HomeMy WebLinkAboutHA34970 PP-CUP 16-102 Allied Real Estate Arc Village Request to Extend Entitlements - Joint ConsiderationSTAFF REPORT
JOINT CONSIDERATION
CITY OF PALM DESERT/PALM DESERT HOUSING AUTHORITY
COMMUNITY DEVELOPMENT and HOUSING DEPARTMENTS
MEETING DATE: April 16, 2020
PREPARED BY: Eric Ceja, Principal Planner
Jessica Gonzales, Senior Management Analyst
REQUEST: Consideration of a request to extend Case No. PP/CUP 16-102
entitlements for the proposed development of the Arc Village Project
and Contract No. HA34970 at the Authority vacant property known as
APN 622-370-014
Recommendation
By Minute Motion, that the City Council and Authority Board,
1) Consider a request to extend Case No. PP/CUP 16-102 entitlements and
Contract No. HA34970 with Allied Real Estate Partners, LLC through
September 30, 2020 for the proposed development of the Arc Village Project at
the Authority vacant property known as APN 622-370-014; and
2) Authorize legal counsel to prepare and finalize an extension contract; and
3) Authorize the Chairman and/or Executive Director or their designee to
execute any necessary actions including execution of the negotiated
extension contract and all related documents necessary to facilitate the
contract and the Arc Village Project.
Strategic Plan
One of the priorities of the City of Palm Desert ("City") Envision Palm Desert Strategic Plan
as part of Land Use, Housing and Open Space is to facilitate development of high quality
housing for people of all income levels. This request meets that objective by diversifying
the City's housing stock and pursuing development of housing for low income households.
Executive Summary
Approval of this request will allow an extension to the Arc Village Project ("Project")
entitlements and Contract No. HA34970, the Ground Lease and Regulatory Agreement
("Lease"), in order for the lessee/applicant, Allied Real Estate Partners, LLC ("Allied") to
secure funding needed for the Project.
Staff is recommending an extension of both the entitlements and the Lease for the Project
through September 30, 2020.
April 16 — STAFF REPORT
City/Authority — Consider Extension of Case No. PP/CUP 16-102 entitlements and Contract No. HA34970
Page 2 of 2
Background Analvsis
On January 14, 2016 the Authority approved the Lease with Allied for the purpose of
developing the Project, a 36 unit affordable housing project at the Authority owned property
known as APN 622-020-096 located behind Desert Arc, 73-255 Country Club Drive.
Thereafter, on May 17, 2016, the City's Planning Commission approved entitlements to
allow Allied to construct an 8,579-square-foot community center building, and the Project.
On May 2019, the City Council and Authority Board considered a request from Allied, and
approved an extension of the entitlements and Lease for the Project through May 17, 2020.
Allied decided to then pursue funding from the California State Department of Housing and
Community Development ("HCD") in August of 2019. Unfortunately, HCD disqualified the
application submitted by Allied due to lack of site control.
On January 22, 2020, Allied Real Estate Partners, LLC, submitted a new application to HCD
for Home Investment Partnerships Program (HOME) funds. HCD will not be releasing
award of funding until June 2020. In order to consider the timing of the award of the HOME
funds, staff is seeking a four (4) month extension to both the Lease and entitlement for the
Project. With the Project extension and the Lease through September 30, 2020, it will
provide Allied with additional time to await HCD's notification of award of funds that will
secure the financing gap needed to develop this Project.
Staff considers the request of an extension of both the entitlements and the Lease for the
Project to be extended through September 30, 2020 acceptable. Staff therefore
recommends that the City Council and Authority Board approved this request and related
actions in order to secure funding needed for the Project.
Fiscal Analvsis
There is no fiscal impact to the City and the Authority in connection with the proposed
request. There is also no impact to the General Fund.
LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY
MANAGER
N/A qS Im aq
Jim Grayson Ryan Stendell Janet Moore
Special Counsel Director of Community Director of Finance Andy Firestine
Development Assistant City Manager
City Manager, Lauri Aylaian: 29
LESEE/APPLICANT: Allied Real Estate Partners, LLC ("Allied").
ATTACHMENTS: None.
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