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AHA-2021/05/18ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF MAY 18, 2021 The Anaheim Housing Authority regular meeting of May 18, 2021 was called to order at 5:20 P.M. in joint session with the Anaheim City Council. The meeting notice, agenda, and related materials were duly posted on May 13, 2021. MEMBERS PRESENT: Chairman Harry Sidhu and Authority Members Stephen Faessel, Jose Diaz, Jordan Brandman, Jose F. Moreno, Avelino Valencia, and Trevor O'Neil (all members present in-person) STAFF PRESENT: City Manager Jim Vanderpool, City Attorney Robert Fabela, and Secretary Theresa Bass ADDITIONS/DELETIONS TO THE AGENDA: Secretary Theresa Bass announced the Disposition and Development Agreement as noticed for Joint Public Hearing Item No. 2, pertaining to properties located on South Beach Boulevard and West Lincoln Avenue, had been removed from consideration and would be re -noticed by staff for consideration at a future public hearing. PUBLIC COMMENTS (all agenda items, except public hearing): None CITY MANAGER'S UPDATE: City Manager Jim Vanderpool announced the Anaheim Public Library's Summer Reading Program "Reading Colors Your World," running form June 1 to August 6, with a variety of virtual programs, events, and prizes. To sign up, or for more information, visit www.anaheim.readsquared.com or download the app. He noted the program was generously funded by the Friends of Anaheim Public Library, Friends of the Canyon Hills Library, the Anaheim Public Library Foundation, and H&R Block in partnership with the Anaheim Public Library Foundation. At 5:55 P.M., Chairman Sidhu recessed the Anaheim City Council. CONSENT CALENDAR: At 5:55 P.M., Authority Member Diaz moved to adopt the consent calendar as presented, seconded by Authority Member Faessel. ROLL CALL VOTE: AYES — 7 (Chairman Sidhu and Authority Members Faessel, Diaz, Brandman, Moreno, Valencia, and O'Neil); NOES — 0. Motion carried. AHA177 1. Approve minutes of the Housing Authority meeting of April 27, 2021. Chairman Sidhu reconvened the Anaheim City Council in joint session with the Anaheim Housing Authority at 5:56 P.M. Anaheim Housing Authority Minutes of May 18, 2021 Page 2 of 5 JOINT PUBLIC HEARING: AGR- 2. This is a Joint Public Hearing of the Anaheim Housing Authority ("Authority") and the 12904; Anaheim City Council regarding the proposed sale and the proposed ground lease of AGR- certain real property owned by the Authority located at 100, 130, and 212 South Beach 12696 Boulevard and 2970 West Lincoln Avenue, Anaheim ("Properties"). Certain parcels of the Properties are proposed to be sold by the Authority under the terms of a certain Disposition and Development Agreement between the Authority, as seller, to Greenlaw 39 Commons Beach, LLC or an affiliate thereof. Certain other parcels of the Properties are proposed to be ground leased by the Authority to Greenlaw 39 Commons Beach, LLC (or to a limited partnership of which Affordable Housing Access, Inc. is the general partner and Greenlaw 39 Commons Beach LLC or its affiliate is the administrative partner) for long-term affordable housing and the development and operation of a new 100 -unit affordable rental housing project [noticed consideration of the Disposition and Development Agreement has been removed and will be re -noticed and considered separately by the Anaheim Housing Authority at a future public hearing]. Housing Authority Action: 2-A. RESOLUTION NO. AHA -2021-002 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Award Letter regarding the 39 Commons II Affordable Housing Project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, LLC; authorizing the Acting Executive Director of the Anaheim Housing Authority to execute and implement the Preliminary Award Letter; authorizing the Acting Executive Director to negotiate the terms of and finalize an Affordable Housing Agreement, the Ground Lease, and other implementing agreements and instruments and to implement such agreements and instruments, including authorizing the issuance of warrants; and making certain other findings in connection therewith. Approve a Local Agency Agreement with the California Department of Toxic Substances Control, in an initial estimated amount of $125,041, for oversight services of site contamination remediation; and authorize the Acting Executive Director of the Housing Authority, or designee, to execute and administer the agreement on behalf of the Authority. City Council Action: 2-B. RESOLUTION NO. 2021-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Preliminary Award Letter regarding the 39 Commons II Affordable Housing Project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, LLC; authorizing the Acting Director of Community and Economic Development to execute and implement the Preliminary Award Letter and other implementing agreements and instruments on behalf of the City in connection therewith, as and when applicable, including the issuance of warrants; and making certain other findings in connection therewith. RESOLUTION NO. 2021-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Acting Director of Community and Economic Anaheim Housing Authority Minutes of May 18, 2021 Page 3 of 5 Development to submit a joint application to the Strategic Growth Council and the State of California, Housing and Community Development Department, for funding under the Affordable Housing and Sustainable Communities Program on behalf of the City of Anaheim, with Greenlaw 39 Commons Beach, LLC (or its LP Developer assignee) as co -applicant with the City (total approximate amount up to $30,000,000). Interim Housing Authority Executive Director Grace Stepter reported staff was requesting the adoption of a resolution approving a Preliminary Award Letter for 39 Commons II, an affordable housing project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, and related actions thereto. As background, she explained the Anaheim Housing Authority owns an approximately 5.6 acre site on the southeast corner of Beach Blvd. and Lincoln Avenue, acquired over several years by the Anaheim Redevelopment Agency and the Housing Authority. In 2019, Greenlaw 39 Commons Beach, LLC, owner of the 1.67 -acre adjacent commercial center, approached the Authority about partnering to develop the sites together. The development proposal would create a mixed-use, mixed -income development that would include rental apartments, for -sale townhomes, and a retail component. The affordable rental development proposed includes a five -story contemporary wrap -apartment development consisting of 100 rental units on 1.796 acres. The apartments would be 100% affordable for families with incomes that fall within the extremely -low, very -low, and low-income households. She noted project amenities include a rooftop deck and a multipurpose room with computers and family programming. She reported the project includes 195 parking space, as there is limited parking in the Beach Blvd. corridor and to address neighborhood concerns. Ms. Stepter continued that the larger mixed-use project would also include 134 for -sale townhouse, which would come before the Housing Authority and City Council at a later date. She stated the current priority is to implement the Preliminary Award Letter to facilitate the needed funding to secure State funding sources for the development. She noted, on April 26, 2021, the Planning Commission approved the associated land use entitlements and explained that Greenlaw proposed to finance the multi -family housing component with a combination of Affordable Housing and Sustainable Communities funding, utilizing the unique cap and trade program, much like other developments. She further explained additional funding components, including bond financing and City resources, in this instance, a 58-60 year ground lease at approximately $7,500,000. She further explained staff's request to enter into an agreement with the California Department of Toxic Substances Control, to oversee clean up of the site to ensure it was done properly and allow the developer to be indemnified against future claims. Ms. Stepter displayed images of the proposed development and explained staff worked closely with the developer to ensure an aesthetically pleasing and high quality design. As a result of the prior work done, staff supported the development to help re-energize the Beach Blvd. corridor in conjunction with the 39 Commons project across the street. She noted there was no impact to the General Fund, as all funds were intended to come from the State. An early June application submittal deadline is what caused the bifurcation of the project so the apartment component could competitively compete for State funding. Chairman Sidhu opened the public hearing. No in-person public comments were received. One public comment related to Joint Public Hearing Item No. 02 was received electronically, which was distributed to the Housing Authority and City Council, posted to the City's website, and made part of the official record. — See Appendix Anaheim Housing Authority Minutes of May 18, 2021 Page 4 of 5 Chairman Sidhu closed the public hearing. DISCUSSION: Authority Member O'Neil questioned the future of the existing Shell gas station on the site. Ms. Stepter explained the property is owned by the Housing Authority and leased for the gas station. Upon expiration of the lease, the property would be transferred to the developer and re -purposed into other retail components. Authority Member Valencia requested Greenlaw commit to communicating effectively and efficiently with City partners throughout the process and commit to being open to local and veteran hires on the project. With the developer not present, Ms. Stepter committed to relaying the questions to Greenlaw. Authority Member Moreno stated he had the same questions as Authority Member Valencia. He thanked Ms. Stepter and her team for working on the project to focus on extremely -low income families and thanked Greenlaw for their partnership. Ms. Stepter confirmed that at least 20 units were for extremely -low income, the project would be 100% affordable, and the units would range from 30% to 60% Adjusted Median Income (AMI). Authority Member Moreno also expressed his appreciation for the aesthetics and amenities, congratulated all for their work on the project, and hoped the State would come through with the funding. Authority Member Brandman expressed his gratitude for the effort put into the project over the past year and looked forward to seeing both projects at that corner move forward. He appreciated the comments by Authority Member Valencia and hoped Greenlaw would enter discussions with the building trades. Ms. Stepter agreed to relay the request. Authority Member Diaz expressed his appreciation for the project's design, amenities, and affordability to help bring more change and action to Beach Blvd. Vice Chair Faessel thanked staff and the developer for the project, congratulated the team for their great work, and hoped to break ground quickly. Chairman Sidhu expressed his appreciation to his colleagues, staff, and the developer for helping address Beach Blvd. and helping the community via affordable housing. Housing Authority Action: MOTION: Vice Chairman Faessel moved to approve RESOLUTION NO. AHA -2021-002 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY approving a Preliminary Award Letter regarding the 39 Commons II Affordable Housing Project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, LLC; authorizing the Acting Executive Director of the Anaheim Housing Authority to execute and implement the Preliminary Award Letter; authorizing the Acting Executive Director to negotiate the terms of and finalize an Affordable Housing Agreement, the Ground Lease, and other implementing agreements and instruments and to implement such agreements and instruments, including authorizing the issuance of warrants; and making certain other findings in connection therewith; and approve a Local Agency Agreement with the California Department of Toxic Substances Control, in an initial estimated amount of $125,041, for oversight services of site contamination remediation; and authorize the Acting Executive Director of the Housing Authority, or designee, to execute and administer the agreement on behalf of the Authority, seconded by Authority Member Diaz. Anaheim Housing Authority Minutes of May 18, 2021 Page 5 of 5 ROLL CALL VOTE: AYES — 7 (Chairman Sidhu and Authority Members Faessel, Diaz, Brandman, Moreno, Valencia, and O'Neil); NOES — 0. Motion carried. City Council Action: MOTION: Council Member Diaz moved to approve RESOLUTION NO. 2021-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving a Preliminary Award Letter regarding the 39 Commons II Affordable Housing Project between the Anaheim Housing Authority and Greenlaw 39 Commons Beach, LLC; authorizing the Acting Director of Community and Economic Development to execute and implement the Preliminary Award Letter and other implementing agreements and instruments on behalf of the City in connection therewith, as and when applicable, including the issuance of warrants; and making certain other findings in connection therewith; and RESOLUTION NO. 2021-045 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM authorizing the Acting Director of Community and Economic Development to submit a joint application to the Strategic Growth Council and the State of California, Housing and Community Development Department, for funding under the Affordable Housing and Sustainable Communities Program on behalf of the City of Anaheim, with Greenlaw 39 Commons Beach, LLC (or its LP Developer assignee) as co - applicant with the City (total approximate amount up to $30,000,000), seconded by Vice Chair Faessel. ROLL CALL VOTE: AYES — 7 (Mayor Sidhu and Council Members Faessel, Diaz, Brandman, Moreno, Valencia, and O'Neil); NOES — 0. Motion carried. ADJOURNMENT: With no further business to conduct, Chairman Sidhu adjourned the meeting of the Anaheim Housing Authority at 6:16 P.M. Ily submitted, T4ifr-e-a'Bass, CMC Secretary, Anaheim Housing Authority