Title
Minutes of the SACIC Meeting Held on January 21, 2020. [SACIC] (City Clerk)
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UNAPPROVED
MINUTES OF THE SPECIAL MEETING OF THE SUCCESSOR AGENCY TO THE
COMMUNITY IMPROVEMENT COMMISSION (SACIC)
TUESDAY- -JANUARY 21, 2020- -6:59 P.M.
Acting Chair Knox White convened the meeting at 7:01 p.m. Commissioner Vella led the Pledge of Allegiance.
ROLL CALL - Present: Commissioners Daysog, Knox White, Oddie, Vella and Chair Ezzy Ashcraft - 5.
[Note: Chair Ezzy Ashcraft was present via teleconference from The Capital Hilton, 16th Street NW, Washington, DC 20036.]
Absent: None.
CONSENT CALENDAR
Chair Ezzy Ashcraft requested the parcel sale [paragraph no. 20- ] be removed from the Consent Calendar for discussion.
Chair Ezzy Ashcraft moved approval of the remainder of the Consent Calendar.
Commissioner Oddie seconded the motion, which carried by the following roll call vote: Commissioner Daysog: Aye; Oddie: Aye; Vella: Aye; Knox White: Aye and Chair Ezzy Ashcraft: Aye. Ayes - 5. [Items so enacted or adopted are indicated by an asterisk preceding the paragraph number.]
(*20-036 CC/20-001 SACIC) Minutes of the Special Joint City Council and Successor Agency to the Community Improvement Commission Meeting Held on November 19, 2019. Approved.
(*20-002 SACIC) Recommendation to Authorize the City Manager to Submit the Recognized Obligations Payment Schedule (ROPS) and Administrative Budget for the Period from July 1, 2020 to June 30, 2021 to the Countywide Oversight Board. Accepted.
(*20-003 SACIC) Recommendation to Consent to an Assignment and Assumption of Affordable Housing Agreement at Independence Plaza (703 Atlantic Avenue) to Alameda Affordable Housing Corporation and Authorize the City Manager to Negotiate and Execute all Necessary Documents. Accepted.
(20-004 SACIC) Recommendation to Authorize the City Manager to Execute a Purchase and Sale Agreement with Branagh Land, Inc., a California Corporation, for a Net Sales Price of $1,000,000 for the 0.82 Acre Vacant Parcel at 2350 Fifth Street.
Chair Ezzy Ashcraft expressed concern about the housing crisis; stated there should be more focus on affordable housing; the League of California Cities has identified housing and homelessness as among its top five priorities; expressed support for more creative solutions to add more affordable housing within the project footprint or elsewhere in Alameda.
The Community Development Director gave a brief presentation.
Commissioner Daysog inquired whether the 2012 housing overlay is included.
The Community Development Director responded in the negative; stated the project does not have a Multi-family (MF) overlay; the property is a remnant parcel from the Bayport/Alameda Landing project and does not have any underlying zoning; the prospective purchaser will have to work through the entitlement process; a zoning amendment will occur, with final approve by Council; the Successor Agency is acting in a proprietary capacity as the property owner.
Commissioner Daysog questioned whether there is exception to the MF overlay.
The Community Development Director responded there is a density bonus provision; stated a concession waiver will obligate the purchaser to provide more affordable housing.
Commissioner Oddie inquired whether there could be a future decision to not build housing on the proposed project property.
The Community Development Director responded the purchase and sale agreement specifies a residential use.
Commissioner Oddie inquired the percentage of affordable housing for the proposed project.
The Community Development Director responded a 20-unit project at 15% affordable housing would have 3% inclusionary; stated a 22-unit project would have 3.3% inclusionary, which is rounded down when less than 0.5%, and rounded up when more than 0.5%; 25% inclusionary yields 5 affordable units on a 20-unit project and 6 affordable units on a 22-unit project; the project is very small.
Commissioner Oddie stated the guiding policy should be to provide as much affordable housing when possible.
Acting Chair Knox White stated office use was previously proposed; inquired whether the sale proceeds can be used for a mid-cycle budget adjustment to provide more homes in an alternate location.
The City Attorney responded brief direction may be given that the proceeds should be considered for affordable housing; stated the details should be left for a future, agendized meeting.
Acting Chair Knox White inquired whether the Housing Authority has received communication related to guidance in achieving the highest sale price possible.
The Community Development Director responded the Housing Authority had the opportunity to purchase the property when it was listed; stated the Housing Authority did not indicate interest in the property; the Housing Authority may indicate future interest related to the affordable housing component of the project.
Chair Ezzy Ashcraft inquired whether Branagh would be willing to consider a higher percentage of affordable housing units.
Commissioner Vella inquired whether the desire is to have the proceeds of the project be spent on affordable housing in some way or, as an alternative, have staff negotiate a higher percentage of affordable housing within the proposed project.
Chair Ezzy Ashcraft responded a higher affordable housing percentage would not be in lieu of the proceeds; inquired whether more affordable housing units could be planned; expressed support for entertaining creative solutions to have more affordable housing units.
Commissioner Daysog stated few parcels are available for affordable housing; inquired whether the City owns the property.
The Community Development Director responded the property is owned by the Successor Agency; stated the Successor Agency cannot donate the land.
Commissioner Daysog expressed support for the creation of a subcommittee to work with staff and Branagh; stated time should be spent evaluating options for the parcel; inquired whether the density bonus is effective within the context of the housing overlay; expressed concern for not being consistent with Measure A.
Commissioner Oddie noted escrow can take up to 15 months to complete; stated a hearing will be held in order to address spending the sale proceeds; 3 units of affordable housing is not enough.
The Community Development Director stated the challenge is the small size of the property.
Commissioner Oddie stated that he would prefer 5 or 8 affordable housing units.
The Community Development Director stated that is possible; there are trade-offs which include funding organizations such as Rebuilding the Existing Supportive Housing at Alameda Point (RESHAP) or adding 3 to 4 more units to the proposed project.
Chair Ezzy Ashcraft stated the property would have a size exception; questioned whether the City is well-positioned to form a subcommittee; stated staff can return to Council for decisions; there are a range of possible options.
Commissioner Vella inquired the about the impacts of a delay; stated there is a housing shortage; expressed support for as much affordable housing as possible.
The Community Development Director responded a the purchase and sale agreement includes a 90-day due diligence process; stated the City will know within 3 months whether Branagh will move forward with the entitlement process; Branagh is interested in evaluating a range of proposals.
The City Attorney stated the developer has a 90-day due diligence period; the City does not; should the Successor Agency approve the agreement, the developer has discretion to proceed.
The Community Development Director stated the Successor Agency could provide direction to revise the purchase and sale agreement.
The City Attorney stated the purchase and sale agreement may be modified to allow for a 90-day cancellation period for both sides.
Acting Chair Knox White expressed support for the modification.
Lisa Vilhauer, Branagh Land Inc., stated the modification provision will need to be authorized by the owners prior to acceptance; the 90-day due diligence period is thorough and in-depth; level of affordability is considered; expressed support for meeting with Successor Agency Members and staff.
Acting Chair Knox White stated affordable housing has been planned for over a year; expressed support for moving the project forward; stated the Housing Authority is finding funding for the North Housing project; market based affordable housing units need funding; expressed concern about delays.
The Community Development Director stated the project can happen quicker than an affordable housing project due to many different funds and competitive rounds; the scale of the project, as well as constraints, are important factors; there is a narrow path forward; the project will not yield many affordable housing units.
Commissioner Oddie inquired whether Branagh could complete due diligence in 60 days and not start or pay a deposit for 30 days; stated the City could use the 30 days for a subcommittee and staff to look into possibilities, causing little to no delay.
The City Manager stated the decision should either be delayed for 30 to 60 days to explore the different ideas proposed or the project agreement should be approved with the intent to set aside the revenue for affordable housing.
Commissioner Daysog expressed support for delaying the project and allowing a subcommittee of Chair Ezzy Ashcraft and Commissioner Oddie to work with staff on vetting different responses; stated the subcommittee can report back to Council on findings; the options allows the process to be Council-driven; the delay does not allow for a Request for Proposal (RFP) or Request for Qualifications (RFQ) process; Chair Ezzy Ashcraft and Commissioner Vella have been involved in housing issues; this is an opportunity to continue involvement.
Commissioner Daysog moved approval of delaying approval for 30-days with a report back from the subcommittee, working with staff and Branagh, to return for consideration.
Chair Ezzy Ashcraft seconded the motion.
Under discussion, Commissioner Vella stated many people are currently unhoused; expressed concern for a delay in the project causing a delay in the availability of 3 affordable housing units; stated there is a bigger picture in looking at surplus lands that could be used for affordable housing; expressed concern for over politicizing a small parcel with the capacity for a finite number of units; stated $300,000 will not provide for the construction of one affordable housing unit; the cost of affordable housing is high; expressed support for the subcommittee investigating the broader topic of the impact of surplus housing land and returning with an inventory of parcels which have the ability to add to the affordable housing stock; stated that she supports approving the project agreement with the intent to set aside revenue for affordable housing, with the addition of a robust conversation related to looking at other parcels; stated recent developments have allowed for affordable housing projects; expressed concern for undermining the current project.
Acting Chair Knox White inquired whether the Successor Agency could move forward with the decision and also appoint a subcommittee to work with the developer during the 90-day due diligence period to outline the broader topic of affordable housing stock.
The City Attorney responded that he is unclear what the subcommittee would be attempting in the 90-day period; stated should the project be approved, the project will move forward with the developer performing due diligence; the City has no further diligence to perform.
Acting Chair Knox White stated the developer will return for zoning; part of the developer’s due diligence could be to understand what the City is looking for in relation to the use of the project.
The City Attorney stated the zoning decision is quasi-judicial; noted the regular process of having the full Council hear the quasi-judicial action should be followed.
Chair Ezzy Ashcraft expressed support for Commissioner Daysog’s proposal; stated a 30-day delay is not significant to the greater scheme of the project; the delay allows the ability to look at options which could include looking at the process to get more affordable housing; the delay is reasonable; expressed support for a 30-day hiatus for a subcommittee to return.
Commissioner Oddie inquired whether the item requires 3 or 4 votes, to which the Community Development Director responded 3 votes.
Commissioner Oddie inquired the duration of the proposed delay, to which the City Manager responded 60-days.
The Community Development Director stated the delay would be a minimum of 60 days.
Commissioner Oddie stated that he would like more than 3 affordable housing units.
The Community Development Director noted the request; stated a representative from Branagh is present as well.
Acting Chair Knox White stated the path to more affordable housing is unclear; noted the City can ask the Housing Authority to assist in finding funding affordable housing; expressed concern for delaying an additional 60 days when the outcome is unclear.
Chair Ezzy Ashcraft stated the Housing Authority is not the only developer of affordable housing.
Commissioner Oddie stated that he would like more information about how many units the project will be and how many of those units will be affordable; questioned whether the project would lack approval with 20 units total and 3 affordable units.
Commissioner Daysog stated a 60-day delay is not required; expressed support for a 30-day delay to work out details and negotiate trade-offs.
The Community Development Director stated staff can work out details, but a staff report would be due at the end of the 30-day delay causing another 30-day delay.
Commissioner Oddie outlined a hypothetical scenario with Branagh only committing to 15% affordable housing; questioned the effectiveness of delaying; expressed support for 3-units of affordable housing; stated that he would prefer more affordable units.
Commissioner Vella stated the delay could add additional costs; all Councilmembers need to review the impact of the surplus land act to see what lands are available for affordable housing; more affordable housing is a Council goal; the project is not going to benefit from a 60-day delay; another opportunity might exist to allow for additional affordable housing units; expressed support for using resources to allow for more solutions.
Acting Chair Knox White inquired whether substitute motions are allowed.
The City Attorney responded there are currently no substitute motions on the table; stated the Successor Agency may call the question on the current motion.
Commissioner Daysog revised his motion to alter the 30-day delay to 60-days.
On the call for the question, the motion failed by the following voice vote: Commissioners Daysog: Aye; Oddie: No; Vella: No; Knox White: No and Chair Ezzy Ashcraft: Aye. Ayes - 2. Noes - 3.
Commissioner Oddie moved approval of the item, with creating a subcommittee of Chair Ezzy Ashcraft and Commissioner Vella to talk about the overall affordable housing plan.
Acting Chair Knox White inquired whether the motion includes direction for the use of proceeds.
Commissioner Oddie responded the distribution of proceeds should return to Council when received.
Commissioner Vella questioned whether staff would identify proceeds and return to Council.
Acting Chair Knox White inquired whether the motion could be amended to add ideas for more affordable housing.
Commissioner Oddie responded in the affirmative.
Commissioner Vella seconded the motion.
***
(20-005) Commissioner Oddie moved approval of giving Chair Ezzy Ashcraft an additional three minutes.
Commissioner Vella seconded the motion, which carried by the following roll call vote: Commissioners Daysog: Aye; Oddie: Aye; Vella: Aye; Knox White: Aye and Chair Ezzy Ashcraft: Aye. Ayes - 5.
***
Chair Ezzy Ashcraft stated that she would like to indicate the intention to use the proceeds toward achieving a well-articulated desire to add more affordable units.
Acting Chair Knox White noted the intention is indicated in the motion.
Commissioner Oddie concurred.
Commissioner Daysog inquired whether there will still be a subcommittee that will focus on the global issue.
Commissioner Vella responded in the affirmative.
Commissioner Daysog expressed support for the motion; expressed concern for Measure A.
Acting Chair Knox White stated the topic is related to a State density bonus, which Council does not control.
Commissioner Oddie inquired whether the Successor Agency would defer to Chair Ezzy Ashcraft for subcommittee appointment, to which Acting Chair Knox White responded in the affirmative.
Commissioner Vella stated that she would be happy to serve on the subcommittee with Chair Ezzy Ashcraft.
Chair Ezzy Ashcraft inquired whether the decision must be made.
The City Attorney responded since the item is not agendized, the decision can be announced upon Chair Ezzy Ashcraft’s return.
On the call for the question, the motion carried by the following roll call vote: Commissioners Daysog: Aye; Oddie: Aye; Vella: Aye; Knox White: Aye and Chair Ezzy Ashcraft: Aye. Ayes - 5.
ADJOURNMENT
There being no further business, Acting Chair Knox White adjourned the meeting at 7:58 p.m.
Respectfully submitted,
Lara Weisiger, Secretary, SACIC
The agenda for this meeting was posted in accordance with the Sunshine Ordinance.