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Ills <br />Ills <br />Ills August 3, 2020 <br />LEGACY <br />PARTt1ERS <br />Chairman Mark McLoughlin <br />Rental <br />Real Estate Santa Ana Planning Commission <br />20 Civic Center Plaza <br />Property Santa Ana, CA 92701 <br />Management <br />Marketing Re: Item #1 - AN ORDINANCE OF THE CITY OF SANTA ANA <br />Services AMENDING THE HOUSING OPPORTUNITY ORDINANCE <br />Corporate <br />Services Dear Chair McLoughlin and Commissioners: <br />De Developuisitions ment As you may know, our proposed multifamily project at 651 W. Sunflower in the South <br />Coast Metro area of Santa Ana was unanimously approved by both Planning Commission <br />Design Services and City Council last summer. Since that time, we have invested a substantial amount of <br />money and time to develop construction documents and process those through the <br />Construction <br />Management building department for approval. We had planned to close on the land with the Sound <br />Church, pull permits and start construction on the project in May until the COVID crisis <br />Financial Services caused our financial partner to put the project on hold. <br />Ownership The COVID crisis has caused serious economic issues in the apartment industry and have <br />driven rents and values are down by approximately 5% to 10%. At this time, our <br />financial partner is prepared to move forward with the project, however, we need to get <br />the cost down to make the underwriting work based upon current economics. <br />A flat fee reduction of $5 psf applying to Sunflower would have a direct impact on this <br />project and result in an immediate construction start this Fall. The project would be a <br />substantial investment in the City, with immediate construction jobs and fees, all at a <br />time in which it is most critically difficult and important. <br />It is important to note that the project provides other community benefits to the <br />Sandpointe neighborhood, the Santa Ana Unified School District and local union jobs. The <br />project received broad Planning Commission, City Council and community support and <br />allows the Sound Church to fulfill its community mission in relocating to downtown Santa <br />Ana. The project will also fund approximately $900,000 to the HOO Fund this year. <br />We appreciate your consideration on this matter and request that you recommend a $5 <br />psf flat fee for all projects including entitled projects. <br />Sincerely, <br />Tim O'Br' n <br />5141 California Avenue, Suite 100, Irvine, California 92617 <br />Legacy Partners • T.949 930.6600 F.866 260.1910 <br />www.legacypartners.com <br />