DATE: APRIL 18, 2023
DEPARTMENT: PUBLIC WORKS DEPARTMENT
COMMUNITY DEVELOPMENT DEPARTMENT
FROM: DAVID JACOBS, PE, PLS, PUBLIC WORKS DIRECTOR
MEGAN HUNTER, CDD DIRECTOR
BY: ADRIANA ROBLES, PE, CFM, CITY ENGINEER
TITLE: TRANSFER OF A PORTION OF CERTAIN REAL PROPERTY FROM 545 WORK STREET LP AT 545 WORK STREET TO THE CITY OF SALINAS RECOMMENDED MOTION:
A motion to approve a Resolution accepting a Quitclaim Deed for a portion of certain real property located at 545 Work Street to the City of Salinas and authorizing and directing the Mayor of Salinas to execute a Certificate of Acceptance, transferring the rights, title and interest in and to a portion of land described in the Quitclaim Deed located at 545 Work Street to the City of Salinas.
EXECUTIVE SUMMARY:
Since 2020, the HCD Homekey Program was created to expand housing for people experiencing homelessness. The City of Salinas in partnership with Shangri-La Industries, LLC (Shangri-La) and Step Up on Second, Inc. (Step Up) were awarded $9.2 million in funding from the HCD Homekey Program to acquire and convert the 103-room Good Nite Inn hotel into 101 units of interim housing in the first year and permanent supportive housing thereafter for those experiencing chronic homelessness. In order for the Step Up in Salinas Project, also known as the Salinas Homekey Project, to obtain 85 Section 8 Project Base Vouchers (PBVs) and clear NEPA environmental review, the property must be subdivided to remove any portion of land located within the regulatory floodway.
BACKGROUND:
In July 2020 the California Department of Housing and Community Development (HCD) released a Notice of Funding Availability for the Homekey Program which made funding available to rapidly sustain and expand the inventory of housing for people experiencing homelessness. The Homekey Program allowed public agencies to purchase motels and hotels for conversion to permanent housing. On October 13, 2020, the City Council authorized the City to enter into a Co-Application through HCD with Shangri-La and Step Up on Second for the Good Nite Inn Hotel located at 545 Work Street (Property) (Resolutions No. 21963 and 21964).
In October 2020, the project was awarded $9.2 million in HCD Homekey Program funds and in December 2020 ownership of the Good Nite Inn was transferred to the 545 Work Street LP, a limited partnership (Document No. 2020073533). On January 6, 2022, the City of Salinas and 545 Work Street LP signed a Regulatory Agreement and Declaration of Restrictive Covenants (Document No. 2022022399).
DISCUSSION:
In conjunction with the previously described process, Step Up and Shangri-La had submitted an application on August 19, 2020, to the Housing Authority of the County of Monterey (HACM). On November 20, 2020, HACM awarded eighty-five (85) Section 8 PBVs to the project with an approximate value of $1,378,020 dollars annually. The PBVs will be provided for a period of twenty-five (25) years and will result in a grand total of $34,450,500 towards the development and operations of the Project.
The building is currently partially occupied and partially remodeled. To convert the facility for its intended use of permanent housing, further improvements to the property are required. Working through the NEPA environmental review with HUD and HACM, the City was informed that the project parcel was to be completely outside of the regulatory floodway otherwise the 85 HUD Section 8 PBVs would not be authorized for the project. In accordance with HUD’s Floodplain Management regulations at 24 CFR 55.1(c), HUD may not approve a project if any area of the site is located in the regulatory floodway. Per HUD’s directive, if the project parcel was located within the regulatory floodway, the parcel was to be subdivided to remove any portion of land within the regulatory floodway.
The Property is located southeast of the John St/Work St intersection, between Work St and the Alisal Creek (Reclamation Ditch # 1665) which places a portion of the back of the property within the regulatory floodway based on the FEMA flood insurance rate map (FIRM 06053C0217G, effective 4/2/2009). The Reclamation Ditch was originally constructed in 1917. The Monterey County Water Resources Agency (MCWRA) is responsible for the operations and maintenance of a portion of the Reclamation Ditch mainstem and tributaries. MCWRA currently holds a 30-ft wide easement along the back of the Property and owns portions of land scattered throughout the Reclamation Ditch. Subdividing the portion of land within the regulatory floodway and transferring it to the City will allow the City to later transfer this portion of land to the MCWRA.
Working with one of the City’s on-call land surveying firms, the City mapped the extents of the regulatory floodway and determined an area of land that could be subdivided and removed from the Property (APN 003-011-048). Staff recommends transferring a strip of land 25-ft wide along the back of the Property as described on the legal description (Exhibit A) and as shown on the plat (Exhibit B).
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378). In addition, CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
STRATEGIC PLAN INITIATIVE:
This action supports the Salinas City Council’s strategic goals of Housing and Affordable Housing and Effective and Culturally Responsive Government. By subdividing and accepting this portion of land, the City Council is allowing the Step Up in Salinas project at 545 Work St to access 85 HUD Section 8 PBVs for 25-years and it will also allow the project to move forward in providing affordable housing to a vulnerable population in our community.
DEPARTMENTAL COORDINATION:
The Community Development Department has led the effort with regards to the Step Up in Salinas Project. The Public Works Department has provided technical assistance in the determination of the regulatory floodway, creation and review of the legal description and plat map and the writing of the quitclaim deed.
FISCAL AND SUSTAINABILITY IMPACT:
Funding for the professional services of the land surveyor were paid through the Housing Production Fund (5800.30.9021-63.5900). No funding requests are being made as part of this item.
ATTACHMENTS:
Resolution
Quitclaim 545 Work St LP
Document No. 20200773533 - 545 Work St Grant Deed
Firmette 545 Work St
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