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Home My WebLink About082007 Replacement Hsg Plan-Demo Contract Various PropREQUEST FOR AGENCY ACTION AGENCY BOARD MEETING DATE: AUGUST 20, 2007 TITLE: REPLACEMENT HOUSING PLAN AND DEMOLITION CONTRACT — VARIOUS PROPERTIES AGENCY SECRETARY USE ONLY: rnottm%: jjr-j � �a 2n/d: rna� hnez APPROVED ; p �PtrEdO p�5en f g] As Recommended ❑ As Amended ❑ Ordinance on 1" Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO )�J, FILE NUMBER EXECUTIVE DIRECTOR RECOMMENDED ACTION ,CA 00y 1. Adopt a resolution approving the Replacement Housing Plan for residential properties located at 602 N. Garfield, 611 N. Minter, 905 Brown, 709 E. Sixth Street, 801 E. Santa Ana Blvd and 707 Garfield, 501 and 501 � Fifth and 507 Mortimer, 505 E. Fifth, 611 N. Lacy, 809 -811 Brown, 601 N. Lacy, 712 E. Fifth, 711 E. Sixth, 610 and 612 E. Fifth, 508 and 510 Porter and 621 E. Fifth, 710 E. Sixth, 902 Brown, 801 Brown, 606 E. Fifth, 602 -604 E. Sixth and 511 -517 N. Minter, 601 -603 E. Fifth and 505 -507 N. Minter, and 720 E. Sixth. 2. Approve a contract to J & G Industries, Inc. for demolition of the properties located at 801 Brown, 809 -811 Brown, 902 Brown, 905 Brown, 602 Garfield, 709 E. Sixth, 711 E. Sixth, 601 N. Lacy, 611 N. Lacy, 606 E. Fifth Street, 602 -604 E. Sixth Street and 511 -517 N. Minter Street in the amount of $132,050 and authorize the Executive Director to execute all necessary documents. 3. Approve a project budget not to exceed $157,050, which includes a nineteen percent contingency. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION At its Adjourned Regular Meeting of July 3, 2007, by a vote of 6:1 (Vasquez, No), the Community Redevelopment and Housing Commission recommended that the Community Redevelopment Agency: 1. Adopt a resolution approving the Replacement Housing Plan for residential properties located at 602 N. Garfield, 611 N. Minter, 905 Brown, 709 E. Sixth Street, 801 E. Santa Ana Blvd. and 707 Garfield, 501 and 501 :� Fifth and 507 Mortimer, 505 E. Fifth, 611 N. Lacy, 809 -811 Brown, 601 N. Lacy, 712 E. Fifth, 711 E. Sixth, 610 6 -5 Replacement Housing Demolition Contract August 20, 2007 Page 2 Plan and - Various Properties and 612 E. Fifth, 508 and 510 Porter and 621 E. Fifth, 710 E. Sixth, 902 Brown, 801 Brown, 606 E. Fifth, 602 -604 E. Sixth and 511 -517 N. Minter, 601 -603 E. Fifth and 505 -507 N. Minter, and 720 E. Sixth. 2. Approve a contract to J & G Industries, Inc. for demolition of the properties located at 801 Brown, 809 -811 Brown, 902 Brown, 905 Brown, 602 Garfield, 709 E. Sixth, 711 E. Sixth, 601 N. Lacy, 611 N. Lacy, 606 E. Fifth Street, 602 -604 E. Sixth Street and 511 -517 N. Minter Street in the amount of $132,050 and authorize the Executive Director to execute all necessary documents. 3. Approve a project budget not to exceed $157,050, which includes a nineteen percent contingency DISCUSSION For several years the Redevelopment Agency has been acquiring properties in the Santa Ana Blvd area. In an effort to redevelop the entryway from the freeway into the downtown by creating new housing. State Redevelopment Law under Section 33413.5 of the California Health and Safety Code states that whenever there is destruction or removal of dwelling units from the low- and moderate - income housing market by the Agency, the Agency shall adopt, by resolution, a Replacement Housing Plan (Exhibit 1) . The law requires that for a reasonable time prior to adopting a replacement housing plan by resolution, the agency shall make available a draft of the proposed Replacement Housing Plan for review and comment. The first recommended action approves the Replacement Housing Plan for all Agency owned properties in the Santa Ana Blvd. area with residential structures. The attached Plan was made available for review on June 4, 2007, through July 2, 2007. The availability of the Plan was noticed in the Orange County Register on June 4 and June 18, 2007. The Replacement Housing Plan includes the following information as required by State law. (1) The general location of housing to be rehabilitated, developed or constructed pursuant to Section 33413, (2) an adequate means of financing such rehabilitation, development, or construction, (3) a finding that the replacement housing does not require the approval of the voters pursuant to Article XXXIV, or that such approval has been obtained, (4) the number of dwelling units housing persons and families of low or moderate income planned for construction or rehabilitation, and (5) the timetable for meeting the plan's relocation, rehabilitation, and replacement housing objectives. The Plan covers all residential structures currently owned by the Agency which are located at the following addresses: 602 N. Garfield, 611 N. Minter, 905 Brown, 709 E. Sixth Street, 801 E. Santa Ana Blvd and 707 6 -6 Replacement Housing Plan and Demolition Contract - Various Properties August 20, 2007 Page 3 Garfield, 501 and 501 %g Fifth and 507 Lacy, 809 -811 Brown, 601 N. Lacy, 712 E. E. Fifth, 508 and 510 Porter and 621 E. 801 Brown, 606 E. Fifth, 602 -604 E. Sixi E. Fifth and 505 -507 N. Minter, and 720 A in the Relocation Plan). Mortimer, 505 E. Fifth, 611 N. Fifth, 711 E. Sixth, 610 and 612 Fifth, 710 E. Sixth, 902 Brown, h and 511 -517 N. Minter, 601 -603 E. Sixth (Exhibit 1 - Attachment At this time, the Agency is prepared to demolish the twelve structures located at the following addresses in the Santa Ana Blvd. area because they are vacant and have been determined to have no historic value: 801 Brown, 809 -811 Brown, 902 Brown, 905 Brown, 602 Garfield, 601 N. Lacy, 611 N. Lacy, 709 E. Sixth, 711 E. Sixth, 606 E. Fifth Street, 602 -604 E. Sixth Street and 511 -517 N. Minter (Exhibit 2) . All prior tenants have been provided relocation benefits in compliance with State law. The Santa Ana Historical Preservation Society has been given the opportunity to salvage any items that they deemed useful for the restoration of other homes. In addition, the Santa Ana Fire Department has been given the opportunity to use them for training purposes. A Request for Bids was published in the Orange County Register, and mailed to twenty -three demolition contractors. Responsive bids were received from seven qualified firms. Of the seven, one firm requested their bid be withdrawn and the remaining six bids are summarized below: Company Bid Amount J & G Industries, Inc. $132,050 American Wrecking, Inc. $152,867 U.S. Construction & Trucking /Good Life, Inc. $168,252 American Demolition /Concrete Cutting, Inc. $178,275 Marcor Remediation, Inc. $190,424 Miller Environmental, Inc. $195,500 The bid received from J & G Industries, Inc. was the lowest responsive bid. The project budget (Exhibit 3) in the amount of $157,050 will ensure adequate funding to demolish the buildings, provide for necessary site work and fund any necessary contingencies. Prior to publishing the Request for Bids, all structures were tested for lead and asbestos and some of the structures tested positive for these environmental hazards. J & G will sub - contract to Total Environmental Industries, Inc. who is certified to perform such remediation. 6 -7 Replacement Housing Demolition Contract August 20, 2007 Page 4 CEQA COMPLIANCE Plan and - Various Properties In accordance with the California Environmental Quality Act, the proposed project is exempt from further review per Section 15061(b) (3) as the project will not have a significant effect on the environment. General Rule Exemption Environmental Review No. 2007 -91 will be filed for this project. FISCAL IMPACT Funds for the demolition are available in the Low and Moderate Housing Set -Aside account (account no. 507- 936 -6291, project number 7095). APPROVED AS TO FUNDS AND ACCOUNTS: fi �ir v �s Jac _r Shelly andry -B le FFrancisco Gutierrez Housing Manager p Executive Director Community Redevelopment Agency Finance & Management Services Agency SGH /SLB /mlr H: \ACTION ITEMS \CRA \2007 CRA\ ReplacementHsgPlan &DemoContract 8- 20- 07.doc • • REPLACEMENT HOUSING PLAN Statement of Purpose and Objective This Replacement Housing Plan is prepared in accordance with California Health and Safety Code Section 33413. The project consists of the demolition of the single family and multifamily residential units shown in Attachment A. These units have various bedroom sizes, and are or were previously occupied by low- and moderate - income households. Therefore they are subject to replacement in accordance with the legal requirements of the California Community Redevelopment Law (Health and Safety Code Section 33413 et seq.). All replacement housing will be provided within four years of commencement of demolition. Before entering into a contract committing the Community Redevelopment Agency of the City of Santa Ana to provide funds for the proposed activity that will result in demolition, the Agency will make public by publication in a newspaper of general circulation the information listed below. Project Property Description The location of the project properties is shown in the map attached as Attachment A. Each property is listed by address and number of bedrooms in Attachment B. Pursuant to the California Community Redevelopment Law (Health and Safety Code Section 33413 et seq.) all occupied and vacant occupiable units will be replaced in kind. Replacement Housing Units Attachment C delineates by number of bedrooms the location where the replacement units are or will be located. Income Level of Replacement Units The replacement dwelling units will be affordable and occupied exclusively by tenants with the same income levels as the persons displaced from the dwelling units that are being removed from the low -, very low- and moderate- income housing market. Therefore, all units will be made affordable to very low -, low- and moderate- income households. Funding Source The Agency and the City of Santa Ana have committed sufficient Tax Increment funds to finance the demolition and the required replacement units. EXHIBIT 1 6 -9 Low /Moderate Income Assurance All agreements related to replacement housing units will contain a covenant guaranteeing units remain available at affordable housing cost to, and occupied by, persons and families of low- income, moderate - income and very low- income households for not less than 55 years for rental units and 45 years for homeownership units, as required by the Health and Safety Code Section 33413. Article 34 Compliance The replacement housing to be provided pursuant to this Replacement Housing Plan does not require the approval of the voters pursuant to Article 34 of the California Constitution, in that all of the replacement housing units fall within exceptions to the definition of "low -rent housing project' in California Health and Safety Code 37001. Availability of Plan In accordance with the Community Redevelopment Law, a copy of this Replacement Housing Plan will be made available for review and comment by other public agencies, and the general public during regular business hours between 8:00 a.m. and 5:00 p.m., Monday through Friday in the offices of the Housing Department, 20 Civic Center Plaza, 3`a Floor, Community Redevelopment Agency, 20 Civic Center Plaza, 6`h Floor, and in the office of the City Clerk, 8i" floor, Santa Ana, California. 6 -10 REPLACEMENT PLAN MAP k 0 602 N. Garfield St. 0 611 N. Minter St. 0 905 Brown St. 0 709 E. Sixth St. 0 801 E. Santa Ana Blvd. & 767 Garfield SL A 501 E. Fifth St. & 5011/2 & 507 Mortimer Si. 0 505 E. Fifth St 0 611 N. Lacy St 0 809 -811 Brown St. �I 601 N. Lacy St 6) 712 E. Fifth St (D 711 E. Sixth St. to 610 & 612 E. Fifth St. G) 508 & 510 N. Porter & 621 E. Fifth St. Exhibit 1 - Attachment A 6 -11 (D 710 E. Sixth St Qj 902 Brawn St. 801 Brown St. 606 E. Fifth St. 602.604 E. Sixth & 611 -517 N. Minter St, LS17 601 -603 E. Fifth St. & 505-507 N. Minter St, Qj 720 E. Sixth St. THIS PAGE LEFT INTENTIONALLY BLANK. 6 -12 Replacement Plan Map Number Removed or Destroyed Address Beds Income Level 1 602 North Garfield Street 2 VL 2 611 N. Minter, Unit A 0 VL 3 611 N. Minter, Unit B 0 VL 4 611 N. Minter, Unit C 0 VL 5 611 N. Minter, Unit D 0 VL 6 611 N. Minter, Unit E 0 VL 7 611 N. Minter, Unit F 0 VL 8 611 N. Minter, Unit G 0 VL 9 611 N. Minter, Unit H 0 VL 10 611 N. Minter, Unit J 0 VL 11 611 N. Minter, Unit K 0 VL 12 611 N. Minter, Unit L 0 VL 13 611 N. Minter, Unit M 0 VL 14 611 N. Minter, Unit N 0 VL 15 905 Brown Street 3 VL 16 709 E. 6 Street 2 VL 17 801 E. Santa Ana Blvd. 2 VL 18 707 N. Garfield 1 VL 19 501 E. 5 Street 3 VL 20 501 L/2 E. 5` Street 1 VL 21 507 Mortimer 2 VL 22 505 E. 5" Street 2 VL 23 611 N. Lacy 2 VL 24 809 Brown Street 2 VL 25 811 Brown 2 L 26 601 N. Lacy 5 VL 27 712 E. 5" Street 4 VL 28 711 E. 6h 2 VL 29 610 E. Fifth Street 2 VL 30 612 E. Fifth Street 2 VL 31 508 N. Porter 0 VL 32 510 N. Porter 0 VL 33 621 E. 5" Street 2 VL 34 710 E. 6" Street _5 VL 35 902 Brown Street _2 L 36 801 Brown 1 L 37 606 E 5th Street, #A 3 VL 38 606 E. 5" Street, #B 4 M 39 606 E. 5r Street, #C 3 L 40 606 E. 5" Street, #D 3 VL 41 602 E. 6th Street 2 VL 42 604 E. 6th Street 1 VL Exhibit 1 - gttaclf3t B, Page 1 Replacement Plan Map Number Removed or Destroyed Address Beds Income Level 43 511 Minter 2 VL 44 513 Minter 2 VL 45 515 Minter 2 VL 46 517 Minter 2 VL 47 601 E. Fifth Street 1 VL 48 601 E. Fifth Street, #A 1 VL 49 603 E. Fifth Street 2 VL 50 603 E. Fifth Street, #A 2 VL 51 505 N. Minter 0 VL 52 507 N. Minter #1 0 VL 53 507 N. Minter #2 1 VL 54 720 E. 6 th Street, #D 3 VL Exhibit 1 - Attache t B, Page 2 Replacement Plan Map Number Replacement Address Beds Income Level 1 700 W. Third, B204 2 VL 2 939 E. 17 St., #104 0 VL 3 1102 S. Minnie St., #7 1 VL 4 1030 S. Minnie St., #10 1 —)7f- 5 1030 S. Minnie St., #6 1 VL 6 901 E. Sixth Street 1 VL 7 939 E. 17'h, #125 1 VL 8 1030 S. Minnie, #8 1 — VL 9 1030 S. Minnie St., #9 1 VL 10 901 E. Sixth Street 1 VL 11 1102 S. Minnie, #1 1 VL 12 901 E. Sixth Street 1 VL 13 901 E. Sixth Street 1 VL 14 901 E. Sixth Street 1 VL 15 1029 S. Minnie St., #7 3 VL 16 1029 S. Minnie St., #6 2 VL 17 1122 S. Minnie St., #7 2 VL 18 1002 Minnie, #1 1 VL l9 1411 N. Durant 3 VL 20 Wilshire /Minnie Project 1 VL 21 Wilshire /Minnie Project 2 VL 22 Wilshire/Minnie Project 2 VL 23 939 E. 17" St., #205 _2 VL 24 828 S. Minnie St., #2 2 VL 25 939 E. 17` St., # 223 2 L 26 814 Garfield 5 VL 27 Single Family Infill Project 4 VL 28 1101 S. Minnie, #2 2 VL 29 1501 Ross, #203 2 VL 30 Wilshire /Minnie Project 2 VL 31 939 E. 17 , #113 1 VL 32 939 E. 17 th St., #127 0 VL 33 1101 Minnie, #6 0 VL 34 Myrtle /Raitt Development 5 VL 35 816 S. Minnie, #6 2 VL 36 816 S. Minnie, #2 1 VL 37 1411 Durant 3 VL 38 Wilshire/Minnie Project 4 VL 39 1411 Durant 3 L 40 1101 S. Minnie, #7 3 VL 41 1126 S. Minnie, #4 2 VL 42 1411 N. Durant 1 VL Exhibit 1— Attachirt C, Page 1 Replacement Plan Map Number Replacement Address Beds Income Level 43 1411 Durant 2 VL 44 1411 Durant 2 VL 45 1411 Durant 2 VL 46 1411 Durant 2 VL 47 Wilshire /Minnie Project 1 VL 48 901 E. Sixth Street 1 VL 49 901 E. Sixth Street 0 VL 50 828 S. Minnie, #6 1 VL 51 1501 Ross, #104 1 VL 52 1501 Ross, #109 1 VL 53 1501 Ross, #201 1 VL 54 Wilshire /Minnie Project 3 VL Exhibit 1 — 6tach1e6t C, Page 2 Properties to be Demolished ® 905 Brown Street ® 611 North Lacy Street ® 902 Brown Street O 709 East Sixth Street ® 801 Brown Street O 711 East Sixth Street O 602 Garfield Street ®I 602 - 604 East Sixth Street & 511 - 517 Minter Street ® 809 -811 Brown Street ® 606 East Fifth Street 0 601 North Lacy Street Exhibit 2 6 -17 PROJECT BUDGET 801 Brown, 809 -811 Brown, 902 Brown, 905 Brown, 6022 Garfield, 709 E. Sixth Street, 711 E. Sixth Street, 606 E. Fifth Street, 602 -604 E. Sixth Street, 511 -517 N. Minter, 601 N. Lacy, and 611 N. Lacy. Contract Amount: $132,050 Contingency: 5 25,000 Total Contract Authority: $157,050 Exhibit 3 6/7/07 les RESOLUTION NO. 2007-,S05 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA ADOPTING A REPLACEMENT HOUSING PLAN FOR THE RESIDENTIAL PROPERTY LOCATED AT 602 N. GARFIELD, 611 N. MINTER, 905 BROWN, 709 E. SIXTH STREET, 801 E. SANTA ANA BOULEVARD, 707 GARFIELD, 501 AND 501 % FIFTH, 507 MORTIMER, 505 E. FIFTH, 611 N. LACY, 809 -811 BROWN, 601 N. LACY, 712 E. FIFTH, 711 E. SIXTH, 610 AND 612 E. FIFTH, 508 AND 510 PORTER, 621 E. FIFTH, 710 E. SIXTH, 902 BROWN, 801 BROWN, 606 E. FIFTH, 602 -604 E. SIXTH, 511 -517 N. MINTER, 601 -603 E. FIFTH, 505 -507 N. MINTER, AND 720 E. SIXTH STREET BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1: The Board of the Community Redevelopment Agency of the City of Santa Ana hereby finds, determines and declares as follows: A. Community Redevelopment Law ( "CRL ") allows a redevelopment agency to clear or remove buildings, structures or other improvements from any real property acquired and owned by the Agency (Health and Safety Code section 33420). B. Whenever the Agency destroys or removes dwelling units from the low and moderate income housing markets, the Agency shall adopt, by resolution, a replacement housing plan, which shall specify how and where the Agency shall provide replacement housing units (Health and Safety Code section 33413). C. The Agency purchased the property located at 602 N. Garfield, 611 N. Minter, 905 Brown, 709 E. Sixth Street, 801 E. Santa Ana Boulevard, 707 Garfield, 501 and 501 '/z Fifth, 507 Mortimer, 505 E. Fifth, 611 N. Lacy, 809 -811 Brown, 601 N. Lacy, 712 E. Fifth, 711 E. Sixth, 610 And 612 E. Fifth, 508 and 510 Porter, 621 E. Fifth, 710 E. Sixth, 902 Brown, 801 Brown, 606 E. Fifth, 602 -604 E. Sixth, 511 -517 N. Minter, 601 -603 E. Fifth, 505 -507 N. Minter, and 720 E. Sixth Street (the "Property ") to be used for affordable housing. D. Section 33413.5 of the California Health and Safety Code requires that not less than 30 days prior to the execution of an agreement for acquisition of real property, or the execution of an agreement for the disposition and development of property, or the execution of an owner participation agreement, which agreement would lead to the destruction or removal of dwelling units from the 6 -19 1 6/7/07 les low- and moderate - income housing market, the Agency shall adopt by resolution a Replacement Housing Plan. E. The Agency has prepared a Replacement Housing Plan relating to the Property, in the form presented by the Agency Executive Director. F. The Agency has made a draft of the Replacement Housing Plan available to the public and to other public agencies for a reasonable time prior to this meeting, following the publication of notice of the availability of the draft Replacement Housing Plan for review and comment. G. The Replacement Housing Plan includes 1) the general location of housing to be rehabilitated, developed or constructed pursuant to section 33413 (the "Replacement Housing"; 2) an adequate means of financing the Replacement Housing; 3) a finding that the Replacement Housing does not require the approval of the voters pursuant to Article XXXIV of the California Constitution; 4) the number of dwelling units housing persons or families of low- or moderate - income in the Replacement Housing which will be available at affordable housing cost and which is at least equal to the number of dwelling units being demolished, and which have an equal or greater number of bedrooms as those in the demolished Property and; 5) a timetable for meeting the Replacement Housing Plan's relocation, rehabilitation and replacement housing objectives not later than four years after demolition of the Property. Section 2. In accordance with the California Environmental Quality Act, the proposed project is exempt from further review per section 15061(b)(3) as the project will not have a significant effect on the environment. General Rule Exemption Environmental Review No. 2007 -91 will be filed for this project. Section 3. The Agency hereby approves and adopts the Replacement Housing Plan in the form presented by the Executive Director. Section 4. This Resolution shall take effect immediately upon its adoption by the Community Redevelopment Agency, and the Secretary of the Agency shall attest to and certify the vote adopting this Resolution. 2 6 -20 6/7/07 les ADOPTED this day of 2007. Miguel A. Pulido Chair APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: Lisa E. Storck Assistant Counsel AYES: Boardmembers: NOES: Boardmembers: ABSTAIN: Boardmembers: NOT PRESENT: Boardmembers: CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Recording Secretary for the Community Redevelopment Agency, do hereby attest to and certify the attached Resolution No. 2007- to be the original resolution adopted by the Community Redevelopment Agency of the City of Santa Ana on Date: Recording Secretary Community Redevelopment Agency City of Santa Ana 91 6 -21 THIS PAGE LEFT INTENTIONALLY BLANK. 6 -22