HomeMy WebLinkAbout0538.094,
; 13
City of Palo Alto
_~~ty 1\!anag!rts}~,ee_!lrt
TO: HONORABLE CITY COIJNCIL
FROM: CITY MANAGER
AGENDA DATE: IH«mber 19, 1994
DEPARTMENT: PlaDning add
Community EuYironmeat
CIIIR:538:94
SUBJECT: Budget ArnendrntDI OrdlDaDt'~ to Provide Fonds for 1be
E'I1~fl5i{)c 1)( th~ OptiQtl to PilN:bast 7~3 Alm!t Str«t
R,EQIiEST
(oweil action is rcqll(~\:;J tn ~,:k;'1 ;~ Hu(h:.:l ,\.rn~nJTi1~'nt OTJi['1~El,:I-~ ;iIJthori7in.>?: the tr.'insfer
of$12,5{ij in r-hlu:--in,e R~,,({Y,: }und:, Ilnd~ls;.:rial -Cn:nm1.;'f.:.ia) ,\\:c.::~tlnn tn proyid,: hmd::.
to f'xtend {h~ ell}' 'j uption In rUf,:.IiJ...:,.-~r.,: rn_lpsrt~ at iSJ /d~2. ~I.rc,:t lh.rough June :10,
1995.
RECOMMENDATIONS
Staff recommends tha.l I.he C'l1undl'
1. Adopt the anach("..d Budget Arn.:nJmenl Ordinance autho\i?_in~ the transfer of S32,501 in
Housing Re-serve Ft!I1ds {Indu..s!Iia.l -Commercia! .Ax~OIrnt) to pr-vvide funds to e.\.1cnc the
City's option to purchase the pmpmy a! ,5) A!ma StrlXt tltrou~~ June 30, 19')5.
2. Dilet..'1 the Cit)' Manager to e.\1elid the Cj[y's option to purchase 753 Alma Street on a
mon!.b-lo-moi,th basis, as necessary. through Ju..'1e )0. 19'95, to allow completion of the
appropriate envirorunentai m' LCW pr\.X.eS.S.eS assessing the pun::hase 0 f thl! property anrl the
d.evdopm<llt of • single room =ar.aocy !SRO) housing proj",,~ as proposed in the Palo
Alto Housmg COfPOntion's Feasibility Study.
poLICY IMPLICA TlO;o;S
1his action is c.)nsistent v .. ith Coun..:i!'s decisions on November 28. 1994. as con.:tlrmed on
December 5, 1994, supporting, in con<q>~ the acquisition of the 753 Alma Street site for
development by the Palo Alto Housing Corporation (PAHC) as SRO-type housing.
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EXECUTIVE SUMMARY
The City's one year option to rll;::'chas:e 753 Alma Street e:xpin:~ on J.l."Llar) 6. 1995. The
terms of the option agreement permit up to six monthly C':\.1ensions. at a cost of S5.416.67
per month. provided that escrow doses by June 30, 1 WS. If the City ultimately elcct .. to
C'xertise the P'"olI'Chase option, the seller, prior to c!(..lSe of es.cmw, rn~t cumplt"ie reml!diation
of the soil contamination and secure cleardIlce from the Re-gional Water (Ju.a.lity Contrd
Board and any ether appropriate authorities. The site cleanup and clearance" is expected W
take aT least two months.
Due to uncertainties. regarding the federal ho:..:sing hudg:tt f(lr FY I 'Nli, PAHC and -:.t.an
intenQ to pursue an aggressive pTt'de\,eluprrll,:nl :'ithedule. \~ j,h 11:;; e,t'lj-;:"'H,,,.e of ..:('mrl~ting
both the Piarmed Community (PC) Z(lrJ':;: application rede\\ 3nd the "it'., ;1,:qui:...!!i,\~ r~'·"x'",;,
by d"u: June 30 close of escrow de~"dHne. Thl:> J.:-..:;denHt:d ~.I.:h,'duit; '.'. ill J.!tCi'S P .. \.HC 1')
apply for fed<:,ral tax crcdi!;s and HO~lE fund ... during 1995. llii~ piJ11 \'.i11 ,Ibf) :::lk:'.i "<.11T
to complete the environmental documentati,)n on Ih ... rlrll"~l<'i ,_mel lh~' .. hl.{i_I:,ili,,"<n
:,;imultan·!ously, Staff and PAHC \"I,'ill m<:~! p.:rindi..:a11 .. Ie. rl\'J.l"S 3.nd iC,(j_~,-(,_;", 1[h· ,-(hl;'ciuk
Staff will rctum to the City Council ill Janu,1i"Y ...... ·llh a r'l..'(k\'d(lrm~~nl lC:l,ln ,)~'Tl't"m;;nl
bet\veen the City and PAHC, together wilh a budget amt.'ndm(nt l"\rdlllJ..n,;~: Jppr.;'pri:iting
HOllsing Reserve Funds for the work cOn'red by the agree-me"l.
E!!',~N., IMPACT
This action \\-'ill reduce the lnduslrial -Commen;ial t-hlu',in~ Re;;f;rv(: } und lJ~· SJ2>,O~
leaving a remaining balance of $2,841,23-1, inrluding amounts WhlCh \~ a~ prenously
appropriated for the Lytton IV project, btll which arc 03yailab!c for ~appf0pf1atjon.
ENymoNMENTAld:\SSESSMENT
Extl:nsion of the option agreement is not an action subject to tht' California Environmental
Quality Act (CEQA). Appropriate I!nvironmentat r,,:vlew documerHs \-\ill be prtpared for the
purchase of 753 Alma Street and for re\'i~w (If the development pruposal.
STEPS FOLLOWING APPROVAL
Staff will rctum on January 17, 1995 \vith a prcdc\'eI0pm~nt loan agreement to adYan(c
PAHC the funds fOI various predevelopnu:nt activities, including preparation of the
entillement and fmancing applkations and payment for the em'ironmental assessment and
other City fees. PAHC has submitted a preliminary Architectural Review Board (ARB)
appHcation which will be scheduled for a Janu:if)' ARB meeting. Council action on Lle PC
zone application, the purchase option, a dc\'elnpl1lent o.grc<.':ITIcnt ,~ilh PAHC :md cOOimitm.cnt
of the remaining City funding is-tentalively Sdll'duleJ i'nr Jun~ 5. 1995.
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AITACHMENTS
Budget Am~dmcIlI Ordinance
PREPARED BY: Catherine Si~gel, Senior Planner
DEPARTMENT HEAD REVIEW: ~ ~L. __ ._
KENNETH R, SCHREIBER
Director of Pla.rining and
Gonununity PUcnt
0fhr:E.Mff~~~r--13.v M,noger ()
CITY MAHAOEH APPROVAL:
CC: Palo Alto Hou,ing Corporalion
Charles J, Keenan III and Mark T. Gates, Jr.
Independent BMW
Earl and Cye Ellison
University Park Asso, clo Virginia & f)()n Fitton
Patricia & Earl Schmidt
Rose & Bill Thails
Palo Alto Plaza HOmeO\\l1ers Assn,
E. A. Maas
Bill McCrum
Pqt 3 0(3
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ORDINPo..NCE NO..
ORDINANCE OF THE COT,JNCIL 0F THE CIT'{ OF PALO ALTO
~,.£NDING THE BtJDGET FOR THE FISCAL YEAR 1994-95
TO PROVIDE AN .~DITIONAL APPROPRIATION TO EXT~'~ THE CITY'S
OnION TO. PURCHASE 725 and '753 ~.A STREET FOR SINGLE ROOM
OCCUPANCY HOUSING
WHEREAS, pursuant t.o the provisions of Section 12 of. Article
III sf the Chart.er of the City of. Palo Alto, t.he Courlcil on .Jun-e
20, 1994 did zdopt .a b:.J.dget for fi:8cal year 1994-95; and
;.r.-r~;l(..E_r..s, pxo'.riding fo~ s i.ngle roarn 0ccupancy i SROj type
i:-:)'.lsing un.U:.s pro:r,·:ltes afforclabl-e hQ~J-sing tor Pal.O ]'\It.o; and
:mERF.''''1.::::, in N.()ver;-: . .ber, J 99:3 the City COiinciJ. .a.cq'..liled a Or!E:
!'c:,a't.-cpt ::'C'JTl tC.1 pUJ':·c~.'iSE-'.'3.c.:mt pn.ip~"!rt y at 725 i'I.[ld 7~,J Al[!18. Street
3~d in l'-':arcf1: 199" the -::It·,,· counci 1 prc.../v.i.ded .:3,n additional
appropz'iatioIl for pre-dev~lopr:".ent expensE's; and
WHEREJ\$, it is Hecessa:ry" to ext(;nd the City's 91..l.l:chase opt.ion
to C'om.plet.e State and F~dera.l Envl.'I':'onmentaJ. r~~ll.ews.
:':CW, THEREFORE, the COl.Jnci..l of the t'J..ly of ?alo Alt.o does
ORDAIN as follows:
SE(""T'ION 1. The sum of Thirty Two Thousand Five Hundred and
One Doll-irs ($32,S01) is hereby app:-opriated to Facility and
E.quipment PUrCha>33S in the Comm€Ycial Housing In ·Lieu and the
HO\Jsing R~serve Fund is correspondingly decreased.
SEC:l'.I.QH......2.. This tra.r'Jsaction will reduce the Housing Reserve
Fund balance from $1,5'23,735 to $1,491,234 as of December 6, 1994.
S~CTrQN 3. As specified in Section 2.28.0BO{a) of the Palo
Alto ~unicipal Code, a two-thirds '.lote of the City Council is
required to adopt thi.s o.rdinance.
Sr'c~rT(]N 4 'rhe Counr.;il of c.he City of Palo P.l to her!;;;by finds
chat the enactment of thi:::: ordinance is not, i'i PI."oj ect under the
Californi.a Environmental Quality Act and, ther'e(ore, no environmen
t.al impact assessment is necessa:ry.
.,. ..
SrCIIQN 5,
Municip.!tl Code,
adoption.
As pro· .. ided in Section 2,04,375 of the Palo Alto
this ordin6nce shall become effective upon
Ir-t'TRODUCED A.."ffi ?ASS£D:
NO.E.S :
APf'ROVt;L:
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City Manager
Director of ~tn&nce
Director 0: ?lanning a~d
CCIT'.r:""unic:y En':.i:,·on-;·,~rit.