RESOLUTION NO. 2021-40
A JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GONZALES
AND GONZALES SUCCESSOR HOUSING AGENCY APPROVING AND
AUTHORIZING THE CITY MANAGER AND EXECUTIVE DIRECTOR
RENE L. MENDEZ TO MOVE FORWARD WITH THE PROCESS TO PURCHASE PROPERTY LOCATED AT 498 S. ALTA STREET, GONZALES, CA (APN 020-041-016) WHEREAS, the City of Gonzales General Plan and Housing Element identifies the need for additional housing of all types; and
WHEREAS, the Housing Element listed housing for seniors as one of the types of housing needed; and
WHEREAS, the City Council has consistently provided direction to staff to actively look for and pursue the development of housing opportunities; and WHEREAS, APN 020-041-016, located at 498 S. Alta Street, is within the City of Gonzales and is adjacent to multi-family housing; and
WHEREAS, the market value of the property came back at $440,000 pursuant to an appraisal dated May 26, 2021; and
WHEREAS, the current owners of APN 020-041-016 are willing to sell the property to the City of Gonzales for a negotiated price of $600,000, which is higher than the appraised value, but the City finds the purchase price justifiable and appropriate pursuant to the benefits findings below; and
WHEREAS, funding for the acquisitions will come from the Gonzales Successor Agency – Housing and Community Development Housing Funds; and WHEREAS, the City plans to partner with a non-profit housing developer to develop a senior housing project; and
WHEREAS, the City Council has determined that the property at APN 020-041-016 is needed for the development of much needed senior housing.
NOW THEREFORE BE IT HEREBY RESOLVED, by the City Council of the City of Gonzales and the Board of Directors of the Gonzales Successor Housing Agency that the purchase of the property at APN 020-041-016 is fully consistent with the approved City General Plan and Housing Element; and
BE IT FURTHER RESOLVED that the purchase price of $600,000, which is more than the appraised value of $440,000, will provide the City with significant benefits and therefore is appropriate and necessary pursuant to the following findings:
1. The City is currently experiencing a severe shortage of housing of all types and for all income ranges, including affordable Senior Housing;
2. There has not been a multi-family housing project built since 2008 and no single-family housing projects since 2006;
3. The City currently only has one 20-unit senior complex, on C Street;
4. As identified in the adopted 2015-2023 Housing Element the City:
a) Has a much lower percentage of multifamily housing (19% of the total housing stock) when compared to the County of Monterey County (26% of total housing stock). This disparity widens even more when compared to the State. (Page IV-9) b) Maintains the lowest vacancy rate in Monterey County ranging from 1.7% to 4.2% over a period of 14 years (2000 – 2014), which is an indication of a tight housing market with few choices and high rents. (Page IV-14)
c) Has a significant overcrowding issue. 20% of all occupied dwelling units in Gonzales are estimated to be overcrowded, which is significantly higher than Monterey County and the State (12% and 8% respectively). This overcrowding is more pronounced in renter-occupied households at 30% when compared to owneroccupied households at 13%. (Page IV-15) d) Residents living in multi-family housing, characterized as low-income or extremely low-income suffer from a housing cost burden. In fact, nearly all (95%) spent more than 50% of their income toward housing cost (defined as a severe housing cost burden). (Pages IV 21-22)
e) The elderly, who comprise 6% of the City’s population when compared to the County’s 11%, are a special needs population that requires close access to public services such the post office, banks, city offices, etc., Unfortunately while the older portion of town (around downtown) does present these resources, this part of town is fully developed and opportunities for additional housing are severely limited at best, or non-existent. In addition, a portion of seniors are low income further restricting their ability to acquire housing in the few instances that it become available. (Pages IV 23-24)
f) Has reached full buildout within the existing City with the exception of a few parcels, which includes the property located at 498 S. Alta Street, Gonzales CA (APN 020-041-016).
g) Finally, acquisition of this property for Senior Housing would help further the goal to provide this type of housing.
BE IT FURTHER RESOLVED that the acquisition of this property for Senior Housing, is very consistent not only with the City’s Housing Element, but also 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
BE IT FURTHER RESOLVED that 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; and BE IT FURTHER RESOLVED that Pursuant to CEQA Guidelines Section 15378, mere acquisition of the 498 S. Alta Street Property (APN 020-041-016) is not a “project’ for purposes of California Environmental Quality Act (“CEQA”) analysis, and that even if the acquisition was deemed a project, it would be exempt from CEQA pursuant to Guidelines Section 15061(b)(3) since it can be seen with certainty that the acquisition itself creates and/or involves no possibility of a significant effect on the environment; and BE IT FURTHER RESOLVED that the City Council hereby authorizes City Manager Rene L. Mendez to purchase APN 020-041-016 for the sum of $600,000, retain a California licensed Real Estate Broker via the City Standard Agreement to represent the City of Gonzales in the Purchase and Acquisition of the property and prepare the property purchase agreement, and execute said agreement on behalf of the City of Gonzales upon final approval of form and content by the City Attorney; and
BE IT FURTHER RESOLVED that the City Council authorizes the use of the Community Development and Gonzales Successor Agency Housing funds to acquire the property; and
BE IT FURTHER RESOLVED that the City Council directs City Manager Rene L.
Mendez to develop an agreement with a non-profit housing developer for the development of Senior Housing Project on APN 020-041-016 and to bring said agreement back to the City/agency for consideration and approval.
PASSED AND ADOPTED by the City Council of the City of Gonzales and the Gonzales Successor Housing Agency at a regular meeting duly held on the 18th day of October 2021 by the following vote:
AYES: COUNCIL/BOARD MEMBERS: Mayor Pro Tem/Vice Chair Scott Funk, Liz Silva, Lorraine Worthy, Paul Miller, and
Mayor/Chair Jose L. Rios
NOES: COUNCIL/BOARD MEMBERS: None
ABSTAIN: COUNCIL/BOARD MEMBERS: None
ABSENT: COUNCIL/BOARD MEMBERS: None
Jose L. Rios, The Honorable Mayor/Chair
ATTEST:
Rene L. Mendez, City Manager/Executive Director