or word of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. RVPUB \FISHANE \ 716166.1 SECTION 6. All ordinances or parts of ordinances in conflict with the provisions of this Ordinance are hereby repealed. SECTION 7. The City Clerk is directed to publish this Ordinance in the manner and in the time required by law, and this Ordinance shall take effect 30 days after adoption. SECTION 8. The City Clerk is hereby authorized to file a Notice of Exemption with the County of San Bernardino Clerk's Office pursuant to CEQA Guidelines Section 15062 within five (5) working days of the adoption of this Ordinance. APPROVED AND ADOPTED this 6th day of July, 2006 by the following vote: AYES: NOES: ABSENT: ABSTAIN: City of San Jacinto Dale Stubblefield, Mayor ATTEST: APPROVED AS TO FORM: Dorothy Chouinard Best Best & Krieger LLP City Clerk City Attorney RVP111311-1SHANE1716166.1 AGENDA 3. a ACTION MINUTES REGULAR MEETING OF THE SAN JACINTO CITY COUNCIL JULY 6, 2006, 7:00 p.m. San Jacinto Unified School District Board Room 2045 South San Jacinto Avenue, San Jacinto, California ORGANIZATION 1.1 Call to Order Mayor Dale Stubblefield called the Regular Meeting of the San Jacinto City Council to order at 7:07 p.m. 1.2 Roll Call Present: Jim Ayres, Chris Carlson Buydos, Dale Stubblefield Absent: Robert Ritchie, Ken Shaw 1.3 Invocation Reverend Bob Sauter gave the invocation. 1.4 Pledge of Allegiance City Treasurer Jim Potts led the Pledge of Allegiance. 1.5 Special Presentations 1.5.1 Mayor Stubblefield recognized the Fire Department for their assistance with the July 4, 2006 parade. 2. PUBLIC COMMENTS: • Joel Ortis, representing the Hispanic Chamber of Commerce, 25531 Fairview Hemet • Bill Savage, 121 Tradewinds Lane, San Jacinto • Viet Tran, representing Southern California Edison in response to Mr. Bill Savage 2.1 City Manager's previous month's public comment report / City Manager 3. CONSENT CALENDAR 3.1 Warrants at 07/06/06 / Approve / Finance Director City Council Action Minutes July 6, 2006 Page 2of10 3.2 Action Minutes June 15, 2006 / Approve I City Clerk 3.3 Treasurer's Report May 31, 2006 / Approve / Finance Director 3.4 Ordinance No. 06-16 - Tentative Tract Map No. 32574 (TTM 32574) to facilitate a residential development of 131 single-family lots located east of Lyon Avenue between DeAnza Drive and Cottonwood Avenue / Approve second reading and adopt Ordinance No. 06-16 approving Change of Zone 2-06 based on Planning Commission's Conditions of Approval and by further motion read by title only: An Ordinance of the City Council of the City of San Jacinto, California, approving a Change of Zone of Tract 32574 from Residential Agriculture Accessory Business (RAAB) to Single Family Residential (R-1), located east of Lyon Avenue between De Anza Drive and Cottonwood Avenue 3.5 Solicitation of RFP for Special District Accounting and Consulting Services /. Approve / Finance Director 3.6 Senate Bill 1266 — Perata Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 Update / Receive and File / City Manager 3.7 Ordinance No. 06-19 repealing High Density Ordinance 05-34 / Approve introduction and first reading of Ordinance No. 06-19 and by further motion read by title only: An Ordinance of the City Council of the City of San Jacinto Repealing Interim Urgency Ordinance No. 05-34 Limiting the Development of High Density Residential Land Use Projects / Community Development Director .8 Resolution No. 2926 / A Resolution amending and adopting local guidelines for implementing the California Environmental Quality Act (PUB. Resources Code Sec. 21000 et seq.) I Approve and Adopt / City Attorney 3.9 Grant of Easement Deed I Right -of -Way Dedication for landscape easement along Cottonwood Avenue T30813-1 / Approve / City Engineer 3.10 City Manager Employment Agreement / Approve and authorize Mayor to execute / City Attorney 3.11 Dedications from Metropolitan Water. District - permanent easements Nos. RL2213 (Warren Road) and RI_ 2402 (Upperline Avenue) The Cove City Council Action Minutes July 6, 2006 Page 3 of 10 Specific Plan Warren Road Improvements / Accept / City Engineer 3.12 Parks Landscape Maintenance Contract Award: a) Award public works contract to Pacific Coast Landscape for $69,600 b) Authorize the Mayor to execute the contract with Pacific Coast Landscape c) Direct City Clerk to reject all other bids 3.13 Rancho San Jacinto Park, Channels & Basins Landscape Maintenance Contract Award: a) Award public works contract to Pacific Coast Landscape for $153,000 b) Authorize the Mayor to execute the contract with Pacific Coast Landscape c) Direct City Clerk to reject all other bids 3.14 Parkways, Medians and Residential Area Landscapes Maintenance Contract Award: a) Award public works contract to EZ Sunnyday Landscape for $123,600 b) Authorize the Mayor to execute the contract with EZ Sunnyday c) Direct City Clerk to reject all other bids 3.15 Temporary road closure — Warren Rd. from Cottonwood to Esplanade Avenue / Approve / City Engineer Council Member Buydos pulled Item No. 3.15 for comment. M/S/C (Ayres / Buydos) moved to approve the Consent Calendar as presented with Council Member Buydos making a friendly amendment to add increased signage at Warren and Ramona as well as Warren and Sanderson and notice of signs preferably electric. Council Member Ayres concurred. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw 4. PUBLIC HEARING 4.1 Rancho Estrella Specific Plan — to develop 283 detached single family homes on 5,000 and 6,000 square foot lots, an 8.23 acre public park, 1.2 acres of public parks, 2.1 acres of greenbelt, a 4 acre detention basin, and 9.4 acre reserved for the future alignment of Highway 79. Tentative Tract Map No. 33141 / Applicant: Century American Development / City Council Action Minutes July 6, 2006 Page 4 of 10 Community Development Director a) Approve and Adopt a mitigated Negative Declaration and its associated Mitigation Monitoring and Reporting Program b) Approve introduction and first reading of Ordinance No. 06-18 and by further motion read by title only: An Ordinance of the City Council of the City of San Jacinto, California Approving Change of Zone 8-05, A Zone Change from R-2, (Two Family Residential) to SP (Specific Plan), on property located on west of Sanderson Avenue, South of the Casa Loma Canal, East of Cawston Avenue, and North of Cottonwood Avenue c) Resolution No. _ / A Resolution approving Planning Commission Specific Plan 01-2-05, a specific plan to be known as the Rancho Estrella Specific Plan / Approve and Adopt d) Resolution No. _ / A Resolution approving Tentative Tract Map No. 33141 for the for Rancho Estrella Specific Plan, 241-lot subdivision located generally west of Sanderson Avenue, south of the Casa Loma Canal, East of Cawston Road and north of Cottonwood avenue / Approve and Adopt Applicant has requested a continuance to August 3, 2006. 4.2 Resolution No. 2927 / A public hearing to consider a tax-exempt bond financing to be issued by the California Municipal Finance Authority to benefit Edelbrock permanent Mold Inc. / Approve and Adopt / Economic Development Specialist Mayor Stubblefield opened the public hearing at 7:28 p.m. Public Comments: • Jeff Thompson, Executive Vice President and CEO of Edelbrock, Applicant, spoke. • John Stocker, Edelbrock's Chief Financial advisor, spoke Mayor Stubblefield closed the public hearing at 7:32 p.m. M/S/C (Buydos / Ayres) moved to approve and adopt Resolution No. 2927 as presented with the caveat that Condition No. 4 go to benefit the PAL program. Motion carried 3l0. Ayes: Ayres, Buydos, Stubblefield Nays: None City Council Action Minutes July 6, 2006 Page 5 of 10 Abstain: None Absent: Ritchie, Shaw 4.3 Resolution No. 2928 / A Resolution certifying the results of an election and adding property commonly known as APN No. 433-242-010 into Community Facilities District No. 2003-1 for Police and Fire Services (CFD 2003-1, Annexation No. 34/ Approve and Adopt/ Special Tax Consultant and City Attorney Mayor Stubblefield opened the public hearing at 7:34 p.m. No one was present to support or oppose Resolution No. 2928. City Clerk Chouinard reported no written comments were received a certified the election, noting the majority is in favor of the annexation and assessment, Mayor Stubblefield closed the public hearing at 7:35 p.m. M/S/C (Buydos / Ayres) moved to approve and adopt Resolution No. 2928 as presented. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw 4.4 Resolution No. / A Resolution certifying the results of an election and adding properties commonly known as APN Nos. 433-291-040, 433- 291-041, and 433-300-031 into Community Facilities District No. 2003-1 for Police and Fire Services (CFD 2003-1, Annexation No. 33/ Approve and Adopt/ Special Tax Consultant and City Attorney This item was continued until July 20, 2006. 4.5 Resolution No. 2929 / A Resolution approving the Engineer's Report and declaring the intention to levy and collect assessments within LLPD No. 1, giving notice and setting the time and place of the public hearing on the levying of the proposed assessment fiscal year 2006-2007 annual levy. / Approve and Adopt I Special Tax Consultant and City Attorney M/S/C (Ayres I Buydos) moved to approve and adopt Resolution No. 2929 as presented. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw City Council Action Minutes July 6, 2006 Page 6 of 10 4.6 Resolution No. 2930 / A Resolution approving the Engineer's Report and to levy and collect assessments within LLPD No. 2, for fiscal year 2006- 2007- annual levy. / Approve and Adopt / Special Tax Consultant and City Attorney Mayor Stubblefield opened the Public Hearing at 7:45 p.m. City Clerk Chouinard reported no written comments were received and certified the election, noting the majority is in favor of the annexation and levying of assessments. Major Stubblefield closed the Public Hearing at 7:46 p.m. M/S/C (Ayres / Buydos) moved to approve and adopt Resolution No. 2930 as presented. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw 4.7 Landscaping, Lighting, and Park District No. 2 (LLPD No. 2) Annexation No. 58 (DHI San Jacinto I, LLC — Tract No. Tract 32250) / Special Tax Consultant and City Attorney a) Resolution No. 2931 / A Resolution initiating proceedings for the Annexation of property into LLPD No 2 — Annexation No. 58 / Approve and Adopt b) Resolution No. 2932 / A Resolution approving the Engineer's Report for Annexation No. 58 into LLPD No. 2 / Approve and Adopt c) Resolution No. 2933 / A Resolution declaring intention to annex property into LLPD No. 2 — Annexation No. 58 / Approve and Adopt d) Public Hearing / At the conclusion of the public hearing if the City determines that a majority protest does not exist, by motion approve the certification of the election results for adding certain property into LLPD No. 2 known as Annexation No. 58 / Approve and Adopt Resolution No. 2934 / A Resolution ordering annexation of territory into LLPD No. 2 and levying assessments M/S/C (Stubblefield / Buydos) moved to approve and adopt Resolution Nos. 2931, 2932, and 2933 as presented. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw City Council Action Minutes July 6, 2006 Page 7 of 10 Mayor Stubblefield opened the public hearing at 7:47 p.m. There was no one present to support oppose Resolution No. 2934. City Clerk Chouinard reported no written comments were received and certified the election, noting the majority is in favor of the annexation and assessment, Mayor Stubblefield closed the public hearing at 7:48 p.m. M/S/C (Buydos / Ayres) moved to approve and adopt Resolution No. 2934 as presented. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw 4.8 Landscaping, Lighting, and Park District No. 2 (LLPD No. 2) Annexation No. 59 (Ramona State Plaza, LLP — APN Nos. 433-291-040 and 433-291- 041) / Special Tax Consultant and City Attorney a) Resolution No. _ / A Resolution initiating proceedings for the Annexation of property into LLPD No 2 — Annexation No. 59 / Approve and Adopt b) Resolution No._ / A Resolution approving the Engineer's Report for Annexation No. 59 into LLPD No. 2 / Approve and Adopt c) Resolution No. _/ A Resolution declaring intention to annex property into LLPD No. 2 — Annexation No. 59 I Approve and Adopt d) Public Hearing / At the conclusion of the public hearing if the City determines that a majority protest does not exist, by motion approve the certification of the election results for adding certain property into LLPD No. 2 known as Annexation No. 59 / Approve and Adopt Resolution No. / A Resolution ordering annexation of territory into LLPD No. 2 and levying assessments This item was continued until July 20, 2006. Item 4.9 to be continued to be heard at the same time as RDA Item 4.1. (because RDA closed session 7.3 & 7.4 have to be done before they can act on City Council Item 4.9 and RDA 4.1) Mayor Stubblefield recessed the Regular City Council Meeting at 8:40 p.m. to consider the Redevelopment Agency Closed Session items, and reconvened the regular meeting at 8:48 p.m. 419 Resolution No. 2935 I A resolution approving affordable housing City Council Action Minutes July 6, 2006 Page 8 of 10 disposition and development agreement between the Redevelopment Agency of the City of San Jacinto and Palm Desert Development Company concerning the development of an 81-unit affordable housing development on Santa Fe Street between Esplanade Avenue and Oakwood Street and making certain findings pursuant to California Health and Safety Code Section 33433 / Approve and Adopt / Deputy City Attorney Mayor Stubblefield opened the public hearing at 8:50 p.m. There were no public comments. Mayor Stubblefield closed the public hearing at 8:51 p.m. M/S/C (Ayres I Buydos) moved to approve and adopt Resolution No. 2935 as presented. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw 5. STAFF REPORTS 5.1 Planning Commission Vacancy I Appoint I City Clerk This item was continued until the July 20, 2006 City Council meeting. 5.2 Inclusionary Housing Policy and In -Lieu Fee Program / Presentation and direct staff to proceed to finalize inclusionary housing policy and in -lieu fee program; and prepare ordinance for adoption / Community Development Director • Jose Ometeotal, representing the Rosenow Spevacek Group (RSG) spoke M/S/C (Chris / Ayres) All the City Council Comments of tonight's meeting to be forwarded to the Redevelopment Agency Operations Manager Steven Pasarow; look at other cities' programs and include dialog with developers before it is brought back to City Council. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None City Council Action Minutes July 6, 2006 Page 9 of 10 Abstain: None Absent: Ritchie, Shaw 5.3 Total Maximum Daily Load Task Force Agreement with Lake Elsinore and Canyon Lake Task Force / Approve / Authorize mayor to execute agreement M/S/C (Ayres / Buydos) moved to approve and authorize the execution of this agreement as presented. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw 5.4 International Conference of Shopping Centers (ICSC) Report / Receive and File I Economic Development Specialist M/S/C (Buydos / Ayres) moved to receive and file this item as presented. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw 5.5 Voting Delegate for League of California Cities Conference September 6- 9, 2006 / Select delegate and alternate I City Manager M/S/C (Ayres / Stubblefield) moved to appoint Dale Stubblefield as the delegate and Ken Shaw as the alternate. Motion carried 3/0. Ayes: Ayres, Buydos, Stubblefield Nays: None Abstain: None Absent: Ritchie, Shaw 6. MAYOR I COUNCIL MEMBER REPORTS I DISCUSSIONS 6.1 Council Members' Reports Council Members gave their reports. Mayor Stubblefield recessed the Regular Meeting at 8:56 p.m. and reconvened in City Council Action Minutes July 6, 2006 Page 10 of 10 Closed Session at 9:10 p.m. 7. CLOSED SESSION 7.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: Northeast corner of San Jacinto Ave. and 6`" Street - Riverside County Assessor Parcel Nos. 437-076-004; 006; 007 & 008 Agency negotiator: Barry McClellan, City Manager Negotiating parties: Graciella C. Cruz Under negotiation: Price and Terms" No reportable action. 8. ADJOURNMENT With no further business before the City Council, Mayor Stubblefield recessed the Regular Meeting at 9:50 p.m. ATTEST: Dorothy L. Chouinard, City Clerk City of San Jacinto by Dale Stubblefield, Mayor Approved as read: Approved as amended: REDEVELOPMENT OPERATIONS MANAGER STEVEN PASAROW AGENDA EGULAR MEETING OF THE SAN JACINTO CITY COUNCIL JIJLY 20,.2006, 7:00 p.m;, San Jacinto Unified School District Board Room 45 South San Jacinto Avenue,'San Jacinto, California; ORGANIZATION 1;<1 Call to t rde oll Oa invocation Pledge of Allegiance Special Presentations ✓ 1;5,1 Proclamation regarding former Mayor Wendell Outfit) Recognition of Cook -off participants PUBLIC COMMENTS: Now is the time for the public to address the Council on any subject within the Jurisdiction Of the .Ci; Council not listed: on the agenda. • A limitation of three (3) minutes shall be set for each person ; ' '.desiring to address the City Council., NSENT CALENDA The matters listed under Consent Calendar are considered rdutine.andwill be enacted by one motion 'by City Council Members in the,fo'rm listed:' There will be no separate discussion on these items prior to the motionunless; members of the City Council; Staff or the public requests a specified item be removed and/or discussed."if an item is pulled, it' will be, heard at the. end of number.'S: Staff Reports. 3.1 Warrants at 0.7/20/06 I Approve I Finance Director l ction Minutes July 6, 2006 / Approve /; City Cierk. . Ordinance No. 06-19 repealing High Density Ordinance ti5-34 / Approve second reading and adopt Ordinance No. 06-19 and by further motion read by title only An Ordinance of the City Council of the City of San Jacinto Repealing interim urgency Ordinance No. 05 34.Limiting tine Deve Density Residential Land ;Efse Projects Immunity:Development Director Grant Deed; for Lots "GP" and.,"R" of Tract No. 31097 for Master l rain Facilities Line 3 Continental Residential Inc l Approve acceptance a. authorize citymanager to execute.same I City Engineer Reduction of Bonds- Final Tract Map 30828 / Accept the'public improvements installed by Western Pacific Housing Inc T30828, Authorize 75% bond reduction of labor and performance bonds and; Direct City Clerk tr notify"developer and surety company of Clt 's action f City Engineer Final Tract Map 33053 Graciela C. Cruz / Approve FTM:33053 Authorize; Mayor to sign same and Authorize City Clerk to release same for recordation PJana anti specifications frr`the Lyon Avenue Flood Control Basin 1 tAp and Authorize City' Clerkto advertise for public bids i C t r Engineer Traffic Calming Improvements; placement; and installation of%speed along LoriAn reef/ Approve I,City Engineer Law Enforcement Contract;�n modification /Chief of Police hRiverside :County /.Appccve,propose Resolution No;: ! A Resolution of intention ,initiating annexation of territo%ry (commonly known as oostd.am Dai(y,.- T31294): into AD No. 2003-01 for roa,! street and highway maintenance Annexation 21 /;Approve arid Adopt ;' Special Tax Consultant and City Attorney Resolution Resolution. approving; the Engineers: Report for Annexation No. 21 .(Dostdam Dairy`-T31294) in AD.2003-1 1 Approve'an i Adopt. Special. Tax;Consultant and City Attorney Resolution No. / A'Resolution of intention initiating annexation"of territory (commonly known as Lennar Homes of California Inc T32499),nto AD`No. 2003..01..for road, .street, and; highway maintenance Annexation;22 / Approve arm Adopt„Special Tax Consultant and City,Attorney Resolution No. j A Resolution approving the Engineer%'s Report for Annexation No.: 22; (Lennar Homes Of California IncT 32499), in AD 2003- i 1 Approve and Adopt Special Tax Consultant an: City Attorney Resolution:No.—/A.resolution approving Lighting, Landscaping;'Pa District No. 2 {LLPD #2) early transfers of maintenance obligation, an outlining rules and delegation authorizing city manager authority to sic ounci( Agenda July 20,:2006.. Page'3• of'5 agreements / Approve: and Adopt l Finance Director Client Conflict Waiver Letter re: Lehnar,Homes of California Inc regarding,` financing districts I Approve and Authorize City Manager:to executewaiver letter!: CityAttorney Client Conflict Waiver Letter. re: Lerinar Homes of California Inc regarding' CC&Rs ,/ Approve and' Authorize City Manager to exec€te letter - City; Attorney` 17. 'Resolution' No t,A Resolution'adopting a race -neutral disadvantaged business enterprise (DBE) program, including methodology plan tc acnleve DBE compliance:/Approve; and Adopt /-'City Engineer esolution No. / A.,Resolution 'approving the dedication by the City of San acinto Redevelopment. Agency of certain agency property for public street purposes pyrsuant to Health and Safety Code Sections: 33445 and 3342,1.1 Approve and Adopt%.:City Attorney ordinance,No'.'06-2u'.(- An' Ordinance amending the time limit of. the - ectiveneess of the. F edeveioprnent Plari for the Sobobe Springs Redevelopment Project, Area; pursuant to Health and Safety.Coode'Section 33333 6(dl /. Approve introduction Ordna06-2 and first reading. of; ince No. t and. by+furthermotion read by title only: An Ordinance of the. City Council of the City. of San Jacinto Amending the:Time Limit of the Effectiveness of the,Redevelopment -Plan for the Soboba Springs Redevelopment ProjectArea Pursuant to Health and afety Code Section ,33333.6(d) PUBLIC HEARING l4,1 Resolution No. ! A resolution confirming diagram (engineer's report) an levying assessments for`Lighting, Landscaping, end Parks District No. 1 (LLPD #1) for Fiscal Year 2006-2007 annual levy l Approve and Adopt %:, Finance Director resolution Nor / A resolution con mg diagram (engineer's; report) an levying assessments for. Assessment District 2003-1 (AD 2003-1) for Fiscal Year 2006-2007 annual levy / Approve and Adopt! Finance Director. Resolution No:: / A Resolution certifying the'. results of en election and . adding property commonly known as Tract 31294 into Community Facilities District No; 2003-1 for Police and Fire Services,(CFD 2003-1,`Annexation Ni 35 / Approve and Adopt I Special Tax Consultant and City Attorney ooncil:Agend :July:20,: 200 Paoe 4 of Resolution:No. `A. Resolution certifying the results of an election:an aiding property>commonly known as API�I 433 27g-g3 arnona 4:at4 :Properties. LLC ;intoCommunity Facilities; District No 2€303 1i~CFD 2,t :for Police;and Fire Services - Annexation.; No 36' /.Approve and: Adopt: Special. Tax Consultant and City Attorney' Resolution iPesolution icertifying the results Of an election an adding property commonly known as:T32499 Lennar Homes of Califarnsa Inc - into Community; Facilities District No 2003 1(CFD.2003 1 j for Police an Fire Services= Annexation No. 30:/:Approve:and" Adopt t: SSpecial Tax ': consultant anti' City :Attorney Landscaping, Lighting, :and Park District; Nc. 2 (LLPD No: 2 Annexation No'' 59 (,Ramona State..Piaza, LLP. ARl 1Nas. 433-291-040 and 433=291-ti41} i 'continuedfren July 6, 20061Special Tax, Consultant and'City Attorney a} Resolution No 1.A Resolution'initiatirig proceedings for the Anne atior of. property`into LLPD No 2 Annexation No :59;/ Approve and Adopt Resolution No,` / A Resolution approving the Engineer's Report for Annexation No. 59 into LLPD=No. 2 /:Approve`and Adopt Resolution;No a/ A Resolution declaring intention to anne c.propeity into_LLPD:-Nc 2=Annexation No.• 59 Z:Approve:;andlAdopt n�Public Hearing / At the conclusion of the public hearing:if the Ct determines;that a majority.protest does not exist. by rriotion approve certification _of the.election results for adding certain. property info LLPD No,:2:known as Annexation: No 59i/ Approve d anAdopt Resolution No. /A Resolution ordering annexationerritory into LLPD No.:2 and levying:assessments t the end of the scheduled City Department items, anyone wishing to discuss a consent oatenda; rn should come; forward upon invitation of the Mayor; state their name, address, and the consen alendar tem number pulled. Speakers should limit comments to three (3,i minutes; I Planning. Commission Vacancy I Appoint /.City Clerk Aetivity`and Enforcement Efforts Report I Receive an you Avenue developers request to:occupy homes:and ,use temporary se urt�p trucks prior to; completion of Lyon and Ramona: sewers / Approve / ngineer AYORI COUNCIL lEMBER. REPORTS 1 DISCUSSIONS. 1 Council' Members' Reports CLOSED SESSION `... 7.1 CONFERENCE WITH REAL PROPERTY NEGOTIATORS' Property; Assessor Parcel Nod (APN) 435-291-014. Agency negotiator' Barry McClellan, City Manager Negotiating parties: Paul Howard and Dolly Howard Under negotiation: Price and Terms 7:2 CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property APN 413-150-026-2 - Lake Park Well Agency Negotiator City Manager ,and City Attorney Negotiating Parties: Eastern Municipal Water District represen Under Negotiation: Price and Terms° �tlLRNMENT Council ,gerida: July;2d, 200fi. • Page•5 of5 Ve If you challenge any action of the City Council in court, you may tie. limited"to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council (do the City Clerk) at, or prior to, the public hearing. • CHALLENGE TO LAND USE DECISIONS: Any person seeking to challenge a decision regarding land use' made by the City Council as a result of a proceeding in which by law a hearing: is required to be •given; evidence is required to be taken,, and the discretion in the determination of facts is vested in the _City Council, shall "be required' to commence that ;action_ 90 days following the date on which the decision of the "City Counciil, becomes final as provided in Code of Civil Procedure Section 1094.6: Please refer to Code of Civil Procedure Section 1094.6 to determine how to calculate. when a decision becomes final.• • lt.is the intention of the City of San -Jacinto to comply with .the•Arziericans With Disabilities Act (ADA) in all respects: lf, as an attendee or a participant at this meeting, or ,in meetings on, a regular basis, you Will need:: •' • special assistance, beyond whet le normally provided, the City will attempt to accommodate you in every` reasonable manner. Please contact City Hall at (951) 537-6358; at least 48 hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible. iDorot(y L. Chouinard, C orepriircp'apenda'this of tl G'ity o f San , act nto, do heredy c of Su:ly, 2006, as required by tci v: ed to 5e posted or'thy L. Chouiriard, it Cl