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Home My WebLink AboutRES NO 228-05 RESOLUTION NO. "228;;05 A RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD APPROVING THE UPDATED REPLACEMENT HOUSING PLAN FOR THE OLD TOWN KERN MIXED·USE PROJECT. WHEREAS, the Old Town Kern-Pioneer Redevelopment Project Area ("Project Area") was established by the Bakersfield City Council in June, 1999; and WHEREAS, the Old Town Kern-Pioneer Redevelopment Plan was adopted by the Bakersfield City Council at the same time; and WHEREAS, one of the goals of the Old Town Kern-Pioneer Redevelopment Plan is to eliminate blight and encourage development in the Project Area; and WHEREAS, as such, the Agency and developers are proposing developing a housing project and commercial development in the Project Area ("the Old Town Kern Mixed-Use Project"); and WHEREAS, if the Old Town Kern Mixed-Use Project is approved, a number of low and moderate-income residential units will be eliminated from the housing stock; and WHEREAS, California Redevelopment Law (Health and Safety Code section 33000 et. Seq.) requires a redevelopment agency to ensure that any low and moderate income residential unit which is eliminated from the housing stock as a result of a project in which the Agency is involved is replaced within four years; and WHEREAS, to ensure the housing stock is replaced, the Bakersfield Redevelopment Agency and the City Council needs to approve a replacement housing plan. NOW, THEREFORE, BE IT RESOLOVED by the Council of the City of Bakersfield as follows: 1. The above recitals are true and correct. 2. The updated replacement housing plan attached hereto as Exhibit "A" meets all of the requirements of California Health and Safety Code section 33413.5 and is hereby approved to be implemented should the Old Town Kern Mixed-Use Project be approved and proceed. '< 'òÞ-.Kf,¡> C) ó' >- "' f-- m _ r- o tJ ORIGINAL the I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by Council of the Çi!~ of Bakersfield at a regular meeting thereof held on OCT 12 201J'j by the following vote: GYW NOES: .-ßBSTAII\i: '~D ,....-/ <---'" ---- L/ ~ c- COUNCILMEMBER CARSON, BENHAM, MAGGARD, COUCH. HANSON. SULLIVAN. SCRIVNER COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER ~"--VYf¥-.--''---' APPROVED OCT 1 2 '2005 ~.,. 4.ffiL~ PAMELA A. McCART Y, CMC CITY CLERK and Ex Officio Clerk of the Council of the City of Bakersfield HA EY L. HALL MAYOR of the City of Bakersfield APPROVED as to form: VIRGINIA GENNARO City Attorney By: ida. ~ ALLEN SHAW Deputy City Attorney X ,?¡,A_.I(~.(; C) /0 .)... ..,.-, I- m .- ,.. o (J ORIGINAl. . EXHIBIT A Updated Replacement Housing Plan for the Old Town Kern Mixed-Use Project Bakersfield Redevelopment Agency and City of Bakersfield Old Town Kern-Pioneer Redevelopment Project Area August 2005 Original Plan September 2002 <¿,M(, « '; O· ,.¡ ., >- -- Õ ORl(,'f'," , : , OLD TOWN KERN MIXED USE PROJECT REPLACEMENT HOUSING PLAN August 2005 SUMMARY UPDATE The replacement housing plan is being updated to reflect changes in the scope of proposed Old Town Kern Mixed Use Development. In August 2005, the Bakersfield Redevelopment Agency approved an agreement initiating negotiations with Baker Street Village, LLC formed by The Triumph Companies (Triumph). As a result, the proposed scope of the project has changed. The revised development proposal for the Old Town Kem Mixed Use Development Project consists of approximately 49,200 square feet of retail comprising five buildings, rehabilitation of the existing "Coronet" Building, 14 loft units above two of the retail buildings, 18 three bedroom/family-room townhomes, and 60 one and two bedroom affordable senior units. As a result, the western boundary of the proposed development has been extended to include three residential properties located on Kern Street north of the alley. An Exclusive Negotiation Agreement between the Bakersfield Redevelopment Agency and The Village at Baker Street, LLC was approved August 8, 2005. The agreement covers a period of 120 days from the date of execution of the Agreement. The 120-day limit may be extended sixty (60) days by written amendment. During the time Triumph will complete their development planning, economic analysis and financial due diligence and work with staff to draft the deal points required for the development to proceed. The deal points will then be incorporated into a Disposition and Development Agreement that will include the specific scope of the development, any Agency financial participation requirements, a schedule of performance, evidence of private financing, required insurance, and evidence of commercial leases for tenants that would also be involved in the project. 1. Introduction The Redevelopment Plan for the Old Town Kern-Pioneer Redevelopment Project Area was prepared by the Bakersfield Redevelopment Agency ("Agency") and adopted by the Bakersfield City Council on June 30, 1999 by Ordinance No. 3904. California redevelopment law requires that whenever dwelling units located in a redevelopment project area housing persons or families of low or moderate income are demolished by the Agency or a project assisted by the Agency, the Agency shall, within four years, rehabilitate, develop, or construct, or cause to be rehabilitated, developed or constructed, for rental or sale to persons or families of low or moderate income, an equal number of dwelling units or a number of dwelling units which contain an amount of bedrooms equivalent to the amount of bedrooms that were demolished. Baker Street Replacement Housing Plan S:\Baker Street Revitalization\Updated Baker St Replacement Housing Plan. DOC I' Î>p.i\~>\ , ., <S '0...,_ >- 1-' P,'I o c ORIG!NAI 2 This document constitutes the updated Replacement Housing Plan for the Old Town Kern Mixed Use Project. The Plan will guide and facilitate the Agency's efforts to rehabilitate, develop, or construct, or cause to be rehabilitated, developed or constructed, replacement housing for persons or families of IDW or moderate income in accordance with the requirements of the Old Town Kern-Pioneer Redevelopment Plan and California redevelopment law. 2. General Definitions The following definitions will govern the construction of this Replacement Housing Plan unless the context otherwise requires: A. "Plan" means this Replacement Housing Plan. B. "Redevelopment Plan" means the Redevelopment Plan for the Old Town Kern-Pioneer Redevelopment Project Area. C. "Project Area" means the area included within the boundaries of the Old Town Kern-Pioneer Redevelopment Project Area. D. "Agency" means the Bakersfield Redevelopment Agency. E. "City" means the City of Bakersfield, Califomia. F. "Replacement dwelling unit" means a dwelling unit rehabilitated, developed or constructed in replacement of a dwelling unit destroyed or removed from the low and moderate income housing market by the Agency and which is decent, safe and sanitary and contains at least the same number of bedrooms and other living areas as the dwelling unit destroyed or removed by the Agency. The Replacement dwelling unit may be for rent or for sale. G. "Affordable rent", "persons and families of low or moderate income" and "very low income households" shall include, where applicable, senior citizens and the handicapped, shall have the same meanings as set forth in the California Health and Safety Code and regulations pertinent thereto. H. "Moderate income", "Iow income", and "very low income" shall have the same meaning as set forth in the Health and Safety Code §50093 - 50105. I. "Project" means the Old Town Kern Mixed-Use Baker Street Project. J. Legal Resident" pursuant to Public Law 105-117, aliens not lawfully present in the United States are not eligible for relocation assistance, unless such ineligibility would result in exceptional hardship to a qualifying spouse, parent, or child. All persons seeking relocation assistance will be required to certify that they are a United States citizen or national, or an alien lawfully present in « 'ò~~[:~, the United States. o~, >-. no Baker Street Replacement Housing Plan 1- r- S:\Baker Street Revitalization\Updated Baker 8t Replacement Housing Plan.DOC Õ t:., ORIG'NAL 3 ,_____. ..__"'.____.__._n...._._,. ~~,-~.~-~.-_._.~..,-~-_. 3. PurDose of the Plan The implementation of the updated Old Town Kern Mixed-Use Project implementation will result in the destruction and/or removal of approximately five (5) residential dwelling units, all of which are assumed, for the purposes of this Plan, to be housing persons and families of low and moderate income. Comparable dwellings in are available throughout the City. Functional equivalency will be the objective standard to find suitable comparable housing. Decent, safe and sanitary exist throughout the City of Bakersfield. The Agency may consider reasonable trade-offs for specific features when the replacement unit is equal to or better that the displacement dwelling. The following factors will be considered: adequate size to accommodate occupants; in an area not subject to adverse environmental conditions; in a location not less desirable than the location of the displaced person; in a typical residential development. The following chart outlines the actual number of units to be destroyed or removed and the replacement housing to be provided: A. Dwellina Units to be Removed Number of Bedrooms Number of Units 6 2 2 3 1 1 Total Units to be Removed 5 B. ReDlacement Units to be Constructed or Rehabilitated As a direct result of the Old Town Kern Mixed Use project, the Agency shall rehabilitate, develop or construct, or cause to be rehabilitated, developed or constructed, for rental or sale to persons and families of low or moderate income not less than an equal number of replacement dwelling units at affordable housing costs consistent with the following requirements: 1. Income: All replacement dwelling units shall be affordable to persons and families of low or moderate income. At least 40% of the Replacement dwelling units shall be affordable to persons and families of low income, but the Agency shall use its best efforts to assure that at least 10% of the Replacement dwelling units shall be affordable to very low income households. 2. Size: The replacement dwelling units shall contain at least the same number of bedrooms and other living areas as the dwelling units destroyed or removed by the Project. 4 , ~~K¡::» ¿j '\J~ >- m ¡- r- ·ó <:: m,IGINAl Baker Street Replacement Housing Plan S:\Baker Street Revitalization\Updated Baker 5t Replacement Housing Plan.DOC ._._._.~~_. - ....,~""_. "--"'---"-'-'~'-'--'--'-'-""-"---'---"---'-'---+.., 3. Preference for Displacees: Those persons and families of low or moderate income who were displaced as a result of the Project shall be provided with preferences in renting or purchasing the Replacement dwelling units. 4. Timing: Replacement dwelling units: replacement dwelling units shall be completed by December, 2007. Additionally, the Agency has completed and set several goals for developing other new housing projects totaling more than the required number of replacement dwelling units. This larger number will ensure that sufficient units are produced in appropriate locations even if some of the projects listed are deleted, modified in scope or are not completed on schedule. The Park Place senior housing complex consists of 80 units (64 one bedroom, 15 two bedroom and one unit for an on-site manager). It is located on "R" Street, north of 24th Street. This complex has been completed and is open for rental. The California Avenue Senior Housing Project consists of 180 units (147 one bedroom, 33 two-bedroom and one unit for an on-site manager). It is located south of Califomia Avenue, between "M" and "0" streets. This complex has been completed and is open for rental. The Parkview Cottages Project is currently under construction consisting of 74 detached single family units, between 1,280 -1,820 sq. ft. It is located north of 21 st Street, east of "R" Street and west of the Kern Island Canal. The project is affordable housing with 35 of the units priced to be affordable at 80% median income. Thirty nine (39) of the units are considered to be affordable at 120% median income. Anticipated completion date is November, 2006. The South Mill Creek Project located along California Avenue, south of 13th street, between Q Street and on the east side of the canal from the rail tracks to Union Avenue is currently being proposed and planned by the Lennar Corporation. This fifty plus acre site includes 65,000 sq. ft. of commercial space to include retail, restaurants, community events and neighborhood service space and recreational areas and a residential component that will include 100 units of affordable rental housing and 600 units of various types of affordable and market rate urban style for-sale housing. The revised Old Town Kern Development Project includes three different housing components. Fourteen (14) loft, rental units will be constructed above two new Baker Street retail buildings. Eighteen (18) three bedroom/family-room, for sale town homes will be constructed south of Lake Street, west of King Street. The Senior Housing component of the project will consist of 60, one and two bedroom units, with an on-site manager. The senior housing is to be located east of Kern Street, south Lake Street and north of the alley. 5 'QÄI(-ô, c:J. '>~, >- "' I- m - r- Ù D ORiGINAL Baker Street Replacement Housing Plan S:\Baker Street Revitalization\Updated Baker St Replacement Housing Plan.DOC -.. .._---- - - --- ------~---"'-_._-_......--.__.__._-------_._. The City borrowed the funds tD provide low interest construction loans to selected single family home builders. The builders construct infill housing on vacant lots located throughout the Southeast Redevelopment Project Area for new affordable single family housing. The two, three, and four bedroom homes will have 2 car garages and entry level amenities. Affordable to 80% median income households, prices are estimated to be in the $170,000 - $190,000 range based on home size. Down payment assistance is provided by the city. While the number of bedrooms constructed in these five housing projects exceeds the number of bedrooms displaced by the Old Town Kem Mixed-Use Project, the Agency shall continue to cooperate with housing developers to ensure the City's low and moderate-income housing needs are met. The Agency shall encourage the development of in-fill housing to be located on vacant residential lots and the rehabilitation of existing, but substandard, housing located in the Old Town Kern-Pioneer Redevelopment Project Area. 4. Method of FinancinQ The Agency is authorized to finance projects developed under the Redevelopment Plan with the assistance of the United States government as a part of the Community Development Program through the U.S. Department of Housing and Urban Development (HUD) and with financial assistance from the State of California, the City of Bakersfield, or other available sources. Funding of housing development may include but is not limited to Community Development Block Grant (CDBG) funds, other federal grant and loan funds such as Brownfield Economic Development Initiative and Section 108, HOME Investment Partnership, tax increment and proceeds of tax allocation bond sales, FHA insured loans, Section 202/Section 8 elderly housing assistance, Section 17 housing grants, HUD Rental Rehabilitation Program and private financing. The Park Place senior apartments and the California Avenue senior apartments were financed by a combination Df Agency assistance, a City of Bakersfield loan of HOME funds and tax credits. The Parkview Cottages are being financed with a CalHFA loan, Agency assistance and private financing. 5. FindinQ that the Replacement Housina Plan does not Reauire Approval under Article XXXIV of the California Constitution It is hereby found and determined that the Replacement dwelling units under this Plan do not require the approval of the voters pursuant to Article XXXIV of the California Constitution. By its terms, Article XXXIV is not applicable if the Agency acts as a conventional lender on a low-income housing project. 6 'Ô M <"I> '< 'ú' () >c. )- - m I- r- Õ 0 ORIGINAL Baker Street Replacement Housing Plan S:\Baker Street Revitalization\Updated Baker St Replacement Housing Plan. DOC .-- ....-.-.-- - -' -~...-,.,--~_.~--,.~--~-~._._-_.._-,.._,----,-. 6. Timeframe for Development of the Replacement Housina The Agency anticipates the following approximate construction and completion dates for the proposed Replacement dwelling units: Park Place Senior HDusing California Avenue Senior Housing Project Parkview Cottages Old Town Kern Project Completed December, 2000 Completed December, 2004 Anticipated completion, 2006 Anticipated completion, 2007 Thus, the Agency has, of December, 2004, rehabilitated, developed, constructed or cause to be rehabilitated, developed or constructed for rental or sale to persons and families of low or moderate income, a number of units at least equal to the number of low and moderate income units to be removed or destroyed. Additional replacement units will be completed in 2006 and 2007. The replacement dwelling units shall meet all of the requirements of the Old Town Kern-Pioneer Redevelopment Plan, including those related to unit size, location, level of affordability, number and completion dates. 7. Reportina Annually, the Agency shall publish a report on the progress of implementing the Replacement Housing Plan. The report shall include any additions, deletions or modifications to the list of replacement housing projects as well as any changes in the timeframe for development or rehabilitation. 7 ;¿,1>.Kf' ~ ^':r -<' >- - 1- m - ,... o () ORiGINAL Baker Street Replacement Housing Plan S:\Baker Street Revitalization\Updated Baker St Replacement Housing Plan.DOC