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Home My WebLink About04/10/2000 - City Council Special Meeting - Redevelopment AgencySPECIAL JOINT MEETING OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY CITY OF COSTA MESA APRIL 10, 2000 The City Council and the Redevelopment Agency of the City of Costa Mesa, California, met in special joint session on April 10, 2000, at 4:15 p.m., in the Council Chambers of City Hall, 77 Fair Drive, Costa Mesa, in conjunction with the regularly scheduled Redevelopment Agency meeting ,which commenced- at 4:00 p.m. Notice of the special meeting was given as required by law. ROLL CALL Council/Agency Members Present: Mayor/Agency Member Gary Monahan Mayor Pro Tem/Agency Vice Chairperson Libby Cowan Council Member/Agency Chair- person Heather Somers Council/Agency Member Joe Erickson Council/Agency Member Linda Dixon Council/Agency Members Absent: None Officials Present: City Manager Allan Roeder City Attorney Jerry Scheer Neighborhood Improvement Manager Muriel Ullman Assistant City Engineer Ernesto Munoz Executive Secretary Marie Thompson PUBLIC HEARING To facilitate the public hearing concerning Habitat for Habitat for Humanity Humanity of Orange County, Inc., Council Member/Agency of Orange County, Chairperson Somers and Mayor/Agency Member Monahan Inc. agreed that the Agency Chairperson would conduct the joint public hearing and preside over all .matters on behalf of the City and the Agency. The Executive Secretary announced that the Affidavit of Publication is on file in the Redevelopment Agency office, and that no communications were received. The Neighborhood Improvement Manager summarized the Agenda Report dated April 5, 2000; -as f-^.;!ows: Pursuant to the Affordabie Housing Agreement dated September 14, 1998, between tie Reo'evelopment Agency and Habitat fo,' Humanity of Or,=mnC e_ County, Inc., the Agency purcha:,ed sev; r^1- parcels of Lend from the City for disposition io, and construction. by Habitat for Humanity of Orange ' County,, Inc., of -new single- family detached homes to be .madr: available at an affordable cost to eligible, very lo%r/-Ariccrne families. 1 1 The First Amendment to the Affordable Housing Agreement dated April 12, 1999, provided that one new single-family home would be constructed at 2136 Wallace Avenue. In addition, negotiations of terms for an Affordable Housing Agreement and HOME Investment Partnership Agreement have taken place for development of three new four-bedroom houses on City -owned parcels located at 282 and 286 Del Mar Avenue. The estimated cost to the Agency to implement the proposed project is approximately $500,000.00 to $550,000.00. The recommended sources of funding include $450,000.00 in HOME Program funds, and $113,000.00 from the Redevelopment Housing Fund. The 1995-2000 Consolidated Plan is in place for affordable housing projects; however, new construction and home ownership, etc. are not included. It will require an amendment which staff has processed in accordance with applicable federal regulations. In order to implement the terms of the Affordable Housing and HOME Investment Partnership Agreement, it is necessary that the subject property is conveyed from the City to the Agency. The Agency proposes to pay full fair market value as confirmed by a recent appraisal. A Purchase and Sale Agreement between the City and the Agency has been developed for disposition of the subject property. The proposed Cooperation Agreement between the City and Agency causes the transfer of HOME Program funds for the project. Habitat for Humanity of Orange County, Inc. will purchase the property from the Agency at fair market value, and will construct three houses on the site for very low-income families. There will be no payment to the Agency by the owners if the homes are occupied in accordance with the Conditions, Covenants and Regulations (CC&R's). The Agency will receive a share of the equity if the owner sells to a noneligible buyer. Mark Korando, Habitat for Humanity of Orange County, Inc., 2165 South Grand Avenue, Santa Ana, commended staff, the Agency, and the City Council for their cooperation in developing the agreement. Mr. Korando reported that one of the houses will be the first built by "all women", and invited all women to participate. Mayor Pro Tem/Vice Chairperson Cowan stated that several of her friends have committed to being involved with the project. Council/Agency Member Dixon asked if maintenance of the homes is supervised. Greg Compton, President of the Board of Habitat for Humanity of Orange County, Inc., responded that the CC&R's agreement requires that the home owner maintain the property at a certain level. He added that a recent inspection indicated that Habitat for Humanity properties were well maintained, and noted that the Agency's CC&R's contain maintenance provisions that can be enforced at any time should it become necessary. There being no other speakers, Council Member/Agency. Chairperson Somers closed the public hearing. Mayor/Agency Member Monahan stated that as much as he admires the work of Habitat for Humanity, he could not support the project because of its location. He believed that for the amount of money involved, several projects in other areas of the City would be preferable. Mayor/Agency Member Monahan noted that if subdivision concerns are being reviewed seriously, this project would appear contradictory to that which he sees coming "down the pike". He commented that future ,projects by Habitat for Humanity should be in locations where property values are lower since these are the areas where help is needed. Council Member/Agency Chairperson Somers stated that the price of the property and the subdivision also concerned her; however, she recognized that there will be three houses on one lot, versus five, six, or ten houses on one lot. She stated that in light of the quality standards of Habitat for Humanity, she thought this would be a wonderful project, and noted that the subdivision issue will be discussed at the Council Study Session in May. MOTION/ Adopted A motion was made by Mayor Pro Tem Cowan, seconded City Council by Council Member Erickson, and carried 4-1, Mayor Resolution 0025 Monahan voting no, to adopt City Council Resolution 00-25: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, APPROVING AN AMENDMENT TO THE FY 1995-2000 CONSOLIDATED PLAN; APPROVING A PURCHASE AND SALE AGREEMENT BETWEEN THE CITY OF COSTA MESA AND THE COSTA MESA REDEVELOPMENT AGENCY; CONSENTING TO THE AFFORDABLE HOUSING AND HOME INVESTMENT PARTNERSHIP AGREEMENT BETWEEN THE COSTA MESA REDEVELOPMENT AGENCY AND HABITAT FOR HUMANITY OF ORANGE COUNTY, INC.; AND MAKING CERTAIN OTHER FINDINGS IN CONNECTION THEREWITH. Adopted Redevelop- A motion was made by Vice Chairperson Cowan, seconded ment Agency by Agency Member Erickson, and carried 4-1, Agency Resolution 219-00 Member Monahan voting no, to adopt Redevelopment Agency Resolution 219-00: A RESOLUTION OF THE COSTA MESA REDEVELOPMENT AGENCY APPROVING A COOPERATION AGREEMENT BETWEEN THE CITY OF COSTA MESA AND THE COSTA MESA REDEVELOPMENT AGENCY; APPROVING A PURCHASE AND SALE AGREEMENT BETWEEN THE CITY AND THE AGENCY; AND APPROVING AN AFFORDABLE HOUSING AND HOME INVESTMENT PARTNERSHIP AGREEMENT BETWEEN THE COSTA MESA REDEVELOPMENT AGENCY AND HABITAT FOR HUMANITY OF ORANGE COUNTY, INC.; AND MAKING CERTAIN OTHER FINDINGS IN CONNECTION THEREWITH. ADJOURNMENT Council. Member/Agency Chairperson Somers adjourned the ,special joint meeting at 4:27 p.m. Mayorothe City of Costa Mesa r. ATTEST: Deputy City C rk of the City of Costa Mesa 1 1 J 83