2022 Local Agency Biennial Notice
Name of Agency:
Mailing Address:
Contact Person: Phone No.
Email: Alternate Email:
Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. The biennial review examines current programs to ensure that the agency’s code includes disclosure by those agency officials who make or participate in making governmental decisions.
This agency has reviewed its conflict of interest code and has determined that (check one BOX):
q An amendment is required. The following amendments are necessary:
(Check all that apply.)
¡ Include new positions
¡ Revise disclosure categories
¡ Revise the titles of existing positions
¡ Delete titles of positions that have been abolished and/or positions that no longer make or participate in making governmental decisions
¡ Other (describe)
q The code is currently under review by the code reviewing body. q No amendment is required. (If your code is over five years old, amendments may be necessary.)
Verification (to be completed if no amendment is required) This agency’s code accurately designates all positions that make or participate in the making of governmental decisions. The disclosure assigned to those positions accurately requires that all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions are reported. The code includes all other provisions required by Government Code Section 87302.
__________________________________________ _________________________ Signature of Chief Executive Officer Date
All agencies must complete and return this notice regardless of how recently your code was approved or amended. Please return this notice no later than October 3, 2022, or by the date specified by your agency, if earlier, to:
PLEASE DO NOT RETURN THIS FORM TO THE FPPC.
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Agenda Item
City Council
Item #: 6.1. 9/13/2022 File #: 22-0447
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Leslie Hardy, Community Services Director
1. SUBJECT
Grijalva Park Master Plan Update.
2. SUMMARY
An update regarding the status of the Grijalva Park Master Plan to include current status updates from the various community groups.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community a: Renovate, maintain, develop, and/or expand public use places and spaces. b: Deliver high quality and safe recreational, social, environmental, educational, and cultural services.
6. DISCUSSION AND BACKGROUND
Introduction
The City owns 42 acres of land known as Grijalva Park at Santiago Creek. The land is located in the northwest corner of the intersection of Prospect Street and Spring Street with the Santiago Creek forming the western edge of the property. The first 15 acres were developed into a park with lighted soccer fields in 2002. A conceptual Master Plan was finalized in 2005 for the western 27 acres, commonly referred to as the “Grijalva Park Extension.” This includes 10 acres of undevelopable property in the creek. The Sports Center at Grijalva Park, home to a gymnasium, dance and exercise room, and classroom opened in 2011, with the development of eight acres. The remaining nine acres of the extension property is undeveloped.
Development of the property must consider these factors:
· Former Union Pacific Railroad landfill post-closure monitoring & maintenance plan · The Kinder Morgan Pipeline, which runs through the north section of the property and along City of Orange Printed on 9/8/2022Page 1 of 3
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the current access road
· Residential housing west of the creek and adjacent to the northeast portion of the property · Ability to provide adequate parking and circulation
2005 Grijalva Park at Santiago Creek Master Plan
Through a public input process and reference to the City’s1999 Master Plan For Park Facilities, Recreation and Community Services (1999 Master Plan), the 2005 Grijalva Park at Santiago Creek extension property Master Plan was created (Attachment 1). At the time of the 2005 Master Plan, the City had a population of almost 135,000 with no indoor recreational athletic facility. The 1999 Master Plan identified a gymnasium as the third highest priority for the community, right behind practice and lighted sports fields. A community center was the fourth highest priority. In addition, the 1999 Master Plan identifies that the city has a deficit of swimming pools, skate parks, picnic tables and tot lots.
Based on input and priorities, the following features were included in the 2005 Master Plan:
· 25,200 square foot gymnasium and sports center
· 47,300 square foot aquatic center
· 10,800 square foot community center
· 10,000 square foot skate park
· Tot lot
· Group picnic area
· Outdoor amphitheater
· Standalone restroom to support outdoor active elements on the southwest portion of the park Construction of Phase I of the plan was completed in 2011 and included:
· Capping the former landfill and stabilizing the adjacent Santiago Creek slopes · Mass grading of the entire extension property and bringing utilities to the site · Construction of the sports center
· Access and internal circulation
· Construction of the southern parking lot to support the sports center · Landscaping to support the sports center
Any further development of the Grijalva Park Extension has been on hold pending available funding for both development and operations of additional park amenities.
Updated Grijalva Park Master Plan
In 2018/early 2019, the City received formal requests from four community groups interested in exploring partnerships for the undeveloped property. Marc Conner, owner of the local skate shop Contenders Boardshop on Tustin Street, asked to raise money to build the skate park. Additionally, Greater Orange Community Arts Theater (GOCAT) sent a letter to City Council asking to investigate the possibility of building and operating a community arts theater at Grijalva Park. The City Council City of Orange Printed on 9/8/2022Page 2 of 3
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the possibility of building and operating a community arts theater at Grijalva Park. The City Council received a letter from Orange Regional Competitive Aquatics (ORCA), a current city partner in providing swim lessons at local high school pools, requesting to explore a joint partnership to build and operate a community pool at Grijalva Park. Additionally, the City Manager received a letter of request from the Orange Public Library Board of Trustees, expressing interest in exploring opportunities for a library facility. In addition to these four requests, there has been community discussion of potentially utilizing the property for a senior center, as Orange Elderly Services continues its efforts of long-term strategic planning.
In an effort to evaluate these requests, staff engaged the services of MIG Landscape Architects (MIG), formerly Purkiss-Rose-RSI who created the 2005 Master Plan, to help evaluate options. MIG presented staff with a potential updated Master Plan (Attachment 2). The City Council reviewed the status of the Master Plan and in February 2019, issued support letters to Contenders Boardshop, the GOCAT Foundation, Orange Public Library Foundation, and ORCA to raise funds to build their respective facilities.
In 2020, ORCA notified the City that it no longer is pursing fundraising efforts to build an aquatics center at Grijalva Park. This change presented the City with the opportunity to re-evaluate the updated 2019 plan to maximize use of the property which includes reconfiguring the placement of the Library/Senior Center to provide better connectivity to the existing Sports Center and relocate the skate park to the aquatic center site. Staff engaged MIG again in 2022 and the consultant provided another option for the Grijalva Park Master Plan (Attachment 3).
Considerations and Fiscal Impact
Development of the site should consider the factors previously discussed. In addition, planning for the site should consider existing programing at the site, which currently includes field and facility rentals, open gym, special events, and general park use. Future fiscal impacts for both development of facilities and associated amenities (utilities, parking, hardscape, landscape, etc.), as well as operations and maintenance will be determined based on City Council input and direction.
7. ATTACHMENTS
· Attachment 1- 2005 Grijalva Park at Santiago Creek Site Plan · Attachment 2- 2019 Grijalva Park Master Plan Update
· Attachment 3- 2022 Grijalva Park Master Plan Update
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Agenda Item
City Council
Item #: 6.1. 9/13/2022 File #: 22-0447
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Leslie Hardy, Community Services Director
1. SUBJECT
Grijalva Park Master Plan Update.
2. SUMMARY
An update regarding the status of the Grijalva Park Master Plan to include current status updates from the various community groups.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community a: Renovate, maintain, develop, and/or expand public use places and spaces. b: Deliver high quality and safe recreational, social, environmental, educational, and cultural services.
6. DISCUSSION AND BACKGROUND
Introduction
The City owns 42 acres of land known as Grijalva Park at Santiago Creek. The land is located in the northwest corner of the intersection of Prospect Street and Spring Street with the Santiago Creek forming the western edge of the property. The first 15 acres were developed into a park with lighted soccer fields in 2002. A conceptual Master Plan was finalized in 2005 for the western 27 acres, commonly referred to as the “Grijalva Park Extension.” This includes 10 acres of undevelopable property in the creek. The Sports Center at Grijalva Park, home to a gymnasium, dance and exercise room, and classroom opened in 2011, with the development of eight acres. The remaining nine acres of the extension property is undeveloped.
Development of the property must consider these factors:
· Former Union Pacific Railroad landfill post-closure monitoring & maintenance plan · The Kinder Morgan Pipeline, which runs through the north section of the property and along City of Orange Printed on 9/8/2022Page 1 of 3
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the current access road
· Residential housing west of the creek and adjacent to the northeast portion of the property · Ability to provide adequate parking and circulation
2005 Grijalva Park at Santiago Creek Master Plan
Through a public input process and reference to the City’s1999 Master Plan For Park Facilities, Recreation and Community Services (1999 Master Plan), the 2005 Grijalva Park at Santiago Creek extension property Master Plan was created (Attachment 1). At the time of the 2005 Master Plan, the City had a population of almost 135,000 with no indoor recreational athletic facility. The 1999 Master Plan identified a gymnasium as the third highest priority for the community, right behind practice and lighted sports fields. A community center was the fourth highest priority. In addition, the 1999 Master Plan identifies that the city has a deficit of swimming pools, skate parks, picnic tables and tot lots.
Based on input and priorities, the following features were included in the 2005 Master Plan:
· 25,200 square foot gymnasium and sports center
· 47,300 square foot aquatic center
· 10,800 square foot community center
· 10,000 square foot skate park
· Tot lot
· Group picnic area
· Outdoor amphitheater
· Standalone restroom to support outdoor active elements on the southwest portion of the park Construction of Phase I of the plan was completed in 2011 and included:
· Capping the former landfill and stabilizing the adjacent Santiago Creek slopes · Mass grading of the entire extension property and bringing utilities to the site · Construction of the sports center
· Access and internal circulation
· Construction of the southern parking lot to support the sports center · Landscaping to support the sports center
Any further development of the Grijalva Park Extension has been on hold pending available funding for both development and operations of additional park amenities.
Updated Grijalva Park Master Plan
In 2018/early 2019, the City received formal requests from four community groups interested in exploring partnerships for the undeveloped property. Marc Conner, owner of the local skate shop Contenders Boardshop on Tustin Street, asked to raise money to build the skate park. Additionally, Greater Orange Community Arts Theater (GOCAT) sent a letter to City Council asking to investigate the possibility of building and operating a community arts theater at Grijalva Park. The City Council City of Orange Printed on 9/8/2022Page 2 of 3
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the possibility of building and operating a community arts theater at Grijalva Park. The City Council received a letter from Orange Regional Competitive Aquatics (ORCA), a current city partner in providing swim lessons at local high school pools, requesting to explore a joint partnership to build and operate a community pool at Grijalva Park. Additionally, the City Manager received a letter of request from the Orange Public Library Board of Trustees, expressing interest in exploring opportunities for a library facility. In addition to these four requests, there has been community discussion of potentially utilizing the property for a senior center, as Orange Elderly Services continues its efforts of long-term strategic planning.
In an effort to evaluate these requests, staff engaged the services of MIG Landscape Architects (MIG), formerly Purkiss-Rose-RSI who created the 2005 Master Plan, to help evaluate options. MIG presented staff with a potential updated Master Plan (Attachment 2). The City Council reviewed the status of the Master Plan and in February 2019, issued support letters to Contenders Boardshop, the GOCAT Foundation, Orange Public Library Foundation, and ORCA to raise funds to build their respective facilities.
In 2020, ORCA notified the City that it no longer is pursing fundraising efforts to build an aquatics center at Grijalva Park. This change presented the City with the opportunity to re-evaluate the updated 2019 plan to maximize use of the property which includes reconfiguring the placement of the Library/Senior Center to provide better connectivity to the existing Sports Center and relocate the skate park to the aquatic center site. Staff engaged MIG again in 2022 and the consultant provided another option for the Grijalva Park Master Plan (Attachment 3).
Considerations and Fiscal Impact
Development of the site should consider the factors previously discussed. In addition, planning for the site should consider existing programing at the site, which currently includes field and facility rentals, open gym, special events, and general park use. Future fiscal impacts for both development of facilities and associated amenities (utilities, parking, hardscape, landscape, etc.), as well as operations and maintenance will be determined based on City Council input and direction.
7. ATTACHMENTS
· Attachment 1- 2005 Grijalva Park at Santiago Creek Site Plan · Attachment 2- 2019 Grijalva Park Master Plan Update
· Attachment 3- 2022 Grijalva Park Master Plan Update
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E. WALNUTAVE.
VAN
VAN
MOTORCYCLEPARKING
VANNOPARKINGNOPARKING
VANNOPARKINGNOPARKINGNOPARKINGNOPARKING
E. Walnut Ave.
McPhersonRdSpring St
T.
Skate Park11,500 SF
GOCAT(Theater)32,000 SF
NOPARKING
NOPARKING
NOPARKING
NOPARKINGVAN
80 parking spaces
140 existingparking spaces
Library/Senior Center32K SF (2 story)
GRIJALVA PARK UPDATED MASTER PLAN STUDYCITY OF ORANGE040'80'20'NORTH 2022
214
Agenda Item
City Council
Item #: 6.2. 9/13/2022 File #: 22-0508
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Susan Galvan, Assistant City Manager
1. SUBJECT
Sully Miller Site Update.
2. SUMMARY
To provide the City Council with a brief recap of the discussion from the July 12, 2022, City Council meeting and a list of possible options for achieving a path for passive/active recreational use of the Sully Miller site.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
None
5. STRATEGIC PLAN GOALS
3. Enhance and Promote Quality of Life in the Community b. Deliver high quality and safe recreational, social, environmental, educational, and cultural services
6. DISCUSSION AND BACKGROUND
A. The Property
The Sully Miller site (the “site”)is located at 6145 E. Santiago Canyon Road and consists of approximately 109 acres of privately owned land. The site is subject to a convergence of land use policies that encompass the City’s2010 General Plan and Zoning Code. For the purpose of this report, staff is not including the Mara Brandman Arena Site or the approximately 15.4 acres of land that is designated and zoned as residential (north of Santiago Creek, adjacent to Mabury Avenue).
See Attachment A for a map of the site. The City’sGeneral Plan currently designates the remaining site as:
1. Resource Area consisting of approximately 77.3 acres that lie primarily on the south side of Santiago Creek; and
2. Open Space consisting of approximately 16.5 acres, that includes the narrow strip of land running through the site from east to west and roughly following the boundaries of Santiago City of Orange Printed on 9/8/2022Page 1 of 2
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Creek.
In the City’sZoning Code, the above-mentioned site is currently zoned as Sand and Gravel use. For reference purposes, Attachment B illustrates allowed uses for Sand and Gravel and Open Space.
B. Meeting Discussions
At their July 12, 2022 City Council meeting, staff provided a status update on the Sully Miller property.
Current activity on portions of the site containing sand and gravel operation have been suspended while the property owner addresses enforcement issues with the LEA and State Water Board. While resolution of the enforcement issues may allow operations to resume at a later date, it is widely regarded that the site is uniquely situated and offers numerous opportunities for recreational uses.
During the discussion, public comment and City Council input made it clear that the desire or vision for future use of the property allow for potential passive/active recreational uses. The comments and discussion concluded without clear direction on a pathway to achieve the desired uses.
At the August 9, 2022 meeting, the City Council requested a follow up report identifying options and pathways for recreational uses on the site.
C. Options
Should the City Council wish to further explore passive/active recreational uses on the site, staff has identified potential options for achieving this goal. The following options include:
1. Private use
Development of the site by a non-public agency for private and/or public recreational use.
2. Public use
The City (or any public agency) can seek funding for site acquisition. Possible funding sources including reserved and/or unreserved General Fund, seeking potential grant funding, obtaining funding support from County, State, and/or Federal representatives for parkland and open space, and/or issuing bonds for the purchase. In addition to the acquisition cost, staff could also explore available funding for the development and ongoing maintenance of the site and any programs associated with a long-term plan.
3. Public/Private partnership for use
City would seek interested parties for passive/active uses. Similar to the Public option however, funding and programming of the site would be shared by both entities.
While the above-mentioned options do not take into account analysis of the fiscal impact of each course of action, staff would return at a later date with its findings and impacts associated with the desired direction of the City Council.
7. ATTACHMENTS
· A - Map of Sully Miller Site
· B - Land Use Table - Sand and Gravel and Open Space
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Agenda Item
City Council
Item #: 6.2. 9/13/2022 File #: 22-0508
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Susan Galvan, Assistant City Manager
1. SUBJECT
Sully Miller Site Update.
2. SUMMARY
To provide the City Council with a brief recap of the discussion from the July 12, 2022, City Council meeting and a list of possible options for achieving a path for passive/active recreational use of the Sully Miller site.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
None
5. STRATEGIC PLAN GOALS
3. Enhance and Promote Quality of Life in the Community b. Deliver high quality and safe recreational, social, environmental, educational, and cultural services
6. DISCUSSION AND BACKGROUND
A. The Property
The Sully Miller site (the “site”)is located at 6145 E. Santiago Canyon Road and consists of approximately 109 acres of privately owned land. The site is subject to a convergence of land use policies that encompass the City’s2010 General Plan and Zoning Code. For the purpose of this report, staff is not including the Mara Brandman Arena Site or the approximately 15.4 acres of land that is designated and zoned as residential (north of Santiago Creek, adjacent to Mabury Avenue).
See Attachment A for a map of the site. The City’sGeneral Plan currently designates the remaining site as:
1. Resource Area consisting of approximately 77.3 acres that lie primarily on the south side of Santiago Creek; and
2. Open Space consisting of approximately 16.5 acres, that includes the narrow strip of land running through the site from east to west and roughly following the boundaries of Santiago City of Orange Printed on 9/8/2022Page 1 of 2
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Creek.
In the City’sZoning Code, the above-mentioned site is currently zoned as Sand and Gravel use. For reference purposes, Attachment B illustrates allowed uses for Sand and Gravel and Open Space.
B. Meeting Discussions
At their July 12, 2022 City Council meeting, staff provided a status update on the Sully Miller property.
Current activity on portions of the site containing sand and gravel operation have been suspended while the property owner addresses enforcement issues with the LEA and State Water Board. While resolution of the enforcement issues may allow operations to resume at a later date, it is widely regarded that the site is uniquely situated and offers numerous opportunities for recreational uses.
During the discussion, public comment and City Council input made it clear that the desire or vision for future use of the property allow for potential passive/active recreational uses. The comments and discussion concluded without clear direction on a pathway to achieve the desired uses.
At the August 9, 2022 meeting, the City Council requested a follow up report identifying options and pathways for recreational uses on the site.
C. Options
Should the City Council wish to further explore passive/active recreational uses on the site, staff has identified potential options for achieving this goal. The following options include:
1. Private use
Development of the site by a non-public agency for private and/or public recreational use.
2. Public use
The City (or any public agency) can seek funding for site acquisition. Possible funding sources including reserved and/or unreserved General Fund, seeking potential grant funding, obtaining funding support from County, State, and/or Federal representatives for parkland and open space, and/or issuing bonds for the purchase. In addition to the acquisition cost, staff could also explore available funding for the development and ongoing maintenance of the site and any programs associated with a long-term plan.
3. Public/Private partnership for use
City would seek interested parties for passive/active uses. Similar to the Public option however, funding and programming of the site would be shared by both entities.
While the above-mentioned options do not take into account analysis of the fiscal impact of each course of action, staff would return at a later date with its findings and impacts associated with the desired direction of the City Council.
7. ATTACHMENTS
· A - Map of Sully Miller Site
· B - Land Use Table - Sand and Gravel and Open Space
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Zoning Code - Open Space and Sand & Gravel
Agriculture Sand &
Land Use Open Space Gravel
Accessory Uses - Includes uses defined by OMC 17.040.020^ Antennas (private satellite dish, amateur radio, other) A* - Repair shops, garages or covered storage bins, or other accessory structures associated w/allowable uses in the sand and gravel zone - A
Structures and mechanical equipment associated w/sand and gravel zone - A Agriculture/horticulture uses
Agriculture/horticulture P P
Row Crops P -
Tree Crops and orchards P -
Animal Uses
Animal raising - small animals C+ -
Fishing pond or stream P -
Keeping of horses and livestock C -
Stables C -
Veterinary clinics and livestock animal hospitals C -
Zoo C -
Entertainment Uses
Amusement Park C -
Archery Range C -
Boating C -
Stadium, grandstand, other arena C -
Housing uses
Caretaker residence/caretaker mobile home A* A*
Miscellaneous uses
Backfilling with inert materials - P
Moving an existing structure or building - A*
Production/wholesale uses
Cement, lime, gypsum, or plaster - C
Manufacture from raw materials extracted on site - C
Mining, quarrying, extraction, excavation and removal of rock, sand, gravel and similar materials. Storage of such materials is limited to outside the floor plan - P
Public, social, or institutional uses
Public antennas, wireless communication C+ -
Cemetery C -
Country clubs, golf courses, tennis clubs and the like C - Landfills - C
Libraries, private C -
Museum C -
Sully Miller Site - Land Uses
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Zoning Code - Open Space and Sand & Gravel
Agriculture Sand &
Land Use Open Space Gravel
Sully Miller Site - Land Uses
Observatory C -
Parks and athletic fields, private C C
Public utility buildings, structures, and facilities (on less than one acre) C - Public utility buildings, structures, and facilities (on one acre or more) C - Retail Uses
Sale of agricultural goods grown on-site P* -
School Uses
School or college (public/private) C -
Notes
A = Accessory use
P = Permitted use
C = CUP required
- = Not Permitted
+ = Use subject to conditional use permit regulations (Section 17.13.050) * = Use subject to special provisions (17.13.040)
^17.04.20 Accessory Use - Existing in a minor way. Subordinate and incidental both in size and in intensity of use to the primary use and structure.
General Plan Designation - Resource Area
Allows for agriculture uses and continued use of stream and river channels for aggregate mining.
Passive and active recreational uses are also permitted. May serve as a holding zone for future uses compatible with established and planned land uses in surrounding area 221
Agenda Item
City Council
Item #: 8.1. 9/13/2022 File #: 22-0483
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Susan Galvan, Assistant City Manager
1. SUBJECT
Public Hearing to consider amendment to the Fiscal Year 2022-2023 Annual Action Plan to allocate HOME Investment Partnership funds to the Villa St. Joseph Affordable Housing project and approval of the preliminary award letter of HOME Investment Partnership funds for the State of California Low Income Housing Tax Credits application.
Note: Staff is requesting that the City Council continue this item to the October 11, 2022, Regular City Council meeting.
2. SUMMARY
The U.S. Department of Housing and Urban Development requires the City to amend the Fiscal Year 2022-2023 Action Plan in order to allocate $651,244 in HOME Investment Partnerships funds to the Villa St. Joseph Affordable Housing project. The California Low Income Housing Tax Credits application process requires the project proponent to submit a preliminary award letter of HOME Investment Partnerships funds approved by the City Council.
3. RECOMMENDED ACTION
1. Approve the submittal of the amended Fiscal Year 2022-2023 Action Plan to the U.S.
Department of Housing and Urban Development for the allocation of HOME funds to the Villa St.
Joseph Affordable Housing Project.
2. Authorize the appropriation of $127,487 from HOME (317) unreserved fund balance to 317.9661.56571.30210 - Rehab/Dev Loans - Villa St. Joseph.
3. Authorize the transfer of $523,757 from expenditure account number 317.9660.56510.11250 - HOME Developer Projects to expenditure account number 317.9660.56571.30210 Rehab/Dev Loans - Villa St. Joseph.
4. Authorize the City Manager to execute the attached preliminary award letter of $651,244 in HOME Investment Partnerships funds for the Villa St. Joseph Affordable Housing Project and for all Department of Housing and Urban Development documents related to this commitment.
4. FISCAL IMPACT
The total expenditure for this commitment is $651,244 and will be funded in Rehab/Dev Loans - Villa St. Joseph (30210) through HOME Investment Partnerships Program (317).
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5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community c: Support and enhance attractive, diverse living environments. e: Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.
6. DISCUSSION AND BACKGROUND
The Villa St. Joseph affordable housing project is located at 480 S. Batavia Street. The proposed development will convert the existing vacant Sisters of St. Joseph Motherhouse into a 3-story building with 49-dwelling units for seniors 62 and over and one managerial unit for staff.
The City is providing financial assistance to fund $1,600,000 of a $3,000,000 financial gap request from Mercy Housing California 107, L.P (Mercy Housing). This report is one of two on the September 13, 2022 agenda that addresses the financing for the proposed project. The other associated report addresses the Affordable Housing Loan Agreement that covers the three City funding sources being considered including:
· $651,244 in HOME Investment Partnerships (HOME) funds, of which:
o $127,487 is HOME Program Income, made up of the principal and interest repayment of previous HOME loans administered
o $523,757 in HOME entitlement funds
· $576,000 in Redevelopment set-aside funds
· $372,756 of development in-lieu fees
This report fulfills the additional requirement by the U.S. Department of Housing and Urban Development (HUD) to amend and submit the Fiscal Year 2022-2023 Annual Action Plan to HUD for the allocation of HOME funds to the project and hold a public hearing. The Action Plan identifies activities and funding sources the City intends to utilize to address the priority needs identified in the 2020-2024 Consolidated Plan required by HUD for the use of CDBG and HOME funds. The amended Action Plan was published for a 30-day public review period from August 4, 2022 through September 2, 2022. No public comments were received.
Per the Citizen Participation Plan, the City’sCommunity Development Block Grant (CDBG) Program Committee convened on August 16, 2022 to discuss the funding request from Mercy Housing. The Citizen Participation Plan is a HUD required document that outlines the City’sstrategy for ensuring the participation of citizens and other interested parties in the development of HUD related documents including the Action Plan. At the meeting, the CDBG Committee voted to recommend to Council the allocation of $651,244 in HOME funds to Mercy Housing California, LLC and amend the Fiscal Year 2022-2023 Action Plan to add the allocation.
The City worked collaboratively with the County of Orange to meet the gap funding requested by Mercy Housing and will be using the analysis completed by the County for the Environmental Assessment, to complete the City’sEnvironmental Assessment (as required by HUD) for the project funding commitment. The County of Orange is considering $1,400,000 in state funding to meet the balance of the funding gap at its September 13, 2022 Board of Supervisors meeting for the project.
Additionally, the applicant will be applying to the State of California for Low Income Housing Tax credits to finance the project. The preliminary award letter, included as an attachment to this report, is for the commitment of the HOME funding and is a requirement of the process for Mercy Housing City of Orange Printed on 9/8/2022Page 2 of 3
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for the commitment of the HOME funding and is a requirement of the process for Mercy Housing California 107, L.P. to successfully receive the tax credits.
Actual project funding of the project with HOME funds will be contingent upon the completion of environmental review and approval by HUD. The environmental review determines if a project will have a significant impact on the quality of the human environment. The environmental assessment for Mercy Housing is currently under public review for comment from September 1 to September 15, 2022. No comments have been received. The City also completed a subsidy layering and underwriting analysis to ensure that it does not invest any more HOME funds (alone or in combination with other funds) than are necessary for the project and to ensure that the owner’s/developer’sprofit or return on their investment is appropriate and reasonable, given the size, type, and complexity of the project.
In addition, the following requirements must be met by the applicant:
· Acquire firm commitments from all funding sources in sufficient amounts to complete the project;
· Meet all applicable requirements of the HOME Program (24 CFR Part 92); · Establish a budget and schedule, with borrower certifying that construction is ready to begin within 12 months; and
· Execution of the City’s HOME Loan documents.
7. ATTACHMENTS
· Draft Preliminary Award Letter
· 1st Amendment to the FY2022-2023 Annual Action Plan
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Agenda Item
City Council
Item #: 8.1. 9/13/2022 File #: 22-0483
TO: Honorable Mayor and Members of the City Council
THRU: Rob Houston, City Manager
FROM: Susan Galvan, Assistant City Manager
1. SUBJECT
Public Hearing to consider amendment to the Fiscal Year 2022-2023 Annual Action Plan to allocate HOME Investment Partnership funds to the Villa St. Joseph Affordable Housing project and approval of the preliminary award letter of HOME Investment Partnership funds for the State of California Low Income Housing Tax Credits application.
Note: Staff is requesting that the City Council continue this item to the October 11, 2022, Regular City Council meeting.
2. SUMMARY
The U.S. Department of Housing and Urban Development requires the City to amend the Fiscal Year 2022-2023 Action Plan in order to allocate $651,244 in HOME Investment Partnerships funds to the Villa St. Joseph Affordable Housing project. The California Low Income Housing Tax Credits application process requires the project proponent to submit a preliminary award letter of HOME Investment Partnerships funds approved by the City Council.
3. RECOMMENDED ACTION
1. Approve the submittal of the amended Fiscal Year 2022-2023 Action Plan to the U.S.
Department of Housing and Urban Development for the allocation of HOME funds to the Villa St.
Joseph Affordable Housing Project.
2. Authorize the appropriation of $127,487 from HOME (317) unreserved fund balance to 317.9661.56571.30210 - Rehab/Dev Loans - Villa St. Joseph.
3. Authorize the transfer of $523,757 from expenditure account number 317.9660.56510.11250 - HOME Developer Projects to expenditure account number 317.9660.56571.30210 Rehab/Dev Loans - Villa St. Joseph.
4. Authorize the City Manager to execute the attached preliminary award letter of $651,244 in HOME Investment Partnerships funds for the Villa St. Joseph Affordable Housing Project and for all Department of Housing and Urban Development documents related to this commitment.
4. FISCAL IMPACT
The total expenditure for this commitment is $651,244 and will be funded in Rehab/Dev Loans - Villa St. Joseph (30210) through HOME Investment Partnerships Program (317).
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Item #: 8.1. 9/13/2022 File #: 22-0483
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community c: Support and enhance attractive, diverse living environments. e: Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.
6. DISCUSSION AND BACKGROUND
The Villa St. Joseph affordable housing project is located at 480 S. Batavia Street. The proposed development will convert the existing vacant Sisters of St. Joseph Motherhouse into a 3-story building with 49-dwelling units for seniors 62 and over and one managerial unit for staff.
The City is providing financial assistance to fund $1,600,000 of a $3,000,000 financial gap request from Mercy Housing California 107, L.P (Mercy Housing). This report is one of two on the September 13, 2022 agenda that addresses the financing for the proposed project. The other associated report addresses the Affordable Housing Loan Agreement that covers the three City funding sources being considered including:
· $651,244 in HOME Investment Partnerships (HOME) funds, of which:
o $127,487 is HOME Program Income, made up of the principal and interest repayment of previous HOME loans administered
o $523,757 in HOME entitlement funds
· $576,000 in Redevelopment set-aside funds
· $372,756 of development in-lieu fees
This report fulfills the additional requirement by the U.S. Department of Housing and Urban Development (HUD) to amend and submit the Fiscal Year 2022-2023 Annual Action Plan to HUD for the allocation of HOME funds to the project and hold a public hearing. The Action Plan identifies activities and funding sources the City intends to utilize to address the priority needs identified in the 2020-2024 Consolidated Plan required by HUD for the use of CDBG and HOME funds. The amended Action Plan was published for a 30-day public review period from August 4, 2022 through September 2, 2022. No public comments were received.
Per the Citizen Participation Plan, the City’sCommunity Development Block Grant (CDBG) Program Committee convened on August 16, 2022 to discuss the funding request from Mercy Housing. The Citizen Participation Plan is a HUD required document that outlines the City’sstrategy for ensuring the participation of citizens and other interested parties in the development of HUD related documents including the Action Plan. At the meeting, the CDBG Committee voted to recommend to Council the allocation of $651,244 in HOME funds to Mercy Housing California, LLC and amend the Fiscal Year 2022-2023 Action Plan to add the allocation.
The City worked collaboratively with the County of Orange to meet the gap funding requested by Mercy Housing and will be using the analysis completed by the County for the Environmental Assessment, to complete the City’sEnvironmental Assessment (as required by HUD) for the project funding commitment. The County of Orange is considering $1,400,000 in state funding to meet the balance of the funding gap at its September 13, 2022 Board of Supervisors meeting for the project.
Additionally, the applicant will be applying to the State of California for Low Income Housing Tax credits to finance the project. The preliminary award letter, included as an attachment to this report, is for the commitment of the HOME funding and is a requirement of the process for Mercy Housing City of Orange Printed on 9/8/2022Page 2 of 3
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Item #: 8.1. 9/13/2022 File #: 22-0483
for the commitment of the HOME funding and is a requirement of the process for Mercy Housing California 107, L.P. to successfully receive the tax credits.
Actual project funding of the project with HOME funds will be contingent upon the completion of environmental review and approval by HUD. The environmental review determines if a project will have a significant impact on the quality of the human environment. The environmental assessment for Mercy Housing is currently under public review for comment from September 1 to September 15, 2022. No comments have been received. The City also completed a subsidy layering and underwriting analysis to ensure that it does not invest any more HOME funds (alone or in combination with other funds) than are necessary for the project and to ensure that the owner’s/developer’sprofit or return on their investment is appropriate and reasonable, given the size, type, and complexity of the project.
In addition, the following requirements must be met by the applicant:
· Acquire firm commitments from all funding sources in sufficient amounts to complete the project;
· Meet all applicable requirements of the HOME Program (24 CFR Part 92); · Establish a budget and schedule, with borrower certifying that construction is ready to begin within 12 months; and
· Execution of the City’s HOME Loan documents.
7. ATTACHMENTS
· Draft Preliminary Award Letter
· 1st Amendment to the FY2022-2023 Annual Action Plan
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September 13, 2022
Mercy Housing California (MHC)
Attn: Erika Villablanca, Vice President
1500 South Grand Avenue, Suite 100
Los Angeles, CA 90015
Re: Preliminary Award of HOME Funds to the Affordable Housing Project 480 S. Batavia Street, Orange, CA 92868
Dear Ms. Villablanca,
On September 13, 2022, the City Council of Orange approved a preliminary award of HOME Investment Partnerships Program (HOME) funds in the amount Six Hundred Fifty-One Thousand Two Hundred Forty- Four Dollars ($651,244) in fiscal year 2022-2023 for a 50-unit affordable housing complex for seniors (Project) to be constructed at 480 S. Batavia Street, Orange, California 92868. The Borrower is Mercy Housing California 107 L.P., a California limited partnership. The Borrower is requesting a loan in the amount of Six Hundred Fifty-One Thousand Two Hundred Forty-Four Dollars ($651,244) to be committed from fiscal year 2022-2023. The funds will be reserved for the Project until September 13, 2023, for the purpose of providing gap financing for the Project. The City must receive copies of firm commitments from all funding sources, including formal notification by the State of California for an award of low income housing tax credits on or before this date.
The HOME funds will be provided to the Borrower in the form of a non-recourse loan (HOME Loan) in the original principal amount of at least Six Hundred Fifty-One Thousand Two Hundred Forty-Four Dollars ($651,244) from fiscal year 2022-2023, with interest at the greater of (a) one-quarter percent (0.25%) per annum, or (b) the Applicable Federal Rate, from the date that the loan is funded to the Borrower. The term of the HOME Loan is 55 years. HOME Loan payments will be payable exclusively from 3.25% of annual residual receipts, which will be allocated exclusively to repayment of the HOME Loan. Any other residual receipts loan to the Project will be paid from a separate portion of residual receipts as specified in the documents related to that loan.
To receive the HOME Loan funds, Borrower must execute City loan documents evidencing and securing the HOME Loan in forms to be approved by the City Manager. No more than eleven (11) of the units in the Project will be designated as HOME units and the rents on those units will be restricted in conformance with the Federal regulations governing the HOME Program (24 CFR Part 92). The HUD compliance period is 55 years. The City Council has delegated to the City Manager all City approval rights over the HOME Loan documents.
The following are required in order to receive the HOME Loan fund:
1. Firm commitments from all financing sources, including reservation of low income tax credits and allocation, of tax-exempt bonds as well as funding from the City and commitments by investors, in sufficient amounts to complete the Project;
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2. The Project must meet all applicable requirements of the HOME Program (24 CFR Part 92);
3. Completion of environmental review required under the National Environmental Policy Act and authority to use federal funds by HUD. Note that no activity may occur at the site that would adversely affect or would otherwise be choice limiting including the acquisition, demolition, construction or relocation of building or structure or otherwise making a physical change to the property (including moving dirt) until the authority to use federal funds has been provided;
4. Subsidy layering requirements have been met as defined by the U.S. Department of Housing and Urban Development (HUD);
5. A budget and schedule must be established and Borrower must certify that construction is ready to begin within 12 months; and
6. Execution of City’s HOME Loan documents.
When all funding sources are secured, the City’s Community Development Administrative Analyst will work diligently toward obtaining approval and execution of City loans by the City Manager.
If you have any questions, please call or email Jessica Herrera at (714) 744-7270 or [email protected]. Please acknowledge your consent to the foregoing terms and conditions by signing and returning a copy of this letter.
Sincerely,
Rob Houston
City Manager
Mercy Housing California 107 LP, on behalf of the Borrower, hereby acknowledges and agrees to all of the terms and conditions set forth in this letter.
By: __________________________________
Erika Villablanca, Vice President
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CITY OF ORANGE
SUBSTANTIAL AMENDMENT TO THE
2022-2023 ANNUAL ACTION PLAN
BACKGROUND
Each year the US Department of Housing and Urban Development (HUD) provides funding for housing and community development programs to the City of Orange, specifically Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) Program funds. To receive these funds, the City must complete a report every five year called the Consolidated Plan.
The purpose of the Consolidated Plan is to identify the City of Orange’s housing and community development needs, priorities, goals, and strategies and to stipulate how funds will be allocated to housing and community development activities over the period of the Consolidated Plan, which in this case is every five years.
The City shall amend the approved Consolidated Plan and Annual Action Plans when:
A substantial change (e.g., 20% or more) in its allocation priorities or a substantial change in the method of distribution of funds takes place; or Carries out an activity, using funds from any program covered by the consolidated plan (including program income), not previously described in the action plan; or Substantially change the purpose, scope, location, or beneficiaries of an activity.
The substantial change criteria utilized by the City of Orange in this case, is determined by a the addition of a new activity that was not previously considered by the Council for the use of HUD funding and in which the change would exceed:
1. 20% of the original allocations or when beneficiaries are impacted by the change; and/or
2. Carries out an activity, using funds from any program covered by the consolidated plan (including program income), not previously described in the action plan As required by Title I of the Cranston-Gonzalez National Affordable Housing Act, the City of Orange has submitted an Annual Action Plan for the 2022-2023 fiscal year. This Plans outlines the activities and expected allocation for this year. The City also has a Citizen Participation Plan which outlines procedures for citizen participation in the planning process of the Consolidated Plan and Annual Action Plan particularly to those areas to be affected by the proposed funds.
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Substantial Amendment
2022-2023 Annual Action Plan
AMENDMENT TO 2022-2023 ANNUAL ACTION PLAN
At the June 14, 2022, City Council meeting, members of the City Council approved the allocation of the HUD funds for the 2022 – 2023 fiscal year. Through the HOME Investment Partnership Act, the city will allocate an additional $651,244 from previous years funding that has remained unspent. These funds will be used to assist the developer, Mercy House, with the development of low-income rental units. These units will be made available to City of Orange residents. Proposed activities with the expected amount are listed below:
Affordable Housing (Villa St. Joseph’s)
Villa St. Joseph, located at 480 S. Batavia Street within the City of Orange will be new construction of 50 Rental Units serving seniors with an affordability period of 55 years.
o Amount Allocation: $651,244
These eligible activities are allowed under the HOME Investment Partnership Act guidelines and will support the City of Orange’s commitment to provide decent and safe affordable housing.
CITIZEN PARTICIPATION
HUD requires that entitlement communities provide the public with a 30-day comment period to provide residents and other interested parties an opportunity to provide input on the proposed Amendment. This public comment period will run from August 4, 2022, to September 2, 2022.
PUBLIC COMMENTS
The City of Orange will incorporate all comments during the 30-day comment period. 231