HomeMy WebLinkAbout _ 4.1(a)--Authorize the City Manager to Sign a Tentative Subdivision Map Application for The PeaksC IT Y OF
REMDINO�"
AN CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: February 18, 2025
FROM: Barry Tippin, City Manager
ITEM NO. 4.1(a)
***APPROVED
BY***
btippin@cityofredding.org
ey An, �an
4 12P P ci�i I 2/10/2025
btippin@cityofredding.org
SUBJECT: 4.1(a) --Authorize the City Manager to Sign the Tentative Subdivision Map
A lication for The Peaks Subdivision
Recommendation
Authorize the City Manager to sign a City of Redding (City) Planning Application for a tentative
subdivision map for The Peaks Subdivision proposed on City -owned land, adjacent to Quartz
Hill Road.
Fiscal Impact
There is no fiscal impact with this action. Funding for the subdivision development and
infrastructure construction was received through the Federal Community Development Block
Grant — Disaster Relief Program (CDBG-DR).
Alternative Action
The City Council (Council) could decide not to approve the recommended action and provide
alternative direction to staff.
Background/Analysis
In August 2022, the City of Redding (City) was awarded $22,563,043 in CDBG-DR funding and
in October 2022, Council adopted a resolution authorizing the City Manager to execute the
CDBG-DR-INF Master Standard Agreement which was fully executed by the California
Department of Housing and Community Development in August 2023.
A Request for Proposals (RFP) was published October 2023 seeking a developer with the
requisite qualifications with the RFP being awarded December 2023.
Additional information regarding this project is available on the City of Redding's website, by
entering The Peaks Subdivision in the search bar.
Report to Redding City Council
February 10, 2025
Re: 4.1(a) --Authorize the City Manager to Sign a Tentative Subdivision Map Application for
The Peaks Page 2
It is recommended that Council move forward with staff's recommendation authorizing the City
Manager to execute the tentative subdivision map application for The Peaks Subdivision.
Environmental Review
This item is not a project as defined under the California Environmental Quality Act, and no
further action is required.
Council Priority/City Manager Goals
• Communication and Transparency — "Improve the quality of communication with the
public and City employees to enhance knowledge and increase transparency to improve
public trust."
Attachments
102822 Staff Report - Authorizing Execution of CDBG-DR Infrastructre Grant Agreement
121923 Staff Report Awarding RFP for Development of Single Family Housing at 850 Quartz
Hill Road
C IT Y OF
YWA%k
REMDINO�"
AN CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: October 18, 2022
FROM: Steve Bade, Assistant City
ITEM NO. 4.2(a)
Manager
***APPROVED
BY***
V,t e Zve ;1 ;S 4 er
ry ippin, Ci an e 16111,11,022
sbade*cityofredding.org
bfippin*cityof'redding.org
SUBJECT 4.2(a) --Adopt Resolution authorizing execution of CDBG-DR Infrastructure
Grant agreement.
Recommendation
Approve the following relative to the State of California's Housing and Community
Development (HCD) Community Development Block Grant (CDBG) Disaster Recovery (DR)
Infrastructure Program:
(1) Adopt Resolution authorizing the execution of a CDBG-DR Infrastructure Program
Master Standard Agreement (Agreement) to receive a funding allocation in an amount
not to exceed $22,563,043.51;
(2) Authorize the City Manager to execute the Agreement, any amendments and associated
documents to complete the due diligence process, and allocate funding;
(3) Find that a resolution authorizing execution of a grant agreement is not a Project and
therefore, not subject to an environmental review under the California Environmental
Quality Act Section 21065; and
(4) Find that a resolution authorizing execution of a grant agreement is considered an
Exempt Activity under 24 Code of Federal Regulations (CFR) 58.34 (a)(3)
Administration and Management Activities and not subject to the National
Environmental Policy Act review.
Fiscal Impact
The City will receive up to a maximum of $22,563,043.51 in CDBG-DR Infrastructure Program
funds. Up to 20 percent of the funding may be utilized for activity delivery costs incurred for
implementing and carrying out the CDBG-DR Infrastructure activities. Activity delivery costs
include staff costs directly related to carrying out the grant requirements, in addition to
engineering, design, architecture, and environmental services that are necessary for successful
completion of the project. There is no impact to the General Fund for this project.
Report to Redding City Council October 12, 2022
Re: 4.2(a) --Adopt Resolution authorizing execution of CDBG-DR Infrastructure Grant
agreement Page 2
Alternative Action
The City Council (Council) could choose not to authorize execution of the CDBG-DR
Infrastructure grant agreement. This choice would preclude development of the necessary
infrastructure for single-family income -eligible housing in the City of Redding (City) community
on City -owned property located at 850 Quartz Hill Road.
Background/Analysis
As a result of the wildfires that affected Northern California in 2018, the Federal Emergency
Management Agency (FEMA) announced a presidentially declared disaster, DR -4382, covering
Shasta and Lake Counties. Other counties that year were also declared under a separate disaster,
DR 4407, this declaration included Butte, Los Angeles, and Ventura counties. In recognition of
the unmet recovery needs, a federal allocation of CDBG funds was granted to the State of
California through 85-FR4681, under Public Laws 115-254 and 116-20 which cover DR -4382
and DR -4407. CDBG funds are administered by the U.S. Department of Housing and Urban
Development (HUD) and are intended primarily to assist housing recovery and to benefit low -
and moderate -income households impacted by the fires.
HCD is the lead and responsible agency for administering the CDBG-DR funds. HCD undertook
an extensive needs assessment to determine the specific priorities of the affected counties. The
majority of funds are allocated to housing, infrastructure, and economic revitalization. On May
13, 2021, the City signed the CDBG-DR Multifamily Program master standard agreement in the
amount of $1.6,660,145.58. The Housing Division is on track and will expend all funds by the
December 2022 deadline that will result in the production of approximately 300 income -eligible
rental units within the City limits.
For the next tranche of funding, the CDBG-DR Infrastructure program funds, in the amount of
$22,563,043.51, will assist with the unmet infrastructure needs in the Redding community. The
grant funding will be used to develop infrastructure that supports an income -qualifying housing
development on City -owned property located at 850 Quartz Hill Road. This 112 -acre
undeveloped parcel is located within the Carr Fire burn scar area. Staff anticipates utilizing the
funds to develop the infrastructure that supports a single-family development wherein 51 percent
of the resulting buildable lots are eligible to families whose household incomes are below 80
percent of area median income (AMI). To provide context, the AMI for a family of four in
Shasta County is $64,500. When the infrastructure project is completed, it is estimated that the
development would result in 128 lots.
To receive the CDBG-DR Infrastructure funding allocation, staff must submit due diligence
documents to HCD. Due diligence items may include written policies regarding environmental
review, Davis -Bacon labor compliance, procurement and timekeeping. The City must also
execute the attached resolution, providing the City Manager signature authority and authorization
to deliver all project applications and information, notices to proceed, and fund requests in
connection with this grant.
Once HCD receives the authorizing resolution, an agreement will be prepared and forwarded to
the City Manager's office for signature. Once the agreement is executed, staff will produce a
project plan, provide HCD any necessary documentation and return to the City Council with the
proposed infrastructure project for further review and approval.
Report to Redding City Council October 12, 2022
Re: 4.2(a) --Adopt Resolution authorizing execution of CDBG-DR Infrastructure Grant
agreement Page 3
Environmental Review
A resolution authorizing execution of a grant agreement is not a project as defined under
California Environmental Quality Act; therefore, no further action is required at this time.
Council Priority/City Manager Goals
Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
Economic Development- "Facilitate and become a catalyst for economic development in
Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community."
Attachments
^Resolution
C IT Y OF
REMDINO�"
AN CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: December 19, 2023
FROM: Steve Bade, Assistant City
ITEM NO. 9.2(f)
Manager
***APPROVED
BY***
n
tee e I S, er IV14/2023
r> ,pp n,, C -i ars e
shade@cityofredding.org
btippin@cityofredding.org
SUBJECT: 9.2(f) --Award Request for Proposals, Schedule No. 5419, for the Development of
Infrastructure that Supports a Single -Family Housing Development at 850 Quartz Hill Road
Recommendation
Award Request for Proposals - Schedule No. 5419 for the development of infrastructure to create
a single-family subdivision located at 850 Quartz Hill Road (Assessor's Parcel Number 115-170-
001) to K2 Development Companies and approve the following:
(1) Authorize the City Manager, or designee, to negotiate a Development Funding
Agreement with K2 Development Companies that includes Community Development
Block Grant Disaster Recovery Infrastructure funds for predevelopment costs; and
Authorize the Mayor to execute the Development Funding Agreement;
(2) Adopt Resolution approving and adopting the 24th Amendment to the City Budget No.
2023-060 appropriating $22,563,040 for the Quartz Hill Infrastructure project;
(3) Find that entering into a Development Funding Agreement for predevelopment costs is
not considered a project under the California Environmental Quality Act and a separate
review will be completed for the resulting project; and
(4) Find that entering into a Development Funding Agreement for predevelopment costs is
considered exempt under the National Environmental Policy Act under Title 24 CFR
58.34(a)(1), and a separate review will be completed for the resulting project.
Fiscal Impact
The City of Redding (City) has executed a Master Standard Agreement with the California
Department of Housing and Community Development (HCD) for $22,563,043.51 in Community
Development Block Grant Disaster Recovery (CDBG-DR) Infrastructure Program (CDBG-DR-
INF) funds for the Quartz Hill Infrastructure Project (Project).
Up to 15 percent of the funding or $3,384,457 may be utilized for activity delivery costs incurred
by City staff carrying out the CDBG-DR-INF activities. Costs for predevelopment activities such
as project engineering, design and environmental reviews are eligible project costs. Staff
estimates that predevelopment costs should not exceed $2,500,000 for the project. There is no
impact to the General Fund for this project.
Report to Redding City Council December 14, 2023
Re: 9.2(f) --Award Request for Proposals Schedule 5419 Page 2
Alternative Action
The City Council (Council) may choose not to award the Request for Proposals and provide staff
with alternate direction.
Background/Analysis
On August 4, 2018, the Federal Emergency Management Agency (FEMA) published DR -4382,
the Presidential Declaration of a major disaster for the State of California (State) in response to
the devastating wildfires that damaged Shasta and Lake Counties. During that same year, a
separate disaster, DR -4407, was published for Butte, Los Angeles and Ventura Counties. As part
of the ongoing effort to assist the State with recovery from these disasters, the federal
government, through the U.S. Department of Housing and Urban Development (HUD) awarded
CDBG-DR funds to the State. These funds are administered through HCD to assist grant
recipients covered by DR -4382 and DR -4407.
In November 2018, HCD allocated $317,428,266 of the federally allocated CDBG-DR funds to
its CDBG-DR-INF Program. The purpose of the program is to fund projects that assist with the
unmet infrastructure needs of communities affected by the disasters. On August 17, 2021,
Council authorized the City's Housing Division (Housing) to submit a Notice of Intent to apply
to HCD for CDBG-DR-INF funds for the development of infrastructure that would support a
single-family, housing development on City -owned property located at 850 Quartz Hill Road
(Property) — a 112 -acre parcel that was directly affected by the Carr Fire and is considered a burn
scar area.
On August 9, 2022, the City was notified of its CDBG-DR-INF allocation of $22,563,043.51.
Subsequently, on October 18, 2022, Council adopted a resolution authorizing the City Manager
to execute the CDBG-DR-INF Master Standard Agreement (MSA) - the MSA was fully
executed by HCD on August 17, 2023.
On October 12, 2023, the Housing Division published a Request for Proposals (RFP) - Schedule
No. 5419 seeking a developer with the capacity, creativity and commitment to transform the
property into a single-family subdivision under an accelerated timeline. Pursuant to the RFP, the
developer would provide their development expertise to ensure that street alignments, storm
drainage, sewer and water facilities, location and size of easements and rights-of-way, trees,
traffic access, grading, and numerous other features conform to City standards and regulations.
The RFPs Scope of Services included: preliminary (30%, 60%, and 90% plans) and final design
plan services, permitting and environmental compliance, right-of-way acquisition, preparation of
bid procurement and contract documents, as well as project management services during the
planned development, subdivision infrastructure development and construction periods for the
Project. The end product of the Project will be shovel -ready lots complete with City -
infrastructure and a final subdivision map that includes as -built, civil engineering plans
completed and approved by the City.
The resulting subdivision is anticipated to include a minimum of 120 single-family parcels. Once
the Project is completed, 51 percent of the finished lots will contain covenants restricting the
future homes for sale to income -qualifying, workforce buyers earning at or below 80 percent of
Report to Redding City Council December 14, 2023
Re: 9.2(f) --Award Request for Proposals Schedule 5419 Page 3
the Area Median Income (AMI). It is expected that the remaining lots may be developed and
sold at market value.
Each proposal was to include a creative plan and budget for the design, project management,
construction, and marketing and sale of the single-family residential structures.
The RFP was sent to 30 firms, advertised in the Record Searchlight and posted on the City's
Purchasing Division website. By the close of the RFP on November 22, 2023, the City received
three proposals from qualified Developers; Jaxon Enterprises, K2 Development Companies and
Ridgeline Builders. On December 6, 2023, City staff members from the City Manager's Office,
Housing, and the Planning Division formed a review and selection panel. The panel members
evaluated and scored each proposal based on each developer's project approach, understanding
of the Project, the ability to complete the Project on time and within budget, experience, financial
viability, plan for the subdivision build out and any other unique additions that provides
additional benefits to the community. The panel ranked K2 Development Companies' "The
Peaks" proposal with the highest score based on the RFP criteria.
K2 Development Companies proposal was found superior in several areas including subdivision
design quality inclusive of the individual housing units, approach to the accelerated timeline
(especially environmental), dedication to housing completion through additional grant receipt,
thoroughness of approach, concern with the site and adjacent neighborhoods, and overall
expertise of team members.
In order to meet the grant funding deadlines, staff recommends entering into a development
funding agreement with K2 Development Companies for predevelopment activities associated
with the Project. Predevelopment costs include but are not limited to environmental studies,
surveying, engineering and civil design, Development Services entitlement and mapping
costs/fees, and bid procurement. Once the predevelopment and environmental review processes
are completed, it is anticipated that staff will present a second development funding agreement
for the construction of the infrastructure to Council for consideration, approval and award.
If the City is satisfied with the timeliness and the Developer's performance and completion of
the infrastructure, the City may negotiate a disposition and development agreement with the
selected Developer to acquire the parcels and construct and sell the homes to income -qualifying
and market -rate homebuyers.
Environmental Review
Entering into a DFA for predevelopment costs is not considered a project under the California
Environmental Quality Act (CEQA). The construction project itself will be reviewed for CEQA
requirements once the details are known.
Under the National Environmental Policy Act (NEPA), administrative and management
activities such as entering into agreements for predevelopment costs are considered exempt
activities and no further action is required. The construction project itself will be reviewed for
NEPA compliance once the project details are known.
Council Priority/City Manager Goals
Report to Redding City Council December 14, 2023
Re: 9.2(f) --Award Request for Proposals Schedule 5419 Page 4
• Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
• Economic Development — "Facilitate and become a catalyst for economic development
in Redding to create jobs, retain current businesses and attract new ones, and encourage
investment in the community."
Attachments
"Resolution No 24
Ridgeline Builders Proposal - Copper Heights
Jaxon Enterprises Proposal - RRA Subdivision
K2 Proposal - The Peaks
5419 - Development of Infrastructure that Supports a Single -Family Housing Development