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HomeMy WebLinkAboutMinutes - City Council - 2005-06-20 - Special Meeting 142 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California June 20,20055:15 p.m. The meeting was called to order by Mayor Mathena with the following Council Members present: Dickerson, Murray, Pohlmeyer, and Stegall. Also present were City Manager Warren, Assistant City Manager Starman, City Attorney Duvernay, Deputy City Manager Bachman, and City Clerk Strohmayer. I JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY At the hour of 5:15 p.m., Mayor Mathena convened the Joint Meeting with the Redding Redevelopment Agency (Agency). JOINT PUBLIC HEARING - Sale of Redding Redevelopment Agency property located at 701-715 Parkview Avenue; and RESOLUTION - Approving the disposition of the property, accepting the 33433 Summary Report, and making the necessary findings (C-070-200 & R-030-100-033) The hour of 5: 15 p.m. having arrived, Agency Chair Murray and Mayor Mathena opened the public hearing regarding the disposition of Agency-owned property at 701-715 Parkview A venue to Resources for Rural Community Development and the associated Disposition and Development Agreement. The following document is on file in the Office of the City Clerk: Affidavit of Publication - Notice of Public Hearing City Clerk Strohmayer advised that no comments had been received to date. I Assistant City Manager Starman provided an overview of the Report to City Council and Redding Redevelopment Agency dated June 9, 2005, incorporated herein by reference, concerning the Disposition and Development Agreement (DDA) with Resources for Rural Community Development (RRCD) for Agency-owned property located at 701-715 Parkview Avenue. Mr. Starman summarized that on June 21, 2004, the Board conceptually agreed to sell the property to Resources for Rural Community Development for the development of a 1,288- square-foot office which RRCD intends to occupy as its primary place of business; two 864- square- foot, two-bedroom units to be occupied by disabled individuals; and one 900-square- foot caretaker's unit. The estimated cost ofthe project is $687,700, of which approximately $218,100 is ascribed to the office portion of the project and $469,600 to the residential portion. Mr. Starman stated that under the proposed DDA, RRCD would purchase the property from the Agency for the fair market value of$60,000, invest a minimum of$30,000 in developer equity toward the project, and obtain conventional financing in an amount up to $247,500 from Tri-Counties Bank. The City would provide a HOME Rental Project loan in an amount up to $418,175 secured by a residual receipt note at one percent interest, all due and payable in 30 years. The City's loan would assist with the development costs of the residential units I only. The residential units would remain affordable to low-income tenants for a period of 55 years. The full cost of the office portion of the project would be the responsibility of RRCD. Mr. Starman explained that Section 334310fthe California Health and Safety Code requires the Agency to hold a public hearing for the sale of property without public bidding. Section 33433 of the same Code requires that before property acquired in whole or in part, directly or indirectly, with tax increment monies is sold or leased for development pursuant to the redevelopment plan, the sale or lease must first be approved by the legislative body by resolution after a public hearing. Therefore, following the public hearing it is recommended that the following actions be taken: 6/20/2005 143 The City Council adopt the necessary resolution approving the DDA between the Agency, the City, and RRCD and finding that the sale will provide housing for low- or moderate-income persons and is consistent with the Market Street Implementation Plan and that consideration is not less than the fair market value in accordance with the highest and best use under the Redevelopment Plan. The Board approve the DDA and authorize the Chairman to execute all documents necessary to transfer title of the property to RRCD. Chair Murray and Mayor Mathena noted that there was no one present wishing to speak on the matter and closed the public hearing. I Chair/Council Member Murray expressed concern relative to spending over $100,000 to finance an 864-square- foot unit. He noted that the Southern California Presbyterian Homes' project was assisting an equally underserved segment of the community's population at a fraction of the cost to the City/Agency. He opined that more units could be constructed by leveraging the City's/Agency's funds in other areas of the community. He stated that he intended to vote against this project, as well as future projects, which required such a large price per square footage contribution by the City/Agency. Mr. Starman replied that in this particular case, it is not practical for RRCD to find private financing. He explained that it was not feasible to build three units with the projected income stream given that the rents are structured to be lower than normal, with some being below market rent. He stressed that this type of project is an ideal project to use HOME funds to build as it benefits both the disabled and low-income individuals. I MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer, that Resolution No. 2005-76 be adopted, a resolution of the City Council ofthe City of Redding approving the Disposition and Development Agreement by and between the ,Redding Redevelopment Agency, the City of Redding, and Resources for Rural Community Development and 'finding that: (1) the sale of the property located at 701-715 Parkview Avenue will provide housing for low- and moderate-income persons and is consistent with the Market Street Implementation Plan adopted pursuant to Section 33490 ofthe California Health and Safety Code; and (2) that consideration is not less than the fair market value in accordance with the highest and best use under the Redevelopment Plan. The Vote: AYES: NOES: ABSTAIN: ABSENT: CouncIl Members - Dickerson, Mathena, Pohlmeyer and Stegall Council Members - Murray Council Members - None Council Members - None Resolution No. 2005-76 is on file in the office of the City Clerk. I "W A YFINDING" COMMITTEE'S RECOMMENDATION REGARDING DOWNTOWN SIGNAGE PROGRAM (T -080-720/R-030-145-350/B-080-600) Assistant City Manager Starman provided an overview of the Report to the City Council and Redding Redevelopment Agency dated June 9, 2005, regarding the "Wayfinding" Committee's recommendation regarding the Downtown Signage Program. He recalled that at its meeting on October 19, 2004, the Redding Redevelopment Agency (Agency) authorized the creation of an ad hoc committee to work with staff to develop a comprehensive ''wayfinding'' or public signage program for Downtown and the key corridors leading into Downtown. The Committee was tasked with accomplishing the following: (1) identifying the tasks that must be accomplished in order to develop a comprehensive "wayfinding" system; (2) determine if a consultant is needed to work on this issue; (3) help the Agency select a consultant to work on this project, if necessary; and (4) help to develop a "wayfinding" system and a reasonable implementation plan. Mr. Starman stated that the Committee determined early in the process that it would not be necessary to hire a consultant to design the signs and determine their locations since City staff demonstrated the expertise to design and fabricate the signs and to determine the best placement of the signs. After several meetings and testing of sample signs in the field, the Committee is recommending two separate vehicular directional signs for use in Downtown and the corridors leading into and out of Downtown: 6/20/2005 144 Downtown Central Business Sign: The sign is proposed within the heart of Downtown. It is the first sign encountered after passing through a "gateway" into the central business district. As proposed, this sign is white on burgundy and the identifier icon is a silhouette of Ol.d City Hall. Downtown Entry Sign: This sign is proposed to be installed along the corridors leading into and out of Downtown, as well as the streets around the Downtown Central Business District. As proposed, this sign is white on teal with a blue river. The identifier icon is a combination of mountains in the background, the Sacramento River, and the Sundial Bridge in the foreground. Mr. Starman explained that the Committee originally expected to submit a complete I "wayfinding" system for the Agency and City Council's review. However, the Committee believes it is important to move forward with the fabrication and installation of the vehicular signage component of the "wayfinding" system at this time to better serve the public during the current tourist season. Since the "wayfinding" sign elements can stand on their own, staff ~ concured with the Committee. In the meantime, staff and the Committee are moving forward with the design of the pedestrian map kiosk/signs and gateway elements. Mr. Starman expressed appreciation to Larry Morgon and Dave Sciarra for their hard work ' on this project. Due to the Committee's and staffs efforts, the fabrication and installation of the signs are proposed to be done by staff for less than $25,000. It was the recommendation of staff that the Board and the City Council accept the recommendations of the "Wayfinding" Committee regarding the design, fabrication, and placement ofthe vehicular directional signs in Downtown and the Downtown entry corridors. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Murray, to accept the recommendations of the "Wayfinding" Committee regarding the design, fabrication, and placement of vehicular directional signs in Downtown and the Downtown entry corridors as set forth in the Report to City Council and Redding Redevelopment Agency dated June 9, 2005. The Vote: Unanimous Ayes I AMENDMENT TO THE DEVELOPMENT FUNDING AGREEMENT - Southern California Presbyterian Homes . . (G-100-075-101 & R-030-100-055) Assistant City Manager Starman highlighted the Report to City Council dated June 10,2005, regarding the request from Southern California Presbyterian Homes (SCPH) for additional funding in the amount of $250,000 for the Mountain Vistas II Affordabl~ Housing Project for seniors. Mr. Starman recalled that on March 15, 2005, the City Council approved a Development Funding Agreement with Redding Mountain Vistas II providing $200,000 to assist with the construction of a 40-unit affordable housing project for very-Iow-income seniors. Since that time, a firm construction bid has been rec.eived for the project from Robert S. Bryant Construction, Inc. Based on this bid, the project budget is now facing a shortfall of approximately $800,000. Mr. Starman noted that the cost increase for this project is not considered by staff to be unusual or o.ut ofline with increased construction costs experienced on other recent projects. He noted the cost increase is primarily a factor of increased material cost, as well as some increase in labor costs. SCPH has requested the U.S. Department of Housing and Urban Development (HUD) to provide an additional allocation to the project, however, due to maximum funding limits, HUD will be unable to fund approximately $250,000 of the anticipated shortfall. The City's HOME Program, the source ofthe original I $200,000 City loan, is also unable to provide additional funding due to other existing commitments. Mr. Starman stated that the SHASTEC Redevelopment Project Area has accrued approximately $997,600 of tax-increment revenue, including interest, in its Low- and Moderate-Income Housing Set-Aside Fund. As of May 31,2005, $550,845 is available for use by the Redding R~development Agency in support of its affordable housing efforts. Any new affordable units created through the use of these funds would be credited toward assisting the SHASTEC Project meet its affordable housing production goals. It is the recommendation of staff that the Board provide $250,000 from the SHASTEC Redevelopment Project Area Low- and Moderate-Income Housing Set-Aside Fund to the 612012005 145 City of Redding. It is also recommended that the City Council approve the First Amendment to the Development Funding Agreement with Southern California Presbyterian Homes/Redding Mountain Vistas II and increase its residual receipts loan from $200,000 to $450,000 to pay for costs associated with the development of Mountain Vistas II, an affordable housing project intended to assist the very-low-income elderly population. I . Chair/Council Member Murray stated that he received calls from employees at Kirkwood and questioned where these employees would park once this development was completed. Ben Beckler, Vice President of Southern California Presbyterian Homes, replied that there would be 20 additional parking spaces at the new development. Although he did not anticipate a problem, he related that if additional parking was needed, it would be handled administratively, possibly through car pooling. He added that transportation is provided for the facility's residents and they are encouraged to divest themselves of their vehicles when moving into the facility. MOTION: Made by Council Member Stegall, seconded by Council Member Murray, to approve the First Amendment to the Development Funding Agreement with Southern California Presbyterian Homes/Redding Mountain Vistas II and increase its residual receipts loan from $200,000 to $450,000 to pay for costs associated with the development of Mountain Vistas II, an affordable housing project intended to assist the very-low-income elderly population. The Vote: Unanimous Ayes There being no further business, at the hour of 6:47 p.m., Mayor Mathena declared the meeting adjourned. APPROVED I ATTEST: ~~~, ~(1 City Clerk I 6/20/2005