Downtown Asset Surplus Strategy -Study Session
City Council Meeting
January 25, 2022
Creating a Downtown City Asset Surplus Strategy
• The City has contemplated alternatives to invest and promote investment in the Downtown as well as options to manage the organizations significant deferred maintenance of City buildings.
• The Housing Action Plan (HAP), Downtown Station Area Specific Plan (DSSP) and Infill Developer Attraction are a few ways the City has prioritized, promoted and incentivized affordable housing/housing and mixed-use development. Although they have been successful, more housing is needed.
• Staff is seeking Council's direction and feedback on an asset strategy for the downtown; putting City assets to work to create more housing for the community.
What has been done?
Housing Action Plan
HAP Mission:
The City of Santa Rosa will facilitate the
construction of “Housing for All”;
specifically, meeting the housing needs of
the full spectrum of household income
groups including those currently living
within the city and those relocating to the
city in the future.
Council Priority - Housing:
2015-2019 – housing & affordable housing
identified as a Tier 1 Council Goal
HAP Program Areas:
• Program 1
Increase inclusionary affordable housing
• Program 2
Achieve “affordability by design” in market-rate
projects
• Program 3
Assemble and offer public land for housing
development
• Program 4
Improve development readiness
• Program 5
Increase affordable housing investments and
partnerships.
Infill Developer Attraction
The Council of Infill Builders Convening:
• Convened builders, public officials,
financial leaders, affordable housing
developers, architects and consultants
• Identified key barriers and
recommended solutions to encourage
and expedite infill development in
Santa Rosa
Developer Tours & Marketing:
• 2019 Bay Area Council developer tour – coordinated
tour of Qualified Opportunity Zone eligible infill site • Created Up Downtown campaign to market to
experienced infill developers
• Initiated Public Private Partner redevelopment analysis for potential intensification of downtown public parcels
Plan Area
2017/2018 Tier 1 Council Goal:
Downtown Housing
• Reduced Discretionary
Action/Permit Streamlining
• Fee Incentives
• DSASP + CEQA Document
• Federal Opportunity Zones
• Regional Housing Action
• Resilient City Development Measures
(2018)
• High-Density Multi-Family Residential
Incentive Program (2018)
• Plan + Final Subsequent EIR (2020)
• Established in April 2019
• Renewal Enterprise District (2020)
2021 Downtown
Housing Production
* Caritas Village is approved to construct 126 units. A Phase 1 building permit for 64 units is under review.
These unit counts reflect the projects’ current status.
Development Project Under
Construction (Building
Permit)
11 Projects 596 Units*
Development Project
Pending/Approved 9 Projects 757 Units*
Detached SFD, ADU or JADU
Under Construction (Building
Permit)
18 Projects 17 Dwelling Units
or ADU/JADU
Detached SFD, ADU or JADU
Project Approved 2 Projects 1 Dwelling Units
or ADU/JADU
TOTAL 40 Projects
1,371 Dwelling
Units or
ADU/JADU
Where are we in our
goals?
Housing Element Update and Schedule
Draft Housing Inventory January, 2022
Prepare Public Draft Housing Element March
Release Public Review Draft (30-days)* April
Submit Draft Housing Element to HCD (90-Day Review)* May– July Submit Draft Housing Element to HCD (2nd review 60-days) – if needed August - September Planning Commission and City Council for Adoption hearings October/November Submit Final Adopted Housing Element to HCD – Review and Certification (Up to 60 Days) December – January 2023
Santa Rosa RHNA 6th Cycle (2023-2031) = 4,685 units
5th Cycle (2015-2023) = 5,083 units
Putting City Assets to Work for the Community
Goal: Program 3 of the HAP:
Assemble and offer public land for housing development
Actions:
• Identify downtown land assets that are underutilized and could be made available for housing/mixed use development, while still including a public use, such as public parking. • Consider the Public Private Partnership (P3) options to address deferred maintenance of property assets.
• 2019 JLL Consulting Real Estate Study – increase availability of downtown land for housing by consolidating government services into denser land use and streamlining access to services. While also solving the growing deferred maintenance issues and freeing up buildable land.
Both actions alleviate the City of millions of dollars of deferred maintenance concerns associated with City Hall complex, advance the HAP goals for much needed housing for the community and streamline government services.
Site Analysis
& Surplus
Strategy
(pre-SLA)
P3 Goal:
To increase land availability for
housing and mixed-use
development through the
consolidation of government
services into a denser, more
potent land use, thus providing
streamlined access to services.
Downtown Asset Considerations
Further Considerations:
Parking Asset Deferred
Maintenance
Third Street Garage/Garage5, $3,069,500
• 2006-Top deck replacement and other
waterproofing repairs recommended in
2006 Asset Management Plan (AMP).
• 2014-Top deck replacement and other
waterproofing repairs deferred.
• 2022 Top deck replacement and other
waterproofing repairs necessary to
continue operation.
Parking Lot-10, $1,500,000
• 2018 Project development put on hold
while city explored potential development
of this site.
Parking Lot-11, $1,500,000
• 2019 Project development put on hold
pending outcome of potential
development of this site.
Strategy Launch Timeline
Garage 5 on 3rd Street –
Consider for first asset to
market test for development
If Garage 5 is successful –
Consider Lot 11 development
in upcoming years.
Lot 10 -Remove from
development consideration
recommend deferred
maintenance (reconstruction)
project
Staff return to Council for
future study session on public
private partnership options to
address the City Hall Complex
and additional deferred
maintenance.
2019 Surplus Lands Act (SLA)
Changes to
the SLA
government
code
section
54222
Government owned property must be declared surplus by its governing body prior to disposition or request for proposal (RFP) for development, even with continued use such as
public parking.
Be made available to housing sponsors for affordable housing through a notice of availability to the State Department of Housing and Community Services (HCD) prior to being made available to private developers through the RFP process.
City Council Surplus Policy
Prior to Council review and
declaration as surplus:
Housing Authority review for
recommended action to
Council
Planning commission review
for recommended action to
Council
Council may elect to have Staff follow
this as well as the SLA process for the
downtown properties for
consideration in the downtown
strategy, or direct Staff to bypass
Council Policy and proceed with SLA
requirements bringing the actions
directly to Council.
Next Steps
1. Housing authority review and approval/recommendation on surplus to Council per City Council Surplus Policy
2. Planning Commission review and approval/recommendation on surplus to Council per City Council Surplus Policy
3. Council Surplus Resolution action with future development requirements which could include:
• Reservation of Right of Way
• Replacement of public parking
• General Plan, zoning code, bike and pedestrian master plan & DSSP
4. City Council closed session for consideration of price and terms of long-term lease or sale.
Next Steps
4. Submit a notice of availability to HCD making the property available to approved affordable housing sponsors
5. Negotiate with interested housing sponsors
6. Enter into ENA, DDA with housing sponsor for development If no interest from approved affordable housing sponsors:
• City may chose to issue an RFP to private developers for redevelopment of the property