MARCH 1, 2005 CITY OWNED CRESTRIDGE PROPERTY MARCH 1, 2005 CITY OWNED CRESTRIDGE PROPERTY

TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL

FROM: DIRECTOR OF PLANNING, BUILDING AND CODE ENFORCEMENT

DATE: MARCH 1, 2005

SUBJECT: CITY OWNED CRESTRIDGE PROPERTY

Staff Coordinator: Gregory Pfost, AICP, Deputy Planning Director

RECOMMENDATION

That the City Council adopt Resolution No. 2005-__, affirming the City's intent to use the Crestridge property for the development of affordable housing.

DISCUSSION

On March 21, 2000, the City's Redevelopment Agency purchased the Crestridge property with RDA set-aside funds. Under state law, once purchased, the Agency has 5 years to initiate activities to provide affordable housing on the property. However, this could be extended for one additional 5-year period if the City Council adopts a resolution affirming its intention that the property be used for the development of affordable housing.

As the City Council is aware, although the City began negotiations with a developer to build affordable housing units on the subject property, those negotiations did not come to fruition.

At the December 7, 2004 City Council meeting, the City Council directed Staff to pursue expenditure of the City's In-lieu Affordable Housing Funds and the RDA Set-Aside Funds towards a combined program for: 1) a contribution toward development of an affordable housing component as part of the proposed Crestridge project; and 2) implementation of a rental subsidy program managed by a non-profit housing agency.

The Crestridge Estates LLC's applicant has informed Staff that they plan to move forward expeditiously with the Crestridge Senior project. In fact, on January 24, 2005, the applicants re-submitted their application package, which is currently being reviewed by Staff. If deemed complete during the first quarter of 2005, it is possible that the project could be acted upon by the first quarter of 2006. If this project is approved, Staff estimates that funds could be expended towards the project in year 2007.

As such, since it is feasible that the City's Crestridge Parcel may still be utilized for affordable housing purposes, Staff is recommending that the Council adopt the attached Resolution affirming the City's intent to use the subject property for the development of affordable housing.

FISCAL IMPACT

There is no fiscal impact to the City in adopting the attached Resolution.

Respectfully submitted:

Joel Rojas, AICP

Director of Planning, Building and Code Enforcement

Reviewed by:

Les Evans

City Manager

ATTACHMENT

Resolution No. 2005-__

RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF RANCHO PALOS VERDES EXTENDING THE TIME

FOR DEVELOPMENT OF LOW AND MODERATE

INCOME HOUSING ON APPROXIMATELY 19.54 ACRES

OF REAL PROPERTY OWNED BY THE RANCHO PALOS

VERDES REDEVELOPMENT AGENCY AND LOCATED

AT CRENSHAW BOULEVARD AND CRESTRIDGE ROAD

THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY FINDS, ORDERS, DETERMINES AND RESOLVES AS FOLLOWS:

Section 1. The City Council of the City of Rancho Palos Verdes (the "City Council") does hereby find, determine and declare that:

A. The Rancho Palos Verdes Redevelopment Agency (the "Agency") acquired approximately 19.54 acres of property described as Lot 2 of Parcel Map No. 25271, located at Crenshaw Boulevard and Crestridge Road, Rancho Palos Verdes, California (the "Crestridge Property") for use as low and moderate income housing utilizing money from the Agency's Low and Moderate Income Housing Fund as authorized by Health and Safety Code Section 33334.2. The Crestridge Property was purchased on March 21, 2000.

B. Health and Safety Code Section 33334.16 provides that within five years from the date a redevelopment agency first acquires an interest in real property using monies from the Low and Moderate Income Housing Fund, the agency shall "initiate activities consistent with the development of the property" for low and moderate income housing.

C. When the Agency acquired the Crestridge Property on March 21, 2000 for the development of housing affordable to persons and families of low and moderate income, the Agency also entered into an Exclusive Negotiating Agreement to develop the property for an apartment project for senior citizens who would fall within the low or moderate income requirements of the Health and Safety Code. Even though the Agency approved a second Exclusive Negotiating Agreement with the same developer, the developer subsequently proposed revising the project so that it would be a condominium project, rather than an apartment building, and no final agreement ever was reached between the developer and the Agency.

Section 2. The City Council hereby affirms the intention of the City Council that the Crestridge Property be used for the development of housing affordable to persons and families of low and moderate income.

Section 3. Pursuant to the authority of Health and Safety Code Section 33334.16 and the findings set forth in this Resolution, the City Council hereby extends the period during which the Agency may retain the Crestridge Property for an additional period of five (5) years, which additional period shall expire on March 21, 2010.

PASSED, APPROVED AND ADOPTED this ___ day of ________, 2005.

___________________________

Mayor

ATTEST:

______________________

City Clerk