HomeMy WebLinkAbout11- Community Development D E V E L O P M E N T D E P A R T M E N T
THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: KENNETH J. HENDERSON Subject: ARDEN-GUTHRIE
Executive Director FOCUS NEIGHBORHOOD
REVITALIZATION
STRATEGY
Date: January 27, 1993
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Synopsis of Previous Commission/Council/Committee Action(s):
None
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Recommended Motion(s):
(Community Development Commission)
MOTION A: That the Community Development Commission adopt the attached
Comprehensive Revitalization Strategy for the Arden-Guthrie
Focus Neighborhood.
MOTION B: That the Community Development Commission approve an agreement
with Action Housing Property Management in the amount of
$360,000.
MOTION C: That the Community Development Commission direct staff to
immediately acquire and rehabilitate a four-plex for
conversion to a multi-use facility and appropriate $150,000
for this purpose.
MOTION D: That the Community Development Commission direct Agency staff
to formally solicit funding resources from the Inland Valley
Development Agency (IVDA).
Administrator KENNETH HEND RSON
Executive Director
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Contact Person(s) : Kenneth J. Henderson/David R Edgar Phone: 5081
Project Area(s) : N/A Ward(s): 4 and 7
Supporting Data Attached: Staff Report; Report
FUNDING REQUIREMENTS: Amount: $ 500,000 Source: 20% Set-Aside; CDBG
Budget Authority: Requested
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Commission/Council Notes:
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KJH:DRE:paw:0187c COMMISSION MEETING AGENDA
Meeting Date: 02/01/1993
Agenda Item Number: - / I _
D E V _ L 0 P M E N T D E P A R T M T
OF THE CITY OF SAN BERNARDINO
STAFF REPORT
ARDEN-GUTHRIE FOCUS NEIGHBORHOOD
REVITALIZATION STRATEGY
Agency staff has, for an extended period of time, been actively
preparing a Neighborhood Improvement Strategy for the Arden-Guthrie
Focus Neighborhood. This strategy represents an attempt by the Agency
to comprehensively address the social and physical "needs" of this
community and to effecuate permanent improvement in the "quality of
life" within the area.
The Revitalization Strategy involves systematic neighborhood
improvement which would occur over the next one-to-three year period
(1993-95). Total cost of the strategy is currently estimated to be
approximately $7 to $10 million, the costs of which would be phased in
over the entire three (3) year timeframe.
It is important to note that the strategy is comprehensive and holistic
in its approach. It is not a strategy that can be broken up and
implemented on a segmented basis. If the Arden-Guthrie Focus
Neighborhood Revitalization Strategy is adopted, Agency staff would
immediately pursue project funding through the Inland Valley
Development Agency (IVDA). Based on existing IVDA policy, staff would
take the approved strategy before the IVDA Board of Directors for its
approval and funding of the strategy or its various components in whole
or in part.
Staff recommends adoption of the form motion.
")6!
KENNETH J. HENDE SON, Executive Director
Development Department
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KJH:DRE:paw:0187c COMMISSION MEETING AGENDA
Meeting Date: 02/01/1993
Agenda Item Number: ! I
I
GNN BFR,Yq'�o City of San Bernard. Economic Development Agency
DEVELOPMENT DEPARTMENT Kenneth J. Henderson
Executive Director
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'IA�FYT DF�a��
REVITALIZATION STRATEGY
ARDEN-GUTHRIE FOCUS NEIGHBORHOOD
FEBRUARY, 1993
PREPARED BY: DEVELOPMENT DEPARTMENT
HOUSING DIVISION
201 North E Street, Third Floor•San Bernardino, California 92401-1507•(909)384-5081 •(800)232-1267•FAX(909)888-9413
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REVITALIZATION STRATEGY
The Development Department Housing Division has been actively preparing a
Comprehensive Revitalization Strategy for the Arden-Guthrie Focus Neighborhood. Once
adopted, this strategy would provide the framework through which both immediate and
permanent neighborhood improvement and revitalization would occur. It is extremely
important to understand that this strategy specifically addresses required "neighborhood"
and "property improvement" activity within this area. Furthermore, the strategy attempts to
pro-actively address significant and complex social issues which have also been identified.
Development of this strategy has emerged from, and is consist with the Neighborhood
Improvement Plan developed through the Building Industry Association (BIA) HomeAid
Program. The Agency's intent and desire is to create a viable living environment and an
improved quality of life. This direction has been consistent and ongoing since development
of the BIA improvement plan in July, 1989.
The Arden-Guthrie Revitalization Strategy is solely based upon identified neighborhood
"needs" and 'concerns". Programs, activities and projects identified with the strategy are
merely frameworks for addressing the assorted and diverse "needs" found within this
Community.
ta The major components of the Arden-Guthrie Focus Neighborhood Revitalization Strategy
include, but are not limited to the following:
1) Development of 1-"Neighborhood Park:
A large (6 acres) vacant parcel of land is currently available within this focus
neighborhood, for acquisition and development as a neighborhood park. Once
developed, neighborhood park facilities will include a "tot lot" area for children,
a football/soccer field and assorted picnic areas.
In addition, development of park site land will also include a Community Center.
this center could have multiple uses, including:
- Neighborhood/Community Police Site
- Day Care Facility Site
- Community Branch Library Site
- Emmerton School Program Site
- Youth Activity Center
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The Agency has already received extremely positive interest and support for the
development and utilization of this facility from various Social Services providers within the
Community.
* Approximate Budget:
- Acquisition ( $650,000 )
- Park Improvements ( $425,000 )
- Community Center Facility ( $2.75 million )
TOTAL $3.825 million
2) "Multi-Use" Facility Development - The Agency would acquire and available a
four-plex for conversion and rehabilitation into a Multi-Use neighborhood facility.
Once completed, the facility would be utilized for the following purposes:
a) "Project Manager's 'Office - This facility enables the designated
"Project Manager' to have neighborhood based operations on a
twenty-four (24) basis. This office facility is also critically important
to the Project Managers in establishing open communication between
themselves, the property owners and the tenants within this Community.
b) Health Car Office - County of San Bernardino Department of Public Health
provides extensive Health Care Services to Arden-Guthrie neighborhood
residents. Providing these services at this facility represents an important
component in addressing identified Social Service needs within this
neighborhood.
c) The County Library Department has expressed an interest in locating a
branch facility in the area, first as a part of the acquired four-plex and then
as a permanent fixture in the proposed Community Center.
d) Community M e in Room - Meeting Room space would also be available
for local community based organizations and groups (ie., Neighborhood
Watch, Boy Scouts and Girl Scouts, etc.)
* Approximate Budget:
- Acquisition ( $ 75,000 )
- Rehabilitation ( $ 40,000 )
TOTAL $115,000
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3) Cul-de-Sac Newcomb, M kc inlet and DumBarton Streets:
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The City would eliminate vehicular to through traffic by cul-de-sacing these
neighborhood streets. This action would create a pronounced sense of
"Community" and a safer and quieter environment for residents living within these
areas.
In conjunction with the cul-de-sacing activity, additional greenbelt and/or "mini-park"
areas will also be created (Please see attachment). Creating these greenbelts
will provide much needed "open-space" areas along these streets, while also
offering additional play areas for youth within the neighborhood
* Approximate Budget: $450,000
4) Assist a non-profit organization with the rehabilitation of twenty-four (24)
buildings within this neighborhood:
Southern California Housing Development Corporation has received tentative
approval from the Resolution Trust Corporation (RTC) to acquire twenty-four (24)
buildings (ninety-six (96) units), previously owned by HomeFed Bank.
Agency assistance would be utilized to rehabilitate/improve these buildings.
Furthermore, the Agency would also be involved with preparation of work
write-ups, cost estimates and property inspections.
In return for these considerations, the Agency would also have covenants (CC&Rs)
recorded on each of the properties. These covenants will ensure long term affordability
tenant screening, occupancy standards, and property maintenance standards are strictly
adhered to within this neighborhood.
* Approximate Budget:
- Per Building Cost ( $ 30,000 )
TOTAL BUDGET $720,000
5) Assist other property owners interested in rehabilitating/ongoing these
properties.
The Agency has been actively receiving requests for property rehabilitation program
assistance from both existing property owners and from investors interested in purchasing
units within this Focus Neighborhood. To date, requests involve over twenty (20) four-
plexes have been received.
If Property Improvement Program assistance is provided to these interested parties, the
Agency would also require recordation of CC & Rs on each of the buildings.
* Approximate Budget:
- Per Building Cost ( $40,000 )
TOTAL BUDGET $800,000
6) Los Padrinos Communily Los ali i n:
The Los Padrinos Community Coalition is now prepared to provide extensive and
ongoing graffiti removal and neighborhood clean-up activity within this area.
These services will be delivered on both a re-active (Immediate Need) and
pro-active basis as part of intensive efforts to improve the overall "image' and
appearance of this neighborhood.
7) Establish "Proiect Managers' for this Focus Neighborhood.
The single most critical component of this strategy is the designation of "Project
Managers" for this focus neighborhood.
Project Managers would be responsible for coordinating/administering
implementation plans in conjunction with each of the specific areas identified within
this strategy. Furthermore, these individuals would become vital communication
links between the Agency and the Arden-Guthrie 'Community".
Because of their extensive experience in providing these and related "Project
Management" services in other neighborhoods, some of which were significantly
worse than the Arden-Guthrie Focus Neighborhood, the Agency is suggesting
utilizing the services of Mr. Ruben Herdon and Mr. Ben Kim as "Project Managers".
Attached to this strategy is a proposal from Action Housing Property Management
which details more fully the Agency's proposal for Project Management Services.
* Approximate Budget:
- Per Month ( $ 30,000 )
TOTAL BUDGET $360,000 (per year)
I
8 Provision ion of Additional P li
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I'I In order to achieve long term neighborhood revitalization, a significant increase in
the level of Police activity will be required within this area. This increased activity
level will be manifested primarily in terms of additional Police 'Presence', but also in
terms of Police Department Program Delivery.
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9 Pro-Active
Code Enforcement.
It is anticipated there will be a uniform, consistent and vigorous code enforcement
program to ensure that those owners not participating in the program will
maintain their properties in an appropriate manner and take all necessary steps to ensure
appropriate tenant screening.
The Arden-Guthrie Revitalization Strategy identifies important components necessary in the
City's effort to improve the Arden-Guthrie Focus Neighborhood. Once completed and
adopted, however, the City's ongoing commitment to implementation and management of
the strategy will directly determine how successful improvement efforts are within this
Focus Neighborhood.
DRE:paw:dprt056
Attachments
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PROPOSAL TO CONTRACT
MANAGEMENT OF SPECIAL DISTRICTS RENTAL PROGRAM
ARDEN-GUTHRIE
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This proposal is in direct response to the request made on, October 23,
1992, by Darr ,HauxingDirectw the Redevelopment Agency of City
of San Bernardino. This proposal is designed as a demonstration project to
address major housing development problems that have reached near
irretrievable posture due to blight and crime. The result of absentee
landlordism of multi-family rentals located in the northeast section of the city
limits hereinafter referred to as {Arden Guthrie Properties
This demonstration program will consist of two phases of operation
designed to restore health to the Arden Guthrie rental area
Pbw I will provide for a plan to consolidate management of rentals
located within specified project area
Ebawl will provide for acquisition and rehabilitation of abandoned and
severely neglected rentals within specified project area
Anon GUM Plopowi Rev NDNlnbrr9,1902 POP 2
Draft
The purpose of this document is to outline a comprehensive plan and
proforma that leads to the development of a hill service consolidated
management and acquisition program for the Arden and Guthrie Street
Apartments.
This rental housing area is in great need of community restoration
and is stifled by multiple ownership of 184 four-plexes and no continuity in
neighborhood management
What we intend to show in this plan is not only the feasibility for a
unique consolidated management program. but also the sociological benefits
that go hand in hand with sound and balanced economic efforts. The Arden
and Guthrie project area is currently searching for the right program to
reverse its delinquency trends. The values of properties in this area are
shrinking daily.
The aforementioned factors point to the need for a consolidated
management entity before acquisition and rehabilitation are feasible.
Intervention of such management entity must have pr vvm expwYamed
capabilities to deal effectively with problems of property depreciation and
economic dilemmas? That have in recent years gripped many rental housing
developments. It is calculated that over 90% of the residents located within
the Arden Guthrie rental housing development fall into the low and very low
income brackets according to HUD guidelines, which make for feasibility in
utilization of available HUD resources to solve the existing problem Without
such resources it would make it almost impossible to turn the situationaround
where investors must reinvest large sums of money into a property's
rehabilitation before re-syndication or refinancing is attractive to new
investors.
AMON HOUSING PMOPBMT!' MANAGEMEff experience in this
aspect of housing management services has been demonstrated in several local
subsidized housing complexes within the San Bernardino community.
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Draft
This plan takes the form of a basic outline,-of which there is:
1. Mission statement and purpose for developing the plan.
2 Goals to be achieved within the context of the stated mission.
& Short term objectives for the attainment of those goals.
4 Long term objectives for the attainment of those goals.
5. Financial summary and proforma. projection based upon the
fulfillment of the mission,attainment of goals and achievement of
all related objectives.
This plan encompasses a five-year period in its first phase beginning,
December 1. 1992 through 1995, and fully matures in its 7th year which
encompasses its long term objectives.
Uladw
Our mission will be to restore health to the Arden Guthrie project area
through a consolidated management plan concurrent with an acquisition
program intended to place over 50% ownership into single control.
This is to be done by effectively utilizing available HUD resources and
the Redevelopment Agency of San Bernardino as cooperative instruments.
To establish a demonstration project for the Redevelopment Agency
and proceed towards restoration of several rental housing project areas.
Providing the city with a creative unique alternative to neighborhood
deterioration often caused by absentee landlords, gang inilltration into
concentrated areas and the lack of municipal intervention where needed
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Our goals are to:
L To make necessary changes in the community infrastructure through
rehabilitation and improvements to increase safety for residents.
2 To ultimately put into place a stabilization mechanism to maintain
stability for the next few years and provide service for contract in the
following areas.
A. Provid manegemeat serviees:develop consolidation plan
which subsidizes existing owners' participation at a minimal fee.
B. Financial management and eonsulting:to professionally provide
those necessary services to existing owners such as feasibility
analyses of rehabilitation activities, income and expense
projections, market surveys, investment analyses, and
management plans.
C. Acquisition-Sales-RentiVto actively seek opportunities to
purchase or market properties from owners, to aid owners in
fully occupying units to reduce vacancy factors.
D. Asset Abnagementto provide expert financial management and
investment supervision for owners inside the project area
E. Rehabilitation and Development ea :to isolate those
properties which have reached economic an functional
obsolesce, providing rehabilitation management for re-entry into
rental market
& Develop the mechanism to make financially feasible the acquisition of
more than 50% of the 184 four-plexes in the project area
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Term OWectivez
1. To institute and establish full service management for existing owners,
operating in accordance with the guidelines of the Department of Real
Estate and in compliance with all HUD regulations, local and state rules
and regulations.
Services to inchude the fonowing:
A. On-site Management EL pre-Rental preparation
Cr Apartment Rentals L Collection of Rents
D. Maintenance J. RehabilitationSupervision
F. Security B. Tenant Relations
F. Evictions L Monthly Reports
G. Landscape Supervision IL Accounting
2 To access position of all available properties readily available for
acquisition
& Assist Redevelopment Agency in development of Management
Agreement between Agency and Owner, and Agency and Management
4 To make acquisition of headquarters and satellite offices within the
project area
S. Seek subsidy from local Housing Authority and HUD for project
priority I =
L Consummate agreement with Redevelopment Agency to proceed with
plan.
2 Coordinate approvals of new management agreement with all concerned
entities.
S. Secure necessary start-up fees and financial arrangement to insure
smooth operation during first year of plan implementation.
4 Identify and acquire facilities within project area
M"QUWb PMPOW Fbv NQM* x9,1992 P&P6
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ani six months
L Develop and implement effective accounting functions for owners, both
trust and corporate requirements.
2 Develop, organize and implement personnel training program and
orientation for on-site and administrative personnel.
& Complete joint development agreement with City for management and
acquisitionassistance.
4 Make preparation and marketing plan for units available for rent-up/set
up communications to offer HUD assistance.
* Provide for procedures to maintain financial responsibility to owners.
* Bring at least 50% of owners aboard special management consolidation
agreement
Lmg Tern O Wectiwes
Year three through seven
1. Phase out management subsidy to owners.
2 Achieve goal of at least 50% ownership into single entity.
3. Make agreement that sustains ownership in developed form for next
five to seven years.
4 Continue acquisition program for remaining properties.
5. Beautification and restoration of community appearance and activities.
6. Financial and economic maturity of all available grant resources.
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The cost of consolidating management of Arden Guthrie must be attractive to
existing owners and feasible for operations. At an estimated cost of between
$35. and «4& per month per unit or $180.00 per building, we are suggesting
this fee be subsidized to owners willing to provide housing for income
qualified applicants.This will be an incentive since the condition has been one
which owners have had no choice any way only without the means or expertise
- needed to maintain such occupancy, and exercise a community control of
neighboring owners' residents who aid in deterioration.
BUDGETPROJECrIONS
Montw Management Serriam Fee $ 29,4{0
Annual Budget, P n nnnendations for Support Staff
Social Service Assistant 43,000
Rental Agents 64,000
I andsc�aoe Contractors 10Op W
Total $ g27.000
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