Acquisition of Nimitz Motel (555 Lewelling Boulevard)for Conversion to Homeless Navigation Center/Shelter & Permanent Supportive Housing City Council
March 21, 2022
February 2021
Homeless/Short Term and Long Term - Navigation Center & Housing Presentation to Council Council directed staff to find properties
April 2021
Hired TRI Commercial Real Estate Services to conduct property searches April 2021 - Present
Weekly meetings with realtor
Regular staff meetings to review properties
Research/consultation
What’s Been Happening
What’s Been Happening
Fall 2021
Began negotiations with Nimitz Motel
Memorandum of Understanding with Eden Housing, Inc. & Building Futures with Women and Children State Project Homekey 2.0 Request for Proposals
November 2021
City initiated formal appraisal
December 2021
Appraisal completed ($5.8 million)
City offer - $5.8 million
January-February 2022
Owner counter - $6.15 million
Drafting of Purchase Agreement
Project Team
City
Recreation & Human Services Department
Community Development Department/Housing Division
City Attorney’s Office
Nonprofit Services Provider
Building Futures with Women and Children
Nonprofit Developer
Eden Housing, Inc.
Realtor
TRI Commercial Real Estate Services
Nimitz Motel
33 studio units
Ground floor office & retail
On-parking
On-site laundry
Proximity to encampments
Opportunity to achieve City priority for both short-term navigation center/shelter & long-term homeless housing
Purchase AgreementSummary
Seller: Parshotam, Inc.
Purchase Price: $6.15 million
Appraised value: $5.8 million
Estimated $85K closing costs
Initial City Deposit: $184,500
Non-refundable on July 30, 2022
City has 3 – 30 day extensions\
$75,000 non-refundable after 2nd extension exercised
Due diligence work has begun
Phase I environmental, building needs assessment, relocation plan
Proposed Plan forNimitz Motel(for Project Homekey)
Phase 1 (Interim)
Purchase the motel
BFWC & City operate the motel for 1.5 to 3 years as a navigation center and shelter Phase 2 (Permanent)
Work with Eden to secure public financing to convert to permanent supportive housing for the homeless Work with BFWC to find stable public operating funding for the center/shelter Find new permanent location for the center
Eden Housing develops & operates the motel as permanent supportive housing
Available Funding Sources for Nimitz Motel Acquisiton & Conversion City Sources
City Affordable Housing Trust Fund
City Low Mod Housing Fund/former Redevelopment
City General Fund ($1.6 mil for operations/services)
State Permanent Local Housing Allocation
State Homeless Housing, Assistance and Prevention (HHAP) Federal
$750K - American Rescue Plan Act (ARPA)
HUD Community Development Block Grant & HOME
State (approx. $5.5 million to $7.5 million)
Project Homekey - acquisition/renovations/operations/relocation
Public Outreach Plan
April-December 2022
Ongoing community engagement including neighborhood near the motel April/May 2022
City-wide Community Meeting on Project Homekey proposal/Navigation Center May 2, 2022
Council public hearing to review FY22-23 HUD Annual Action Plan including CDBG & HOME funding for navigation center July 2022
Public presentation to Council on Project Homekey application status
Next Steps/ Key Dates
April 18,2022
City Council -review resolution to submit Project Homekey application More details on project costs and City funding sources at this meeting May 2,2022
Project Homekey Round 2 deadline
Highly competitive
June 2022
State announces approval/denial of Project Homekey applications Fall/Winter 2022
State releases Project Homekey Round 3 Request for Proposals (RFP) Round 3 = City alternative plan if Round 2 is denied
Staff Recommends
City Council Approve and Authorize Execution of Purchase Agreement for the Nimitz Motel Property