Title
SUMMARY: Land Transfers Among Various Parties Relating to North Housing Site Generally Bounded by Main Street, Singleton Avenue, Mosley Avenue and Bette Street
Introduction of Ordinance Authorizing the Acting City Manager to: (I) Grant an Approximately .67-Acre Easement to CP VI Admirals Cove, LLC, a Delaware Limited Liability Company (“Carmel”) for Softscape Improvements Within an Approximately 5.3-Acre Roadway Dedication in the North Housing Site (Generally Bounded by Main Street, Singleton Avenue, Mosley Avenue and Bette Street) in Exchange for Fee Title to Approximately .29-Acre Parcel from Carmel Needed to Complete the Singleton Avenue Extension; and (II) Execute Any and All Ancillary Documents and to Perform Any and All Acts Necessary or Desirable to Consummate the Transaction. [Requires Four Affirmative Votes];
Introduction of Ordinance Authorizing the Acting City Manager to: (I) Accept at No Cost an Approximately 5.3 Acre Roadway Dedication from the U.S. Navy; (II) Accept at No Cost an Approximately 12-Acre Site from the U.S. Navy and Transfer by Quitclaim Deed a Portion Thereof at No Cost to the Housing Authority of the City of Alameda in the North Housing Site (Generally Bounded by Main Street, Singleton Avenue, Mosley Avenue and Bette Street), and (III) Execute Any and All Ancillary Documents and to Perform Any and All Acts Necessary or Desirable to Consummate the Transaction. [Requires Four Affirmative Votes]; and
Introduction of Ordinance Authorizing the Acting City Manager to: (I) Quitclaim a .26-Acre of Real Property to CP VI Admirals Cove, LLC, a Delaware Limited Liability Company (“Carmel”) as Consideration for Demolition of the Existing Improvements on the Future Singleton Avenue Extension; and (II) Execute Any and All Ancillary Documents and to Perform Any and All Acts Necessary or Desirable to Consummate the Transaction. [Requires Four Affirmative Votes] (City Attorney)
Body
To: Honorable Mayor and Members of the City Council
From: Elizabeth D. Warmerdam, Acting City Manager
Re: Introduction of Ordinance Authorizing the Acting City Manager to: (I) Grant an Approximately .67-Acre Easement to CP VI Admirals Cove, LLC, a Delaware Limited Liability Company (“Carmel”) for Softscape Improvements Within an Approximately 5.3-Acre Roadway Dedication in the North Housing Site (Generally Bounded by Main Street, Singleton Avenue, Mosley Avenue and Bette Street) in Exchange for Fee Title to Approximately .29-Acre Parcel from Carmel Needed to Complete the Singleton Avenue Extension; and (II) Execute Any and All Ancillary Documents and to Perform Any and All Acts Necessary or Desirable to Consummate the Transaction;
Introduction of Ordinance Authorizing the Acting City Manager to: (I) Accept at No Cost an Approximately 5.3 Acre Roadway Dedication from the U.S. Navy; (II) Accept at No Cost an Approximately 12-Acre Site from the U.S. Navy and Transfer by Quitclaim Deed a Portion Thereof at No Cost to the Housing Authority of the City of Alameda in the North Housing Site (Generally Bounded by Main Street, Singleton Avenue, Mosley Avenue and Bette Street), and (III) Execute Any and All Ancillary Documents and to Perform Any and All Acts Necessary or Desirable to Consummate the Transaction; and
Introduction of Ordinance Authorizing the Acting City Manager to: (I) Quitclaim a .26-Acre of Real Property to CP VI Admirals Cove, LLC, a Delaware Limited Liability Company (“Carmel”) as Consideration for Demolition of the Existing Improvements on the Future Singleton Avenue Extension; and (II) Execute Any and All Ancillary Documents and to Perform Any and All Acts Necessary or Desirable to Consummate the Transaction
BACKGROUND
On January 2, 2018, the City Council introduced an ordinance amending the Zoning Ordinance to remove the Government (“G”) Overlay designation on the North Housing property bounded by Main Street, Singleton Avenue, Mosley Avenue, and Bette Street. A map of North Housing is attached as Exhibit 1. The G Overlay was placed on the property due to Federal ownership of the land. In 2007, the Navy declared the property surplus and began the process to transition the property to civilian reuse. The City conducted the federally mandated screening process which resulted in:
• A Public Benefit Conveyance to the City of Alameda of Estuary Park;
• Approval of a 2012 Legally Binding Agreement (LBA) between the City, Housing Authority of the City of Alameda (Housing Authority), Alameda Point Collaborative (APC) and Building Futures with Women and Children (BFWC) for a 12.3-acre, 90-unit homeless accommodation; and
• A Self-Help Housing Conveyance of two acres to Habitat for Humanity.
Following the screening process, in February 2017, the federal General Services Administration (“GSA”), conducted a public auction for the remaining 14.9 acres. CP VI Admirals Cove, LLC (“Carmel Partners”) was the successful bidder.
The City Council’s action to remove the G Overlay designation will be effective when the Federal government transfers ownership of the property to each of the entities described above (the G Overlay at Estuary Park was removed in 2010, and the property was rezoned Open Space). In an additional action on January 2, the City Council authorized the City Manager to negotiate and execute a Memorandum of Understanding (“MOU”) with Carmel Partners for construction of infrastructure pursuant to the 2009 Amended NAS Alameda Community Reuse Plan (“Reuse Plan”). The MOU was executed on March 30, 2018, and is attached as Exhibit 2.
Staff is requesting that the City Council introduce three ordinances that implement various sections of the MOU as well as permit the acceptance of the 12.3-acre Housing Authority parcel and backbone roads from the Navy to the City and the conveyance of the Housing Authority parcel from the City to the Housing Authority.
DISCUSSION
The City Charter requires that the City Council approve any action to acquire or convey real property by ordinance with a super-majority vote (four votes required). In order to implement the North Housing MOU, as well as the 2012 LBA, the City Council must approve a series of land transactions. These land transactions are described in three ordinances that are before the City Council for its consideration.
Summary of Ordinances
1. An ordinance accepting a 12.3-Acre Housing Authority parcel and backbone roads from the Navy to the City and the conveyance of the Housing Authority parcel from the City to the Housing Authority
In 2008, as part of the federally mandated screening process related to the disposition of North Housing, the City Council approved an application by the Housing Authority, APC and BFWC for a 12.3-acre homeless accommodation. The homeless accommodation was approved by the Navy and the Housing and Urban Development Department (HUD), and in 2012, the City Council approved a LBA with the Housing Authority, APC and BFWC. The LBA contains the rights and responsibilities of the parties regarding the land conveyance for 90 units of permanent supportive housing for homeless individuals and families. As required by law, the LBA specifies that the property will be transferred from the federal government to the City, as the Local Reuse Authority (LRA), and subsequently conveyed to the Housing Authority. The Housing Authority and its partners have various performance milestones that must be met under the LBA. While the LBA has been approved by all parties, in order for the City to accept land from the federal government and convey property to Housing Authority, the Council must adopt an ordinance authorizing acceptance of the land from the Navy and the subsequent conveyance of the property to the Housing Authority.
In addition to the land conveyance for the homeless accommodation, the Navy proposes to convey 5.3 acres of roadways (Exhibit 4 of the MOU). Singleton and Mosley Avenues are existing roadways at a portion of North Housing. The Reuse Plan designates both of those roads as backbone streets that are to be connected through the North Housing parcel to Singleton and Mosley Avenues at Alameda Landing to continue the street grid pattern that is an important feature of Alameda neighborhoods throughout the City. The first ordinance would permit the City to accept the 5.3-acre roadway dedication from the Navy.
2. An ordinance granting a 0.67-acre easement to Carmel Partners within the 5.3-acre roadway in exchange for 12,750 square foot of real property to complete Singleton Avenue
Carmel Partners proposes to renovate 146 existing units on 14.9-acre parcel it is purchasing from the federal government. The Reuse Plan contemplated that, rather than the rehabilitation of existing units, the units would be demolished and new units would be constructed. New construction would trigger infrastructure obligations, including new streets built to City standards. Reuse of existing improvements does not trigger the same infrastructure obligations. Because Carmel Partners proposed a rehabilitation project, it was agreed that a MOU spelling out Carmel Partners’ responsibilities under the Reuse Plan would best meet the City’s, Housing Authority’s and Carmel Partners’ needs relative to the overall redevelopment of North Housing.
The 5.3-acre conveyance for backbone roads provides enough land for Singleton and Mosley Avenues to be built to City standards should the property be redeveloped with new residential units in the future. However, the existing roads are narrower than the land area being conveyed to the City and there are existing softscape improvements (landscaping, yard areas, etc.) that will be on City property following the roadway conveyance from the Navy (Exhibit 5A of the MOU). Therefore, the MOU stipulates that staff will request that the City Council adopt an ordinance granting a 0.67-acre easement to Carmel Partners within the 5.3-acre roadway land so that the softscape improvements can remain in place and be maintained at Carmel Partners’ expense as long as the property continues to be used as contemplated under the MOU. Should Carmel Partners, or a subsequent owner, demolish the existing improvements and build new residential units, the easement would be extinguished and the new project would be required to build backbone roads to City standards. In exchange for the 0.67-acre easement, Carmel Partners has agreed to convey 12,750 square feet of land in the southeast corner of its property to complete the Singleton Avenue extension to the City (Exhibit 5B of the MOU). Carmel will construct the roadway on this land.
3. An ordinance conveying 11,507 square feet of real property to Carmel Partners in exchange for Carmel Partners demolishing certain improvements related to the construction of Singleton Avenue
As noted above, the City will receive 12.3 acres of land at North Housing for conveyance to the Housing Authority. Prior to conveying the land to the Housing Authority, the MOU contemplates that the City will create an 11,507-square-foot parcel (0.26 acres) to be conveyed to Carmel Partners at the northwest boundary of the Housing Authority parcel (Exhibit 8 of the MOU). Conveyance of this property will retain four units that would otherwise be demolished as these units straddle the Housing Authority and Carmel Partners properties. With this additional property, Carmel will renovate and rent out 150 units rather than the originally proposed 146 units. While Carmel proposed to reuse the existing improvements, the Housing Authority will demolish the existing units on its property and build new residential units.
Under the MOU, Carmel Partners has agreed to construct Singleton Avenue on the Housing Authority’s property which would extend Singleton Avenue to Alameda Landing and create an east-west street from 5th Street to Main Street (Exhibit 2 of the MOU). This street connection is an important design feature of the Reuse Plan and continues the Alameda street grid on former military property. While Carmel Partners has agreed to construct Singleton Avenue on Housing Authority property, it is the City’s responsibility to demolish the existing improvements on the land where the road will be built. Therefore, it is proposed that, in exchange for the 11,507 square foot land conveyance, Carmel Partners will fund the demolition of the improvements.
Based on an appraisal commissioned by the Housing Authority, the fair market value of the property is $68.87 per square foot. The pending sale between Carmel Partners and the Navy has a fair market value of $58.67 per square foot. The MOU uses a fair market value of $63.77 per square foot (the difference between the two competing valuations). A fair market value of $63.77 per square foot results in a $733,801 land value for the 11,507 square feet of land. Carmel Partners has agreed to fund the demolition of the existing improvements on the future Singleton Avenue in exchange for the 11,507 square feet of land. If the cost of the demolition is less than $733,801, Carmel Partners will refund the difference to the City, or at the City’s election, apply it to the cost of the demolition of the existing improvements in the future Mosley Avenue. If the demolition cost exceeds $733,801, Carmel Partners will bear the additional cost. Once the demolition is completed, the MOU requires Carmel Partners to build the roadway improvements at its expense. Following construction of the roadway, the completed improvements will be dedicated to the City.
Planning Board Action
State law requires that “the location, purpose, and extent of an acquisition or disposition of real property be submitted to, and reported upon, by the planning agency as to conformity with the general plan”. The Planning Board will be considering a staff recommendation to find that the land acquisitions and dispositions described above conform to the City’s General Plan at its April 23, 2018 meeting.
Conclusion
Following the Planning Board’s finding of conformity with the City’s General Plan, staff recommends that the City Council adopt the ordinances described above to implement the North Housing MOU between the City and Carmel Partners and the 2012 LBA between the City, Housing Authority, APC and BFWC to facilitate the redevelopment of the North Housing property as contemplated in the Reuse Plan and proposed by Carmel Partners and the Housing Authority.
FINANCIAL IMPACT
Adopting the three ordinances described above conveying and disposing of land on the North Housing property to implement the MOU between the City and Carmel Partners has a positive impact on the General Fund. Based on a Fiscal Impact Analysis prepared by Economic and Planning Systems, Inc. (EPS), and included in the January 2, 2018 staff report, annual revenue on the Carmel Partners portion of the property will be $100,000 more than the cost of providing services to project residents. In addition, one-time revenue to the City will be $1.3 million from property transfer tax (reflects two sales, one before construction and one at buildout).
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The proposed ordinances conform to the General Plan and are recommended for approval consistent with the City Charter, Municipal Code, MOU and Reuse Plan.
ENVIRONMENTAL REVIEW
This action would not result in any new environmental impacts or more severe environmental impacts than those previously identified with the adoption of the Community Reuse Plan Environmental Impact Report (EIR) 2009 Addendum, and the Housing Element 2012 EIR Addendum.
RECOMMENDATION
Introduce an Ordinance authorizing the Acting City Manager to: (i) grant an approximately .67-acre easement to CP VI Admirals Cove, LLC, a Delaware limited liability company (“Carmel”) for softscape improvements within an approximately 5.3-acre roadway dedication in the North Housing Site (generally bounded by Main Street, Singleton Avenue, Mosley Avenue and Bette Street) in exchange for fee title to approximately .29-acre parcel from Carmel needed to complete the Singleton Avenue extension; and (ii) execute any and all ancillary documents and to perform any and all acts necessary or desirable to consummate the transaction; and
Introduce an Ordinance authorizing the Acting City Manager to: (i) accept at no cost an approximately 5.3 acre roadway dedication from the U.S. Navy; (ii) accept at no cost an approximately 12 acre site from the U.S. Navy and transfer by quitclaim deed a portion thereof at no cost to the Housing Authority of the City of Alameda in the North Housing site (generally bounded by Main Street, Singleton Avenue, Mosley Avenue and Bette Street), and (iii) execute any and all ancillary documents and to perform any and all acts necessary or desirable to consummate the transaction; and
Introduce an Ordinance authorizing the Acting City Manager to: (i) quitclaim a .26-acre of real property to CP VI Admirals Cove, LLC, a Delaware limited liability company (“Carmel”) as consideration for demolition of the existing improvements on the future Singleton Avenue extension; and (ii) execute any and all ancillary documents and to perform any and all acts necessary or desirable to consummate the transaction.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Edwin Gato, Acting Finance Director
Exhibits:
1. Map of North Housing Property
2. North Housing MOU