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AHA-2010/06/22ANAHEIM HOUSING AUTHORITY REGULAR MEETING OF JUNE 22, 2010 The Anaheim Housing Authority met in regular session in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard. Present: Chairman Curt Pringle, Authority Members: Lord Galloway, Bob Hernandez, Lucille Kring, and Harry Sidhu. Staff Present: City Manager Tom Wood, City Attorney Cristina Talley, and Secretary Linda Andal A copy of the agenda was posted on June 18, 2010 on the kiosk outside City Hall. At 5:40 P.M., Chairman Pringle called the meeting of the Anaheim Housing Authority to order for a joint public comment session with the Anaheim City Council and the Anaheim Redevelopment Agency. ADDITIONS /DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: No comments offered during oral communications related to the Housing Authority agenda. JOINT HOUSING AUTHORITYXITY COUNCIL /REDEVELOPMENT AGENCY 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). Housing Authority Action: RESOLUTION NO. AHA 2010 -001 A RESOLUTION OF THE GOVERNING 6286 BOARD OF THE ANAHEIM HOUSING AUTHORITY approving (i) a Cooperation 6287 Agreement (transfer of 700 E. South Street Affordable Housing Site) by and between the Anaheim Redevelopment Agency and the Anaheim Housing Authority, (ii) 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) a Preliminary Site Plan. Authority 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 the Council to consider approving the Redevelopment Agency conveying 700 E. South Street to the Anaheim Housing Authority and for approving a long- 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 Anaheim Housing Authority Minutes of June 22, 2010 Page 2 of 4 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 Proposal 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 the 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 Item No. 9 on tonight's agenda was related to this matter, asking the developer, The Related Companies, to work with the City on a revitalization plan for the Avon Dakota neighborhood. In addition, staff was requesting funding to be allocated by the City and the Housing Authority to help in acquiring targeted sites within that Avon Dakota neighborhood. She added staff saw this as a joint effort to not only develop the South Street 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 efforts for the Avon Dakota community, however, she encouraged Council to 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. Anaheim Housing Authority Minutes of June 22, 2010 Page 3 of 4 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 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 had spent resources and focused on troubled neighborhoods and had expanded the rehabilitation portion 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. Authority 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 7th deadline, the next opportunity for tax credit application should be in March of 2011. Authority 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. Authority Member Hernandez moved and Chairman Pringle seconded to approve RESOLUTION NO. AHA 2010 -001 A RESOLUTION OF THE GOVERNING BOARD OF THE ANAHEIM HOUSING AUTHORITY approving (i) 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) 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) a Preliminary Site Plan. Roll Call Vote: Ayes — 4: Chairman Pringle and Authority Members: Galloway, Hernandez and Sidhu. Noes — 0. Abstention — 1: Authority Member Kring. Motion Carried. CONSENT CALENDAR: Authority Member Kring announced she would record an abstention on Item No. 9 due to a potential conflict of interest. Authority Member Sidhu moved to approve the consent calendar as presented, seconded by Authority Member Kring. Anaheim Housing Authority Minutes of June 22, 2010 Page 4 of 4 Roll Call Vote: Ayes — 5: Chairman Pringle and Authority Members: Galloway, Hernandez, Kring and Sidhu. Noes — 0. Motion Carried. 9. RESOLUTION NO. AHA 2010 -002 A RESOLUTION OF THE ANAHEIM 6284.1 HOUSING AUTHORITY approving a Cooperation Agreement (Avon /Dakota Neighborhood Revitalization funding) among the Authority, City of Anaheim, and Anaheim Redevelopment Agency; approving the Neighborhood Revitalization Agreement for the Avon /Dakota Neighborhood between the Authority and Avon Dakota Housing Partners, L.P.; and making certain findings in connection therewith (continued from Authority meeting of June 8, 2010, Item No. 06; related to Agency Item No. 01 and Council Item No. 38). Authority Member Kring recorded an abstention due to a potential conflict of interest. Vote: Ayes — 4; Noes — 0; Abstention — 1. 10. RESOLUTION NO. AHA 2010 -003 A RESOLUTION OF THE ANAHEIM HOUSING AUTHORITY (i) authorizing the submittal of an application to the California AHA 177 State Department of Housing and Community Development for funding under the CalHome Program, (ii) if selected for such funding, authorizing the execution of a standard agreement, any amendments thereto and any related documents necessary to participate in the CalHome Program, and (iii) if selected for such funding, amending the budget for fiscal year 2010 -11 accordingly. 11. Approve minutes of the Housing Authority meeting of June 8, 2010. ADJOURNMENT: With no other business to conduct, Chairman Pringle adjourned the meeting at 7:14 P.M. Re pec ully sub ' ed, Linda N. Andal, CMC Secretary, Anaheim Housing Authority.