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ARA-2010/06/22 Anaheim Redevelopment Agency Minutes of June 22, 2010 Page 2 of 4 services: Amendment No. 2 with Fuscoe Engineering, Inc., Amendment No. 1 with Willdan Engineering, Amendment No. 3 with RBF Consulting and Amendment No. 1 with PSOMAS. 6. RESOLUTION NO. ARA 2010 -002 A RESOLUTION OF THE ANAHEIM D106 REDEVELOPMENT AGENCY adopting the fiscal year 2010/11 budget. 7. Approve minutes of the Redevelopment Agency meeting of June 8, 2010. JOINT AGENCY /COUNCIL /HOUSING AUTHORITY PUBLIC HEARING: 8. This is a continued joint public hearing among the Redevelopment Agency, Housing Authority and City Council to consider three resolutions relating to a Cooperation Agreement between the Agency and Authority and an Affordable Housing Agreement among the Agency, Authority and South Street Anaheim Housing Partners, L.P. (continued from meeting of June 8, 2010, Item No. 05). 6286 Redevelopment Agency Action: RESOLUTION NO. ARA 2010 -003 A RESOLUTION OF THE GOVERNING 6287 BOARD OF THE ANAHEIM REDEVELOPMENT AGENCY (i) approving a Cooperation Agreement (transfer of 700 E. South Street Affordable Housing Site) by and between the Anaheim Redevelopment Agency and the Anaheim Housing Authority, (ii) approving an Affordable Housing Agreement (700 E. South Street Project) by and among the Anaheim Housing Authority, Anaheim Redevelopment Agency and South Street Anaheim Housing Partners, L.P., and (iii) making certain findings in connection therewith. Agency Member Kring declared a potential conflict of interest on this matter and excused herself from the dais. Elisa Stipkovich, Executive Director of Community Development Director, remarked this hearing was held for Council to consider approving the Redevelopment Agency conveying 700 E. South Street to the Anaheim Housing Authority and for approving a Tong -term ground lease with The Related Companies and the Housing Authority for an affordable housing project on that site. She noted the Agency had purchased the site in January, 2007 and was obligated to clear and ready the site for development at an approximate cost of $7 million in Agency funds. She explained the Agency used housing set -aside funds for that purpose with the intent the Housing Authority use this property strictly for an affordable housing project. To that end, she noted, the Department issued a Request for Proposals for developers and received 18 proposals, five of which were selected for interviews. Each of those five developers, she added, were interviewed by a panel of experts and rated on experience, design and economics. She noted the panel recommended The Related Companies due to superior design and also because the proposed project would create 92 affordable units including a community center, a pre - school staffed by the Anaheim School District, a swimming pool and reconstruction of an alley and undergrounding of improvements adjacent to Avon - Dakota neighborhood. If approved, Ms. Stipkovich explained, the developer would then be able to submit in time for the next State tax credit round on July 7 She pointed out there was a related item on tonight's agenda as well, asking The Related Companies to work with the City on a revitalization plan for the Avon Dakota neighborhood. In addition, staff was requesting additional funding to be allocated by the City and the Housing Authority to help in acquiring targeted sites within that Anaheim Redevelopment Agency Minutes of June 22, 2010 Page 3 of 4 Avon Dakota neighborhood. She added saw this as a joint effort to not only develop this site but to improve the entire neighborhood. Chairman Pringle opened the public hearing. Phyllis Mueller, resident, stated she had extensive experience in the development of affordable housing and was making two requests of Council. The first was to deny or hold over its decision on this development because of deficiencies in the proposal, the need to stabilize the adjacent Avon - Dakota neighborhood, and to wait out final route decisions for high speed rail service though this area. The second request was to make rehabilitation of existing multi - family rental housing in Anaheim's challenged neighborhoods a priority rather than funding new construction of rental housing. Maurice Turner, Colony Park, spoke in support of this project which could positively impact the Avon Dakota neighborhood. Cynthia Ward, resident, supported the revitalization effort for the Avon Dakota community, however, she felt Council should wait to act on this matter until the Draft EIR for high speed rail was available in the fall and then move forward, if appropriate. Robert Nelson, resident, urged Council to vote no on this project based on three areas of concern: why build on land designated to be taken for high speed rail, why add more affordable high density housing in an area classified as a Level 3 project area thereby increasing neighborhood problems, and why place 12 units directly fronting an alley known to be used for drug and gang activities. Caesar Covarrubias, Kennedy Commission, expressed support for the proposed project remarking the issues discussed today were the same concerns raised regarding the Jeffrey Lynne neighborhood, issues that were no longer a concern. He believed this effort in partnership with the school district and a long -term developer to manage and oversee the project would bring stability and investment into the downtown area and was a unique opportunity to expand City resources through the use of tax credits which traditionally were not available for rehabilitation. Ann Bushard, Childcare Connections, spoke in support of this affordable housing project, adding the childcare component incorporated into this plan was at no cost to the City and would allow residents to seek and maintain employment because of free childcare on site. John O'Brien, Brookfield Homes, lent his firm's support to the South Street Project for a site that was currently underutilized, vacant, and an attractive nuisance in the neighborhood. Chairman Pringle remarked that as chairman of the California High Speed Rail Authority, there was no certainty as to the final outcome of the alternatives analyses for high speed rail routes. It incorporated an 800 mile system that would run from one end of the state to the other and was presently in an environmental review process to address impacts. He added that process required submittal of multiple alternatives, however, there was nothing in the rail act which required or asked communities to take no action on potential rail sites for the for the number of years it would take to certify the environmental documents and implement the train system. He was supportive in moving forward with development of this project, remarking the City spent resources and focused on troubled neighborhoods and had expanded the rehabilitation portion Anaheim Redevelopment Agency Minutes of June 22, 2010 Page4of4 of housing funds. He also supported the Department's partnership with The Related Companies to take a greater role in a revitalization plan within Avon Dakota neighborhood. Agency Member Galloway requested information on tax credit submittals and Ms. Stipkovich responded there were typically two rounds of funding each year, March and July. She stated, after the July 7 deadline, the next opportunity for tax credit application should be in March of 2011. Agency Member Hernandez inquired about the alley configuration. Ms. Stipkovich stated the developer would reconstruct the alley, add landscaping and work with the adjacent property owner to do undergrounding of utilities. She added staff would work out easement agreements with adjacent property owners to create new trash enclosures and there were examples of taking out garages for open parking which would greatly improve the image. She remarked some information on alley reconfiguration had been disseminated to the public, however, staff had not reached out to tenants or the larger owner base until they knew this project would be approved. In answer to the question of what was an alternative to this project, Ms. Stipkovich responded an affordable project was required on that site and unless a developer was able to reimburse the set aside funds of over $7 million, this project was the best chance for development now. Agency Member Hernandez moved, seconded by Chairman Pringle to approve RESOLUTION NO. ARA 2010 -003 OF THE ANAHEIM REDEVELOPMENT AGENCY (i) approving a Cooperation Agreement (transfer of 700 E. South Street Affordable Housing Site) by and between the Anaheim Redevelopment Agency and the Anaheim Housing Authority, (ii) approving an Affordable Housing Agreement (700 E. South Street Project) by and among the Anaheim Housing Authority, Anaheim Redevelopment Agency and South Street Anaheim Housing Partners, L.P., and (iii) making certain findings in connection therewith, seconded by Chairman Pringle. Roll Call Vote: Ayes — 4: Chairman Pringle and Agency Members: Galloway, Hernandez and Sidhu. Noes — 0. Abstention — 1: Agency Member Kring. Motion Carried. ADJOURNMENT: With no other business to conduct, Chairman Pringle adjourned the Redevelopment Agency meeting at 7:14 P.M. Ily sub 'tted, Linda N. Andal, CMC Secretary