Agenda packet — Poway City Council, November 19, 2024 (part 2 of 2)

of 13 feet 6 inches. Fire apparatus access roads shall be designed and maintained to support the imposed loads of a fire apparatus at not less than 75,000 pounds and shall be provided with an approved paved surface to provide all-weather driving capabilities.

A paved driving surface shall mean asphalt, concrete, permeable paving system, or Decomposed Granite (DG) when utilized only on the immediate driveway serving the single-family dwelling or accessory structure and the grade is five percent or less and is followed with an engineered geotechnical report indicating said material and construction meets the minimum 75,000 -pound fire apparatus weight capacity. The turning radius of a fire apparatus access road shall be a minimum of 28 feet as measured to the inside edge of the improvement width.

5. The gradient for a fire apparatus access roadway/driveway shall not exceed 20 percent. Grades 16 to 20 percent (incline or decline) shall be constructed of Portland cement concrete (PCC), with a deep broom finish perpendicular to the direction of travel, or equivalent, to enhance traction. Grades 10 to 15 percent shall be constructed of asphalt or PCC. Permeable paver systems shall only be utilized for grades 0 to 9 percent. DG may be utilized only for the immediate driveway serving the single-family dwelling or accessory structure and not the main fire apparatus roadway. DG shall only be approved when the driveway grade is five percent or less. The angle of departure and the angle of approach of a fire access roadway/driveway shall not exceed 12 percent.

6. All dead-end fire access roadways/driveways greater than 150 feet in length shall be provided with approved provisions that allow emergency apparatus to turn around.

Turnarounds shall comply with the City ’s Fire Department Turnaround Policy. A cul - de-sac shall be provided in residential areas where the access roadway serves more than two improved parcels containing dwelling units. The minimum, unobstructed paved radius width for a cul-de-sac shall be 38 feet in residential areas.

7. Driveways shall extend to within 150 feet of all portions of the exterior walls of the first story of the structure as measured by an approved route around the exterior of the building, unless formally approved by the fire marshal under an exception to extend.

8. Fire apparatus roadways and driveways for fire protection, either temporary or permanent, shall be made available as soon as combustible materials arrive on site.

9. Approved address shall be placed on all new and existing buildings and at appropriate additional locations as to be plainly visible and legible from the street or roadway fronting the property from either direction of approach. Addresses shall contrast wit h their background and shall meet the City ’s standards. The address shall also be required at the private driveway entrance.

10. All automatic gates across fire access roadways and driveways shall be equipped with a Knox Gate Key Switch overriding all command functions and opening gate(s) for emergency apparatus vehicles.

11. Buildings and structures located within the Very High Fire Hazard Severity Area shall be set back from the top of slope(s). Single-story structures shall be set back a minimum 15 feet horizontally from top of slope to the farthest projection from a roof. A single-story structure shall be less than 12 f eet above grade. A two -story structure shall be setback a minimum of 30 f eet horizontally from top of slope to the farthest projection from a roof. Structures greater than two stories may require a greater 21 of 95
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setback when the slope is greater than 2 to 1. The structure setbacks shall be reflected in the site plan. Show scaled cross section profiles denoting the top of the slope, building/roof projections, and the setback distance at multiple locations on the pl an submittal.

12. The project shall comply with Section Four of the City ’s Landscape and Irrigation Design Manual and PMC 15.24 as it relates to fuel management and defensible space.

One hundred feet of fuel management consisting of 5 feet of Zone 0, 30 feet of Zone 1, and 70 feet of Zone 2, is required. Mitigation is required where 100 feet of fuel management cannot be achieved within the parcel boundaries. 10 feet of vegetation fuel modification, meeting Zone 2 requirements, shall be maintained on both sides of the driveway and fire access roadway fronting the property when not already within a fuel modification zone (Mitigation is required where 100 feet of fuel management cannot be achieved within the parcel boundaries. Applicant shall contact the Fire Marshal at (858) 668-4471 to review mitigation options). The landscape plan requires a separate landscape and irrigation plans submittal prepared pursuant to the City ’s Landscape and Irrigation Design Manual requirements. Section Four and Fuel Modification Zones shall be reflected in the site plan. There is a separate fee for this plan check and inspection services.

13. The applicant shall submit and receive signed approval of landscape and irrigation plans prior to the issuance of the building permit.

14. All fuel modifications shall be installed prior to the final inspection for issuance of a certificate of occupancy.

15. All flammable vegetation within the approved fuel modification zone shall be removed prior to the arrival of combustible material on the site and shall be maintained during the duration of the project until all elements of approved fuel modification zones are installed and approved.

16. Smoke alarms shall be installed in all bedrooms and adjoining hallways, and on each separate floor, and shall be interconnected.

17. Carbon monoxide alarms shall be installed in hallways adjoining bedrooms, and on each separate floor, and shall be interconnected.

K. Compliance with the following conditions is required prior to issuance of a Certificate of Occupancy and release of securities:

(Engineering)

1. No occupancy can be granted until the City’s Capital Improvement Project to repair the weir within the manhole in Pomerado Road (fronting 15708 Pomerado Road, asset ID M4-001-SM) has been completed. The anticipated timing for completion is June 30, 2026.

2. The stormwater facilities shall be complete and operational prior to occupancy.

3. The applicant shall install approved trash treatment devices per the Storm Water Trash Facilities Maintenance Agreement (SWTFMA) to the satisfaction of the Engineering 22 of 95
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Inspector.

4. All applicable easement dedications and maintenance agreements are to be recorded prior to occupancy.

5. All existing and proposed utilities or extension of utilities required to serve the project shall be installed underground. No extension of overhead utilities shall be permitted.

6. All utility services shall be installed and completed by the developer and inspected and approved by the Engineering Inspector. All new utility services shall be placed underground.

7. The drainage facilities, driveway, slope planting measures, and all utility services shall be installed, and completed by the developer, and inspected by the Engineering Inspector for approval.

8. An adequate drainage system around the new building pad capable of handling and disposing all surface water shall be provided to the satisfaction of the Engineering Inspector.

9. The applicant shall repair, to the satisfaction of the City Engineer, any and all damages to public improvements caused by construction activity from this project.

10. After completion of all work, record drawings, signed by the engineer of work, shall be submitted to Development Services for review prior to a request of occupancy, per Section 16.52.130B of the Grading Ordinance. Approval of record drawings is required prior to issuance of occupancy and release of grading securities. Initial submittal of record drawings at least three weeks prior to a request for occupancy is recommended.

11. After completion of all work, record drawings for both the grading and improvement plans, signed by the engineer of work, shall be submitted to Development Services for review prior to a request of occupancy, per Section 16.52.130B of the Grading Ordinance. Approval of all record drawings is required prior to issuance of occupancy and release of grading and improvement securities. Initial submittal of record drawings at least three weeks prior to a request for occupancy is recommended.

12. The applicant must complete upgrades of all driveways as shown on the site plan to be ADA compliant. The applicant must be approved for R OW permit prior to start of construction.

(Planning)

13. Approval of this request shall not waive compliance with all sections of the Zoning Ordinance and all other applicable City regulations in effect at the time of Building Permit issuance.

14. Landscaping and irrigation shall be installed per the approved landscape plans.

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15. Any signs proposed for the Project shall be designed in accordance with the Sign Ordinance. The necessary Sign Permit(s) and Building Permit(s) approvals for signage shall be obtained prior to installation.

16. Prior to any use of the project site, or business activity being commenced thereof, all conditions of approval contained herein shall be completed to the satisfaction of the Director of Development Services.

17. Final inspections, including Planning Inspection, is required prior to the Certificate of Occupancy.

L. Compliance with the following conditions is required upon occupancy:

1. Prior to the opening of business, the applicant shall apply to obtain a Business Certificate through the City’s Customer Service Department . Prior to a Business Certificate, the site shall be developed in accordance with the approved plans on file in the Development Services Department and the conditions contained herein. A final inspection from the appropriate City departments will be required.

2. All landscaped areas shall be maintained in a healthy and thriving condition, free from weeds, trash , and debris. The trees shall be encouraged and allowed to retain a natural form. Pruning should be restricted to maintaining the health of the trees and to protect the public safety. Unnatural or excessive pruning, including topping, is not permitted.

3. Parking of recreational vehicles will not be permitted on site.

SECTION 6: The current project approval of DR 23-0003 shall expire on November 19, 2026, at 5:00 p.m., unless a Building Permit has been issued, and construction or use of the property in reliance on this permit has commenced on the property; unless a request for a time extension is submitted to the Development Services Department and a time extension is subsequently granted by the City Council prior to the expiration.

SECTION 7: The location, purpose, and extent of the proposed disposition of the Property for the purposes and uses proposed by Applicant and its affiliate Wakeland Monte Vista, LP are in conformance with the City’s General Plan because (i) the Project site is located within an Affordable Housing Overlay Zone (AHOZ), is identified in the City’s Housing Element, and will include the development of affordable housing, and (ii) the Project includes 60 units, which meets the target density in the AHOZ of 30 units/acre maximum allowable density for this Property.

SECTION 8: The parties are hereby informed that the time within which judicial review of this extension must be sought is governed by Section 1094.6 of the California Code of Civil Procedure.

//
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the C ity Council of the City of Poway, California on the 19th day of November, 2024 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALIFIED:

______________________________
Steve Vaus, Mayor

ATTEST:

____________________________________
Carrie Gallagher, CMC, City Clerk
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RESOLUTION NO. 24-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY, CALIFORNIA, (i) APPROVING THE SUMMARY

REPORT PREPARED PURSUANT TO CALIFORNIA HEALTH
AND SAFETY CODE SECTION 33433 AND MAKING REQUIRED
FINDINGS PURSUANT TO SECTION 33433; (ii) APPROVING
THE LEASE OF PROPERTY LOCATED AT 12674 MONTE VISTA
ROAD, POWAY, CALIFORNIA (APN 275 -460-61-00) AND THE

AFFORDABLE HOUSING AGREEMENT BETWEEN THE POWAY

HOUSING AUTHORITY AND WAKELAND MONTE VISTA, LP,

INCLUDING THE GROUND LEASE AND ALL OTHER

ATTACHMENTS, FOR THE LEASE OF THE PROPERTY AND
DEVELOPMENT AND OPERATION OF A 60 -UNIT MULTI -

FAMILY AFFORDABLE RENTAL HOUSING PROJECT ON THE
PROPERTY; AND (iii) APPROVING OTHER RELATED ACTIONS
WHEREAS, the Poway Housing Authority (Authority) is a public body, corporate and politic, organized, and existing under the California Housing Authorities Law pursuant to California Health and Safety Code (HSC) Section 34200 et seq. (Housing Authorities Law); WHEREAS, the former Poway Redevelopment Agency (Redevelopment Agency) was a public body, corporate and politic, organized, and existing under the California Community Redevelopment Law pursuant to HSC Section 33000 et seq. (Redevelopment Law); WHEREAS, pursuant to the Redevelopment Law, the City Council of the City adopted the Redevelopment Plan (Redevelopment Plan) for the Paguay Redevelopment Project Area (Project Area) for implementation by the Redevelopment Agency. The former Redevelopment Agency adopted an implementation plan for the Project Area in accordance with HSC Section 33490 of the Redevelopment Law (Implementation Plan);
WHEREAS, the Redevelopment Agency was allocated certain property tax increment revenues from the Project Area, and not less than twenty percent (20%) of such property tax increment revenues received by the Redevelopment Agency were deposited into a Low - and Moderate-Income Housing Fund to provide funding for housing within the City that is affordable to persons and families of very low-, low- and/or moderate-income; WHEREAS, by that certain Grant Deed dated February 16, 2000 and recorded in the official records of the office of the San Diego County Recorder on February 22, 2000 as Document No. 2000-0088605, the Redevelopment Agency purchased certain real property located at 12674 Monte Vista Road, Poway, California (APN 275 -460-61-00) (Property) using Redevelopment Agency property tax increment funds held in the Low and Moderate Income Housing Fund for the purpose of causing development of the Property with a project t hat includes housing affordable to persons and families of very low-, low- and/or moderate-income; WHEREAS, by operation of law pursuant to Assembly Bill No. X1 26 (2011 -2012 1st Ex.

Sess.) (AB 26, and together with subsequent legislative bills enacted into law, collectively, Dissolution Law), the Redevelopment Agency was dissolved on February 1, 2012; WHEREAS, pursuant to AB 26, and upon the dissolution of the Redevelopment Agency under AB 26, the City Council designated the Authority as the entity responsible for performing

ATTACHMENT B
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the housing functions of the Redevelopment Agency and to receive the housing assets of the Redevelopment Agency;

WHEREAS, by that certain Grant Deed dated March 11, 2011 and recorded in the official records of the office of the San Diego County Recorder on March 11, 2011 as Document No. 2011-0133655, the Redevelopment Agency had conveyed to the Authority fee title of the Property for the purpose of increasing, improving and preserving affordable housing for persons and families of very low-, low- and/or moderate-income in the City;

WHEREAS, after a competitive bid process through the Authority’s issuance of a Request for Qualifications for Affordable Housing Development on the Property (RFQ) and a Request for Proposals for Affordable Housing Development on the Property (RFP), the Authority selected Wakeland Housing and Development Corporation, a California nonprofit corporation, for negotiations, and the parties thereafter entered into that certain Exclusive Negotiating Rights Agreement dated August 17, 2022, as subsequently amended;

WHEREAS, Wakeland Monte Vista, LP (Developer) is the proposed Developer of the Property, and an affiliate of Wakeland Housing and Development Corporation. Developer proposes to finance (with a combination of funding sources) and cause the development and operation of the Property with a sixty (60) unit multi-family affordable rental housing development in three (3) separate buildings, with units restricted for occupancy by low -, very low -, and extremely low-income families at affordable rent in accordance with the Housing Authorities Law, the Redevelopment Law, California Government Code Section 54221(F)(1)(f), and regulations applicable to the Low Income Housing Tax Credits, which development will include units targeted to adults with developmental disabil ities and military veterans and their families, together with ancillary facilities including, but not limited to, a community building, outdoor amenities, and subterranean parking (collectively, Project). The Authority will restrict forty -nine percent (49% ) (i.e. twenty-nine (29)) of the units in the Project to low -, very low, and extremely low -income families at affordable rent pursuant to the proposed Affordable Housing Agreement and its Attachments and in accordance with the Housing Authorities Law and t he Redevelopment Law.

All of the units (other than one manager’s unit) in the Project will, by Developer’s voluntary action and without requirement by the Authority, be subject to Low Income Housing Tax Credits’ regulations and rental restrictions as requ ired by the documents required by the Low -Income Housing Tax Credits;

WHEREAS, in order to carry out and implement the Authority’s use and purpose, the proposed Project, and the Redevelopment Plan, and pursuant to the terms and conditions of the Agreement, and in accordance with the Housing Authorities Law and the Redevelopment Law, the Authority desires to enter into the proposed Affordable Housing Agreement and its Attachments, including but not limited to the Ground Lease, as said Attachments may be amended, supplemented or modified from time to time in accordance with the terms thereof, (collectively, Agreement) with Developer for the purpose of, and related to, the development and operation of the Project on the Property;

WHEREAS, the Agreement is in furtherance of the public purposes set forth in the Housing Authorities Law and the Redevelopment Law. Completion of the Project will provide needed affordable housing and will assist in ameliorating blighting influences in the Project Area. Pursuant to the Agreement, t he Authority will be imposing occupancy and affordability restrictions on the Project, which will provide affordable housing production credits for the Authority pursuant to applicable law as housing units located in the Project Area and available at affordable rent to low- , very low-, and extremely low-income households;
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WHEREAS, in order to carry out and implement the proposed Project and the Redevelopment Plan, and pursuant to the terms and conditions of the proposed Agreement, the Authority proposes (i) to lease the Property to Developer for the development and operation of the Project pursuant to the proposed Ground Lease for a fully capitalized rent equal to $4,590,000, which amount is equivalent to the fair market value of the Property as of September 13, 2022 based on an independent appraisal of the Property dated November 22, 2022, and (ii) to provide a loan of $4,590,000 to Developer to finance Developer’s ground lease of the Property as prepayment of the capitalized annual lease payments over the term of the Ground Lease;

WHEREAS, pursuant to HSC Section 34312.3(b) of the Housing Authorities Law, the Authority is authorized to sell or lease real property, such as the Property, provided that certain requirements are met;

WHEREAS, pursuant to the Redevelopment Law including, but not limited to, HSC Sections 33430, 33431 and 33433, the Authority is authorized, after conducting a public hearing, to sell or lease for development pursuant to the Redevelopment Plan property acquired in whole or in part, directly or indirectly, with tax increment moneys, such as the Property;

WHEREAS, pursuant to California Government Code Section 65402, the acquisition and disposition of the Property for the purposes and uses proposed by Developer as outlined and provided for in the Agreement conform in every respect with the adopted General Plan of the City as reported to and confirmed by the City Council of the City by adoption of Resolution No. ______, approved and adopted on November 19, 2024;

WHEREAS, pursuant to HSC Section 33433 of the Redevelopment Law, the Authority has caused the preparation of a summary (“Summary Report”);

WHEREAS, a public hearing has been duly called, noticed and advertised as required by law for Tuesday, November 19, 2024, at 7:00pm at the City Council Chambers of the Poway City Hall located at 13325 Civic Center Drive, Poway, California 92064, for the City Counci l and the Authority to consider approval of the Agreement and the disposition of the Property by ground lease pursuant to the proposed Agreement, in accordance with HSC Section 34312.3(b) of the Housing Authorities Law and HSC Sections 33431 and 3 3433 of the Redevelopment Law, and copies of the proposed Agreement and the Summary Report were made available for public inspection and comment as required by HSC Section 33433 of the Redevelopment Law;

WHEREAS, the Agreement contains all the provisions, terms, conditions, and obligations required by state and local law;

WHEREAS, in compliance with the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines, on November 19, 2024, the City Council of the City adopted Resolution No. ___ determining that the disposition of the Property and development of the proposed Project is exempt from CEQA pursuant to the Class 32 “Infill” Categorical Exemption (CEQA Guidelines Section 15332); and

WHEREAS, the City Council did receive and consider a staff report on the proposed Project, including the City’s determination of a Class 32 “Infill” Categorical Exemption under CEQA Guidelines Section 15332, and any comments received during the public review period.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as 28 of 95
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follows:

SECTION 1: The City Council Finds and determines that the foregoing recitals are true and correct and are incorporated herein by this reference as a substantive part of this Resolution.

SECTION 2: The City Council has received and heard all oral and written objections (if any) to the proposed Agreement, to the proposed ground lease disposition of the Property, and to other matters pertaining to this transaction, and that all such oral and written objectives (if any) are hereby overruled.

SECTION 3: The City Council has reviewed and approves the Summary Report prepared pursuant to HSC Section 33433 of the Redevelopment Law.

SECTION 4: Based on the whole record before it, the City Council finds and determines pursuant to HSC Section 33433, each of the following

a. That the lease of the Property as described in the proposed Agreement will assist in the elimination of blight in the Project Area and provide housing for low-, very low -, and extremely low -income persons, and is consistent with the last Implementation Plan adopted pursuant to HSC Section 33490 of the Redevelopment Law.

b. That the consideration to be received by the Authority for the lease of the Property as described in the Agreement is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the lease of the Property.

SECTION 5: The City Council approves the terms and provisions for the lease of the Property and approves the proposed Affordable Housing Agreement between the Poway Housing Authority and Wakeland Monte Vista, LP for the lease of the Property and for the development and operation of the Project, including the proposed Ground Lease and all other Attachments and Exhibits thereto, in the form as submitted by the Executive Director of the Poway Housing Authority.

SECTION 6: The City Council authorizes the Executive Director of the Poway Housing Authority to execute the Affordable Housing Agreement and all applicable Attachments on behalf of the Poway Housing Authority, subject to the approval as to form by the Executive Director of the Poway Housing Authority and its legal counsel.

SECTION 7: The City Council authorizes and directs the City Manager, or designee, of the City (i) to execute documents and take such other actions on behalf of the City as are necessary or desirable and appropriate to carry out and to effectuate the intent of this Resolution on behalf of the City, and (ii) to administer the City’s obligations, responsibilities and duties to be performed by the City, if any, under the Agreement and its Attachments.

SECTION 8: If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The City Council declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.
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SECTION 9: This Resolution shall take effect upon the date of its adoption.

PASSED, APPROVED AND ADOPTED at a Regular Meeting of the C ity Council of the City of Poway, California on the 19th day of November, 2024 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALIFIED:

______________________________
Steve Vaus, Mayor

ATTEST:

____________________________________
Carrie Gallagher, CMC, City Clerk

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RESOLUTION NO. H-24-

A RESOLUTION OF THE CITY OF POWAY HOUSING
AUTHORITY (i) CERTIFYING ITS REVIEW AND
CONSIDERATION OF THE CITY OF POWAY’S CATEGORICAL

EXEMPTION FOR THE PROJECT UNDER CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA) PURSUANT TO CEQA
GUIDELINES SECTION 15332; (ii) APPROVING THE SUMMARY

REPORT PREPARED PURSUANT TO CALIFORNIA HEALTH
AND SAFETY CODE (HSC) SECTION 33433 AND MAKING
REQUIRED FINDINGS PURSUANT TO SECTION 33433; (iii)

DETERMINING THAT THE PROCEEDS OF THE LEASE WILL BE

USED BY THE AUTHORITY TO ASSIST A HOUSING PROJECT

FOR PERSONS OF LOW INCOME PURSUANT TO HSC
SECTION 34312.3; (iv) APPROVING THE LEASE OF PROPERTY
LOCATED AT 12674 MONTE VISTA ROAD, POWAY,
CALIFORNIA (APN 275 -460-61-00) AND THE AFFORDABLE

HOUSING AGREEMENT BETWEEN THE AUTHORITY AND

WAKELAND MONTE VISTA, LP, INCLUDING THE GROUND

LEASE AND ALL OTHER ATTACHMENTS, FOR THE LEASE OF

THE PROPERTY AND DEVELOPMENT AND OPERATION OF A
60-UNIT MULTI -FAMILY AFFORDABLE RENTAL HOUSING
PROJECT ON THE PROPERTY; (v) APPROVING THE TERMS
FOR THE AUTHORITY’S LOA N OF $4,590,000 TO FINANCE
DEVELOPER’S GROUND LEASE OF PROPERTY AS
PREPAYMENT OF ANNUAL LEASE PAYMENTS; AND (vi)

APPROVING OTHER RELATED ACTIONS
WHEREAS, the City of Poway Housing Authority (“Authority”) is a public body, corporate and politic, organized, and existing under the California Housing Authorities Law pursuant to California Health and Safety Code (HSC) Section 34200 et seq. (Housing Authorities Law); WHEREAS, the Authority is vested with all powers and rights provided to it by the Housing Authorities Law including, but not limited to, the powers to manage affordable housing assets in the City of Poway (City), to develop or participate in the development or financing of rental housing projects within the City, to make construction or mortgage loans to finance the acquisition, construction, or development of multi-family rental housing, and to dispose of real property; WHEREAS, the former Poway Redevelopment Agency (Redevelopment Agency) was a public body, corporate and politic, organized, and existing under the California Community Redevelopment Law pursuant to HSC Section 33000 et seq. (Redevelopment Law); WHEREAS, pursuant to the Redevelopment Law, the City Council of the City adopted the Redevelopment Plan (Redevelopment Plan) for the Paguay Redevelopment Project Area (Project Area) for implementation by the Redevelopment Agency. The former Redevelopment A gency adopted an implementation plan for the Project Area in accordance with HSC Section 33490 of the Redevelopment Law (Implementation Plan);
WHEREAS, the Redevelopment Agency was allocated certain property tax increment revenues from the Project Area, and not less than twenty percent (20%) of such property tax increment revenues received by the Redevelopment Agency were deposited into a Low - and

ATTACHMENT C
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Moderate-Income Housing Fund to provide funding for housing within the City that is affordable to persons and families of very low-, low- and/or moderate-income;

WHEREAS, by that certain Grant Deed dated February 16, 2000 and recorded in the official records of the office of the San Diego County Recorder on February 22, 2000 as Document No. 2000-0088605, the Redevelopment Agency purchased certain real property located at 12674 Monte Vista Road, Poway, California (APN 275 -460-61-00) (Property) using Redevelopment Agency property tax increment funds held in the Low and Moderate Income Housing Fund for the purpose of causing development of the Property with a project that includes housing affordable to persons and families of very low-, low- and/or moderate-income;

WHEREAS, by operation of law pursuant to Assembly Bill No. X1 26 (2011 -2012 1st Ex.

Sess.) (AB 26, and together with subsequent legislative bills enacted into law, collectively, Dissolution Law), the Redevelopment Agency was dissolved on February 1, 2012;

WHEREAS, pursuant to AB 26, and upon the dissolution of the Redevelopment Agency under AB 26, the City Council designated the Authority as the entity responsible for performing the housing functions of the Redevelopment Agency and to receive the housing a ssets of the Redevelopment Agency;

WHEREAS, pursuant to HSC Section 34176(a)(1) of the Dissolution Law, all rights, powers, duties, obligations, and housing assets as defined in Section 34176(e) (which include interests in real property) associated with the housing activities of the former Redevelopment Agency, with certain exclusions, were transferred to the Authority as the housing successor of the former Redevelopment Agency;

WHEREAS, pursuant to the Dissolution Law, the California Department of Finance, by letter dated August 31, 2012, approved the Property as a “housing asset” of the former Redevelopment Agency. Further, the Successor Agency’s Oversight Board, by Resolution No.

OSB 13 -004 dated August 21, 2013, ratified and approved, among other matters, the Redevelopment Agency’s transfer of the Property as a housing asset to the Authority as the housing successor in order for the Authority to carry out the housing functions previously performed by the former Redevelopment Agency;

WHEREAS, after a competitive bid process through the Authority’s issuance of a Request for Qualifications for Affordable Housing Development on the Property (RFQ) and a Request for Proposals for Affordable Housing Development on the Property (RFP), the Au thority selected Wakeland Housing and Development Corporation, a California nonprofit corporation, for negotiations, and the parties thereafter entered into that certain Exclusive Negotiating Rights Agreement dated August 17, 2022, as subsequently amended;

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in three (3) separate buildings, with units restricted for occupancy by low -, very low -, and extremely low-income families at affordable rent in accordance with the Housing Authorities Law, the Redevelopment Law, California Government Code Section 54221(F) (1)(f), and regulations applicable to the Low-Income Housing Tax Credits, which development will include units targeted to adults with developmental disabilities and military veterans and their families, together with ancillary facilities including, but no t limited to, a community building, outdoor amenities, and subterranean parking (collectively, Project). The Authority will restrict forty -nine percent (49%) (i.e. twenty-nine (29)) of the units in the Project to low -, very low, and extremely low -income families at affordable rent pursuant to the proposed Affordable Housing Agreement and its Attachments and in accordance with the Housing Authorities Law and the Redevelopment Law.

All of the units (other than one manager’s unit) in the Project will, by Developer’s voluntary action and without requirement by the Authority, be subject to Low Income Housing Tax Credits’ regulations and rental restrictions as required by the documents required by the Low - Income Housing Tax Credits;

WHEREAS, in order to carry out and implement the proposed Project and the Redevelopment Plan, and pursuant to the terms and conditions of the proposed Agreement, the Authority proposes (i) to lease the Property to Developer for the development and operatio n of the Project pursuant to the proposed Ground Lease for a fully capitalized rent equal to $4,590,000, which amount is equivalent to the fair market value of the Property as of September 13, 2022 based on an independent appraisal of the Property dated November 22, 2022, and (ii) to provide a loan of $4,590,000 to Developer to finance Developer’s ground lease of the Property as prepayment of the capitalized annual lease payments over the term of the Ground Lease;

WHEREAS, pursuant to HSC Section 34312.3(b) of the Housing Authorities Law, the Authority may, after conducting a public hearing and without complying with any provision of law concerning disposition of surplus property, sell, lease or otherwise dispose of real property so long as the proceeds of any sale, lease, or other disposition of real property, net of the cost of sale, are to be used directly to assist a housing project pursuant to that Section for persons of low-income. The proceeds of the proposed lease of the Property will be used by the Authority to assist a housing project consistent with HSC Section 34312.3 of the Housing Authorities Law and the Dissolution Law;

WHEREAS, pursuant to the Redevelopment Law including, but not limited to, HSC 33 of 95
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Sections 33430, 33431 and 33433, the Authority is authorized, after conducting a public hearing, to sell or lease for development pursuant to the Redevelopment Plan property acquired in whole or in part, directly or indirectly, with tax increment moneys, such as the Property;

WHEREAS, pursuant to HSC Section 33433 of the Redevelopment Law, the Authority has caused the preparation of a summary (“Summary Report”);

WHEREAS, a public hearing has been duly called, noticed and advertised as required by law for Tuesday, November 19, 2024, at 7:00pm at the City Council Chambers of the Poway City Hall located at 13325 Civic Center Drive, Poway, California 92064, for the Ci ty Council and the Authority to consider approval of the Agreement and the disposition of the Property by ground lease pursuant to the proposed Agreement, in accordance with HSC Section 34312.3(b) of the Housing Authorities Law and HSC Sections 33431 and 3 3433 of the Redevelopment Law, and copies of the proposed Agreement and the Summary Report were made available for public inspection and comment as required by HSC Section 33433 of the Redevelopment Law;

WHEREAS, the Agreement contains all the provisions, terms, conditions, and obligations required by state and local law;

WHEREAS, at the conclusion of the November 19, 2024, noticed public hearing, by the adoption of Resolution No. ______, the City Council of the City made the findings required by HSC Section 33433 of the Redevelopment Law, approved the Agreement between the Poway Housing Authority and Developer and the disposition of the Property by ground lease pursuant to the proposed Agreement, and approved other related actions;

WHEREAS, on November 19, 2024, in compliance with the CEQA, the City Council of the City adopted Resolution No. ___ determining that the disposition of the Property and development of the proposed Project is exempt from CEQA pursuant to the Class 32 “Infill” Categorical Exemption (CEQA Guidelines Section 15332); and

WHEREAS, the Authority did receive and consider a staff report on the proposed Project, including the City’s determination of a Class 32 “Infill” Categorical Exemption under CEQA Guidelines Section 15332, and any comments received during the public review period.

NOW, THEREFORE, BE IT RESOLVED by the Poway Housing Authority as follows:

SECTION 1: The Poway Housing Authority finds and determines that the foregoing recitals are true and correct and are incorporated herein by this reference as a substantive part of this Resolution.

SECTION 2: The Poway Housing Authority has received and heard all oral and written objections (if any) to the proposed Agreement, to the proposed ground lease disposition of the Property, and to other matters pertaining to this transaction, and that all such oral and written objections (if any) are hereby overruled.

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SECTION 3: The Poway Housing Authority certifies that it has reviewed and considered the information contained in the City’s determination of a Class 32 “Infill” Categorical Exemption under CEQA Guidelines Section 15332 for the disposition of the Property and development of the proposed Project, and agrees with the City’s determination that the disposition of the Property and development of the proposed Project is exempt from CEQA.

SECTION 4: The Poway Housing Authority has reviewed and approves the Summary Report prepared pursuant to HSC Section 33433 of the Redevelopment Law.

SECTION 5: Based on the whole record before it, the Poway Housing Authority finds and determines pursuant to HSC Section 33433, each of the following:

a. That the lease of the Property as described in the proposed Agreement will assist in the elimination of blight in the Project Area and provide housing for low -, very low-, and extremely low-income persons, and is consistent with the last Implementation Plan adopted pursuant to HSC Section 33490 of the Redevelopment Law.

SECTION 6: The Poway Housing Authority determines that the proceeds of the proposed lease of the Property will be used by the Poway Housing Authority to assist a housing project for persons of low income, consistent with HSC Section 34312.3 of the Housing Authorities Law and the Dissolution Law.

SECTION 7: The Poway Housing Authority approves the terms and provisions for the lease of the Property and approves the proposed Affordable Housing Agreement between the Poway Housing Authority and Wakeland Monte Vista, LP for the lease of the Property and for the development and operation of the Project, including the proposed Ground Lease and all other Attachments and Exhibits thereto, in the form as submitted by the Executive Director of the Poway Housing Authority.

SECTION 8: The Poway Housing Authority approves the terms and provisions for the Poway Housing Authority’s loan of $4,590,000 to finance Developer’s ground lease of the Property as prepayment of the capitalized annual lease payments over the term of the Ground Lease.

SECTION 9: The Poway Housing Authority authorizes and directs the Executive Director of the Poway Housing Authority to execute the Affordable Housing Agreement and all applicable Attachments on behalf of the Poway Housing Authority, subject to the approval as to form by the Executive Director of the Poway Housing Authority and its legal counsel.

SECTION 10: The Poway Housing Authority authorizes and directs the Executive Director, or designee, of the Poway Housing Authority to execute all documents, instruments, and agreements required by and for the implementation of the Affordable Housing Agreement including, without limitation, the Attachments to the Affordable Housing Agreement, on behalf of the Poway Housing Authority, subject to the approval as to form by the Executive Director of the Poway Housing Authority and its legal counsel.

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SECTION 11: The Poway Housing Authority authorizes and directs the Executive Director, or designee, of the Poway Housing Authority (i) to make such amendments, changes or revisions to the Agreement or to any document, instrument, or agreement required by and for the implementation of the Agreement on behalf of the Poway Housing Authority, as approved by the Executive Director of the Poway Housing Authority and its legal counsel, (ii) to execute such other documents and take such other actions as are necessary or desira ble and appropriate to carry out and implement the purposes of the Agreement and to effectuate the intent of this Resolution on behalf of the Poway Housing Authority including, without limitation, approving extensions of deadlines set forth in the Agreemen t (or any portion thereof) as determined necessary by the Executive Director, or designee, to effectuate the purposes of the Agreement, and (iii) to administer the Poway Housing Authority’s obligations, responsibilities and duties to be performed under the Agreement and all documents, instruments, and agreements required by and for the implementation of the Agreement on behalf of the Poway Housing Authority.

SECTION 12: If any provision of this Resolution or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution that can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Poway Housing Authority declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion of this Resolution.

SECTION 13: This Resolution shall take effect upon the date of its adoption.

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Resolution No. H-24-

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PASSED, APPROVED AND ADOPTED by the Poway Housing Authority of the City of Poway, California, at a regular meeting this 19TH day of November, 2024 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALIFIED:

______________________________
Steve Vaus, Authority Chair
Poway Housing Authority

ATTEST:

________________________________
Carrie Gallagher, CMC, Secretary
Poway Housing Authority

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Southeast
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Attachment No. 1 – Site Map

Page 1 ends

ZONING/LOCATION SITE MAP

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Site Plan/Conceptual Landscape Plan

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ATTACHMENT G
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ATTACHMENT H
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Attachment L of the Staff Report referencing the Affordable Housing Agreement, Ground Lease, and other Necessary Documents for the approval of the Monte Vista Affordable Housing Project is available on file in the Development Services Department and also available online https://poway.org/DocumentCenter/View/11448/Attachment-L---Affordable-Housing-Agreement-- Attachments-PDF

ATTACHMENT L
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PAGUAY REDEVELOPMENT PROJECT

POWAY, CALIFORNIA

SUMMARY REPORT PERTAINING TO THE PROPOSED LEASE

OF CERTAIN PROPERTY WITHIN THE

REDEVELOPMENT PROJECT AREA
California Community Redevelopment Law
Section 33433

PURSUANT TO THE

AFFORDABLE HOUSING AGREEMENT

BY AND BETWEEN

POWAY HOUSING AUTHORITY
AND
WAKELAND MONTE VISTA L.P.

Poway, California
October 2024

ATTACHMENT M
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TABLE OF CONTENTS
Page
I. Introduction ................................................................................................................. ....................... 1 II. Costs of the Agreem ent to the Authority ........................................................................................... 4 III. Estimated Value of the Interest to be Conveyed at the Highest and Best Use Permitted Under the Redevelopment Plan ........................................................................................................................... 5 IV. Estimated Value of the Interest to be Conveyed at the Use and with the Conditions, Covenants, and Development Costs Required by the Agreement ........................................................................ 6 V. Compensation which the Developer will be Required to Pay............................................................. 9 VI. Explanation of the Difference, if any, between the Compensation to be Paid to the Authority by the Proposed Transaction and the Fair Market Value of the Interest to be Conveyed at the Highest and Best Use Consistent with the Redevelopment Plan................................................................... 10 VII. Explanation of Why the Lease of the Property wi ll Assist with the Elimination of Blight ................ 11 VIII. Limiting Conditions............................................................................................................................ 12 60 of 95
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I. INTRODUCTION
A. Purpose of Report
This Summary Report was prepared in accordance with Section 33433 of the California Community Redevelopment Law in order to inform the Poway Housing Authority (Authority) and the public about the proposed Affordable Housing Agreement (Agreement) and Ground Lease (Ground Lease) between the Authority and Wakeland Monte Vista L.P. (Developer).

The Authority owns a 2.06-acre site (Property) located at 12674 Monte Vista Road in the City of Poway (City). The Authority and the Developer propose to enter into a long-term ground lease for development of the Property. The Developer intends to build a 60-unit, two-story over parking apartment complex affordable to households at Extremely Low-, Very Low-, and Low-Income levels (Project). The Project will be constructed on the Property subject to a ground lease with the Authority. The Project is anticipated to be financed using 4% Low Income Housing Tax Credits (LIHTCs), a loan from the Department of Developmental Services (DDS), a loan from the Affordable Housing Program (AHP), and other public funding sources.

This Report describes and specifies:

1. The costs to be incurred by th e Authority under the Affordable Housing Agreement (Agreement);

2. The estimated value of the interest to be conv eyed by the Authority to the Developer at the highest and best use permitted under the Redevelopment Plan;

3. The estimated value of the interest to be conveyed at the proposed use and with the conditions, covenants, and development costs pursuant to the proposed Agreement;

4. The compensation to be paid to the Auth ority pursuant to the proposed transaction;

5. An explanation of the difference, if any, betwee n the compensation to be paid to the Authority under the proposed transaction, and the fair market value at the highest and best use consistent with the Redevelopment Plan; and

6. An explanation of why the conveyance of the inte rest will assist with the elimination of blight.

B. Summary of Findings
The Authority engaged its economic consultant, Keyser Marston Associates, Inc. (KMA), to analyze the financial terms contained in the proposed Agreement and Ground Lease. KMA reviewed the draft 61 of 95
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Agreement and Ground Lease under discussion between the Authority and the Developer as of the date of this Report. The KMA conclusions are summarized as follows:
x The estimated costs of the Agreement to the Authority total $1,486,000. x The estimated fair market value of the interest to be conveyed at its highest and best use is $4,590,000.
x The estimated fair re-use value of the interest to be conveyed is $0. x The estimated value of the compensation to be received by the Authority is $487,000.

C. Description of Area and Proposed Project
The former Paguay Redevelopment Project Area (Project Area) encompassed approximately 8,200 acres including commercial, industrial, and residential land uses. When the Poway City Council established the Project Area in 1983, it was characterized by a deteriorating commercial corridor, deficient infrastructure, lack of public facilities, and little economic base. The adoption of the Paguay Redevelopment Plan provided the opportunity for a partnership of public and private investment, which would become the catalyst for revitalization in the Project Area.

Table 1 describes the physical characteristics of the proposed Project. The proposed Project will contain two (2) stories of residential development featuring 60 apartments. The apartments comprise 28 one-bedroom, 17 two-bedroom, and 15 three-bedroom units with an overall average size of 738 square feet (SF). Fifty-nine (59) units will be affordable to Extremely Low-, Very Low-, and Low-Income households earning between 30% and 59% of Area Median Income (AMI). The Project will include a total of 141 parking spaces, seven (7) at-grade and 134 located in a subterranean garage.

D. Proposed Transaction Terms
This section summarizes the salient aspects of the business terms contained in the proposed Agreement.
x The Authority and the Developer will enter into a minimum 70-year leasehold agreement to convey the Developer the Leasehold interest in the Property. 62 of 95
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x The term of the Ground Lease may range from 70 to 99 years. The precise term will be determined prior to closing.
x The Authority will contribute $4,590,000 to the Project in the form of a residual receipts loan (Authority Loan). The Authority Loan represents the fair market value of the Property and reflects the value of pre-paid ground rent to the Authority. x The Developer will construct 59 residential units, affordable to Extremely Low-, Very Low-, and Low-income households, and one (1) manager unit.
x At least fifteen (15) units will be occupied by an adult household member who is developmentally disabled.
x It is the responsibility of the Developer to ensure that applicable City zoning and land use requirements will permit development of the proposed Project. x The Developer will be responsible for all development costs, including site preparation, grading, and construction of the Project, and off-site improvements. x It is the responsibility of the Developer to conform to all applicable Federal and State labor laws including requirements, if any, to pay prevailing wages. x The Developer will apply to the State of California for a tax-exempt bond allocation and 4% LIHTCs.
x The Developer agrees to defer $1,300,000 of their $4,600,000 developer fee (Deferred Developer Fee) as a funding source for the Project.
x Developer shall complete construction of the Project no later than December 31, 2027. x The Authority Loan will have a term of 70 to 99 years at 3.0% simple interest. The precise term will be determined at closing, consistent with the Ground Lease term. The Authority Loan will be repaid from residual receipts calculated as the Project’s annual cash flow after payment of debt service, asset management fees, and repayment of the Deferred Developer Fee. x Upon repayment of the Deferred Developer Fee, the Developer agrees to pay to the Authority its pro rata share of 50% of residual receipts toward repayment of the Authority Loan. x Affordability restrictions on the Project will remain in effect for a term of 70 years to a maximum of 99 years, consistent with the Ground Lease term.
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II. COSTS OF THE AGREEMENT TO THE AUTHORITY
The estimated costs of the Agreement total $1,486,000, reflecting all costs incurred by the Authority.

These costs include the following items:

Authority Costs Amount
Original Property Acquisition Cost (1) $1,292,394
Third Party Costs (2) $275,000
Subtotal (Rounded) $1,567,000
(Less) Income Received from Interim Uses on Property ($80,889) Total Authority Costs (Rounded) $1,486,000
(1) Per Authority corresponde nce dated April 1, 2024.
(2) Gross estimate; includes legal and economic consultants. 64 of 95
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III. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE

PERMITTED UNDER THE REDEVELOPMENT PLAN
This section presents an analysis of the fair market value of the Property at its highest and best use.

In appraisal terminology, the highest and best use is that use of the Property that generates the highest property value and is physically possible, financially feasible, and legally permitted.

Therefore, value at highest and best use is based solely on the value created and not on whether or not that use carries out the redevelopment goals and policies for the Authority.

The Property is currently zoned Commercial Office (CO). The CO zone is intended as an area primarily for the development of professional, administrative offices, and ancillary retail uses. However, the Property is identified for affordable housing in the City of Poway Housing Element Update and has an Affordable Housing Overlay Zone (AHOZ). The AHOZ was placed on the Property in 2012 and allows for up to 30 units per acre and development by right. The Property is in a mixed-use neighborhood that consists of both single-family and multi-family residential properties and a wide variety of commercial uses.

KMA conducted an independent review of select multi-family land sales within a 10-mile trade ring of the Property. The KMA survey identified eight (8) land sales from 2020 to the present. As shown in Table 2, surveyed land sales ranged from $32 to $81 per SF of land, with a concentration between $60 and $75 per SF of land. The median and average prices were $60 and $57 per SF of land, respectively.

The comparable sales vary by neighborhood, status of entitlements, and zoning/density, requiring adjustments in order to reflect the value of the Property. In KMA’s judgment, the Property is inferior to many of the comparables with respect to location and proposed development type and density.

For example, several of the comparable sales reflect high-density multi-family developments proposed for Downtown Escondido. These Downtown sites enjoy proximity to shopping, dining, and entertainment uses and the area has recently been undergoing significant new investment. As an offset, it is noted that some of the comparables are three to four years old, and there has been significant commercial and multi-family land value appreciation in the interim period. Taking these factors into account, KMA believes that the value of the Property falls below the median/average prices for the surveyed comparables, warranting a downward adjustment on the order of 10% of 15%, resulting in an indicated land value of $51 per SF of land.

Conclusion
On this basis, then, KMA finds that the fair market value of the Property at its highest and best use to be $51 per SF of land, or $4,590,000.
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IV. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED AT THE USE AND WITH THE

CONDITIONS, COVENANTS, AND DEVELOPMENT COSTS REQUIRED BY THE AGREEMENT This section explains the principal conditions and covenants which the Developer of the Property must meet in order to comply with the Agreement. The Agreement contains specific covenants and conditions designed to ensure that the conveyance of the Property will be carried out in a manner to achieve the Authority’s objectives, standards, and criteria under the Redevelopment Plan. Based on a detailed financial feasibility analysis of the Project, KMA concludes that the fair re-use value of the interest to be conveyed is $0.

KMA estimated the re-use value of the interest to be conveyed based on the anticipated income characteristics of the proposed Project. Re-use value is defined as the highest price in terms of cash or its equivalent which a property or development right is expected to bring for a specified use in a competitive open market, subject to the covenants, conditions, and restrictions imposed by the Agreement.

KMA reviewed and analyzed the financial pro forma submitted by the Developer for the Project.

Tables 3 through 5 present the KMA residual value analysis for the proposed Project.

Estimated Development Costs
Table 3 summarizes estimated development costs for the Project.

Total development costs for the Project, excluding Property land acquisition, are estimated at $38,371,000, or $580 per SF Gross Building Area (GBA), which equates to approximately $640,000 per dwelling unit. Total development costs consist of the following:
x Direct construction costs, such as off-site improvements; on-site improvements; parking; shell construction; furniture, fixtures, and equipment (FF&E); and contingency. The total direct costs are estimated to be $25,509,0000, or $386 per SF GBA. The estimate of direct costs assumes the payment of prevailing wages.
x Indirect costs, such as architecture and engineering, permits and fees, legal and accounting, taxes and insurance, developer fee, marketing/lease-up, and contingency. These are estimated to be $9,014,000, or 35.3% of direct costs.
x Financing costs, consisting of loan fees, interest during construction/lease-up, title/recording/escrow fees, Tax Credit Allocation Committee (TCAC) costs, and operating reserves. Total financing costs are estimated at $3,848,000, or 15.1% of direct costs. 66 of 95
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Net Operating Income
Table 4 presents an estimate of stabilized Net Operating Income (NOI) for the Project, as follows:
x The Agreement will restrict the residential units to Extremely Low-, Very Low- and Low-Income households. As discussed earlier, the Developer will apply to the State of California for LIHTCs.

Fifty-nine (59) units will be restricted per LIHTC requirements. The Developer has proposed an affordability mix that is in compliance with California Government Code §54221(f)(1)(F), as shown below.

Area Median Income TCAC Limits H&SC
§50079.5 Total
Extremely Low (30% AMI) 0 units 18 units 18 units
Very Low Income (50% AMI) 0 units 10 units 10 units
Low Income (59% AMI) 14 units 17 units 31 units
Total Restricted Units 14 units 45 units 59 units
Per the Agreement and Government Code §54221(f)(1)(F), 45 units will be restricted per California Redevelopment Law (CRL) Health and Safety Code Section (H&SC) §50079.5 and the Developer will be required to comply with CRL requirements when determining household income and affordable rent calculations. The proposed affordability mix, shown above, results in an average affordability for the Project (excluding the manager’s unit) of 49% AMI. Based on these restrictions, total annual rental income amounts to $1,379,000. x Other income, such as laundry and vending, is estimated at $5 per unit per month. x A vacancy factor of 5.0% is assumed.
x Operating expenses are projected to be $6,700 per unit per year. These expenses include payroll, management fees, administration, utilities, maintenance, and insurance. x Total expenses have been estimated at $9,000 per unit per year. In addition to the operating expenses listed above, these consist of security, property taxes/assessments (it is assumed that the Project will qualify for the property tax welfare exemption), replacement reserves, tenant services, monitoring fees, and an issuer fee.

Based on these assumptions, stabilized annual NOI for the proposed Project is estimated at $776,000.
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Supportable Funding Sources
As shown in Table 5, KMA estimates total available funding sources for the Project comprised of the following:

Sources of Funds Amount
Supportable Permanent Loan $9,866,000
Tax Credit Equity Investment – Federal $13,171,000
Tax Credit Equity Investment – State $6,684,000
Deferred Developer Fee $1,300,000
General Partner Equity Contribution $1,100,000
Department of Developmental Services (DDS) $2,250,000
County of San Diego $3,000,000
Affordable Housing Program (AHP) $1,000,000
Total Sources of Funds $38,371,000
The total funding sources of $38,371,000 represent reasonable estimates of the maximum amounts available for each funding source. The Developer bears the risk of pursuing these funding sources to ensure financial feasibility of the Project.

Residual Land Value
Table 5 also presents the KMA estimate of residual land value for the Property. The residual land value can be estimated as the difference between total available funding sources and total development costs. The comparison of total funding sources and total development costs yields a residual land value for the Property of $0, as shown below:

Residual Land Value Amount
Total Sources of Funds $38,371,000
(Less) Total Development Costs ($38,371,000)
Residual Land Value $0
Conclusion
Based on the foregoing analysis, KMA concludes that the fair re-use value of the Property is $0. 68 of 95
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V. COMPENSATION WHICH THE DEVELOPER WILL BE REQUIRED TO PAY This section summarizes the total compensation to be paid by the Developer to the Authority for the Property. Developer compensation to the Authority will take the form of payment on the Authority Loan through residual receipts payments.

Tables 6 and 7 present the KMA estimate of the Project’s annual cash flow and estimate of compensation to the Authority, respectively. As shown in the cash flow projections, the Authority Loan is projected to be repaid in Year 52.

The cash flow to the Authority is estimated to have a Net Present Value (NPV) of approximately $487,000 in 2024 dollars, assuming a conservative discount rate of 10.0% to reflect the risk and uncertainty associated with the projected Authority Loan repayments.

On this basis, then, KMA concludes that the compensation paid to the Authority for the interest to be conveyed is $487,000.
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VI. EXPLANATION OF THE DIFFERENCE, IF ANY, BETWEEN THE COMPENSATION TO BE PAID TO

THE AUTHORITY BY THE PROPOSED TRANSACTION AND THE FAIR MARKET VALUE OF THE

INTEREST TO BE CONVEYED AT THE HIGHEST AND BEST USE CONSISTENT WITH THE

REDEVELOPMENT PLAN
The fair market value of the interest to be conveyed at its highest and best use is estimated by KMA to be $4,590,000.

The Developer will pay the Authority a fully capitalized rent equal to $4,590,000 using proceeds from the Authority Loan. As discussed in Section V, the cash flow to the Authority is estimated to have a Net Present Value (NPV) of approximately $487,000. Therefore, the compensation to be paid to the Authority pursuant to the Agreement is estimated by KMA to be $487,000.

Factors affecting the difference in compensation to the Authority and fair market value of the interest to be conveyed at highest and best use include:
x The Property will be subject to long-term land use restrictions, operating covenants, and affordability covenants restricting its use solely to uses permitted in the Agreement. x The Project will be developed on a long-term ground lease rather than fee simple ownership. x The Project is proposed to receive subsidies from the LIHTC program, Department of Developmental Services, and/or other potential public funding sources. These funding sources impose specific covenants and restrictions on development and operation of the Project. 70 of 95
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17721.051.007
VII. EXPLANATION OF WHY THE LEASE OF THE PR OPERTY WILL ASSIST WITH THE ELIMINATION

OF BLIGHT
The Redevelopment Plan (Plan) for the Redevelopment Project Area governs the Property. In accordance with Section 33490 of the California Community Redevelopment Law, the Plan contains the goals and objectives and the projects and expenditures proposed to eliminate blight within the Project Area. These blighting factors include:
x The age, obsolescence, deterioration, mixed character, or shifting uses of existing buildings. x The subdividing and sale of lots of irregular form and shape, and inadequate size, for proper usefulness and development.
x A prevalence of depreciated values and impaired investments.

Implementation of the proposed Agreement can be expected to assist in the alleviation of blighting conditions through the following:
x Improving and preserving affordable housing opportunities for Poway residents. x Revitalization of the Project Area.
71 of 95
November 19, 2024, Item #10
Section 33433 Summary Report Page 12
Monte Vista Apartments
24018kal
17721.051.007
VIII. LIMITING CONDITIONS
The estimates of re-use value and fair market value at the highest and best use contained in this Summary Report assume compliance with the following assumptions:

1. The ultimate development will not vary sign ificantly from that assumed in this Report.

2. The title of the Property is good and marketable; no title search has been made, nor have we attempted to determine the ownership of the property. The value estimates are given without regard to any questions of title, boundaries, encumbrances, liens, or encroachments. It is assumed that all assessments, if any, are paid.

3. The Property will be in conformance with th e applicable zoning and building ordinances.

4. Information provided by such local sources as governmental agencies, financial institutions, realtors, buyers, sellers, and others was considered in light of its source, and checked by secondary means.

5. If an unforeseen change occurs in the economy, the conclusions herein may no longer be valid.

6. The Developer will adhere to the schedule of performance described in the Agreement.

7. Both parties are well informed and well advise d and each is acting prudently in what he/she considers his/her own best interest.

8. KMA is not advising or recommending any action be taken by the Authority with respect to any prospective, new, or existing municipal financial products or issuance of municipal securities (including with respect to the structure, timing, terms, and other similar matters concerning such financial products or issues).

9. KMA is not acting as a Municipal Advisor to t he Authority and does not assume any fiduciary duty hereunder, including, without limitation, a fiduciary duty to the Authority pursuant to Section 15B of the Exchange Act with respect to the services provided hereunder and any information and material contained in KMA’s work product.

10. The Authority shall discuss any such information and material contained in KMA’s work product with any and all internal and/or external advisors and experts, including its own Municipal Advisors, that it deems appropriate before acting on the information and material. attachments
72 of 95
November 19, 2024, Item #10
TABLE 1

PROJECT DESCRIPTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Site Address 12674 Monte Vista Road, Poway
II. Site Area 2.06 Acres
III. Gross Building Area
Net Residential Area 45,871 SF 69%
Community Building 1,600 SF 2%
Common Areas/Circulation 18,695
SF 28%
Total Gross Building Area 66,166 SF 100%
IV. Number of Stories 2 Stories (elevator)
V. Construction Type Type V
VI. Unit Mix
One Bedroom 28 Units 47% 545 SF
Two Bedroom 17 Units 28% 823 SF
Three Bedroom 15 Units 25% 1,108 SF
Total/Average 60 Units 100% 765 SF
VII. Target Population
VIII. Density 29 Units/Acre
IX. Affordability Mix
18 Units 30% 11 Units 38%
10 Units 17% 10 Units 34%
31 Units 52% 8 Units 28%
Manager 1 Unit 2% 0 Units 0%
Total/Average 60 Units 100% 29 Units 100%
Average Affordability 49% of AMI
(excluding Manager units)
X. Parking
Total Parking Spaces 141 Spaces 2.35 Spaces/Unit
Parking Area 54,169 SF 384 SF/Space
(1)
(2)
Units @ 59% of AMI
Units @ 30% of AMI
Units @ 50% of AMI
There are 29 units restricted by the Authority: 8 one-bedroom units (30%), 1 two-bedroom unit (30%), 2 three- bedroom units (30%), 4 one-bedroom (50%), 3 two-bedroom (50%), 3 three-bedroom (50%), 4 one-bedroom (59%), 2 two-bedroom (59%), and 2 three-bedroom (59%).

Affordability mix is in compliance with California Government Code 54221(f)(1)(F) with a minimum of 75% of the units restricted at Lower Income as defined in Health & Safety Code Section 50053 and rents no less than 20% below market rents for the neighborhood.

Authority (2)
Number
of Units
Average
Unit Size
Special Needs and Veterans
Subterranean
All Units (1)
Prepared by: Keyser Marston Associates, Inc.

Filename: i:Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 13 73 of 95
November 19, 2024, Item #10
TABLE 2
SELECTED COMPARABLE LAND SALES, 2020 TO PRESENT (1)

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
$/SF
Date Address City Sale Price Acres Land Units $/Unit Proposed Use 01/01/21 12845 Poway Road Poway $15,650,000 4.46 $81 212 $73,800 Mixed-use multi-family apartments 07/01/20 330-330 S. Escondido Blvd. Escondido $2,600,000 0.80 $75 65 $40,000 Multi-family apartments (City Plaza) 03/25/21 555 W. Grand Ave. Escondido $1,400,000 0.45 $71 32 $43,800 Multi-family apartments (TOD) 07/06/22 16326 Via Cazadero Rancho Santa Fe $5,300, 000 2.03 $60 --- --- Multi-family apartments 12/02/22 1600 S. Escondido Blvd. Escondido $2,790, 000 1.07 $60 48 $58,100 Multi-family apartments 09/02/21 1100 W. San Marcos Blvd. Sa n Marcos $4,600,000 2.72 $39 82 $56,100 Mixe d-use condominium development 02/29/24 350 10th Ave. Escondido $530,000 0.33 $37 --- --- Multi-family apartments 08/05/22 991 Del Dios Rd. Escondido $1,225,000 0.89 $32 --- --- Multi-family apartments (Escondido Promenade) Minimum $530,000 0.33 $32 32 $40,000
Maximum $15,650,000 4.46 $81 212 $73,800
Median $2,695,000 0.98 $60 65 $56,100
Average $4,261,875 1.59 $57 88 $54,360
(1) Reflects selected multi-family residential land sales within a 10.0 mile radius from the subject Site and 5.0 acres or less.

Source: CoStar Group, Inc. and Kinetic Valuation Group, Inc. (KVG) Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 14 74 of 95
November 19, 2024, Item #10
TABLE 3

ESTIMATED DEVELOPMENT COSTS

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
Totals
Per Unit
I. Direct Costs (1)
Off-Site Improvements (2) $0 $0 $0 Per SF Site
Demolition (3) $23,039 $384 Allowance
On-Sites/Landscaping (3)(4) $115,193 $1,920 $1 Per SF Site Parking (3) $2,303,858 $38,398 $16,339 Per Space
Shell Construction (3) $21,721,953 $362,033 $328 Per SF GBA FF&E/Amenities $150,000 $2,500 Allowance
Contingency $1,195,202 $19,920 4.9% of Directs
Total Direct Costs $25,509,245 $425,154 $386 Per SF GBA II. Indirect Costs
Architecture & Engineering $1,426,000 $23,767 5.6% of Directs Permits & Fees (2) $1,465,000 $24,417 $22 Per SF GBA
Legal & Accounting $332,500 $5,542 1.3% of Directs
Taxes & Insurance $500,000 $8,333 2.0% of Directs
Developer Fee $4,600,000 $76,667 18.0% of Directs
Construction Manager $200,000 $3,333 0.8% of Directs
Marketing/Lease-Up $90,000 $1,500 0.4% of Directs
Contingency $400,000
$6,667 4.6% of Indirects
Total Indirect Costs $9,013,500 $150,225 35.3% of Directs III. Financing Costs
Loan Fees $496,646 $8,277 1.9% of Directs
Interest During Construction $2,333,445 $38,891 9.1% of Directs Interest During Lease-Up $0 $0 0.0% of Directs
Title/Recording/Escrow $110,000 $1,833 0.4% of Directs
TCAC Fees $316,600 $5,277 1.2% of Directs
Operating Lease-Up/Reserves $591,137
$9,852 2.3% of Directs
Total Financing Costs $3,847,828 $64,130 15.1% of Directs IV. Total Development Costs - $38,371,000 $639,517 $580 Per SF GBA Excluding Acquisition (Rounded)
(1) Includes the payment of prevailing wages.
(2) Developer estimate; not verified by KMA or City.
(3) Includes pro rata share of general conditions and contractor fee. (4) Includes environmental remediation.

Comments
Prepared by: Keyser Marston Associates, Inc.

Filename: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 15 75 of 95
November 19, 2024, Item #10
TABLE 4

NET OPERATING INCOME

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
# of PBV Total Total
I. Gross Scheduled Income
(1) Units Subsidy $/Month Annual
One Bedroom @ 30% AMI H&SC 15 $651 $1,258 $1,909 $343,620 One Bedroom @ 50% AMI H&SC 4 $1,129 -- $1,909 $91,632 One Bedroom @ 59% AMI H&SC 4 $1,344 -- $1,344 $64,512 One Bedroom @ 59% AMI TCAC 5 $1,610 -- $1,610 $96,600 Two Bedroom @ 30% AMI H&SC 1 $712 $1,708 $2,420 $29,040 Two Bedroom @ 50% AMI H&SC 3 $1,249 $1,171 $2,420 $87,120 Two Bedroom @ 59% AMI H&SC 7 $1,491 -- $1,491 $125,244 Two Bedroom @ 59% AMI TCAC 5 $1,917 -- $1,917 $115,020 Two Bedroom Manager 1 $0 -- $0 $0
Three Bedroom @ 30% AMI H&SC 2 $774 $2,599 $3,373 $80,952 Three Bedroom @ 50% AMI H&SC 3 $1,372 $2,001 $3,373 $121,428 Three Bedroom @ 59% AMI H&SC 6 $1,641 -- $1,641 $118,152 Three Bedroom @ 59% AMI TCAC 4 $2,203 -- $2,203 $105,744 Total/Average 60 $1,275 $640 $1,915 $1,379,064
Add: Other Income $5 /Unit/Month $3,600
Total Gross Scheduled Income (GSI) $1,382,664
II. Effective Gross Income (EGI)
(Less) Vacancy 5.0% of GSI ($69,133)
Total Effective Gross Income (EGI) $1,313,531
III. Operating Expenses
(Less) Operating Expenses (3) $6,732 /Unit/Year ($403,930) (Less) Security $100 /Unit/Year ($6,000)
(Less) Tenant Services $1,250 /Unit/Year ($75,000)
(Less) Property Taxes/Assessments (4) $120 /Unit/Year ($7,200) (Less) Replacement Reserves $500 /Unit/Year ($30,000)
(Less) Authority Monitoring Fee $100 /Unit/Year ($6,000) (Less) County Monitoring Fee $68 /Unit/Year ($4,100)
(Less) Issuer Fee $83 /Unit/Year ($5,000)
Total Expenses $8,954 /Unit/Year ($537,230)

40.9% of EGI
IV. Net Operating Income (NOI) $776,301
(1)
(2)
(3) Includes property management fee of approximately $50/unit/month. (4) Assumes that the project will qualify for property tax welfare exemption.

As noted, reflects maximum 2024 Health and Safety Code (HSC) rents or maximum 2024 Tax Credit Allocation Committee (TCAC) rents net of 2024 monthly utility allowances ($66 for one-bedroom, $95 for two-bedroom, and $122 for three-bedroom units).

Total
$/Month (2)
Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp

Page 16 ends

76 of 95
November 19, 2024, Item #10
TABLE 5

RESIDUAL LAND VALUE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Sources of Funds Total
Per Unit
Supportable Permanent Loan (1) $9,866,000 $164,400
Tax Credit Equity Investment - Federal (2) $13,171,000 $219,500 Tax Credit Equity Investment - State (2) $6,684,000 $111,400 Deferred Developer Fee (3) $1,300,000 $21,700
General Partner Equity Contribution (3) $1,100,000 $18,300 Department of Developmental Services (DDS) (4) $2,250,000 $37,500 County of San Diego Loan (5) $3,000,000 $50,000
Affordable Housing Program (AHP) $1,000,000 $16,700
Total Sources of Funds $38,371,000 $639,500
II. (Less) Development Costs - Excl. Acquisition ($38,371,000) ($639,500) III. Residual Land Value $0 $0
Prepared by: Keyser Marston Associates, Inc.

Filename: i:Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 17 77 of 95
November 19, 2024, Item #10
TABLE 5 (CONT'D.)

RESIDUAL LAND VALUE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
(1) Supportable Permanent Loan
NOI $776,301
Interest Rate 6.00%
Term (years) 35
Debt Coverage Ratio 1.15
Annual Debt Service $675,044
Supportable Permanent Loan $9,865,780
(2) Low Income Housing Tax Credits (Federal)
A. Federal
Estimate of Eligible Basis:

Total Development Costs $42,961,000
(Less) Total Ineligible Costs 17% ($7,167,295)
Eligible Basis $35,793,705
Tax Credit Proceeds:

Maximum Eligible Basis $35,793,705
Impacted Bonus Factor 100% $35,793,705
Tax Credit Qualified Units/Applicable Factor 100% $35,793,705 Tax Credit Rate 4.00% $1,431,748
Total Tax Credits @ 10 $14,317,482
Limited Partner Share 100% $14,316,050
Tax Credit Equity Investment @ 92% $13,170,766
B. State
Eligible Basis $35,793,705
Requested Basis 74.1% $26,526,113
Applicable Factor 30% $7,957,834
Limited Partner Share 100% $7,957,038
Tax Credit Equity Investment @ 84.0% $6,683,912
(3) Estimate of Deferred Developer Overhead Fee
Eligible Basis $35,793,705
(Less) Developer Fee ($4,600,000)
Unadjusted Eligible Basis $31,193,705
Total Developer Overhead Fee 14.7% $4,600,000
Developer Overhead Fee $4,600,000
Deferred Developer Fee $1,300,000
General Partner Equity Contribution $1,100,000
Total Deferred Developer Overhead Fee 52.2% $2,400,000
Upfront Developer Fee $2,200,000
Per Unit $37,000
(4) State of California Department of Developmental Services (DDS) $2,250,000 Awarded July 2023
(5) County of San Diego IHTF Loan Pending Future Application $3,000,000
Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 18 78 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
1 2 3 4 5 6 7 8 9 10
I. Gross Scheduled Income (GSI) 2.5% $1,382,664 $1,417,231 $1,452,661 $1,488,978 $1,526,202 $1,564,357 $1,603,466 $1,643,553 $1,684,642 $1,726,758 (Less) Vacancy 5.0% ($69,133) ($70,862) ($72,633) ($74,449) ($76,310) ($78,218) ($80,173) ($82,178) ($84,232) ($86,338) II. Effective Gross Income (EGI) 3.5% $1,313,531 $1,346,369 $1,380,028 $1,414,529 $1,449,892 $1,486,140 $1,523,293 $1,561,375 $1,600,410 $1,640,420 (Less) Operating Expenses (1) ($537,230) ($554,598) ($572,570) ($591,168) ($610,413) ($630,329) ($650,939) ($672,266) ($694,337) ($717,176) III. Net Operating Income $776,301 $791,772 $807,459 $823,361 $839,479 $855,810 $872,354 $889,109 $906,073 $923,244 (Less) Debt Service - Permanent Loan ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) IV. Cash Flow $101,257 $116,728 $132,415 $148,317 $164,435 $180,766 $197,310 $214,065 $231,029 $248,200 V. Asset Management Fees
(Less) Limited Partner Fee 3.0% ($5,000) ($5,150) ($5, 305) ($5,464) ($5,628) ($5,796) ($5,970) ($6,149) ($6,334) ($6,524) (Less) General Partner Fee 3.0% ($20,000) ($20,600) ($21,218) ($21,855) ($22,510) ($23,185) ($23,881) ($24,597) ($25,335) ($26,095) Total Asset Management Fees ($25,000) ($25,750) ($26, 523) ($27,318) ($28,138) ($28,982) ( $29,851) ($30,747) ($31,669) ($32,619) VI. Net Cash Flow $76,257 $90,978 $105,892 $120,999 $136,297 $151,784 $167,459 $183,318 $199,360 $215,581 VII. Developer Fee Repayment
Beginning Balance $1,300,000 $1,277,043 $1,238,424 $1,183,308 $1,110,824 $1,020,071 $910,110 $779,965 $628,626 $455,040 Interest (2) 4.10% $53,300 $52,359 $50,775 $48,516 $45,544 $41,823 $37,314 $31,979 $25,774 $18,657 (Less) Cash Flow Credit ($76,257) ($90,978) ($105,892) ($120,999) ($136,297) ($151,784) ($167,459) ($183,318) ($199,360) ($215,581) Ending Balance $1,277,043 $1,238,424 $1,183,308 $1,110,824 $1,020,071 $910,110 $779,965 $628,626 $455,040 $258,115 VIII. Cash Flow Available for Distribution (3) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 (1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects annual escalation at 3.5% for operating
expenses, tenant services, and Authority
monitoring fee; 0% for replacement reserves and
issuer fee; 2.5% for property taxes/assessments;
and 1.0% for County monitoring fee.

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.

Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 19 79 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Gross Scheduled Income (GSI) 2.5%
(Less) Vacancy 5.0%
II. Effective Gross Income (EGI) 3.5%
(Less) Operating Expenses
(1)
III. Net Operating Income
(Less) Debt Service - Permanent Loan
IV. Cash Flow
V. Asset Management Fees
(Less) Limited Partner Fee 3.0%
(Less) General Partner Fee 3.0%
Total Asset Management Fees
VI. Net Cash Flow
VII. Developer Fee Repayment
Beginning Balance
Interest
(2) 4.10%
(Less) Cash Flow Credit
Ending Balance
VIII. Cash Flow Available for Distribution (3)
(1)
(2)
(3) See Table 7 for distribution of cash flow.

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
11 12 13 14 15 16 17 18 19 20
$1,769,927 $1,814,175 $1,859,529 $1,906,018 $1,953,668 $2,002,510 $2,052,572 $2,103,887 $2,156,484 $2,210,396 ($88,496) ($90,709) ($92,976) ($95,301) ($97,683) ($100,125) ($102,629) ($105,194) ($107,824) ($110,520) $1,681,430 $1,723,466 $1,766,553 $1,810,717 $1,855,985 $1,902,384 $1,949,944 $1,998,692 $2,048,660 $2,099,876 ($740,811) ($765,269) ($790,580) ($816,773) ($843,879) ($871,929) ($900,957) ($930,997) ($962,085) ($994,256) $940,620 $958,197 $975,973 $993,944 $1,012,106 $1,030,455 $1,048,986 $1,067,695 $1,086,575 $1,105,620 ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) $265,576 $283,153 $300,929 $318,900 $337,062 $355,411 $373,942 $392,651 $411,531 $430,576 ($6,720) ($6,921) ($7,129) ($7,343) ($7,563) $0 $0 $0 $0 $0 ($26,878) ($27,685) ($28,515) ($29,371) ($30,252) ($31,159) ($32,094) ($33,057) ($34,049) ($35,070) ($33,598) ($34,606) ($35,644) ($36,713) ($37,815) ($31,159) ($32,094) ($33,057) ($34,049) ($35,070) $231,978 $248,547 $265,285 $282,186 $299,247 $324,252 $341,848 $359,594 $377,482 $395,506 $258,115 $36,721
$10,583 $1,506
($231,978) ($38,226)
$36,721 $0
$0 $210,321 $265,285 $282,186 $299,247 $324,252 $341,848 $359,594 $377,482 $395,506 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 20 80 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
21 22 23 24 25 26 27 28 29 30
$2,265,656 $2,322,297 $2,380,355 $2,439,864 $2,500,860 $2,563,382 $2,627,466 $2,693,153 $2,760,482 $2,829,494 ($113,283) ($116,115) ($119,018) ($121,993) ($125,043) ($128,169) ($131,373) ($134,658) ($138,024) ($141,475) $2,152,373 $2,206,182 $2,261,337 $2,317,870 $2,375,817 $2,435,213 $2,496,093 $2,558,495 $2,622,458 $2,688,019 ($1,027,549) ($1,062,002) ($1,097,657) ($1,134,556) ($1,172,741) ($1,212,258) ($1,253,154) ($1,295,475) ($1,339,274) ($1,384,600) $1,124,825 $1,144,180 $1,163,680 $1,183,315 $1,203,076 $1,222,954 $1,242,939 $1,263,020 $1,283,184 $1,303,419 ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) $449,781 $469,136 $488,636 $508,271 $528,032 $547,910 $567,895 $587,976 $608,140 $628,375 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($36,122) ($37,206) ($38,322) ($39,472) ($40,656) ($41,876) ($43,132) ($44,426) ($45,759) ($47,131) ($36,122) ($37,206) ($38,322) ($39,472) ($40,656) ($41,876) ($43,132) ($44,426) ($45,759) ($47,131) $413,658 $431,930 $450,314 $468,799 $487,376 $506,035 $524,764 $543,550 $562,381 $581,244 $413,658 $431,930 $450,314 $468,799 $487,376 $506,035 $524,764 $543,550 $562,381 $581,244 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 21 81 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
31 32 33 34 35 36 37 38 39 40
$2,900,231 $2,972,737 $3,047,055 $3,123,232 $3,201,313 $3,281,345 $3,363,379 $3,447,463 $3,533,650 $3,621,991 ($145,012) ($148,637) ($152,353) ($156,162) ($160,066) ($164,067) ($168,169) ($172,373) ($176,683) ($181,100) $2,755,220 $2,824,100 $2,894,703 $2,967,070 $3,041,247 $3,117,278 $3,195,210 $3,275,090 $3,356,968 $3,440,892 ($1,431,507) ($1,480,051) ($1,530,289) ($1,582,280) ($1,636,084) ($1,691,767) ($1,749,392) ($1,809,029) ($1,870,747) ($1,934,620) $1,323,712 $1,344,049 $1,364,414 $1,384,791 $1,405,163 $1,425,511 $1,445,818 $1,466,061 $1,486,220 $1,506,272 ($675,044) ($675,044) ($675,044) ($675,044) ($675,044) $0 $0 $0 $0 $0 $648,668 $669,005 $689,370 $709,747 $730,119 $1,425,511 $1,445,818 $1,466,061 $1,486,220 $1,506,272 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($48,545) ($50,002) ($51,502) ($53,047) ($54,638) ($56,277) ($57,966) ($59,705) ($61,496) ($63,341) ($48,545) ($50,002) ($51,502) ($53,047) ($54,638) ($56,277) ($57,966) ($59,705) ($61,496) ($63,341) $600,123 $619,003 $637,868 $656,700 $675,480 $1,369,234 $1,387,852 $1,406,357 $1,424,724 $1,442,931 $600,123 $619,003 $637,868 $656,700 $675,480 $1,369,234 $1,387,852 $1,406,357 $1,424,724 $1,442,931 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 22 82 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
41 42 43 44 45 46 47 48 49 50
$3,712,541 $3,805,355 $3,900,489 $3,998,001 $4,097,951 $4,200,399 $4,305,409 $4,413,045 $4,523,371 $4,636,455 ($185,627) ($190,268) ($195,024) ($199,900) ($204,898) ($210,020) ($215,270) ($220,652) ($226,169) ($231,823) $3,526,914 $3,615,087 $3,705,464 $3,798,101 $3,893,053 $3,990,380 $4,090,139 $4,192,392 $4,297,202 $4,404,632 ($2,000,722) ($2,069,131) ($2,139,928) ($2,213,197) ($2,289,023) ($2,367,497) ($2,448,711) ($2,532,760) ($2,619,744) ($2,709,766) $1,526,192 $1,545,956 $1,565,536 $1,584,904 $1,604,030 $1,622,882 $1,641,428 $1,659,632 $1,677,458 $1,694,867 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$1,526,192 $1,545,956 $1,565,536 $1,584,904 $1,604,030 $1,622,882 $1,641,428 $1,659,632 $1,677,458 $1,694,867 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($65,241) ($67,198) ($69,214) ($71,290) ($73,429) ($75,632) ($77,901) ($80,238) ($82,645) ($85,124) ($65,241) ($67,198) ($69,214) ($71,290) ($73,429) ($75,632) ($77,901) ($80,238) ($82,645) ($85,124) $1,460,952 $1,478,758 $1,496,322 $1,513,614 $1,530,601 $1,547,250 $1,563,527 $1,579,394 $1,594,813 $1,609,742 $1,460,952 $1,478,758 $1,496,322 $1,513,614 $1,530,601 $1,547,250 $1,563,527 $1,579,394 $1,594,813 $1,609,742 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 23 83 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
51 52 53 54 55 56 57 58 59 60
$4,752,366 $4,871,176 $4,992,955 $5,117,779 $5,245,723 $5,376,866 $5,511,288 $5,649,070 $5,790,297 $5,935,055 ($237,618) ($243,559) ($249,648) ($255,889) ($262,286) ($268,843) ($275,564) ($282,454) ($289,515) ($296,753) $4,514,748 $4,627,617 $4,743,307 $4,861,890 $4,983,437 $5,108,023 $5,235,724 $5,366,617 $5,500,782 $5,638,302 ($2,802,931) ($2,899,349) ($2,999,134) ($3,102,405) ($3,209,282) ($3,319,891) ($3,434,364) ($3,552,836) ($3,675,446) ($3,802,338) $1,711,818 $1,728,268 $1,744,173 $1,759,485 $1,774,156 $1,788,132 $1,801,359 $1,813,781 $1,825,337 $1,835,964 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$1,711,818 $1,728,268 $1,744,173 $1,759,485 $1,774,156 $1,788,132 $1,801,359 $1,813,781 $1,825,337 $1,835,964 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($87,678) ($90,308) ($93,018) ($95,808) ($98,682) ($101,643) ($104,692) ($107,833) ($111,068) ($114,400) ($87,678) ($90,308) ($93,018) ($95,808) ($98,682) ($101,643) ($104,692) ($107,833) ($111,068) ($114,400) $1,624,139 $1,637,960 $1,651,155 $1,663,677 $1,675,473 $1,686,489 $1,696,667 $1,705,948 $1,714,269 $1,721,564 $1,624,139 $1,637,960 $1,651,155 $1,663,677 $1,675,473 $1,686,489 $1,696,667 $1,705,948 $1,714,269 $1,721,564 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 24 84 of 95
November 19, 2024, Item #10
TABLE 6

CASH FLOW PROJECTION

MONTE VISTA APARTMENTS

Reflects long-term Applicable Federal Rate (AFR)
for October 2024, per Internal Revenue Service.
61 62 63 64 65 66 67 68 69 70
$6,083,431 $6,235,517 $6,391,405 $6,551,190 $6,714,969 $6,882,844 $7,054,915 $7,231,288 $7,412,070 $7,597,372 ($304,172) ($311,776) ($319,570) ($327,559) ($335,748) ($344,142) ($352,746) ($361,564) ($370,603) ($379,869) $5,779,259 $5,923,741 $6,071,834 $6,223,630 $6,379,221 $6,538,701 $6,702,169 $6,869,723 $7,041,466 $7,217,503 ($3,933,663) ($4,069,576) ($4,210,236) ($4,355,811) ($4,506,471) ($4,662,396) ($4,823,768) ($4,990,778) ($5,163,623) ($5,342,508) $1,845,596 $1,854,165 $1,861,598 $1,867,819 $1,872,750 $1,876,306 $1,878,401 $1,878,946 $1,877,843 $1,874,995 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$1,845,596 $1,854,165 $1,861,598 $1,867,819 $1,872,750 $1,876,306 $1,878,401 $1,878,946 $1,877,843 $1,874,995 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
($117,832) ($121,367) ($125,008) ($128,758) ($132,621) ($136,600) ($140,698) ($144,919) ($149,266) ($153,744) ($117,832) ($121,367) ($125,008) ($128,758) ($132,621) ($136,600) ($140,698) ($144,919) ($149,266) ($153,744) $1,727,764 $1,732,798 $1,736,590 $1,739,061 $1,740,128 $1,739,706 $1,737,704 $1,734,027 $1,728,577 $1,721,251 $1,727,764 $1,732,798 $1,736,590 $1,739,061 $1,740,128 $1,739,706 $1,737,704 $1,734,027 $1,728,577 $1,721,251 Prepared by: Keyser Marston Associates, Inc.

Filename i:\Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 25 85 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
1 2 3 4 5 6 7 8 9 10
I. Cash Flow Available for Distribution $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 II. Allocated to Pay Down Public Loans (1) 50.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 III. Poway Housing Authority
Beginning Balance $4,590,000 $4,727,700 $4,865,400 $5,003,100 $5,140,800 $5,278,500 $5,416,200 $5,553,900 $5,691,600 $5,829,300 Interest 3.0% $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 (Less) Cash Flow Credit (1) 60.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Ending Balance $4,727,700 $4,865,400 $5,003,100 $5,140,800 $5,278,500 $5,416,200 $5,553,900 $5,691,600 $5,829,300 $5,967,000 NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance $3,000,000 $3,090,000 $3,180,000 $3,270,000 $3,360,000 $3,450,000 $3,540,000 $3,630,000 $3,720,000 $3,810,000 Interest 3.0% $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 (Less) Cash Flow Credit
(1) 39.5% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Ending Balance $3,090,000 $3,180,000 $3,270,000 $3,360,000 $3,450,000 $3,540,000 $3,630,000 $3,720,000 $3,810,000 $3,900,000 (1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.

Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 26 86 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
11 12 13 14 15 16 17 18 19 20
$0 $210,321 $265,285 $282,186 $299,247 $324,252 $341,848 $359,594 $377,482 $395,506 $0 $105,160 $132,642 $141,093 $149,624 $162,126 $170,924 $179,797 $188,741 $197,753 $5,967,000 $6,104,700 $6,178,805 $6,236,290 $6,288,665 $6,335,882 $6,375,537 $6,409,872 $6,438,841 $6,462,401 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $0 ($63,595) ($80,215) ($85,325) ($90,484) ($98,044) ($103,365) ($108,731) ($114,140) ($119,590) $6,104,700 $6,178,805 $6,236,290 $6,288,665 $6,335,882 $6,375,537 $6,409,872 $6,438,841 $6,462,401 $6,480,511 $3,900,000 $3,990,000 $4,038,435 $4,076,007 $4,110,239 $4,141,099 $4,167,018 $4,189,459 $4,208,393 $4,223,791 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $0 ($41,565) ($52,428) ($55,768) ($59,140) ($64,081) ($67,559) ($71,066) ($74,601) ($78,163) $3,990,000 $4,038,435 $4,076,007 $4,110,239 $4,141,099 $4,167,018 $4,189,459 $4,208,393 $4,223,791 $4,235,628 Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 27 87 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
21 22 23 24 25 26 27 28 29 30
$413,658 $431,930 $450,314 $468,799 $487,376 $506,035 $524,764 $543,550 $562,381 $581,244 $206,829 $215,965 $225,157 $234,399 $243,688 $253,017 $262,382 $271,775 $281,191 $290,622 $6,480,511 $6,493,133 $6,500,229 $6,501,767 $6,497,716 $6,488,047 $6,472,736 $6,451,763 $6,425,109 $6,392,761 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 ($125,078) ($130,603) ($136,162) ($141,751) ($147,369) ($153,011) ($158,674) ($164,354) ($170,048) ($175,752) $6,493,133 $6,500,229 $6,501,767 $6,497,716 $6,488,047 $6,472,736 $6,451,763 $6,425,109 $6,392,761 $6,354,709 $4,235,628 $4,243,878 $4,248,516 $4,249,521 $4,246,873 $4,240,554 $4,230,547 $4,216,838 $4,199,418 $4,178,275 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 ($81,751) ($85,362) ($88,995) ($92,648) ($96,319) ($100,007) ($103,708) ($107,421) ($111,143) ($114,870) $4,243,878 $4,248,516 $4,249,521 $4,246,873 $4,240,554 $4,230,547 $4,216,838 $4,199,418 $4,178,275 $4,153,405 Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 28 88 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
31 32 33 34 35 36 37 38 39 40
$600,123 $619,003 $637,868 $656,700 $675,480 $1,369,234 $1,387,852 $1,406,357 $1,424,724 $1,442,931 $300,062 $309,502 $318,934 $328,350 $337,740 $684,617 $693,926 $703,178 $712,362 $721,466 $6,354,709 $6,310,949 $6,261,480 $6,206,307 $6,145,439 $6,078,893 $5,802,576 $5,520,629 $5,233,087 $4,939,991 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 $137,700 ($181,460) ($187,169) ($192,873) ($198,567) ($204,246) ($414,017) ($419,647) ($425,242) ($430,796) ($436,301) $6,310,949 $6,261,480 $6,206,307 $6,145,439 $6,078,893 $5,802,576 $5,520,629 $5,233,087 $4,939,991 $4,641,389 $4,153,405 $4,124,803 $4,092,470 $4,056,410 $4,016,627 $3,973,133 $3,792,533 $3,608,254 $3,420,318 $3,228,752 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 ($118,601) ($122,333) ($126,061) ($129,783) ($133,494) ($270,600) ($274,279) ($277,936) ($281,566) ($285,164) $4,124,803 $4,092,470 $4,056,410 $4,016,627 $3,973,133 $3,792,533 $3,608,254 $3,420,318 $3,228,752 $3,033,588 Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 29 89 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
I. Cash Flow Available for Distribution
II. Allocated to Pay Down Public Loans
(1) 50.0%
III. Poway Housing Authority
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit (1) 60.5%
Ending Balance
NPV of Cash Flow to Authority @ $487,000
10% Discount Rate
IV. County of San Diego Loan
Beginning Balance
Interest 3.0%
(Less) Cash Flow Credit
(1) 39.5%
Ending Balance
(1) After repayment of Deferred Developer Fee (if any), reflects pro rata portion of 50% of public agencies' share of cash flow.
41 42 43 44 45 46 47 48 49 50
$1,460,952 $1,478,758 $1,496,322 $1,513,614 $1,530,601 $1,547,250 $1,563,527 $1,579,394 $1,594,813 $1,609,742 $730,476 $739,379 $748,161 $756,807 $765,300 $773,625 $781,764 $789,697 $797,406 $804,871 $4,641,389 $4,337,339 $4,020,325 $3,688,489 $3,341,470 $2,978,904 $2,600,427 $2,205,674 $1,794,280 $1,365,882 $137,700 $130,120 $120,610 $110,655 $100,244 $89,367 $78,013 $66,170 $53,828 $40,976 ($441,750) ($447,134) ($452,445) ($457,674) ($462,810) ($467,845) ($472,766) ($477,564) ($482,226) ($486,740) $4,337,339 $4,020,325 $3,688,489 $3,341,470 $2,978,904 $2,600,427 $2,205,674 $1,794,280 $1,365,882 $920,118 $3,033,588 $2,834,862 $2,627,663 $2,410,777 $2,183,967 $1,946,996 $1,699,625 $1,441,617 $1,172,732 $892,733 $90,000 $85,046 $78,830 $72,323 $65,519 $58,410 $50,989 $43,249 $35,182 $26,782 ($288,726) ($292,245) ($295,716) ($299,133) ($302,490) ($305,781) ($308,997) ($312,133) ($315,180) ($318,131) $2,834,862 $2,627,663 $2,410,777 $2,183,967 $1,946,996 $1,699,625 $1,441,617 $1,172,732 $892,733 $601,385 Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 30 90 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 31 91 of 95
November 19, 2024, Item #10
TABLE 7

PUBLIC LOAN REPAYMENT SCHEDULE

MONTE VISTA APARTMENTS

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 32 92 of 95
November 19, 2024, Item #10

WORKSHEET A
RESTRICTED RENTS - 30% AMI, 2024

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
Number of Bedrooms 1 2 3
A. Health and Safety Code Section 50053
Percent of AMI 30% 30% 30%
Assumed Family Size 2.0 3.0 4.0
Household Income (Rounded) $28,680 $32,265 $35,850
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $717 $807 $896
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $651 $712 $774
B. Low Income Housing Tax Credit (LIHTC) Program
Percent of AMI 30% 30% 30%
Assumed Family Size 1.5 3.0 4.5
Household Income $34,095 $40,920 $47,280
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $852 $1,023 $1,182
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $786 $928 $1,060
(1)
Monthly Utility One Two Three
Electric Cooking $12 $17 $22
Other Electric $44 $61 $78
Air Conditioning $10 $17 $22
Total $66 $95 $122
Per Developer submittal, profile per Housing Authority of the County of San Diego 2024 Utility Allowance Schedule, effective March 1, 2024.

Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 33 93 of 95
November 19, 2024, Item #10

WORKSHEET B
RESTRICTED RENTS - 50% AMI, 2024

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
Number of Bedrooms 1 2 3
A. Health and Safety Code Section 50053
Percent of AMI 50% 50% 50%
Assumed Family Size 2.0 3.0 4.0
Household Income (Rounded) $47,800 $53,775 $59,750
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,195 $1,344 $1,494
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $1,129 $1,249 $1,372
B. Low Income Housing Tax Credit (LIHTC) Program
Percent of AMI 50% 50% 50%
Assumed Family Size 1.5 3.0 4.5
Household Income $56,825 $68,200 $78,800
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,421 $1,705 $1,970
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $1,355 $1,610 $1,848
(1)
Monthly Utility One Two Three
Electric Cooking $12 $17 $22
Other Electric $44 $61 $78
Air Conditioning $10 $17 $22
Total $66 $95 $122
Per Developer submittal, profile per Housing Authority of the County of San Diego 2024 Utility Allowance Schedule, effective March 1, 2024.

Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 34 94 of 95
November 19, 2024, Item #10

WORKSHEET C
RESTRICTED RENTS - 59% AMI, 2024

MONTE VISTA APARTMENTS

POWAY HOUSING AUTHORITY
Number of Bedrooms 1 2 3
A. Health and Safety Code Section 50053
Percent of AMI 59% 59% 59%
Assumed Family Size 2.0 3.0 4.0
Household Income (Rounded) $56,404 $63,455 $70,505
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,410 $1,586 $1,763
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $1,344 $1,491 $1,641
B. Low Income Housing Tax Credit (LIHTC) Program
Percent of AMI 59% 59% 59%
Assumed Family Size 1.5 3.0 4.5
Household Income $67,054 $80,476 $92,984
Income Allocation to Housing 30% 30% 30%
Monthly Housing Cost $1,676 $2,012 $2,325
(Less) Utility Allowance (1) ($66) ($95) ($122)
Maximum Monthly Rent $1,610 $1,917 $2,203
(1)
Monthly Utility One Two Three
Electric Cooking $12 $17 $22
Other Electric $44 $61 $78
Air Conditioning $10 $17 $22
Total $66 $95 $122
Per Developer submittal, profile per Housing Authority of the County of San Diego 2024 Utility Allowance Schedule, effective March 1, 2024.

Prepared by: Keyser Marston Associates, Inc.

Filename: i: Poway - Monte Vista Apartments_v8_33433;10/29/2024;rsp Page 35 95 of 95
November 19, 2024, Item #10
November 19, 2024, Item #11
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA REPORT CityofPoway
November 19, 2024
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Services~
Marie Sanders, Senior Management Analy~d lC,
(858) 668-4637 or [email protected] V~

CITY COUNCIL
Fiscal Year (FY) 2025-2026 Community Development Block Grant Program The City of Poway is a participating city in the San Diego Urban County Community Development Block Grant Program (CDBG). As such, the City annually receives an allocation of CDBG funds from the County of San Diego (County), rather than directly from the U.S. Department of Housing and Urban Development.

The estimated CDBG funding available to Poway for Fiscal Year (FY) 2025-2026 is $183,446.00. City Staff proposes to include the HomeShare and Community Connections Program, North County Bridge to Housing Network Shelter System, 2-1-1 San Diego, and accessibility improvements for individuals with disabilities at Community Park in the FY 2025-2026 CDBG funding applications.

Recommended Action:

It is recommended the City Council:
1) Adopt a Resolution (Attachment A) authorizing the submission of four applications for the FY 2025- 2026 CDBG program;
2) Authorize the appropriation of $183,446.00 to the CDBG Fund (F2410) from the General Fund (F1000), as a loan, to fund the proposed FY 2025-2026 CDBG program upon approval by the County; and
3) Authorize the City Manager to execute all necessary contracts with the County.

Discussion:

Previously, the City has expended CDBG grant funds to subsidize community outreach programs and Americans with Disabilities Act (ADA) improvements at Poway parks and public facilities. The projected CDBG funding available to the City for FY 2025-2026 is $183,446.00. The amounts requested for the community outreach programs are the same as last year. Upon approval by the City Council, City staff will submit FY 2025-2026 CDBG application funding requests to the County for the programs and ADA project identified in this report. If approved by the County, the Notice to Proceed for each project should be available by September 2025. As a requirement of the grant, the City will allocate and 1 of 5
November 19, 2024, Item #11
expend
funds
for
the
approved
projects
and
programs,
which
are
then
submitted
to
the
County
for
reimbursement. 1.

NORTH
COUNTY
BRIDGE
TO

HOUSING

NETWORK
$20,000.00
The
North
County
Bridge
to
Housing
Shelter
Network,
a
collaborative
workgroup
within
the
Alliance
for
Regional
Solutions,
administers
the
program
that
provides
shelter,
meals,
and
case
management
support
for
the
North
County
unhoused
population,
including
families
. Contributions
from
Poway
help
fund
year-round
operations
and
enhanced
services with
an
emphasis
on
bridging
each
individual
and
family
out
of
homelessness
and
into
permanent
supportive
housing.

In
FY
2023-2024,
the
shelter
program
served
467
unique
individuals
including
men,
women,
and
children
with
208
shelter
beds
in
five
facilities
.

Staff
is
recommending
funding
a
not-to-exceed
allocation
of
$20,000.00
for
FY
2025-2026.

2. 2-1-1
SAN
DIEGO
$16,946.00
To
provide
a broader
scope
of
services
and
resources
to
low-income
Poway
residents,
2-1-1
San
Diego
offers
a wide
array
of
programs
and
services
. Such
services
include
information
and
referral
services,
application
assistance
and
completion
for
CalFresh,
Medi-Cal,
Covered
California,
and
children's
services,
as
well
as
streamlined
programs
for
active
military
and
veterans
and
their
family.

The
program
also
includes
24/7
access
to
a
live
Client
Service
Representative.

Furthermore,
the
program
offers
quarterly
demographic
data
reports
of
Poway
callers
that
include
ethnicity,
gender,
race,
age,
zip
code,
household
income,
and
household
size.

The
data
provided
for
the
period
of
FY
2023-2024
show
that
1,036
unduplicated
low-income
Poway
residents
were
assisted,
which
resulted
in
2,490
needs
being
met
and
1,667
referrals
made.

Staff
is
recommending
funding
a not-to-exceed
allocation
of
$16,946.00
for
FY
2025-2026.

3. HOMESHARE
AND

COMMUNITY

CONNECTIONS
$16,000.00
The
City
contracts
with
ElderHelp
of
San
Diego
to
administer
the
HomeShare
and
Community
Connections
Program
. This
program
connects
low-income
individuals
seeking
affordable
housing
with
Poway
homeowners
who
have
a
room
to
rent
through
shared
housing
matching
services.

The
program
additionally
provides
face-to-face
information
and
referral
services,
as
well
as
providing
access
to
a
variety
of
services
such
as
transportation,
health
services,
and
walk-in
and
phone
consultations
with
ElderHelp
staff
located
on
site
at
the
Mickey
Cafagna
Community
Center.

In
FY
2023-2024,
ElderHelp
assisted
60 low-income
residents.

Staff
is
recommending
funding
a
not-to-exceed
allocation
of
$16,000
.00
for
FY
2025-2026.

4. ADA
PUBLIC

FACILITY

IMPROVEMENTS
$130,500
.00
In
2004,
the
City
completed
a
comprehensive
ADA
Barrier
Removal
Transition
Plan
which
identified
accessibility
deficiencies
at
17 Poway
parks
and
public
facilities.

The
information
contained
in
the
plan
is
used
by
staff
to
identify
ADA
barrier
removal
projects
that
are
eligible
for
CDBG
funding.

In
FY
2025-
2026
funds
will
be
used
for
continuing
improvements
at
Community
Park,
specifically
the
Slack
Street
entrance,
by
addressing
pedestrian
pathways
between
the
park
entrance
and
park
amenities
. This
project
addresses
recommendations
from
the
Community
Park
Needs
Assessment
to
improve
connectivity
and
ADA
accessibility
at
Community
Park
.
2 of
5 November 19, 2024, Item #11
Staff
is
recommending
funding
a
not-to-exceed
allocation
of
$130,500.00
for
FY
2025-2026
.

Environmental
Review:

This
item
is
not
subject
to
California
Environmental
Quality
Act
(CEQA)
review.

As
required
by
the
National
Environmental
Protection
Act
and
CEQA,
the
County
and
the
City
will
complete
an
environmental
review
for
each
approved
program
and
project
as
part
of
the
FY
2025
-2026
CDBG
grant
application
process
.

Fiscal
Impact:

Approval
of
this
item
will
result
in
an
appropr
iation
of
$183,446.00
in
the
CDBG
Fund
(F2410)
to
fund
the
FY
2025
-2026
CDBG
Program
upon
approval
of
the
City's
funding
applications
by
the
County.

The
CDBG
fund
will
be
interm
ittently
reimbursed
by
the
County
for
eligible
expenditures
through
the
City's
allocation
of
CDBG
Funds.

The
General
Fund
(F1000)
will
provide
temporary
loans
to
the
CDBG
Fund
,
as
applicable,
in
the
interim.

Public
Notification:

As
a
condition
of
CDBG
administration,
a
public
hearing
must
be
held
to
determine
the
use
of
the
FY
2025-2026
funding.

Public
notices
were
published
in
the
Poway
News
Chieftain
on
November
7,
2024,
and
November
14 , 2024.

Attachments: A.

Resolution
Reviewed/Approved
By:

Wendy
~rman
Assistant
City
Manager
3 ofS
Reviewed
By:

Alan
Fenstermacher
City
Attorney
Approved
By
:
c~ City
Manager
November 19, 2024, Item #11

RESOLUTION
NO.
24-
A

RESOLUTION
OF
THE
CITY

COUNCIL
OF
THE
CITY
OF
POWAY,

CALIFORNIA,

AUTHORIZING
THE

SUBMISSION
OF

APPLICATIONS
FOR
THE

COMMUNITY

DEVELOPMENT
BLOCK
GRANT

PROGRAM
FOR
FISCAL
YEAR
2025-2026

WHEREAS
, the
United
States
Department
of
Housing
and
Urban
Development
(HUD)
administers
the
Community
Development
Block
Grant
(CDBG)
Program,
which
provides
Federal
funds
to
assist
community
development
activities
in
urban
areas;

WHEREAS,
the
County
of
San
Diego
(County)
applies
for
and
accepts
CDBG
funds
with
respect
to
its
unincorporated
areas
and
local
governments
that
participate
in
the
County's
CDBG
program
known
as
"Urban
County";

WHEREAS,
the
City
of
Poway
(City)
is
a
unit
of
general
local
government
that
participates
in
the
"Urban
County"
program;

WHEREAS,
the
City
placed
two
notices
in
a
newspaper
of
general
circulation
indicating
the
Public
Hearing;
and

WHEREAS,
the
City
understands
and
agrees
that
should
the
CDBG
Program
be
discontinued,
the
City
would
be
required
to
reimburse
the
County's
Housing
Development
Fund
for
any
affected
funds.

NOW,

THEREFORE,
BE
IT

RESOLVED
by
the
City
Council
of
the
City
of
Poway
as
follows
: SECTION
1:

The
City
Manager
or
designee
is
authorized
to
submit
applications
for
the
CDBG
Program
for
Fiscal
Year
(FY)
2025-2026.

SECTION
2:

The
City
Manager
or
designee
is
authorized
to
appropriate
CDBG
funding
for
four
projects:

North
County
Bridge
to
Housing
Shelter
Network,
2-1-1
San
Diego,
HomeShare
and
Community
Connections
Program,
and
ADA
improvements
at
Community
Park
for
FY
2025-
2026.

SECTION
3:

The
City
Manager
is
authorized
to
execute
all
necessary
contracts
with
the
County
.
4 ofS

II II II II II II

ATTACHMENT
A
November 19, 2024, Item #11
Resolution
No.
24-
Page
2 PASSED,

APPROVED
AND

ADOPTED
at
a
Regular
Meeting
of
the
City
Council
of
the
City
of
Poway,
California
on
the
19th
day
of
November
2024,
by
the
following
vote,
to
wit:

AYES: NOES
:

ABSTAINED: ABSENT: DISQUALIFIED
:

Steve
Vaus,
Mayor
ATTEST: Carrie
Gallagher,
CMC,
City
Clerk
5 of
5 DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA REPORT CityofPoway
November 19, 2024
Honorable Mayor and Members of the City Council
Eric Heidemann, Director of Public Works f)k

CITY COUNCIL
Robert Weber, Principal Civil Engineer, Public Works - Utilitie� (858) 668-4717 or [email protected] '
Update on the Water Infrastructure Improvement Program; Approval of an Amendment
to the Agreement between the City of Poway and Black & Veatch Corporation for Engineering Design Services for the Poway Treated Water Facilities and Redundant Pipeline Project (WTR0028); and Appropriation of Funds To improve the reliability, redundancy and resiliency of the City of Poway's (City) potable water system, the City has embarked on a significant capital improvement program referred to as the Water Infrastructure Improvement Program (Program). The Program consists of three phases with Phase I consisting of bypassing the ten million-gallon storage reservoir (the Clearwell) at the Lester J. Berglund Water Treatment Plant (WTP), Phase II consisting of replacing the Clearwell at the WTP, and Phase Ill consisting of a new treated water connection including pump station, forebay and a transmission pipeline providing redundancy to the existing single transmission pipeline on Lake Poway Road. The City receives raw (untreated) water from the San Diego County Water Authority (SDCWA), the region's wholesale water supplier, for treatment at the WTP. There is currently no backup supply of treated water to the City.

The Program was presented to the City Council as an informational item, to provide updates and to request approval of the various components on March 18, 2020; June 16, 2020; October 20, 2020; November 17, 2020; March 16, 2021; April 20, 2021; June 1, 2021; July 20, 2021; August 17, 2021; April 5, 2022; October 18, 2022; February 7, 2023; May 16, 2023; August 15, 2023; and September 19, 2023.

Construction and startup of Phase I, the Clearwell Bypass project, was completed in November 2022.

Phase II, the Clearwell Replacement project, is currently in construction and is scheduled to be completed by the middle of 2026. The City initiated design for Phase Ill, the Treated Water Facilities, originally consisting of two project components; the SDCWA Poway 5 (POW-5) Turnout and Flow Control Facility (FCF) Project and the Poway Treated Water Facilities and Redundant Pipeline Project, in early 2022. The latter two projects would provide the City with a treated water connection with SDCWA and the infrastructure needed to provide redundancy and operational flexibility. These two projects would also allow the aging WTP to be taken offline for maintenance and repairs without interruption to water service to the City.
1 of 15
November 19, 2024, Item #12
November 19, 2024, Item #12
The historical background of the treated water connection activities consists of the following:

In an August 6, 2019, letter from the Mayor, the City informed SDCWA of interest in establishing a connection to the SDCWA's treated water aqueduct which would provide the City with a redundant water source. SDCWA supported the City's interest and discussions began between the two agencies.

In November 2019, shortly after notifying SDCWA of the City's interest in a treated water connection, the City experienced a water quality event at the existing Clearwell and a precautionary boil water advisory was issued. In April 2020, the City entered into an agreement with the State Water Resources Control Board, Division of Drinking Water (DDW) with mutually agreed upon actions (DDW Agreement). One of the actions identified in the DDW Agreement was for City to pursue a treated water connection with SDCWA. Since the City had already communicated the request for this connection to SDCWA, the DDW Agreement elevated the City's Program for safe and reliable water to be of the utmost priority.

In September 2020, SDCWA's Board of Directors authorized the City's request for a treated water service connection study. In November 2020, the City and SDCWA entered into a Reimbursement Agreement for a planning study to evaluate the new treated water service for the City. In March 2021, SDCWA and the City completed the Treated Water Service Connection Facility Planning Study (Planning Study). The Planning Study recommended construction of the POW-5 Flow Control Facility, which includes a new treated water turnout structure on the SDCWA's Ramona pipeline near the Ramona RAM-3 FCF on Espola Road.

In March 2021, the SDCWA Board of Directors approved the location of POW-5 near the RAM-3 terminus. In parallel with this alternative, as part of their 2024 Water Master Plan, SDCWA evaluated the feasibility of converting one of the pipelines in the First Aqueduct from raw water to treated water.

The potential project to convert one of the First Aqueduct pipelines to treated water service would have eliminated the need to construct POW-5, however this option was not advanced by the SDCWA due to concerns with water quality degradation in the First Aqueduct. Therefore, the City continued design of POW-5 to preserve the overall schedule and remain in compliance with the terms of the DDW Agreement.

Discussion
During design, the POW-5 Turnout and FCF project (WTR0040) was determined to have a prohibitively high cost, due to not only the new FCF to be constructed but the new 36-inch pipeline on Espola Road.

In response, City staff directed the Program Management consultant, Kennedy Jenks, to complete a Planning Study addendum (Addendum) to reassess project options. The Addendum recommended a new alternative, designated as Alternative 3D, which proposes to maximize use of existing facilities by constructing a connection to the Ramona Municipal Water District system immediately downstream of the existing RAM-3 Flow Control Facility and using existing Ramona and Poway pipelines and the RAM-2 FCF to deliver SDCWA treated water to the new Clearwell. The RAM-2 FCF and the existing pipelines were previously constructed so Poway could provide the SDCWA (and therefore Ramona) with treated water from the WTP during times when SDCWA treated water was unavailable. A series of prior agreements between Poway and the SDCWA set forth the terms under which Poway would deliver treated water to the SDCWA through these facilities.

While the new Alternative 3D carries a significantly lower overall cost than the POW-5 Turnout and Flow Control Facility project, the new hydraulic analysis and design work for the proposed new facilities immediately downstream of RAM-3 is required; these include the flow bifurcation vault and 2of15
November 19, 2024, Item #12
control valves and instrumentation and modifications to the existing RAM-2 facility. A significant amount of the prior design work for the proposed pump station at the Lake Poway Road lower parking lot, forebay tank, and redundant transmission pipeline parallel to the single pipeline on Lake Poway Road from the proposed pump station to the Clearwell is usable and will be leveraged for the reconfigured project.

On August 15, 2024, City staff presented Alternative 3D to DOW staff and received favorable feedback.

The Addendum and updated program schedule were formally submitted to DOW on August 29, 2024, and a design scope change order was negotiated with Black & Veatch. On October 4, 2024, the DOW formally approved the revised program schedule. City Staff and the Ramona General Manager have jointly drafted a Memorandum of Understanding to set forth the general terms under which both agencies will cooperate on developing the design and implementation of the project. If Council approves Staffs recommendations, Staff will return with project updates and following design completion will request approval of the construction contract and water purchase agreement with Ramona.

Recommended Action:

It is recommended the City Council:
1) Approve the Eighth Amendment to the Consultant Agreement with Black & Veatch Corporation for Engineering Design Services for the Poway Treated Water Facilities and Redundant Pipeline Project;
2) Authorize an appropriation of $672,455 from the Water Fund to the Capital Improvement Fund Program Treated Water Facilities and Redundant Pipeline Project (WTR0028); 3) Approve the Memorandum of Understanding with Ramona Municipal Water District; and 4) Authorize the City Manager to execute the necessary documents.

Environmental Review:

This action is not subject to review under the California Environmental Quality Act (CEQA).

Fiscal Impact:

During the development of the FY25 Capital Improvement Fund Program budgets, additional funds were not requested for the Treated Water Facilities and Redundant Pipeline Project (WTR0028). Also, during this time the project budget for WTR0028 was reduced by $390,845 to match the current design budget estimates, leaving no additional appropriated funds. Due to the costs for the re-design from Black & Veatch Corporation Eighth Amendment, staff requests an appropriation of $672,455 from the Water Fund (5100) to the Capital Improvement Fund Program Treated Water Facilities and Redundant (WTR0028). There is adequate funding in the Water Fund 5100 to fulfill the requested increase in appropriations. Water Revenue Bond funds are available to reimburse the Water Fund after expenses are incurred and paid.

Public Notification:

None.
3 of 15
November 19, 2024, Item #12
Attachments: A.

Eighth
Amendment
to
the
Agreement
with
Black
&
Veatch
Corporation
B.

Water
Infrastructure
Improvement
Program
Graphics
C.

Memorandum
of
Understanding
with
Ramona
Municipal
Water
District
Reviewed/Approved
By:

Assistant
City
Manager
4 of
15 Reviewed
By:

Alan
Fenstermacher
City
Attorney
Approved
By:
cedi;2 City
Manager
November 19, 2024, Item #12
EIGHTH

AMENDMENT
TO

STANDARD

AGREEMENT
FOR

SERVICES
THIS
EIGHTH

AMENDMENT
TO
THE

AGREEMENT
(the
"EIGHTH
AMENDMENT")
is
made
and
entered
into
effective
this
19th
day
of
November,
2024,
by
and
between
the
CITY
OF
POWAY,
a
municipal
corporation
(hereinafter
referred
to
as
"CITY")
and
BLACK
&
VEATCH

CORPORATIONS,
a
Kansas
corporation,
(hereinafter
referred
to
as
"CONSUL
TANT").

RECITALS

1. CITY
and
CONSUL
TANT
entered
into
that
certain

AGREEMENT
FOR

SERVICES,
dated
April
5,
2022,
(the
"AGREEMENT"),
by
which
CITY
and
CONSUL
TANT
established
the
terms
and
conditions
for
providing
engineering
design
services
for
the
Poway
Treated
Water
Facilities
and
Redundant
Pipeline
Project
(the
"PROJECT").

2. The

AGREEMENT
term
is
April
5,
2022,
through
July
31,
2024,
and
further
provides,
inter
a/ia,
that
the

AGREEMENT
may
be
extended
for
two
(2)
additional
one
(1)
year
terms
upon
approval
of
the
CITY's
City
Manager.

3. On
November
1,
2022,
CITY
and
CONSUL
TANT
agreed
to
amend
the
compensation
and
reimbursement
provisions
of
the

AGREEMENT
and
increase
the

AGREEMENT
amount
from
a
not-to-exceed
amount
of
$1,755,596,
to
a
not-to-exceed
amount
of
$1,784,513,
and
revise
the
Scope
of
Services
in
accordance
with
Attachment

3. 4.

On
February
6,
2023,
CITY
and
CONSUL
TANT
agreed
to
amend
the
compensation
and
reimbursement
provisions
of
the

AGREEMENT
and
increase
the

AGREEMENT
amount
from
a
not-to-exceed
amount
of
$1,784,513,
to
a
not-to-exceed
amount
of
$1,844,003,
and
revise
the
Scope
of
Services
in
accordance
with
Attachment

4. 5.

On
February
9,
2023,
CITY
and
CONSUL
TANT
agreed
to
amend
the
compensation
and
reimbursement
provisions
of
the

AGREEMENT
and
increase
the

AGREEMENT
amount
from
a
not-to-exceed
amount
of
$1,844,003,
to
a
not-to-exceed
amount
of
$1,898,140,
and
revise
the
Scope
of
Services
in
accordance
with
Attachment

5. 5
of
15 ATTACHMENT
A
November 19, 2024, Item #12

6. On
February
28,
2023,
CITY
and
CONSUL
TANT
agreed
to
amend
the
compensation
and
reimbursement
provisions
of
the

AGREEMENT
and
increase
the

AGREEMENT
amount
from
a
not-to-exceed
amount
of
$1,898,140,
to
a
not-to-exceed
amount
of
$1,955,140,
and
revise
the
Scope
of
Services
in
accordance
with
Attachment

6. 7.

On
March
2,
2023,
CITY
and

CONSULTANT
agreed
to
amend
the
compensation
and
reimbursement
provisions
of
the

AGREEMENT
and
increase
the

AGREEMENT
amount
from
a
not-to-exceed
amount
of
$1,955,140,
to
a
not-to-exceed
amount
of
$1,999,655,
and
revise
the
Scope
of
Services
in
accordance
with
Attachment

7. 8.

On
June
20,
2023,
CITY
and
CONSUL
TANT
agreed
to
amend
the
compensation
and
reimbursement
provisions
of
the

AGREEMENT
and
increase
the

AGREEMENT
amount
from
a
not-to-exceed
amount
of
$1,999,655,
to
a
not-to-exceed
amount
of
$2,013,514,
and
revise
the
Scope
of
Services
in
accordance
with
Attachment

8. 9.

On
August
1,
2024,
CITY
and
CONSUL
TANT
agreed
to
extend
the
term
of
the

AGREEMENT
for
one
(1)
year
beginning
August
1,
2024,
and
terminating
July 31,
2025. 10.

The
CITY
and

CONSULTANT
now
agree
to
amend
the
compensation
and
reimbursement
provisions
of
the

AGREEMENT
and
increase
the

AGREEMENT
amount
from
a
not-to-exceed
amount
of
$2,013,514.00,
to
a
not-to-exceed
amount
of
$2,685,969.00
and
revise
the
Scope
of
Services
in
accordance
with
Attachment

9. NOW,

THEREFORE,
IT
IS
HEREBY
AGREED
AS
FOLLOWS:

SECTION

1. Section
A
of

EXHIBIT
"A"
("SPECIAL
PROVISIONS")
of
the

AGREEMENT
is
amended
to
read
as
follows:
6 of
15 A.

Scope
of
Services.

Consultant
agrees
to
perform
consulting
services
as
required
by
City,
which
shall
consist
of
the
design
services
further
described
in
the
Scope
of
Services
in
Attachment
1,
3,
4,
5,
6,
7 and
8,
in
addition
to
the
additional
services
submitted
on
September
27,
2024,
which
is
included
in
this
document
as
Attachment
9,
and
incorporated
by
reference,
as
if its
contents
were
fully
set
forth
herein.

Consultant
shall
provide
the
necessary
qualified
personnel
to
perform
the
services.

November 19, 2024, Item #12

SECTION

2. Section
8 of

EXHIBIT
"A"
("SPECIAL
PROVISIONS")
of
the

AGREEMENT
is
amended
to
read
as
follows:

8. Compensation
and
Reimbursement.

City
shall
pay
Consultant
a fee
in
accordance
with
the
Fee
Estimates,
which
are
included
in
this
document
as
Attachments
2,
3,
4,
5,
6,
7,
8 and

9. Total
fee
is
not
to
exceed
$2,685,969.00.

Consultant's
fee
shall
include
and
Consultant
shall
be
responsible
for
the
payment
of
all
federal,
state,
and
local
taxes
of
any
kind
which
are
attributable
to
the
compensation
received.

In
addition
to
said
consulting
fee,
Consultant
shall
be
reimbursed
for
all
reasonable
expenses,
including
lodging,
telephone,
and
travel
(air,
auto,
rail)
necessarily
incurred
in
performance
of
the
services.

Consultant
shall
bill
City
for
such
expenses
as
incurred,
referencing
this
Agreement.

All
expenses
shall
be
itemized
and
supported
by
receipts
for
amounts
in
excess
of
Twenty-Five
Dollars
($25.00).

Statements for
reimbursement
of
expenses
shall
be
paid
within
ten
(10)
days
of
approval
by
City.

All
air
travel
shall
be
billed
at
coach
or
special
fare
rates
.

Reimbursement for
lodging
is
limited
to
travel
from
outside
of
San
Diego
County.

Consultant
shall
receive
prior
authorization
for
air
travel
and
lodging
expenses.

All
other
expenses
shall
be
reimbursed
in
accordance
with
City's
cash
disbursement policies
in
effect
at
the
time
incurred.

SECTION

3. Except
as
otherwise
amended
by
this
EIGHTH

AMENDMENT,
all
other
terms
and
conditions
of
the

AGREEMENT,
and
each
and
every
attachment,
extension,
amendment,
and
exhibit
thereto,
shall
remain
in
full
force
and
effect.
(Remainder
of
page
intentionally
left
blank.)
7 of
15 November 19, 2024, Item #12
IN

WITNESS

WHEREOF,
the
parties
hereto
have
duly
executed
this
EIGHTH

AMENDMENT
on
the
date
first
above
written.

CITY
OF
POWAY
By:
___________
_
Chris
Hazeltine,
City
Manager
ATTEST: Carrie
Gallagher,
CMC,
City
Clerk

APPROVED
AS
TO
FORM:

Alan
Fenstermacher,
City
Attorney
8 of
15 BLACK
&
VEATCH

CORPORATIONS
By:------------
Kevin
N.

Davis,
P.E.,
Vice
President
November 19, 2024, Item #12
LEGEND
- Existing Storm Drain
---•- •• Proposed Buried Water Pipeline
Existing
Clearwell
Tern po rary Pressure
G:,ntrol Valves

CITY OF POWAY LESTER BERGLUND WATER TREATMENT PLANT

OVERVIEW OF PROPOSED CLEARWELL BYPASS SYSTEM
- Proposed Abo ve-Ground Water Pipeline
Proposed Above-Ground Overflo w Pipeline
November 19, 2024, Item #12
),

4.0 MG,
10: 210'
SWO: 16.5
FFE : 849
4,0MG ,
ID! 210'
SWO! 16.5
FFE.: 849
November 19, 2024, Item #12

ATTACHMENT C
November 19, 2024, Item #12

MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF POWAY AND

THE RAMONA MUNICIPAL WATER DISTRICT
This Memorandum of Understanding ("MOU") is made and entered into this __ day of ____ , 2024 by and between the City of Poway, a Municipal Corporation, hereinafter referred to as "City", and the Ramona Municipal Water District, a municipal water district organized under the Municipal Water District Law of 1911, Water Code Section 71000, hereinafter referred to as "District". The City and the District are at times referred to herein individually as a "Party" or collectively as the "Parties".

RECITALS
WHEREAS the City and the District have expressed mutual interest in sharing the District's RAM-3 Flow Control Facility to provide a treated water connection to the City from the San Diego County Water Authority ("Authority") via the District. The City will benefit with a reduction in costs to complete its required treated water connection and the District will benefit by receiving water from the City's Berglund Plant directly via a direct agreement with the City.

WHEREAS the City prepared the City of Poway Treated Water Service Connection Facility Planning Study Addendum -Final Draft dated August 12, 2024; hereinafter referred to as "Planning Study Addendum", and submitted the Planning Study Addendum and a revised project schedule to the State Water Resources Control Board Division of Drinking Water on August 29, 2024; WHEREAS the State Water Resources Control Board Division of Drinking Water approved the revised project schedule in a letter to the City dated October 4, 2024; WHEREAS the City and the District desire to cooperate under the terms of this MOU to advance Alternative 3D of the Planning Study Addendum through the design and environmental phase; WHEREAS the City and the District desire to develop an agreement for future consideration by both Parties for the mutually beneficial two-way transfer of potable water between the City and the District to improve the operational reliability of the City's potable water system and the potential reduction in long term water treatment costs for both parties;
WHEREAS, this MOU does not impose any binding obligations on either the City or the District other than the indemnification and insurance requirements in this MOU, nothing else is binding, nor does it represent a commitment by either Party to take any course of action or approve the Project, as that term is defined herein. The MOU may be terminated at the sole discretion of either Party, at any time, without any obligation to the other Party.

NOW, THEREFORE, in consideration of the terms set forth herein below, the City and the District understand as follows:

1.0 MEMORANDUM OF UNDERSTANDING

STATEMENT OF PURPOSE
This MOU is intended to formalize a commitment between the Parties and provide a framework for cooperation to:
1 12 of 15
November 19, 2024, Item #12

1.1 Develop
an
agreement
for
future
consideration
by
each
Party
to
enable
the
transfer
of
potable
water
from
the
District
to
the
City
and
the
City
to
the
District.

1.2 Facilitate
the
completion
of
the
engineering
design
and
environmental
review
of
the
Poway
Treated
Water
Facilities
and
Redundant
Pipeline
Project
-
WTR0028
("Project"),
also
described
as
Alternative
3D
in
the
Planning
Study
Addendum
with
the
following
exception
to
the
addendum:

1.2 .1
The
District
can
provide
20 cfs
to
the
City
during
non-peak
times.

During
peak
times
(summer,
red
flag
warning
days),
the
District
needs
up
to
18 cfs
through
RAM-3
to
meet
system
and
fire
flow
demands
. This
would
limit
the
City's
flow
to
14 cfs
during
peak
times.

1.3 This
MOU
represents
the
understanding
and
intentions
of
the
City
and
District,
and
is
not
binding
except
for
the
indemnification
and
insurance
requirements
in
this
MOU.

2.0 CITY

OBLIGATIONS
City
agrees
to:

2.1 Prepare
the
engineering
design
documents
for
the
Project.

2.2 Act
as
Lead
Agency
and
prepare
any
documentation
that
may
be
required
for
compliance
with
the
California
Environmental
Quality
Act
(CEQA).

2.3 Prepare
the
bidding
documents
and
publicly
advertise
the
Project
for
construction
bids.

2.4 Provide
all
liaison
and
communications
with
the
State
Water
Resources
Control
Board
Division
of
Drinking
Water
(DDW)
and
the
Authority.

The
District
will
jointly
participate
in
all
communications
with
DDW
and
the
Authority
and
will
be
invited
to
DDW
and
Authority
meetings
on
the
Project.

3.0 DISTRICT

OBLIGATIONS
District
agrees
to:

3.1 Review
the
engineering
design
documents
for
the
Project.

3.2 Review
and
provide
any
comments
on
any
CEQA
documentation.

3.3 Act
as
a Responsible
Agency
for
the
Project,
pursuant
to
CEQA.

4.0 MUTUAL

OBLIGATIONS
City
and
District
both
agree
to:
2 13
of
15 November 19, 2024, Item #12

4.1 Share
facilities
technical
and
operating
data/record
drawings
and
cooperate
and
collaborate
on
the
design
and
environmental
review
for
the
Project.

4.2 Collaborate
on
the
drafting
of
a
new
water
exchange
agreement
between
the
Parties
and
the
Authority
for
future
consideration
by
the
Parties
.

4.3 Meet
regularly
to
discuss
the
Project
and
potential
terms
of
the
new
water
exchange
agreement.

4.4 Provide
access
to
their respective
facilities
as
needed
for
design
of
the
Project with
appropriate
advance
notification
from
the
requesting
party
.

4.5 Grant
property
access
for
preparation
of
design
and
environmental
documents
for
the
Project.

4.6 Bear
their
own
costs
to
perform
their responsibilities
under
this
MOU.

5.0 INDEMNIFICATION

5.1 City
agrees
to
defend
(with
attorneys
approved
by
the
District)
, indemnify
and
hold
harmless
the
District,
its
Board
of
Directors,
employees
, and
agents
from
any and
all
liability
or
loss
arising
in
any
way
out
of
the
City's
performance
of
the
obligations
specified
in
this
MOU,
including
but
not
limited
to
any
claim
due
to
injury and/or
damage
sustained by
City's
employees
or
agents
during
the
course
of
their
duties
for
the
City.

5.2 District
agrees
to
defend
(with
attorneys
approved
by
the
City),
indemnify
and
hold
harmless
the
City
, its
City
Council,
employees,
volunteers,
and
agents
from
any
and
all
liability
or
loss
arising
in
any
way
out
of
District's
performance
of
the
obligations
specified
in
this
MOU,
including
but
not
limited
to
any
claim
due
to
injury
and/or
damage
sustained
by
District's
employees
or
agents
during
the
course
of
their
duties
for
the
District.

6.0 INSURANCE
The
Parties
agree
to
secure
and
maintain
insurance
coverage
for
risks
that
may
arise
out
of
the
terms,
obligations,
operations,
and
actions
as
set
forth
in
this
Agreement,
including
but
not
limited
to
public
entity
liability
insurance
. The
acquisition
of
excess
insurance
or
the
maintenance
and
operation
of
a self
insurance
program
may
fulfill
the
insurance
requirement.

7.0 TERM
OF

AGREEMENT
This
MOU
will
commence
upon
its
date
of
execution
and
shall
remain
in
effect
until
terminated
by
either
Party,
or
superseded
by
a new
water
exchange
agreement.

Either
Party
may
terminate
this
MOU,
in
its
sole
discretion,
upon
sixty
(60)
days
advance
written
notice
to
the
other
Party,
and
following
that
termination,
neither
Party
shall
have
any
obligation
toward
the
other.

This
MOU
may
be
modified
upon
the
written
mutual
agreement
of
the
Parties.

Clarifications
ofresponsibility,
timing,
and
coordination
of
the
activities
outlined
in
this
MOU
or
discussion
of
issues
that
have
not
been
addressed
in
detail
in
this
MOU
shall
be
made
in
good
faith
between
the
parties
as
necessary
during
the
course
of
the
MOU,
and
may
be
authorized
by
the
City
Manager
or
General
Manager
of
the
City
and
the
District,
respectively,
without
requiring
City
Council
or
Board
approval.

WITNESS

WHEREOF,
the
Parties
have
executed
and
entered
into
this
MOU
as
of
the
date
herein
above
set
forth.
3 14
of
15 November 19, 2024, Item #12
RAMONA

MUNICIPAL
WATER

DISTRICT
President
of
the
Board
ATTEST: Clerk
of
the
Board
15 of
15 2
CITY
OF
POWAY
Mayor,
City
of
Poway
ATTEST: City
Clerk

APPROVED
AS
TO
FORM:

City
Attorney
November 19, 2024, Item #13
I .
/ ~ I.
~ ~-----~~·;~: /
---
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AG EN DA REPORT City of Poway
November 19, 2024
Honorable Mayor and Members of the City Council
('::,._ )
Julie Procopio, Director of Development Services -1-1~
Kevin Parker, AICP, Senior Planner •/ , '"
i'-I (858) 668-4656 or [email protected]

CITY COUNCIL
Pre-Development Conference 24-0002, a Proposal for Specific Plan Amendment to Reduce Commercial Space Obligation for a Proposed 47-Townhomes Mixed Use Development within the Town Center Land Use District of the Poway Road Specific Plan, APNs 317-101-04 and 317-101-05
lntracorp Homes (Applicant) is requesting a Pre-Development Conference (PDC) for a proposed 2.58- gross acre development consisting of 47 three-story townhomes, with two townhomes containing ground floor commercial spaces, and six townhomes containing ground floor home offices along Poway Road. The proposal would require an Amendment to the Poway Road Specific Plan (PSRP) to reduce the minimum required commercial space along Poway Road. The project includes a lot-merger of two parcels within the Town Center (TC) Land Use District of the PRSP. The review of PDC 24-0002 is advisory only. The City Council will not render any decision.

Recomm·ended Action:

It is recommended the City Council provide input and direction regarding the Applicant's proposal.

Discussion:

The proposed project site is located at 13044 and 13056 Poway Road within the TC land use designation of the PRSP. The project consists of two adjacent parcels owned by the Frederickson Family Trust. Table 1 below indicates the existing conditions and current land uses for each parcel of the project site:
317-101-04-00
317-101-05-00
13044 Poway Rd.
13040/13056 Poway Rd.
60,113
38,333
Contractor equipment rental facility
Abandoned SFR/ Vacant RV rental facility
The project site is located on the north side of Poway Road and to the west of Tarascan Drive. A zoning/location map is included with the attachments (Attachment A). Table 2 generally describes the land uses surrounding the project site:
1 of28
November 19, 2024, Item #13
Table
2-Surrounding
Land
Uses
Direction
Land
Use
Designation
'.
: •
•
.
•.
•. Current
Land
Uses
North East South West
Project
Summary
Residential
Single
Family-7
(RS-7)
zone
Town
Center-PRSP
Town
Center-PRSP
Town
Center-PRSP
Single-Family
Residential
3-Story
affordable
senior
apartment
complex
44 units
Commercial
office/retail
Narrow
lot,
retail
firewood
facility
The
proposed
project
includes
a lot-consolidation
and
a condo
map
to
subdivide
the
47 individual
for
sale,
three-story
townhomes
with
a
Tentative
Tract
Map
(TTM).

Additionally,
a
Development
Review
(DR)
would
be
required
for
the
construction
of
the
town
homes.

The
conceptual
site
plan
(Attachment
B)
consists
of
ten
build
ings.

Seven
buildings
each
containing
a
row
of
five
town
home
units,
and
three
buildings
each
containing
a
row
of
four
townhome
units.

Each
townhome
unit
contains
three
bedrooms,
and
a
ground
floor
two-car
garage
. The
proposed
site
plan
includes
exterior
landscaping,
streetscape,
and
four
landscaped
common
areas
wh
ich
separate
eight
of
the
buildings.

Floor
plans
for
the
two
buildings
along
Poway
Road
(Attachment
C)
show
a total
of
eight
ground
floor
spaces.

Two
of
the
commercial
ground
floor
spaces
(one
in
each
building)
are
approximately
430
square
feet
in
size
(30'
wide
x 14'-6"
deep).

The
remaining
six
ground
floor
spaces
are
labelled
as
"home
office"
and
are
approximately
110
square
feet
in
size
(1
0'
wide
x
11'
deep),
with
attached
restrooms.

As
proposed,
the
project would
require
a
Specific
Plan
Amendment
(SPA)
as
it
does
not
fully
comply
with
development
standards
for
commercial
spaces
along
Poway
Road
established
in
the
PRSP.

Architecture The
three-story
townhomes
have
a
Spanish
Colonial
Revival
architectural
theme
with
ornamental
wrought
iron
balconies,
arched
entries,
and
tile
roof
tops.

According
to
the
proposed
renderings
(Attachment
D),
the
five-sided
architecture
provides
changes
in
plane
with
the
implementation
of
recesses,
projections,
and
roof
overhangs.

The
color
palette
is
compatible
with
brown
and
beige
earth
tones,
with
articulation
to
provide
visual
relief.

Incentives The
project
proposes
consolidation
of
two
lots.

The
Applicant
has
requested
an
incentive
be
granted
in
exchange
for
the
lot
consolidation
to
increase
the
building
height
from
35-feet
and
two
stories
to
36'-7"
and
three
stories.

The
PRSP
provides
the
City
Council
the
discretion
to
approve
building
heights
up
to
38-feet
with
lot
consolidation.

If
the
Applicant
elected
to
provide
two
community
benefits,
the
PRSP
provides
the
City
Council
the
discretion
to
approve
a 40-foot
building
height.

Poway
Road
Specific
Plan
Analysis
Compliance
with
the
TC
development
standards
of
the
PRSP
is
shown
in
Table
3 and
Table
4:
2 of
28 November 19, 2024, Item #13
Table 3-Town Center Development Standards
Development Standard Required . • '·Proposed -Conforms':

Density (lot consolidation bonus) 30 du/acre 21 du/acre Yes 47 units/2.26 net acres
Minimum Setbacks:

Front (Ground floor retail/commercial) 5 feet 5 feet 1 Yes Front (Ground floor residential) 10 feet 5 feet No
Rear (Adjacent residential) 15 feet 32 feet Yes
Interior Side (Ground floor residential) 10 feet 10 feet Yes ----· ----
Height (lot consolidation bonus) 3-stories/ 38 feet 3-stories/ 36.7 feet Yes ' Maximum Lo-t Area C~verage -
-
55% 39% Yes
Minimum Landscaped Area (Required 10%ofnet 10,387 SF Yes setbacks excluded) developable site
Parking Spaces Required 118 spaces 118 spaces Yes
PRSP Vision
According to PRSP Figure 2.1, the proposed project site has been identified as one of the three key catalytic sites of the PRSP. The TC district is described as "a vibrant, family-oriented, pedestrian-friendly "Main Street" environment with a mix of commercial and residential uses supported by a thriving civic district .... This pedestrian-scale shopping, dining, and living district will be the Town Center that distinguishes Poway as a premier location for residents and visitors."The TC development standards also require:
• Ground-floor retail/commercial with residential or office above to promote activity and interaction with the street through active frontage.
• Pedestrian-oriented uses, such as retail and restaurants, at the ground level of new development fronting Poway Road.

To achieve this vision, the PRSP establishes development standards focused on the creation of viable ground floor commercial spaces. Table 4 describes the proposed ground floor commercial/ home office spaces in comparison to the PRSP development standards:

Table 4-TC-PRSP Ground Floor Commercial Space Evaluation Criteria Poway Road Specific Pian"' Prop'osal Conforms:
% Commercial Frontage
DE:pth
Width
Ceiling Heights
Anticipated Commercial
Square Footage (SF)
75% commercial
40'
75' max for one store front
14' retail
12' office
6,360 SF* commercial
* Calculated based on 75% of frontage x 40' depth
31 % commercial
62% home office
13'-6"
33'
9' commercial
9' office
860 SF commercial
660 SF home office
i No
I No
Yes
No
No
The Applicant's project narrative (Attachment E) describes how the project intends to meet the vision of the PRSP and states in part "this ground floor component will promote a mix of uses such as coffee shops, delis, boutiques, small offices, and yoga studios." The proposed ground floor office spaces are 3 of 28
November 19, 2024, Item #13
designed
to
have
a separate
entrance
fronting
Poway
Road
from
the
residential
entrance.

The
ground
floor
spaces
are
separated
from
the
townhome,
enabling
the
homeowner
the
potential
to
rent
the
space
to
a
business
owner.

To
ensure
the
eight
ground
floor
spaces
along
Poway
Road
remain
commercial
uses
in
perpetuity,
the
Applicant
anticipates
the
CC&Rs
would
prohibit
residential
use
within
those
spaces.

Considerations The
Applicant
has
been
working
with
City
Staff
to
adjust
their
project
to
more
closely
align
with
the
PRSP.

The
original
concept
included
all
home
office
spaces
along
Poway
Road
and
has
been
improved
to
include
the
two
proposed
commercial
suites.

A
separate entrance
has
been
added
to
the
remaining
six
ground
floor
home
office
spaces.

While
the
revisions
have
brought
the
project
closer
to
compliance
with
the
PRSP,
the
current
project
does
not
fully
comply
with
the
PRSP.

The
City
Council's
input
is
requested
on
the
proposal,
including
the
following
items:
•
PRSP
Design
Standards
include
a minimum
ground
floor
commercial
depth
of
40 feet
with
14-foot
ground
floor
ceiling
heights
for
retail
and
restaurant
uses.

Are
the
two
proposed
ground
floor
commercial
spaces
which
are
430
square
feet
in
size
(30'
wide
x
14'-6"
deep)
with
9-foot
ceiling
heights
adequately
designed
to
attract
the
desired
businesses?
•
While
financial
and
professional
office
uses
are
permitted
within
the
TC
district,
PRSP
design
standards
direct
these
uses
to
be
on
the
second
story
to
reserve
ground
floor
areas
for
more
active
uses.

Are
the
six
ground
floor
home
offices
consistent
with
the
PRSP
vision
for
ground
floor
commercial
use?
Are
the
home
office
spaces
which
are
110
square
feet
in
size
(1
O'
wide
x 11'
deep)
adequately
design
to
attract
the
desired
businesses?
•
Are
homeowners
best
suited
to
lease
and
manage
the
proposed
ground
floor
commercial
spaces,
and
home
offices?
•
Is
the
location
of
the
proposed
off-street
parking
conducive
for
the
commercial
uses?
•
Is
there
support
for
a Specific
Plan
Amendment
to
the
PRSP
to
amend
the
ground
floor
commercial
development
standards
within
the
TC
land
use
designation?
Next
Steps:

If the
Applicant
chooses
to
submit
an
application
in
pursuit
of
this
project,
it
is
with
the
understanding
the
City
Council
has
made
no
representation
upon
which
the
Applicant
may
rely.

The
Agreement
of
Understanding
is
included
as
Attachment
F.

Environmental
Review:

A
PDC
is
not
a
project,
and
no
further
action
is
required
pursuant
to
the
California
Environmental
Quality
Act
(CEQA).

Fiscal
Impact:

No
fiscal
impact.

Public
Notification:

The
PDC
is
intended
to
request
the
City
Council's
feedback
on
a
conceptual
proposal.

Once
a
4 of
28 November 19, 2024, Item #13
formal application has been submitted, public notification will be conducted in accordance with the Poway Municipal Code.

Attachments:

A. Zoning/Location Map
B. Conceptual Site Plan
C. Proposed Floorplans
D. Architectural Elevations and Building Renderings
E. Narrative and Streetscape Rendering
F. Agreement of Understanding
Reviewed/Approved By:

CVt ~
Wen~aserman
Assistant City Manager
5 of28
Reviewed By:

Alan Fenstermacher
City Attorney
November 19, 2024, Item #13
Tuscarora D~
RR-C
Papago·Dr
RS-7
1--',--l.---.J.,l
Subject Locations:

APN 317-101-04 and 317-101-05 i-t.---.---:._;..:..:_~
Ilene St ,~-.----.---.--,--__ s~
-·
(0 -,
lt--t--+------1-Rs-7 (/)
,-+
Slack St
• NORTH
6 of 28
,_
u
(/)
:::i

0..

E
..?;,
0 Poway Rd
TC
Olympus Cir
Olympus Cir
+-'
u
(!J
+-'
cu
:::i
a
D
L-----1---~G.iyic Center Dr

OS-R PF
City of Poway
Zoning / Location Map
''
0 Item: PDC24-0002 --=~-
0 250 500

ATTACHMENT A
1,000
Feet
D
0:::

C
0 ~
0 co
RA-
November 19, 2024, Item #13
Site
Summary
:

Toal
Homes
Rcsldentbil
Puking
Required:

Residentbl 2.0
Sp.aces/
lBR
,c:
17 0.5 Sp.aces/
Un
it
K
]7
Total
Required
:7◄
:18.S ,'2.5
•93(1.S,I)
Parkin&
Prcwid
ed:

Rcsic:lenti.il Gu-~ie
Spaces
Unc0¥1::red
Sp.101:J
Toul
Provided
:7◄
;i, ,93
(l.S
,I)
Open
Space
:

Und
sape
Coveniie
Required
(10¾
of
Net
Ocvdop1blc
Aru)
::t9
,828SF
Prorided
1 : ±10,583
SF
Muk
ih
mify
w/
Ground
Floor
Commerdd
:37 : 10
Muki&mily
w/
Ground
Ao«
Commercbil
Muftibmily
w/
Ground
Floor
Commercial
Toul GronSiteATQ Gron
Densley
Net
She.Area
Net
Density
:47 ::t

2.58Aaes
: :t
18 .2 Homes
per
Aae
::t206Aaes : :t

22.8 Home,
per
Acre

2.0 Sp.aces/
lBR
,c:
10 : 20

0.5 Sp.aces
I Un
it x
ID
:
5 Toal
Required
: 2S
(l.5
:1)
G1n1eSp1ces
:20
Uncov,:~dsp.aoes
S
Toal
Provided
: 2.5
(l..5
:1)
o,,.,,
'''"'
~
Requ
ire
d:
12S
Sf/
Unin
◄6
: :t
5,750
SF
Provided
::tl0,040SF
lot
Coverage
(Net
Site
Arc.a
•
89,BSl
SF)
: lB
,l◄◄
SF(
◄2.67%)
~, I 1--, I~
I I
J
..
)
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4-Plex.
typical
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CONCEPTUAL
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0 10
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November 19, 2024, Item #13

INTRACORP
Bui
lding
the
Ex
traordi
nar
y
13044
Poway-
47 Townhomes
Project
Description
The
proposed
project
at
13044
Poway
Road
consists
of
47 residential
3-story
townhomes
on
a

2.58 acre
(gross*)
site.

There
are
10 buildings
with
3 different
layouts
across
the
site
.

Buildings
2-9
contain
two
primary
floorplan
types
for
this
community.

Plan
1 is
a
1,345
SF
carriage-unit
townhome
featuring
a 2-
car
side
by
side
garage,
3 bedrooms
and

2.5 bathrooms
. Plan
2 is
an
approximately
1,878
SF
townhome
which
features
a
2-car
side
by
side
garage,
3 bedrooms
and

3.5 bathrooms
. Plan
2 will
utilize
the
first
floor
space
as
a
home
office.

Buildings
5,
6 and
9 are
designed
as
4-plexes
with
one
Plan
1 and
three
Plan
2s
. Buildings
2-4
and
7-8
are
designed
as
5-plexes
with
one
Plan
1 and
four
Plan
2s
.

Building
1 and
10 are
uniquely
laid
out
5-plexes
that
consists
of
three
Plan
2 town
homes
and
introduces
a
Plan
3 and
Plan

4. Plan
3 is
a 2
,149
SF
townhome
featuring
a
2-car
side
by
side
garage
, 3
bedrooms
and

2.5 bathrooms
and
large
ground
floor
commercial
space
with
a powder
room.

Plan
4 is
a
1,678
SF
carriage-unit
townhome
which
features
a
2-car
side
by
side
garage,
3 bedrooms
and
2 bathrooms
. This
unit
does
not
contain
any
ground
floor
commercial
space
because
it
has
been
merged
into
the
Plan
3 design.

Both
of
these
buildings
have
ground
floor
commercial
and
office
space
on
the
first
floor
fronting
Poway
Road
helping
to
activate
the
street
level.

Architecture The
Architectural
theme
for
the
buildings
is
Spanish
Mission
Architecture
. This
theme
is
executed
through
the
use
of
s-tile
gable
and
hip
roofs,
balconies
with
exposed
timber
columns,
corbels
and
headers.

Between
these
elements
on
the
balconies
there
is
ornamental
wrought
iron
balcony
railing
. Additional
arch
itectural
accents
on
the
building
reflect
a
balanced
use
of
arched
entr
ies,
wood
headers,
corbels,
pot-shelves
and
shutters.

These
accents
combine
with
the
single-hung
vertical
aspect
windows
that
is
consistent
with
Spanish
themed
architecture.

Well-placed
window
recesses
also
provide
depth
and
shadow-line
to
each
of
the
buildings
.

The
first
two
buildings
on
Poway
Road
are
positioned
to
embrace
the
town
center
ambiance
while
creating
the
commercial
and
office
space
on
the
first
floor.

The
buildings
within
the
rest
of
the
site
are
positioned
on
central
courtyards
to
provide
a communal-feel
of
open
space
and
passive
recreational
use
in
these
courtyards
that
is
peaceful
and
pleasant
for
future
homeowners.

The
landscape
open
space
requirement
of
9,828
SF
{10%
of
the
net
developable
area)
is
exceeded
with
a total
landscape
open
space
of
10,583
SF.

The
private
open
space
requirement
of
125
SF
per
townhome
is
significantly
exceeded
with
a total
10,440
SF
of
private
open
space
. These
open
space
areas
demonstrate
the
commitment
to
the
indoor/
outdoor
living
spaces
that
are
important
to
historical
context
of
Spanish
Mission
Architecture.

Land
Use
Designation
-Town
Center
The
Town
Center
land
use
designation
aims
to
create
a distinct
Town
Center
district
which
supports
a
mix
of
land
uses,
with
unique
shopping,
dining
and
entertainment
uses
and
vibrant
street
activity
well
integrated
with
housing
, civic
buildings,
cultural
uses
and
parks
and
other
public
spaces.

The
Town
Center
is
distinguished
by
a distinct
and
exciting
'Main
Street
' character,
with
pedestrian-oriented
buildings.

A
mix
of
uses
will
draw
people
during
the
day,
evenings
and
on
the
weekends.

Three-story
21 of
28 ATTACHMENT
E
November 19, 2024, Item #13
mixed-use
buildings
which
front
Poway
Road
will
provide
a commercial
ground
floor
component
that
will
provide
active
storefronts,
boutiques,
restaurants,
cafes,
delis,
and
small
offices
. Integration
of
residential
uses
will
provide
housing
in
walkable
proximity
to
retail
and
commercial
uses.

Wide
sidewalks,
consistent
street
tree
planting,
public
plazas,
and
well-designed
buildings
will
support
the
pedestrian
character
and
walkability
of
the
Town
Center.

The
proposed
project
has
two
three-story
mixed-use
buildings
with
a commercial
ground
floor
and
office
component
and
residential
uses
above
fronting
Poway
Road.

This
ground
floor
component
will
promote
a
mix
of
uses
such
as
coffee
shops,
delis,
boutiques,
small
offices,
yoga
studios,
etc.
which
will
activate
the
street
with
pedestrian
activity,
outdoor
seating
areas,
and
landscaping.

The
buildings
will
be
human
scaled
and
designed
to
achieve
this
pedestrian
friendly
streetscape
on
the
ground
floor
with
storefront
glass
windows,
entrances
directly
facing
the
street,
and
visually
appealing
building
facades.

To
ensure
the
intent
of
this
ground
floor
commercial
space
activates
the
street
and
helps
to
create
a
'Main
Street'
feel
to
Poway
Road,
the
CC&Rs
will
restrict
any
residential
uses
in
this
space.

The
layout
of
the
commercial
space
is
designed
to
have
a separate
entrance
fronting
Poway
Road
from
the
residential
entrance.

It
may
also
be
completely
separated
from
the
town
home,
enabling
the
owner
to
rent
the
space
to
a business
owner
. Signage
on
the
building
frontage
will
be
permitted
for
the
commercial
spaces.

The
HOA
for
the
community
will
manage
all
landscape
maintenance
throughout
the
community
and
the
streetscape
elements
fronting
Poway
Road.

Parking The
site
complies
with
the
required
residential
parking
of

2.5 spaces
per
town
home,
based
upon
the
37 town
homes
plotted
on
the
site
. The
additional
10 mixed-use
town
homes
also
adhere
to
the
parking
requirements
of

2.5 spaces
per
unit
. There
are
a total
of
25 parking
spaces
available
for
the
mixed-use
townhomes
along
Poway
Road
due
to
the
2-car
side
by
side
garages
and
the
additional
5 parking
stalls
along
the
project's
center
drive
adjacent
to
Building

9. This
results
in
a parking
ratio
of

2.5 parking
stalls
for
the
10 mixed-use
units.

The
balance
of
the
site
parking
also
provides
a total
of
19 additional
onsite
parking
spaces
for
the
37 town
homes
resulting
in
a ratio
of

2.5 parking
spaces
per
town
home
which
includes
the
2-car
garage
for
each
townhome.

Lot
Consolidation
/ Building
Height
The
13044
Poway
Road
project
is
performing
a
lot
consolidation
of
two
existing
lots.

As
such,
there
are
a few
development
incentives
for
the
proposed
project
. The
building
height
would
likely
be
one
of
these
incentives.

In
order
to
portray
the
Spanish
Mission
Architecture
accurately
with
the
proposed
buildings
featuring
pitched
gable
and
hip
roofs,
we
would
need
to
have
a
minimum
allowed
height
of
38'
from
assumed
finish
grade.

Background
/
Notes
The
site
is
currently
utilized
by
Sunbelt
Rentals
for
temporary
equipment
rental
that
has
been
stored
on
the
subject
site.

Sunbelt
Rental's
lease
will
terminate
in
June
2025
at
which
time
we
plan
to
move
forward
with
our
proposed
development.

The
surrounding
uses
to
the
13044
Poway
Road
property
consist
of:

North
-
Landscaped
slope
and
existing
residential.

East
-
Residential
age-qualified
development.

South
-
Poway
Rd
and
Residential
Town
homes.

West-An
existing
vacant
lot
between
our
site
and
the
Thrift
Store
(Salvation
Army)
building.
22 of
28 November 19, 2024, Item #13
*Please be advised that the gross acreage of the site accounts for the lot extending to the centerline of Poway Road. The Net Acreage of this site is 2.06 acres. The site plan that has been submitted provides this information in the Site Summary Table.
23 of 28
November 19, 2024, Item #13
Conceptual Imagery of Project Elevations
mn
The ground floor commercial space helps to active the street with increased pedestrian activity, seating areas, wide sidewalks, canopy trees and landscaping.
24 of 28
November 19, 2024, Item #13
I Articulated
facades
and
storefront
glass
help
to
create
visual
interest
along
the
street
frontage.

The
mixed-use
buildings
are
anchored
on
the
ground
floor
with
a commercial
component
with
residential
uses
above.
25 of
28 November 19, 2024, Item #13
The
Spanish
Mission
Architecture
is
executed
through
the
use
of
s-tile
gable
and
hip
roofs,
balconies
with
exposed
timber
columns,
corbels
and
headers.

This
architectural
theme
is
prominent
along
through
the
Town
Center
district
on
Poway
Road
.
26 of
28 November 19, 2024, Item #13

ATTACHMENT
F
NEXT
PAGE
27 of
28 November 19, 2024, Item #13

AGREEMENT OF UNDERSTANDING
City Council for the City of Poway, hereinafter referred to as "City" and lntracorp SoCal-1 LLC hereinafter referred to as "Proponent" enter into this Agreement of Understanding based upon the following facts:

Proponent owns or has an equitable interest in land described by tax Assessor's Parcel Number(s) 317-101-40-00 and 317-101-05-00. Proponent desires to develop this property in accordance with the will of the City and without the expense of a protracted development.

City is concerned that Proponent will create development plans unsatisfactory to City and consume time and effort of City employees needlessly on unsatisfactory development plans unless City assists in directing Proponent. Based upon the above mentioned facts, City will grant Proponent a hearing prior to filing any application for development upon the following understanding:
a. City will render no decision with regards to any development proposal or part thereof.
b. City will receive no evidence, specific in nature, in support of a particular development plan.
c. City will make no representations that will obligate the City to render a decision in favor of or against any development proposal or part thereof Proponent may subsequently submit.
d. If any development proposal is subsequently submitted, Proponent will proceed at its sole and exclusive risk with the understanding that City has made no representations upon which Proponent may rely.

Dated: 10/18/2024 Proponent:
28 of 28 ATTACHMENT F
Dlgitally;signed by Sarah Klaustermeler
ON: C=US.

Sarah Klaustermeief ~~~k:a~:~~~:;~::i:~orphomos.CQm,
Signature

Poway City CouncilNovember 19, 2024

Poway City Council
November 19, 2024