HomeMy WebLinkAboutAgenda Statement 1980/06/24 Item 10
COUNCIL AGENDA STATEMENT
Item
10
Meeting Date 6/24/80
ITEM TITLE: Public Hearing - Redevelopment Agency/City Council Consideratj6n
,i of an Urban Development Action Grant Application
Resolution/b/'11Autnorizing the Submission of An Urban ...
Development Action Grant Application -
SUBMITTED BY: Community Development Directoo/ (4/5ths Vote: Yes_ NoL)
The Redevelopment Agency at the June 5, 1980 meeting, authorized the preparation of
an Urban Development Action Grant (UDAG) for the construction of a parking garage in
the Town Centre Focus Area. As part of the preparation process, .the local governing
body must hold a public hearing prior to the submission of an application. With
public comments, the application is then forwarded to area and state clearinghouses
for review and then on to HUD in Los Angeles and Washington, DC. The application has
now been prepared and is erady for submission to the clearinghouses. Therefore, it
is my
.RECOMMENDATION:
1. Thatlhe Council/Agency hold a publ ic hearing to obtain comments
relative to the submissi,on of the application; and,
2. That the City Council,.:after taking into consideration,pul5l:k
testimony, approve the resolution authorizing the submission 'of
the application to CPO, the State of California and to HUD.
BOARDS/COMMISSION RECOMMENDATION: The Project Area Committee supports the submission
of the application.
,
DISCUSSION: .
The UDAG proposal requests funding assistance for the construction of a $4.4 million
three-level,,:800-space parking structure in the Town Centre Focus Area. Of this
amount, $3.8 million is requested from HUD with the balance being supplied by the
developer. In addition, a payback of another'$l.l million from the developer,is
proposed. The Premise of the Grant is--the City is requesting a UDAG in order to
provide structured parking; with the developer providing the funds. both, up front
and on a deferred basis for surface parking. We think that this is a most reason-
able approach since the goals of our Town Centre Redevelopment Project are to pro-
vide a land efficient urban center rather than a suburban development which is
dominated by surface parking.
It appears that our chances for a UDAG are good due to the fact that the developer
has 'three key leasehol~ tenants,namely, United Artists Theater, Marie Callender,
and Jolly Roger restaurants. These tenants are strong enough to secure the required
financial commitment for construction arid longcterm mortgage financing which is
necessary for a UDAG. The developer at this time does not have this important
ingredient, however, it has only been two weeks since Agency approval. We expect
such a commitment by mid-July when the grant is submitted to HUD (after CPO and
State review). At this time, several financial institutions are interested in the
financial package and are evaluating the development for loan purposes.
From the June 5 meeting, Agency.members expressed 'concern as to the possible
traffic congestion brought about by the three-level, 800 automobile structure.
Staff from Engineering and Planning are in the process of evaluating this concern.
and may be able to orally report. on this matter. Further, I have talked to my
01 c...ft' Continued
Form A-113 (Rev. 11/79)
-fe!il'
EXHIBITS
Agreement_____ Resolution~ Ordinance_____ Plat_____ Notification List
Other Project Summary ENVIRONMENTAL DOCUMENT: Attached
Submitted on
I
II
.'
Page 2, Item 10
Meeting Date 6/24/80
counterpart with the City of Santa Rosa on this matter. The reason, said city has a
United Artists-6 theater in their redevelopment project adjacent to a public parking
garage. The City did not require additional parking because of the reciprocity of
parking between daytime shopping and nighttime moving going. They are pleased with
the arrangement and have no regrets after three years of operation. In their situation,
metered parking is required until 6 p.m. and the financing of the garage was from a
combination of redevelopment monies and developer contributions.
Other criteria that the Department of Housing and Urban Development will be evaluating
will be the leverage, or rather ratio, of private funds to public investment. This
application provides for a ratio of almost 6.to 1, or $21,500,000 of private invest-
ment to $3.8 million of UDAG, the ratio is further improved when the additional pay-
back of $1.1 million is taken into consideration. The payback will be to the City
and not to HUD and can be utilized for other Community Development activities.
Because of the magnitude of the exhibits required for the application, we have not
reproduced individual copies for each Council member. Rather, we are providing a
copy to the Mayor/Council secretary. Attached, however, is a project summary that
is part of the application.
FINANCIAL IMPACT:
$3.8 million in federal grants would result in $240,000 in annual taxes to City
and a $1.1 million repayment to the City.
PGD:as
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by tM City COll~.c'l ?f
Chllla Vista, Cclnorn1a
Dated iM.~
! 01 r.rc;