65A - AMCAL INCLUSIONARY FEES - Laserfiche WebLink

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Proposal with AMCAL Multi- Housing, Inc. April 19, 2016 Page 2 what project the in -lieu fees should be applied towards. Dyer 18 has requested that their in -lieu fee payment be applied towards the AMCAL Multi- Housing, Inc. ( "Developer ") project located at 1440 East First Street in Santa Ana ( "First Street Apartments "). (Exhibit 1) Staff's recommended proposal was prepared with the understanding that Heritage Village OC, LLC will honor the written preference request made by Dyer 18 and Mr. Ryan Ogulnik's representation at the public hearing at which the Heritage project was approved. Heritage Village OC has made a written request to pay the in -lieu fees in phases to be timed with the phasing of the build out of its project. While phasing of development is a common practice and phasing payments of development fees is also a common practice, the City's Housing Opportunity Ordinance would have to be amended to allow for such phased payments as requested. On March 18, 2016, the Community Development Agency received a proposal from the Developer for the First Street Apartments. The proposal requested $8,900,000 from the Heritage project's inclusionary housing in -lieu fee payment. Keyser Marston Associates (KMA), a real estate advisory firm which specializes in structuring affordable housing financing and implementation transactions, is currently reviewing the proposal and conducting an underwriting and subsidy layering analysis on behalf of the City that will be completed within 60 days of the Developer's submission. The Developer proposes the following deal points for consideration of the First Street Apartments: - Developer's Proposal - Request $8.9 million from the In -Lieu Fee Payment from Heritage Village OC, LLC, which provided a Developer Input Letter supporting the First Street Apartments by the Developer. City Response — The City has provided the funding proposal to KMA for underwriting and subsidy layering analysis. - Developer's Proposal — On or before April 1, 2016, AMCAL shall submit a full underwriting package to the City which shall contain project site plans, elevations, unit mixes and projections (the "Underwriting Package ") City Response — The City received the Underwriting Package and proposal on Friday, March 18, 2016. - Developer's Proposal — Within forty -five (45) days of submission of the Underwriting Package to the City, City staff shall review the Underwriting Package and City staff and AMCAL shall mutually agree upon the amount of the In -Lieu Fee which is needed by AMCAL for the development and construction of the Affordable Project (the "In -Lieu Assistance Amount "). 65A -2