HomeMy WebLinkAboutAgenda Statement 1980/07/22 Item 11
COUNCIL AGENDA STATEMENT
Item
11
Meeting Date
7/22/80
ITEM TITLE: Resolution)'d~d~uthorizing the Purchase of a Site on
F Street for Senior Citizen Housing
SUBMITTED BY: Community Development Directo~ (4{5ths Vote: Yes1L- No___)
City Council Resolution #10152 authorizes the opening of escrow and an appraisal
for the possible purchase of a senior citizen housing site on an acre of land across
from Fire Station #1 on F Street. Last week, the Council adopted a Negative Decla-
ration finding no significant impact for the use of the site for up to 60 units of
senior housing. The appraisal has now been completed, therefore, it is my
RECOMMENDATION: That the Council
Authorize the acquisition of the F Street site at a cost of $561,000 plus applicable
escrow and title fees.
BOARDS/COMMISSION RECOMMENDATION:
The Human Relations Commission has urged that sites be acquired for affordable
housing in the City.
DISCUSSION:
In order to implement a housing program for the City, a Section 108 loan from HUD
was requested and granted. The purpose of this loan is to acquire sites for low
and moderate-income programs. Payback for the loan is to be from future Block Grant
allocations. The actual loan was granted in November and since that time, staff
from the County Housing Authority and my department have been attempting to secure
suitable sites.
Recently, it was brought to our attention that the subject one acre parcel was avail-
able for purchase. The site was familiar to the City since attempts were previously
made to secure a subsidized housing program in this location. At that time, no funds
were available and, consequently, the land was optioned to another entity. Last May,
the Council approved a 30-unit condominium for the parcel, however, due to circum-
stances that are not relevant, the developer is offering the parcel for sale.
'~
,
On behalf of the City, an independent appraisal was conducted by the Lee C. Johnson
Company in order to determine fair market value. While the appraisal indicates a
value of $510,000 for the construction of 30 condominium unit~ the appraiser suggests
that an upward figure would be justified if greater density were allowed or if there
was an overriding public benefit. The holder of the option to purchase has offered
to sell the parcel at a price of $583,000. I propose to offer 10% above the appraiser's
value, or $561,000 with Council concurrence. (This price would be subject to an in-
crease of $5,000 after AU9ust 1st because of the terms of the developer's option
agreement with the owner.) My justification for the increase is due to the ideal
location of the site for senior citizen housing. From an intensive search it would
be impossible to duplicate the site for senior housing in the central area of the City.
The 60 units of senior housing on the subject site also has the concurrence of the
City Planning Department and of the Department of Housing & Urban Development.
Continued
Form A-113 (Rev. 11/79)
EXHIBITS
Agreement_____ Resolution~ Ordinance_____ Plat~ Notification List
Other
ENVIRONMENTAL DOCUMENT: Attached
Submitted on
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Page 2, Item
11
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Meeting Date 7/22/80
Presently, there is no HUD program available for subsidized housing for senior
citizens in the City. However, new appropriations are due after October 1st and
rules for the use of these funds change with almost certain regularity. Other
alternate proposals are also available and will be pursued. For example, the City
of San Diego has had favorable experience by leasing land for a nominal amount in
exchange for the provision of such housing. The 1I0rchard,1I by the Sports Arena, was
constructed in this manner. The Building Contractors Association has further indi-
cated an interest in pursuing a development for this site similar to proposals now
being considered by Carlsbad and San Diego. In such a proposal a non-profit cor-
poration is formed and area financial institutions agree to provide favorable
financing for senior housing rental units at affordable rates. Thus, if no federal
programs are available, the property could still be developed for affordable rental
un its.
With the purchase of the property it is proposed to keep the three housing units
rented until a plan and timetable is established for the construction of the new
un its .
~
FINANCIAL IMPACT:
HUD Section 108 loan of $1 million available for this use; acount number 633-6330-BG81.
PGD:as
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by the City Co~ncil of
Chula Vista, Cc:lifornia
16"?O~
Dated 1--o).~ -f-o