Title
Adoption of Resolution Authorizing the City Manager to Execute a Cooperation Agreement between Eden Housing, Inc., a California Corporation, and the City of Alameda for Compliance with the Requirements of a Grant Application Under the Affordable Housing and Sustainable Communities Funding Program for the 70-Unit Family Affordable Housing Project on Block 8 within Site A at Alameda Point and for the Cross Alameda Trail Segment along Ralph Appezzato Memorial Parkway. (Base Reuse 819099)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Adoption of Resolution Authorizing the City Manager to Execute a Cooperation Agreement between Eden Housing, Inc., a California Corporation, and the City of Alameda for Compliance with the Requirements of an Application Under the Affordable Housing and Sustainable Communities Funding Program for the 70-Unit Family Affordable Housing Project on Block 8 within Site A at Alameda Point and for the Cross Alameda Trail Segment along Ralph Appezzato Memorial Parkway
BACKGROUND
In June 2015, the City Council unanimously approved the Site A Development Plan and a Disposition and Development Agreement (DDA) with the private developer, Alameda Point Partners (APP), for a 68-acre area within Alameda Point that extends generally from the Main Street entrance of Alameda Point to the eastern edge of the Seaplane Lagoon. Site A includes 800 housing units, 600,000 square feet of commercial development, and extensive parks and utility infrastructure (Site A Project). The Site A Project represents the first major public/private development at Alameda Point since the base closed and lost 18,000 jobs in 1997. It is an important first step toward achieving the community’s vision of a mixed-use transit-oriented development at Alameda Point.
Two hundred (200) of the residential units (25%) at Site A are required to be affordable units. One hundred thirty (130) affordable units will be provided in two projects on Block 8: a family project with 70 units (Family Project), and a senior project with 60 units (Senior Project) (collectively, Block 8 Projects). The moderate-income units will be provided in a teacher housing project with Alameda Unified School District (AUSD) or distributed among the market-rate units in the other buildings provided by APP.
In March 2016, APP assigned the Affordable Housing Implementation Plan approved as part of the DDA to Eden Housing, an affordable housing non-profit, thereby designating Eden Housing as the Qualified Affordable Housing Developer for the development of the low- and very-low income affordable units within Site A consistent with the DDA. Additionally, on October 17, 2017, the City Council approved a ground lease with Eden Housing for the Block 8 Projects to provide direct site control and to allow an infrastructure contingency plan for Eden Housing in order to obtain public financing for both projects.
Eden Housing is a highly qualified nonprofit affordable housing developer that constructs and manages thousands of units of affordable housing throughout the Bay Area. Eden Housing, in coordination with APP, have expended significant staff and financial resources securing financing sources to fund the Block 8 Projects and have been successful at obtaining numerous funding sources. Specifically, Eden Housing is re-applying to the State of California through the Affordable Housing Sustainable Communities (AHSC) program for the Family Project, which must include monies for transportation projects in addition to housing to meet the funding requirements. As a result, City staff is recommending cooperating with Eden Housing on the AHSC funding application for $900,000 in funding for the Cross Alameda Trail segment along Ralph Appezzato Memorial Parkway (CAT RAMP) via a cooperation agreement (Cooperation Agreement).
While Eden Housing is the sole applicant for the AHSC application and would be solely responsible for the housing component of the Family Project, the Cooperation Agreement lays out the terms and conditions of cooperation between Eden Housing and the City for the housing and transportation components of the AHSC Application, respectively. Eden’s AHSC Application would total approximately $7.7 million, including $5.5 million for the Family Project; $900,000 for the City’s CAT RAMP project; and $1.3 million for AC Transit to purchase a new bus for service expansion of Alameda’s Line W Transbay service.
The total budget for the CAT RAMP project is $6.3 million, of which the City has $4.3 million in funding. The $900,000 helps close that funding gap to $1.1 million, which is expected to come from other grant funds or local transportation monies. The following provides a summary of Eden Housing’s current financing plan and commitments for the Family Project:
Block 8 Family Project Financing Plan and Commitments
|
Source of Funds |
Amount |
Status |
|
Land Donation |
$5.1 million |
Committed |
|
Bank Loan |
$4.3 million |
Committed |
|
VASH Voucher Loan |
$3.0 million |
Committed |
|
AHSC State Grant |
$7.7 million |
Apply Fall 2017 |
|
LIHTC Investor Capital |
$14.7 million |
Apply June 2018 |
|
Section 811 Loan |
$3.1 million |
Committed |
|
HCD Infill Infrastructure Grant |
$3.8 million |
Apply Fall 2017 |
|
Measure A1 |
$2.0 million |
Pending Final County Approval |
|
GP Equity |
$3.3 million |
Committed |
|
TOTAL SOURCES |
$47.0 million |
|
A complete copy of the proposed Cooperation Agreement is attached as Exhibit 1.
DISCUSSION
City staff is recommending entering into the Cooperation Agreement to help the City fund the CAT RAMP project and to assist Eden Housing in funding the delivery of 70 units of affordable housing as quickly as possible at Site A. The following provides a summary of the key provisions and implications of the Cooperation Agreement with Eden Housing:
1. Parties: The parties to the Cooperation Agreement are the City of Alameda and Eden Housing.
2. Project: As described above, Eden Housing is obligated to develop 70 units of affordable housing targeted at low- and very-low income households as part of the Family Project at Site A and the City is required to construct the CAT RAMP project.
3. Purpose: The purpose of the Cooperation Agreement is to outline the terms and conditions of cooperation between the City and Eden Housing for including the CAT RAMP project in Eden Housing’s AHSC funding application for the Family Project at Site A. A side agreement between the applicant, Eden Housing, and any provider of transportation improvements to be funded by the AHSC program is required by AHSC to demonstrate that the transportation agency (in this case, the City of Alameda) is obligated to complete the transportation improvements and has sufficient prior experience.
4. Future Cooperation. The Cooperation Agreement contains a provision that the City will cooperate in the future to enter into another agreement with Eden Housing that addresses the specific requirements that arise from investors and funders regarding indemnifying Eden Housing related to the City’s timely completion of the CAT RAMP project, among other potential issues.
As discussed above, City staff recommends approving the Cooperation Agreement with Eden Housing potentially helping to obtain funding for City’s CAT RAMP project and for Eden Housing’s Family Project.
FINANCIAL IMPACT
There is no financial impact to the General Fund or Base Reuse Fund related to this agreement pertaining to the Family Project or CAT RAMP projects. The CAT RAMP project is in the City’s current Fiscal Year (FY) 2017-18 and FY 2018-19 Capital Improvement Program budget (CIP). The award of this grant will help fund $900,000 of the CAT RAMP project. The total budget for the CAT RAMP project is $6.3 million, of which the City has $4.3 million in funding. The $900,000 helps close that funding gap to $1.1 million, which is expected to come from other grant funds or local transportation monies prior to award of a construction contract.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
These actions are consistent with the approved FY17/18, 18/19 CIP, General Plan, Zoning Ordinance, Town Center Plan, MIP, Site A Development Plan, and DDA.
ENVIRONMENTAL REVIEW
On February 4, 2014, the City of Alameda certified the Alameda Point Final EIR in compliance with the California Environmental Quality Act (CEQA). The Final EIR evaluated the environmental impacts of redevelopment and reuse of the lands at Alameda Point consistent with the Town Center Plan, which included Block 8 within Site A. No further review is required.
In accordance with CEQA, the CAT RAMP project is Categorically Exempt under the CEQA Guidelines Section 15301(c) Existing Facilities (Minor alterations to existing facilities including bicycle facilities) and Section 15304 (h) Minor Alterations to Land and the creation of bicycle lanes on existing public rights of way. In accordance with the National Environmental Policy Act, this project is a Categorical Exclusion under 23 Code of Federal Regulations 771.117(c): activity (c)(3) - Construction of bicycle and pedestrian lanes, paths and facilities.
RECOMMENDATION
Adopt a Resolution authorizing the City Manager to execute an Affordable Housing and Sustainable Communities Program Cooperation Agreement between Eden Housing, Inc, a California Corporation, and the City of Alameda for: (1) $5.5 Million in funding for Eden Housing to construct the 70-Unit family affordable housing project on Block 8 within Site A at Alameda Point; and (2) $900,000 in funding for the City to construct the Cross Alameda Trail segment along Ralph Appezzato Memorial Parkway
Respectfully submitted,
Jennifer Ott, Base Reuse and Transportation Planning Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Cooperation Agreement