City of Gonzales
COMMUNITY DEVELOPMENT DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: August 15, 2022
FROM: Taven Kinison Brown, Community Development Director THROUGH: Carmen Gil, Interim City Manager
SUBJECT: Resolution No. 2022-58 Approving and Authorizing an Agreement Between Community Housing Improvement Systems and Planning Association, Inc. (CHISPA), and the City of Gonzales for Purchase and Sale of Real Property and Escrow Instructions for the Property Located at 498 S. Alta Street, Gonzales, Ca.
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2022-58, A Resolution of the City of Gonzales, approving and authorizing an Agreement Between Community Housing Improvement Systems and Planning Association, Inc. (CHISPA), and the City of Gonzales for Purchase and Sale of Real Property and Escrow Instructions for the property located at 498 S. Alta Street, Gonzales, Ca. (APN 020- 041-016).
BACKGROUND
On October 18, 2021 in Resolution 2021-40, the City Council of the City of Gonzales and Gonzales Successor Housing Agency approved and authorized the City Manager and Executive Director to move forward with the process to purchase property located at 498 S. Alta Street, Gonzales, CA (APN 020-041- 016). See the attached Resolution 2021-40 for additional background.
AGENDA
ITEM
19 Aerial View of 498 S. Alta Street Street Views of 498 S. Alta Street
REVIEW & ANALYSIS
The Agreement in the attached new resolution includes recitals for the purchase of the property by CHISPA and the terms and conditions for two development scenarios.
Option One: This scenario for development is dependent on additional federal funding to CHISPA, and is called the LIHTC Project, which would include 36 multifamily units with a target of 40% Senior Households (14 units).
Option Two: The second scenario would be the development of 15 single family homes, the SFH Project, of which 40 percent would be rented to Senior Households (6 units). The Agreement packet includes:
• The Resolution 2022-58 inclusive of:
o The Agreement for purchase and sale of real property, and ▪ Exhibit A – Legal Description
▪ Exhibit B – Grant Deed
▪ Exhibit C – Hazardous Materials (Definition)
▪ Exhibit D – Promissory Note
▪ Exhibit E – Deed of Trust
▪ Exhibit F1–Declaration (LIHTC Project) (36 multifamily unit option) ▪ Exhibit F2 – Declaration (SFH Project) (15 single family homes) How the Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: the acquisition of this property for Senior Housing, is consistent not only with the City’s Housing Element, but many of the policies in the General Plan which include, but are not limited to:
a) Encouraging infill housing development where feasible b) Maintaining and enhancing existing neighborhoods
c) Encouraging rental housing
Furthermore, in addition to meeting the City goal for additional rental housing, development of APN 020-041-016 for Senior Housing would help address recent State mandates recognizing the pressing need for the housing and emphasizing the need and responsibility of all cities to take action to meet housing demands.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment, and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: The City of Gonzales directly exercised its leadership and financial resources to facilitate the purchase, acquisition, and transfer of this property for the purposes of constructing senior housing in the City, a much needed local commodity needed to allow seniors to live affordably and remain in the community, thereby enhancing their quality of life and their families’ too.
City services will be delivered in a cost-effective, respectful, and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety Yes No X N/A
• Housing X Yes No N/A
• Recreation Yes No X N/A
• Environment Yes No X N/A
• Education Yes No X N/A
Explain: See Vision explanation above.
ALTERNATIVES
Amend or modify staff recommendation.
BUDGET IMPACT
Drawing from a recital in the earlier City Council Resolution 2021- 40, this Agreement will be funded from the Gonzales Successor Agency – Housing and Community Development Housing Funds.
CONCLUSION
Staff recommends that the City Council adopt Resolution No. 2022-58, A Resolution of the City of Gonzales, approving and authorizing an Agreement Between Community Housing Improvement Systems and Planning Association, Inc. (CHISPA), and the City of Gonzales for Purchase and Sale of Real Property and Escrow Instructions for the property located at 498 S. Alta Street, Gonzales, Ca. (APN 020- 041-016).
Attachments:
1. Resolution No. 2021-40 JOINT CC & SHA Purchasing 498 Alta St Property
2. Resolution No. 2022-58 w/ Agreement