Feb 11, 2020 City Council Meeting 3pm

WOULD YOU STAND WITH ME FOR THE PLEDGE OF ALLEGIANCE AND THEN REMAIN STANDING FOR A BRIEF MOMENT OF SILENCE? I PLEDGE ALLEGIANCE TO THE FLAG.

THE CITY CLERK POSTED ORDERS OF A GERMAN OF THE JANUARY 28TH, 2020 MEETING AND THE AGENDA OF FEBRUARY 11TH, 2020 MEETING IN ACCORDANCE WITH STATE LAW COUNCIL AND HOUSING AUTHORITY POLICY.

[ POSTINGS: The City Clerk posted Orders of Adjournment of the January 28, 2020, Meeting and the Agenda of the February 11, 2020, Meetings in accordance to State Law and Council/Authority/Successor Agency to the Redevelopment Agency Policy.]

[ PRESENTATIONS: Presentation: Teen Coalition Mid-Year Report]

HAVE ONE PRESENTATION ON TODAY'S AGENDA AND I'D LIKE TO INVITE OUR RECREATION SUPERVISOR MALLALA BLUETOOTH TO TELL US ABOUT THIS.

HI EVERYBODY.

WELCOME.

UH, GOOD AFTERNOON MAYOR AND COUNCIL MEMBERS.

UM, MY NAME IS MARLA LUCHO.

I'M THE RECREATION SERVICE SUPERVISOR AT BURNETT AND THE STAFF LIAISON FOR THE TEEN COALITION.

UH, THIS YEAR WE UM, SELECTED NINE ALCOHOL YOUTH TO SERVE ON THE TEEN COALITION.

MMM.

I WOULD LIKE TO INTRODUCE YOU TO OUR CHAIR ALVA MILWAUKEE AND OUR VICE CHAIR, DYLAN GARCIA, TO TELL YOU A LITTLE BIT ABOUT WHAT THE TEEN COALITION DOES.

GREAT.

THANK YOU MALA.

THE WAY WE LIKE TO THINK OF IT, TIM, COLLUSION IS AN OPPORTUNITY.

THE PARKS OF RECREATION GIVES TEENAGERS LIVING WITHIN THE CITY OF THE ALCOHOL LIMITS OR ATTEND THE SCHOOL WITHIN THE GROSSMONT UNION HIGH SCHOOL DISTRICT OR CITY LIMITS A CHANCE TO GET OUT AND GET ACTIVE AND PARTICIPATE IN CITY EVENTS IN THEIR COMMUNITY THAT TAKE PLACE THROUGHOUT THE YEAR BEING OVERSAW BY OUR ADVISER, MALO.

WE ARE ABLE TO PARTICIPATE IN NOT ONLY PLANNING OUT SOME OF THESE CITY EVENTS, BUT CREATING SEVERAL OF OUR OWN THAT WE WOULD LIKE TO SEE HAPPEN THAT WOULD GET KIDS INVOLVED AROUND OUR COMMUNITY.

HERE'S DYLAN TO GIVE US A LITTLE BIT MORE ABOUT THAT.

THANK YOU ALVIN.

SO TO BUILD OFF OF WHAT I WAS, EVAN WAS SAYING, SOME OF THE EVENTS THAT WE TAKE PLACE IN THROUGHOUT THE YEAR INCLUDE THE CITIES, AMERICA AND MAIN STREET, AS WELL AS PARK AND RECREATIONS, DANCE RECITAL AND HOMME FESTS.

WE ALSO HAVE THE PRIVILEGE OF ANNUALLY AWARDING TWO NOMINEES FOR YOUTH OF THE YEAR FROM BOTH MIDDLE SCHOOL AND HIGH SCHOOL LEVELS.

AT THIS TIME WE'D LIKE TO INTRODUCE THE REST OF OUR TEAM FOR TEEN COALITION.

YES.

HELLO, MY NAME IS BIANCA MARGO AND I'M ACTUALLY THE SECRETARY.

I'M CURRENTLY THE SECRETARY OF TEEN COALITION.

I'M A JUNIOR OF A HOLLOW HIGH SCHOOL AND I JOINED TEEN COALITION ABOUT TWO TO THREE YEARS AGO AFTER DISCOVERING THIS TEAM THROUGH ONE OF MY CLASSMATES ELVIN.

AND THEN EVER SINCE THEN I'VE, I'VE BEEN, I'VE REALLY ENJOYED PARTAKING IN THE ACTION THAT UM, JUST REALLY MAKES THIS CITY AS AMAZING AS IT IS.

THEY ASSIST WITH THOSE THIS YEAR.

CORRECT.

ALRIGHT.

HI, I'M TALIA ELSA AND I'M A JUNIOR AT GROSSMONT HIGH SCHOOL AND I JOINED IN COLLISION THIS YEAR BECAUSE I JUST WANTED TO GIVE BACK TO THIS CITY CAUSE I REALLY LOVE THIS CITY AND I LIVE, YEAH.

HELLO, MY NAME IS BLAKE BLUE.

I'M A SENIOR AT GRANITE HILLS HIGH SCHOOL AND I JOINED TEEN COALITION BECAUSE I THOUGHT IT'D BE A GREAT WAY TO GET MORE INVOLVED IN THE CITY.

AND IT'S BEEN THREE YEARS NOW OF BEING IN IT AND I THINK IT'S BEEN A GREAT WAY TO HAVE A BIGGER VOICE, I FEEL LIKE FOR US TEENS.

SO, YEAH.

RIGHT.

UH, MY NAME IS ERICA SPINOZA.

UH, I HAVE JUST RECENTLY JOINED LIKE ABOUT A WEEK AGO.

UM, I AM A SOPHOMORE AT OKON VALLEY HIGH SCHOOL.

I JOINED BECAUSE I WANTED TO GET MORE INVOLVED WITH MY COMMUNITY AND SHOW THAT I'M A CREATIVE PERSON IN GENERAL, NOT JUST SOME KID WHO JUST GOES TO SCHOOL BECAUSE HE HAS TO.

SO THAT'S GREAT.

OH, DID YOU, UM, TELL JUST TELL US A LITTLE BIT MORE ABOUT WHAT, UH, WHAT THE COALITION DOES, WHAT THE AVERAGE, UH, MEETING IS LIKE AND WHAT, UM, SO, SO BASICALLY WE MEET ONCE A MONTH.

UM, WE, WE HAVE, UH, LIKE RIGHT NOW WE'RE WORKING ON OUR YOUTH OF THE YEAR RIGHT NOW.

SO BASICALLY YOU STARTING IN FEBRUARY 1ST THROUGH MARCH 19TH, WE'RE ACCEPTING NOMINATIONS FROM, UH, THE LOCAL SCHOOLS AND ADVISORS ON A YOUTH RIGHT NOW.

SO WE'LL TAKE ALL THOSE NOMINATION FORMS. WE'LL HAVE INTERVIEWS WITH, UM, THE NOMINATORS AND THEN THE TEEN COALITION AND WE'LL DECIDE ON THE MIDDLE SCHOOL AND HIGH SCHOOL WINTER.

WE'LL DO THE PRESENTATION ON THAT.

UM, ALSO WITH THAT, THEY'RE ALSO, LIKE I SAID, SERVING IN ANY PARK AND RECREATION, UM, SPECIAL EVENTS THAT THEY DO.

[00:05:01]

THEY'RE GOING TO BE IMPLEMENTING ON, UM, WORKING ON SOME OF THE BEHIND THE SCENES STUFF.

SO SOME OF THE PLANNING FOR AMERICAN MAINSTREAM AND STUFF LIKE THAT AND LOGISTICAL THINGS.

UM, AND THEN THEY ALSO HAVE THEIR SERVICE PROJECT THAT THEY'RE GOING TO BE WORKING ON, UH, TO GET DONE, UH, HERE, UH, LATE APRIL, EARLY MAY.

SO, UH, THERE ARE SEVERAL THINGS THAT THEY DO WITHIN THE CITY, UH, WHICH IS A BENEFIT AND IT'S A GREAT OPPORTUNITY FOR THESE YOUNG KIDS TO GET OUT AND GET INVOLVED IN THE CITY.

WONDERFUL.

THANKS SO MUCH FOR COMING EVERYBODY.

I APPRECIATE ALL YOU DO.

TO CONSENT ITEMS. CONSENT ITEMS ARE ROUTINE MATTERS AND ACTED BY ONE MOTION ACCORDING TO THE RECOMMENDATION OF THIS BLOW WITH THE CONCURRENCE OF THE CITY COUNCIL.

THAT BRINGS US TO AGENDA CHANGES.

STAFF, DO YOU HAVE ANY AGENDA CHANGES, MR MAYOR? NO CHANGES TO THE AGENDA.

COUNCIL MEMBERS.

ARE THERE ANY, UM, I GUESS THAT BRINGS US

[7. CONSENT ITEMS: Consent Items are routine matters enacted by one motion according to the RECOMMENDATION listed below. With the concurrence of the City Council, a Council Member or person in attendance may request discussion of a Consent Item at this time.]

A COUNCIL MEMBER OR PERSON IN ATTENDANCE MAY REQUEST DISCUSSION ON A CONSENT ITEM AT THIS TIME.

COUNCIL MEMBERS, DO YOU WANT TO PULL ANY CONSENT ITEMS STAFF? NO SIR.

UH, DO WE HAVE ANY SPEAKER CARDS FOR MOVE AROUND ALONG? I'D LIKE TO MAKE A MOTION THEN TO APPROVE THE CONSENT ITEMS. LOOKING SECOND PLEASE.

VOTE MOTION CARRIES BY UNANIMOUS VOTE.

[ PUBLIC COMMENT: At this time, any person may address a matter within the jurisdiction of the City Council/Housing Authority/Successor Agency to the El Cajon Redevelopment Agency that is not on the Agenda. Comments relating to items on today’s docket are to be taken at the time the item is heard. State law prohibits discussion or action on items not on the Agenda; however, Council, Authority and Agency Members may briefly respond to statements or questions. An item may be placed on a future Agenda.]

THAT BRINGS US TO PUBLIC COMMENT.

AT THIS TIME, ANY PERSON MAY ADDRESS A MATTER WITHIN THE JURISDICTION OF THE CITY COUNCIL HOUSING AUTHORITY SUCCESSOR AGENCY TO THE OKLAHOMA REDEVELOPMENT AGENCY.

THAT IS NOT ON THE AGENDA.

COMMENTS RELATING TO ITEMS ON TODAY'S AGENDA ARE TO BE TAKEN AT THE TIME THAT THE ITEM WAS HEARD.

STATE LAW PROHIBITS DISCUSSION OR ACTION ON ITEMS NOT ON THE AGENDA.

HOWEVER, CITY COUNCIL AND HOUSING AUTHORITY MEMBERS MAY BRIEFLY RESPOND TO THE STATEMENTS OR QUESTIONS AND AN ITEM AND B MAY BE PLACED ON A FUTURE AGENDA.

ANGELA, DO WE HAVE ANY SPEAKER CARDS FOR PUBLIC COMMENT? YES SIR.

WE HAVE ONE CARD AND IT'S MR JIM CITY, GLENNA MAYOR COUNCIL, WELCOME STAFF.

IS THAT HEAR ME OKAY.

OKAY, GOOD.

UH, NO.

WHAT YOU'RE GOING TO ASK? OH, WELL, WELL GOOD.

BUT I'D HAVE SOMETHING FIRST I WANT TO SPEAK ABOUT.

I HAD A VERY NICE EXPERIENCE, UH, WITH THE, UH, I GUESS THE IT DEPARTMENT RECENTLY.

I WENT TO SIGN ONTO A VIDEO CONFERENCING FROM THE LAST MEETING, WHICH I DIDN'T ATTEND AND I COULDN'T GET ON.

SO I WENT DIRECTLY EMAILED IT DEPARTMENT AND THEY HAD A VERY NICE LADY.

I HAVEN'T MET HER.

HER NAME WAS SARA DIAZ, EMAILED ME BACK RIGHT AWAY.

UH, SAID THAT SHE WOULD CHECK INTO THE PROBLEM, GET BACK TO ME AND I FIGURED I'M GOING TO HAVE TO WAIT A DAY OR TWO.

WELL, NO, LESS THAN 10 MINUTES LATER SHE CAME BACK AND CONTACTED THE VENDOR AND THE PROBLEM WAS CORRECTED AND I WAS ABLE TO SIGN ON QUICKLY.

SO SARAH, IF YOU LISTENING, THANK YOU VERY MUCH.

SARA DIAZ WAS HER NAME.

AND NOW TO MY FAVORITE SUBJECT AS YOU KNOW, UH, AND FOR JUST FOR THE PEOPLE HERE, I'M ALWAYS GOING TO BE SPEAKING ABOUT FORBES.

UH, 704 60.

THESE ARE FOR ANYONE RUNNING FOR PUBLIC OFFICE HAS TO FILE THESE FORMS AND ONE DEALS WITH ASSETS AND THE OTHER DEALS WITH CONTRIBUTIONS.

UH, SOMEONE JUST ASKED ME RECENTLY WHY I'M SO ADAMANT ABOUT THIS HERE AND I TOLD THEM BECAUSE OF PAST EXPERIENCE WHEN I DID IT LAST ELECTION, UH, I WAS FIGHTING FOR MY MOBILE HOME PARK FOR SENIOR CITIZENS ABOUT SOME ISSUES AND COME TO FIND OUT THAT PEOPLE SITTING RIGHT AT THIS DAY IS UP HERE.

A FEW OF THEM WERE ACTUALLY MY PARK OWNER WAS CONTRIBUTING TO THEIR CAMPAIGNS.

SO IT DIDN'T HELP ME OUT VERY, NO.

I KNOW, I JUST DON'T WANT TO NAME THE NAME NAMES BUT, BUT THAT'S WHY I'M SO ADAMANT ABOUT, OKAY.

AND AS I SAID, I WOULD LOVE TO SIT, SEE THE CITY COUNCIL, PUT THIS ON THE AGENDA AND SO WE CAN GET IT ON THE WEBPAGE SO THAT ALL CITIZENS WITH TRUE TRANSPARENCY CAN SEE THIS INFORMATION.

IT HELPED ME IN THAT RESPECT AND I THINK IT'S VERY INFORMATIVE AND IF NOT, THEN THEY CAN CONTACT THE, THE CITY CLERK'S OFFICE AND REQUEST, YOU KNOW, THESE DOCUMENTS.

AND LIKE I SAID, THE BEST TIME TO DO IT IS THAT THE LAST DAY OF DECLARATION WHEN ANYONE RUNNING FOR PUBLIC OFFICE DECLARES BECAUSE THAT'S USUALLY THE MOST INFORMATIVE AND IT'LL HAVE ALL THE INFORMATION YOU NEED.

AND UH, OTHER THAN THAT, I, I REALLY DON'T KNOW TOO MUCH MORE TO SAY BUT UH, THAT'S IT.

I SEE MY THREE MINUTES.

I'M ALREADY

[00:10:01]

OVER 25 SECONDS, BUT THANK YOU FOR LISTENING AGAIN.

APPRAISALS TO PUBLIC HEARINGS.

NO, MY CARD SAYS IT

[10. Approval for Termination of Existing Disposition and Development Agreement and Sale of the Leasehold Interest and new Disposition and Development Agreement (Lexington Avenue Senior Apartments) RECOMMENDATION: That the Authority Board: Affirms the public hearing is still open and accepts public testimony; Closes the public hearing; Adopts the next Resolution, in order, APPROVING the proposed conditional termination of the existing Disposition and Development Agreement, Regulatory Agreement and Ground Lease (collectively the “Existing DDA”) between the El Cajon Housing Authority (“Authority”), as housing successor in interest to the El Cajon Redevelopment Agency (“Agency”) and Lexington Avenue Senior Apartments, LLC, (“Original Developer”); and approving the sale of the leasehold interest and a new Disposition and Development Agreement, Regulatory Agreement, and Ground Lease (collectively the “New DDA”) with ECJ Housing LP, an affiliate of Thomas Safran & Associates Development, Inc. (“Developer/Operator”); Authorizes receipt of sales proceeds, appropriation of funds in the Low and Moderate Income Housing Asset Fund ("LMIHAF"), and the expenditures as outlined in this report; and Authorizes the Executive Director or designee to execute all affiliated documents, in final form as approved by the City Attorney.]

ITEM 10 WAS CONTINUED FROM THE JANUARY 28TH MEETING FOR A TERMINATION OF EXISTING DISPOSITION OF A DEVELOPMENT AGREEMENT AND STAFF.

WE PLEASE TELL US ABOUT THIS.

GOOD AFTERNOON AND THANK YOU MAYOR AND COUNCIL MEMBERS.

THIS PUBLIC HEARING ITEM IS RELATED TO THE PROPOSED SALE OF THE LEASEHOLD INTEREST IN THE LEXINGTON SENIOR APARTMENTS.

THE LEXINGTON SENIOR APARTMENTS IS A 100 UNIT HOUSING PROJECT LOCATED AT TWO 50 EAST LEXINGTON.

THE PROJECT CONSISTS OF 88 ONE BEDROOM UNITS AND 12 TWO BEDROOM UNITS RESERVED FOR VERY LOW INCOME SENIORS.

THE PROJECT WAS ORIGINALLY DEVELOPED AND FINANCED ENTIRELY BY THE ALCOHOL REDEVELOPMENT AGENCY.

THE PROJECT WAS COMPLETED IN 1995 AND HAS BEEN IN CONTINUOUS OPERATION SINCE THAT TIME.

IN 2012 THE ASSET WAS TRANSFERRED TO THE OKLAHOMA HOUSING AUTHORITY FOLLOWING DISSOLUTION OF THE REDEVELOPMENT AGENCY.

THE ORIGINAL DEVELOPER IS THE LEXINGTON AVENUE SENIOR APARTMENTS LLC UNDER THE MANAGEMENT OLD RICH CAST.

THE ORIGINAL DEVELOPER RECENTLY ENTERED INTO DISCUSSIONS WITH THE HOUSING AUTHORITY AND THE PROPOSED DEVELOPER, THOMAS SAFFRON AND ASSOCIATES.

THOMAS ASSOCIATES IS PROPOSING TO ACQUIRE THE LEASEHOLD INTEREST IN THE PROJECT AND TO RENOVATE AND OPERATE THE PROJECT GOING FORWARD.

UH, THOMAS SAFFRON AND ASSOCIATES IS SKILLED AND EXPERIENCED IN DEVELOPING AND REHABILITATING PROPERTIES.

THEY CURRENTLY OWN AND MANAGE 59 PROPERTIES THROUGHOUT SOUTHERN CALIFORNIA WITH OVER 6,000 UNITS, INCLUDING SENIOR PROPERTIES SUCH AS LEXINGTON.

THEY HAVE AN EXCELLENT REPUTATION AND THE AFFORDABLE HOUSING DEVELOPMENT COMMUNITY AND WITH OTHER LOCAL GOVERNMENTS.

IN TERMS OF THE SALE, A TSA PROPOSES TO ACQUIRE THE LEASEHOLD INTEREST FROM THE AUTHORITY AND THEN TO RENOVATE AND OPERATE THE PROJECT FOR THE NEXT 75 YEARS.

THE SALE IS CONDITIONED UPON THE EXECUTION OF A NEW DDA AND GROUND LEES WITH REVISED TERMS AND THE RECEIPT OF TAX CREDITS AND A NEW HUD FIRST MORTGAGE FOR WHICH THEY MUST MAKE APPLICATION AND THEN THEN TERMINATION OF THE EXISTING DDA WITH THE CURRENT OPERATOR.

THE AUTHORITY MUST PROVIDE WRITTEN APPROVAL FOR THE TRANSFER AND RESOLUTIONS OF COMMITMENT THAT ARE NECESSARY TO ATTACH TO THEIR FUNDING APPLICATION FOR THOSE FUNDING SOURCES AND THEN THE TERMINATION OF THE EXISTING DDA.

THE AUTHORITY, THE TERMS PROPOSED BY TSA INCLUDE THE AUTHORITIES COMMITMENT TO PROVIDE 3.9 5 MILLION IN RENTAL SUBSIDIES FOR THE LOWEST INCOME UNITS THERE.

THE FLOW OF FUNDS FROM THE PROPOSED TRANSFER IS AS FOLLOWS.

TSA PROPOSES TO PAY 4.95 6 MILLION REFERRED TO AS A TRANSFER PRICE.

THE PRICE INCLUDES THE ASSUMPTION OF THE EXISTING OUTSTANDING LOAN OF 206,002 50 THEN SUBTRACTING THE 3.9 5 MILLION SET ASIDE AS A COMMITMENT FOR RENTAL SUBSIDIES FOR THE NEXT 15 YEARS, A TERMINATION FEE PAYABLE TO THE ORIGINAL DEVELOPER AND THEN THE BALANCE OF THE FUNDS, ROUGHLY 250,000 TO THE HOUSING AUTHORITY.

THESE FUNDS WOULD BE USED FOR FUTURE HOUSING OPPORTUNITIES, AFFORDABLE HOUSING OPPORTUNITIES.

THE DEVELOPER WILL APPLY FOR THE RESERVATION OF TAX CREDITS AND THE HUD FIRST MORTGAGE AND WE'LL USE THE PROCEEDS GENERATED TO PROVIDE SUBSTANTIAL RENOVATIONS TO THE PROPERTY.

THE PROPERTY IS NOW OVER 25 YEARS OLD AND IN NEED OF MAJOR UPGRADES.

THE RENOVATIONS, THE FUNDS FOR THE RENOVATIONS ARE OVER $9 MILLION, SO THAT SHOULD BE A VERY NICE RENOVATION AND INCLUDE SOME MAJOR BUILDING SYSTEMS AND THE OTHER THINGS YOU SEE THERE.

THE FINAL SCOPE OF WORK WILL INCLUDE ROOF, HVAC, BOILERS, ET CETERA.

THE AMENDMENTS TO THE GROUND LEASE WILL INCLUDE EXTENSION OF THE AFFORDABILITY PERIOD FOR AN ADDITIONAL 60 YEARS UNTIL 2095 THE NEW RENT LIMITS SCHEDULES THAT WILL AFFECT NEW TENANTS ONLY AND THE AUTHORITY WILL BEGIN TO RECEIVE ANNUAL LEASE INCOME FROM THE PROJECT.

THAT WILL INCREASE OVER TIME.

IT'S ESTIMATED APPROXIMATELY 12.7 MILLION IN LEASE REVENUE OVER THE NEXT 55 YEARS.

WE'RE CURRENTLY RECEIVING $1 A YEAR IN LEASE REVENUE.

AMENDMENTS TO THE RENT STRUCTURE INCLUDE 40 UNITS WILL BE RESERVED FOR EXTREMELY LOW INCOME HOUSEHOLDS, 30% OF AMI.

THOSE ARE THE SAME UNITS THAT WILL BE SUBSIDIZED FOR 15 YEARS.

WITH THE HOUSING AUTHORITY SET ASIDE, THE REMAINING 60 UNITS WILL BE RESERVED FOR SENIOR HOUSEHOLDS EARNING NO MORE

[00:15:01]

THAN 60% A HUNDRED PERCENT OF THEM ALL EXISTING TENANTS WILL BE GRANDFATHERED IN WITH THEIR CURRENT RENT SCHEDULES.

THOSE RENTS CURRENTLY INCLUDE ANNUAL ADJUSTMENTS BASED ON THE CPI AS OUTLINED IN THE CURRENT DDA.

THAT WILL NOT CHANGE FOR EXISTING TENANTS.

THE NEW RENT LIMITS WILL APPLY ONLY THE NEW TENANTS COMING IN OR WHEN A HOUSEHOLD ADDS A NEW MEMBER TO TO THE LEASE.

THOSE ANNUAL ADJUSTMENTS WILL BE ALLOWED BASED ON T CAP RULES.

THE EFFECTIVE DATE OF SALE WILL DEPEND ON WHEN THE DEVELOPER IS GRANTED THE 9% TAX CREDITS AND AT THE SAME TIME RECEIVES ITS HEADFIRST MORTGAGE.

ONCE THE TAX CREDITS ARE RESERVED, ESCROW TYPICALLY CLOSES WITHIN 200 DAYS OR SO.

THE CLOSE OF ESCROW WILL BECOME THE EFFECTIVE DATE OF SALE AND THE DEVELOPER HAS COMMITTED TO COMPLETING ALL THE RENOVATIONS WITHIN 18 TO 24 MONTHS OF THE CLOSE OF ESCROW USING LOCAL SUBCONTRACTORS TO THE BEST OF THEIR ABILITY.

MANY BENEFITS WILL RESULT FROM THE APPROVAL OF THIS PROJECT.

THE REVISED RENT STRUCTURE WILL ALLOW FOR POSITIVE CASHFLOW AND SUFFICIENT CAPITAL RESERVES TO BE SET ASIDE FOR FUTURE FACILITY IMPROVEMENTS.

THE TAX CREDIT AND FIRST MORTGAGE FUNDING WILL PROVIDE OVER $9 MILLION IN CAPITAL INVESTMENTS AND ENHANCED IMPROVEMENTS TO THE PROJECT.

THE PROJECT WILL CONTINUE TO GENERATE PROPERTY TAXES BASED ON ASSESSED VALUE OF NOT LESS THAN $5 MILLION.

THE PROPOSED TRANSACTION PRESERVES A SIGNIFICANT HOUSING AUTHORITY ASSET IN THE CITY AND THERE WILL BE NO IMPACT TO THE EXISTING TENANTS.

STAFF RECOMMENDS APPROVING THE SALE OF THE LEASEHOLD INTEREST TO THOMAS SAFFRON AND ASSOCIATES ENTERING INTO THE NEW DDA AND ULTIMATELY APPROVING IT TERMINATION OF THE EXISTING DDA.

I'M HAPPY TO ANSWER ANY QUESTIONS AND I KNOW REPRESENTATIVES OF THOMAS SAFFRON AND ASSOCIATES ARE HERE IN THE AUDIENCE IN CASE YOU HAVE ANY QUESTIONS OF THEM AS WELL.

THANK YOU VERY MUCH.

I'M SURE WHAT HAPPENS TO THE EXISTING TENANTS WHEN THEIR PARTICULAR UNIT IS RENOVATED.

OH, WE'VE PROVIDED IN THE DEVELOPMENT COSTS FOR RELOCATION.

THEY WILL BE RELOCATED FROM THEIR UNIT FOR THREE TO FOUR DAYS.

WE'RE GOING TO ASK THAT THEY BE PLACED AT THE MARRIOTT OR BETTER AND UM, THAT'S ALL INCLUDED IN THE DEVELOPMENT BUDGET.

MARRIOTT'S PRETTY GOOD.

OKAY, GREAT.

I WANT TO MAKE SURE THAT THEY'RE, THEY HAVE ADEQUATE HOUSING AND EVERYTHING.

EXACTLY.

OKAY, THANK YOU.

WHAT'S THE ASSURANCE OR, UM, INSURANCE THAT, THAT THE IMPROVEMENTS WILL BE DONE IN 18 TO 24 MONTHS? OTHER THAN IS STATED PROMISE? THE STATE OF PROMISE WILL BE IN THE EXECUTED DDA.

SO IF THEY WERE SERIOUSLY IN DEFAULT OF THE DDA, WE WOULD LOOK TO OUR LEGAL COUNSEL TO SEE WHAT OUR REMEDIES WOULD BE AT THAT POINT.

ANY OTHER QUESTIONS? BOB? WE SHOULD HAVE A HALF DEMAND ABOUT THE END OF SEPTEMBER, OCTOBER, MAYBE THE END OF JULY.

AND UH, YOU COULD HAVE THEM EITHER IN THE MARRIOTT OR THE HAMPTON MAN.

YOU HAVE TWO CHOICES.

IF IT'S ONLINE, THAT COULD BE AN OPTION.

BUT REMEMBER THE DATE OF SALE COULD BE A WAYS OUT.

SO WE WILL END AT THAT POINT.

WE KNOW THE HAMPTON AND COULD BE ONLINE.

RIGHT? SO YOU HAVE A COUPLE OPTIONS THERE, RIGHT? NOTHING THAT THE UH, UM, DOLLAR STORE MOTEL OR WE AGREE WITH YOU ON.

AND HOW, HOW DO WE KNOW THAT THEY'RE GOING TO KEEP UP THE UNITS TO THE CONDITION THAT THEY'RE GONNA PUT THEM INTO AFTER REHABBING THEM IN THE FUTURE? UM, BECAUSE APPARENTLY THEY HAVEN'T BEEN REHABBED SINCE WE BUILT IT IN 95 AND I WAS ON THE COUNCIL IN, RIGHT.

WE CURRENTLY CONDUCT ANNUAL MONITORINGS WHERE WE CHECK THE CONDITION OF THE UNIT THAT IT HASN'T DETERIORATED AND THE OUTSIDE OF THE PROPERTY THEY HAVE BEEN MAINTAINING IT, BUT THEY HAVEN'T, THEY DON'T HAVE THE CAPITAL RESERVES TO GET AHEAD OF IT.

THE THE BOILERS AND HVAC SYSTEMS DO NEED REPLACEMENT.

THINGS ARE BEGINNING TO FAIL AND THIS IS A TOOL THEY CAN USE, WE CAN USE TO KIND OF GET THESE MAJOR IMPROVEMENTS COMPLETED.

AND I KNOW THE HUD FINANCING WILL ALSO REQUIRE THAT THE IMPROVEMENTS LAST 52 YEARS, SO WE WILL BE ANNUALLY MONITORING TO MAKE SURE OF THAT, THAT IT'S UPKEPT VERY WELL.

HAVE WE BEEN MONITORING ANNUALLY? YES.

IN THE PAST, YES.

HOW COME? WE HAVEN'T HAD THE HVAC AND THE BOILERS AND EVERYTHING REPLACED, SO

[00:20:01]

NOW THEY NEED IT.

WELL, THEY'RE STILL WORKING AND WE'VE, SO IF THEY'RE BROKEN THEN WE HAVE SOMETHING TO SAY.

YOU NEED TO GET THIS FIXED BY A CERTAIN DAY AND THE NEW ONES WILL BE A LOT MORE EFFICIENT.

WELL THANKS VERY MUCH.

LAST REPORT.

PRESERVATION FOR ACQUISITION REHABILITATION.

AGAIN, THIS ITEM WAS CONTINUED FOR THE JANUARY 28TH MEETING.

THE PUBLIC HEARING CONTINUES TO BE OPEN.

ANGELA, DO WE HAVE ANY SPEAKER CARDS FOR THIS ITEM? YES SIR.

WE HAVE ONE CARD FROM ANTHONY.

YA NADA.

GOOD AFTERNOON.

HI THERE.

HI, MY NAME'S ANTHONY .

I'M THE VICE PRESIDENT OF DEVELOPMENT FOR THOMAS SAFFRON ASSOCIATES.

UM, I JUST WANTED TO INTRODUCE MYSELF TODAY FOLLOWING THAT NICE PRESENTATION BY JAMIE EXPLAINING, OUTLINING OUR GOALS FOR PRESERVING AND MAINTAINING THE AFFORDABILITY OF THIS, UH, COMMUNITY AND THEN FINDING FEDERAL INVESTMENT TO IMPROVE UPON IT.

UM, THOMAS SAFFRON ASSOCIATES HAS BEEN IN BUSINESS FOR ABOUT 40 PLUS YEARS.

UM, WE'VE ACCUMULATED AND INVESTED IN A NUMBER OF COMMUNITIES OVER THAT TIME, APPROXIMATELY TWO PER YEAR SINCE THEN.

UH, TO YOUR QUESTION ABOUT HOW WILL, UM, THE UPGRADED CONDITION OF THE PROPERTY, WE MAINTAINED, WE RUN OUR OWN IN HOUSE MANAGEMENT COMPANY.

WE DON'T MANAGE FOR ANYBODY ELSE AND WE RUN THINGS TO THE HIGHEST STANDARDS AND OUR REPUTATION IS BUILT UPON CREATING WIN-WIN OUTCOMES FOR OUR PUBLIC PARTNERS, RESIDENTS, AND THE UNDERLYING COMMUNITY.

SO I JUST WANTED TO STEP UP TODAY AND JUST INTRODUCE MYSELF, LET YOU KNOW THAT I'M HERE.

SHOULD YOU HAVE ANY ISSUES OR QUESTIONS, UH, TODAY IS A, AN IMPORTANT MILESTONE IN THIS PROCESS.

IT'LL ALLOW US TO MOVE FORWARD TO GOING, UH, APPLY FOR FEDERAL TAX CREDITS.

SO, UM, I COMMEND THAT THE STAFF ON HOUSING, ON SEEING THE OPPORTUNITY TO LEVERAGE FEDERAL FINANCIAL INVESTMENT INTO AFFORDABLE HOUSING AND EL CAHONE.

PERSONALLY, I'VE BEEN WORKING ON THAT FOR THE PAST 11 YEARS AND I'VE BECOME QUITE GOOD AT IT AND WE'RE EXCITED TO HAVE PUT TOGETHER A STRUCTURE THAT YOU KNOW, UH, PROVIDES, UH, A GOOD NET FOR THE EXISTING RESIDENTS AS WELL AS SATISFIES THE EXISTING NEEDS AND THEN FIXES THE FINANCIAL FOOTING OF THIS PROPERTY FOR THE NEXT 75 YEARS.

SO I WANTED TO THANK YOU FOR YOUR OPPORTUNITY AND WELCOME ME TO OKLAHOMA TODAY.

AND AGAIN, I LOOK FORWARD TO SPENDING MORE TIME HERE.

THANK YOU GUYS.

SEE IF THERE'S ANY MORE QUESTIONS, ANY MORE QUESTIONS AT THE COUNCIL? AND I DO HAVE, AND I'LL LEAVE THIS WITH THE CLERK, SOME COMPANY PRESENTATIONS.

DID YOU GUYS WANT TO LEARN MORE ABOUT US AND SEE SOME BEFORE AND AFTER PHOTOS OF OTHER PRESERVATION? THAT'S THE WORD THAT'S USED.

AND TO YOUR QUESTION ABOUT RELOCATION, WE'RE REQUIRED UNDER THE HUD PROGRAMS TO FOLLOW A RELOCATION PLAN.

AND CONFORMANCE WITH STATE LAW AND THAT INCLUDES, UM, HAVING A RELOCATION CONSULTANT, IDENTIFY HABITABLE PLACES FOR RESIDENTS TO STAY DURING THEIR SHORT STAYS OFF THE PROPERTY.

SO.

THE RENOVATIONS TIES WITH THE 10 TO 15 YEAR CAPITAL NEEDS IMPROVEMENT SCHEDULE.

YEAH.

I JUST WANT TO COMMEND YOU ON THIS PROJECT CAUSE THERE'S NOTHING MORE NOBLE THAN TINK CARE OF THE HOUSING OF OUR SENIORS.

SO, UH, THEY'RE GOING TO BE A VERY HAPPY LIVING IN THEIR, A NEW ENVIRONMENT AND THAT'S REHABBED.

SO THANK YOU SO MUCH.

THANK YOU VERY MUCH.

UM, I ASSUME THAT THERE ARE SOME SAFEGUARDS TO PROTECT THE RENT STRUCTURE SO THAT PEOPLE WON'T BE PRICED OUT OF THE HOME THEY'VE BEEN LIVING IN.

CAN YOU EXPLAIN THAT? WELL, IF THE EXISTING AGREEMENT TODAY CALLS FOR RESIDENTS TO HAVE THEIR RENTS INCREASED ANNUALLY BY THE CPI AND UM, AS A RESULT, THE PROPERTY ONLY OPERATES AT A BARE BONES, BASICALLY BUDGET NEUTRAL, UH, IMPACT.

AND SO THEREFORE THERE ISN'T DOLLARS LEFT OVER TO MAKE NECESSARY CAPITAL IMPROVEMENTS.

THE STRUCTURE THAT WE'VE COME UP WITH, WHICH IS LEVERAGING PROCEEDS FROM THE HUD LOAN ON SALE IS TO REINVEST THAT IN, UM, THE PROJECT RENTAL SUBSIDY, WHICH THEN PERMITS THE PROPERTY TO HAVE ENOUGH CASH FLOW TO SUPPORT THE DEBT.

AND THAT ALLOWS US TO GO AHEAD AND MAINTAIN THE EXISTING RENTS FOR THE EXISTING TENANTS.

AND AS THE UNITS TURNOVER, THE NEW RESIDENTS WILL COME IN AT A, AT A MORE COMPARABLE RENT TO WHAT CURRENT AFFORDABLE HOUSING RENT STRUCTURE.

LIKE THIS IS A TRANSACTION FROM THE MID NINETIES, EARLY NINETIES.

AND THE RENT STRUCTURES USE THEN ARE DIFFERENT THAN THE RENT STRUCTURES TODAY.

SO WHAT WE FOUND IS THIS NICE MIX OF THE OLD AND THE NEW, WE TOOK THE SORT OF THE 1990S VINTAGE OF AFFORDABLE HOUSING AND WE'RE COMBINING THAT WITH THE RESOURCES AND TOOLS THAT ARE AVAILABLE TO ACHIEVE ALL THE MULTIPLE OUTCOMES, WHICH WE THINK IS, YOU KNOW, AGAIN, WHAT WE'RE AFTER, WHICH IS A WIN, WIN, WIN AND ALL ELEMENTS OF THE PROJECT.

SO WELL THERE'LL BE ENOUGH FUNDS THEN FOR DEFERRED MAINTENANCE.

THE FUTURE.

YES.

THE, THE, THE PROJECT WILL, UM, NUMBER ONE, WE'RE SETTING ASIDE AN INITIAL RESERVE OF $50,000 IN THAT AT LEAST $30,000 A YEAR.

UM, PLUS THE EXTENT OF THE RENOVATIONS UP FRONT, WE'LL EXTEND THE USEFUL LIFE AND, UM, KNOCK ON WOOD, YOU KNOW, PREVENT ANY MAJOR, UH, CAPITAL NEEDS OVER THE FIRST 10 TO 15 YEARS.

SO THE LENDER WILL PERFORM A CAPITAL NEEDS ASSESSMENT, I E HUD WILL UNDERWRITE TO THIS AND ENSURE THAT THE SCOPE OF

[00:25:01]

AND THEN BY THAT TIME, THE FREE CASHFLOW FROM THE PROPERTY WILL BE ENOUGH TO SERVICE ANY ADDITIONAL CAPITAL NEEDS.

SO IT'S REALLY ABOUT PUTTING THIS THING ON A FINANCIAL FOOTING FOR THE NEXT 75 YEARS THAT WE'RE REALLY FOCUSED ON, UM, WHILE MAINTAINING IT TO OUR HIGH STANDARDS, WHICH WHEN YOU REVIEW THIS, YOU'LL, YOU'LL SEE, UM, AS WELL AS IF YOU WANTED TO CHECK REFERENCES, WHICH STAFF HAS DONE, YOU'LL, YOU'LL GET THE SAME FEEDBACK.

HOW MANY OF THESE HAVE YOU DONE? ME PERSONALLY? I'VE WORKED AT YOUR COMPANY.

UM, I'D SAY ON THE RENOVATION SIDE ABOUT 22 OR 23 OVER THE PAST, UH, 12 OR 13 YEARS.

HAVE THERE BEEN PROBLEMS WITH LAWSUITS? DISSATISFIED? NO.

NO, NO.

WE, WE, WE MAKE A POINT TO TAKE VERY GOOD CARE OF OUR RESIDENTS TO MAKE SURE THAT WE COMMUNICATE WITH THEM.

THAT'S WHY WE SELF-MANAGE WHAT WE DO.

WE ENSURE THAT THE COMMUNICATION PROCESS DURING THE RENOVATIONS IS, IS, UH, LAID OUT IN ADVANCE.

UM, AND THAT THERE ARE NOTICES THAT GO OUT AND WE'RE VERY, UH, YOU KNOW, AWARE OF PEOPLE'S NEEDS AND WE UNDERSTAND CERTAIN RESIDENTS MAY HAVE CERTAIN MOBILITY CHALLENGES AND WE TRY TO MAKE ACCOMMODATIONS AS NEEDED FOR THEM.

THAT'S ALL MY QUESTIONS.

ANYTHING, ANY OTHER QUESTIONS FOR THE COUNCIL? THANK YOU, SIR, FOR COMING.

I APPRECIATE IT.

DO WE HAVE ANY MORE SPEAKERS? NO MORE CARDS, SIR.

I'LL MAKE A MOTION THEN.

THE CLOSEST PUBLIC HEARING MOON.

SECOND, PLEASE VOTE.

MOTION CARRIES BY UNANIMOUS VOTE.

THIS SOUNDS LIKE A, A, A GOOD PROJECT.

I THINK IT'S, UH, ONE OF THE FEW WAYS WE WOULD HAVE OF WE HAVING A, AN OLDER PROPERTY LIKE THIS, THAT OTHERWISE WITHOUT THE FEDERAL TAX DOLLARS THAT WE PROBABLY WOULDN'T BE ABLE TO, TO GET ANYBODY TO COME AND DO THAT.

SO UNLESS THERE'S ANY MORE DISCUSSION.

YUP.

I'VE GOT A QUESTION FOR STAFF THERE.

THE SUBSIDY IS 3.9 5 MILLION FOR THE NEXT 15 YEARS TO HELP THOSE THAT ARE CURRENTLY IN PLACE.

IS THAT CORRECT? IT'D BE CURRENT, BUT ALSO ONGOING BECAUSE THEY'LL, EVEN THOUGH THE RATES WILL BE MARKET RATES, THERE'LL BE A MARKET RATE AT THE AFFORDABLE LEVEL PRESCRIBED BY THE FED.

SO THEY'LL STILL NEED TO BE ONGOING, CONTINUED MONEY PUT INTO THAT TO HELP SUBSIDIZE THAT.

IS THERE A CHANCE WE WOULD GO OVER THAT NUMBER OR UNDER THAT NUMBER? I'M LOOKING TO STYLE ME.

PERHAPS JAMIE CAN ADDRESS THAT.

ARE YOU REFERRING TO THE 3.95 NUMBER? NO, IN FACT, AS THE TENANT PORTION INCREASES OVER TIME, EITHER BY THE CPI OR WHEN A NEW TENANT COMES IN, THE UH, THE, YOU KNOW, THEN THE HIGHER RENTS, OUR PORTION WILL GO DOWN.

SO WE MAY ACTUALLY HAVE MONEY LEFT OVER AFTER 15 YEARS.

AT THAT POINT WE CAN DECIDE WHAT TO DO WITH IT.

WELL, WE WERE, WE WOULD RETAIN ANY SAVINGS.

IT'S NOT PASSED ON TO SOMEBODY ELSE.

THAT'S CORRECT.

WE'LL BE SUBSIDIZED FOR 15 YEARS.

THAT'S OUR COMMITMENT.

THAT'S A, THAT'S AN EVEN BETTER WIN FOR THIS PROJECT.

THAT'S GREAT.

SEEMS LIKE A GREAT, GREAT THING FOR THE CITY AND FOR THE RESIDENTS AND EVERYBODY WINS.

GROW UP.

ANYBODY WANNA MAKE A MOTION? MOVE TO ADOPT.

SECOND.

LET'S MOVE IN THE SECONDED.

PLEASE.

VOTE.

MOTION CARRIES BY UNANIMOUS VOTE.

CONGRATULATIONS FOLKS.

I'VE LOOK FORWARD TO SEEING YOUR NEW PLACE AND MAYBE I'LL COME OVER AND VISIT WHEN YOU'RE AT THE MARY OUT.

WE CAN GO SWIMMING, HANG OUT AT THE BAR WE FIND.

YAY.

ENJOY YOURSELF.

IT'S GOING TO BE NICE TO GET EVERYTHING FIXED UP.

11 IS MY ACTIVITY REPORT AND THERE'S THE LEGISLATIVE REPORT ON TODAY'S AGENDA.

THERE ARE NO MINISTRY REPORTS AND NO COMMISSION REPORTS ON TODAY'S AGENDA.

ITEM

[13. ACTIVITIES REPORTS/COMMENTS OF MAYOR WELLS: SANDAG (San Diego Association of Governments) Board of Directors; SANDAG – Audit Committee, San Diego Division; Heartland Fire Training JPA – Alternate; LAFCO.]

AND WE'RE AT

[14. ACTIVITIES REPORTS/COMMENTS OF COUNCILMEMBERS:]

NOW ACTIVITIES REPORTS FOR COUNCIL MEMBERS STARTING WITH COUNCIL MEMBER GARRETT KENDRICK.

I DO HAVE SOMETHING TO ADD.

A, UH, TENDED THE METRO WASTEWATER JPA ON FEBRUARY 6TH.

COUNCIL MEMBER BOB MCCALL.

I WENT TO THE, UM, MMM, CITIZEN OF THE YEAR PROGRAM.

OH YEAH, THAT'S, DID I FORGOT TO MENTION THAT? YEAH.

AND SO DID STEVE.

SO STEVE MINOR AS REPORTING AND DEPUTY MAYOR PHIL ORTIZ.