HomeMy WebLinkAbout11/21/1995, 2 - CONSIDERATION OF AMENDMENTS TO THE CITY'S COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FOR FISCAL YEARS 1994 AND 1995 (FIRST AND SECOND PROGRAM YEARS). III�uIWll�ll�ln�l I�IMEFnNG DATE:
Cio San WIS OBISpo -
COUNCIL AGENDA REPORT I N
FROM: Arnold Jonas, Community Development Director; By: Jeff Hoc ssociate Planner
SUBJECT: Consideration of amendments to the City's Community Development Block Grant
Program for Fiscal Years 1994 and 1995 (First and Second Program Years).
CAO RECOMMENDATION: By motion, recommend that the Board of Supervisors: 1)
amend the FY 1995 CDBG Program to allow EOC Family Planning to use$121,000 to purchase
a clinic at 705 Grand Avenue (new location); 2) amend the FY 1995 CDBG Program to
reallocate$150,000 from the Marsh Street Curb Ramps project to the Carnegie Library remodel;
3) amend the FY 1994 CDBG Program to reallocate $8,000 from the At-Risk Youth Services
Program to the Carnegie Library remodel; and 4) modify the Seismic Retrofit Loan program for
the FY 1994 and FY 1995 CDBG Programs to a grant program and allow grants of up 25
percent of total retrofit cost, not to exceed $25,000.
DISCUSSION ;
The City is almost halfway through its Fiscal Year (FY) 1995 Community Development Block
Grant (CDBG) Program. Several program changes are recommended to the City's First and
Second Program years (FY 1994 and FY 1995) to address changing conditions and community
needs. CDBG program years run from July to June of the following year; however
jurisdictions may take longer than one year to expend the funding provided that reasonable
progress is being made. Under federal guidelines, most changes to*approved CDBG activities
require a public hearing and amendment of the Urban County's Final Statement. The City's
proposed changes,plus other program amendments countywide, are tentatively scheduled for the
San Luis Obispo County Board of Supervisors' December 5th hearing. The ,County and
Department of Housing and Urban Development(HUD)are likely to support the City's proposed
changes, provided that the changes comply with eligibility criteria and national objectives, and
with funding caps for public services and administration. Staff has evaluated the changes and
determined that they are consistent with HUD rules. The proposed changes are as follows:
1. EOC Family Planning Clinic. Council allocated $121,000 in FY 1995 to the EOC
Family Planning Clinic to purchase property that it was leasing at 1306 Higuera Street.
EOC encountered difficulties in negotiating the purchase of that property, and would like
to reallocate those funds to purchase an existing clinic located at 705 Grand Avenue.
EOC feels this property meets its clients' needs better than the Higuera Street facility.
The facility is well located for easy client access, has about 500 square feet more office
space than EOC's current space, and comes well-equipped with six examination rooms.
The R-3 zoned property is currently vacant, and has been occupied by medical uses for
many years. The Community Development Director determined that the family planning
clinic would be an appropriate use at this location since it is a continuation of the
previous non-conforming medical use.
The County of San Luis Obispo, which allocated $229,000 to the EOC for purchase of
a clinic in its FY 1995 CDBG program, supports the planned purchase of the Grand
�uh�m►►i�illllilllp°�°�9� 11 city of San L. IS OBISpo
i COUNCIL AGENDA REPORT
Staff Report
Page 2
Avenue facility (letters from EOC Family Planning and the County are attached).
2. Marsh Street Handicapped Ramps. This project has proceeded without needing or
using CDBG funds, and the entire $150,000 is available to fund one or more eligible
projects. It is recommended that the Council reallocate the project's funding in its
entirety for the repair and remodel of the City-owned Carnegie Library building. The
grant would be used to improve handicapped access, seismically strengthen the building,
and, where allowed by HUD rules, to make necessary repairs and upgrades to meet
current building codes for this historic building.
3. At-Risk Youth Services. This program was allocated $80,000 in FY 1994; however
$8,000 of that amount was not spent and is available to reallocate to other programs.
It is recommended that the entire $8,000 be used to help fund the Carnegie Library
remodel, since the total amount of funding needed to complete the remodel is estimated
to cost at least $400,000.
4. Seismic Retrofit Loan Program. The FY 1994 CDBG Program includes $120,000 for
a Seismic Retrofit Loan Program, and an additional $79,000 was allocated for this
program in FY 1995. Under this program, property owners of unreinforced masonry
(URN) buildings are eligible for an interest-free loan of up to 20 percent of the cost of
retrofitting their buildings, not to exceed $20,000 per building. There is no interest
charged on the unpaid balance, and loan principal must be paid back upon sale of
building, or in 20 years, whichever comes first.
The public response to the Seismic Loan Program has been somewhat disappointing, with
only two loan applications having been submitted. Given the difficulty and cost of
seismic retrofitting, staff believes that program changes are needed to make the program
more attractive and to stimulate retrofitting activities. Moreover, given statewide goals
for reducing earthquake hazards, the importance of retrofitting to maintain public safety
and protect property, and the important role retrofitting plays in preserving historic
buildings, converting to a grant program would be cost effective and serve the public
interest. HUD rules allow the City to disburse the funds as a loan or grant. Staff
recommends that the Council amend the program as follows:
A. Direct the CAO to repackage the seismic retrofit program as a grant, with a total
funding of $199,000 for FY 1994 and FY 1995, retroactive to the two pending
loan applications; and
B. Increase funding caps from 20 percent to 25 percent of project costs, or $25,000
per building, whichever is less, with the changes to apply to both program years.
I
�����►�►►��Iflllll�pp1 ll�lli city of San L"I S ogi spo
Niis COUNCIL AGENDA REPORT
Staff Report
Page 3
FISCAL IMPACT
The proposed amendments primarily affect the nature and timing of CDBG programs, and will
not have a significant fiscal impact. Converting the Seismic Loan Program to a grant program
will mean that the City will not receive$199,000 in repaid principal, funds that would have been
available to reloan at some point in the future. This is not considered a significant impact in the
foreseeable future, since commercial properties tend to change hands much less frequently than
do residential properties. As a result, loan payback for many of the participating property
owners may be deferred for 20 years. Interest-free loans paid back in 20 years will be
discounted due to inflation, with repaid dollars worth substantially less than the initial loan
amount.
Converting the program to a grant will provide a strong incentive for property owners to
participate. Unlike loans, grants do not cloud property title and do not need to be repaid. By
providing additional incentives to retrofit URM buildings, the City will accelerate URM retrofit
activities locally, encourage preservation of historic buildings and provide a stronger catalyst for
downtown economic reinvestment.
ALTERNATIVES
1. Make no changes to the Seismic Loan Program at this time; or retain the loan program
but raise maximum loan amounts to 25 percent of total retrofit cost or $25,000,
whichever is less;
2. Reallocate Marsh Street Handicapped Ramp Project funds to one or more eligible
projects other than the Carnegie Library Remodel. Staff does not recommend this
approach because of the urgency of needed repairs to the old library building, currently
used 'as the County Historical Museum. The building needs seismic retrofitting,
handicapped access improvements, and basic repair work to make the building
waterproof, safe and functional for public use.
Attachments
LJX-CDBG=C.Mt
�-3
NUMBER VITY TOTAL PENT BALANCE
COUNTY ALLOCATION:
5ecils 1Homeless shelter operation by EOC 95,000.00 95,000.00
P,TI5cc)0 Homeless outreach and ease management 25,000.00 25.000.00
Transitional Housing by SLO Non-Profit Corp 20.000.00 20,000.00
pqscooi.4 Shandon Water Storage Tank 128,353.00 128,353.00
P!j Acquisition of EOC Family Planning Clinic 229,000.00 229,000.00
rel 7CL Economic Development Program by EVC 154,748.00 154,748.00
P115�'L -j Oeeano community center feasibility study 25,000.00 25.000.00
Supportive housing feasibility study 25,000.00 25,000.00
Implementation of housing&economic programs by county 10,000.00 10,000.00
?j,.5C4D I Administration by county 195,000.00 195,000.00
fir Z\I C✓ CC Administration by Grover Beach&Pismo Beach 16,708.00 16,708.00
PLf.5C01� SUBTOTAL:COUNTY ALLOCATION 923,809.00 0.00 923,809.00
SPECIAL URBAN PROJECTS FUND:
rj Women's Shelter Server Extension 63,000.00 63,000.00
pel*w 15X I SLO Homeless Service Center 25,000.00 25,000.00
P SL( 3 1 Atascadero Loaves and Fishes Center Acquisition 25,025.00 25,025.00
fq 5�5(A t,41 Storage building for North County Women's Shelter 10,000.00 10,000.00
,q5 6I.1 Housing site acquisition by City of Grover Beach 40,000.00 40,000.00
SUBTOTAL:SPECIAL URBAN PROJECTS FUND 163,025.00 0.00 163,025.00
CITY OF ATASCADERO ALLOCATION:
Pc f Transitional Housing by SLO Non-Profit Corp 20,000.00 20,000.00
PqSCommunity Services Foundation Youth Activity Scholarship 5,000.00 5,000.00
T
PqS -T 3 Kids Unlimited Daycare 5,000.00 5,000.00
QS A.7 04 ADA Improvements to Atascadero Administration Building 25,500.00 25,500.00
P45 AT 45 Atascadero Recreation Center 25.000.00 25.000.00
4s AT-15&I Hazardous Fire Apparatus Exhaust Clean Air System 45,000.00 45,000.00
Atascadero Loaves and Fishes Center Acquisition 98,100.00 98,100.00
P�f1T Administration by city 25,000.00 25,000.00
SUBTOTAL:ATASCADERO ALLOCATION 248,600.00 0.00 248,600.00
CITY OF GROVER BEACH ALLOCATION:
,56Housing site acquisition by City of Grover Beach 135,854.00 135,854.00
SUBTOTAL:GROVER BEACH ALLOCATION 135,854.00 0.00 135,854.00
CITY OF PASO ROBLES ALLOCATION:
PRS PR Seismic retrofit assess== 74,000.00 74,000.00
PQS.P0.0a I st-time homebuyer assistance 174,670.00 174,670.00
P4 15 PR �3 Capacity building by city 34,190.00 34,190.00
ks P k 4q Administration by city 27,978.00 27,978.00
SUBTOTAL:PASO ROBLES ALLOCATION 310,838.00 0.00 310,838.00
CITY OF PISMO BEACH ALLOCATION:
frf:57pb 4 1 ADA improvements to Pismo Beach Veterans'Building 50,854.00 50,854.00
(42512150Requisition of rental housing by PSHHC c 85,000.00 85,000.00
SUBTOTAL:PISMO BEACH ALLOCATION 135,854.00 0.00 135,854.00
CITY OF SAN LUIS OBISPO ALLOCATION:
f45 ( Homeless shelter operation by EOC 120,000.00 120,000.00
4iSL 0 A At-risk youth program 100,000.00 100,000.00
I f� NfSL03 Transitional Housing by SLO Non-Profit Corp 20,000.00 20,E-00
✓q5 Children's Work Incentive Program 12,000.00 12,000.00
cJ:�A Acquisition of EOC Family Planning Clinic 121,000.00 121,000.00
q5 S(. Acquisition of facility for AIDS Support Network 206,000.00 206,000-00
Pg,-st-45-71 SLD Homeless Service Center 50,000.00 50,000.00
45 SL- (" Handicapped ramps installation on Marsh Street 150,000.00 150,000.00
R515L- Seismic Retrofit loan Program 79,000.00 79,000.00
Pqs SLI Administration by City of San Luis Obispo 95,720.00 95,720.00
SUBTOTAL:SAN LUIS OBISPO ALLOCATION 953,720.00 0.00 953,720.00
COUNTYWIDE GRAND TOTAL 2,871,700.00 0.00 2,871,700.00
)5Y 1�9 ' *40aZgAd
SAN LUIS OBISPO COUNTY
DEPARTMENT OF PLANNING AND BUILDING
ALEX HINDS
DIRECTOR
BRYCE TINGLE
ASSISTANT DIRECTOR
16, 1995 ELLEN CARROLL
ENVIRONMENTAL COORDINATOR
Dr. Cletsoway & Dr. Boyd BARNEY MCCAY
San Luis Obispo, CA CHIEF BUILDING OFFICIAL
NORMA SALISBURY
ADMINISTRATIVE SERVICES OFFICER
HAND DELIVERED
SUBJECT: STATUS OF GRANT FUNDS AVAILABLE FOR USE BY EOC TO PURCHASE
PROPERTY FOR THEIR FAMILY PLANNING CLINIC
I understand that the Economic Opportunity Commission of SLO County has expressed an interest in
purchasing property owned by you on Grand Avenue. Their realtor asked me to write this letter
explaining the source and status of grant funds they intend to use as purchase money.
The grant funds EOC referenced are from the federal Community Development Block Grant (CDBG)
program. The funds have been approved by Congress for the 1994/95 federal fiscal year CDBG
program.
Both the City of San Luis Obispo and the county conducted public hearings and approved the allocation
of CDBG funds for EOC to use in acquiring a family planning clinic facility. While the city and county
understood at the time they approved the funding that the proposed site was not your property, EOC can
request that the funding be allowed for a new site. We have advised EOC to request clearance from the
city. If the city agrees to allow the funds to be used for acquisition of your property on Grand Avenue,
the county will also approve it.
Once city approval for this location is obtained, the county will complete any required documentation of
compliance with federal environmental laws (which should consist merely of completing a checklist and
filing a notice of exemption). Also, we will prepare a contract with EOC regarding the use of the
approved CDBG funds.
Once these tasks have been completed, the county can obtain the CDBG funds and deposit them into
escrow in a very short time frame. This is because the county already has a grant agreement with HUD
regarding these CDBG funds, and the funds are transferred to the county via an i;lectronic letter of credit
residing in the county treasury. For example, if the county received a request For the funds on the 10th
of a month, assuming the tasks described above had been completed, the county would deposit the funds
into escrow by the 20th of the same month.
I would be glad to meet with you to discuss this matter and answer any other questions you might have.
If we do meet, we should also include Jeff Hook, my contact at the city on CDBG matters.
Sincerely,,
v
ana Cl Li,
Senior Pt r
c: Jeff Hook, City of San Luis Obispo Community Development Department
COUNTY GOVERNMENT CENTER • SAN Llns Owsro • CWFoRwA 93408 • (805) 781-5600 • FAx (805) 781-1242 OR 5624
10/11/1995 11:27 8057815624 PLANNING & BUILDING PAGE 02
EO4MILY PLANNING 80554• 49 P- 01
ANV
V14EALTH p FDtitCA7f N FOR ALL AGES
October 10, 1995
John Bussele
SW County Ping&Building Dept
County Government Center
San Luis Obispo,CA 93408
Dear Mr. Bussde•
!aM writing to request County approval of a change of,, i
cf.lon for the$350,000 in
Community Dev*P DM Bk I*Gant funds allocated to our gency fox the purchase of a clinic
facllity in San Luis Obispo. The new location is at 705 Grand Avenue, San Luis Obispo.
The building has berm vacant since August 1995, and came onto the market shartly thereafter.
The purchase price was reduced in September to$445,000,at which time we were in
negotiations with the crvaars of our current facility at 1306 Higuera. Two offers had been made
and countered. The owners had advised us that they would not come down furtherin price and
we determined that their price was unacceptable.
In r"cwchiltg cOnpsuble P(OPertice. wo found the 70S Grand Ave m a site better suited to our
needs. The Wft is larger,3065 aquas i, feet vs. 2$47,and is currently equipped with six
examination rooms. Tho location, accessibility to the local high school and public
transportation,and visibi$ty complied with all our criteria. Since our long term goal for our
cumt ate'wu to Mwvate to accommodate additions!ultmination rooms,the new tkcility
seems ideal as is.
h the Ghon term, WOW moMe-ations will be needed which are mostly cosmetic. There is no
Platt to change the exterior of the building other than through landscaping and signage. On the
interior,some shdv'ng for storage, Painting,Snoring,and an upgrading of an existing bathroom
to accommodate whtdchw access are projected.
We hope to relocate at the end of Doomber or begicning of January. please feel fine to call if
you have any further questions. And thank you for your assistance in this process.
Sincerely,
7. �Lr C
Jani ag Wolf ✓ _
Pro Director
1304 HIGLIERA STREET • SAN Luis Osrsro, CA. 93401 v»OM 805.544.2478 fnx 805.544-3649
O?-&
10/11/1995 11:27 805781562" PLANNING & BUILDTNG PAGE 03
(UPDATE ON
OFFICE SPACE FOR SALE OR LEASE
705 Grand Ave.
SAN LUIS OBISPO, CALIFORNIA
HAVE: I cmg standing medical office building. For 25+years it was the offices of Dr.
Cletsoway mid Dr. Boyd., Urologists. Dr. Cletsoway built the office in 1959
raid it has been in constant use since then. The beautiful creek setting ofTers
a wonderful serene environment.
PARKING: Parking lot on site, 10 spaces a-.
ALLOWED USES: All office uses plus rnedical,
OFFICE LAYOUT: I I rooms plus reception plus 2 large waiting areas (Floorpfan is available)
OFFICE SIZE: 3,065 square feet, as per appraisal.
LOT SIZE: Approximately 16,000 square feet, as per appraisal.
AVAILABILITY: Currently vacant
REDUCED PRICE: From $519,000 to $445,000
EQUITY $445,000
LEASE TERMS: $1.35 per sgff Gross
FINANCING: 11m owners will consider fnmucing the property and will consider an outright
sale, lease option, or a straight lease.
All of list infimuaGon in this packap is believed to lie reliable but is rwt guaranteed.All prospective buyers are encouraged
to verify all information.'1110 ImIn ty and infimnation is aA>ject hi change,widuhamil or prior disposition witluxst auticc.
For additional infunnation, please contact:
TI10MAS C. SWE M,,BROKER
REAL,PROPERTY INVF,STRIErm
570 MARSH SMUT
SAN LUIS OBISPO.CALIFORNIA
(805) 544-4422
Fax at (805)544-2742
E-111at1 at TSslo a@aol.conl
10/11/1995 11:27 8057815624 PLANNING & BUILDING PAGE 05
. A
/Y�Cti •��S o Sia�w
X01 � � ;e N w ., .•.. •;, y
to ♦ ` . /o �• . O/ / ^• 2 �•+,
y`` V pa•. � ♦ � ♦ y
xe
fir
/
37 f__r< f.. •.4 l
►'+ ; tiILLCREST
as, 99 In6 -try
2�9) 1 D ^ J
10
Zl 9 4 LZ
19
\J
l4 IS C1 �
) i ` -It
♦ Q�V z . In ♦ y o a
{
17 Q
i
.I Y e — _.ie.o S 4i
° a° J M � F
Is 75 %P1
....
o PV41LLIPS LANE ' Ile+ 23 •`p'J?l
xo
e•. e-
204 t @2S
30
-4 r'� f3 8 14 T Y
+O
C-
>
14 O O
c f ( 1 r + 11
•0f'�••�18 ... �..� ... i� ..w. •. . \ O
. ... .. 'NIf .w
S
a MILL V
C
r^
fi
4
10/11/1995 11:27 8057815624 PLANNING & BUILDING PAGE 04
O M N M v 1.1
6 PI v .... �
- R ■ e Y e ■ e M
M O
rn M 4
• U IC,1.
% k % % x %
d �o io 0 o v �o W
Irl .-1 N w
44 w
■ m a O _
N a a ZG
c
Ai
Ea E
o
u
a o
_i.._ x
b � `D mX0
x e ;
0 oc
I
I N u
I m y i
! v I.�
O a x O
I E wa o mac
m x I b -~�
� I
� 1
i
R M
N V
m %
tt+ I
f
Is
IV
Y 244 M
N
N
NICTIOLSON,SMITH & ASSOCIATt�