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2007/11/13 City Council Resolution 2007-188RESOLUTION NO. 2007-188 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK RECEIVING FROM THE COMMUNITY DEVELOPMENT COMMISSION THE REDEVELOPMENT ANNUAL REPORT FOR FISCAL YEAR ENDING JUNE 30, 2007 WHEREAS, Section 33080.1 of Community Redevelopment Law of the State of California, Health and Safety Code, requires that each redevelopment agency within the State of California present an annual report to its legislative body within six months of the end of the agency's fiscal year; and WHEREAS, the Community Development Commission of the City of Rohnert Park has prepared the 2006 -07 Annual Report containing various financial and performance information for the Rohnert Park Redevelopment Project Area and has submitted it to the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it has received from the Community Development Commission the Redevelopment Annual Report for Fiscal Year ending June 30, 2007. DULY AND REGULARLY ADOPTED this 13th day of November 2007. CITY OF ROHNERT PARK Pro Tempore ATTEST: BREEZE: AYE MACKENZIE: AYE SMITH: AYE STAFFORD: AYE VIDAK- MARTINEZ: ABSENT AYES: (4) NOES: (0) ABSENT: (1) ABSTAIN: (0) JH- S:05 -d COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF ROHNERT PARK 2006 -07 ANNUAL REDEVELOPMENT REPORT Independent Financial Audit and Financial Statement, State Controller's Report and Department of Housinz and Community Development Report The State Controller's Report and the Department of Housing and Community Development Report will be submitted prior to December 31, 2007. Due to circumstances beyond staff's control, The Independent Financial Audit will be completed and submitted in the first quarter of 2008. Accountinz ofHousinz and Displacement Activities CRL Section 33080.1 (a)(2)(c), requires a description of the Commission's affordable housing activities in the 2006 -07 fiscal year. Accordingly, the following has been identified: 1) Displacement: There were no non - elderly or elderly households that were displaced or moved from their dwelling units as part of a redevelopment project of the Agency during the 2006 -07 fiscal year. 2) Housing Activities: • In 2006/07, the Commission approved Amendment No. 1 to the Affordable Housing and Loan Agreement with Arbors Rohnert Park Apartments LP who assumed all of the rights and obligations of Burbank Housing Development Corporation according to an Assignment and Assumption Agreement. The amendment allowed for an additional loan of $90,000. This loan supplemented a $3,925,000 loan made in 2005/06. These additional funds provided by the Commission assisted the developer to overcome a budget deficit and allowed for the Arbors project, a mixed use project which includes 56 affordable housing units and 7500 square feet of retail /restaurant space to be completed in 2006/07. • In 2006/07, the Commission Authorized and Approved an Agreement for Deferral of Payment of Certain Development Related Fees for the Vida Nueva Project which will provide a 24 -unit permanent supportive affordable housing rental complex, a community building, laundry facilities, management office and activity and counseling rooms. This Agreement allows the Developer to proceed without immediate financial obligations associated with permit, inspection and development impact fees. • In 2006/07 an Affordable Housing Covenant was adopted between the City of Rohnert Park and Aston Management Group, LLC requiring that one (1) of the eight (8) units of the Vineyards Live /Work project be designated for sale to a Moderate Income Household in accordance with the City's Inclusionary Housing Ordinance. The affordability restriction on this unit is to remain in place for a minimum of forty -five (45) years. • In 2006/07, the Commission contributed $120,000 for Sonoma County Adult & Youth Development ( "SCAYD ") homeless prevention program. The mission of SCAYD is to prevent homelessness by providing a one -time only emergency assistance for households suffering temporary financial difficulty by providing rental and deposit assistance and financial counseling. This program allows low- income families the opportunity to live in stable housing while regaining financial stability and independence. During the 2006 /07 fiscal year, SCAYD assisted 122 very low - and low - income households, representing 300 people in Rohnert Park. The Commission also allocated an additional $38,160 to SCAYD to assist households residing at Sonoma Grove RV park at risk of becoming homeless due to unexpected significant rent increases. • In 2006/07, the Commission contributed $66,400 for Committee on the Shelterless ( "COTS "). COTS is a non - profit service organization, Shared Housing Program which houses single parent families who are transitioning from homelessness to independent living. COTS operates five, four - bedroom transitional houses within the redevelopment project area. Each house accommodates approximately four families. • In 2006/07, the Commission contributed $50,000 for Rebuilding Together. Rebuilding Together is a non - profit community organization that provides free health and safety repairs to the homes of low - income families with children, seniors and/or disabled individuals. • In 2006/07 the Commission provided $82,213.45 toward home - ownership rehabilitation loans and grants program administered by the County of Sonoma. The purpose of this program is to maintain residential properties within the City of Rohnert Park which are occupied by low- income households. Summary of the CDC's Efforts to Alleviate Blight in the Proiect Area CRL Section 33080.1 .(a)(2)(d), requires a description of the Commission's progress; including specific actions and expenditures, in alleviating blight in the previous fiscal year. In December 2005, the Commission prepared an updated Five Year Implementation Plan to cover the periods of 2004 -05 through 2008 -09. The Commission's 2005 -2009 Housing and Redevelopment Implementation Plan lists the Commission's five -year plan for the elimination of blight. This Blight Progress Report is described in a manner corresponding to the goals and objectives described in the Plan. 1) Goal: Housing for All Families — Consistent with Community Redevelopment Law of the State of California, Health & Safety Code Sections 33000 et seq., increase, improve, and expand the community's supply of affordable housing. The following homeless prevention and assistance programs were funded in FY 2006/07: • $120,000 for Sonoma County Adult & Youth Development ( "SCAYD ") homeless prevention program. The mission of SCAYD is to prevent homelessness by providing a one -time only emergency assistance for households suffering temporary financial difficulty by providing rental and deposit assistance and financial counseling. This program allows low- income families the opportunity to live in stable housing while regaining financial stability and independence. • The Commission allocated an additional $38,160 to SCAYD to assist households residing at Sonoma Grove RV park at risk of becoming homeless due to unexpected significant rent increases. • $66,400 for Committee on the Shelterless ( "COTS "). COTS is a non - profit service organization, Shared Housing Program which houses single parent families who are transitioning from homelessness to independent living. COTS operates five, four - bedroom transitional houses within the redevelopment project area. Each house accommodates approximately four families. The following programs were funded to ensure all residential structures and yards in Rohnert Park are safe, sanitary, adequate, show no visible damage, and exhibit the appearance of regular maintenance. • In 2006/07, the Commission provided $50,000 for Rebuilding Together. Rebuilding Together is a non - profit community organization that provides free health and safety repairs to the homes of low- income families with children, seniors and /or disabled individuals. • In 2006/07 the Commission provided $82,213.45 toward home - ownership rehabilitation loans and grants program administered by the County of Sonoma. The purpose of this program is to maintain residential properties within the City of Rohnert Park which are occupied by low- income households. • In 2006/07, the Commission provided $47,452 for the rehabilitation and maintenance of existing homes owned by the Commission. The homes are managed by COTS and house single parent families who are transitioning from homelessness to independent living. The Commission intends to provide $53,563 in 2007/08 needed to complete the rehabilitation of these homes. The Commission is implementing the following programs in order to provide a mixture of owner and rental housing opportunities affordable to households with very low, low, and moderate incomes. In 2006/07, the Commission approved Amendment No. 1 to the Affordable Housing and Loan Agreement with Arbors Rohnert Park Apartments LP who assumed all of the rights and obligations of Burbank Housing Development Corporation according to an Assignment and Assumption Agreement. The amendment allowed for an additional loan of $90,000. This loan supplemented a $3,925,000 loan made in 2005/06. These additional funds provided by the Commission assisted the developer to overcome a budget deficit and allowed for the Arbors project, a mixed use project which includes 56 affordable housing units and 7500 square feet of retail /restaurant space to be completed in 2006/07. In 2006/07, the Commission Authorized and Approved an Agreement for Deferral of Payment of Certain Development Related Fees for the Vida Nueva Project which will provide a 24 -unit permanent supportive affordable housing rental complex, a community building, laundry facilities, management office and activity and counseling rooms. This Agreement allows the Developer to proceed without immediate financial obligations associated with permit, inspection and development impact fees. In 2006/07 an Affordable Housing Covenant was adopted between the City of Rohnert Park and Aston Management Group, LLC requiring that one (1) of the eight (8) units of the Vineyards Live /Work project be designated for sale to a Moderate Income Household in accordance with the City's Inclusionary Housing Ordinance. The affordability restriction on this unit is to remain in place for a minimum of forty -five (45) years. 2). Other. Goals of the Commission include: Goal: Clean, Value, and Respect. To stimulate and provide new private investment opportunities by revitalizing property characterized by deterioration, blight or functional obsolescence and to encourage continued investment in the Project Area where growth is planned: • The Commission authorized and approved a loan agreement with the City for $550,000 for the purchase of Wetland Mitigation Credits to allow for future infill /development of the former Baseball Stadium site. Purchase of these mitigation credits will facilitate investment in the site, located within the Project Area. Goal: Create a Stronger Local Economy. To improve employment opportunities, economic stability and productivity and to increase public revenues within the Project Area. Strengthen retail and other commercial functions. To encourage the use of local resources in the development of the Project Area whenever economically feasible. • In order to stimulate private investment in the Project Area, in 2006/07, the Commission contributed $42,000 to Sonoma County Tourism, $57,500 to the Chamber of Commerce. • The Commission authorized and approved funding for an Economic Development Study to better understand the City's revenue base and foster economic development. The study will be a key instrument utilized in future decisions regarding economic development and redevelopment. Goal: Prudently Invest in Pubic Infrastructure. To eliminate environmental deficiencies by achieving a coordinated pattern of commercial, industrial and public land uses in the Project Area with adequate public improvements including but not limited to streets, utilities and flood control improvements. • The Commission provides financial assistance to the municipal golf course capital improvement fund for future improvements at the Foxtail North and Foxtail South Golf Courses. • The Commission makes reoccurring loan payments for the Dorothy Rohnert Spreckels Performing Arts Center and makes payments annually to the City for the land for the Community Center and the Sports Center. In 2006/07, the Commission provided funds for the Community Center Beam Replacement and ADA improvements. The Commission applied for and was awarded $65,521 in Community Development Block Grant funding. This funding will be used to leverage Commission. funding for the ADA improvements to the Community Center. • The Commission selected a Landscape Architect to design improvements to the Community Center Plaza. During 2006/07 the architect worked closely with a design sub - committee and members of the public to generate ideas for improvements to the plaza. • In 2006/07 the Commission entered into an agreement with RBF Consulting to conduct corridor studies for three thoroughfares in the Project Area that are potential candidates for revitalization. The studies will aid in the preparation of concept plans that will allow these corridors to be turned into more attractive environments that are pedestrian- friendly and encourage the redevelopment of adjacent underutilized properties. • In 2006/07 the Commission approved and authorized a Reimbursement Agreement with the City Council of the City of Rohnert Park for the Construction of the Eastside Trunk Sewer Project. The project will help to update inadequate sanitary sewer servicing capabilities and will serve existing users and planned growth. • In 2006/07 the Commission budgeted $600,000 toward a City Center Plaza/Pedestrian Improvement Project. In 2005/06 The Commission was awarded a $1.15 million dollar Transportation for Livable Communities grant. These funds will be used to leverage Commission funds. Construction documents are nearing completion and Commission staff has been working with consultants to meet all the reporting requirements necessary to obtain the grant funding. • In 2006/07 the Commission budgeted $40,000 toward the City's Neighborhood Traffic Calming Program. • In 2006/07, $700,000 was budgeted for Westside Flood Mitigation. Goal: Compound on Past Success. To foster the development of a sense of community identity within the Project Area. To improve the visual image of the City and, specifically, the Project Area, by reinforcing existing assets and by expanding the potentials of the Project Area. • See Achievements above under Prudently Invest in Public Infrastructure. Goal: Use Land Wisely. To encourage the development of commercial uses along major thoroughfares.. To ensure a variety of commercial, office, and /or industrial land uses which will physically and economically complement development within the Project Area. To foster the establishment of landscape buffers between incongruous land uses. • In 2006/07 the Commission entered into an agreement with RBF Consulting to conduct corridor studies for three thoroughfares in the Project Area that are potential candidates for revitalization. The studies will aid in the preparation of concept plans that will allow these corridors to be turned into more attractive environments that are pedestrian- friendly and encourage the redevelopment of adjacent underutilized properties Loan Report: CRL Section 33080.1 (a)(2)(e), requires a list of and status report on, all loans made by the redevelopment agency that are fifty thousand dollars or more, that in the previous fiscal year were in default or not in compliance with the terms of the loan approved by the Commission. There are no loans in default or not in compliance with the terms of the loan. In addition to the loans described above, during the 2003/04 Fiscal Year, the Commission loaned $175,000 to Lea and John Marchesiello for the development of four affordable housing units. Mr. Marchesiello requested an extension on the loan which was approved by an Amendment to the Agreement. The loan plus interest (4% simple) is due on or before December 30, 2006. The Commission granted an additional extension of 90 days at the request of the Marchesiellos due to project completion delays. The loan has been repaid in full. These units are required to be affordable for fifty -five (55) years. Description of Commission -owned Property CRL Section 33080.1 (a)(2)(f), requires a description of the total number of and nature of properties that the Commission owns and those properties the agency acquired in the 2006 -07 fiscal year. 1) Committee on the Shelterless ( "COTS ") Shared Housing: Address Parcel # Cost of Purchase 7668 Beverly Dr. 143 273 023 000 $168,000 309 Burton Ave. 143 252 005 000 $378,927 7783 Burton Ave. 143 203 001 000 $353,257 746 Brett Avenue 143 271 049 000 $105,312 (Deed in Lieu) 7982 Santa Barbara Dr. 143 073 005 000 $101,534 (Deed in Lieu) COTS is a non - profit service organization, Shared Housing Program which houses single parent families who are transitioning from homelessness to independent living. COTS operates five, four - bedroom, two bathroom transitional houses within the redevelopment project area. Each house accommodates approximately four families. The Commission purchased and/or obtained via Deed in Lieu of Foreclosure these houses for this purpose. The Commission has an agreement allowing COTS to operate the program in each of the homes in Rohnert Park. 2) Senior Center /City Hall Annex: Address Parcel # Cost of Purchase 6800 Hunter Dr $1,523,765 This property consist of a 13,473 square foot building housing Senior Center that includes multi - purpose room for community and senior activities, a full industrial kitchen, dining room, activity /game room, storage rooms and classrooms. The City Hall annex portion is utilized by the City's Finance Department and the Commission and the City current have a lease agreement for the City's use of the building.