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RDA MINS 20090303 MINUTES RANCHO PALOS VERDES REDEVELOPMENT AGENCY REGULAR MEETING MARCH 3, 2009 The meeting was called to order at 7:56 P.M. by Chair Clark at Fred Hesse Community Park, 29301 Hawthorne Boulevard. Redevelopment Agency roll call was answered as follows: PRESENT: Long, Stern, Wolowicz, and Chair Clark ABSENT: Gardiner (excused) Also present were Executive Director Carolyn Lehr; Assistant Executive Director Carolynn Petru; Agency Attorney Carol Lynch; Director of Finance/IT Dennis McLean; Director of Planning, Building, and Code Enforcement Joel Rojas; Director of Public Works Jim Bell; Deputy Planning Director Greg Pfost; Human Resources Manager Eric Mausser; Associate Planner Kit Fox; Associate Planner Leza Mikhail; Administrative Analyst II Katie Howe; and, Agency Secretary Carla Morreale. Also present were Planning Commissioner Bill Gerstner; City Traffic Engineer Joanne Itagaki, City Geologist Jim Lancaster; and, Tim Mullrenan, Financial Consultant with Tierra West. Proposed Affordable Housing Complex (Case Nos. ZON2008-00649 and SUB2008- 00008) on Redevelopment Agency (RDA) Property Located at the NW Corner of Crestridge Road and Crenshaw Boulevard (1900) Agency Secretary Morreale reported that notice of the public hearing was duly published, written protests were included with the staff report, late correspondence was distributed prior to the meeting, and there were 22 requests to speak on the item. Deputy Planning Director Pfost provided a staff report and in-depth PowerPoint presentation regarding the item. Chair Clark reported that the Crestridge/Seniors Project Subcommittee consisting of Vice Chair Wolowicz and himself met with staff and the consultant and suggested a comprehensive presentation on the matter. He disclosed that the Subcommittee, Executive Director Lehr, and Deputy Planning Director Pfost met with representatives from the neighborhoods around the project to provide a preview of the information regarding the Affordable Housing project. David Yarden, Vice President and General Counsel, AMCAL, provided background information and a PowerPoint presentation on AMCAL, and explained the standards, criteria, and regulations regarding the management of the Affordable Housing development. He briefly explained the ownership structure, application for tax credits, and planning schedule timeline for the project. Darin Hansen, Vice President of Forward Planning and Entitlements, AMCAL, provided a PowerPoint presentation of the design of the project and specifics of the site plan for the Affordable Housing development. RECESS AND RECONVENE: Chair Clark called a brief recess from 9:05 P.M. to 9:18 P.M. Chair Clark declared the public hearing open. Discussion between RDA Members, staff and AMCAL representatives included the following issues: the City's need to have its Housing Element in compliance with State law regarding affordable housing with the explanation of consequences on non- compliance from the Agency Attorney; the inability of the City to transfer its Regional Housing Needs Assessment (RHNA) obligations to another city; the delays to the Redevelopment Agency project from the original acquisition of the land in 2000; an explanation of the tax credits from Mr. Yarden; a clarification regarding the density bonus for an affordable housing project; praise for the thoroughness of the presentation; overview of the history and review of the project by the Planning Commission, including concerns with the Zone Text Amendment, Mitigated Negative Declaration (MND) or Environmental Impact Report (EIR), left turns into the property, and the parking setback; focused advertizing in local newspapers and the creation of a lease waiting list during the construction of the project; the project as meeting a demographic need in the community; a request for an EIR regarding traffic and geology issues; landscaping plan with some mature trees for areas of sensitive impact to integrate well with the elevations of the project; issues related to mix-used housing; issues regarding the use of a median to prevent left-hand turns into the property and related issues; the feasibility and expense of a covered parking structure; future funding sources; an assertion that affordable housing requirements must be adhered to and the responsibility of RDA Members to uphold State law; a request for the public speakers to focus on the design of and concerns regarding the affordable housing project; concerns with RHNA and the affordable housing obligation under State law and the burden it places on cities; and, a request for suggested alternatives to the proposed project. Linda Puentes, Rancho Palos Verdes, stated that she was very discouraged that the community does not have input on the affordable housing project, and noted that there were no services or elevators for the senior residents as a part of the project. She noted concerns with the parking, traffic, noise, and view impacts of the project. She suggested that an affordable housing project would be more appropriate on Western Avenue where there are shopping and banking facilities more available. Redevelopment Agency Minutes March 3, 2009 Page 2of8 Howard Thrall, Rancho Palos Verdes, inquired if there were low income or senior housing facilities as components of other recent developments, including St. John Fisher, Trump National Golf Course, Terranea Resort, or Marymount College. He inquired regarding the qualifying criteria needed for the tenants to rent the affordable housing, and what the process was if the tenants did not comply with the rules of the development. Janet Thrall, Rancho Palos Verdes, asked those in favor of the project to stand, noting that the residents clearly did not support the project, nor did the Planning Commission. She stated the property does not fit the zoning or the variances, is across the street from a major landslide that has not yet been reconciled. She noted that seniors in this project would be isolated and not have access to transportation, markets, and necessary medical care. Sherry Skari, Rancho Palos Verdes, reported that she is the Neighborhood Watch Coordinator for the Middlecrest neighborhood residents, where all the owners but one was against the affordable housing project. She expressed concerns regarding the maintenance of the building, the nearby landslide, and suggested that affordable housing be spread throughout the city. Chuck Taylor, Rancho Palos Verdes, reported that the Planning Commission denied the project based on the Zone Change, and expressed concerns regarding excessive grading, high retaining walls, lack of EIR, high density structure which is not compatible with the neighborhood, and lack of control over the tenants. Ian Bisco, Rancho Palos Verdes, stated that he and his wife are strongly opposed to the project since they moved away from Lomita to get away from numerous apartment complexes. He stated he had concerns regarding the parking and lack of transportation for seniors and opined the structure was not compatible with the neighborhood. George Carter, Rancho Palos Verdes, stated that there will be problems with tenants including difficulty with evictions if necessary, AMCAL will not be able to control the tenants who live in the units, and inquired as to the benefit of the project to the residents of Rancho Palos Verdes. Ken Dyda, Rancho Palos Verdes, stated that one of the benefits of this apartment project would be that the City would get out of the real estate business, noted that he was not aware of a large enough parcel along Western Avenue for an affordable housing project, and expressed concern for transportation for seniors who would live in the development. John Polen, Rancho Palos Verdes, stated he had concerns regarding the economics of the project, noting that this project would be too expensive to develop on this lot and would only provide 34 of the 60 required affordable housing units. Redevelopment Agency Minutes March 3, 2009 Page 3 of 8 Jim Hathaway, Rancho Palos Verdes, stated that he agreed with the decision of the Planning Commission, noting that this was the wrong site for an affordable housing project. Gene Steiger, Rancho Palos Verdes, stated he was opposed to the project noting that affordable housing should be dispersed throughout the City and an EIR should be required for the project. He expressed concerns with the maintenance of the building, possibility of bankruptcy for AMCAL, and the validity of the traffic study. Faye Steiger, Rancho Palos Verdes, opined that affordable housing should be divided into 4 projects consisting of 6 units each because the project will cause property values to decrease. Fred Ash, Rancho Palos Verdes, stated that he was opposed to the project. Perry Cockreham, President, Ridgecrest Homeowners Association (HOA), comprised of 107 homes, Rancho Palos Verdes, stated that the residents have offered their input and ideas to resolve the issues regarding the City property. He noted his community and the Ridgecrest HOA enthusiastically supported the last two senior affordable housing projects for the property. He expressed concerns of the project regarding the impact on property values, traffic impacts, and fiscal challenges to the City. Kathy Hesse, Rancho Palos Verdes, stated she was opposed to the project for many reasons and disappointed in the Redevelopment Agency Members' receipt of input from the community. Carmela Bonello, Rancho Palos Verdes, shared pictures of the view of the project site from her home, noting the project appears to be a monstrosity when she looks out of her door. RDA Members, staff, and AMCAL representatives discussed the following issues: the appropriateness of the MND as long as any potentially significant impacts can be mitigated to a level of insignificance; no evidence submitted regarding the need for an EIR; adequate parking requirements on the property site by State law; dispersal of affordable housing throughout the community rather than concentrated in one area; the requirement for all residents living in the units to be 62 years of age and older; zoning restrictions related to property along Western Avenue for the project; the requirement for four onsite affordable housing units at the Trump property and two additional offsite units to be built when the residential component of the project is completed; the previous practice in the 1990s of a developer paying an "in-lieu of fee" instead of providing affordable housing units, which left the City with the obligation to provide the units; the `plan and not build' RHNA compliance strategy; the City's obligation to expend the RDA funds on affordable housing; the risk of the City in not moving forward with the plans causing it to be out of compliance with the General Plan; the purchase of the property with housing set aside funds; meeting the housing needs for the seniors in the Redevelopment Agency Minutes March 3, 2009 Page 4 of 8 community; targeted local advertising for tenants in compliance with the law; the laws regarding discrimination against particular persons under the Federal Civil Rights Act and the California State Unruh Civil Rights Act; the financing structure of the project; if the property was sold, the funds would go back into the affordable housing fund and if the funds are not used within three years the funds are turned over to the County to build an affordable housing project in the City with the City having no zoning control over the project; the screening policy and background check used for the potential tenants; eviction rules determined by a judge regarding tenant problems; social services that will be provided by AMCAL for its tenants; the Planning Commission's denial of the project; subsequent changes to the project, including reduction in the number of units, reduction in the size of the retaining wall, reduction in grading, the project no longer over extreme slopes, and the maintenance of the same pad elevation; traffic study and concern with left-hand turns out of the project onto Crestridge Road; restriction of left- hand turns during peak hours and possibility of a median; and, the threshold for a project to require affordable housing. Chair Clark closed the public hearing. RECESS AND RECONVENE: Chair Clark called a brief recess from 11:26 P.M. to 11:32 P.M. Member Long moved, seconded by Member Stern, to adopt staff recommendations Nos. 3 through 8, approving the 34 unit project and adopting the amended resolutions and ordinances as specified by staff in late correspondence. Redevelopment Agency deliberation included the following topics: an assertion that accepting in-lieu of fees instead of building affordable housing was not a good plan; consistent neighborhood opposition to affordable housing projects; the need to comply with State law; dissatisfaction with the affordable housing laws; clarification by Vice Chair Wolowicz that he would vote against the motion due to the flawed nature of the RHNA requirements; the intent of the property purchase in 2000 to meet the affordable housing requirement; and, the demographics of the City which demonstrates the need for the project for residents of the City. The motion failed on the following roll call vote as four votes were necessary for the urgency ordinance to pass: AYES: Long, Stern, and Chair Clark NOES: Wolowicz ABSENT: Gardiner Agency Attorney Lynch clarified that there were four votes necessary for the Urgency Ordinance to pass, but the other items in the motion passed. Redevelopment Agency Minutes March 3, 2009 Page 5 of 8 Redevelopment Agency and staff discussion ensued regarding splitting the vote on the matter, and the intent of Vice Chair Wolowicz to state his opposition against the State RHNA laws regarding affordable housing, but not to impede the Council/Redevelopment Agency's intention regarding the project. Member Long moved, seconded by Member Stern, to ADOPT URGENCY ORDINANCE NO. 486U, AS AMENDED, AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES, APPROVING A ZONE CHANGE (CASE NO. ZON2008-00649) ON A PORTION OF AN EXISTING 19.63 ACRE PARCEL LOCATED AT THE NORTHWEST CORNER OF CRESTRIDGE ROAD AND CRENSHAW BLVD. (APN#7589-013-905) FROM OPEN SPACE HAZARD (OH) TO INSTITUTIONAL (I); AND ALSO AMENDING MUNICIPAL CODE SECTION 17.26.030.E FOR THE PURPOSE OF FURTHER DEFINING THE LAND USE CATEGORY "HOMES FOR THE AGED"; AND DECLARING THE URGENCY THEREOF. The motion carried on the following vote: AYES: Long, Stern, Wolowicz, and Chair Clark NOES: None ABSENT: Gardiner Member Long moved, seconded by Member Stern, to adopt Recommendation Nos. 3, 4, 6, 7, and 8 which read as follows: 3) ADOPT RESOLUTION NO. 2009-15, AS AMENDED, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CERTIFYING A MITIGATED NEGATIVE DECLARATION FOR THE PROPOSED PROJECT; 4) ADOPT RESOLUTION NO. 2009-16, AS AMENDED, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CONDITIONALLY APPROVING A GENERAL PLAN AMENDMENT, CONDITIONAL USE PERMIT, GRADING PERMIT, AND VARIANCE FOR A 34-UNIT AFFORDABLE HOUSING COMPLEX; 6) INTRODUCE ORDINANCE NO. 487, AS AMENDED, AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES, APPROVING A ZONE CHANGE (CASE NO. ZON2008-00649) ON A PORTION OF AN EXISTING 19.63 ACRE PARCEL LOCATED AT THE NORTHWEST CORNER OF CRESTRIDGE ROAD AND CRENSHAW BLVD. (APN#7589-013-905) FROM OPEN SPACE HAZARD (OH) TO INSTITUTIONAL (I); AND ALSO AMENDING MUNICIPAL CODE SECTION 17.26.030.E FOR THE PURPOSE OF FURTHER DEFINING THE LAND USE CATEGORY "HOMES FOR THE AGED"; 7) Enter into an Agreement with AMCAL Multi-housing Inc., to provide financial assistance for certain predevelopment expenses, with the assignment of certain rights to the City; and, 8) Continue the public hearing to March 17, 2009, so the Council/Agency can consider whether to enter into a Disposition and Development Agreement with AMCAL Multi-housing, Inc., which will establish the contractual responsibilities of the Developer and the City/Agency in connection with the development of this project. The motion carried on the following vote: Redevelopment Agency Minutes March 3, 2009 Page 6 of 8 AYES: Long, Stern, and Chair Clark NOES: Wolowicz ABSENT: Gardiner RECESS AND RECONVENE: Chair Clark called a brief recess from 11:57 P.M. to 12:04 A.M. RECESS THE REDEVELOPMENT AGENCY MEETING: At 12:05 A.M. Chair Clark recessed the meeting of the Redevelopment Agency. RECONVENE THE REDEVELOPMENT AGENCY MEETING: At 1:36 A.M. on March 4, 2009, Chair Clark reconvened the meeting of the Redevelopment Agency. APPROVAL OF AGENDA: Member Long moved, seconded by Member Stern, to approve the Agenda as submitted. Without objection, Chair Clark so ordered. APPROVAL OF CONSENT CALENDAR: Member Long moved, seconded by Member Stern, to approve the Consent Calendar. The motion carried on the following roll call vote: AYES: Long, Stern, Wolowicz, and Chair Clark NOES: None ABSTAIN: None ABSENT: Gardiner Approval of the Minutes (1900) Approved the minutes of the February 2, 2009 Regular Meeting. FY08-09 Redevelopment Agency Midyear Financial Report (1900) Received and filed the FY08-09 Redevelopment Agency Midyear Financial Report, inclusive of the annual tax increment study in accordance with Resolution No. RDA 90-24. Redevelopment Agency Minutes March 3, 2009 Page 7 of 8 October 2008 Monthly Report of Cash Balances (1900) Received and filed the October 2008 Monthly Report of Cash Balances for the Rancho Palos Verdes Redevelopment Agency. Register of Demands ADOPTED RESOLUTION NO. RDA 2009-02, A RESOLUTION OF THE RANCHO PALOS VERDES REDEVELOPMENT AGENCY, ALLOWING CERTAIN CLAIMS AND DEMANDS AND SPECIFYING FUNDS FROM WHICH THE SAME ARE TO BE PAID. # # # # # # # # PUBLIC COMMENTS: None. ADJOURNMENT: Chair Clark adjourned the Redevelopment Agency meeting at 1:36 A.M. on March 4, 2009. Chair Attest: et/WL_.- // Agency Secretary W:\City Council RDA Minutes\2009\20090303 RDA MINS.doc Redevelopment Agency Minutes March 3, 2009 Page 8 of 8