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Home My WebLink AboutRS02-Redevelopment Agency , . . . . . ECONOMIC DEVELOPMENT AGENCY OF TIlE CITY OF SAN BERNARDINO REOUR<;T FOR COMMISSION/COUNCn. ACTION FROM: BARBARA J. LINDSETH Acting Director i SUBmCT: YEOMAN AND ASSOCI TES OFFSITE GRANT DATE: February 17, 1995 Svn09sis of Previous Commis.cri.on/CouncillCommittee Action{s): On September 6, 1994, the Conununity Development Commission approved a $250,000 Grant to cOver offsite improvements for this project. On February 14, 1995, the Housing Committee forwarded the Yeoman and Associates Offsite Grant request to the Community Development Conunission pending additional information such as specific fees per unit and a letter from an acceptable institutional lender and source of BOA funding. Recommended Motion(s): (Community Development Commis.cmon) (Councilwoman Pone-LudlaM's Recommendation) MOTION: That the Community Development Commission authorize the Acting Director to prepare and execute an Amendment to the existing Owner Participation Agreement (OPA) with Yeoman & Associates for an amount not to exceed $400,000 in additional assistance to complete, offsite improvements, contingent upon developer acquiring a letter of commitment for construction fmancing in the amount of $1,500,000 from an acceptable institutional lender. lS~or /' . /. j) / \. '" //1 , (", {,-; {L-I.. Ct. }-. ~,. f r),,~ ....r / /) BARBARA J. LINDSETH Acting Director Contact Person(s): Barbara J. Lindor;eth/Robert Lemlev Phone: 5081 Project Area(s): I.V.DA. Ward(s): Oneill Supporting Data Attached: StaffR'W'rt FUNDING REQUIREMENTS: Amount: $ 400.000 Source: 20% Tax Set-aside Fund c..;;;;;;;;;.ic;;;;;;;-,,;,;--~~~""'-______mmm________mmmm______m+ ---- I I -------------------------------------------------------------------------------------------------------+---------- , BJI.:yeoman.cdc(dle) COMMISSION MEETING! AGENDA MEETING DATE: :02/20/1995 , Agenda Item Number: : 1R.:5'"':tA. r - . . . II II' . . ECONOMIC DEVELOPMENT AGENCY STAFF REPORT YEOMAN AND ASSOCIATES On September 6, 1994, the Community Development Commission approved an unsolicited proposal from Yeoman and Associates provided financial assistance in the form of a grant in the amount of $250,000 for the purpose of facilitating all "offsite" improvements for the development of thirty-six (36) high quality homes. This financial assistance will provide sewer services by extending a sewer collection main that will benefit not only the proposed sub-division but an additional eighty-six (86) existing residential housing units. The proposed development is located within Ward I, one block west of Mountain View Avenue on Coulston Street. The sub-division consists of thirty-six (36) homes which include the following models: * Eight (8) three bedrooms/two bathrooms, 11,206 square foot homes, priced at $112,990 * Fourteen (14) three bedrooms/two bathrooms, 1,460 square foot homes, priced at $124,990 * Fourteen (14) four bedrooms/two bathrooms, 1,669 square foot homes, priced at $129,990 The proposed sub-division will establish a new standard in the area with a variety of quality amenities as follows: * Tile Roofs * Vaulted Ceilings * Ceramic Tile Counter Tops * Oak Cabinets * Skylights * Side and Rear Yard Fencing * Front yard landscaping with automatic irrigation. Development of this property will also substantially improve the physical appearance of the adjacent area with the construction of much needed infrastructure in the form of full-width streets, curbs, gutters, and the aforementioned sewer system. The Developer has conducted an informal traffic study to address ingress and egress traffic patterns as a result of this development and has determined that one-hundred eighty-two (182) additional households within the existing neighborhood will benefit directly from the added offsite improvements. The Developer's calculations show that the total financial assistance of $650,000 will ultimately affect three hundred and forty (340) additional households in the immediate neighborhood at an average of $1,911 per household for a total of $509,000 directly benefiting this community as a result of the offsite improvements. BJL:bl:0370k COMMISSION MEETING AGENDA MEETING DATE: 02/20/95 ..-j ,----, '/ / Agenda Item Number: t'? - G._ . . . II II . . Yeoman and Associates Staff Report Page - 2 - Since the approval of the initial $250,000 grant for the Yeoman project, several dynamic changes have transpired within the banking industry that negatively impact this development. In September of 1994 the banking community was still routinely making acquisition and development loans for new sub-divisions. However, as a result of recent regulatory changes in banking policies local lenders contacted regarding construction financing for the project are no longer willing to extend financing to cover "offsite" construction costs. Lenders solicited on this development are interested in loaning money for the "onsites" (ie: the construction of the houses), but are not interested in advancing any funds to cover the "offsites" (ie: grading, utilities, sidewalks, curbs and gutters street and streetlighting). This attitude seems to now be the standard in the banking community. The "offsite" improvements associated with this sub-division essential to the surrounding community are as follows: *ENGINEERING *GRADING *SEWER *WATER *UTILITIES *STREETS *MISC. IMPROVE TOTAL OFFSITE COSTS $55,350 $81,840 $32,021 $65,123 $88,700 $83,422 $28.007 $434,463 The original OPA agreement utilizes $250,000 in Agency assistance for the construction of a sewer collection main. The additional $400.000 being requested will increase Agency assistance to $650,000. For this consideration the Developer has agreed to utilize $270,000 of the proceeds from the sales of the homes in the following manner: *FIRST TIME HOME BUYER ASSISTANCE $270,000 In addition, the City of San Bernardino will receive over $500,000 in developer fees, and an additional $320,780 in sewer capacity fees tied to 86 additional homes in the area. These funds constitute a total of ($820,780) in possible revenues to various city agencies. Changes in lending policies of institutional lenders after the OPA agreement was executed created a shortfall in the construction financing. Neither the Developer nor the Agency could anticipate the problem and thus no pro~isions for this additional expenditure in FY 94/95 Budget were considered. BJL:bl:0370k COMMISSION MEETING AGENDA MEETING DATE: 02/20195 Agenda Item Number: f'<} ~ /.,. , . . . . II n' . . Yeoman and Associates Staff Report Page - 3 - However, additional assistance will be "Floated" with FY 94/95 funds, although the assistance will be funded through the FY 95/96 budget. RECOMMENDATION Based upon the significant benefit to the surrounding community, Councilwoman Pope-Ludlam recommends adoption of the form motion. ') /- '. I) / (' /.' / '-j-I,' (Li.. li'cl.-\.C" ~ ,-...../ II)(/..JA. 7 BARBARA J. LINDSETH, Acting Director BJL:bl:0370k COMMISSION MEETING AGENDA MEETING DATE 02/20/95 .. ___~_ ........__ 'a1'~_,"__~ v:; - I .