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File #: 24-286 Meeting Date: 7/16/2024
In April 2022, OCPA began providing power to commercial customers in Irvine, Huntington Beach, Buena Park, and Fullerton. OCPA began providing power for residential customers in October 2022.
ANALYSIS:
The City of Cosa Mesa previously considered joining OCPA. In early 2020, the City of Irvine sent invitation letters to Orange County Cities to initiate discussions on a potential CCE partnership. After much consideration, at the regular Costa Mesa City Council meeting on November 17, 2020, the City Council voted to have the City Manager and City Attorney negotiate the final terms of the CCE agreement with OCPA. However, due to the precedence of the COVID-19 pandemic, and the leadership structure of the OCPA at the time, the City did not execute an agreement with OCPA.
In early 2024, representatives from OCPA and several Council Members requested the reconsideration of an agreement between the City of Costa Mesa and OCPA given the experience gained by OCPA over the past four years since inception. In order to consider whether joining OCPA could be mutually beneficial, OCPA recommended conducting a feasibility study. To conduct a feasibility study, OCPA requires a non-disclosure agreement to facilitate the procurement and analysis of Southern California Edison (SCE) load data. The feasibility study is a basic first step to determine the potential benefits of joining OCPA.
According to OCPA, the procurement of Southern California load data takes approximately 12 weeks.
Once the data is procured, OCPA would conduct an internal load data analysis and produce a feasibility study, which would take approximately six weeks. After the conclusion of the study, the results would be presented to the City Council, at which point a determination could be made as to whether the City should further evaluate joining the joint powers authority for the community’s benefit.
ALTERNATIVES:
City Council may choose not to authorize the non-disclosure agreement.
FISCAL REVIEW:
The Finance Department has reviewed the report and concludes that there is no fiscal impact of authorizing an NDA for the purpose of conducting a feasibility study.
LEGAL REVIEW:
The City Attorney’s Office has reviewed the report and approves it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This item supports the City Council’s goal to Advance Environmental Sustainability and Climate Resiliency.
CONCLUSION:
Staff recommend the City Council authorize the City Manager and City Attorney to develop a non- disclosure agreement to release City of Costa Mesa load data from Southern California Edison (SCE) to the Orange County Power Authority (OCPA) in order to conduct a feasibility study.
242
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-283 Meeting Date: 7/16/2024
TITLE:
OPTION TO LEASE AGREEMENT TO CONSTRUCT AND OPERATE A 70-UNIT AFFORDABLE SENIOR AND SUPPORTIVE HOUSING PROJECT LOCATED AT THE CITY’SSENIOR CENTER, 695 WEST 19TH STREET
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES
DEPARTMENT/PLANNING DIVISION
PRESENTED BY: VICTOR MENDEZ, SENIOR PLANNER
CONTACT INFORMATION: VICTOR MENDEZ, SENIOR PLANNER, (714) 754-5276 RECOMMENDATION:
Staff recommends the City Council review and approve the proposed “Option to Lease Agreement” for a term that will expire on October 31, 2024, with one possible 120 day extension. The purpose of the agreement is for Jamboree Housing to apply for Project-Based Vouchers issued by the County of Orange.
243
City of Costa Mesa
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
Item #: 24-283 Meeting Date: 07/16/2024
TITLE: OPTION TO LEASE AGREEMENT TO CONSTRUCT AND OPERATE A 70-UNIT AFFORDABLE SENIOR AND SUPPORTIVE HOUSING PROJECT LOCATED AT THE CITY’S SENIOR CENTER, 695 WEST 19TH STREET
DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING
DIVISION
PRESENTED BY: VICTOR MENDEZ, SENIOR PLANNER
CONTACT INFORMATION: VICTOR MENDEZ, SENIOR PLANNER, (714) 754-5276 RECOMMENDATION:
Staff recommends the City Council review and approve the proposed “Option to Lease Agreement ” for a term that will expire on October 31, 2024, with one possible 120 day extension. The purpose of the agreement is for Jamboree Housing to apply for Project-Based Vouchers issued by the County of Orange.
BACKGROUND:
The property is located within the 19 West Urban Plan. Existing development on the subject property includes the City of Costa Mesa Senior Center which was constructed in the 1990s (approved under Conditional Use Permit PA-90-60). The Senior Center is an approximate 20,000-square-foot, two-story building with a 145 space surface parking lot. The original vision and concept for the Senior Center several decades ago included a senior housing component with 46 units. However, at th e time of development, the City Council decided to not proceed with the senior housing component.
The proposed development would include a new 70-unit senior residential building to be developed on a portion of the Senior Center’s existing surface parking lot. The project does not propose any changes to the existing Senior Center building.
On July 21, 2020, the City Council approved an Exclusive Negotiating Agreement (ENA) with Jamboree Housing Corporation (JHC) to study and determine the feasibility for the right to acquire a long-term leasehold for an affordable senior housing project to be developed on a portion of the City’s Senior Center parking lot. JHC is a non-profit affordable housing developer that has developed nearly 100 affordable housing projects throughout California. The ENA term was approved for a one -year period with an allowed 120-day extension. Although a 120-day extension was granted by the City, the ENA expired in 2022. Staff continued to work diligently with JHC to submit for entitlements.
The July 21, 2020 agenda report and meeting video are provided in the links below:
July 21, 2020 City Council Agenda Report:
http://ftp.costamesaca.gov/costamesaca/council/agenda/2020/2020-07-21/NB-5.pdf 244
Item #: 24-038 Meeting Date: 07/16/2024
July 21, 2020 City Council Meeting Video:
https://costamesa.granicus.com/player/clip/3578?view_id=10&redirect=true&h=c234f40997ffc17e74 bd793e125b476f
On February 20, 2024, the City Council reviewed a project screening for the proposed senior and supportive housing development, in accordance with the 19 West Urban Plan . The purpose of the screening review is to receive City Council comments on the merits and appropriateness of the proposed development before the applicant submits the formal planning application(s). The City Council indicated that they supported the project moving forward with a suggestion that JHC consider adding more residential units. The project application has been submitted and staff and the applicant are currently working to complete the project application for review by the Planning Commission and the City Council.
As currently proposed, the JHC project includes a 41,592 square-foot, four-story building with a total of 70 residential units. The development focuses on providing affordable housing for seniors, offering primarily one-bedroom units and several two-bedroom units, including one unit designated for the site manager. The units, excluding the manager's unit, will be available to seniors with income levels ranging from 30% to 60% of the Area Median Income (AMI). Out of the 70 units, 34 are proposed as permanent supportive housing for seniors. Ground-level amenities facing 19th Street will include office spaces, a community room, media lounge, and a dog run, with podium parking located behind. Above the ground floor, the project proposes an outdoor courtyard, fitness center, laundry room, and library.
The current site has 145 parking spaces available. However, due to the building's placement on a portion of the parking lot, the number of parking spaces will be reduced to 133.
ANALYSIS:
Jamboree Housing Corporation is in the competitive process of responding to a Notice of Funding Availability (NOFA) issued by the County of Orange for “Project Based Vouchers ” (PBVs) for the proposed housing project . JHC is applying for 34 PBV's. The PBV's are critical for the financial feasibility of the project as they allow the project to leverage additional funding while targeting the low- income senior population that this project will serve. One of the threshold crit eria to qualify for this funding application is the need to demonstrate site control. At this time, JHC cannot demonstrate site control since the ENA has expired. The Option to Lease is a mechanism to demonstrate site control without a fully negotiated “Ground Lease”. To ensure adequate time for the necessary discussions and approvals, staff is also recommending that the City Manager be authorized to extend the Option to Lease once for the maximum period of one -hundred twenty (120) days . The final lease and affordable housing agreement is subject to City Council approval and will be brought to Council concurrently with the final review of the project. According to the JHC applicant team, PBV funding is now in the third application review period and this project will be competing for funding with projects throughout the County. JHC has stated that securing vouchers is a critical initial step in the financing process because it qualifies them to apply for subsequent public funding as it becomes available.
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Item #: 24-038 Meeting Date: 07/16/2024
California Environmental Quality Act (CEQA)
The City Council review of the option to lease is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) (General Rule) , in that there is no possibility that the approval of the option to lease will have a significant impact on the environment. When the proposed project move s forward and the applicant completes a formal planning application, the project is subject to environmental review pursuant to the California Environmental Quality Act . Staff will review the proposed project, including a site lease, based on a comprehensive evaluation of the project impacts as required by State Law. It is also possible that current State Law exempts the affordable housing project from environmental review pursuant to Government Code Section 15194 or other regulations, if it complies with certain criteria based on, but not limited to, project size and location.
ALTERNATIVES:
The City Council can approve the proposed option to lease agreement, or not approve the agreement.
If the option to lease agreement is not approved, development of the project could be subject to significant delays in that funding would not be available at the time the project receives local approval.
FISCAL REVIEW:
There is no fiscal impact to the City associated with the proposed option to lease agreement.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report and option to lease agreement and approves them as to form.
CITY COUNCIL GOALS AND PRIORITIES:
Diversify, stabilize and increase housing to reflect community needs.
CONCLUSION:
Public funding is a critical component of the development of affordable and supportive housing. JH C has requested the approval of the option to lease agreement to obtain this funding and apply for other sources to fund the project development. The option to lease agreement does not obligate the City to approve any site negotiation aspect s, but instead allows for JHC to obtain project funding that could be available at the time of construction. In addition, the City’s approved Housing Element Program 2D includes an objective to pursue opportunities for senior housing on the City’s Senior Center site.
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ATTACHMENT 1
882/020587-0159
17649356.6 a07/10/24
OPTION TO LEASE AGREEMENT
THIS OPTION TO LEASE AGREEMENT (this “Agreement”) is entered into as of the ___ day of ________________, 2024 (the “Effective Date”), by and between CITY OF COSTA MESA, a California municipal corporation (“Optionor” or “City”), and JHC-ACQUISITONS LLC, a California limited liability company (“JHC”). Optionor and JHC are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”
RECITALS
A. Optionor currently owns fee title to that certain real property located at 695 W. 19th Street (APN 424-211-01), in the City of Costa Mesa (“City”), County of Orange (“County”), State of California, as more particularly described on Exhibit “A” attached hereto (the “City Property”).
The City Property is improved with the Costa Mesa Senior Center and adjoining parking lot.
B. JHC desires to develop and operate on an approximately one and five tenths (1.5) (net) acre portion of the parking lot portion of the City Property (the “ Property”) a senior affordable rental h ousing development apartment community containing approximately seventy (70) dwelling units, one (1) of which 70 units shall be an unrestricted manager’s unit , with approximately thirty-four (34) of the rental units set aside as permanent supportive housing for seniors experiencing homelessness, and the balance of the rental units restricted for seniors earning 60% or less of the area median income, (the “Affordable Housing Project”).
C. Optionor and Jamboree Housing Corporation, a California nonprofit public benefit corporation (“ Jamboree”), which serves as the Manager of JHC, previously entered into that certain Exclusive Negotiating Agreement , dated May 26, 2021 (the “ENA”), pursuant to which Optionor and Jamboree agreed to negotiate in good faith on the terms of an affordable housing agreement and associated ground lease (collectively, an “AHA”). The City Manager of the City extended the “Negotiating Period” under the ENA to September 19, 2022.
D. Optionor and JHC desire to enter into this Agreement to provide for Optionor to grant to JHC and for JHC to obtain from Optionor an option to lease the Property upon the terms more particularly set forth in this Agreement.
NOW, THEREFOR E, IN CONSIDERATION OF THE FOREGOING RECITALS,
WHICH ARE INCORPORATED HEREIN BY THIS REFERENCE, AND THE MUTUAL PROMISES CONTAINED IN THIS AGREEMENT, THE PARTIES AGREE AS FOLLOWS:
AGREEMENT
1. Grant of Option.
(a) Option. Optionor hereby grants to JHC the option (the “Option”) to lease the Property on the terms and conditions set forth in this Agreement. (b) AHA Form. Prior to the exercise of the Option, Optionor and JHC shall reach agreement on the final form, terms and conditions of the AHA, which AHA shall incorporate the basic terms set forth on Exhibit “B” attached hereto, and such other terms as the Parties deem 247
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appropriate. Upon the mutual agreement of the final form, terms and conditions of the AHA, the Parties shall attach the form of the AHA, to this Agreement as a substitute Exhibit “B”. If Optionor and JHC do not agree in writing on the form, terms and conditions of the AHA prior to the expiration of the “Term” (as hereinafter defined), this Agreement and the Option shall automatically terminate, without the need of any notice or documentation, and neither Party shall have any further rights or obligations hereunder.
2. Term of Option.
(a) Term. The term of the Option shall be for a period commencing on the Effective Date and ending 5:00 p.m. (California time) o n October 31, 2024 and any authorized extension thereof (the “Term”).
(b) Exercise of Option . At any time during the Term after the Parties have agreed on the terms and conditions of the AHA, and the City Council of the City has considered and approved the AHA, JHC may exercise the Option by giving written notice to Optionor of its exercise of the Option (the “Option Notice”). Promptly after the exercise of the Option, JHC and Optionor shall execute and deliver the AHA.
(c) Expiration. The Option shall expire at 5:00 p.m. (California time) on the last day of the Term.
3. Option Consideration. The Option is granted in consideration of JHC’s payment to Optionor of the sum of Ten Dollars ($10.00). JHC shall pay such amount to Optionor upon the execution of this Agreement.
4. Right of Entry on the Property. During the Term, at JHC’s sole cost and expense, JHC and its designated agents, representatives, contractors, architects, consultants, engineers and employees (collectively, the “JHC Entities”) shall have the right to enter and inspect the Property, make surveys and conduct such soils, engineering, hazardous or toxic material, pollution, seismic or other tests, studies and investigation as JHC may require (collectively, the “ Inspections”), pursuant to the terms of this Section 4.
(a) JHC shall cause the Inspections to be conducted during regular business hours (7:00 a.m. to 6:00 p.m., Monday through Friday) upon not less than twenty-four (24) hours’ prior written notice to City. City may have a representative present at any Inspections of the Property.
(b) In conducting its Inspections at the Property, JHC and the JHC Entities shall: (i) not damage any part of the Property (other than invasive testing conducted in accordance with Sections 4(c) and (d) below) or any per sonal property owned or held by any third party; (ii) promptly repair any damage to the Property resulting from the entry by JHC or the JHC Entities or from any such Inspections; (iii) comply with all applicable laws; and (iv) not permit any liens to attach to the Property by reason of the exercise of JHC’s rights hereunder. (c) Notwithstanding anything to the contrary in this Section 4, JHC shall not undertake any invasive testing, including, without limitation, taking samples of any kind or type from the Property, without City’s prior written approval, which approval shall not be unreasonably 248
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withheld, conditioned, or delayed.
(d) Promptly upon completion of each Inspection, JHC shall cause the portion of the Property subject to such Inspection to be restored to the condition existing immediately prior to such Inspection, to the maximum extent reasonably commercially feasible. JHC shall provide City, at no additional charge and without representation or warranty of any kind, with copies of non-proprietary reports prepared by third parties for JHC in connection with the Inspections within three (3) business days of JHC’s receipt of the same.
(e) JHC’s obligations under this Section 4 shall survive the expiration or termination of this Agreement.
5. Optionor’s Cooperation in Seeking Permits and Approvals. During the Term, JHC may meet, as allowed by applicable law, with all city, county, district and other governmental entities to discuss JHC’s proposed development of, and other matters relating to, the development of the Property and may obtain all project approvals that JHC may deem necessary or advisable in connection therewith. Provided Optionor does not incur any liabilities or out -of-pocket costs except those authorized by Optionor and without binding the Property prior to the execution and delivery of the AHA in any way, Optionor agrees to reasonably cooperate with JHC in any such matters and execute any and all documents or join in any applications if allowed by law that may be required to obtain all such project approvals in connection with the development of the Property.
However, the Parties agree that this Agreement shall not be binding on the City Council , the Planning Commission , the Zoning Administrator , the Building Official , City Attorney or City Engineer of the City regarding any approvals of the Affordable Housing Project required by such bodies or officers, including but not limited to compliance with the provisions of CEQA . JHC obtains no right to develop the Affordable Housing Project on the Property by virtue of this Agreement. Optionor acknowledges JHC may have to process a parcel map to subdivide the Property from the balance of the City Property . As of the Effective Date, the proposed configuration of the Property is as depicted in Exhibit “C” attached hereto.
6. Notices. All notices or other communications made pursuant to this Agreement shall be in writing and shall be served to the Parties at the following addresses (i) mailed by certified mail, postage prepaid, return receipt requested; (ii) sent by express delivery service, charges prepaid with a delivery receipt; or (iii) personally delivered with a delivery receipt:
Optionor: City of Costa Mesa
77 Fair Drive
Costa Mesa, California 92626
Attention: City Manager
With a copy to: Jones & Mayer
3777 N. Harbor Blvd.
Fullerton, CA 92835
Attention: Kimberly Hall Barlow
JHC: JHC-Acquisitions LLC
c/o Jamboree Housing Corporation
17701 Cowan, Suite 200
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Irvine, CA 92614
Attention: Tish Kelly
With a copy to: Rutan & Tucker, LLP
18575 Jamboree Road, 9th Floor
Irvine, CA 92612
Attention: Patrick D. McCalla
All notices shall be deemed received on the date shown on the delivery receipt as the date of delivery, the date delivery was refused, or the date the notice was returned as undeliverable.
Either Party may change its address for the purposes of this paragraph by giv ing prior written notice of the change to the other Party in the manner provided in this Section.
7. Assignment of Option. With ten (10) days prior written notice to Optionor, JHC may assign its rights and obligations under this Agreement to a limited partne rship in which a limited liability company managed by Jamboree is the general partner (“Partnership”), provided that such assignment is consistent, in the reasonable discretion of the City Manager, with the intent of this Agreement. Except as provided in the preceding sentence, JHC may not assign its rights or obligations under this Agreement without the prior written consent of Optionor.
8. Binding Effect. This Agreement and its terms and conditions shall be binding upon and inure to the benefit of the Parties to this Agreement and their respective successors and permitted assigns.
9. Time. Time is of the essence of this Agreement.
10. Further Documents. Upon the reasonable request of the other Party, each Party will execute, acknowledge and deliver or cause to b e executed, acknowledged and delivered, such further instruments and documents as may be reasonably necessary in order to carry out the intent and purpose of this Agreement, including escrow instructions.
11. Exhibits. All exhibits attached to this Agreement and referred to in this Agreement are incorporated into this Agreement by this reference as though they were fully set forth in this Agreement.
12. Commission. Each Party to this Agreement represents to the other Party that it has not engaged or used the serv ices of any person, firm or corporation that may claim a broker’s commission or finder’s fee upon execution of this Agreement, the exercise of the Option or the execution of the AHA, and each P arty hereto agrees to hold the other Party harmless from any loss, damage, expense or liability, including attorney’s fees, resulting from any claim by any person, firm or corporation based upon its having acted as broker or finder on behalf of said indemnifying Party.
13. Captions. The captions of the sections/paragraph s of this Agreement are for convenience and reference only, and the words contained in the captions shall in no way be held to explain, modify, amplify or aid in the interpretations, constructions or meaning of the provisions of this Agreement.
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14. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same Agreement.
15. Attorney’s Fees. In any action between JHC and Optionor to enforce or interpret any of the terms of this Agreement, the prevailing P arty shall be entitled to recover its costs and expenses, including, without limitation, reasonable attorneys’ fees and expert witness fees.
16. Entire Agreement . This Agreement contains the entire agreement between the Parties respecting the matters set forth herein, and supersedes all prior agreements between th e Parties respecting such matters.
[END OF AGREEMENT - SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
“Optionor”
CITY OF COSTA MESA, a California municipal
corporation
By:
City Manager
ATTEST:
____________________________
Brenda Green, City Clerk
APPROVED AS TOFORM:
_______________________________
Kimberly Hall Barlow, City Attorney
“JHC”
JHC-ACQUISITIONS LLC, a California limited
liability company
By: Jamboree Housing Corporation, a California
nonprofit public benefit corporation
By:
Name: Michael Massie
Title: Executive Vice President and Chief
Development Officer
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17649356.6 a07/10/24 EXHIBIT “A”
EXHIBIT “A”
LEGAL DESCRIPTION OF THE CITY PROPERTY
Real property located in the City of Costa Mesa, County of Orange, State of California, described as follows:
Lot 501, Newport Mesa Tract, as per map recorded in Book 5, Page 1 of Miscellaneous Maps in the office of the County Recorder of said county.
Except the easterly 160 feet.
Also except one-half of all oil, gas, minerals and hydrocarbon substances in or under all of the above described land; however, no right is reserved to enter on the surface of said property for the purpose of exploring for or extracting oil, gas and minerals, as reserved in the deeds from Elizabeth W. Farrar and others, recorded August 11, 1953 in Book 2553, pages 624 and 628 of official records, and in Book 2554, pages 23 and 10 of official records.
APN 424-211-01
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EXHIBIT “B”
TERMS OF AHA
1. The “ Closing Date ” shall mean and refer to the date which is the later of the following: (a) five (5) business days following the date JHC has obtained its entitlements for the development of the project, (b) five (5) business days following the date the final map creating a separate legal parcel for the Property has been recorded (applicable only if final map is required by either Party), or (c) one hundred eighty (180) days after JHC has received written binding commitments for the financing required for development of the Affordable Housing Project.
Notwithstanding the foregoing, JHC shall have the right to extend the Closing Date for a maximum of an additional ninety (90) days by delivering written notice of such election to Optionor not later than five (5) days prior to the then scheduled Closing Date; provided JHC has timely satisfied or waived its financing contingency.
2. The Parties will cause the title company to issue the Partnership an ALTA leasehold owner’s extended coverage policy of title insurance with liability in the amount required by the tax credit investor showing title to the leasehold estate in the Property vested in the Partnership free and clear of exceptions and encumbrances except non -delinquent general and special real property taxes and assessments, easements, encumbrances, covenants, conditions, restrictions, rights of way and other matters of record approved by JHC and the standard preprinted exceptions of exclusions from coverage set forth in the title policy along with such endorsements as may be reasonably requested by JHC.
3. All items of income and expense related to the Property, including non -delinquent real property taxes and assessments shall be prorated to the Closing Date.
4. Optionor agrees to negotiate as to whether it shall pay any portion of the escrow fee, documentary transfer taxes and title insurance premiums for that portion of the owner’s leasehold title policy which would be incurred for a standard CLTA form of owner’s leasehold title insurance policy. JHC shall pay a minimum of one-half (1/2) of the escrow fee, all title insurance premiums associated with any title insurance coverage required by any lender, and all of that portion of the owner’s title policy premium which is attributable to the additional cost of ALTA extended coverage, if applicable, the cost of any survey of the Property requested by JHC and the cost of any title endorsements requested by JHC and the cost of any recording fees charged in connection with the transaction.
5. The AHA shall contain representations and warranties from Optionor and JHC to be agreed to by the Parties. Otherwise, the leasehold estate in the Property shall be acquired by the Partnership in its AS-IS, WHERE-IS and SUBJECT TO ALL FAULTS condition.
6. The AHA shall require the Partnership to constru ct and thereafter operate the Affordable Housing Project on the Property, pursuant to the terms of a regulatory agreement to be recorded against the Partnership’s leasehold estate.
7. The AHA shall contain such other terms and conditions as agreed to by the Parties. 254
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8. The leasehold estate shall be established through a ground lease, the form of which will be attached to the AHA (the “Lease”), which Lease shall contain the following terms:
a. The term of the Lease will be for ninety-nine (99) years if authorized by law unless a different term is required by the tax credit investor or any lender. b. The annual rent shall be $1.00.
c. The Lease shall be on a triple-net basis with tenant being responsible for all expenses of the Property.
d. The Lease will permit the Partnership to encumber the leasehold estate and will contain customary mortgagee protection provisions acceptable to the Partnership’s construction and permanent lender and tax credit investor. e. The Lease may not be terminable by the Optionor for any reason during the initial construction period and the tax credit compliance period. f. The Lease will contain the TCAC prescribed form of Ground Lease Rider, and any other rider required by a project lender.
g. The commencement date of the Lease shall mean and refer to th e date that the tax credit and construction financing for the proposed project closes. h. The Lease shall contain such other terms and conditions as agreed to by the Parties.
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EXHIBIT “C”
PROPOSED CONFIGURATION OF PROPERTY
256
CITY OF COSTA MESA
Agenda Report
77 Fair Drive
Costa Mesa, CA 92626
File #: 24-280 Meeting Date: 7/16/2024
TITLE:
APPROVE PROPOSED DESIGN IMPROVEMENTS FOR KETCHUM-LIBOLT PARK DEPARTMENT: PUBLIC WORKS DEPARTMENT/ADMINISTRATION
PRESENTED BY: RAJA SETHURAMAN, PUBLIC WORKS DIRECTOR
CONTACT INFORMATION: SEUNG YANG, P.E., CITY ENGINEER, (714) 754-5335 RECOMMENDATION:
Staff recommends the City Council approve the conceptual design plan, park theme, and park components for the proposed improvements at Ketchum-Libolt Park, 2150 Maple Street, Costa Mesa.
BACKGROUND:
The less than half-acre Ketchum-Libolt Park was constructed in August 2005 as a tribute to fallen Costa Mesa Police Officers James “Dave”Ketchum and John “Mike”Libolt whose lives were lost in a helicopter crash on March 10, 1987. Despite its small size, the current park includes a playground featuring elements for young children, a seating area and benches, turf, and a large concrete pad that is used by the City’s mobile recreation van.
The park is an integral part of the community in serving the nearby residents with recreational amenities. The proposed improvements will enhance the playground equipment, play area, landscaping, irrigation, lighting, and supporting facilities.
In 2023, the City contracted with Pat West, LLC, and City Fabrick to conduct several community outreach meetings for the Ketchum-Libolt Park expansion. Preliminary park design options and renderings were discussed with the City’sParks and Community Services (PACS) Commission on August 10, 2023.
On January 16, 2024, the City Council awarded Architerra Design Group (Architerra) as the consultant to provide design services for the Ketchum-Libolt Park expansion project.
ANALYSIS:
Architerra, based on input from prior community meetings, developed conceptual plans for the Ketchum-Libolt Park expansion. A community outreach meeting was held on May 8, 2024, at Ketchum-Libolt Park to review conceptual plans. Notices were sent out to neighboring residents in the surrounding area, and the meeting generated a significant turnout, as residents and community stakeholders shared their opinions and ideas on the conceptual plans. The City’s consultant, Architerra, and staff presented design boards with various options. Community members were
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Architerra, and staff presented design boards with various options. Community members were encouraged to provide their comments, as well as indicate their preference for various features using “dot”stickers. In addition, for those who could not attend the community outreach meeting, a City- sponsored online opinion survey was commissioned to obtain additional input.
Of the conceptual designs presented and based on the voting results and comments gathered during the outreach meeting, it was determined that the majority of the public selected the Coastal design option, which is shown as Attachment 1. The theme for the park was a near tie between “Whimsical” and “Police & First Responders.” The remaining park components and the community feedback generated are shown in Attachment 2.
Architerra and staff presented the conceptual park plan, park themes and park components to the Parks and Community Services (PACS) Commission on June 27, 2024, for review and recommendation for City Council approval. The PACS Commission passed a motion to recommend to the City Council to accept the Coastal design option with the “Police & First Responders” theme.
During the PACS Commission meeting, two members of the public (not residents of the local neighborhood or District 4) expressed concern about the lack of a restroom facility in the new design.
This concern was not shared by neighborhood residents living in closest proximity to the park. As such, the PACS Commission supported the staff recommendation, as presented, but suggested that Council may want to consider including a restroom, if feasible.
It is important to note that restroom facilities were not included in the scope of the project as the intent of the project was to maximize the use of open space to enhance recreational and open space opportunities for the neighborhood’s park patrons that do not currently have many open space opportunities. The total park area is somewhat small, approximately a third of an acre, and providing a restroom would reduce open park space and/or playground amenities. The inclusion of a restroom would also increase the scope of work, require additional funding and a re-design of the park to accommodate a restroom. This would result in a reduction of the park’samenities for residents already experiencing fewer park and open space options than other parts of the City.
The total estimated cost of the project as currently proposed in the conceptual layout is approximately $1.5 million. Providing a restroom will require a re-design at a cost of approximately $30,000 and additional construction cost of approximately $350,000. Additionally, during the public outreach meetings staff received feedback from neighborhood residents that did not support the installation of restroom facilities at this park.
Upon the approval of the design concept and theme by the City Council, staff will instruct Architerra to proceed with the final design plans, specifications, and cost estimates.
ALTERNATIVES:
The City Council may choose to provide suggestions to revise the proposed conceptual design plan or recommend staff to pursue a different design plan. Staff does not recommend this alternative as this would significantly delay this grant- funded project, as well as increase costs. This project is funded by a state earmark with reporting requirements with a deadline to expend all funds by January 31, 2026.
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File #: 24-280 Meeting Date: 7/16/2024
FISCAL REVIEW:
Funds for this project are available from the $1.2 million State budget (Fund 231) earmarked from state Assemblymember Cottie Petrie-Norris adopted in the Fiscal Year 2023-24 Capital Improvement Program (CIP) budget, and approximately $1.3 million from prior year adopted City budgets in Fiscal Year 2022-23 that include Park Development Fees Fund (Fund 208), Capital Improvement Fund (Fund 401), and Prop 68 Per Capita Grant.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this agenda report and approves it as to form.
CITY COUNCIL GOALS AND PRIORITIES:
This project works towards achieving the following City Council goals:
· Strengthen the Public’s Safety and Improve the Quality of Life. · Maintain and Enhance the City’s Infrastructure, Facilities, Equipment, and Technology.
CONCLUSION:
Staff recommends the City Council approve the conceptual design plan, park theme, and the park components for the proposed improvements at Ketchum-Libolt Park, 2150 Maple Street, Costa Mesa.
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ATTACHMENT 1
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KETCHUM-LIBOLT PARK RENDERING – COASTAL DESIGN OPTION
ATTACHMENT 1
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KETCHUM-LIBOLT PARK RENDERING – COASTAL DESIGN OPTION
ATTACHMENT 1
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Ketchum-Libolt Park Expansion
Community Outreach Meeting
Date & Time: 05/08/24 at 6:00 pm
Client Name: City of Costa Mesa
City Staff: Raja Sethurman, Irina Gurovich, Monique Villasenor, Robert Ryan, Angel Garcia, Brian Gruner
City Officials: Councilman Manuel Chavez, Parks Commissioner Terry Wall ADG: Gregg Denson, Kay Kite
Location: Ketchum Libolt Park, Costa Mesa
Boards showing proposed conceptual layouts & themin g were displayed on easels.
Boards for voting on theming, play components, and other park elements were displayed on tables behind the layout easels. Community membe rs were provided with 8 stickers to place on preferred options. Design personnel from ADG and City staff were prese nt to explain the process, go over the boards with attendees, and answer questions.
• Results of Community Voting:
o Park Layout Options (choose 1):
Option 1 (play area at corner) – 8 votes
Option 2 – (turf area at corner) 26 votes
o Theming (choose 1):
Whimsical or Other – 31 votes
Police & First Responders – 28 votes
Ocean & Beaches – 8 votes
Nature & Garden – 4 votes
o Play Components (choose 3):
Slides – 20 votes
Movement – 16 votes
Spinners – 15 votes
Swings – 13 votes
ATTACHMENT 2
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Net Play – 9 votes
Sensory Walls – 6 votes
Climbers – 4 votes
Crawlers & Tubes – 3 votes
o Additional Components (choose 3):
Butterfly Garden – 19 votes
Integrated Shade – 18 votes
Nature Play – 16 votes
Animals & Insects – 14 votes
Educational & Music – 9 votes
Integrated Slope Play – 7 votes
Whimsical Play – 5 votes
Art Activity Wall – 4 votes
ATTACHMENT 2
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ATTACHMENT 2
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• Additional feedback from residents.
o Residents on the adjacent street would like to see some sort of access from the adjacent cul-de-sac.
Only access is to go around the entire block.
Potential of adding a pedestrian gate for direct co nnection from Miner Street to Butterfly Garden.
o Kids running into the street is a large concern.
ATTACHMENT 2
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Make sure all access points have gates that are sel f-closing but still conform to ADA requirements for opening force.
o Concern with possible vehicle intrusion into park.
Intersection of Victoria & Maple has become a ‘stre et takeover’ location.
Reckless & impaired driving could result in errant cars entering the park.
Include boulders in streetscape area to help stop vehicles. o Concern with homeless persons living in play equipment & park amenities. Avoid tunnels & benches that allow for sleeping.
Avoid any dark corners while minimizing light spill onto adjacent properties.
Shade should be designed to limit shelter for camping. o Overall preference for Option 2 layout.
• Feedback from Public Safety personnel.
o Approve of removing wall to allow visibility into the park. Keep sight lines as clear as possible to limit hiding/camping places. o Concerned that theming of the park might not honor fallen officers. Make sure to include elements for police aerial force. o Like the activation of the north-east corner with sculpture garden/play walls from Option 1 but prefer layout of Option 2.
o Provide drinking fountain with Hydroflask/Bottle filler.
If you should have any questions or would like to a dd some additional items, please let me know.
Kay Kite PLA
Project Manager
Architerra Design Group
ATTACHMENT 2
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