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Community & Economic Development
Department
DISPOSITION OF
3870 OTTAWA AVENUE AND
1910 UNIVERSITY AVENUE
City Council
November 7, 2023
RiversideCA.gov
2 BACKGROUND
1. In 2006, the City Council approved the former
Redevelopment Agency acquisition of the Big L Motel,
located at 3870 Ottawa Avenue, also identified as Assessor’s Parcel Number 221-061-002 (Property 1).
2. In 2007, the City Council approved the former
Redevelopment Agency acquisition of the Welcome Inn
Motel, located at 1910 University Avenue, also identified as Assessor’s Parcel Number 221-052-002 (Property 2).
Subsequently, the motel structures were demolished, and the properties are currently vacant.
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3 Property 2: 1910 University AvenueProperty 1: 3870 Ottawa Avenue Parcel Size: 20,623 square feetParcel Size: 16,440 square feet Zoning: Mixed-Use Urban and Specific Plan
(University Avenue) Overlay Zones
Zoning: Mixed-Use Urban and Specific Plan
(University Avenue) Overlay Zones
General Plan: Mixed Use - UrbanGeneral Plan: Mixed Use – Urban
PROPERTIES
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4 1. May 26, 2021: Staff issued a Notice of Availability to the required public agencies and all affordable housing
developers who registered with the State’s Department of Housing & Community Development (HCD) pursuant to AB
1486.
2. July 26, 2021: Staff received a development proposal from Praxis Development Group, LLC to construct townhomes
on Ottawa Avenue and a mixed-use multi-family project
on University Avenue with the required 25% affordable
housing units on each property.
DISCUSSION
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5 3. Both properties were included in the 6th-cycle update of the Housing Element to the General Plan.
4. As part of the update, both properties were rezoned to Mixed-Use Urban (MU-U) designations, which permits
densities up to 60 dwelling units per acre.
5. As the proposed projects will set aside a percentage of total units as affordable units, they are also be eligible for a density bonus over what is otherwise permitted in the MU-U Zone pursuant to state law.
DISCUSSION
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6 Property 2:
1910 University Avenue
Property 1:
3870 Ottawa Avenue
Purchase Price: $251,100Purchase Price: $198,900
Proposed Project: 49 housing units,
small retail
Proposed Project: 12
townhomes
Affordable Housing: 100%Affordable Housing: 25%
Estimated Job Creation: 350
Annual Property Tax Revenue: $90,000
Total Investment: $48,000,000
PRAXIS DEVELOPMENT PROPOSAL
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7 INCOME LIMITS
7654321No. of Persons
$34,700$32,450$30,200$27,950$25,200$22,400$19,60030% AMI $57,800$54,100$50,350$46,600$41,950$37,300$32,65050% AMI $69,360$64,920$60,420$55,920$50,340$44,760$39,18060% AMI $92,450$86,500$80,550$74,550$67,100$59,650$52,20080% AMI
RENT LIMITS
60% - 80% of Median50% of MedianUnit Size
$1,040$816Studio
$1,116$874One-Bedroom
$1,341$1,048Two-Bedroom
$1,540$1,211Three-Bedroom
$1,699$1,352Four-Bedroom
$1,856$1,491Five-Bedroom
2023 INCOME AND RENT LIMITS
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8 1. Combined sales price = $450,000
2. Schedule of Performance
3. The Purchase, Sale, and Development Agreements
will incorporate covenants which will be recorded
on both properties to ensure Praxis will provide the
committed affordable housing units to low-income
qualified households for 55 years.
PRAXIS AGREEMENT KEY PROVISIONS
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9 UNIVERSITY AVE.
OTTAWA AVE.
CONCEPTUAL PLANS
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10 UNIVERSITY AVE.
OTTAWA AVE.
CONCEPTUAL PLANS
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11 Strategic Priority 2, Community Well-Being Goal 2.1: facilitate the development of a quality and diverse housing supply that is available and affordable to a wide range of income levels.
Strategic Priority 3, Economic Opportunity Goal 3.3: Cultivate a business climate that welcomes innovation, entrepreneurship, and investment.
Cross-Cutting Threads
STRATEGIC PLAN ALIGNMENT
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12 That the Successor Agency:
1. Adopt a resolution authorizing execution of Purchase, Sale and Development Agreements with Praxis Development Group, LLC for the disposition of 3870 Ottawa Avenue for $198,900 and 1910 University Avenue for $251,100 for the development of multi-family affordable housing projects;
2. Recommend the Countywide Oversight Board adopt a Board resolution authorizing the execution of the same Agreements with Praxis; and
3. Authorize the Executive Director, or designee, to take any, and all actions, including making minor an d non-substantive modifications, and execute the Agreements with Praxis.
RECOMMENDATIONS
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13 SCHEDULE OF PERFORMANCE
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