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2000-05-02 Joint CC CIC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL AND COMMUNITY IMPROVEMENT COMMISSION MEETING TUESDAY- -MAY 2, 2000- -7:40 P.M. Mayor /Chair Appezzato convened the Joint Meeting at 7:58 p.m. ROLL CALL - Present: Councilmembers /Commissioners Daysog, DeWitt, Johnson, Kerr and Mayor /Chair Appezzato - 5. Absent: None. MINUTES (CC 00 -228) (CIC 00 -13) Minutes of the Special Joint City Council and Community Improvement Commission Meeting of April 18, 2000. Approved. Vice Mayor /Commissioner Daysog moved approval of the Minutes. Councilmember /Commissioner Johnson seconded the motion, which carried by unanimous voice vote - 5. AGENDA ITEM (CC 00 -229) (CIC 00 -14) Recommendation to approve a Loan to the Alameda Development Corporation (ADC) in the amount of $280,000 in HOME Funds and $260,000 in Business and Waterfront Improvement Project Housing Funds for the development of up to Nine Units of Workforce Ownership Housing at 620 Buena Vista Avenue. Peggy Doherty, Renewed HOPE, stated Renewed HOPE has been advocating for workforce housing for almost two years and supports the project; the ADC's mission is the same as Renewed HOPE's mission, which is to provide safe, affordable housing to current Alameda residents; the construction costs of $285,000 per unit appears quite high for the type of construction; perhaps construction costs could be brought down, which would bring the cost per house down; the sales price of four homes is $265,000, which is close to out of the affordable range; more homes should be targeted for the 800 of the median population, which would sell for $195,000; more homes at said price would be a welcome addition to Alameda's housing stock; additional funds are available from the Federal Home Loan Bank Board for this type of housing; Renewed HOPE supports the development of any affordable housing which can be created in Alameda; 65 similar packages will have to be put together in order to replace the 590 East Housing units; inquired whether ADC Board Members would comment on the viability of East Special Joint Meeting Alameda City Council and 1 Community Improvement Commission May 2, 2000 Housing for workforce housing. William Smith, Alameda, stated eight or nine units [of workforce housing] are sorely needed; inquired whether the ADC will play a role in bringing the City of Alameda closer to meeting its Association of Bay Area Governments (ABAG) goal for housing [for families with income] in the range of $30,000 to $70,000. Mayor /Chair Appezzato introduced the ADC Board. Gregg Fujita, President, Alameda Development Corporation, stated ADC was incorporated in February and entered into its first contract of land purchase at 620 Buena Vista Avenue in March; ADC's goal is to provide more affordable housing opportunities in Alameda; the project provides at least 8 units of affordable housing homeownership; ADC met with the architects and came up with the proposal, which is conceptual; encouraged public input; stated the project was put together in 60 days. Mayor /Chair Appezzato stated as the project progresses, it will be refined; thanked ADC Board. Councilmember /Commissioner DeWitt stated the drawings are conceptual; however, the construction cost of $285,000 per unit seems high; inquired whether the matter would be reviewed. Mr. Fujita responded $285,000 is the total development cost, including land; a land -trust ownership model is proposed; ADC is under contract for the $355,000 cost of the land. The Housing Development Manager stated it is expensive to build housing today; the purchase price is around $18 per square foot; the staff report Attachment 1 includes anticipated sales prices; four units will be sold at $265,000; three units will be at $195,000; and one at $95,000; the units will be approximately 1500 square feet, two bedroom homes; money could be saved if the size of units were reduced or if there is an efficient construction process; the proforma is very prudent; 300 of the budget is in contingencies; staff felt bound to present a proposal that can work; 9 units, rather than 8, can be developed to reduce the total development cost. Councilmember /Commissioner DeWitt inquired whether one unit will cost $95,000, to which the Housing Development Manager responded in the affirmative, and stated one unit is priced to be affordable at 500 of median [income]. Councilmember /Commissioner DeWitt stated the units appear to be the Special Joint Meeting Alameda City Council and 2 Community Improvement Commission May 2, 2000 same in drawings; inquired whether the same unit would be sold for $95,000, $195,000 and $265,000. The Housing Development Manager responded in the affirmative; stated one unit will be $95,000, three will be $195,000 and four units will be $265,000; all units will be eligible to use the City's first -time home buyer programs; cost to the buyers could be lower than proposed prices. Councilmember /Commissioner DeWitt stated the 8 units will be alike, however, prices will differ; inquired whether units being sold for $265,000 are affordable. The Housing Development Manager stated that at $265,000, units should be affordable for a family with income around $60,000 per year. Councilmember /Commissioner Johnson inquired what the selection process would be, to which the Housing Development Manager responded the units will not have to be marketed; the housing situation is difficult right now; the ADC Board will have to address the challenge; perhaps a lottery could be involved. Mayor /Chair Appezzato stated first choice should go to Alamedans. Councilmember /Commissioner DeWitt stated two lots are being used for 8 units; inquired how close together the units would be; stated it appears to be five feet. The Housing Development Manager close; the more units on a site, the schematic presented, the approximately 10 feet. responded the units are pretty the lower development costs; in space between the units is Mayor /Chair Appezzato stated putting four houses on the lots would be costly. Councilmember /Commissioner DeWitt stated if houses are stacked in like pancakes, it does not keep with the design of the City and the configuration of homes in traditional Alameda neighborhoods; there should be daylight between houses; that he is not in favor of putting nine units on the two lot parcel. Councilmember /Commissioner Kerr inquired the total area of the two lots, to which Mr. Fujita responded 19,000 square feet. Councilmember /Commissioner Kerr stated there should be attention to landscaping, e.g. trees and lawns. Special Joint Meeting Alameda City Council and 3 Community Improvement Commission May 2, 2000 Mr. Fujita responded concern [over landscaping] was raised at an ADC Board Meeting; there will be green area; the Board asked for 8 units as a concept, even though 9 units might be more economically feasible; green spaces and playground areas are important. Councilmember /Commissioner Johnson stated townhouses at Bay Farm Island have had problems with flat roofs; said matter should be considered; Walnut Creek provided affordable housing without setting up a corporation, the units sold for affordable prices and were sold at market -rate two years later. Vice Mayor /Commissioner Daysog stated the project is a great example of workforce housing with a mix of income levels; the Ad Hoc Homeownership Committee, Housing Forum and Economic Development Strategic Plan show workforce housing is on the minds of Alamedans; the City of Alameda is responding to concerns raised at the grassroots; challenges can be met in developing more workforce housing; in Alameda, moderate - income is defined as a family of four with an income of $55,000 to $75,000; ABAG calculated Alameda needs 430 [moderate- income units]; however, the City estimates only 131 units can be planned; the entire amount [430] cannot be completed because of the lack of available financing, infrastructure costs of Base conversion, and other legislative issues; the Housing Forum or Economic Development Strategic Plan Task Force (EDSPTF) should discuss inclusionary housing City -wide, rather than just redevelopment areas; housing can be developed on Bay Farm; on an empty lot by Versailles Avenue, 15 units could be developed; perhaps an ordinance could require developers to set aside 15% for moderate - income housing in said areas; there are inclusionary rules for redevelopment areas; however, there should be conversation about having City -wide inclusionary moderate - income housing to come close to 430 [ABAG's goal for moderate - income units]. Mayor /Chair Appezzato inquired whether Vice Mayor /Commissioner Daysog was making a motion to approve the staff recommendation. Vice Mayor /Commissioner Daysog stated that he would like to add that [discussion of City -wide inclusionary moderate - income housing]. Mayor /Chair Appezzato inquired whether the motion was for the agenda item [staff recommendation]. Vice Mayor /Commissioner Daysog stated that he would move the agenda item [approval of the staff recommendation]. Councilmember /Commissioner Johnson seconded the motion. Special Joint Meeting Alameda City Council and 4 Community Improvement Commission May 2, 2000 Under discussion, Councilmember /Commissioner DeWitt stated ABAG has projected the amount of workforce housing the City needs for the next 6 years; 437 workforce units are needed for the City of Alameda based on population and job growth; Renewed HOPE is requesting 580 units [of workforce housing] which would mean Alameda is building workforce housing for people in other cities; if Alameda meets the 437 [workforce units], the City will be served; the City projects 131 units can be completed; if the City can create 206 more units, the State and ABAG requirements will be met. Mayor /Chair Appezzato noted ABAG's number may change. Vice Mayor /Commissioner Daysog clarified the motion; stated the motion is to: 1) approve the staff recommendation, and 2) to encourage the Housing Forum, or any other so interested group, like to Economic Development Strategic Plan Task Force (EDSPTF), to discuss a city -wide inclusionary ordinance for moderate - income housing. Mayor /Chair Appezzato inquired whether Councilmember /Commissioner Johnson seconded said motion. Councilmember /Commissioner Johnson seconded the clarified motion. Councilmember /Commissioner Kerr stated that she is concerned about adding investigation into an ordinance at a meeting where no such concept was on the agenda; that she supports the motion to lend the money [approve staff recommendation]; however, she does not want to expand the motion to review of an ordinance because there was not a clue that the matter would be discussed tonight. Vice Mayor /Commissioner Daysog stated the motion is to have the Housing Forum or the EDSPTF address the matter and convey its thoughts back to Council; legislation should require a set -aside for moderate - income housing for developments outside redevelopment areas. Mayor /Chair Appezzato inquired whether Vice Mayor /Commissioner Daysog would like someone to draft legislation or discuss the issue. Vice Mayor /Commissioner Daysog stated the Housing Forum, Economic Development Commission (EDC) or Alameda Development Corporation should discuss the matter first, including the pros and cons; an ordinance may not work or be the best solution. Mayor /Chair Appezzato stated the matter should be made part of Special Joint Meeting Alameda City Council and 5 Community Improvement Commission May 2, 2000 discussions; before going forward with an ordinance, the matter should return to Council. The City Manager stated the final draft of the Economic Development Strategic Plan (EDSP) is scheduled to be considered by the EDC. The Deputy City Manager stated the matter will be addressed at the EDC's May meeting and should be presented to Council the following month. The City Manager stated the Task Force has completed most of its work; there is an affordable housing component to the EDSP; there might not be sufficient time for the EDSPTF and the EDC to address the matter; however, there is time for the Housing Forum to consider the matter, which might be a proper venue. Mayor /Chair Appezzato stated Vice Mayor /Commissioner Daysog is not suggesting the EDSP be held up. Vice Mayor /Commissioner Daysog stated discussion should be limited to the Housing Forum; [EDC] Chair Matarrese and his colleagues can attend the Housing Forum to voice their opinions. Mr. Fujita stated that he is a member of the Housing Forum and will broach the subject. Mayor /Chair Appezzato requested the motion be restated. Vice Mayor /Commissioner Daysog stated the public should start talking about a city -wide inclusionary; said matter does not have to adamantly be part of a motion. Councilmember /Commissioner Johnson stated that she had seconded the motion [to: 1) approve the staff recommendation, and 2) to encourage the Housing Forum to discuss a city -wide inclusionary ordinance for moderate - income housing], because the matter can be addressed by the Housing Forum. Vice Mayor /Commissioner Daysog stated the motion would remain as amended and seconded. Councilmember /Commissioner Johnson stated when the City reviews housing locations, transit issues should be considered because it is very helpful to have housing, especially higher- density housing, be served by transit. Vice Mayor /Commissioner Daysog clarified the motion is to: 1) approve the staff recommendation, and 2) to encourage the Housing Special Joint Meeting Alameda City Council and 6 Community Improvement Commission May 2, 2000 Forum to discuss and report back issues of City -wide inclusionary housing for moderate - income. Councilmember /Commissioner Kerr inquired whether the motion could be broken up into two motions, because she would like to support the motion to approve the staff recommendation. Mayor /Chair Appezzato inquired whether the motion can be broken down, to which the City Attorney responded in the affirmative. Councilmember Johnson seconded the motion. Under discussion, Mayor /Chair Appezzato stated everyone in Alameda realizes the price of real estate is high; there are not many vacant lots; Marina Village and Harbor Bay developments were nicely done and meet aesthetics of Alameda. On the call for the question, the motion to approve the staff recommendation carried by unanimous voice vote - 5. On the call for the question, the motion to encourage the Housing Forum to discuss and report back issues of city -wide inclusionary housing for moderate - income carried by the following voice vote: Ayes: Councilmembers /Commissioners Daysog, DeWitt, Johnson, and Mayor /Chair Appezzato - 4. Noes: Councilmember/ Commissioner Kerr - l. The City Attorney /Legal Counsel stated there are two items in the staff recommendation; one as the City Council and one as the Community Improvement Commission; it would be helpful to determine that the past action was as City Council and an identical motion by the Community Improvement Commission. By consensus, the motion that actions were also taken as the Community Improvement Commission carried by unanimous voice vote - 5. ADJOURNMENT There being no further business, Mayor /Chair Appezzato adjourned the Special Meeting at 8:33 p.m. Respectfully submitted, Diane B. Felsch, CMC City Clerk Special Joint Meeting Alameda City Council and % Community Improvement Commission May 2, 2000 Secretary, Community Improvement Commission The Agenda for this meeting was posted in accordance with the Brown Act. Special Joint Meeting Alameda City Council and Community Improvement Commission May 2, 2000