NOVEMBER 19, 2024
MOTEL 6
–
MESA VISTA
APARTMENTS
TEFRA HEARING
CITY COUNCIL MEETING
2 BACKGROUND
November 2021 – November 2022
City Council approved an award of $5.85M to Community Development Partners (CDP) to convert the Motel 6 (now known as the Mesa Vista Apartments), into 86 units of permanent housing:
• Phase 1 – 40 units of permanent supportive housing for veterans and others experiencing homelessness
• Phase 2 – 46 units of permanent affordable housing for Costa Mesa seniors earning at or below 50% AMI ($55,250/yr)
April 2022
CDP awarded $10,675,000 in State of California Homekey Program funds to acquire and rehab the project
August 2024
CDP awarded $23M in State Tax Credits to complete Phase 2 3 TAX EQUITY & FISCAL RESPONSIBILITY
ACT (TEFRA)
• This TEFRA Hearing provides members of the community an opportunity to comment regarding the use of tax-exempt bonds for the financing of the project.
• The developer has requested that the California Statewide Communities Development Authority (CSCDA) act as the municipal issuer of tax-exempt multi-family housing revenue bonds of up to $25M.
• CSCDA is a joint powers authority created by the League of California Cities in 1988 to allow local government and eligible private entities to access low- cost, tax-exempt financing for housing projects that provide a public benefit. • The Council’s adoption of the TEFRA Resolution satisfies the requirements of TEFRA and the IRS/Government Code, thus approving the issuance of the bonds by CDCSA to the developer to complete the project. 4 RECOMMENDATIONS
1. Conduct a Tax Equity and Fiscal Responsibility Act Hearing, as required by Section 147(f) of the Internal Revenue Code of 1986 to receive comments in consideration of the issuance of tax-exempt bond financing by the California Statewide Communities Development Authority for the benefit of Costa Mesa M6 LP, to provide financing for the acquisition, construction, improvement, and equipping of an 87-unit multifamily rental housing project generally known as Mesa Vista Apartments.
2. Adopt a resolution approving the issuance of Bonds by the California Statewide Communities Development Authority not to exceed $25,000,000, for the benefit of Costa Mesa M6 LP, to provide financing for the acquisition, construction, improvement, and equipping of an 87-unit multifamily rental housing project generally known as Mesa Vista Apartments.
QUESTIONS?
City Council Meeting
November 19, 2024
DEVELOPMENT IMPACT FEES &
TRAFFIC IMPACT FEE
ANALYSIS
2 OVERVIEW
• Development Impact Fees Annual Report
• Traffic Impact Fee Analysis
DEVELOPMENT IMPACT FEES
ANNUAL REPORT
4 4
• California Government Code 66006 specifies that local agencies must prepare annual reports of Development Impact Fees (DIF) within 180 days of the close of the fiscal year.
• The report must describe the fee, the amount of fees collected, interest earned if any, and identifications of any expenditures from those funds.
• California Government Code 66006 also specifies that the report must be reviewed the by agency’s legislative body at a regularly scheduled meeting not less than 15 days following release to the public. The DIF was noticed to the public on November 4, 2024.
State Requirements
5 Types of Development Impact Fees
• Park Development Impact Fees – Developer fees that provide funding for additional or improved park and/or recreational improvements.
• Drainage Impact Fees – Developer fees that provide funding for the additional construction and maintenance of the City drainage system.
• Traffic Impact Fees – Developer fees that provide funding for additional or improved traffic signal, operation, and infrastructure improvements.
• Fire System Development Fees – Developer fees that provide funding for additional fire protection facilities, equipment and paramedic support.
• Cannabis Traffic Impact Fees – Developer fees that provide funding for additional or improved traffic signal, operation, and infrastructure improvements.
Statement of Revenues, Expenditures
and Changes in Fund Balance as of
June 30, 2024*
Description
Park
Development
Fees
Drainage
Fees
Traffic Impact
Fees
Fire System
Development
Fees
Cannabis
Traffic Impact
Fees
Beginning
Fund Balance 2,872,722 2,174,951 5,840,901 639,122 435,436 Revenue
Total 254,234 176,323 247,358 15,059 112,660
Expense Total
(787,431) (183,061) (1,490,325) - -
Ending Fund
Balance 2,339,525 2,168,213 4,597,934 654,181 548,096
* Preliminary unaudited FY 2023-24 financial results
TRAFFIC IMPACT FEE (TIF)
ANNUAL REVIEW
8 •Ad Hoc Committee met on October 29, 2024
•TIF Analysis included:
o TIF range between $176 and $476 per ADT
o Recently Completed Projects
o Consideration of Active Transportation Projects
o Traffic Signal Synchronization Projects
o TIF Fund Balance
•Revised calculation of $228 per ADT based on revised list of CIP projects and inclusion of Active Transportation projects.
TIF AD HOC COMMITTEE REVIEW
9 $ 5,840,901•Beginning fund balance July 1, 2023 -
Revenues -
Expenditures -
•Fund Balance as of June 30, 2024 -
$ 247,358
$ (1,490,325)
$ 4,597,934
•Capital Projects Current and five-year CIP - $ 4,898,160
TRAFFIC IMPACT FEE FUND BALANCE
as of June 30, 2024*ne 30, 2024*
9*Preliminary unaudited FY 2023-24 financial results
10 •Adopt proposed resolution which includes:
o Adopt a traffic impact fee of $228 per ADT with the inclusion of Active Transportation projects;
o Continue allocation of up to 10% of traffic impact fees towards traffic signal synchronization projects;
o Continue 5% reduction in automobile trips as result of ATP implementation and additional 5% reduction in automobile trips for developments proposing to implement active transportation improvements beyond typical development requirements.
TIF AD HOC COMMITTEE
RECOMMENDATION
11 Questions?
Lieutenant Stephanie Selinske
RESIDENTIAL BEEKEEPING
ORDINANCE
City Council Meeting
November 19, 2024
2 Beekeeping Ordinance
HISTORY
• Animal Services Ad Hoc Committee completed draft ordinance, 2023. • Ad Hoc report and draft filed with City Council.
• Recent public outreach expressed desire for residential beekeeping. • First Reading on October 1, 2024, resulted in several amendments and changes. • Based upon these changes a new first reading is required.
INTENT
Authorize residential beekeeping subject to certain requirements intended to avoid problems that may otherwise be associated with beekeeping in populated areas. 3 Beekeeping Ordinance Permits
Permit Requirements:
• Written notification to abutting neighbors by City staff. • Neighbors have 30 days to respond.
• Special consideration for neighbor with severe allergy to sting of bees Ordinance changes:
• No fee or renewal fee
• No signage
• No required training
• Grandfathering period (90 days)
Staff will evaluate permit to ensure safety and free use of a neighboring properties. 4 • Beehives may only be placed on residential properties that allow for adequate spacing from neighboring residences so as not to interfere with the free use of neighboring property.
• Beehive locations shall be secured from unauthorized access and not visible from the public right of way.
• Beehives should be located at least 15 feet from any property line and 25 feet from neighboring residential buildings
• Beehives unable to meet the above distance requirements require a 6-foot solid barrier (fence, wall, or dense vegetation) be installed to direct bee flight paths upwards and away from neighboring properties.
Property and Hive Requirements:
5 • A maximum of two (2) beehives will be placed on a single residential property. • All bees shall be kept in hive boxes with frames that can be removed for inspection and equipment shall be kept in sound and usable condition. • A water source for bees shall be provided at all times on the property where bees are kept to discourage bee visitation at swimming pools, hose bibs and other water sources on adjacent properties.
Property and Hive Requirements:
6 • Any resident considering taking up beekeeping should first educate themselves on basic principles and guidelines.
• A basic understanding of honeybee biology, foraging habits, and hive management is essential.
• Resources available: Beekeepers Association of Southern CA (bascbees.org); The Orange County Beekeepers Association (ocbeekeepers.org) OC Backyard Bees (backyardbees.net); and Scientificbeekeeping.com American Beekeeping Federation (abfnet.org) American Bee Journal (americanbeejournal.com)
Costa Mesa Residential Beekeeping
Best Management Practices
7 Permit Application and Site Plan
8 Recommendation:
Staff recommends that the City Council introduce for first reading the attached Ordinance No. 2024-XX amending Title 3 (Animal Regulations) of the Costa Mesa Municipal Code by amending Chapter I (In General) and Chapter VI (Special Animal Permit) to allow for the lawful keeping of bees and/or hives within city and to clarify appeal procedures for special animal permits.
Questions?
2024-2025 CITYWIDE PARKWAY
MAINTENANCE, STREET REHABILITATION,
AND SLURRY SEAL PROJECT
CITY COUNCIL MEETING
NOVEMBER 19, 2024
2 PROJECT OVERVIEW
• Bid Amount: $9,163,000
• Scope of Work:
• Phase 1: Parkway Maintenance – Localized repair of damaged curb and gutters and sidewalks to conform to ADA standards, and installation of 2,900 sf of new sidewalks. • Phase 2: Street Rehabilitation – Removal and reconstruction of damaged street pavement. • Phase 3: Slurry Seal – Application of Type II slurry seal pavement coating. • Project Includes bicycle improvements and 8 locations of pedestrian improvements. • Court resurfacing improvements at Balearic Park.
PROJECT FUNDING SUMMARY
• Contract Amount: $9,163,000
• Contingency Amount: $916,300
• Funding:
• Gas Tax: $5,476,000
• Measure M2 Fairshare Fund: $2,037,000
• Capital Improvement Fund: $1,550,000
• Capital Improvement Fund for Balearic Community Center Asphalt Surfacing Project: $100,000
4 EXISTING CONDITIONS
Parkway
Roadway
5 LOCATION MAP
6 BICYCLE & PEDESTRIAN IMPROVEMENTS
ALONG MENDOZA DRIVE
7 PEDESTRIAN IMPROVEMENTS
NEW CROSSWALK MARKINGS AT
SANTA ANA AVE. & OGLE ST.
NEW CROSSWALK MARKINGS AT
JOANN ST. & MEYER PLACE
NEW CROSSWALK MARKINGS AT TOWN CENTER DRIVE
NEW CROSSWALK MARKINGS AT
18TH ST. & WALLACE AVE
8 BALEARIC PARK COURT RESURFACING
9 RECOMMENDATIONS
• Make a finding of California Environmental Quality Act (CEQA) categorical exemption.
• Adopt plans, specifications, and working details for the 2024-2025 Citywide Parkway Maintenance, Street Rehabilitation, and Slurry Seal Project, City Project No. 24-03.
• Award a Public Works Agreement (PWA) for construction to Onyx Paving Company, Inc. in the amount of $9,163,000.
• Authorize the City Manager and City Clerk to execute the PWA with Onyx Paving Company, Inc.
• Authorize an additional ten percent (10%) contingency, in the amount of $916,300.
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QUESTIONS?
11 ADDITIONAL LOCATION MAPS
(IF NEEDED)
12 LOCATION MAPS
13 LOCATION MAPS
14 LOCATION MAPS
15 LOCATION MAPS
16 LOCATION MAPS
17 LOCATION MAPS
18 LOCATION MAPS
November 19, 2024
ACQUISITION OF 778 SHALIMAR DRIVE FOR
EVALUATION OF COMMUNITY SERVING USES
2 Background
• The residential real property (Property) located at 778 Shalimar Drive was listed for sale on May 23, 2024, at a listing price of $1,850,000. • In June 2024:
• City staff identified the potential land acquisition of the property for community serving public uses.
• The City’s Real Estate consultant, acting on behalf of the City as its broker, contacted the seller to express the City’s interest in the property. • The property owner was amenable to negotiating with the City and has been in subsequent discussions for the potential acquisition of the property.
• City staff conducted an initial site visit of the property and visited three (3) tenant-occupied units.
3 Background continued
• In July 2024, the City Council authorized a letter of interest to be submitted to the seller to begin negotiations.
• On August 6, 2024, the City Council at its Closed Session authorized Staff to negotiate the property's Price and Terms of Payment. • Based on the negotiations, the City Attorney & Real Estate Consultant prepared a draft Real Property Purchase Agreement.
• On November 12, 2024, the Planning Commission adopted Resolution PC 2024-26, finding that the proposed acquisition of the property is in conformance with the City of Costa Mesa General Plan and is not subject to the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061 (b)(3).
4 Property Facts
Property Details Description
Location 778 Shalimar Drive
Adjacent to Shalimar Park
Year Built 1961
Property Type Multi-Family Property
Size
Lot: 6,970 S.F.
Building: 3,390 S.F.
Number of units: 4
Occupancy Three occupied units and one vacant unit
Number of tenants – 19 total
Shalimar Drive
Placentia Avenue
5 Existing Property Conditions
778 Shalimar Drive
6 Existing Property Conditions
778 Shalimar Drive
7 Real Property Purchase Agreement
• The proposed Real Property Purchase Agreement, includes the following key operative provisions:
• The total purchase price for the property at $1,725,000; • The City shall deposit $100,000 for escrow within 30 days of approval of the Real Property Purchase Agreement;
• Escrow shall be open for a period of 180 days following the execution of the Real Property Purchase Agreement to allow for tenant relocation. • Environmental assessment of any hazardous conditions of the property including lead, asbestos, and soil contamination.
8 Property’s
Potential Uses
• City staff will evaluate the property
for the following community-
serving uses:
• Expansion of Shalimar Park
• Creation of a community center
• Enhanced affordable housing
• Other possible community uses
9 Tenant Relocation Plan Preparation & Process
• The City entered into a Professional Service Agreement with Monument Inc. to assist the City with the Relocation Plan Preparation and Process in connection with the tenants at 778 Shalimar Dr.
• Altogether, the duration of the relocation preparation and process is anticipated to be six months, coinciding with the six-month escrow period.
Relocation Plan Preparation Relocation Process
• Interview occupants of impacted units.
• Research the rental market for available replacement
locations.
• Prepare a Relocation Plan
• Undergo a 30-Day Public Plan Review for
comments
• Present draft Relocation Plan to the City Council
for review & approval
• Meet with all tenants to present their relocation benefits • Inform them of available services and benefits
• Determine eligibility amounts for placement of
tenants into comparable units
• Assist tenants in locating replacement sites and
provide written referrals.
• Provide on-going advisory assistance to tenants.
• Coordinate and conduct an inspection of the
replacement site.
• Monitor the move to the replacement site.
• Prepare all benefit claim forms and submit to the City for processing and payment.
10 Property Acquisition & Relocation Timeline
11 Recommendations
Staff recommends the City Council:
1. Determine the acquisition of the property is exempt from analysis under the California Environmental Quality Act (CEQA).
2. Approve the acquisition of real property located at 778 Shalimar Drive, Costa Mesa, CA 92627 for evaluation of use as expansion of Shalimar Park and other possible uses.
3. Authorize the release of all contingency items related to the Real Estate Purchase Agreement, including appraisal and inspections.
4. Authorize a budget appropriation in the amount of $1.5 million from General Fund FY 2023-2024 fiscal year-end savings, if available, and unassigned fund balance for the acquisition of 778 Shalimar Drive, Costa Mesa, CA 92627.
5. Authorize the City Manager and City Clerk to execute all real estate purchase documents, disclosures, escrow paperwork and future authorized changes and amendments necessary.
Questions?
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