1 SYNOPSIS Sacramento Housing and Redevelopment Commission August 19, 2009 ROLL CALL The Sacramento Housing and Redevelopment Commission meeting was called to order at 6:00 p.m. by Chair Tom Burruss. PRESENT: Burruss, Chan, Dean, Fowler, Gore, Morgan, Morton, Otto, Rosa, Shah, ABSENT: Stivers STAFF PRESENT: Vickie Smith, LaShelle Dozier, David Levin, Lisa Bates, Greg Wessel, MaryLiz Paulson, Christine Weichert, Nick Chhotu, Jeree Glasser-Hedrick, Katherine Klein- McFadden, Richard Marsh, Cindy Cavanaugh, Chris Pahule APPROVAL OF AGENDA The Chair indicated that he would hear items 7 and 8 (presented together) before item number 6. 1. APPROVAL OF ACTION SUMMARY SYNOPSIS The action summary for August 5, 2009 was approved. 2. CITIZEN COMMENTS Ron Emslie complimented LaShelle Dozier and Nick Chhotu on their work in Oak Park. PUBLIC HEARING 3. Approval of Wendell Hotel Conversion Certificate, Replacement Housing Plan and Residential Hotel Conversion Guidelines Christine Weichert, Assistant Director, presented the item. David Levin, Agency Counsel, confirmed that the Commission was allowed to take action on the approval of the guidelines this evening. Commissioner Shah asked if there is anything that would prevent the other complexes in the area from converting to market rate. Christine confirmed that there is nothing in the ordinance that would prohibit owners from converting to market rate, although many of the multi family units have regulatory agreements which prevent them from doing this. The Agency is responsible for providing the replacement housing. Commissioner Chan expressed concern that the one year vacancy was done on purpose to circumvent the ordinance. Christine indicated that owners are responsible to pay for relocation and also pay into a fund if the units are vacant. John Foley, Executive Director of Sacramento Self Help housing, expressed concern that the closure of SRO’s increases homelessness. The Commission recommended approval of the staff recommendation for the item listed above. The votes were as follows: AYES: Burruss, Chan, Dean, Fowler, Gore, Morgan, Morton, Otto, Rosa, Shah NOES: None ABSENT: Stivers BUSINESS 4. Approval of Funding And Award Of The Mather Economic Development And Financial Analysis Consultant Professional Services Contract Sandy Piekarski, Redevelopment Planner, presented the item. Commissioner Otto asked for an explanation of why this contract was needed at this time which staff provided. Commissioner Shah asked why the funds were being asked for now if the consultant selection process is not complete. Staff indicated that there is an urgent need to get someone on board since the negotiations are scheduled to begin in September. Commissioner Fowler encouraged staff to make sure that the consultant is monitored closely as they move forward. The Commission recommended approval of the staff recommendation for the items listed above. The votes were as follows: The Commission recommended approval of the staff recommendation for the item listed above. The votes were as follows: AYES: Burruss, Chan, Dean, Fowler, Gore, Morgan, Morton, Rosa NOES: Otto, Shah ABSENT: Stivers 5. Approval Of Supplemental Funding For The McClellan Gateway 5 Roadway Improvements Greg Wessel, Assistant Director, presented the item. Commissioner Chan asked if this project would extend Dudley Avenue. Staff indicated that it would. Commissioner Burruss asked for an explanation of the costs which staff provided. The Commission recommended approval of the staff recommendation for the item listed above. The votes were as follows: AYES: Burruss, Chan, Dean, Fowler, Gore, Morgan, Morton, Otto, Rosa, Shah NOES: None ABSENT: Stivers 6. Broadway/Martin Luther King Jr. Boulevard (MLK) Development Site Exclusive Right to Negotiate Agreement (ERN) Richard Marsh, Housing finance analyst, presented the item. Commissioner Chan asked about he prior developer and why they dropped out. Staff indicated that they were not able to come up with the necessary financing. Commissioner Fowler asked if SHRA received the reports and development information from the previous developer. Staff indicated that they had received this information. Commissioner Rosa asked about the affordability level for the project. Staff indicated that some units will need to be at 60% of median in order to meet the tax credit guidelines, but it has not been officially decided at this point. Commissioner Burruss asked if children would be allowed to live at this site. Staff indicated that they do not envision anyone other than seniors living at this site. Commissioner Fowler recommended that the item be sent back to staff for additional review. Commissioner Shah expressed frustration with projects that come forward where the majority of the important issues have already been decided. Commissioners Otto, Chan and Dean support not moving forward with the project but reissuing a new RFP. Commissioner Morgan expressed support for the proposal as it stands. Commissioner Shah asked if an advisory vote can be taken on an alternate proposal. Legal Counsel indicated that was permissible. LaShelle Dozier reminded the group that they are only voting on the ERN at this time and that the final project would be brought back to the commission for approval. The following citizens spoke in opposition to the project Ron Emslie, Mark Rentz, Dustin Littrell, Joni Titherinton, Mike Boyd, Dana Kivel, Charles X. Simian, Tom Sumpter, and Joan Barden. Terrance Johnson spoke in favor of the project if the community continues to be involved in the development. Commissioner Morgan made a motion to remove the recommendation that the development be low-income housing. The motion was not seconded. Commissioner Fowler made a motion to deny the approval of the project, which he then withdrew. Commissioner Otto voted to reject staff’s recommendation. Commissioner Shah seconded the motion. The votes were as follows: AYES: Burruss, Morgan, Rosa NOES: Chan, Dean, Fowler, Gore, Morton, Otto, Shah ABSENT: Stivers 7. State Department Of Housing And Community Development Homeless Prevention And Rapid Re-Housing Program Application – County Report 8. State Department Of Housing And Community Development Homeless Prevention And Rapid Re-Housing Program Application – City Report Cindy Cavanaugh, Assistant Director, presented the item. Commissioner Gore asked if there is a set aside in the fund to be used on administration costs. Staff indicated that there is a 5% set aside per HUD regulations. Commissioner Burruss asked if this is one time funding. Staff indicated that it is one time funding, but it is hoped that this model can be used in the future. Commissioner Gore requested a report back on this item. LaShelle Dozier indicated that there is information on the Agency’s web site and that a stimulus fund “report card” is also being prepared. Commissioner Shah complimented staff on the hard work they have put into applying for the stimulus funds. Commissioners Burruss also complimented staff and indicated that he is not aware that SHRA has missed out on any available grant opportunities. Deacon Donald Clark expressed concern about the lack of public involvement and a lack of a strategic focus on this item. John Foley from Sacramento Self Help Housing congratulated staff on the hard work they have put in to this project. The Commission recommended approval of the staff recommendation for the items listed above. The votes were as follows: AYES: Burruss, Chan, Dean, Fowler, Gore, Morgan, Morton, Otto, Rosa, Shah NOES: None ABSENT: Stivers EXECUTIVE DIRECTORS REPORT LaShelle Dozier reviewed the following items: • Oak Park Status report • North Area Tour is next Wednesday August 26th. ITEMS AND QUESTIONS OF COMMISSION MEMBERS Commissioner Shah asked if the comments and vote on item # 6 would be sent to the City. LaShelle Dozier indicated that staff would provide the information to the Council. ADJOURNMENT As there was no further business to be conducted, Chair Burruss adjourned the meeting at 8:05 p.m. ________________________ AGENCY CLERK