The URL can be used to link to this page

Home My WebLink About0532.092November 25, 1992 HONO~BLE CITY COUNCIL Palo Alto, California lytton Gardens IV -Funding Members of the Council: ·."" T~is report forwards to Council a Budget Amendment Ordinance (BAD) aut~orizing the expenditure of a minimum $1:000,000 and a maximum $1~450.0aO from City In lieu Housing Funds and an authorization for expenditure of S100,000 in previously appro~ed Community Development BlocK Grant Funds «(OBG) to be used for construction of the lytton IV Senior Housing project. Background In-lieu Housing Funds: On Novemb~r 9, 1992. the ~itf Co~ncil. on a 5 to 3 Yote, aythorized the use of In--lieu Housing Funds for funding of the Lytton I~ Senior Housing project at llO Everett A .... enue. Th~ Cou~cil attion was as foliows: 1. Dirett staff to prepare a budget amendm~nt ordinance which, upon adoption by Council, .,ill appropriate sufficiEnt. funds to carry out the C~unc;lls direction set forth be10w: ~. Authorize the expenditure of up to Sl,450,000 In-Lieu Housing Funds (the In-lieu Grant) to be applied to the Lytton iV senior housing project and authorize the release of the In-Lieu Grant upon satisfaGtion of the folTowing ccnditions: The In-Lieu Grant shall not be less than S1,OOO,000, nor more than S1 7 450,OOO, and withirl those limits shall be that amo~rt which tcgether with funding provided by the U.S. Oepartment of Housing and Urban Development (HUD), Corrmunit.1 Development B1ock. Grant (CDBG) funds, Palo Alto Housing Corporation iPAHC) funds and $202,000 of Community Housing Inc. (CHI) funds (including CHI funds prevtously expended by CHI for the Lytton IV senior housing proj~ct) shall be necessary to comp1ete the project, prOVided that the £n-Ue1j Grant shall exceed S1,000,OOO Gilly to t~e extent that CHI has satisfied the Council that it has exercised reasonable efforts to maximize the Cimount of funding by HUD and to mlnimi.ze pI"oject costs, including land acquisitior, construction costs, and construction rel ated costs. CMR:532:92 • . - "-""--, - \ , . 5 , , B. / Conditior;s Precedent. CHI shal1 make its 1and purchase offe~ contingent upcn bot~ tne reee; pt of a I1UD condit ional comitl:1ent of fiJ!'lds of not 1 ess than $4,650 1 000 and ~ne City's review anJ approval of the amou~t and form of the conditional cOlT!Tlitment. If the conditional -;olTl'l'litment of f~nds is not sufficient to cover the balance of the project costs, the purchase of the land ~il1 not take prate and CHl will r~tu,n any money drawn from the City to the City. C. Terms of Payment. City "..1 11 pay the funds conrnitted to CHI or its escro'A", at the City's dfscretion, after the condition precedent has been satisfied, but no sooner than the date escrow for the purcha$e has been opened a~d escrow instructions c0nsistent with the conditions precedent have been approved by the City. 2. Authorize the Mayor to execute the appropriate documents, as approved by the City Attorney and Real Estate Manager, to provide an easement for vehicular ac<:ess through Ci ty parking lot J to the lytton T\I proje<::t in accorda~ce with the approved Planned Commu~ity lone Ordinance No. 4053. 3. Require as part of the funding 4greement that CHI a~d lytton Gardens Tnc. (lGI), respectively, provide the City with audited financial state-ments for Lytton I, II, III ir'ld IV, tncl'Jding ar.y :":'l2rlagement 1etter comments on adequacy of internal or operational controls, within 120 days of the close of eacn fiscal year. Additionally, reserve the City'S right to audit the records, including the financial record's supporting the aforementioned fi :lanel al st.atf:rlents, and other records and documents pertai~!ng to th! operation ~f the Lytton projects. Pre-vious conditio~s of the Planned Community Zon~ approval are still app'icabl~. Two of these conditions are a requirement for approval of a final landscaping plan by the Architectural Review Board and development of a construction sch'2dule to t.e appro;:ed b.\I the Public Works Department and Transportation DiVisio'1. These conditions were reinforced by the Councilor. November 9, 1992, and emph~sis was given to working with the immediat~ neighbors and SlJrrwJndiflg neighborhood to minimize the impact of the project on the neighborhood. COBG Funds; On May 26, 1992, the Council adopted Resolution 7093 approll'ing the use of COl'lll'lunity Development Block G.rant fund.,,: for fiscal year 1392-1993. Included in the C08G funding was S393,995 in a New Housing DeveTopment Fund. ApprOXimately S]OO,OOO of these funds 'wa50 set as",de for ~enlO,:" housing. A plan for use of the funds w~s required to be submitted for Council apprcval. Di~JJ .. ~s ; on Tn-lieu Housing Funds: Per Council direction, the attac~ed BI\D authorizes the expenditure of up to 51,450,000 in In-lieu t1o~sing FIJnds. These funds wi'll CHR:S32:S2 ~ ,cmr\lytf~nd iii/sin Page 2 • not be expended until t~e conditions of approval of the project and the CQuncil conaitions have beef' met. ftpprovaT of the BAO requir~s a two-thirds vote of the Counc'l. CDSG Funds: Staff had initially req~ested that the COBG funds not be expendEd until tn-e Lytton II{ project wa.s fully funded. With U,e plan far use of all funds as subrJitted by the applicant and a.ppro.ved by the Council on November 9, ]992, and tne (omi tment by the Ci ty to fund the project for a mi nimum of SI,OOO,OOO and a maximum of $I,4S0,OOO, staff believes that the $100,000 in CuB~ funds should be released as soon as possible in order to allow (HI to continue development of the project. The release of the COBG funds is contingent upon the completion of the required en'olironmental revielll process under tne Hatiolul Environmental Pol icy Act (NEPAl. Per the attached memo from E. M. Schaffran, the COSG funds will bs used fQr predevelopment costs for architect and engineer fees, housing consulta~t fees and sewer flow meaSUreMeht on Everett A~enue. Reco!Jljlgodatipl'l Staff recommends that (ouncil: 1. Adopt the attached Budget A.mendment Ordinance iluth{1rizing a minimum of $1,000,000 and a maximum of $1,450,000 in In·Ueu Housing Funds to be used for land :zcquisitior. and constructioT1 costs for tne Lytton IV senior housi~9 project. ~. Authorize the expenditure of up to $100,000 in COSG funds, which were allocated by Resolution 7093 to the N~w Housing De¥elopment fund io fisca1 year 1992-1993, to be lIsed for prf"r::Ie'olelop~:1ent costs asscciat~d with the lytton iV ~enior housing p:-.oject in accordance with all applicable federal requirements. Q;;:~u~ {;t)hh~ V';~~~-[. Gl~Lt£;:~·-~~ /t:{1"ud:;(' ~d£uhy Manager Planning Projects .~~ eNG C lnter1m City Manager <:c: Planning Commiss;;on Architect~ral Revie~ Board Human Relations Commissior. Citizens Advisory Committee KUINETH R. SCHREIBER DirEctor of Planning and Comrillni ty E:;I/ 1 ronment Comunity Housing. Inc., Slair Stew"rt, 65& lytton Avenue, Palo Alto Ca 91301 CHR:S31:92 p, \OTIr\Lytfu~d ~~_ ....... _"._ ... , ___ ~_w-_____ · 11.125/92 Page 3 ··ft o Tony Badger, 381 H~wthorne Avenue, Palo ~lto, CA 94jOl Geoff 8.11, 315 Bryant Street, Palo Alto, C~ 94301 JI. B.er, Ware l Friedric~, 400 Hamiltor. Avence, Palo Alto, CA 94301 Mel;ssa 8;99s, 301 Bryant Street, Palo Alto, CP 94301 lrv Brenner, 250 Byron Street, Palo Alto. CA 94301 Carrasco & Associates. 120 Hamilton Avenue, Palo Alto, CA 94301 loretta and Jim CEsari. 238 Bryant Street, PilO ~ltol CA 94301 Kathleen Craig, 101 Waverley Str~et, Palo Alto. ell, 94301 Ralp~ Cressm.n, 360 E,erett Avenue, Plio Alto, CA 94301 Marvin H. Feinstein, P. D. Box 1461, Palo Alto, CA 94302 A~drew Gottlieb, 309 Bryant Street. Palo Alto~ CA 9430] Jamos A. Kocn, 2665 East Bayshore Road, Palo Alto, CA 94303 ine Martin Re~ocable living Trust, 2345 Yale Stre~t. Palo Alto, CA 943061 DorothJ Merriam, 365 Everett Avenue, Palo Alto. tA 94301 Joe Heyers, 301 6ry,nt Street, Palo Alto, CA 94301 N1d-~en1n5ula Housing (oalitfon, fran Wagstaff, Exec~tiwe Director, 430 Shennan Avenlie. Suite 203, Palo Alta, CA 94306 Jim Marley, 160 Waverley Street, Palo Alto, (A 94301 Palo Alto Housing Corporation, Marlene Prendergast, [xecutiwe Director, 540 Cowper Street, Suite G, Palo Alto, CA 94301 Nancy Pleibel. 301 Bryant Court, Palo Alto, CA 94301 E. M. Schaffran I Co., 700 ~ancock Way, EI Cerrito, CA 94530 Lora Smith, 162 Bryant Street, Palo Alto, CA 94301 Patr;t;a Ward-Dolkas, 412 Everett Avenue, Palo Alto, CA 94301 CMR:532:92 ,,: 'I,cmr\l ytfund 11/15/92 Page 4 • , l II I I November 19, 1992 , To: Jin: GilHland From: Mort Scluaffru, /(,{~ Subj.ct: In=ded Uses of CDBG hods by em Cu, Lytton IV On behalf of Community Housing, Inc., ""y I '<pOrt tluat the CDoo fw,d. which we loot fonrard to rcc:Uring will be wed for the following Lytton JV predc¥ciopmcl"lt aperues: Arc:h.itectare and ugineering, HOlI.5ing Consultant, tnd Sewer F10w MC3-tur~"rtlent 011 Everett A.nnUl:. w. roqucst oppronl of the os. of the CDBG fUM, for th= purpo>es. Thank you. and if y011 have .ny questiot'll pleue all. ce. Blalr S~\II2rt cOd rOO v[:[I 2;,5l·i.Or~ o ORDINANCE NO. ORDHlANCE OF THE COUNCIL OF THE CITY OF FAL-O ALTO AMENDING THE BUDGET FOR ~HE FISCAL YEAR 1992-93 TO PROV!0E FUNDING FOR THE LYTTON IV SENIOR HOUSING PROJECT .AT 330 EVERETT AVENUE WHEREAS, pursuant to the provisions of ssction 12 of Article III of the Charter of the city of Pale Alto, the Council on 3une 22# 1992 did adopt a budget for fiscal year 1992-93; and WHEREAS, the City of PaI0 Al to recognizes the need for low a:rd m-:xlerate. income housing in :;'ts Comprehensive Plan and Comprehensi .... e Housing Atfordabiltiy Strat~gy; and WHEREAS, the non-p~ofit Community Housing, Inc~ has secured federal funaing for capital ex?enditures and rental subsidies for the Lytton IV low-income senior hOl:sing project; and WHF~EAS. addition~l public funds are requirea to obtain federal funding and to construct the 51-unit LY''cton IV senior housing project; NO~, THEREFORE, t..he. Council of the. City of Pa.lo Alto does ORDAIN as follows: SECTION 1. c-:)lJncil hel:'eby appropriates a minimum of One Killion Dollars ($1,000,000) to a maximum of One Million Four Hundred Fif-:Y Thousand Dollars (1,450,000) to Community Housing Inc. (CHI). Expenditures in excess of $1,000 ,000 are authorized to the extent that funds in excess of U. S. Cepartment of Housing and Urban De.velopment (HUP) , Comntu01ity Development Block Grant, Palo Alto Housing Corporation and CHl funding are necessary to complete the Lytton IV senior housing project; and to the extent that CHI :mak.es reasonable. efforts to maximize HUD funding and -minimize project costs including land acquisition, construction costs, and construction-~elated cost5. SECTION 2. This transaction will reduce the Housing In-Lieu Commercial FunQ from $3 r 300,OOO to $2,300,000 (based on a minimu~ appropriation) or to an amount between $2,300,000 and $1.830,000 (based on a maximum appropriation) as of Jun~ 30 r 1992. SECTION 3. 'I'he Council of the City of Palo .Alto hereby tinds that the enactment of this ordinance is not a project under the California Environmental Quality Act and, therefore, no environmen tal impact assessment is necessary. • SEC'I-ION 4. Municipal Code, adoption. As provided in section 2.04.~75 of the Palo Aito this ordinance shall become eftecti~Je upon INTROOUCFD AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: Clty Clerk Mayor APPROVED AS TO FORM: APPROVED: C1ty Manager Director of Finance D1rector of Public Works