[Council Communication]  [Attachments]

Council Communication

Title:	Discussion of Request for Proposals for the development of affordable housing above downtown City owned public parking lots.
Dept:	Planning Department
Date:	August 17, 2004
Submitted By:	Brandon Goldman, Housing Program Specialist John McLaughlin, Director of Community Development
Approved By:	Gino Grimaldi, City Administrator

Synopsis:	Last October, the Housing Commission was directed by the City Council to review a specific proposal for development of affordable housing above the Hargadine Parking Structure. The Housing Commission reviewed the proposal presented by Alan Sandler to develop 20 low-income rental units above the parking structure at their November 19th 2003 meeting. Through discussions at this and subsequent meetings, the Housing Commission determined that in lieu of accepting Mr. Sandler's proposal alone, other proposals should be solicited through an RFP process. Due to complications related to the maximum building size ordinance for downtown, Mr. Sandler proposed changing his housing proposal to the Pioneer parking lot (corner of Lithia Way and Pioneer). The Housing Commission found that the concept of developing housing above public parking lots has merit, and was supportive of the potential development of affordable housing above the Pioneer Lot, and other lots within the downtown area, such as the small lot on Lithia Way across from Copeland Lumber, and the lot on Second Street near the Monet restaurant. For consideration by the Council, the Commission suggests that the City should include in an RFP a period of affordability of not less than 40 years under lease, and perhaps contain a buy-back provision at the conclusion of the period of affordability. Additionally the Housing Commission recommends that the proposals should benefit households earning less than 80% of median income. The City's Housing Action Plan identifies downtown parking lots as potential sites for affordable housing projects, utilizing the airspace over the lots. For consideration by the Council staff has identified three city owned properties that could be potential sites for affordable housing above the public parking lots. These sites include the Lithia Way lot, the Pioneer Street Lot, and the Second Street lot. The Lithia Way lot has a potential of approximately 10 units, the Pioneer Street Lot (due to being outside of the Downtown overlay) has a potential of approximately 17 units, and the Second Street lot has a potential of 13 units. Due to size restrictions on the parking structure, it may not be possible under the current ordinances to add housing to the top of this building.
Recommendation:	Staff recommends that the Council direct staff to finalize the RFP based upon comments received at the meeting, and distribute it for only the Lithia Way parking lot at this time (approx. 10 units). This will allow the staff an opportunity to concentrate the efforts on one parcel within the downtown and work closely with the ultimate housing provider. Should the process prove successful, other lots can then utilize the same process. The Council may also choose to maintain the public parking lots in their current state and not entertain any requests for further development at these locations at this time. However, this would tend to run counter to the Housing Action plan and previous direction from the Council. The Council may wish to also consider land use amendments which could allow for housing to be developed over the parking structure, and a greater number of units over the Pioneer parking lot.
Fiscal Impact:	Dependent upon the Council's direction, sale or lease of the air space could result in revenue to the City. However, the value of the airspace has not been determined for any of the three identified sites. The City may be requested to provide the air space at a low cost, or no cost, to ensure the viability of an affordable housing project.
Background:	Assuming the Council directs staff to move forward with the RFP, the following represents the next steps in the process: 1. Finalize revisions to RFP based upon Council input from 8/17 meeting, with review by the City Administrator and City Attorney. (approximately 30-60 days) Early October, 2004 2. Distribute RFP to housing developers and non-profit housing providers. (45 - 60 days) Early December, 2004 3. Staff Review and Recommendation (14 days) Late December, 2004 4. Housing Commission Review and Recommendation (30 days) Late January, 2005 5. Council Review and Decision - February, 2005
Attachments:	A draft RFP has been developed to illustrate how proposals could be evaluated. This draft RFP contains site specific information and maps that describe each of the sites identified including their development potential. It should be recognized that this document is still in draft form and is subject to further review by the staff based upon comments received at the meeting. •  Draft RFP

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