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HomeMy WebLinkAbout05-Community Development ~ , CITY OF SAN BERNBDlNO - RIEQUeST ,Q. COUNCIL ACTION From: Kenneth J. Henderson, Director Subject: STATUS REPORT ON CITY/HOUSING AUTHORITY/SAN BERNARDINO COMMUNITY HOSPITAL SENIOR HOUSING COllPLEX P De~: Community Development Da~: June 9, 1988 Synopsis of Previolls Council action: On November 17, 1986, the Mayor and Common Council approved in concept the development of a fifty (50) unit senior housing complex by city, the Housing Authority and San Bernardino Community Hospital. Recommended motion: That the Mayor and Common Council receive and file status report on fifty (50) unit senior housing complex and direct staff to prepare detailed financing plan for project implementation. Contact person: Ken Henderson/Maurice Oliva Phone: 5065 Supporting data attached: Staff Report Ward: 6 FUNDING REQUIREMENTS: Amount: N/A Source: (Acct, No,) N/A IAcct, DescriPtion) Finance: Council Notes: .6.nAnn::. l'tarn Nn ~.- . , CITY OF SAN BERNSDlNO - REQUEST F&. COUNCIL ACTION STAFF REPORT In November 1986, the Mayor and Common Council approved in concept the development of a fifty (50) unit senior citizen apartment complex in conjunction with the County of San Bernardino Housing Authority and San Bernardino Community Hospital. Since that time the composition of the Common Council has changed significantly, a building moratorium was imposed by the State Office of Planning and Research (OPR) and the San Bernardino Community Hospital site to be leased to the Housing Authority at the corner of Flores and 17th Streets is still available although the site is considered desirable by other prospective hospital tenants. These developments underscore the need to provide to the Mayor and Common Council a status report on this project, and to seek direction from the Mayor and Common Council regarding the financing of same. The project, as proposed, is a fifty (50) unit apartment complex for senior citizens on fixed incomes, primarily SSI and SSA recipients, and, would include a generously sized multi-purpose facility for leisure and educational and avocational activities. Development costs for the project, estimated at $2,000,000, would be shared on a fifty/fifty (50-50) basis by the City and the Housing Authority, with the Authority to own and manage the project. Proceeds derived from an anticipated net operating profit would be deposited in a specific fund for the development of additional senior projects. The fund would not be used to defray the general administrative expenses of the Housing Authority, and would be audited annually with copies of said audit provided to the City. It is important to note that the subsidy by the City and Housing Authority is up front and is limited to the actual construction costs, rather than rent subsidies from individual units which require cash outlays for significant periods of time (up to forty (40) years). As stated earlier, the project is proposed on land owned by San Bernardino Community Hospital. The hospital would lease the land to the Authority, provide security emergency alert devices and develop activities for the seniors residing in the project. It is anticipated that the hospital will be significantly involved in the implementation of a comprehensive range of activities and services to be provided to the residents of the project. Because the subsidy is made up front, the problem for the City has been coming up with its share of the estimated $2,000,000 construction cost. After a number of meetings with the Housing Authority Executive Director, Board of Commissioners and the President/CEO of Arrowhead Healthcare System, the parent company of San Bernardino Community Hospital, staff determined that the City's portion of the cost of construction could be bond financed and the City'S bonded indebtedness retired by funds derived from twenty percent (20%) set aside funds. 6-9-88 75-0264 , ~ o o Essentially, the City would issue to itself and the Housing Authority a mortgage revenue bond for the construction of the facility and other improvements. The Housing Authority, which has its share of construction cost on hand, would opt to pay its share up front or on terms, whichever alternative was considered more advantageous. The city would retire its share of the bond by pledging a portion of the twenty percent (20%) set aside funds. As of May 26, 1988, the Redevelopment Agency had on deposit $441,000 in the fund. In addition, $362,133, $394,856 and $200,205 is projected to be received by the Agency for the Northwest, Tri-city and South Valley Redevleopment Project Areas, respectively, for the period ending June 30, 1988. These figures indicate the City could retire its portion of the construction cost with funds from this fund. In conjunction with the above information, staff proposes to use as bond counsel, Mudge Rose Guthrie with interviews with the city Attorney scheduled for June l6, 1988. Mudge Rose Guthrie proposes, in addition to bond counsel services, to assist staff in developing a Request for Proposals for bond underwriting/financial advisor services. It is anticipated that Mudge Rose Guthrie could be instrumental in developing a composite bond issue (comprised of small projects) and/or assist the city in marketing several small issues simultaneously. staff is seeking the endorsement of the Mayor and Common Council in order to proceed with a detailed financing plan. I recommend adoption of the form motion, ~~ Director of Community Development KJH/lab/1015 6-9-88 , .. CUV OF SAN BERNARQNO - REQUEST FO~OUNCIL ACTION '. - From: Kenneth J. Henderson, Director Subject: APPROVAL IN CONCEPT OF CITY OF SAN BERNARDINO--SAN BERNARDINO COMMUNITY HOSPITAL--HOUSING AUTHORITY SENIOR HOUSING PROJECT [. Community Development Date: November 6, 1986/November 17, 1986 Synopsis of Previous Council action: None Recommended moti.on: FORM MOTION: { That the M~ycr and Common Council approve, in concept, the development of ~ senior housing project to be jointly developed by City, San Bernardino Community Hospital and the Housing AuthQrity of the County of San Bernardino and authorize and direct staff to develop a financing plan relating to City's share of the development cost. ~ G ~f17 Contact person: Supporting data attached: __~~~~.f_!~eJ'or~_ Ken Henderson Phone: 383-5065 Ward: 6 FUNDING REQUIREMENTS: Amount: NIA Sou rce: Finance: C'" Incil Notes: ---~---~------_..._----- .________~_ _ . ___.._ _ .______._______._u ".0>62 Agenda I tern No. .y < , CITY OF SAN BERNA~INO - REQUEST FO~OUNCIL ACTION STAFF REPORT On October 7, 1986, Councilman Frazier, staff and executive manage- ment staff from San Bernardino County !lousing Authority met to discuss in preliminary terms the development of a fifty (50) unit senior housing project to be located in the Sixth Ward. The discussion centered around the development by the !lousing Authority of four (4) senior housing projects throughout the County. Presently, one (1) forty-eight (48) unit facility has been constructed on property immediately west of Montclair Plaza in the City of Montclair, with plans for three (3) additional projects to be constructed in the City of ~an Bernardino, the community of Highland and in the City of Victorville in the high desert. The primary purpose of the project(s) is to provide unsubsidized housing for seniors on fixed incomes, with the !lousing Authority and the participating local government sharing the development cost of the project. Prior to the conclusion of the meeting described above, staff suggested to Councilman Frazier that the administration of San Bernardino Community Hospital be contacted regarding the possi- bility of the hospital providing the land for this project, inas- much as the hospital had submitted to HOD applications for finan- cial assistance for the development of a senior housing and dis- abled housing project. A telephone call was placed to Mr. Ray Barton and an appointment was scheduled the next day on October 8, 1986. ( The response of the hospital staff was very positive and a meeting was scheduled with the Housing Authority, including the Authority's Chairman of the Board, hospital administrative staff, Councilman Frazier and Community Development staff. With the project financing based on a proposed fiftylfifty (50/50) split between the Housing Authority and the participating local government, it was agreed that whatever the hospital contributed to the project would be applied toward the City's share of the cost of development. Following are some of the more salient features of the proposed development. 1. Housing Authority to contribute at least fifty percent (50%) of the development cost. 2. Arrowhead Health Care System, Inc., the parent company of San Bernardino Community Hospital would lease two (2) acres to the Housing Authority for the life of the buildings. 3. The hospital would provide additional land, if necesssary, to enhance the quality of the project. 4. The appraised value of the land to be leased to the Housing Authority would be counted toward the City's share of the cost of development. 75.0264 . '. o o 5. San Bernardino Community Hospital would provide ongoing se- curity during construction and for the life of ~he project. 6. San Bernardino Community Hospital to contribute toward install- ation of emergency alertlresponse system in each individual unit. The system would be tied into the hospital's communica- tionsldispatch network. 7. Arrowhead Health Care System, Inc., would require some name identificationlrecognition with the project. 8. Any costs rebated or exempted as a result of Enterprise Zone would apply toward City's share of development cost. The project requires that a street be developed to provide access to the project from a nearby thoroughfare. Based upon the total development cost and the City's as yet undetermined contribution, staff is recommending that the Mayor and Common Council approve, in concept, the development of a senior housing project and authorize staff to proceed with the development of a financing plan relating to the City's share of the cost of the development. The Housing Authority has indicated it would be willing to front the cost of development if the City is willing to contribute its share in- crementally over a period of years or on a lump sum basis. Staff recommends adoption of the form motion. ~6~~ Kenneth J. Hender~, Community Development Director Department file: staffrepseniorh KJH/lb '\, 0 ~ 0 lfig' ; Ji -I ~~ ~ I~ 1 1 - ! ~ cnii ~~OP_ \0 E lII( - ~C\J I , ; '.' W t . . s ~ E ! ti ~~ ~ ~ ~~ 90 C> ~\I ~ ): . a! ~~ J 1 , ., .... ~~ C?lJ ~~ ~- ~ 1 t , . . '. . . ; , '.; . ' . ", ..~ .'.', . . .