Baker Street Affordable Housing Development
Mercy Housing California
1. Considering Findings Pursuant to Government Code 33433; and
2. Considering of Disposition and Development Agreement City Council Meeting
March 5, 2024
Background
• On February 6, 2023, the City issued a Request for Proposals (RFP) for an Affordable Housing Development on 300, 307, 312, 314, and 323 Baker Street • The RFP solicited interest from 4 different developers and sought proposals for up to 2 nhacc c of rlinxiinInnminnt hacarl i innn thin nrnnArtiAc r AInairl by thin ('itv • On April 3, 2023, the Evaluation Committee consisting of the Keyser Marston Staff, Director of Development Services and the Deputy Director of Administrative Services reviewed and scored the 4 proposals received
• The Evaluation Committee agreed that Mercy Housing would be the best qualified developer to construct and operate a high-quality affordable housing development along Baker Street and had the best proposal which contemplated development on both phases
Background
• On April 19, 2023, the City Council Housing, Community and Economic Development Committee (the "HCED Committee"), comprised of Councilmember Wanke and Mayor Pro Tem (then Councilmember) Kirwin reviewed the proposals and the recommendation of the Evaluation Committee. After reviewing the information, HCED Committee agreed with the Evaluation Committee findings and recommended Mercy Housing as the top selected proposal to the City Council
• On May 16, 2023, the City Council convened in Closed Session to review the recommendations and directed Staff and the City Attorney's Office to begin negotiations with Mercy Housing on the financing and development of the site • On June 6, 2023, the City Council approved a Land Purchase Option Agreement with Mercy Housing California for development and operation of a high-density affordable housing development on Baker Street
Strategic Plan Statement
This item is consistent with the City Council approved 5 -Year Strategic Goal to Promote Community and Economic
Development under Objective #3.9, which is to Facilitate Affordable Housing along Baker Street
Considering Findings California Code,
Health and Safety Code - HSC § 33433
• Adopt Resolution No. HSA -2024-01 making findings pursuant to HSC § 33433 for real property located at 314 Baker Street and 323 Baker Street and authorizing the sale of the properties
• HSC § 33433 requires that:
Before any property of the agency acquired in whole or in part, with tax increment moneys is sold or leased for development pursuant to the redevelopment plan, the sale or lease shall first be approved by the legislative body (City Council) by Resolution after public hearing; and,
Notice of the hearing shall be published in a newspaper of general circulation in the community at least once per week for at least two successive weeks (Notice published twice in accordance with State law)
• City Council is only required to make findings pursuant to HSC § 33433 for 314 and 323 Baker Street, it does not apply to the balance of the Baker Street properties
Disposition and Development Agreement
• Mercy Housing requests City Council approval of a Disposition and Development Agreement ("DDA") to allow for the future entitlement and construction of a five -story, affordable workforce housing development featuring:
68 affordable housing units with associated amenities for residents, vnSire reSIUenr Services
Onsite and satellite parking sites
• A DDA is a hybrid real estate transaction transferring property to a developer and also including substantial conditions both prior to the sale and after close of escrow to ensure the City property is used as intended, in this case for the development of an affordable housing (workforce housing) development
• The DDA requires City Council consideration and approval, but Public Hearing is not required for the DDA itself
Disposition and Development Agreement
• The actual transfer of the properties and close of escrow will not occur until the developer has the project financing fully in place and construction plans ready for the issuance of a building permit
• The entitlements for the development will be reviewed and considered administratively by Staff pursuant to recent State law, once developer has demonstrated site control pursuant to the DDA
• This development will be the first new affordable housing development in Placentia's Old Town (OT) High Density Residential (HDR) Zoning District since adoption of the district in 2017
Project Description
• The proposed development is a 68 unit, five -story,
100 percent affordable workforce housing
development
• Onsite residential services and amenities, and onsite parking, with an additional satellite parking.
• To be developed on vacant City -owned parcels and
will include partial street vacation
• The five parcels comprehensively total approximately
0.77 gross acres and are bound by BNSF railway to
the south, Melrose Street to the east, and residential
properties to the west and north, with Santa Fe
Avenue located further north
• Primary access to the site is provided along Baker
Street, pedestrian access to Melrose Street and
Santa Fe Avenue
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Project Description
• Reminiscent of Mission Revival style
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Project Description
• Cross Section of development
• Eastern elevation large arched
windows, visible from Melrose Street
• Building projections and varying
rooflines that add aesthetic interest
• Employs four-sided architecture
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Location
Existing
North
(Santa Fe Avenue)
South
(across BNSF tracks)
East (across Melrose
West
Project Characteristics
Existing Land Use
City -Owned Vacant Property
Five Story, 68 -unit, affordable
housing development, with
onsite parking and satellite
parking lot.
Mix of residential and retail
shops
Packing House
City owned parking lot
Residential (single family
homes and some duplexes)
Land Use Element General
Plan Designation
Old Town
Old Town
Old Town
TOD
Old Town
Old Town
Zoning Map Designation
Old Town (High -Density
Residential)
Old Town (High -Density
Residential)
Old Town
TOD
Old Town
Old Town
1iw
Project Characteristics
STANDARD
Height* 3 min/4 max stories, 55'
*Height exceptions — See Table 2 in OT Zoning Code
Setbacks
Setback from Railroad Track
Front
Side
Rear
Streetside Yard
0'
5'-15'
0'
0'
5'-15'
Density
Site Specific
65 du/ac
50 du possible
Parking
Studio 1 min/1 max
1 bedroom 1 min/1.5 max
2 -bedroom 1.5 min/2 max
3 -bedroom 2 min/2.5 max
Guest 2 min/3 max per 10 units
Required w/out DBL
112 spaces
Minimum Lot Size*:
*for a development over 3 stories
10,000 sq.ft.
Common Open Space
(68 units x 50 sq.ft.)
50 sq ft/unit
3,400 sq.ft.
Private Open Space
(68 Units X 64 sq.ft.)
64 s.f./unit
4,352 sq.ft.
Electric Vehicle Charging
10% of project's parking spaces EV Level 2 or 5% of total spaces if DC fast charging stations
Public Art
Encouraged
Five stories, 68'
Setback from Railroad Track 0'
Front 5'
Side 0'
Rear 0'
Streetside Yard 5'
Density Bonus (35%) Increase 68 units total
*Density Bonus Law— parking ratios N/A
Proposed 94 spaces
33,497 sq.ft.
Project utilizing Incentive & Concession 25% reduction
(68 units x 50 sq.ft.) 2,568
*Incentive utilized in Common Open Space, but project meets private open space of PMC
Project will comply with PMC
TBD
General Plan and Land Use Consistency
The proposed development and subdivision is consistent with the following Land Use Element and Housing Element policies and goals of the General Plan Land Use Element:
•
Policy 1.2 — Allow for a variety of residential infill opportunities including single family, multi -family, mixed-use, manufactured housing and mobile homes, in designated areas to satisfy regional housing needs • Policv 1.6 — Encourage mixed-use development within the Old Town District, TOD District and other annrooriate areas
• Policv 2.17 — Encourage the development of Mixed -Use and transit -oriented development to promote a wider range of residential opportunities, to help meet the regional housing needs, and to complement the principles of the Complete Streets model
• Policv 2.18 — Work proactively with Orange County Transportation Authority (OCTA) to properly plan appropriate land uses around existing and future planned transportation projects building by OCTA. • Goal 3 — Revitalize underutilized, abandoned or dilapidated commercial, industrial, and residential uses and properties
• Policv 3.1 — Encourage opportunities for redevelopment and improvements in the Old Town area, the TOD district, industrial areas, neighborhoods in the southern sector of the City, and commercial centers along major roadway corridors
The development will be consistent with the OT zoning district, which is experiencing a revitalization of underutilized properties that will serve to encourage economic investment within the Old Town and TOD districts
General Plan and Land Use Consistency
The proposed development and subdivision is consistent with the following Land Use Element and Housing Element policies and goals of the General Plan Housing Element:
• Goal 1 — Develop and maintain an adequate supply of housing that varies sufficiently in cost, size, type, and tenure to meet the economic and social needs of existing and future residents within the constraints of available land
• Program 1.2 — The development serves to locate housing near transportation to increase livability within new housing developments and locates a major workforce housing development near transportation option
• California Housing Element law mandates that each city show it has adequate sites available through appropriate zoning and development standards
• The City must demonstrate that it has the capacity or adequate sites to accommodate the project needs for housing at all income levels
• Old Town Land Use District (High Density Residential sub -area) is designated as a "by right" zone for affordable housing development
Fiscal Impact
• The one-time revenue for this project includes $482,400.84 in Development Impact Fees.
Based on an appraisal report, the sales price for the properties at 314 Baker Street and 323 Baker Street is $1,018,960
• The proceeds from 314 Baker Street and 323 Baker Street will be placed in the Housing Successor Agency's LMIHAF for future affordable housing development in the City. The sales price for the properties at 300, 307 and 312 Baker Street, and a street vacation of 39,991 square feet total $2,181,040. The total for all five properties and the street dedication is $3,200,000, which is approximately $80.00 per square foot • The City's financial commitment will be to provide a residual receipts loan, in the amount of $3,200,000 for this affordable housing development on Baker Street
Recommendation
It is recommended that the City Council take the following actions:
1. Open Public Hearing regarding the contemplated action to make findings pursuant to Health and Safety Code Section 33433 for real property located at 314 Baker Street and 323 Baker Street; and
2. Receive the Staff Report, consider all public testimony, ask questions of Staff; and
3. Close the Public Hearing; and
4. Adopt Resolution No. HSA -2024-01, a Resolution of the City Council of the City of Placentia, California, making findings pursuant to Health and Safety Code Section 33433 for real property located at 314 Baker Street and 323 Baker Street and authorizing the sale of the properties in connection therein; and
5. Adopt Resolution No. R-2024-17, a Resolution of the City Council of the City of Placentia, California, approving the Disposition and Development Agreement No. DDA -2023-01 with Mercy Housing California transferring title of properties located at 300, 307, 312, 314, and 323 Baker Street to Mercy Housing California to facilitate the future development of a five story, 68 unit multifamily affordable housing development with onsite resident services and management, onsite parking and a satellite parking site on a 0.77 -gross acre site and finding the project to be exempt from further environmental review as a class 32 infill categorical exemption; and
6. Authorize the City Administrator to execute the necessary documents, in a form approved by the City Attorney.
Questions & Comments