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HomeMy WebLinkAboutAttachment No. 1 Staff ReportAttachment No. 1 Background Report and Explanation The Westside Infill Transit Oriented Development (WI-TOD), also known as the Paradise Creek Affordable Housing Project, is a proposed 201-unit affordable housing development on the east side of Paradise Creek, and the expansion of Paradise Creek Educational Park on the west side of the creek. The proposed project is based on a concept that was developed through a neighborhood and stakeholder design participation process and incorporated into the Westside Specific Plan, which was adopted in 2010. The current proposed project design was developed with continuing public input and participation through stakeholder and community meetings. Development Agreement. After adoption of the Westside Specific Plan, a request for proposals was issued, and the applicant was selected to develop the site. The applicant entered into a Disposition and Development Agreement with the Community Development Commission to develop the project. The agreement is an enforceable obligation of the Successor Agency to the Community Development Commission (SA). The entire site is owned by the City; however, the housing portion of the site will be transferred to the Housing Authority. Pursuant to the Disposition and Development Agreement, the developer will be required to enter into a long-term ground lease for the housing site and will manage and operate the housing development, including resident services and programs. The Community Development Commission -Housing Authority will retain ownership of the housing site. Housing Development. The housing development side of the project would consist of two phases on the east side of Paradise Creek. The first phase would be built on approximately four acres on the southern portion of the site and would include 109 units within two buildings and a separate residential services building. The second phase would be built on approximately two acres on the northern portion of the site and would include 92 units within two buildings. The anticipated unit mix would include studios, one - bedroom, two -bedroom, and three -bedroom units on three to four levels within the four residential buildings. The residential buildings would generally be oriented along 22nd Street and Hoover Avenue and set back from Paradise Creek with open space along the creek boundary. Park Development. The park development side of the project would add nearly four acres to Paradise Creek Educational Park on the west side of the creek. Paradise Creek Housing Partners is required to construct the park improvements pursuant to the Disposition and Development Agreement. The proposed improvements would include a naturalized planting buffer along Paradise Creek, a lawn area, a community garden, a playground, a plaza, picnic tables, a pedestrian/bicycle path along the length of the creek, and tree and shrub plantings along the western edge of the park. Park ownership would be maintained by the City. Certificate of Compliance. Consistent with the Parcel Map Waiver approved by the National City Planning Commission on May 20, 2013 for the WITOD Project, the City of National City can file a Certificate of Compliance that creates new legal parcels for the Attachment No. 1 development. The entire project site consisted of nine parcels and portions of adjacent rights -of -way; the Certificate of Compliance divides seven of the parcels into four parcels to allow the development of the housing on the east side of Paradise Creek and the park on the west side of the creek. The parcel map consists of 10.27 acres. Parcel 1 is 4.14 acres and would be developed with 109 units and the residential services building as Phase I of the housing project. Parcel 2 is 2.16 acres and would be developed with 92 units in Phase II. Parcel 3 is 1.33 acres and would be developed with park improvements. Proposed Parcel 4 is 2.60 acres and would delineate Paradise Creek and Paradise Creek Educational Park. The Certificate of Compliance creates developable parcels that are configured based on the proposed phasing of the WITOD project and to allow the leasing of the parcels pursuant to the Disposition and Development Agreement. Reallocation of HOME Funds. The City of National City is a Project Jurisdiction that receives an annual entitlement grant allocation of HOME Investment Partnership (HOME) Program funds from the U.S. Department of Housing and Urban Development for the preservation and development of affordable housing in National City. The City allocated $95,492 of HOME funds in Fiscal Year 2011 and $2,000,000 in Fiscal Year 2013 to Community HousingWorks on behalf of Paradise Creek Housing Partners, L.P. to fund predevelopment activities related to the development of 109 affordable housing units included in Phase I of the Westside In -fill Transit Oriented Development Project. Community HousingWorks has consented to the reallocation of said HOME funds to the Community Development Commission -Housing Authority ("CDC -HA") for the purpose of acquiring the 4.14 acre parcel (Parcel 1) of land designated for 109 newly constructed affordable rental units at the corner of 22nd and Hoover Avenue. The CDC -HA has submitted an application to the City of National City for the reallocation of a total of $2,095,492 in HOME funds for the acquisition of land and development activities eligible under the HOME program. Acquisition of Parcels 1 and 2 by the CDC- Housing Authority. The City is the current owner of Parcel 1 and 2 totaling 6.3 acres, generally bounded by 19th Street, Harding Avenue, 22nd Street, and Hoover Avenue at WITOD development site. The Successor Agency to the Community Development Commission as the National City Redevelopment Agency (SA) is subject to the enforceable obligation commonly referred to as the Westside Infill Transit Oriented Development Development and Disposition Agreement (DDA), entered into June 21, 2011 with Paradise Creek Housing Partners, LP (Developer). The sale of Parcel 1 and 2 to the CDC -HA is being undertaken so that the SA can fulfill its enforceable obligations pursuant to the requirements of the WITOD DDA. The CDC -HA has accepted the affordable housing functions of the former redevelopment agency. Appraisals completed within the last 60 days indicated a value of $3.815 million for Parcel I and $3.22 million for Parcel 2 for a total value of the Property of $7.035 million. The CDC -HA intends to use $2,094,000 in HOME funds to acquire Parcel I and the CDC -HA has also requested a loan in the amount of $4,941,000 from the City in order to provide full consideration for the market value of Parcel 1 and 2. Attachment No. 1 Leaseback of Public Works Yard to the City. Parcel 1 and Parcel 2 will continue to be occupied by the National City Public Works Department, and the CDC -HA will provide a month -to -month lease agreement for $1.00 per month until the operation is relocated to allow for environmental remediation and the development of affordable housing on the site. Relocation of Public Works Yard and the Purchase of 1726 Wilson Avenue. As part of the WI-TOD DDA, National City Public Works ("PW") operations at 2100 Hoover Avenue will need to relocate to other sites in order for the Successor Agency to complete environmental remediation and develop 201 affordable housing units on Parcel 1 and Parcel 2. The City's relocation plans for PW have accommodated for a substantial part of PW operations within existing City facilities. The City still needs to secure a facility that can house the following PW functions: streets/sewer, vehicle maintenance and storage, and office space. The City reviewed options for relocation but alternatives that have been considered are not readily available or do not fully satisfy PW's operational requirements and do not fall within the timeline for implementing the WI-TOD development. The City entered into a letter of intent to purchase a 1.17 acre site which fits the needs of PW and provides 6430 sq. ft. of useable building area including office space and a repair shop with two large entry bays. The property is commonly known as 1726 Wilson Avenue in National City. The owners of the 1726 Wilson Avenue site are willing to sell their property have accepted an offer by the City to purchase the property at a negotiated price of $1,650,000.