HomeMy WebLinkAbout1995-03-28 - AGENDA REPORTS - CANTERBURY VILLAGE PROJECT (2)City Manager Approv(
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Item to be presented by:
BUSINESS
DATE:
SUBJECT:
DEPARTMENT:
March 28, 1995
Canterbury Village Project - Funding
Community Development
�J Rich Henderson
On February 28, 1995, the City Council directed the staff to prepare a plan which would provide
funding of up to $200,000 toward the development cost of this senior housing project.
Offsite improvements which are necessary to make this parcel usable for the proposed use are
estimated to cost almost $50,000.. These improvements may be eligible for CDBG funding
pending eligibility review and approvals from the Department of Housing and Urban
Development. Staff is 95% certain that these approvals will be granted, based on conversations
with HUD.
We have reviewed the possibility of waiving fees, such as the Bridge and Thoroughfare
requirement which amounts to $44,800. This would merely result in an equal reduction in
funding provided through HUD.
We have pursued other avenues in a search for available funding. Public Financing Authority
money can't be used for a private project on private property. The Recovery Agency could
possibly help out, but any pledge to use such funds would be based on the Agency's survival in
litigation.
We can continue to assist Southern California Presbyterian Homes in their search to economize,
yet meet the intent of all the conditions of approval. It is highly possible that such savings
would amount to $20,000 or less. The funding gap would remain at a level of $100,000 or more.
The issue of earthquake safety was a concern of the Council. The City has not enacted stricter
codes other than the requirements for masonry walls. It is anticipated that new codes may be
adopted in the fall of 1995. If the permits are obtained prior to such adoption, then the City
cannot apply future anticipated codes to this or other projects. Plans are drawn, submitted,
then reviewed by the City based on the codes in effect at the time. _
APPROVED Agenda Item: SO
Staff understands that the $50,000 to be programmed for offsite improvements will make
significant progress for the applicants in allowing this project to move forward. The applicants
are St. Stephen's Church (seller) and Southern California Presbyterian Homes (buyer), of the
parcel being subdivided.
RECOMMENDATION
1. Authorize staff to program $50,000 in CDBG funds for eligible offsite improvements for
this project;
2. Direct staff to prepare a letter of assurance for the mayor's signature, pledging the above
funds unconditionally as to HUD approvals. This could impact the General Fund in the
event of HUD denial.
Attachment: Letter dated March 15, 1995 from Canterbury Village to Vytautas Adomaitis,
Program Coordinator, CDBG.
cwndI\cantbury.rh
CANTERBURY VILLAGIFt E C E I V E o
23420 Avenida Rotella
Santa Clarita, California MAR 1 7 1995
March 15, 1995 Community Recovery
Mr. Vytautas Adomaitis Agency
Program Coordinator,CDBG
City of Santa Clarita
23920 Valencia Blvd., Suite 300
Santa Clarita, CA 91355-2196
Re: Canterbury Village, 234W Avenida Rotella, Santa Clarita, CA
Dear Mr. Adomaitis:
In an effort to reduce the cash requirement that exceeds HUD's allowable
Capital Advance, Southern California Presbyterian Homes asked the Department
Of Housing and Urban Development, the project contractor and the other team
members to revisit their cost estimates, for the development of Canterbury Village.
After HUD's careful review of construction cost documentation submitted
by the contractor, the cash requirement was reduced by nearly $130,000. The total
cash requirement is now $213,490. Following are the items comprising the cash
requirement:
Amenities $ 80,571
Architectural Cost over HUD estimate 60,000
Construction Cost over HUD estimate 6,629
HUD rounding down Cap. Adv. to nearest hundred 95
Amenities Escrow for maintenance 9,560
Working Capital Investment 10,000
Offsites & Demolition 46,635
TOTAL $213.490
Historically, project cash requirements have been met using a variety of
funding sources. A municipality determines the eligibility of a use under each
funding source. Community Development Block Grant (CDBG) is such a source.
Typically, CDBG funds have been available to a HUD project for
construction of offsites, demolition and that portion of the architect's fee limited
Mr. Vytautas Adomaitis
March 15, 1995
Page 2
construction of offsites, demolition and that portion of the architect's fee limited
to the design of those items. That amount would be:
Demolition $ 2,000
Offsites 44.635
Sub Total $46,635
Architectural Fee @ 7% 17M
(Potential CDBG Funding) TOTAL $49,899
The use of Community Development Block Grant funding for the above
purpose combined with $10,000 already placed on deposit by SCPH and St.
Stephen's Church commitment of $45,000 would reduce the total actual cash
requirement to $108,591,
Canterbury Village fervently requests that the City of Santa Clarita continue
pursuing all possible avenues of funding to close this gap. HUD requires that
funding is in place prior to Initial Loan Closing. The HUD Capital Advance of
$5,077,100 will be recaptured by HUD if this issue cannot be resolved.
Thank you for giving this request serious consideration.
MR:eik
Sincerely yours,
FOR CANTERBURY VILLAGE
Margo Rei
Consultant