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HomeMy WebLinkAbout15- Development Department D VELOPMENT DEPARTME - T OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNETH J. HENDERSON SUBJECT: CALIFORNIA INN (SRO) Executive Director DATE: February 16, 1994 --------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Councit/Committee Action(s): The Community Development Commission and Redevelopment Committee, on September 20 and October 7, 1993 considered the technical default status of the California Inn DDA. The Committee developed these recommendations for Community Development Commission consideration. On October 21, 1993 the Community Development Commission authorized staff to retain a professional consultant to prepare a Comprehensive Market Analysis on the proposed California Inn Single Room Occupancy (SRO) project. --------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission consider disposition of the California Inn Single Room Occupancy (SRO) project development agreement between Larcon Development and the Redevelopment Agency. Administrator KENNET J. HENPERSON Executive Director --------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Kenneth J. Henderson/David R. Edgar Phone: 5081 Project Area(s): Central City North (CCN) Ward(s): One (1) Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A --------------------------------------------------------------------------------------------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------------------------------------------------- KJH:DRE:ABE:paw:califsro.cdc COMMISSION MEETING AGENDA MEETING DATE: 02/21/94 1 Agenda Item Number: _ DEI ' LOPMENT DEPARTI ' NT STAFF REPORT --------------------------------------------------------------------------------------------------------------------- CALIFORNIA INN (SRO) This report seeks Community Development Commission's consideration of the ultimate disposition of the California Inn SRO project, with the understanding that the Commission's actions may be impacted by ongoing negotiations between staff and the developer. Following referral by the Community Development Commission, on January 18, 1994 the Housing Committee received and filed the SRO Market Study prepared by Keyser Marston Associates (KMA). After a summary presentation of the market study, Larcon Development presented to the Committee a formal six (6) page response (dated December 15, 1993) to the Keyser Marston Associates analysis. It was mutually agreed that further discussion and consideration of this agenda item be continued to the next regularly scheduled Housing Committee meeting, in order to provide KMA with sufficient time to review and respond to comments made by Larcon Development. As indicated, Larcon Development has clearly articulated its position regarding both the KMA analysis and the potential SRO market within the City of San Bernardino. Keyser Marston Associates subsequently completed an analysis of the Larcon Development response to the California Inn SRO Market Analysis. Based upon its analysis of the Larcon response, KMA has re-affirmed its position that virtually none of the conditions that warrant SRO facility development are currently present within the San Bernardino community. In KMA's estimation, "the potential demand for SRO units in San Bernardino is extremely thin and SRO hotels are not the most appropriate housing product for downtown San Bernardino". The disparity of opinion surrounding the market feasibility of SRO development is apparently a direct result of the following: • Lack of accurate information • Inappropriate utilization of unrelated information; and • Misinterpretation of the information utilized In addition to the KMA response, several items in Larcon's response required additional clarification by staff, including: • Reference was made to a March 1993 Market Profiles report. The report stated that, "SRO is the only housing concept that Market Profiles believes can be supported in today's market at the subject property." The specific purpose of that -------------------------------------------------------------------------------------------------------------------------- KJH:DRE:ABE:paw:ca1ifsro.cdc COMMISSION MEETING AGENDA MEETING DATE: 02/21/94 Agenda Item Number: I_J DEVELOPMENT DEPA- "MENT STAFF REPORT CALIFORNIA INN (SRO) February 15, 1994 Page Number - 2 - ---------------------------------------------------------------------------------------------------------------- report, however, was to consider viable land use alternatives for the downtown/Central City area of San Bernardino. Market Profiles did not conduct a comprehensive SRO market study and has provided staff a letter stating such. • Reference was made to the Project for Public Spaces (PPS) Downtown San Bernardino Plan Study dated June 1992. This plan incorporated the California Inn project into the Downtown Plan at the request of staff. It was the intent to have the Downtown Plan take into account proposed "pipeline" projects within the Central Business District, such as the superblock, the Main Street Streetscape, Empire Bay and the California Inn, and prepare the Plan accordingly. • Questions were raised regarding including and/or excluding the California Inn in affected CHAS documents. In the 1992 CHAS document, the Department of Urban and Development required the inclusion of all agency sponsored projects regardless of their current development status. The most recent CHAS regulations, however, do not require that specific projects be mentioned until they are actually constructed. On February 1, 1994 the Housing Committee met and thoroughly reviewed and discussed KMA's response to Larcon's comments. Following these discussions, and recognizing the wide disparity of opinion that exists regarding the feasibility of this development, the Housing Committee forwarded consideration of this item directly to the Community Development Commission without benefit of a formal recommendation. At the direct request of the Housing Committee, Agency staff subsequently met with Larcon Development to attempt a mutual resolution of these issues. Agency staff and Larcon Development are currently negotiating a mutually satisfactory agreement surrounding final disposition of the California Inn development project. Base upon the foregoing, staff recommends adoption of the form motion. KENN TH J. H NDERSON, Executive Director Development Department -------------------------------------------------------------------------------------------------------------------------- KJ11:DRE:ABE:paw:ca11fsro.cdc COMMISSION MEETING AGENDA MEETING DATE: 02/21/94 Agenda Item Number: CITY OF SAN BERNARDINO INTEROFFICE MEMORANDUM OFFICE OF THE MAYOR TO: J. Lorraine Velarde, Mayor's Executive Assistant FROM: Margie Vance, Senior Secretary SUBJECT: COUNCIL MEETING - MONDAY, FEBRUARY 21, 1994 DATE: February 21, 1994 COPIES: City Clerk's Office; Council 's Office PRESENTATIONS A) Approximately 50 British exchange students from Bridgwater College in England will be acknowledged and Certificates of Friendship will be presented at a brief reception in the lobby area. B) Service Pins Presentations - see attached list. APPOINTMENTS C) John N. Martin - appointed to the Human Relations Commission, per Councilman Oberhelman's request. D) Sally Morris - appointed to the Human Relations Commission, per Councilwoman Miller' s request. (will not attend) . PROCLAMATION E) Bernice Berenbaum will accept the Paradise Chapter B'Nai B'rith Women Day proclamation. Mayor's Senior Secretary MFV:me