201 S. Anaheim Blvd.
Suite 201
Anaheim, CA 92805
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Fax: (714) 765-4630
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CITY COUNCIL AGENDA REPORT
City of Anaheim
HOUSING & COMMUNITY DEVELOPMENT
DEPARTMENT
DATE: SEPTEMBER 13, 2022
FROM: HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: REQUEST TO APPROVE COOPERATION AGREEMENT TO
TRANSFER PERMANENT LOCAL HOUSING ALLOCATION
FUNDS TO ASSIST WITH THE ACQUISITION OF THE COVERED
WAGON MOTEL LOCATED AT 823 S. BEACH BOULEVARD AND
WAIVE TRANSIENT OCCUPANCY TAX OWED FOR 823 S.
BEACH BLVD
ATTACHMENT (Y/N): YES ITEM # 12
RECOMMENDATION:
That the City Council, by Motion,
(1) Approve a Cooperation Agreement for the transfer of Permanent Local Housing Allocation funds to assist with the acquisition of the Covered Wagon Motel by and between the City of Anaheim and the Anaheim Housing Authority, substantially in the form attached hereto; and authorize the Director of Housing and Community Development, or her designee, to execute and to administer the Agreement on behalf of the City; and
(2) Approve a waiver of the Transient Occupancy Tax owed for 823 S. Beach Blvd in the amount of $254,651.54 to facilitate the sale of the property to the Anaheim Housing Authority.
DISCUSSION:
In 2018, the City of Anaheim (the City) adopted the Beach Boulevard Specific Plan, to incentivize and facilitate the revitalization of Beach Boulevard. Development and revitalization efforts are currently underway including the 39 Commons mixed-use development project located at the northeast corner of Beach Boulevard and Lincoln Avenue and the future mixed-use development planned on the Housing Authority-owned site located at the southeast corner of Beach Boulevard and Lincoln Avenue.
Cooperation Agreement (Transfer of PLHA funds) for the Covered Wagon Motel September 13, 2022
The Covered Wagon Motel (Motel) is an existing 70-unit motel located at 823 S. Beach Boulevard in Council District 1. Crystal Pak (Seller) has agreed to sell the Motel to the Anaheim Housing Authority (Authority) for $6,600,000.
Funding to acquire the Motel will be sourced in whole or in part, from Permanent Local Housing Allocation and/or Low Moderate Income Housing Asset funds in the amount of $6,600,000. The Cooperation Agreement by and between the City and the Authority will authorize the transfer of available Permanent Local Housing Allocation funds to the Authority to assist with the purchase of the Motel.
Under the terms of the proposed Purchase and Sale Agreement, the owner of the motel has requested assistance in resolving an outstanding Transient Occupancy Tax (TOT) debt owed to the City in the amount of $254,651.54 as of August 31, 2022. As a result, staff is requesting that the City Council allow for the debt to be offset as part of the consideration for the sale of the property to the Housing Authority. This approval will help facilitate this transaction as the Housing Authority does typically cover business relocation and related costs however, TOT debts may not be an eligible activity.
After completion of the Motel purchase, staff will issue a Request for Proposals (RFP) to solicit Developer proposals for the purposes of creating a mixed-use development inclusive of varying affordable housing opportunities. After the RFP process is complete, staff will present the selected proposal to the Anaheim Housing Authority’s Governing Board for review and approval.
IMPACT ON BUDGET:
There are sufficient funds in the Housing & Community Development Department’s FY 2022/23 budget to acquire the property out of the Low and Moderate Income Housing Asset Fund with funding provided by the Permanent Local Housing Allocation grant. The grant award received from the State’s Permanent Local Allocation Fund is restricted for affordable housing and provides funding for the acquisition of property.
Respectfully submitted,
Grace Ruiz-Stepter
Housing & Community Development Director
Attachments:
1. Cooperation Agreement
2. Vicinity Map