HomeMy WebLinkAboutCC 12-02-2025 Item No. 12 Study Session Mary Ave Project_Staff PresentationCC 12-02-2025
#12
Study Session on the
Mary Avenue
Project
Staff Presentation
City Council Study Session
Mary Avenue Project
Michelle Hernandez
Deputy City Attorney
Gian Martire
Senior Planner
Purpose of Study Session
Review History, Status, Legal
Framework, and Next Steps
•Provide direction on next steps
•Appoint negotiator(s)to negotiate either:
1) a Disposition and Development Agreement with
repurchase option or 2) a long-term Ground Lease
•Direct staff to perfect:
Surplus Land Act exemption
Right-of-way vacation, and
Prepare Entitlements for future Council action
•Maintain timeline to support 2026 9%Tax Credit
Application
Recommended Actions
Executive Summary
•5-year effort to develop ELI/IDD housing on
Mary Avenue
•Sole RFP respondent: Rotary Housing,
HousingChoices, and Charities Housing
•$4M+ City financial support; Article 34
allocation received July 2025
•Next approvals: DDA or Ground Lease,SLA
exemption, right-of-way vacation,
entitlements
Project History: 2021 –2022
•2021: Surplus Land Act legal review
•2021–22:PLHA agreements executed
•March 2022: Council directed RFP; parcel
map introduced
•August 2022: RFP circulated;
•October 2022: Site listed in Housing Element
Project History: 2023 –2025
•May 2023: Parcel map recorded
•Feb–Apr 2024: ENA approved and
executed
•May 2024: Housing Element adopted; R4
zoning established
•2024–25: Funding approvals, ASA
application, Article 34 allocation
Project Description
•40-unit 100% affordable special needs
housing project
•At least 45% of units for Intellectually
Developmentally Disabled population
•Affordability: 30–60% AMI
•Two, two-story buildings with a 22-parking
stalls onsite.
•Net lot area -.76 acres
Project Description
Project Description
•Right-of-way modifications necessary
with net loss of 89 parking spaces.
•Parking on westside of Mary Ave. parallel.
•Parking on eastside of Mary Ave. removed.
•Vehicle travel lanes 11-feet in width.
•Maintaining bicycle lanes in both direction,
and adding a sidewalk on westside of Mary
Ave.
Project Description
Financial Status
Independent pro forma review validated
assumptions
•City commitments:
•$1 land conveyance
•$3M BMR loan at 3% interest
•$908K PLHA funds
•$174K CDBG funds
•$2.16M Park Fee Waiver
•Total City Allocation: $4,083,250
Recent Community Outreach
Listening Session #1
July 23, 2024
Listening Session #2
January 28, 2025
Community Open House
September 11, 2025
Current Status
•Architectural Site Approval - objective
standard review underway
•Applicant to submit plans in time to secure
2025 building code requirements
•9% Tax Credit application deadlines:
April 2026
•City actions ideally completed by late
Feb/early March 2026
Legal: Right-of-Way Vacation Process
•Non-summary vacation of right-of-way
required
•Planning Commission reviews
conformity(within 40 days of submission)
•Council hearing after 15-day notice period
•If Council adopts the resolution, it will be
recorded with the County Recorder to
complete the vacation
Legal: Surplus Land Act Compliance
• Property must be declared "surplus"or“
exempt surplus"
• Project has been structured to meet the
exemption criteria under Government Code
§54220(f)(1)(A) or (F)
• Notice to HCD required 30+ days before
disposition
DDA vs. Development Agreement
Disposition and Development Agreement
may be approved by Council resolution
• Development Agreement:
statutory, vests rights, approved by
ordinance
• Disposition and Development Agreement:
contractual, governs property transfer
and obligations
Future Required Actions
• Negotiate and Approve either a DDA or
long-term Ground Lease
• Declare exempt surplus land and file notice
with HCD
• Approve right-of-way vacation
• Approve project entitlements
Rationale for Recommended Action
•Housing Element identifies site as Priority
Housing Site
•Housing Element has Policies & Strategies
that encourage housing for low income and
special needs communities:
•HE-2.3 - Development of Affordable Housing and
Housing for Persons with Special Needs.
•HE-2.3.1 - Support Affordable Housing Development
•HE-2.3.10 - Extremely Low-income Housing
•HE-2.3.11 - Assistance For Persons with Developmental
Disabilities
•Provide direction on next steps
•Appoint negotiator(s)to negotiate either:
1) a Disposition and Development Agreement with
repurchase option or 2) a long-term Ground Lease
•Direct staff to perfect:
Surplus Land Act exemption
Right-of-way vacation, and
Prepare Entitlements for future Council action
•Maintain timeline to support 2026 9%Tax Credit
Application
Recommended Actions
Questions