HomeMy WebLinkAbout1998 02 18 CC MIN SS1998 02 18 CC MIN SS @˜ l MIN SS FEB 18 1998à›[H6Ê8 REGULAR MEETING OF THE CITY COUNCIL OF ThE
CITY OF BALDWIN PARK, CITY HALL, 14403 EAST
PACIFIC AVENUE, WEDNESDAY, FEBRUARY 18,1998
The City Council met in Study Session in the
Council Chambers at 6:00 p.m.
ROLL CALL PRESENT: COUNCIL MEMBERS LOZANO, MUSE, PACHECO,
VAN CLEAVE, AND MAYOR LOWES
ALSO PRESENT: City Attorney Olivas,
Interim City Manager Mousavi,
Acting Chief of Police Kies,
Interim Director of Finance Holmes,
Dir. of Community Development Cervantes,
Dir. Of Rec/Community Services Nunez, and
City Clerk Gair
00-
ORAL COMMUNICATIONS
Mayor Lowes declared Oral Communications open and invited those wishing to speak on any
subject to come forward. There were none.
Mayor Lowes declared Oral Communications closed.
00-
TOPIC OF DISCUSSION
Housing Project Cash Flow Analysis and Anticipated Uses for Several Proposed Housing
Projects.
Director of Community Development Cervantes explained the affordable housing program and the
formula that is used to determine who can qualify for these units. The annual income chart and the
moderate income chart was displayed. He gave the ranges for what is affordable for low income and
what is determined to be affordable for moderate income. The units that will be necessary to replace
in the city is 162 bedrooms. when the AutoNation project displaces homes the formula will move
to 314 bedrooms.
He described the TELACU project that will be developed on Monterey Avenue, and that the changes
that have been requested are subject to negotiations. The shortfall before there is funding on this
project is nine months and that could be covered by a short term loan. Council commented that the
loan should not be considered as automatic in the negotiations. He also commented on the
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1998 02 18 CC MIN SS @˜ l MIN SS FEB 18 1998à›[H6Ê8REGULAR MEETING OF THE CITY COUNCIL PAGE 2
OF THE CITY OF BALDWIN PARK STUDY SESSION FEBRUARY 18, 1998
small parcel that is located almost in the middle of the project and the interest there is to purchase that
property if the owner can be located.
The next proposal was Rhodes Lane which is located off Ramona Boulevard and how to develop
this site into a development of 5 units or possibly 6 units. Assistance from the city would require
the agency to have a lien behind these units. On the cul de sac of Rhodes Lane there is property for
sale and an estimate has been received for that property. Turn around space would have to be
negotiated in offering to purchase the property. Six units would be on Rhodes Lane and two units
on the other property is being proposed. There would be two lower income units in this project.
The density bonus would only be on the north side of the area.
The third proposal by Safran & Associates is important to the replacement obligation in very low
and low income. He explained that the Council's desire is for Single Family, but not all can afford
to purchase Single Family. This project would allow people of very low income to qualify to begin
to become home owners. This proposal would give 90/o tax credits for the project. The safety
option to this property is for the agency to purchase this property and wait for the tax credit to be
granted. Planning Commissioner Martinez explained the process that must be gone through to
determine who gets the tax credits, basically it is decided by a lottery.
Director Cervantes flirther explained the D. C. Cook proposal for moderate income property and
that most of those have sold at 120% of the median. They are also proposing a project on Phelan
and Los Angeles Street to build nine units and they want 5 to be affordable. They &e requesting
more participation from the agency at $50,000 per unit. Staff is looking at a different range than the
developers are presently considering.
Mr. Cook, of D. C. Cook, presented a slide of the area being considered and the type of replacement
housing that would be provided. He explained the problem that has existed, the city participation that
was requested, and the response of the staff He displayed the redesign that had been made to meet
the desires of the council and the request of dollars from the city. He outlined the difficulties that
were encountered, but stated that the projects became better, but more costly. He stated that there
is a difference of opinion on the ability of the developers to continue with the project considering the
amount of city participation.
In response to Council questions, Director Cervantes explained that a density bonus will allow the
developer to build if he gives up something. Mr. Cook believes that his developments are low
income but the city believes them to be moderate. Director Cervantes stated that their is a
communication gap between D.C. Cook and the city and D.C. Cook must build two units at 80% of
the median. Mr. Cook believes that additional financial value is making this project not possible,
because the asking price of the houses exceeds what is considered to be affordable. The contribution
from the city at $50,000 would still ask a selling price of$157,000. These houses would be almost
1600 square feet. Director Cervantes stated that there are several issues that
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1998 02 18 CC MIN SS @˜ l MIN SS FEB 18 1998à›[H6Ê8REGULAR MEETING OF THE CITY COUNCIL PAGE 3
OF THE CITY OF BALDWIN PARK STUDY SESSION FEBRUARY 18, 1998
need to be understood before this project is continued.
Council requested that this item be continued to another study session or on an agenda in the near
future. Council agreed to set this for another meeting.
00-
The regular& meeting, study session, of the City Council was adjourned at 7:00 p.m. by Mayor
Lowes. There were no objections.
LINDA L. GAIR, CITY CLERK
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