HomeMy WebLinkAbout2001-05-07 City Council (5)City of Palo Alto
City.Manager’s Report
TO:HONORABLE CITY COUNCIL
FROM:CITY MANAGER DEPARTMENT: PLANNING AND
COMMUNITY ENVIRONMENT
DATE:MAY 7, 2001 CMR:232:01
SUBJECT: STATUS REPORT ON THE PROPOSED OPPORTUNITY CENTER
AT 33 AND 39 ENCINA WAY
This is an informational item only and no City Council action is required. This
memorandum is intendedto update the City Council on the status of the proposal for a
Planned Community (PC) Zone at the above address to accommodate an Opportunity
Center. The Planned Community Zone application is independent from any funding
requests that_the proponents of the Opportunity Center.may have applied .for with the City
of Palo Alto.
The area proposed for the Center consists of two parcels with a total size of 12,200
square feet. Both sites are currently zoned Commercial Service (CS), which has a
maximum floor area ratio of 1:1. The CS zone does not allow the number of units or
gross square footage.that the Opportunity Center is currently proposing. A PC zone is
required to allow the 55 housing units plus square footage for the assorted public services
proposed on the first and second floors.
The attached Status Report (see attachment A) on the Opportunity Center summarizes the
proposed services to be offered at the Center,-the general square footages of each use,
parking requirements and other site improvements. The Status Report does not constitute
complete documentation of the project. It is for informational purposes only.
The proponents of the project are currently preparing a complete Planned Community
Zone application. Processing the PC application is estimated to take about 12 to 14
months. If City Council members have questions or concerns about the application or the
CMR:232:01 Page 1 of 2
review process, please feel free to call Ed Gawf, Director of Planning and Community
Environment, at (650) 329-2354 or Lisa Grote, Chief Planning Official, at (650) 329-
2321.
ATTACHMENT
Status Report On the Development of the Opportunity Center of the Midpeninsula
PREPARED BY:
LISA GROTE
Chief Planning Official
DEPARTMENTHEAD REVIEW:
Director of Planning and Co yEnvironment
CITY MANAGER APPROVAL:
EMILY"~ARRISON
Assistant city Manager
CMR:232:01 Page 2 of 2
Status Report
On the Development of the
Opportunity Center
of the Midpeninsula
Provided by
The Community Working Group, Inc.
Don Barr, President
Revised
February 12, 2001
OPPORTUNITY CENTER OF THE MIDPENINSULA
PROJECT SUMMARY
The Opportunity Center of the Midpeninsula will address both the need for affordable housing
for the homeless and those at risk of becoming homeless, including women and children, and the
need for a coordinated continuum of services for the homeless and at-risk populations. The
proposed 55 housing units will include 12 transitional units for small families, 22 transitional units
for singles, and 21 permanent units for singles. The two services centers in the building will
house multiple services, ranging from hospitality to rehabilitation,, provided by experienced social
service agencies under the overall management and coordination of InnVision.
The clients to be served by this project are the 150+ persons in the midpeninsula area who are
homeless, 30+ homeless women with childrenl and the hundreds of low income individuals and
families who are currently housed but at risk of becoming homeless. Rents for the housing units
will be kept low so that those with incomes under 30% of median income will qualify for the
housing.
In order to plan for the construction and operation of the Opportunity Center, the Community
Working Group has established formal working relationships with a number of organizations and
agencies in the area.
Developer: The Housing Authority of the County of Santa Clara, in conjunction with the Palo
Alto Housing Corporation have been selected by the CWG to provide development consulting
services for the project. The Housing Authority of the County of Santa Clara has extensive
experience in the development, ownership and management of affordable housing, including the
development of shelters and transitional housing for homeless individuals and families. The
Housing Authority has developed over 2,200 units located throughout Santa Clara County and
currently manages over 2,400 units which includes units owned by the Housing Authority,.
affiliated partners and private owners. The Palo Alto Housing Corporation also has extensive
experience developing affordable housing in Palo Alto. The Housing Corporation has developed
and owns and manages 500 units of affordable housing. -
Development Consultant: In addition to the Housing Authority and the Palo Alto Housing
Corporation, the Corporation for Supportive Housing has recently agreed to provide technical
assistance. The Corporation for Supportive Housing’s goal is to support the expansion of housing
opportunities linked to comprehensive services for persons withchronic challenges so that they are
able to live with stability, autonomy and dignity and reach their full potential. As a national
nonprofit intermediary, the Corporation for Supportive Housing was established in 1991 and since
that time has assisted more than 50 projects in California in the development of over 2000 units of
housing.
Services Management Agency: InnVision has been selected as the Services Management
Agency for the Opportunity Center. The role of the Services Management Agency is primarily to
coordinate the services for the individuals and families that will be served by the Opportunity
Center and the associated housing. InnVision has extensive experience not only in providing a full
array of comprehensive services for homeless individuals and families but also developing,
owning and managing shelters and transitional housing.
Architect: The Architect selected for the Opportunity Center is Rob Wellington Quigley, FAIA.
Rob Wellington Quigley has extensive experience with the design of similar mixed use
developments which included affordable housing. In addition, Quigley has experience with the
entitlement process in Palo Alto, since they served as architects for the very successful SRO
development owned by the Palo Alto Housing Corporation, Alma Place.
Summa~y of Opportunity Center Facilities
Parking-
Ist level down 14 spaces
2"d level down i6 spaces
22,000 s.f.
First Hoor
Second Hoor
Third Floor
Fourth Floor
Opportunity Center
Family Service Center
SRO housing
Family housing
SRO’housing
Family housing
SRO housing
Family housing
15 units
2 units
15 units
5 units
13 units
5 units
6,600 s.f.
7,400 s.f.
7,600 s.f.
6,900 s.f.
Total Housing Units
SRO
Family housing
Total
43 units
12 units
55 units
Total Parking Spaces 30
Total Square footage
Garage Type I
Residential Type V
Estimated FAR
28,500/12,100 = 2.34
(approximately 1.68 housing and 0.66 non-housing)
OPPORTUNITY CENTER OF TI-IE MIDPENINSULA
PROJECT DESCRIPTION
First floo1"
[
L
i iI . ..FIRS__T FLOOR ,-,zo.
In the first floor services center there will be both hospitality services and rehabilitative services.
The hospitality services, available to all and providing a welcoming experience, will include drop-
in services, showers and laundry facilities, lockers, light snacks, information and referral,
transportation assistance, a clothes closet, inter-faith chaplaincy, and fellowship. Rehabilitative
services will be available to those who seek to transform their lives and ~o move out of
homelessness or prevent it from occurring. These services will include coordinated case
management, mental health and substance abuse counseling, job training and counseling, medical
screening, legal assistance, money management training, support ~oups. and sen-ices for women
and children. The center will have an open reception area, a small kitchen and eating space, a
classroom/computer lab, staff offices, consultation rooms, showers for men -and women, laundry.
a c!othes closet, a reception area for women and children, and an outdoor patio -.area.
.... Second Floor
i
15 SRO ROOM
2 FAMILY SUITES
17 TOTAL
AREA7,400 SF
The second floor services center will provide services for women and children. Currently, these
services are being housed at the Veterans Affairs hospital site in Menlo Park on an interim basis
until the Opportunity Center is completed. At that time, the services will be transferred to the
Opportunity Center. Services being planned at this time include light meals, a food closet, clothes
closet; hy.giene supplies, information and referral, vouchers for motels and transportation, health
care services, intensive case management, child care/respite care, and housing search coordination.
Additional services will be added as funding for them is available. The services for women and
children are being coordinated by Clara Marco Alliance. The second floor services center will
occupy approximately 1500 square feet. The services center will also serve as a community room
during evenings and weekends for residents of the family housing units. The second floor will
also include 2 transitional housing units for small families, as well as 15 SRO units separated from
the family area by solid walls and security doors.
Housing on the Third and Fourth Floors
THIRD FLOOR ,’:zo
15 SRO ROOM
5 FAMILY SUITES
20TOTAL
AREA7,600 SF
[I[V
l _4 ...._FO__U..R.TH E_LOOR !.
13 SRO ROOM
5 FAMILY SUITES
18TOTAL
AREA6,900 SF
Them third and fourth floors will provide a total of 10 transitional units for small families and 28
SRO units for singles, plus an outdoor children’s play area. Approximately half of the SRO units
in the Opportunity Center will be for transitional housing and half for permanent housing. The
occupants of the transitional units will be recipients of the supportive services provided in the
services centers with intensive case management and a written plan for addressingtheir individual
issues, stabilizing their lives, and securing permanent housing. Occupants of the permanent.unit~:
will initially come from the homeless or at-risk clientele of the services centers, but their continued
residency in the housing units will be govemed by income guidelines rather than a service plan. ~
is anticipated that all of the residents in the housing units will have incomes at or below 30% of
median income (very low income).
Development Concept for the Opportunity Center
Site. The site is located at 33 and 39 Encina Way, Palo Alto. The two adjacent parcels total
12,190 square feet (100 feet Encina Way frontage and 121.9 feet deep). On either side of the site
are commercial outlets -- a shoe store and a crafts business. Immediately to the rear of the site is
the Palo Alto Medical Foundation. Across Encina Way from the site is a car wash and the Town
and Country Village Shopping Center. It is located near public transit and downtown shopping
and services.
Building. It is anticipated that a Planned Community (PC) zone will be neces,,s,ary to pern~,’t the
density required for the housing units. Two levels of underground parking will oe requireo.
There will a total of 55 housing units, each approximately 250-350 square feet. The building will
contain self-service laundries, community rooms, at least one community kitchen, individual locker.
storage, counseling offices, at least one classroom/computer lab, administrative offices, outdoor
patios, a children’s play area, and a reception area. Access to the housing units will be limited to
the occupants and their invited guests; twenty-four hour security will be needed.
Parking. It is anticipated that a ratioof .4 parking spaces per housing unit will be adequate to
provide parking for both residents of the housing units and the staff who will work in the services
centers. The experience of Palo Alto Housing Corporation’s Alma Place supports our contention
that the limited parking needs of the targeted clientele of the Opportunity Center will mesh With the
parking needs of the service centers’ staff.
Housing Units. Each unit for small families will be approximately 350 square feet. They will
be furnished, including carpeting and mini-blinds, and will include a bathroom and a kitchenette.
These units will also have access to a community kitchen on the second floor for preparation of
some of their meals and for socializing with other residents of the family units. Each SRO unit will
be approximately 250 square feet. They will be furnished, including carpeting and mini-blinds, and
will include a bathroom and kitchenette.
Rent. The rents must be as low as possible, depending upon the available financing and subsidy
contributions. Projected rents are $339 (units for singles) and $388 (small family units) per month, ’
equivalent to 22% and 23% of the County’s current median income levels, based on 30% of
income for housing cost. Residency in the transitional units on the second and third floors will be
limited to a maximum of 18 months to 2 years. An initial six months lease and then month-to-
month rental agreements will apply to the units on the fourth floor.
Operations/Management. Operating expenses will be higher than for traditional apartments,
due to the need for desk service, security surveillance, housekeeping/janitorial functions and
maintenance, provision of furniture, and utilities and frequent turnovers. A full time resident
manager will be on the premises. In addition, the services centers will also incur operating
¯ expenses, some of which may overlap with the housing components. It is anticipated that
organizations providing services in the Opportunity Center will be charged below market rent, and
that much of the funding for the operating expenses related to the services centers will be secured
through collaborative grant applications and fund raising efforts by the participating agencies,
InnVision, and CWG.
IPROPOSED DEVELOPMENTBUDGET I ~
Purchase Price - Land
Construction Contract Price
Construction Change Order Contingency
Title, Escrow, City & County Transfer Tax
Due Diligence Studies
Architectural & Engineering
Municipal Fees & School District Fees
Borrower Legal Fees
Demolition
Economic Consulting
TCAC Fees
Lender Origination Fees & Legal Counsel
GIC Purchase to Secure Operating Deficit Funding (15 Years)
TOTAL DEVELOPMENT COSTS
.1,065,000
8,614,426
344,577
10,000
60,00O
350,000
350,000
45,000
35,532
30,000
44,468
75,000
2,062,143
13,086,146
SOURCE OF FUNDS FOR DEVELOPMENT OF THE OPPORTUNITY CENTER
STATUS
Packard Foundation
City of Palo Alto CDBG/Trust Fund
Califomia HCD MHP
State of California HOME Funds
County Housing Trust Fund
Supportive Housing Program (McKinney)
County of Santa Clam CDBG
County of San Mateo CDBG
Affordable Housing Loan Program
Foundations/Private Donations to date
General Partner Capital (Capital Campaign )
Limited Partner Capital
Total Sources
1,000,000
1,000,000
2,325,000
1,000,000
500,000
400,000
500,000
400,000
250,000
350,000
2,592,345
2,768,801
13~086~146
CONRRMED
Applicationt to be submitted 12/00
Application to be submitted 2/02
Application to be submitted 11/01
Application to be submitted 3/01
Application to be submitted 4/01
Application to be submitted 1/01
Application to be submitted 1/01
Application to be submitted 4/01
CONFIRMED
Various applications to be submitted
Application to be submitted 2/02
FUNDS
AVAILABLE
August. 01
May. 02
March.02
March.01
April. 0"1
Aug .02
Aug. 02
June. O1
July. 02
Oct. 02