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Home My WebLink About2019-05-09MINUTES PALM DESERT HOUSING AUTHORITY MEETING THURSDAY, MAY 9, 2019 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. Chairman Weber convened the meeting at 3:01 p.m. II. ROLL CALL Present: Member Jan C. Harnik Member Sabby Jonathan Member Kathleen Kelly Vice Chairman Gina Nestande Chairman Susan Marie Weber Also Present: Lauri Aylaian, Executive Director Robert W. Hargreaves, City Attorney Rachelle D. Klassen, Secretary Lori Carney, Director of Administrative Services Russell Grance, Director of Building & Safety Ryan Stendell, Director of Community Development Martin Alvarez, Director of Economic Development Janet M. Moore, Director of Finance/City Treasurer Tom Garcia, Director of Public Works Ty Davis, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Bryan White, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Matt Martello, Asst. Chief, Palm Desert Police/Riverside Co. Sheriffs Department M. Gloria Sanchez, Management Specialist II III. ADJOURN TO CLOSED SESSION Request for Closed Session: A. Conference with Real Property Negotiator pursuant to Government Code Section 54956.8: MINUTES PALM DESERT HOUSING AUTHORITY MEETING MAY 9, 2019 1) Property: Merle Street - 14 Self -Help Lots (APNs 624-441-014 through 624-441-022, and 624-440-032 through 624-440-036), Palm Desert Negotiating Parties: Agency: Lauri Aylaian/Janet Moore/City of Palm Desert/ Palm Desert Housing Authority Property Owner: City of Palm Desert Under Negotiation: x Price x Terms of Payment With Authority Board concurrence, Chairman Weber adjourned the meeting to Closed Session at 3:02 p.m. She reconvened the meeting at 4:00 p.m. IV. RECONVENE REGULAR MEETING - 4:00 P.M. A. REPORT ON ACTION FROM CLOSED SESSION. Mr. Hargreaves reported that direction was given but no reportable actions were taken. V. CONSENT CALENDAR For clarification, Housing Authority Consent Calendar is combined into the CITY COUNCIL AGENDA, Section XII - CONSENT CALENDAR and considered jointly. It appears here only for record -keeping purposes. A. MINUTES of the Housing Authority Meeting of April 25, 2019 (Item L on City Council Agenda Section XII - Consent Calendar). Rec: Approve as presented. Upon a motion by Kelly, second by Harnik, and 5-0 vote of the City Council, Successor Agency Board, and Housing Authority Board (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None), the Consent Calendar was approved as presented. VI. CONSENT ITEMS HELD OVER None VII. RESOLUTIONS None 2 MINUTES PALM DESERT HOUSING AUTHORITY MEETING MAY 9, 2019 VIII. NEW BUSINESS None IX. CONTINUED BUSINESS None X. OLD BUSINESS A. CONSIDERATION OF A REQUEST BY ALLIED AFFORDABLE HOUSING, LLC, TO EXTEND ENTITLEMENTS AND CONTRACT FOR PROPOSED DEVELOPMENT OF THE ARC VILLAGE PROJECT AT THE HOUSING AUTHORITY VACANT PROPERTY KNOWN AS APN 622-020-096 (JOINT CONSIDERATION WITH THE PALM DESERT CITY COUNCIL). Senior Management Analyst Jessica Gonzales stated that approval of staffs recommendation will allow an extension to entitlements and ground lease for the Arc Village Project. She recalled that in August 2018 the City Council/Authority Board approved an extension that aligned both the entitlements and ground lease for the project, which are soon to expire on May 17, 2019. Developer Allied Affordable Housing, LLC, requested an additional one-year extension to May 17, 2020, so that they can seek and secure the financing gap necessary to develop the project, having identified new and existing funding sources coming available within the next month to assist with that gap. She said staff recommends approval and offered to answer questions, noting that Allied Affordable Housing's representative, Ms. Yvonne Delgadillo, was also present today for that purpose. MS. YVONNE DELGADILLO, Allied Affordable Housing, LLC, Santa Monica, CA, expressed appreciation for the City's/Housing Authority's support over the past two years. She acknowledged that it's been a frustrating process for all in trying to secure funds. However, the subject extension request was being made because they're seeing some new resources opening up within the next few months to help bridge the financing gap. Originally, she said they were considering a 9% Low -Income Housing Tax Credit Project through the State of California. Whereas, now they're exploring using a combination of 4% Low -Income Housing Tax Credits, which are non-competitive, with a combination of other Housing and Community Development grants and resources from the State of California. One of those was the Multi -Family Housing Program, which was due to come out any time now. Additionally, she said another round of Home Funds was expected, which Allied applied for in August 2018, and theirs would have been the next project funded if more resources had been available. Although in the interim, she noted that Allied secured six vouchers from Riverside County Housing Authority, shortening the gap they face in order to secure all needed financing. She 3 MINUTES PALM DESERT HOUSING AUTHORITY MEETING MAY 9, 2019 said the past year for Allied will be the last opportunity for them to go out and bring the subject project to fruition. She stated that Allied continues communicating with Desert Arc, neighbors of the site, and the City/Housing Authority, because they're committed to this important project, reiterating great appreciation for all the City's/Authority's support throughout the process. Councilmember/Member Harnik thanked Ms. Delgadillo for the time she took the other day to provide a lot of valuable information. She went on to say that many know she's quite passionate about this project, because it is one that will serve not only Palm Desert but is very important to the entire region. With all the effort that's been put into it so far, along with a shift in thinking at the State Capitol, she hoped perhaps now there will be more support for the project and again thanked Ms. Delgadillo for all the work she was doing. Councilman/Member Jonathan commented that he was in favor of the extension. However, when it terminates, it will have been five years that the two parties have been dancing together on this project, this being the third or fourth extension. Personally, he believed that Allied has the same concerns, that there are only so many resources they can expend on this project, especially after three denials. He clarified that he's also passionately in favor of the project for all the benefit that it will provide Palm Desert and Valley residents. But after five years, he expects at this point if it's not successful, all parties need to take another direction - barring any other compelling reasons for continuing - which will be at the end of this extension. Mayor/Chairman Weber noted that she, Councilmembers/Members Kelly and Jonathan, and Mr. Stendell attended a meeting earlier today where related information was presented. Mr. Stendell went on to say it was an update from Daniel Carrigg, Deputy Executive Director/Legislative Director for the League of California Cities. Mr. Carrigg echoed many of the comments made by Allied today that there are different sources of funding out there, and the landscape for funding of affordable projects is different still. Mr. Stendell observed he didn't recall in the recent past as much money being available for these projects as there was currently and hoped it would help get this project completed. Mayor/Chairman Weber remarked the information from that meeting was what provided optimism for the subject project and request before the City Council/Authority Board today. Mayor Pro TemNice Chairman Nestande noted she was very supportive of this project and the Allied Affordable Housing group, and was impressed by Ms. Delgadillo when she had opportunity to meet with her approximately one month ago. Further, she was very optimistic about the project's future. 4 MINUTES PALM DESERT HOUSING AUTHORITY MEETING MAY 9, 2019 Mayor Pro Tem/Vice Chairman Nestande moved to, by Minute Motion: 1) Approve the request by Allied Affordable Housing, LLC, Santa Monica, California, to extend Case No. PP/CUP 16-102 and Contract No. HA34970 through May 17, 2020, for the proposed development of the Arc Village Project at the Authority's vacant property known as APN 622-020-096; 2) authorize legal counsel to prepare and finalize an extension contract; 3) authorize the Chairman and/or Executive Director, or her designee, to execute any necessary actions, including the negotiated extension contract and any documents necessary to facilitate the contract and the Arc Village Project. Motion was seconded by Councilmember/Member Kelly and carried by 5-0 vote (AYES: Harnik, Jonathan, Kelly, Nestande, and Weber; NOES: None). XI. PUBLIC HEARINGS None XII . REPORTS, REMARKS, AND AUTHORITY BOARD ITEMS REQUIRING ACTION A. EXECUTIVE DIRECTOR None B. AUTHORITY COUNSEL None C. CHAIRMAN AND MEMBERS OF THE AUTHORITY None XIII. ORAL COMMUNICATIONS - C None XIV. ADJOURNMENT With Authority Board concurrence, Chairman Weber adjourned the meeting at 5:07 p.m. ATTEST: RACHELLE D. KLASSENE,JSECRETAR PALM DESERT HOUSING AUTHORI SUSAN MARIE WEBER, CHAIRMAN 5