San Francisco Redevelopment Agency


2009 2008 2007 2006 2005 2004 



118-96508-002                                                                              Agenda Item No.  4 ( e, f, g )

                                                                                                      Meeting of February 17, 2009

 

MEMORANDUM

 

TO:                              Agency Commissioners

 

FROM:                        Fred Blackwell, Executive Director

 

SUBJECT:                  Approving the Relocation Plan for the development of 73 units of affordable rental housing at 6600 Third Street; and adopting the Final Negative Declaration and environmental findings pursuant to the California Environmental Quality Act; Bayview Hunters Point Redevelopment Project Area.

 

                                    Approving the Replacement Housing Plan for the Development of 73 Units of Affordable Rental Housing at 6600 Third Street; Bayview Hunters Point Redevelopment Project Area.

 

Authorizing an Acquisition and Predevelopment Loan with Third and LeConte Associates LP, a California Limited Partnership, in an amount not to exceed $4,887,059 for the development of 73 units of affordable rental housing at 6600 Third Street; Bayview Hunters Point Redevelopment Project Area.

 

EXECUTIVE SUMMARY

 

The Providence Foundation, Citizens Housing Corporation, and Michael Simmons Property Development Inc., (together, the “Sponsors”) have partnered to redevelop the site of the Franciscan Motel at 6600 Third Street (the “Site”) in the Bayview Hunters Point Redevelopment Project Area.  The Sponsors propose to develop 73 units of supportive housing for formerly homeless individuals and families (the “Project”).  To advance the Project the Sponsors are requesting an acquisition and predevelopment loan of $4,887,059.  With approval of this funding request the Sponsors will submit a competitive application for $10,000,000 in funding from the State’s Multifamily Housing Program (“MHP”).

 

As required under the California Environmental Quality Act, a Preliminary Mitigated Negative Declaration was prepared for the proposed Project by the Planning Department of the City and County of San Francisco and published on December 24, 2008.   An Appeal of the Preliminary Negative Declaration was filed within the 20-day comment period on the Negative Declaration.  As a result, the Planning Commission will conduct a public hearing on the Appeal at its meeting on February 12. 2009.  If the Planning Commission denies the Appeal, it will uphold the Preliminary Negative Declaration and adopt it as the Final Negative Declaration.  The Agency Commission can then use the Final Negative Declaration as the basis for its actions.  Absent the Final Negative Declaration from the Planning Commission, approval of this loan will be continued to a future Commission meeting.

 

 

 

Staff recommends adoption of the Mitigated Negative Declaration and environmental findings pursuant to the California Environmental Quality Act and authorization of an Tax Increment Loan Agreement with Third and Le Conte Associate LP in an loan amount not to exceed $4,887,059 for acquisition and predevelopment costs associated with the development of 73 very low income family rental units at 6600 Third Street, approval of a Relocation Plan for the development of the 73 affordable housing units at the 6600 Third Street site, and approval of a Replacement Housing Plan for the 6600 Third Street site; Bayview Hunters Point Redevelopment Project Area.

 

 

BACKGROUND

 

Since 2001, the Providence Foundation (the “Foundation”), the non-profit charitable arm of Providence Baptist Church, has been operating a 125 bed homeless shelter for families and individuals at the church at 1602 McKinnon.  With the completion of Providence Senior Housing, the Foundation’s first housing development, the Board of Directors has focused on developing a second project that would serve homeless households transitioning out of the shelter system. 

 

To embark on its second development the Foundation engaged Michael Simmons Property Development Inc. (MSPDI) as a consultant.  Michael Simmons has nearly 20 years of experience in residential development.  He is the development consultant to SFHDC for the Agency financed homeownership project at 4800 Third Street and is the developer of the Agency owned property at 1345 Turk. With assistance from MSPDI, the Foundation identified the property at 6600 Third Street, commonly known as the Franciscan Motel, as a suitable site for a supportive housing development for formally homeless families and individuals.  The Franciscan Motel is a blighted property that has been an ongoing source of neighborhood disruption.  The demolition of the motel and the redevelopment of the Site into a well designed housing development will not only eliminate the neighborhood of a blighting condition, it will create a one of a kind supportive housing development in the Project Area.

 

Recognizing that the proposed development would likely be financed with low income housing tax credits, MSPDI and the Providence Foundation have partnered with Citizens Housing Corporation (“CHC”), a regional nonprofit housing developer based in San Francisco.  CHC has developed transitional housing, senior and family housing, supportive housing for people with special needs, mixed-use developments, transit oriented developments and renovated HUD Section 8 expiring use properties.  Since 1992, CHC has successfully completed 19 projects that were financed with low income housing tax credits and has continued to serve and the long term owner and operator of these developments.

 

Development Concept

The Sponsors plan to demolish the existing motel and replace it with a new building in a similar configuration along Third and Le Conte.  The unique slope of the site affords an opportunity to build five stories of housing over one story of parking within the 40 foot height limit.  This configuration also allows for an increased density without sacrificing open space:  45 percent of the site is to be retained as open green space.  Under the current preliminary design concept, the building volumes step down in height along Le Conte Avenue, matching the scale of the neighboring residences.

As currently proposed, the new housing will be comprised of 73 affordable units including one manager’s unit.  The unit configuration includes 32 efficiency units for individuals and 33 two-bedroom units (one of which is a manager’s unit) and 8 three-bedroom units for families. The studio units will be stacked in four levels along Third Street.  There will be a 21-car parking garage for staff and residents. The family housing—a mix of two- and three-bedroom units along double-loaded corridors--overlooks either Le Conte Avenue or the large protected yard.  These units will feature covered recessed balconies that provide private outdoor space. The families and single mix reflects the population typically served by shelters and also reflects the desire of the City’s Human Services Agency (“HSA”) to increase the number of supportive housing units for families. HSA will be referring all of the residents to the new housing and will be working with their various access points for resident referrals including the Providence Foundation shelter.  HSA will provide ongoing financial subsidies to the project through the City’s Local Operating Subsidy Program as well as providing a funding for supportive services.

 

Financing Plan

The total development costs for the Project are estimated to be $36,600,000.  The project sponsors are requesting $4,887,059, which is the total permanent subsidy required from the Agency.  The Citywide Loan Committee approved this request on December 19, 2008.  This request is being made at this early stage of development so that the sponsors can successfully compete for $10,000,000 in State Multifamily Housing Program (“MHP”) Funds.  A nine percent tax credit financing structure is proposed for the housing:  approximately $21 million of the development costs will be paid for with tax credit equity.  The balance of the financing for the housing is to be provided through a grant from the Federal Home Loan Bank’s Affordable Housing Program of $511,000, and a Green Communities Grant of $55,000 from the Enterprise Foundation, and deferred developer fee of approximately $145,000.  The housing will serve formally chronically homeless individuals and families earning 10% to 15% of San Francisco median income. 

 

Uses of Agency Funds

 

As detailed in the table, approximately $3 million will be used for acquisition costs, with the balance being used for predevelopment related expenses, such as architecture and engineering fees, due diligence expenses, consultant fees, relocation expenses and legal expenses.

 

 

 

The Relocation Plan

 

Overland, Pacific & Cutler, Inc. (“OPC”) a consulting firm specializing in providing relocation has prepared a Relocation Plan in compliance with statutory requirements, specifically the Uniform Relocation Act and the California Relocation Assistance Law.  The Relocation Plan incorporates the results of an on-site assessment which consisted of direct interviews with project site residents conducted in October of 2008.

At the time OPC completed its assessment thirteen households resided at the 43 room Franciscan Motel, paying $240 per week.  There are 25 individuals, no children and no person over the age of 65 reside at the property.  The household incomes range from very low to low income.  Comprehensive relocation assistance will be provided to each household.  Residents will be eligible for up to forty two (42) months of rental assistance, plus moving expenses.

In addition to any relocation benefits for which the existing tenants may be eligible, all eligible existing tenants will be given residential “G’ Certificates of Preference.  These certificates will give the residents that relocate to private housing priority in the placement of City or Agency supported housing for five years.

Replacement Housing Plan

 

Agency staff has prepared a Replacement Housing Plan to comply with the requirements of California Health and Safety Code Section 33413.5.  Under this Code Section the Agency has an obligation to replace the housing units removed by the Agency or by Agency-assisted action.

 

Because of the deep affordability of the proposed project essential features of the Replacement Housing Plan are:

 

  • The 43 SRO units removed from the Franciscan Motel will be replaced by a 73 unit apartment building;
  • The replacement units will be located on the existing site of the Franciscan Motel in the Bayview Hunters Point Redevelopment Project Area;
  • The affordability level of replacement units will be at or below the affordability level of units removed from the Franciscan Motel to the extent it is financially feasible; and
  • Replacement units will be targeted to the same household size as units removed from the Franciscan.

 

Contract Compliance

 

In March 2008, the Sponsors worked with the Mayor’s Office of Housing and the Human Rights Commission to select its architecture and engineering team. While the City’s procurement procedures and goals are quite different from the Agency, the resulting professional services team includes 37% Agency certified SBEs—which reflects 29% MBE firms and 8% WBE firms. The Sponsors comply with the Agency’s Equal Benefits, Minimum Compensation and Health Care Accountability policies. During the construction phase, the Sponsor will continue to work with staff to make good faith efforts to comply with the Agency’s Small Business Enterprise (SBE) program, Construction Workforce Program and the payment of prevailing wages.

 

Bayview Hunters Point Project Area Committee 

On August 21, 2008, the Bayview Hunters Point Project Area Committee (“PAC”) endorsed the Sponsors funding request of $4.7 million.  After amending the predevelopment budget, on December 8, 2008 the Sponsors returned to the PAC and obtained an endorsement of the current amount requested.  Agency staff also forwarded Draft Replacement Housing Plan to the PAC Housing Committee on January 8, 2009 for review and comment.

 

Next Steps

The single asset partnership that has been formed to own the development and will purchase the property on or around February 20, 2009.  Staff will return to the Commission to present the basic concept design for the Project prior to Planning Department approval, which will be the entitling entity for the Project.  Once the Project is fully entitled, staff will again return to the Commission to seek approval to execute a ground lease prior to the start of construction, currently scheduled for the spring of 2011.

California Environmental Quality Act(“CEQA”)

 

In compliance with CEQA and State CEQA Guidelines, the Planning Department of the City and County of San Francisco completed a Preliminary Negative Declaration for the proposed Project and determined that although it may have possible significant adverse environmental effects, these effects could be precluded or reduced to less than significant levels through implementation of appropriate mitigation measures.  As a result, Agency staff determined that with incorporation of these mitigation measures into the Tax Increment Loan Agreement, the proposed Project, including the associated Relocation Plan and Replacement Housing Plan would not result in any significant impacts not identified in the Preliminary Negative Declaration or any impact identified in the Preliminary Negative Declaration that would be substantially more severe.  An Appeal of the Preliminary Negative Declaration was filed within the 20-day comment period on the Negative Declaration.  As a result, the Planning Commission will conduct a public hearing on the Appeal at its meeting on February 12. 2009.  If the Planning Commission denies the Appeal, it will uphold the Preliminary Negative Declaration and adopt it as the Final Negative Declaration.  The Agency Commission can then use the Final Negative Declaration as the basis for its actions.  Absent the Final Negative Declaration from the Planning Commission, approval of this loan will be continued to a future Commission meeting.

 

 

(Originated by Vanessa Dandridge, Development Specialist)

 

 

 

 

Fred Blackwell

Executive Director

 

 

Attachment:    1.         Loan Evaluation, 6600 Third Street, December 19, 2008

                       2.         Replacement Housing Plan

                       3.         Draft Relocation Plan

                       4.         Final Negative Declaration

 


 

 

RESOLUTION NO. 20-2009

 

 

 

APPROVING THE RELOCATION PLAN FOR THE DEVELOPMENT OF 73 UNITS OF AFFORDABLE RENTAL HOUSING AT 6600 THIRD STREET;

AND ADOPTING THE FINAL NEGATIVE DECLARATION AND ENVIRONMENTAL FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT; BAYVIEW HUNTERS POINT REDEVELOPMENT PROJECT AREA

 

 

BASIS FOR RESOLUTION

 

1.         In furtherance of the objectives of the California Community Redevelopment Law (Health and Safety Code, Section 33000 et seq., the “Law”), the Redevelopment Agency of the City and County of San Francisco (the “Agency”) undertakes programs for the reconstruction and construction of slums and blighted areas in the City and County of San Francisco (the “City”).

 

2.         On January 20, 1969, by Ordinance No. 25-69, the Board of Supervisors of the City (the “Board of Supervisors”) adopted the Hunters Point Redevelopment Project Area in response to community concern over the physical and economic decline in the community.

 

3.         On February 10, 1997, the Board of Supervisors certified the election of the Bayview Hunters Point Project Area Committee (the “PAC”).  The PAC worked with Agency staff to develop the Bayview Hunters Point Community Revitalization Concept Plan (the “Concept Plan”).  The PAC adopted the Concept Plan at its regular meeting in November 2000.  In 2004, the PAC completed the Framework Housing Program that described an array of affordable housing programs and policies supported by the PAC.

 

4.         On May 16, 2006, by Ordinance No. 13-06, the Board of Supervisors adopted the Bayview Hunters Point Redevelopment Project Area (the “Project Area”), which expanded the original Hunters Point Redevelopment Project Area in order to undertake a variety of projects and activities to alleviate blighting conditions in the greater Bayview neighborhood.

 

5.         The Franciscan Motel, at 6600 Third Street (the “Site”), is a blighted property and has been an ongoing source of neighborhood disruption in the Project Area.

 

6.         The Providence Foundation, Citizens Housing Corporation (“CHC”), and Michael Simmons Property Development Inc. (the “Sponsors”) have identified the property as a suitable site for a 73-unit supportive housing development for formally homeless families and individuals (the “Project”).

 

7.         The proposed Project conforms to the Framework Housing Program and will create a one of a kind supportive housing development in the Project Area.

 

8.         The Sponsors have submitted a request for acquisition and predevelopment funding to the Agency for the purpose of developing the Project at the Site.

 

9.         Pursuant to Section 33415 of the Law, the Agency must provide for relocation assistance to the tenants displaced by Agency actions.  As part of this requirement, the Agency must prepare a relocation plan (the “Plan”), describing how it will meet its relocation assistance obligations in assisting in the development of the Site.  Agency Commission approval of the Plan is required prior to proceeding with any phase of the Project which will result in displacement.

 

10.       An Agency consultant has prepared a Plan to comply with the Law’s requirements.  The Plan includes the following major provisions:  (1) residential tenants will receive a moving allowance, security deposit, and assistance for 42 months for the difference between 30% of household income and actual new rent plus utility allowance and; (2) an appeals process has been developed and will be implemented.

 

11.       The Plan was publicly noticed and was presented to the PAC.

 

12.       The Agency now wishes to approve the Plan and the associated relocation budget.

 

13.       A Preliminary Negative Declaration was prepared pursuant to the California Environmental Quality Act (“CEQA”) for the proposed Project by the City Planning Department (the “Planning Department”) and published on December 24, 2008.  An Appeal of the Preliminary Negative Declaration was filed, and therefore, the Planning Commission will conduct a public hearing on the Appeal at its meeting on February 12, 2009.  If the Planning Commission denies the Appeal, it will uphold the Preliminary Negative Declaration and adopt it as the Final Negative Declaration.

 

14.       The Preliminary Negative Declaration describes the proposed Project, assesses potential environmental impacts of the proposed Project, and identifies mitigation measures to preclude significant impacts or reduce such impacts to less than significant levels.  The proposed mitigation measures in the Preliminary Negative Declaration have also been incorporated into the Tax Increment Loan Agreement for the Project.  Agency staff considers the Plan to be necessary to, and therefore, part of the proposed Project.

 

15.       Based on the Agency’s independent review of the Preliminary Negative Declaration and all available information regarding the Project, the Agency finds that the proposed Project is consistent with the project description contained in the Preliminary Negative Declaration and would not result in any significant impacts not identified in the Preliminary Negative Declaration or any impact identified in the Preliminary Negative Declaration that would be substantially more severe.

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco as follows:

 

  1. It has reviewed the Preliminary Negative Declaration and finds that the Preliminary Negative Declaration reflects the independent judgment and analysis of the Agency and adopts the Preliminary Negative Declaration as a Final Negative Declaration, finding it to be adequate and prepared in accordance with CEQA, subject to the Planning Commission action on February 12, 2009, to uphold the Preliminary Negative Declaration; and

 

  1. The Executive Director is authorized to approve the Relocation Plan for the Franciscan Motel, substantially in the form lodged with the Agency General Counsel.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel


 

 

RESOLUTION NO. 21-2009

 

 

 

APPROVING THE REPLACEMENT HOUSING PLAN FOR THE DEVELOPMENT OF 73 UNITS OF AFFORDABLE RENTAL

HOUSING AT 6600 THIRD STREET; BAYVIEW HUNTERS POINT

REDEVELOPMENT PROJECT AREA

 

 

BASIS FOR RESOLUTION

 

1.         In furtherance of the objectives of the California Community Redevelopment Law (Health and Safety Code, Section 33000 et seq.), the Redevelopment Agency of the City and County of San Francisco (the “Agency”) undertakes programs for the reconstruction and construction of slums and blighted areas in the City and County of San Francisco (the “City”).

 

2.         On January 20, 1969, by Ordinance No. 25-69, the Board of Supervisors of the City (the “Board of Supervisors”) adopted the Hunters Point Redevelopment Project Area in response to community concern over the physical and economic decline in the community.

 

3.         On February 10, 1997, the Board of Supervisors certified the election of the Bayview Hunters Point Project Area Committee (the “PAC”).  The PAC worked with Agency staff to develop the Bayview Hunters Point Community Revitalization Concept Plan (the “Concept Plan”).  The PAC adopted the Concept Plan at its regular meeting in November 2000.  In 2004, the PAC completed the Framework Housing Program that described an array of affordable housing programs and policies supported by the PAC.

 

4.         On May 16, 2006, by Ordinance No. 13-06, the Board of Supervisors adopted the Bayview Hunters Point Redevelopment Project Area (the “Project Area”), which expanded the original Hunters Point Redevelopment Project Area in order to undertake a variety of projects and activities to alleviate blighting conditions in the greater Bayview neighborhood.

 

5.         The Franciscan Motel, at 6600 Third Street (the “Site”), is a blighted property and has been an ongoing source of neighborhood disruption in the Project Area.

 

6.         The Providence Foundation, Citizens Housing Corporation (“CHC”), and Michael Simmons Property Development Inc. (the “Sponsors”) have identified the property as a suitable site for a 73-unit supportive housing development for formally homeless families and individuals (the “Project”).

 

7.         The proposed Project conforms to the Framework Housing Program and will create a one of a kind supportive housing development in the Project Area.

  1. The Sponsors have submitted a request for acquisition and predevelopment funding to the Agency for the purpose of developing the Project at the Site.

 

  1. Under Section 33413 of the California Health and Safety Code (the “Code”), the Agency must provide for the replacement of these housing units with comparable units for low- or moderate-income persons within four years.

 

  1. Under Section 33413.5 of the Code, the Agency must prepare a replacement plan describing how it will meet its replacement housing obligations in assisting in the redevelopment of the Site at least 30 days prior to executing an agreement providing for the funding of the rehabilitation which will result in the removal of the units.

 

  1. Agency staff has prepared a Replacement Housing Plan (the “Plan”) to comply with these requirements, the essential features of which include:  units removed from the Franciscan Motel will be replaced by newly constructed units; replacement units will be located on the existing site of the Franciscan Motel in the Project Area; the affordability level of replacement units will be at or below the affordability level of units removed from the Franciscan Motel to the extent it is financially feasible; and, replacement units will be targeted to the same household size as units removed from the Franciscan Motel.

 

  1. The Plan would provide for replacement housing facilities that exceed state law requirements, and the Plan was developed after consultation with the PAC.

 

  1. In Resolution No. 20-2009, the Agency adopted the Final Negative Declaration prepared for the proposed Project by the City Planning Department, finding that it reflected the independent judgment and analysis of the Agency, and was adequate and prepared in accordance with the California Environmental Quality Act.  Agency staff considers the Plan to be necessary to, and therefore, part of the proposed Project.

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Replacement Housing Plan for the Franciscan Motel prepared as described above and lodged with the Agency General Counsel is hereby approved.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel


 

 

RESOLUTION NO. 22-2009

 

 

 

AUTHORIZING AN ACQUISITION AND PREDEVELOPMENT LOAN WITH THIRD AND LECONTE ASSOCIATES LP, A CALIFORNIA LIMITED PARTNERSHIP, IN AN AMOUNT NOT TO EXCEED $4,887,059 FOR THE DEVELOPMENT OF 73 UNITS OF AFFORDABLE RENTAL HOUSING AT 6600 THIRD STREET; BAYVIEW HUNTERS POINT REDEVELOPMENT PROJECT AREA

 

 

BASIS FOR RESOLUTION

 

1.         In furtherance of the objectives of the California Community Redevelopment Law (Health and Safety Code, Section 33000 et seq.), the Redevelopment Agency of the City and County of San Francisco (the “Agency”) undertakes programs for the reconstruction and construction of slums and blighted areas in the City and County of San Francisco (the “City”).

 

2.         On January 20, 1969, by Ordinance No. 25-69, the Board of Supervisors of the City (the “Board of Supervisors”) adopted the Hunters Point Redevelopment Project Area in response to community concern over the physical and economic decline in the community.

 

3.         On February 10, 1997, the Board of Supervisors certified the election of the Bayview Hunters Point Project Area Committee (the “PAC”).  The PAC worked with Agency staff to develop the Bayview Hunters Point Community Revitalization Concept Plan (the “Concept Plan”).  The PAC adopted the Concept Plan at its regular meeting in November 2000.  In 2004, the PAC completed the Framework Housing Program that described an array of affordable housing programs and policies supported by the PAC.

 

4.         On May 16, 2006, by Ordinance No. 13-06, the Board of Supervisors adopted the Bayview Hunters Point Redevelopment Project Area (the “Project Area”), which expanded the original Hunters Point Redevelopment Project Area in order to undertake a variety of projects and activities to alleviate blighting conditions in the greater Bayview neighborhood.

 

5.         The Franciscan Motel, at 6600 Third Street (the “Site”), is a blighted property and has been an ongoing source of neighborhood disruption in the Project Area.

 

6.         The Providence Foundation, Citizens Housing Corporation (“CHC”), and Michael Simmons Property Development Inc. (the “Sponsors”) have identified the property as a suitable site for a 73-unit supportive housing development for formally homeless families and individuals (the “Project”).

 

7.         The proposed Project conforms to the Framework Housing Program and will create a one of a kind supportive housing development in the Project Area.

 

8.         The Sponsors have submitted a request for acquisition and predevelopment funding to the Agency for the purpose of developing the Project at the Site.

 

9.         On August 21, 2008, the Sponsors described the Project to the PAC who voted to endorse the Sponsors’ loan request to the Agency.

 

10.       On December 8, 2008, the Sponsors presented an amended budget request to the PAC Housing and Economic Development Committee which unanimously passed a motion to endorse the revised request.

 

11.       The Citywide Affordable Housing Loan Committee reviewed Agency staff’s evaluation of the request for funding at its meeting of December 19, 2008, and recommended that the Agency Commission enter into a Tax Increment Loan Agreement with the Sponsors in an amount not to exceed $4,887,059.

 

12.       The Providence Foundation and CHC will be the managing general partners in Third and Le Conte Associates LP, a California limited partnership, that will own the Project.

 

13.       In Resolution No. 20-2009, the Agency adopted the Final Negative Declaration prepared for the proposed Project by the City Planning Department, finding that it reflected the independent judgment and analysis of the Agency, and was adequate and prepared in accordance with the California Environmental Quality Act.

 

 

RESOLUTION

 

ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to execute a Tax Increment Loan Agreement in an amount not to exceed $4,887,059 with Third and Le Conte Associates LP, a California limited partnership, for the development of 73 very low-income supportive housing units at 6600 Third Street, substantially in the form lodged with the Agency General Counsel.

 

 

APPROVED AS TO FORM:

 

 

 

_________________________

James B. Morales

Agency General Counsel