R-25 Correspondence – Ann Cantrell
From: [email protected] [mailto:[email protected]]
Sent: Monday, January 31, 2022 3:12 PM
To: CityClerk <[email protected]>; Council District 1 <[email protected]>; Council District 2 <[email protected]>; Council District 3 <[email protected]>; Council District 4 <[email protected]>; Council District 5 <[email protected]>; Council District 6 <[email protected]>; Council District 7 <[email protected]>; Council District 8 <[email protected]>; Council District 9 <[email protected]>; Mayor <[email protected]>; Tom Modica <[email protected]> Subject: Comments on Item 25 Feb.3, 2022
-EXTERNAL-
To City Council and Mayor
From: Ann Cantrell
Re: Agenda Item 25
RECOMMENDATION: Adopt a Resolution authorizing the City to (i) approve the issuance of bonds by the California Community Housing Agency to finance the development of the Civic Center Mid-Block, and (ii) authorize the execution of all documents necessary to effectuate the issuance of the bonds and the development of the Civic Center Mid-Block as described below, including a Public Benefits Agreement with California Community Housing Agency. (District 1) DISCUSSION: The Mid-Block, located between the Civic and Library-Lincoln Park Blocks, contains the former City Hall building and grounds, and is the site of the proposed Project.
Previous efforts by Plenary to secure a developer have not been successful, though one such effort resulted in securing approved entitlements for the site that are the basis for the proposed Project. The approval allows the construction of two new eight-story buildings, the North and South Buildings, which will contain 290 dwelling units each, for a total of 580 dwelling units.
The buildings also will contain ground-floor space for retail and restaurant tenants, with 9,750 square feet in the North Building, and 25,650 square feet in the South Building. Each building will have a two-level subterranean parking structure, combined with a smaller at-grade parking garage, and one second-story parking garage for the North Building. Across the Project site, parking will total 885 stalls.
The Project is required by the Mid-Block Site Conveyance Agreement Between the City and Plenary (Agreement) to include 10 percent of the total number of dwelling units (58 out of 580) as affordable housing units at the Moderate Income (80 percent-120 percent Area Median Income) level.
FISCAL IMPACT: The Project sponsor is providing funding for staffing and consultant costs associated with this transaction. The residential project will be off the tax rolls once construction is complete, but a host fee is required, and the loss of City property tax is expected to be fully offset for the City by this fee. The Developer has agreed to fully abide by the draft policy on middle-income units proposed by City staff in its report to the City Council on January 18, 2022, which will help in avoiding fiscal impacts.
THE CITY USES THE TERMS MODERATE AND MIDDLE-INCOME
INTERCHANGEABLY, HOWEVER,
The following table shows the technical definitions for classifying a census tract or borrower as low, moderate, middle, or upper income:
Table 1: CRA Definition of Tract Income
Descriptor Percentage of Relevant Area’s Median Family Income Low
<50
Moderate
50 to <80
Middle
80 to <120
Upper ≥120
THE JANUARY 18, 2022 POLICY USES MIDDLE (80 TO 120), WHILE THE ORIGINAL AGREEMENT WAS MODERATE (50 TO 80). THIS PROJECT WILL HAVE NO LOW COST, OR EVEN AFFORDABLE HOUSING. 58
UNITS FOR MIDDLE AND THE REST FOR UPPER.
There is no mention of what happens if this project fails and the public is left holding the bag for the bonds, like the Queen Mary and Community Hospital.
I urge you not to put the city in debt to provide more luxury housing with inadequate parking on what was once public park land.
Sincerely,
Ann Cantrell