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Home My WebLink About080195 RDA AgendaAGENDA CITY OF TEMECULA OLD TOWN REDEVELOPMENT ADVISORY COMMITTEE A REGULAR MEETING TEMECULA CITY HALL - MAIN CONFERENCE ROOM 43174 Business Park Drive August 1, 1995 - 6:30 PM CALL TO ORDER: Chairman Dallas Gray presiding. Flag Salute Agency Member Walton ROLL CALL: Committee Members: Bridges, Gray, Jenkins, Reed, Walton PUBLIC COMMENTS A total of 15 minutes is provided so members of the public can address the Council on items that are not listed on the Agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you desire to speak to the Council about an item not listed on the Agenda or on the consent Calendar, a pink "Request To Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name and address. For all other agenda items a "Request To Speak" form must be filed with the City Clerk before the Council gets to that item. There is a five (5) minute time limit for individual speakers. COMMITTEE BUSINESS 1 ADDroyal of Minutes RECOMMENDATION: 1.1 Approve the minutes of July 11, 1995. 2 Prooosed Purchase and Resale of the Rancho West Apartments RECOMMENDATION: 2.1 Review and provide comments on the purchase of Rancho West Apartments from the Resolution Trust Corporation for a total of $2,255,00; and 2.2 Review and provide comments on the subsequent resale of the project to Coachella Valley Housing Coalition (CVHC) for operation as an affordable housing project in perpetuity. EXECUTIVE DIRECTOR'S REPORT COMMITTEE MEMBER REPORTS 21~m~d~/O71OgE,fdc 1 07/24/96 ADJOURNMENT Next regular meeting: September 5, 1995, 6:30 PM, Temecula City Hall, Main Conference Room, 43174 Business Park Drive, Temecula, California ITEM NO. I MINUTES OF A REGULAR MEETING OF THE CITY OF TEMECULA OLD TOWN REDEVELOPMENT ADVISORY COMMITTEE JULY 11, 1995 A regular meeting of the City of Temecula 01d Town Redevelopment Advisory Committee was called to order on Monday, July 11, 1995, 6:30 PM at Temecula City Hall Main Conference Room, 43174 Business Park Drive, Temecula, California. Chairman Gray presiding. PRESENT: 5 COMMITTEE MEMBERS: Bridges, Gray, Jenkins, Walton, Reed ABSENT: 0 COMMITTEE MEMBERS: None Also present were Associate Planner David Hogan and Joan Price, Recording Secretary. PUBLIC COMMENT None. COMMITTEE BUSINESS ADDrOYal Of Minutes It was moved by Committee Member Bridges, seconded by Committee Member Jenkins to approve the minutes of June 6, 1995. The motion carried as follows: AYES: 5 COMMITTEE MEMBERS: Bridges, Gray, Jenkins, Walton, Reed NOES: 0 COMMITTEE MEMBERS: None ABSENT: 0 COMMITTEE MEMBERS: None 1996-2000 Capital Imorovement Proqram Associate Planner Dave Hogan presented the Capital Improvement Program for FY 1996-2000 which includes sixty-three projects to be funded. Included are 24 infrastructure projects; the 1-15 and Highway 79-South interchange; Margarita/Winchester Road project; and the realignment of Diaz west of Moraga. A new project included in the Old Town area is the storm drain improvement at Sixth Street and Third Street. Minutes.rdc\O?l195 OLD TOWN REDEVELOPMENT ADVISORY COMMITTEE JULY 11o 1995 Committee Member Reed directed the following questions to staff: "Were the funds to purchase the Sixth Street parking lot from the General Fund, or the RDA?" Planner Hogan responded that it was expended from the General Fund to be reimbursed by the RDA. "Is a lO-inch sewer line large enough for Old Town?" Planner Hogan responded that the engineers are entrusted with the calculations for the adequacy of the service and that the CIP estimates are for the purpose of budgeting. "Why is Murrieta Creek listed as a Priority Two?" Planner Hogan responded that the project will be funded by the Flood Control District. She indicated concern with the costs estimated for the parking area at Sixth street. Planner Hogan responded that the figures represent typical construction costs and are not exact. Committee Member Jenkins directed the following questions to staff: "What is the schedule on the construction for the sewer line?" Planner Hogan responded that it is reasonable to assume completion in 6-7 months. Dave Hogan also reported that the First Street bridge, the sewer line and the water lines are included in the design phase. "Is the Streetscape to include undergrounded utilities?" Planner Hogan responded that the decision to underground utilities has not been made. Committee Member Gray expressed concern on the maintenance yard lease costs? Associate Planner Hogan asked Committee Members if they would like to send comments to the City Council. Committee Member Jenkins recommended the Council consider the Flood Control District Project to be a Priority One, and that the Flood Control District be responsible for the costs. EXECUTIVE DIRECTOR'S REPORT Associate Planner Dave Hogan distributed written responses from the Executive Director to the questions posed by the Committee at the June 6, Minutes.rdc\071195 OLD TOWN REDEVELOPMENTADVISORY COMMITTEE JULY 11. 1995 meeting. These included the Stipulated Judgement, status on traffic and park studies, the lease for the Temecula Shuttle, the balance of the CIP (which is 14.9 million dollars) and the grant funded by the RDA, (which was in the amount of $50,000 in February 1992, to California Curves for building re- construction to comply with earthquake safety standards). COMMITTEE MEMBER REPORTS None given. ADJOURNMENT A motion for adjournment was made by Committee Member Bridges, seconded by Committee Member Jenkins at 7:20 PM and unanimously carried. The next regular meeting of the Old Town Redevelopment Advisory Committee will be held on Tuesday, August 1,1995, 6:30 PM, Temecula City Hall Main Conference Room, 43174 Business Park Drive, Temecula, Californra. Minutes.rdc\071195 _3 ITEM NO. 2 TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: FROM: DATE: SUBJECT: Members of the Redevelopment Advisory Committee Ronald E. Bradley, Executive Director August 1, 1995 Proposed Purchase and Resale of Rancho West Apartments PREPARED BY: Marilyn Whisenand, Redevelopment Director RECOMMENDATION: It is requested that the Old Town Redevelopment Advisory Committee review and provide comments on the following: (1) The purchase of Rancho West Apartments from the Resolution Trust Corporation for a total of 92,255,000; and, (2) The subsequent resale of the project to Coachella Valley Housing Coalition (CVHC) for operation as an affordable housing project in perpetuity. BACKGROUND: On March 28, 1995, a report on this project was discussed with the City Council/Agency in Closed Session (Government Code Section 54956.8). Following the Closed Session discussion, direction was given to the Agency's negotiator to execute a Letter of Intent to purchase Rancho West Apartments from the Resolution Trust Corporation (RTC) and to enter into negotiations with the Coachella Valley Housing Coalition (CVHC) to act as ultimate owner and operator of the project. During the last sixty days, Agency staff and consultants have performed due diligence on the Rancho West Apartments in order to determine the validity of the price established by RTC's latest valuation of 92,734,314. A review of current operating expenses and income, vacancy factors affecting the project, and the project's physical condition, along with consultation with CVHC the ultimate owner of the project, has resulted in a recommendation to offer a total of ~2,255,000for the purchase of the property. If the Agency approves the recommended purchase price and the RTC accepts the offer, it is proposed that the property would be purchased and immediately resold to the Coachella Valley Housing Coalition who would operate the affordable housing project in perpetuity. R:\REDEV\RANCHO.WST 7/24/95 klb 1 AFFORDABILITY PARAMETERS: Affordability restrictions would be placed on the property which provide rentals affordable to households earning no more than 50% of median income for 43 units and rentals affordable to households earning no more than 80% of median income for a total of 105 units. Two units would be operated as transitional/emergency housing units. Emergency housing units would be provided for a temporary period for households who are without housing or about to be without housing only for a temporary period until permanent housing accommodations can be found. Based on existing income standards, rents resulting from affordability restrictions will range from approximately (~327 to 9455 for one bedroom units and from 9419 to 9500 for two bedroom units. Current market rents within the project are reported of 9455 per month for one bedrooms and 9500 per month for two bedrooms. FINANCING: RTC will provide Coachella Valley Housing Coalition with 95% financing for the project at 11.25% interest. This "bridge loan" can be refinanced with no penalty at a future point in time. The Temecula Redevelopment Agency will receive a "public servicing fee" of 5% for facilitating the purchase of the property and ultimate resale to Coachella Valley Housing Coalition. This servicing fee will be passed on to CVHC to provide the necessary 5% down payment. Additional funds will be required for capital improvements to the project, operating reserves, replacement reserves, and other acquisition expenses. These expenses totaling 9240,300will be funded by a County HOME Grant of 9150,000 and RDA Housing Set Aside Funds of 990,300. In order to provide financial support for the transitional housing program and maintain affordability levels at the standards required by the RDA, a maximum financial support is proposed from RDA Housing Funds of 9100,000 per year for the first 3 years of project operation. The amount of actual subsidy provided will depend on annual verification of the project's operating pro forma. After the initial 3 year rent up period, it is expected that project income will completely support operational costs. The attached income and expense pro forma outlines the proposed financing for the project and the source and application of funds, Attachments: 1. Income and Expense Pro Forma - Page 3 R:\REDEV\RANCHO.WST 7/24/95 klb 2 ATTACHMENT NO. 1 R:%REDEV\RANCHO.WST 7/24/96 klb 3 JUL-20-95 THU 15:06 O.V. BOOSIN6 OOAUTION FRX NO. 6193426466 P. 02 RTC 95% Loan: $2,142,250 ' Rate: 113,5 Term: 30 ym Tqrtal PrOjects Costs:, $2,~AI5 300 ~0 E '$ 90,300 C~unty H M, - $ 150,000 RTC Public 8er, $ 1!2,750 RTC Mort. - $2.t42.250 Total -$2~496,30g Annual Qebt Service: $249,685 RTC Required Debt ServiCe Cove~ge: 'f .t7% Acquisition Coat: $2.255,000 RTC Loan - $2,142,250 5% Down -$ 112,750 Refrigerators - $ 60,000 Op. Reserves · $ t5,000 Replsc. Reset. -$ 50~000 Acqu. Expen.- $ 25,000 PjTC Monitoring4 . 7,500 Capitol imp. - $ ,82.800 (See Note Total - $2,495,300 NOte #1: Projected ExDer~es t. Adm~istratlve (c~ntrac~ management, ' n~rk~t~ng, audit, legal, office expense) $ 82,5~)0 * 1 2, Saledes and Sane~Ls $ ;~8,5~)0 * 3. Maintenance (supplies, grounds. pajnfing, pest, et~.) $ 85,0~)0 * 4. Utj ~s (trash, w~terlsewer, , i el~C. lga~) $111,000 - 5.' Asse~smeqts and Mis¢. Taxes $ 10 000 6, RTC Monitodn~ $ 7,500 7. Replaceme'nt Reserves (P, TC required amount) $ 37,8b0 8. Insurance ¢nduding flood) $ 23,000 9. secu'rity (actuse) S 44,~po t0, Ope~aUr~g Reserves $ 13.500 Tdtal ,Projected Expenses $553,0.80 Note fr2: Capitol Improvements 1. Necessary CapitDi Impro~/. (jacobs Report) $17,750 2. Additibnal Improvements (Jacobs R(~port) $12,650 3. Awnings $19,600 4. Three fenced tot !ors $24,000 5. Twenty-fou~' water heaters $ 4,800 6, Furniture for Transiffonai Apts ($2,500 2br & $1,500 I br) $ 4000 Total Capitol Improvements $82,800 ' To Hy~er and Co; property m~nagement compqny (none of this flows to CVHC) · .-City Contribution, First Year $330,62~ ** -C t~ CentdbuUon, Subsequent Years $ 84,645 (rental subsidy pTus financing uses) (subsidy Only) ** RTC Pubtic Services Fee of $112,750 plus RDA of $90 300