HomeMy WebLinkAbout55A - RESO - SA ARTS COLLECTIVE PROJREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
DECEMBER 6, 2016
TITLE:
ADOPT A RESOLUTION TO APPROVE
THE RELOCATION PLAN FOR THE
SANTA ANA ARTS COLLECTIVE
PROJECT
{STRATEGIC PLAN NO 5, 3C}
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CONTINUED TO
FILE NUMBER
Adopt a resolution to approve the Relocation Plan for the Santa Ana Arts Collective Project
located at 1666 N. Main Street in Santa Ana, CA.
DISCUSSION
On November 3, 2015, the City Council awarded Meta Housing Corporation (Developer) a pre -
loan commitment of Inclusionary Housing Funds, Community Development Block Grant (CDBG)
and HOME Investment Partnership Program (HOME) funds, not to exceed $4,635,000, for an
affordable housing project called the Santa Ana Arts Collective (Project) located at 1666 N. Main
Street (Exhibit 1). On February 3, 2016, the loan agreement for the CDBG and Inclusionary
Housing Funds was approved by the City Council. The Project will be an affordable housing
project with a preference for applicants who are artists and working artist families within Santa
Ana with a process that would meet Fair Housing and funding requirements. The Project will
provide 57 affordable units, as well as a community art gallery, an art garden on the ground floor,
a maker space, digital and media lab, music room, performing arts room, and activity programs.
The project will be one of the first projects under the City's new adaptive reuse ordinance and
the first affordable housing complex with an artist preference.
Based on California law, when state or local funds are provided to a project which would lead to
the displacement of people from their homes and /or businesses, the legislative body must
approve a relocation plan. The draft Santa Ana Arts Collecitve Project Relocation Plan (Exhibit
1) has been prepared in conformance with applicable provisions of California Relocation
Assistance Law and Relocation Guidelines as well as United States Department of Housing and
Urban Development (HUD) regulations. All current Project occupants will need to be
permanently relocated. The needs and characteristics of the displaced population, available
relocation resources, and the Meta Housing Corporation's (Developer) program to provide
assistance to each affected person are general subjects of the Relocation Plan. The Developer
is utilizing LACAL Consulting, Inc. as their relocation consultant for the relocation plan and
55A -1
Resolution to Approve the Relocation Plan Santa Ana Arts Collective Project
December 6, 2016
Page 2
services. The Relocation Plan was completed on May 23, 2016
Current occupants that will need permanent relocation are ten known commercial businesses.
There is also a cell tower on the site, however it will remain onsite during and after construction.
All occupants have been interviewed and provided informational notices of the relocation plan in
accordance with State and Federal requirements. All project occupants received a copy of the
draft Relocation Plan with an Advisory Notice on May 27, 2016 describing the public review and
public comment period and providing an address to send written comments and a phone number
to call for verbal comments or questions. There was one public comment received during the 30-
day public review and comment period between May 28, 2016 and June 27, 2016, but it has
since been rescinded.
As part of the relocation plan, all occupants will be provided relocation assistance including
advisory services, moving costs, and reestablishment services provided by the Developer and
their relocation consultant.
STRATEGIC PLAN ALIGNMENT
The relocation plan covered by this report allows the City to meet Goal #5 (Community Health,
Livability, Engagement & Sustainability), Objective #3 (Facilitate diverse housing opportunities
and support efforts to preserve and improve the livability of Santa Ana neighborhoods), Strategy
C (Provide that Santa Ana residents, employees, artists and veterans received priority for
affordable housing created under the City's Housing Opportunity Ordinance or with City funding
to extent allowed under state law).
FISCAL IMPACT
There is no fiscal impact associated with this action.
Robert C. Cort(
Deputy City M nager
City Manager's ' e
J B /NV /II
Exhibits: 1. Location Map
2. Relocation Plan
3. Resolution
55A -2
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PROPOSED PROJECT LOCATION
1666 NORTH MAIN STREET
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55A -4
Relocation Plan for Santa Ana Arts
Collective - 1666 North Main
Prepared for Santa Ana Arts Collective, LLC
Prepared by LACAL Consulting, Inc.
May 31, 2016
7-1,3N,
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
I ntroduction............................................................................... ...............................
1. Project Location and Description ......................................... ...............................
A. Location ........................................................................... ...............................
B. Project Description .......................................................... ...............................
II. Relocation Needs Assessment ............................................. ...............................
A. Current Occupants ........................................................... ...............................
111. Relocation Resources ......................................................... ...............................
A. Replacement Site Availability ......................................... ...............................
B. Related Issues .................................................................. ...............................
IV. Relocation Program ........................................................... ...............................
A. Program Objectives, Standards and Assurances ............. ...............................
B. Relocation Advisory Assistance ...................................... ...............................
C. Relocation Financial Assistance ...................................... ...............................
D. General Information on Payment of Relocation Benefits ..............................
E. Relocation Tax Consequences ......................................... ...............................
F. Grievance Procedures ...................................................... ...............................
G. Eviction Policy ................................................................ ...............................
H. Immigration Status .......................................................... ...............................
1. Citizen Participation .......................................................... ...............................
J. Project Timing .................................................................. ...............................
K. Estimated Relocation Costs ............................................. ...............................
Appendices................................................................................ ...............................
AppendixA ............................................................................... ...............................
Relocation Assistance Program ............................................. ...............................
AppendixB ............................................................................... ...............................
Public Comments and Response ........................................... ...............................
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Relocation Plan for Santa Ana Arts Collective -- 1666 North Main, Santa Ana, California
c
Figure 1: Regional Project Site Setting....
Figure 2: Santa Ana Arts Collective Site.
Figure 3: Aerial View of Project Vicinity
5
6
6
Table 1: Description of Non - Residential Uses ............................................... ............................... 8
Table 2: Availability and Cost of Office Space ............................................ ............................... 11
55A -7
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Aria, California
Introduction
The following relocation plan (Plan) has been prepared for submission to the City of Santa Ana
(City) as administrator of CDBG and HOME funds, the California Tax Credit Allocation
Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC) in
conformance with the applicable provisions of the Uniform Relocation Act (46 U.S.C. § 4600 et
seq.), its implementing regulations (49 C.F.R. Part 24), the California Relocation Assistance Law,
California Government Code Section 7260 et seq. (ORAL) and the California Relocation
Assistance and Real Property Acquisition Guidelines, Title 25, California Code of Regulations,
Chapter 6, Section 6000 et seq. (Guidelines) and Handbook 1378 of the United States Department
of Housing and Urban Development (HUD). Santa Ana Arts Collective, LLC (Developer) has
acquired for adaptive reuse a late modern, five -story office building and site, to create an iconic
community gallery and affordable family development designated for professional artists of all
disciplines. The proposed Santa Ana Arts Collective Project (Project) will consist of 25 one -
bedroom units, 16 two - bedroom units and 17 three - bedroom units. The common grounds will be
professionally landscaped, offer approximately 113 parking spaces and provide a community art
gallery, art garden, digital and media lab, music room, maker space, performing arts room,
community garden, community room, tot -lot, onsite bicycle parking and laundry room. The
property acquisition, which is planned as part of the Project, will potentially cause the
displacement of 10 non - residential occupants.
The statutory basis for this Plan arises from the anticipated need to permanently displace the non-
residential current office uses from their Project units as well as to identify relocation requirements,
special needs and preferences for these occupants and the relocation assistance program the
Developer will follow. The Plan is presented in four sections:
Section I. General Project area and site description
Section IL Profile of non - residential occupants who may be affected
Section IId: Description of available suitable commercial sites in the vicinity of Project
Section IV: Description of the relocation assistance program
It is important to be aware that the preparation of the Plan fulfills an administrative requirement
but does not, by itself, constitute a commitment to proceed with the Project or the eligibility for
relocation assistance or benefits.
The Plan has been prepared by LACAL Consulting, Inc. ( LACAL). The LACAL office is located
at 6535 Wilshire Boulevard, Suite 205 in Los Angeles, California. The general telephone member
is (323) 951 -9887 which is attended Monday through Friday, between 9 a.m. and 5 p.m.
y •
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
i' 0
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The Project is located on south -west corner of Seventeenth Street and Main Street in Santa Ana,
County of Orange, generally between West Seventeenth Street to the north, West Fifteenth Street
to the south, North Main Street to the east and North Sycamore Street to the west. The office
complex associated with the Project is located less than a mile west of the Interstate 5 and south
of the State Route 22. (See Figure 1 for Regional Location Setting, Figure 2 for Specific Site
Location and Figure 3 for Aerial Project View).
Figure 1: Regional Project Site Setting
Specific location of Santa Ana Arts Collective is at 1666 North Main Street in Santa Ana,
California where North Main Street Corridor's southern border meets Midtown. A development
here continues the trend of major investments along North Main Street. By infilling this corridor
with an arts collective, the highly successful Artist Village to the south becomes connected to
esteemed art and cultural institutions to the north, the Bower Museum and Kidseum.
55A -9
Relocation Plan ror Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
Figure 2: Santa Ann Arts Collective Site
Figure 3: Aerial View of Project Vicinity
55A -10
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Figure 2: Santa Ann Arts Collective Site
Figure 3: Aerial View of Project Vicinity
55A -10
Relocation Plan for Santa Ana Arts Collective -- 1666 North Main, Santa Ana, California
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The Developer acquired 100% fee simple ownership in 1666 North Main Street in Santa Ana,
California. The property consists of a five -story office building totaling approximately 62,724
rentable square feet, situated on a 1 -acre site at the signalized intersection of 17th Street and Main
Street. The property was constructed in 1968 of reinforced concrete panels with tinted window
panels. The building was renovated in 2008 including new elevator cabs, build -out of tenant
improvements for the then- anchor bank branch, new restrooms, electrical and ceiling for the 3rd
Floor, tenant improvement for frill 4th floor including new restrooms, roof, energy management
system with variable frequency drive, new compressors for central HVAC system, and painting
and plumbing for the subterranean garage.
The Developer proposes to adaptively reuse the building in order to 1) continue the trend of major
investments along N. Main Street, and 2) connect the highly successful Artist Village to the south
to esteemed art and cultural institutions to the north, the Bower Museum and Kidseum.
With Studio 11 I as the architect, the Santa Ana Arts Collective would Adaptively Reuse a five -
story office building and site, into an iconic community gallery and affordable family development
designated for professional artists of all disciplines. This project would expand on the idea of using
art as a tool for economic and community revitalization, by preserving affordable space for artists.
In other words, this quality, affordable housing will ensure that the community is a place where
art is created and not just sold, and a place where artists can afford to enjoy the benefits of
revitalization for the long -term. An Arts Collective here also complements and expands on
activities of the Bowers Museum and its kid - centric extension, Kidseum. The museum's
philosophy is to help people learn about other cultures through their arts, and offer a greater
understanding of themselves and an appreciation of the world. Similarly, through its proven
partnership with nationally renowned nonprofit EngAGE, Developer's art colonies transform
traditional apartment communities into vibrant centers of learning, wellness and creativity.
55A -11
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
This Plan provides the results of a needs assessment survey, their incorporation into the planning
process, and details of the Developer's proposed relocation program. This Plan sets forth policies
and procedures necessary to conform to federal and state statutes and regulations for non-
residential displacements. Permanent funding sources for the Project include City of Santa Ana
inclusionary housing funds, CDBG funds, HOME funds, tax exempt debt, deferred developer fee,
and tax credit equity.
The information necessary for the preparation of this Plan was initially provided by the Developer
and property manager and it was substantiated by the property appraisal and environmental report.
After close of escrow in January 2016, personal interviews with the decision makers of the affected
businesses were conducted. Survey questions of non - residential occupants concerned existing
conditions such as type of business, type of occupancy, lease /rental and income information,
description and size of current operations, any special requirements, and area /facility preferences
for replacement locations.
A. Current Occupants
The Project includes 10 operating businesses (collectively called `non - residential uses'). Table 1,
following, provides a breakdown of the commercial uses by type, estimated square footage,
notable features, longevity and rent /lease rates.
Table 1: Description of Non- Residential Uses
Type of Est Particular Move -In/ Monthly
Name Operation Square Features Lease Lease
Footage Start
55A -12
large open
PAE Professional
office
6,306
waiting space,
9/1/15
$13;116
Services, Inc_
3 offices,
server room
Berkshire Hathaway
office
3,525
standard
9/1/13
$4,760
1,850-
4/1/11
$2,497
Shoreline Properties
office
standard
1,202
n/a
ti /a
Public Consulting
office
1,512
standard
8/1/14
$1,965
Group
Grupo legal Hispano,
804
small office
6/1/15
$1,125
office
Inc
1,532
standard
6/1/15
$2,068
55A -12
Relocation Plan for Santa Ana Arts Collective -- 1666 North Main. Santa Ana. California
Table 1: Description of ]Von- Residential Uses
Type of Est Particular Move -III/ Monthly
Name Operation Square Features Lease Lease
Tootaue Start
Masonek Law Croup
office
1,894
standard
10/1/13
$2,500
Peirano & Associates,
office
1,506
standard
9/1/13
$1,506
Inc
full floor, 39
individual staff
Western Youth Services
office
11,272
offices, several
5/1/11
$27283
play rooms,
observation
room
Parking Co
garage /lot
operating
n/a
n /a,
parking lot
roof top cell
rooftop
tower,
Sprint PCS Assets
75
enclosed on
7/1/05
$2,200
tower
the roof
story e
Current tenants at the Project property are mainly standard -sized offices, with more or less
sophisticated electrical and IT setups. Western Youth Services and PAE Professional Services,
Inc. are the exception in regard to the size and setup of their operation. Western Youth Services
occupies an entire 4th floor and the build outs were performed per specifications at the lease
commencement. They have 39 individual offices, several children's playrooms, observation room
and large storage, filing room and employee lounge. They are fully networked and equipped with
computers, internet and phones for each of the offices and their outside network. A relocation
challenge for them will be to perform a move over the weekend, with any required overtime for
staff as they cannot suffer any down -time. Another tenant leasing a larger space is PAE
Professional Services, Inc. (previously USIS) which provides fingerprinting and supporting
services to the US Department of Homeland Security. They are heavily regulated by the federal
government as to the specific buildouts for their space, they require special cooling in their server
room and additional, specialized electrical to support their operations. They also have 3 individual
offices: for the first immigration officer, for the PAE supervisor and one guest office. The main
area of the suite is open, with sitting room layout and lines to the security check desk and actual
fingerprinting equipment. The setup resembles DMV.
Sprint PCS rooftop tower will be able to remain onsite during and after construction; as a utility
it services the general area and clients like police department, fire department and courts. It is
essential that Sprint tower stays in the area, preferred at this site without interruption.
55A -13
Relocation Plan for Santa Etna Arts Collective — 1666 North Main; Santa Ana, California
The commercial corridor of downtown Santa Ana is a desirable location for real estate and legal
tenants and every attempt will be made to find suitable replacement sites in the vicinity of the
current area.
55A -14
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
While there is no specific requirement under current Relocation Law that alternate relocation sites
be made available to non - residential occupants at the time of displacement, the Developer is
committed to making every effort to satisfactorily relocate all concerns.
A survey was conducted daring the months of April and May 2016 to determine the availability
of commercial sites in the Project area and vicinity; the following sources were utilized:
• Internet sources
• Telephone and field contact with commercial brokerages serving the area
A. Replacement Site Availability
The Project includes up to 10 non - residential uses, zoned for commercial office. The research that
was performed to analyze likely relocation opportunities focused on actual office space availability
in Santa Ana, Tustin and Orange.
'Cable 2: Availability and Cost of Office Space
Space in Size /Square No. of Properties Found Cost /Sq. Foot (Median Cost)
Footage
Less than 1,000 SF
12
$1.35 - $1.76 ($1:48)
1,001 SF to 3,000 SF
30
$0.68 - $105 ($1.50)
3,001 SF to 6,000 SF
12
$1.05 - $1.75 ($1:10)
Larger than 6,001 SF
21
$0.65 - $1.80 ($1.15)
Non - residential use owners will have to take an active role to search for appropriate replacement
sites should the Project proceed as planned. The information in this Plan is a snapshot in time; the
commercial real estate market in Southern California is volatile and may be able to absorb the
relocations of all non - residential uses as long as there is available assistance and active
participation of non - residential use owners.
The Developer will provide professional consulting assistance to all displacees during the
relocation implementation phase to minimize any down time and loss of income for non - residential
use owners.
55A -15
Relocation Plan for Santa Ana Arts Collective — 1666 ]North Main, Santa Ana, California
B. Related Issues
1. Language
Relocation assistance information will be provided in English or the language used by the
business owners. All written communication will be provided in the language needed, or
an interpreter will be provided in order to assure that all non - residential use owners obtain
a complete understanding of the relocation program and available benefits.
2. Temporary Relocation
Temporary relocation is not anticipated for this Project.
55A -16
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Aria, California
r
The relocation program and assistance offered by the Developer will conform to provisions of the
California Relocation Law, Government Code Section 7260, et seq., the California Relocation
Guidelines, California Code of Regulations Title 25, Chapter 6, as amended January 1, 1998, the
federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA),
as amended and the implementing regulations of Handbook 1378 of the Department of Housing
and Urban Development (HUD), as appropriate.
t r r
It is the Developer's objective to fully inform eligible Project occupants of the nature of the site
development activities, timing, and procedures for obtaining relocation assistance and benefits. To
meet all regulatory requirements, the Developer and LACAL relocation staff will:
➢ Distribute appropriate written informational brochure (Appendix A); and fully inform
eligible Project occupants of the nature of and procedures for obtaining relocation
assistance and benefits.
➢ Determine the needs of each commercial displacee eligible for assistance.
➢ Assist commercial uses to identify appropriate replacement spaces.
➢ Provide assistance that does not result in different, or separate treatment due to race, color,
religion, national origin, sex, sexual orientation, marital status or, other arbitrary
circumstances.
➢ Supply information concerning federal and state governmental programs providing
assistance to displacees.
➢ Assist non - residential occupants to complete applications for relocation benefits.
➢ Make relocation benefit payments in accordance with applicable law and guidelines.
➢ Assure that no occupant is required to move without a minimum of 90 days written notice
to vacate.
➢ Inform all persons of the Developer's property management policies including criteria for
pursuing tenant evictions.
➢ Establish and maintain a formal grievance procedure for use by displaced persons seeking
administrative review of the Developer's decisions with respect to relocation assistance.
B. Relocation Advisory Assistance
Advisory assistance services are provided in order to inform displacees about the relocation
program, help find replacement accommodations, coordinate claims processing, maintain a
communication link with the Developer and assist with the involvement of outside providers of
55A -17
Relocation flan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
social and other support services. To follow through on the advisory assistance component of the
relocation program, LACAL relocation staff will perform the following functions:
➢ The non - residential occupants in the Project area will be personally interviewed to gather
information appropriate to the determination of needs and preferences regarding
replacement of existing facilities.
➢ A printed Informational Brochure will be provided in English or the displacee's language
should that be subsequently deemed necessary. Signed acknowledgments will be obtained
to verify receipt of this material.
➢ Maintain a database of available commercial /office space and distribute replacement site
referrals for the duration of the Project.
➢ Assistance will be offered to displacees in connection with arrangements for the purchase
of real property, if applicable, obtaining required business permits or licenses, the filing of
claim forms to request relocation benefits from the Developer and to obtain services from
other public agencies.
➢ Special assistance in the form of referrals to governmental and non - governmental agencies
will be made, if requested.
➢ Assist eligible displacees with the preparation and submission of relocation assistance
claims.
➢ Make benefit determinations and payments in accordance with applicable law and
Developer's policy.
C. Relocation Financial Assistance
Benefits will be paid to the eligible displaced occupants upon submission of required claim forms
and documentation in accordance with the Developer's approved procedures. LACAL will assist
claimants in the preparation of the necessary claim forms.
Specific eligibility requirements and eligible benefits will be detailed on an individual basis with
displacees. In the course of personal interview and follow -up visits, the displacees will be
counseled as to available options and the consequences of any choice with respect to financial
assistance.
Pursuant to the requirements of Federal Relocation Guidelines, the eligible businesses may receive
a relocation payment to cover reasonable cost of moving. They may choose either (1) a payment
for all eligible actual reasonable and necessary moving and related expenses, or (2) a fixed payment
not to exceed $40,000.
55A -18
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
1. Paymentfor Actual Reasonable and Necessary Moving and Related Expenses
Any business which qualifies as a displaced person is entitled to payment for such actual
moving expenses, as the Developer determines to be reasonable and necessary, including
expenses for:
➢ Transportation of persons and property from the present location to the replacement
location (transportation costs for a distance beyond 50 miles are not eligible, unless
the Developer determines that relocation beyond 50 miles is justified).
➢ Packing, crating, uncrating, and unpacking personal property.
➢ Disconnecting, dismantling, removing, reassembling, and installing relocated and
substitute machinery, equipment and other personal property. Includes connection
to utilities available nearby and modifications necessary to adapt such property to
the replacement structure or to the utilities or to adapt the utilities to the personal
property.
➢ Storage of personal property for a period not to exceed 12 months, unless the
Developer determines that a longer period is necessary.
➢ Insurance of personal property while in storage or transit and the replacement value
of property lost, stolen, or damaged (not through the fault or negligence of the
displaced person) in the process of moving, where insurance is not readily
available.
➢ Any license, permit, or certification required by the displaced business, to the extent
that the cost is necessary for reestablishment at the replacement location. (These
costs may be pro -rated based on the remaining useful life of any existing license,
permit or certification).
➢ Reasonable and pre - authorized professional services, including architects',
attorneys', engineers' fees, and consultants' charges, necessary for: (1) planning the
move of the personal property; (2) moving the personal property; or, (3) installing
the relocated personal property at the replacement location.
➢ Professional services performed prior to the purchase or lease of a replacement site
to determine its suitability for the business operation including, but not limited to,
soil testing, feasibility and marketing surveys.
➢ The purchase and installation of substitute personal property limited to the lesser
of: (1) an amount equal to the reasonable expenses that would have been required
to relocate the property, as determined by the Developer, subject to certain
limitations, or, (2) the replacement cost, less any proceeds from its sale or trade -in.
➢ Connection to available nearby utilities from the right -of -way to improvements at
the replacement site.
➢ The modification of machinery, equipment or other personal property necessary to
adapt these to the replacement location or to utilities available at the replacement
location.
55A -19
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
➢ Relettering signs and replacing stationary on hand at the time of displacement that
are made obsolete as a result of the move.
➢ Actual direct losses of tangible personal property resulting from moving or
discontinuing a business or non -profit organization, not -to- exceed the lesser of: (1)
the fair market value of the property for continued use at its location prior to
displacement less any proceeds from sale of the property; or, (2) an amount equal
to the reasonable expenses that would have been required to relocate the property,
as determined by the Developer, subject to certain limitations.
➢ Actual and reasonable expenses incurred in searching for a replacement business
or non - profit organization location, not -to- exceed $2,500, and including
compensation for transportation expenses; time spent searching for a reasonable
location, meals, and lodging; real estate broker or agent fees; time spent in obtaining
permits and attending zoning hearings; and time spent negotiating the purchase of
a replacement site.
➢ Impact fees or one -time assessments for anticipated heavy utility usage.
➢ Low Value /High Bull: when the personal property to be moved is of low value and
high bulk, and the cost of moving the property would be disproportionate to its
value in the judgment of the Developer, the allowable moving cost payment shall
not exceed the lesser of: (1) the amount which would be received if the property
were sold at the site or (2) the replacement cost of a comparable quantity delivered
to the new business location. Examples of personal property covered by this
provision include, but are not limited to, stockpiled sand, gravel, minerals, metals
and other similar items of personal property as determined by the Developer.
➢ A Reestablishment allowance of up to $25,000, available to farms, nonprofit
organizations and small businesses with no more than 500 employees.
Reestablishment allowance payments are made in addition to compensation
provided for actual, reasonable and necessary moving expenses. Reestablishment
allowance expense categories include but are not limited to:
• Repairs or improvements to the replacement property as required by
Federal, State or local law, code or ordinance;
• Modifications to the replacement property to accommodate the business
operation or make replacement structures suitable for conducting business;
• Construction and installation costs for exterior signing to advertise the
business;
■ Redecoration or replacement of soiled or worn surfaces at the replacement
site, such as paint paneling or carpeting;
■ Advertisement of replacement location;
• Estimated increased costs of operation during the first two years at the
replacement site for such items as: a) Lease or rental charges, b) Personal
55A -20
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
or real property taxes, c) Insurance premiums, and d) Utility charges,
excluding impact fees;
Other items essential to the reestablishment of the business.
If the displaced business elects to take full responsibility for the move of the business, the
Developer will make a payment for the business's moving expenses in an amount not to
exceed the lower of two acceptable bids or estimates submitted to the Developer. At the
Developer's discretion, a payment for a low cost or uncomplicated move may be based on
a single bid or estimate.
2, A Fixed Payment In Lieu ofA Payment For Actual Reasonable Moving and Related
Expenses
The option to claim a fixed payment in -lieu of actual reasonable moving and related
expenses enables both for - profit and non - profit businesses to receive relocation assistance
compensation without providing documentation of bids and actual expenses. The payment
amount available to any individual business is based on an average of annual net earnings
over a two year period. For businesses which have not been in operation for two years,
income figures can be annualized. The method for establishing income is through tax
returns and /or certified financial statements. The payment to an eligible business may not
be less than $1,000, nor more than $40,000.
To qualify for this payment, it must be determined that, a displaced business:
➢ owns or rents personal property, which must be moved in connection with such
displacement and for which an expense would be incurred in such move;
➢ is not operated at the displacement site solely for the purpose of renting the dwelling
or site to others;
➢ cannot be a part of a commercial enterprise having at least three other
establishments which are not being acquired by the Developer, and which is under
the same ownership and engaged in the same or similar business activities;
➢ must not be able to relocate without substantial loss of patronage; and
➢ contributed materially to the income of the displaced person during the two taxable
years prior to displacement.
D. General Information on Payment of Relocation Benefits
Claims and supporting documentation for relocation benefits must be filed with the Developer
within 18 months from:
➢ the date the claimant moves from the acquired property; or,
➢ the date on which final payment for the acquisition of real property is made, whichever is
later.
55A -21
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
The procedure for the preparation and filing of claims and the processing and delivery of payments
will be as follows:
➢ Claimants will provide all necessary documentation to substantiate eligibility for
assistance;
➢ Assistance amounts will be determined in accordance with the provisions of the Law;
➢ Required claim forms will be prepared by LACAL relocation personnel in conjunction with
claimants. Signed claims and supporting documentation will be submitted by LACAL to
the Developer;
➢ The Developer will review and approve claims for payment, or request additional
information;
➢ The Developer will issue benefit checks and they will either be personally delivered or sent
by mail;
➢ Final payments will be issued after confirmation that the Project area premises have been
completely vacated;
➢ Receipts of payment will be maintained in the relocation case file.
J. Relocation Tax Consequences
California Government Code Section 7269 indicates no relocation payment received shall be
considered as income for the purposes of the Personal Income Tax Law, Part t0 (commencing
with Section 170 01) of Division 2 of the Revenue and Taxation Code, or the Bank and Corporation
Tax law, Part 1 I (commencing with Section 23001) of Division 2 of the Revenue and Taxation
Code. Furthermore, federal regulations (49 CFR Part 24, Section 24.209) also indicate that no
payment received under this part (Part 24) shall be considered as income for the purpose of the
Internal Revenue Code of 1954, which has been redesignated as the Internal Revenue Code of
1986. The preceding statement is not tendered as legal advice in regard to tax consequences, and
displacees should consult with their own tax advisor or legal counsel to determine the current status
of such payments.
(IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we
inform you that any tax advice contained in this communication (including any attachments) was
not intended or written to be used, and cannot be awed, for the purpose of (i) avoiding tax- related
penalties under the Internal Revenue Code or (ii) promoting marketing or recommending to
another party any matters addressed herein)
F. Grievance Procedures
The Developer's Grievance Policy will follow the standards described in 49 CFR, Part 24, Section
24.1.0. Briefly stated, aggrieved persons will have the right to ask for administrative review when
55A -22
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
they believe themselves aggrieved by a determination as to eligibility or the amount of payment.
Requests for review will be directed to the Developer's Senior Vice President, or authorized
designee. Details concerning the entire appeals process will be provided upon request.
G. Eviction Policy
Eviction for cause must conform to applicable State and local law. Any person who occupies the
real property and is not in unlawful occupancy on the date of the initiation of negotiations, is
presumed to be entitled to relocation payments and other assistance set forth in this part unless the
Developer determines that:
➢ The person received an eviction notice prior to the initiation of negotiations and, as a result
of that notice is later evicted; or
➢ The person is evicted after the initiation of negotiations for serious or repeated violation of
material terms of the lease or occupancy agreement; and
➢ In either case the eviction was not undertaken for the purpose of evading the obligation to
make available the payments and other assistance set forth in this part.
For purposes of determining eligibility for relocation payments, the date of displacement is the
date the person moves, or if later, the date a comparable replacement dwelling is made available.
This section applies only to persons who would otherwise have been displaced by the Project.
H. Immigration Status
Federal legislation (PL105 -117) prohibits the payment of relocation assistance benefits under the
Uniform Act to any alien not lawfully present in the United States unless such ineligibility would
result in an exceptional and extremely unusual hardship to the alien's spouse, parent, or child any
of whom is a citizen or an alien admitted for permanent residence. Exceptional and extremely
unusual hardship is defined as significant and demonstrable adverse impact on the health or safety,
continued existence of the family unit, and any other impact determined by the overseeing
government authority to negatively affect the alien's spouse, parent or child. The Developer may
elect to authorize the payment of relocation assistance benefits to any otherwise eligible
commercial displacee from non - federally authorized reimbursable funds.
In order to track and account for relocation assistance and benefit payments, LACAL relocation
staff will be required to seek immigration status information from each non - residential occupant
by having them self - certify as to their legal status.
55A -23
i Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
I. Citizen Participation
The Developer will fully meet its obligations under the Relocation Guidelines with respect to the
following activities:
➢ Full and timely access to documents relevant to the relocation program.
➢ Provide assistance necessary to interpret elements of the Plan and pertinent notices.
➢ Distribution of a general notice concerning the availability of this Plan for public review,
as required, 30 days prior to its proposed adoption. Notice recipients will include affected
Project non - residential uses and all other interested parties.
➢ The opportunity to submit written or oral comments concerning the Plan and to have these
comments attached to the Plan (Appendix B) when it is forwarded to the City of Santa
Ana, CTCAC, and CDLAC for adoption.
➢ Final review of the Plan to ensure its feasibility, compliance and compatibility with
relocation law and guidelines.
The Developer closed escrow on the Project property in January 2016 and construction is
anticipated to begin no earlier than March 2017. The relocation activities already commenced to
allow ample time for businesses to plan their move. The Developer will approve, or request
additional information, individual relocation claims as soon as they are presented and eligible
businesses will be able to move any time, even prior to issuance of 90 -day notices — anticipated
for late 2016.
K. Estimated Relocation Costs
The Project will be funded with a combination of local, state and federal funds. The total budget
estimate for relocation- related payments for this Project is $907,000.
The estimated relocation budget does not include consideration of relocation administrative
services nor any related consulting services which may be necessary for the implementation of the
Plan and Project.
55A -24
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Aria, California
55A -25
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
MEM
Relocation Assistance Program
55A -26
Relocation Assistance Prog Brochure
0 IIII
i TRUSTEM PROFESSIONAL. RELIABLE, I
RELOCATION ASSISTANCE PROGRAM
FOR BUSINESS OWNERS,
NON PROFIT ORGANIZATIONS AND
FARM OPERATIONS
55A -27
r- Relocation Assistance Program Brochure - Business
The Relocation Assistance Program provides the policies for orderly, timely and efficient relocation of
business occupants displaced by the acquisition and development activities. The relocation program is
administered by offering advisory assistance and making relocation payments as follows:
Relocation Advisory Assistance
Maximum assistance to re- establish with a minimum of delay and loss of earning will be provided to
displaced businesses. A Relocation Consultant will be assigned to each displaced business throughout the
relocation process and will be the principal contact in all relocation matters. Information will also be supplied
regarding other programs which may offer assistance to displacees, including consultation with the Small
Business Administration. The Relocation Consultant will assist in completing and submitting claim forms for
relocation payments.
2. Relocation Payments
Relocation payments are available to eligible businesses, non - profit organizations and farm operations. To
qualify for these payments, an owner or tenant must have legally occupied the property on which the
displacee conducted a business at the Developer makes its first written offer to purchase the property.
Relocation payments to businesses consist entirely of moving costs and related moving costs. Relocation
moving payments do not cover such costs as down time, overtime, loss of business goodwill, loss of profits,
loss of employees, or other similar items. Generally, claims are submitted and moving payments are made
after the move is completed and the premises are left clean and orderly. All claims must be submitted with
18 months of the date displacee vacates the property. Commercial displacees may elect one of the two types
of relocation moving payments as outlined below:
Actual Reasonable Moving and Related Expenses. You may choose to be reimbursed for actual
moving and related expenses which include:
Moving Expenses, Each displacee will be eligible for complete moving services to
a new location and will have the option of having either a commercial move or conducting a self -
move. The Developer must be supplied with a written inventory listing of the personal property items
to be moved at least 30 days in advance of the move. Also, no later than 15 days prior to moving,
written notice must be given to the Developer of the date of the move and the type of move requested.
Relocation Advisors must be allowed to make reasonable and timely inspections of the personal
property at both the displacement and replacement sites, and to monitor the move.
The displacee will be required to obtain a minimum of two competitive bids from qualified,
approved professional moving carriers. The Developer may make direct payment to the
professional moving carrier with the lowest bid, or if a self -move is elected, payment can be
made to the displacee in an amount not to exceed the lower of the two bids. To assist in
filing a claim, the following is a list of expenses which are generally included:
14
55A -28
Relocation Assistance Proaram Brochure Business
1) Transportation of personal property from the acquired site to a replacement site
(limited to a distance of 50 miles).
2) Packing, crating, unpacking and uncrating of personal property to be moved.
3) Removal and reinstallation of appliances, machinery and equipment, including utility
connection charges.
4) Re- lettering of trucks, signs and similar items such as re- printing of business cards
and stationery made obsolete by the move.
5) Insurance of property in connection with the move, and reasonable replacement of
property lost or damaged where insurance is unavailable.
6) Storage of property for a period generally not to exceed 12 months, when the
Developer determines it to be necessary.
7) Any re- application fee for a professional license, permit or certification required by
a displacee for the replacement location.
1) Other moving and related expenditures that the Developer determines are
reasonable and necessary.
The following is a list of items which would NOT be eligible in a moving expense claim:
3
55A -29
1) Additional expenses incurred because of operating in a new location, except as
permitted under the reestablishment payment described in Subparagraph 1d listed
below.
2) Interest on loans to cover moving expenses
3) Loss of goodwill.
4) Loss of trained employees.
5) Personal injury.
6) Preparation of claim for moving and related expenses.
7) Other items the Developer determines are not reasonable and necessary
1. Payments Related to Personal Property Not Moved. A displacee may receive a payment for
actual direct loss of tangible personal property which is not relocated. Payment is
determined on the basis of the value of the property minus any proceeds from the sale of
the item or the cost to move the item whichever is less. Appropriate documentation to
support a claim, such as reasonable advertising costs, auction records, or other supporting
evidence, will be required.
A displacee may receive a payment for personal property which is not relocated, but rather
is replaced with substitute equipment at the replacement site. Payment is determined on
the basis of the cost of the substitute item minus any proceeds from the sale of the replaced
item or the cost to move the replaced item whichever is less. Appropriate documentation to
support a claim, such as proof of cost of substitute item installed, reasonable advertising
costs, auction records, receipts from sale proceeds or other supporting evidence will be
required.
When personal property is abandoned with no effort made by displacee to dispose of such
property, the displacee is not entitled to claim moving expenses or losses for the abandoned
items and may be required to reimburse the Developer for the cost to remove such items
from the property.
2. Searching Costs for a Replacement Location. A displacee may file for reimbursement of
costs to search for a replacement location, not to exceed $2,500. Such a claim must be
supported by accurate records of dates, times, locations, expenses, receipts, diaries and
similar evidence and may include the following expenses:
1) Transportation within a radius of 50 miles from the displaced site.
2) Meals and lodging while away from home, when receipts are presented as
documentation.
tl
55A -30
Relocation Assistance Program Brochure - Business
3) Reasonable time spent in searching, based on the individual's average hourly wage
rate.
4) Reasonable fees paid to real estate agents or brokers to locate the replacement
site, excluding any fees or commissions related to the purchase of a replacement
site.
d. Re- establishment Costs fora Business. A displacee may file for reimbursement of actual
and reasonable costs necessary to relocate and re- establish a business at its new site, not
to exceed $25,000. Such a claim must be supported by accurate records of dates, times,
expenses, fees, receipts and similar evidence, and may include the following expenses:
1) Repairs, improvements or modifications to the replacement site as required by law,
code or ordinance.
2) Construction and installation costs for exterior signing to advertise the business.
3) Provision of utilities from right -of -way to improvements at replacement site.
4) Advertisement of replacement location.
5) Licenses, fees and permits when not paid as part of moving expenses.
6) Estimated increased costs of operation during the first two years at the replacement
site.
K•
Instead of receiving payments as outlined in "Actual Reasonable Moving and Related Expenses" above, a
displacee may elect to receive:
A Fixed Payment In -Lieu of Actual Moving and Related Expenses. A fixed payment (in -lieu of actual
moving and related expenses) may be made and is computed on the basis of the average annual
net earnings of the displacee for the two years immediately preceding displacement and shall be in
an amount of not less than $1,000 or more than $40,000. To be eligible to receive an in -lieu payment,
the Developer must determine the following:
That the organization cannot be relocated without a substantial loss of existing patronage.
The term "existing patronage" includes membership, persons, community and /or clientele
served or affected by the activities of the organization.
2. That the business is not part of a commercial enterprise having no more than three other
establishments which are not being acquired for the project and which are engaged in the
same or similar activity.
3. The business is not operated solely for the purpose of renting the site to others.
55A -31
4. That during the two taxable years prior to displacement, the displacee's business must have:
1) Had average annual gross receipts of at least $5,000 or;
2) Had average annual net earnings of at least $1,000 or;
3) Contributed to at least one -third of the average gross income of the displacee.
To establish average annual net earnings a displacee must submit certified copies of income
tax returns for two years immediately preceding the taxable year in which the business is
displaced.
GRIEVANCE PROCEDURE.
If a displacee believes that a claim has been unfairly administered, the claimant may, within 60 days after the
claimant receives written notification, request review by the Administrator of the Developer.
Project occupants are encouraged to contact the Developer's Relocation Consultant, LACAL Consulting, Inc.
The Consultant's address and telephone number are listed below:
LACAL Consulting, Inc.
6535 Wilshire Blvd., Suite 205
Los Angeles, CA 90048
(323)951 -9887
www.lacalconsulting.com
55A -32
Relocation Plan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
UMMM
Public Comments and Response
55A-33
Relocation Flan for Santa Ana Arts Collective — 1666 North Main, Santa Ana, California
Relocation plan was available for 30 -day public review during June 1, 2016 and July 1, 2016. No
public comments were received.
55A -34
ROH — 12/06/16
RESOLUTION NO. 2016-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA ANA APPROVING THE RELOCATION PLAN FOR
THE SANTA ANA ARTS COLLECTIVE PROJECT
LOCATED AT 1666 N. MAIN STREET
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA, AS
FOLLOWS:
Section 1: The City Council of the City of Santa Ana hereby finds, determines
and declares as follows:
A. On November 3, 2015, the City Council awarded a Request for Proposal
to Meta Housing Corporation (Developer) for a pre -loan commitment of
inciusionary Housing Funds, Community Development Block Grant
(CDBG) and HOME Investment Partnership Program (HOME) funds, not
to exceed $4,635,000, for an affordable housing project called the Santa
Ana Arts Collective (Project) located at 1660 N. Main Street,
B. On February 3, 2015, the loan agreement for the CDBG and Inclusionary
Housing Funds was approved by the City Council.
C. The Project will be an affordable housing project with a preference to
applicants who are artists and working artists' families within Santa Ana
with a process that would meet Fair Housing and funding requirements.
The Project will provide 57 affordable units, as well as a community art
gallery, an art garden on the ground floor, a maker space, digital and
media lab, music room, performing arts room, and activity programs. The
project will be one of the first projects under the City's new adaptive reuse
ordinance and the first affordable housing complex with an artist
preference.
D. Based on California law, when state or local funds are provided to a
project which would lead to the displacement of people from their homes
and /or business, the legislative body must approve a relocation plan with
state funds.
E. The draft Santa Ana Arts Collective Project Relocation Plan has been
prepared in conformance with applicable provisions of California
Relocation Assistance Law and Relocation Guidelines as well as United
States Department of Housing and Urban Development (HUD)
regulations.
Resolution No. 2016 -_
F. All current Project occupants will need to be permanently relocated. The
needs and characteristics of the displaced population, available relocation
resources, and the Meta Housing Corporation's (Developer) program to
provide assistance to each affected person are general subjects of the
Relocation Plan. The Developer is utilizing LACAL Consulting, Inc. as
their relocation consultant for the relocation plan and services. The
Relocation Plan was completed on May 23, 2016,
G. Current occupants that will need permanent relocation are ten known
commercial businesses as a result of the Project. There is also a cell
tower on the site, however it will remain onsite during and after
construction. All occupants have been interviewed and provided
informational notices of the relocation plan in accordance with State and
Federal requirements. All project occupants received a copy of the draft
Relocation Plan with an Advisory Notice on May 27, 2016 describing the
public review and public comment period and providing an address to
send written comments and a phone number to call for verbal comments
or questions. There was one public comment received during the 30 -day
public review and comment period between May 28, 2016 and June 27,
2016, but it has since been rescinded. Accordingly, there are no public
comments for consideration. Furthermore, all occupants will be provided
relocation assistance including advisory services, moving costs, and re-
establishment services provided by the Developer and their relocation
consultant.
Section 2; The City Council hereby approves the relocation plan for the
Property located at the aforementioned address, and the establishment of an account in
accordance with state mandates for the payment of relocation benefits to the displaced
occupants.
Section 3: This Resolution shall take effect immediately upon its adoption by
the City Council, and the Clerk of the Council shall attest to and certify the vote adopting
this Resolution.
Resolution No. 2016 -
55A-36
ADOPTED this day of 2016.
Miguel Pulido
Mayor
APPROVED AS TO FORM:
Sonia R,,.C—grvgt o, City Attorney
Attorney
AYES: Councilmembers:
NOES: Councilmembers:
ABSTAIN: Councilmembers:
NOT PRESENT: Councilmembers:
CERTIFICATE OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached
Resolution No. 2016- to be the original resolution adopted by the City Council of
the City of Santa Ana on
Date:
Clerk of the Council
City of Santa Ana
55A -37
Resolution No. 2016-
55A -38