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HomeMy WebLinkAbout05/05/2003 Work Session .' . City of Springfield Work Session Meeting MINUTES OF THE WORK SESSION MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, MAY 5, 2003 The city of Springfield council met in work session in the Jesse Maine Room, 225 Fifth Street, Springfield, Oregon, on Monday, May 5, 2003, at 6:00 p.m., with Mayor Leiken presiding. ATTENDANCE Present were Mayor Leiken, Councilors Ballew, Burge, Fitch, Ralston and Woodrow. Also present were City Manager Michael Kelly, Interim Assistant City Manager Cynthia Pappas, City Attorney Tim Harold, Administrative Coordinator Julie Wilson and members ofthe staff. Also present was councilor appointee Timothy Malloy. 1. Rivers to Ridges: Metropolitan Regional Parks and Open Space Study. Planning Manager Gregory Matt presented the staff report on this issue. Local participation in the preparation of the Metro Park and Open Space concept vision has concluded. In order for any potential future implementation to occur, support from all of the governing bodies is essential. . The Metropolitan Regular Parks and Open Space Study is not a land use plan nor are the participating jurisdictions under any commitment to proceed beyond the "visioning" that has already occurred. However, the widespread popularity of the project among the participating governments and the January 9~ 2003 request by MPC to seek individual jurisdiction' endorsement, speaks to the potential embodied in the AIS document. The past unanimous political support for this project was the key to subsequent grant funding that enabled the completion of the study. The high-level cooperation of a variety of state agencies and the enthusiastic participation on the public in a number of venues imparts significant leverage to elicit grants or other forms of non-profit contributions in the future should the governing bodies ever choose to implement strategies in the study. A letter of continuing support from the council will add further credibility to this effort. Councilor Ballew asked if the request for support included financial support. In terms of study, the document will be packaged and distributed to partners, no additional request for financial support. Jeff Krueger, LCOG, responded to questions from Councilor Burge. He explained that previous non-support by Willamalane was specific to an issue, not the strategy. Willamalane Board is ok with the new language. . Councilor Burge commented that as a result of this action, will the 200 acres be considered vista and preclude this due to a possible scenic vista. Jeff Krueger, LCOG, said he did not foresee that happening, but it would depend on the implementing agency. The vision does not have restrictions on vision use. It would have to go through the land use process for change. ( . Work Session Minutes May 5, 2003 Page 2 Jeff Krueger answered questions from Councilor Woodrow. Jeff Krueger said the purpose of this is to give long range planning direction. Councilor Burge discussed the 20 year plan. He said there still seems to be reluctance by many to expand the Urban Growth Boundary (UGB). Greg Mott said the state required us to have a UGB. He further discussed the 20 year growth inventory issue. Staffhas calculated/inventoried as recently as 1998 (residential lands study) and there was still enough residential lands inventory, based on many factors, density pattern, industrial land, etc. Council provided consensus to support sponsorship in the form of a letter of support. 2. FY03-04 CDBG/HOME Request for St. Vincent DePaul's HUD 202 Housing Project. Housing Program Specialist Kevin Ko presented the staff report on this issue. Council is being asked to review the information provided and discuss the request for $330,000 in HOME and CDBG funds by St. Vincent de Paul for the proposed 59 unit HUD 202 housing project. In regular session, make a final funding determination. Council is being asked if the City should support St. Vincent de Paul's application to the US Department of Housing and Urban Development (HUD) for $5.1 million in HUD 202 Program funds with an allocation of HOME/CDBG funds totaling $330,000. . St. Vincent de Paul (SVDP) submitted an application for $330,000 in Springfield HOME and CDBG funds to purchase a suitable site for a 59 unit HUD 202 housing project. The HUD 202 program assists with the development of housing for very low-income elderly residents. The requested $330,000 will support SVDP's application to HUD for approximately $5.1 million ofHUD 202 program funds. HUD 202 funds are awarded to deserving projects through a national competition. If SVDP's application is successful, it will be the first HUD 202 project located in Springfield. The proposed site is located at 3rd and S Street in Springfield, and is one of 20 properties considered by SVDP. The 2.3 acre site is properly zoned for this type of development, and all utilities and services are available to the site. The site is located near shopping, public transportation and other services and conveniences. The proposed project will consist of 59 one-bedroom units and a community center arranged in a single, three-story facility. The project will serve very low-income senior residents who have the ability to live independently if provided with enhanced ADA and accessibility amenities. The project will meet stringent federal design standards, and will be developed and managed in accordance with HUD requirements and other federal regulations. The per-unit hard cost of the proposed project is $69,915, which is consistent with other similar projects recently developed (see attachment 3). The Project will be owned by a non-profit limited partnership created by SVDP and Ya-Po-Ah Terrace. Manor Management will provide property management services. . On April 2, 2003, this project was reviewed favorably by the Community Development Advisory Committee (CDAC) based on the following: (a) Springfield has not had a HUD 202 development, yet the 2000 Consolidated Plan found that the need for affordable housing for the elderly is increasing as the population of Springfield ages. This finding is supported by the data presented in the 2000 Census. The proposed project will meet this need; (b) The $330,000 requested will provide a local subsidy of $5,593 per unit. Typical per-unit subsidy funded through our CDBG and HOME allocation process is between $15,000 and $25,000. , Work Session Minutes May 5, 2003 Page 3 . Efficient use of local funds is a factor that the CDAC considers when reviewing each proposal. Another factor is the leverage that local funding provides in securing funding from outside sources. This project will use $330,000 in Springfield HOME/CDBG funds to capture over $5.1 million of federal funds, a leverage ratio of 15.45. This is another indication that local funds are being utilized in an efficient manner; (c) The CDAC considers the development "track record" of the applicant, and its capacity for seeing projects through to completion. SVDP has been a primary developer of affordable housing in Springfield for many years, and has several noteworthy projects to its credit, including Ash Meadows (69th and Main), the Bluebelle Apartments (41st and Bluebelle) and the Vincent Court development on 35th Street. The financial impact ofthe proposed project will be positive for the City. The City will use $330,000 of HOME and CDBG funds on the project, but the project will bring over $5.1 million of federal HUD funds into Springfield, funds that would otherwise go to other projects in and outside of Oregon. Additionally, the project will pay approximately $275,000 in planning and permit fees and systems development charges. There will not be any additional burden on the school system, since no children will be living in the facility Councilor Ralston discussed benefits ofthe program, as well as noted the large amount of public money to be spent on the project. Mayor Leiken asked if we were to decline this, could this jeopardize future funding. Kevin Ko replied no, as long as we continue to meet the commitment to HUD as required. . Councilor Burge takes public office very serious, as well as use of public money. He said it is not the fIrst project built with public money and referenced other projects, not only those in Springfield. He said he is very aware of housing costs. He discussed the fact that half the property would go to St. Vincent de Paul, and a portion of the property will be sold by the owner for a profit. A portion of the property will end up being free and clear to the buyer, with the benefit of public money. He said taxpayers could pay $93,000 per unit or thereabouts. That is twice as much as they will appraise at. He asked what happened to $50,000 per unit. He asked about sale of tax credits. Kevin Ko said this was not a tax credit project. He said a lot of the soft costs involved are similar to a tax credit project. They form a limited non profit partnership. Councilor Burge further discussed appraisal information. He expressed concern and wants everyone to have a warm place to sleep. He said because we are spending higher cost for the units, less people have access to them. He wants more housing for the public, at a reasonable cost. Get the most mileage out of funding as possible. Councilor Woodrow asked about the road. Kevin Ko said one million dollars of road fund moiley has been set aside by Lane County. Mr. Ko further discussed road expenses and funding. Councilor Fitch referenced HUD regulations. When looking at projects like this, the cost could be increased, since this is a senior home project and asked if it did require elevator(s). Kevin Ko replied yes. Also, with this type of project, they look at the life of units, therefore they need to be of higher quality. Kevin Ko replied yes. A representative from St. Vincent de Paul replied that at least 50 year lifetime is projected for the units (or longer). . Councilor Ballew asked what happens if the appraisal comes in lower than expected. Kevin Ko said we actually cut a check at closing with the appropriate documentation. We pay the , Work Session Minutes May 5, 2003 Page 4 . lower amount. Kevin Ko said when someone enters into agreement with CDBG, they have to accept the lesser of asking price or assessed value. CDBG funds come from HUD. Kevin Ko discussed local CDBG funding and distribution, within eligibility guidelines. Councilor Burge commented on the issue related to leveraging of $330,000 from HUD against a million dollar project. Councilor Burge would like a copy of the appraisal report when available. ADJOURNMENT The meeting was adjourned at 6:36 p.m. Minutes Recorder - Julie Wilson Attest: ~WVL City Rec der . .