Report to Carson Housing Authority
Tuesday, June 21, 2016
Discussion
SUBJECT:
Title
CONSIDER ENTERING INTO AN EXCLUSIVE NEGOTIATING AGREEMENT WITH THOMAS SAFRAN AND ASSOCIATES FOR DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT FOR VETERANS OF MILITARY SERVICE AT 600 WEST CARSON STREET (HOUSING AUTHORITY)
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I. SUMMARY
Thomas Safran and Associates (Developer) is under contract to acquire the property directly south (Adjacent Property) of the Carson Successor Agency-owned property located at 600 West Carson Street (Agency Property) (Exhibit No.1). The Developer is already under contract with the Carson Successor Agency to negotiate the purchase of the Agency Property so that it may be assembled with the Adjacent Property. Once assembled the Developer proposes to develop a multi-family workforce housing community that would provide leasing preference to veterans of the United States Armed Forces.
The Developer now wishes to enter into an Exclusive Negotiating Agreement (ENA) with the Carson Housing Authority to negotiate the terms of an Affordable Housing Agreement (AHA). The ENA will be for a period of 180 days, during which the Developer will begin to process the entitlement for the property and the terms of an AHA will be negotiated.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE the Exclusive Negotiating Agreement between the Authority and Thomas Safran and Associates, which shall be in substantially the same form as attached hereto, following approval as to form by Authority Counsel.
2. AUTHORIZE the Authority Chairman to execute the Exclusive Negotiating Agreement following approval as to form by Authority Counsel.
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III. ALTERNATIVES
TAKE another action the Authority Board deems appropriate.
IV. BACKGROUND
The Developer desires to enter into an ENA (Exhibit No. 2) with the Authority to negotiate the terms of an AHA whereby the Authority would provide financial assistance to the Developer for development of the proposed project. The Developer is currently under a contract approved on March 15, 2016 to acquire the Agency Property, as well as a separate contract to acquire the Adjacent Property. Together the parcels total 1.17 acres and present a great opportunity to develop an impressive gateway when entering the city from the west.
Authority staff has also considered the Housing Subcommittee’s direction to seek out opportunities for development of veteran’s housing. In its meeting held on July 29, 2015, members of the Housing Subcommittee directed staff to look for development opportunities and housing programs for veterans. The proposed development would provide 40-units of multi-family workforce housing with leasing preference towards veterans. In addition, the Developer proposes to build approximately 3,000 square feet of commercial/retail space at street level. The property is zoned mixed-use; therefore the proposed project would be permitted under current zoning regulations.
The Developer has a very positive track record in Carson with different housing types, including the Gateway senior project and the Villagio project near City Hall, and has also demonstrated experience in the development of veteran housing with the recent completion of its 44-unit Veterans Village project in Glendale.
The ENA will be for a period of 180 days. The terms and conditions negotiated during the ENA period will be memorialized in an AHA that will be presented to the Authority Board for approval.
Both this project and the ENA with Meta Housing for artist affordable housing are essential for the City to meet the requirements of a Cal ReUse grant made by the California Pollution Control Financing Authority for the former Boulevards project. In return for a $5,000,000 grant to that project, the Developer was obligated, among other things, to develop 61 units of affordable housing on that site. The Carson Reclamation Authority is now the owner of that project and now bears the same obligation; these projects, at 100% affordable, would create 80-90 units of affordable housing in a high quality manner for targeted populations in Carson.
V. FISCAL IMPACT
There will be no fiscal impact other than budgeted staff time and consultant time. The Authority’s financial contribution to the project is still being negotiated.
VI. EXHIBITS
1. Vicinity Map. (pg. 3A)
2. Exclusive Negotiating Agreement. (pgs. 4-11)
Prepared by: Amelia Soto, A/Project Manager