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CC - Adoption of a Resolution Waiving Permit Fees in the Approximate Amount of $200,000 Related to the Development of 10 Affordable Housing Units on Culver City Housing Authority-Owned Property Located at 4044-4068 Globe Avenue.
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Contact Person/Dept: Tevis Barnes / CDD
Phone Number: (310) 253-5782
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [] Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (Email) Meetings and Agendas - City Council (01/21/16)
Department Approval: Sol Blumenfeld, Director of Community Development
(01/19/16)
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RECOMMENDATION:
Staff recommends the City Council adopt a resolution waiving permit fees in the approximate amount of $200,000 related to the development of 10 affordable housing units on Culver City Housing Authority (Authority)-owned property located at 4044-4068 Globe Avenue.
BACKGROUND:
In June 2005, the former Culver City Redevelopment Agency (Former CCRA) purchased seven surplus properties on Globe Avenue (Site) from the California Department of Transportation for $3.1 million with Housing Set Aside Funds for the purposes of creating affordable housing (which Site was subsequently transferred to the Culver City Housing Authority when the State of California dissolved all redevelopment agencies in California in February, 2012). The Site is comprised of seven lots totaling 32,361 square feet and is zoned R-2, Residential Two Family, which allows the development of up to two residential dwelling units (townhomes) per lot.
On June 13, 2011, the Authority Board selected Habitat for Humanity of Greater Los Angeles (HFHGLA) as the affordable housing developer and on December 5, 2011, approved a Disposition, Development and Loan Agreement (DDA) for the construction of 10 affordable ownership housing units with Former CCRA financial assistance including mortgage assistance funds.
With the statewide dissolution of redevelopment agencies, the Authority retained the Site but not the mortgage assistance funds that were proposed as part of the Project. In response to the loss of Former CCRA mortgage assistance funding, the project was revised to include two workforce housing units.
On December 14, 2015, the Authority Board approved an Amended and Restated Disposition, Development and Loan Agreement (Amended DDA) which addressed the new project components in order to make the project financially feasible. Section 3.4, Costs of Construction, of the Amended DDA requires the Authority to exercise commercially reasonable efforts to cause the City to waive City permit fees for the project in the amount of approximately $200,000 and anticipates that the City would address such fee waiver through a resolution.
Staff recommends the City Council grant the request of the Authority and waive such permit fees under the conditions set forth in the Amended DDA and the proposed Resolution.
DISCUSSION:
Section 3.4 (Cost of Construction) of the Amended DDA states the cost of developing the Project and constructing the improvements is the responsibility of Developer. The development costs are set forth in the project budget and approved under the Amended DDA. This Section also provides that the Authority will exercise commercially reasonable efforts to cause the City to waive permit fees for the Project in the amount of approximately $200,000. Staff recommends that the Council consider and approve the recommendation to waive permits fees related to the development of the Project
Based upon information obtained from both the Planning and Building Safety Divisions, the estimated permit fees for the Globe Project is $199,462. The building permit fees include Park Land Fees and Sewer Fees. Per the Culver City Municipal Code (CCMC) under Sections 15.06.120 and 15.06.325, the 4 low-income and 4-moderate income units are exempted from the Art Fee and the Park Land Fee. A breakdown of estimated fees is:
• Building permits = $123,387.24
• Mechanical permit = $7,900
• Electrical permits = $5,000
• Plumbing permits = $11,000
• Planning entitlements for Site Plan Review with a variance = $52,175
• Estimated total of all fees = $199,462
Staff also recommends the City Council authorize the City Manager to approve a waiver of up to 25% above the estimated permit fees in order to address any unforeseen circumstances. Such recommended authority is contained in the proposed resolution.
If approved, the Globe project will be the first new construction affordable ownership project developed in the City and the first HFHGLA project developed on the Westside in over 10 years.
FISCAL ANALYSIS:
The Former CCRA expended $3.1 million to purchase the Site from Caltrans in 2005. The land will be gifted to the Developer. Based on an analysis conducted by the City’s financial consultant, Keyser Marston and Associates (KMA), the projected construction costs are approximately $3.6 million or $360,000 per unit. The Developer is seeking a contribution of the land and forgiveness of City fees in the amount of approximately $200,000. This translates to a total City contribution of $3.3 million.
ATTACHMENTS:
Proposed Resolution
RECOMMENDED MOTION(S):
That the Culver City Council:
Adopt a resolution (1) approving the waiver of permit fees in the approximate amount of $200,000 related to the development of the Culver City Housing Authority owned property located at 4044-4068 Globe Avenue for the creation of 10 affordable and workforce ownership housing units; and (2) authorizing the City Manager to approve a waiver of up to 25% above the estimated permit fees.