HomeMy WebLinkAbout10/03/2006, B2 - REQUEST BY THE PEOPLES' SELF HELP HOUSING CORPORATION FOR $500,000 FROM THE CITY'S AFFORDABLE HOUSI councit Mnd�D� 10-3-06
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C I TY OF SAN LU IS O B I S P O
FROM: . John Mandeville,Director of Community Developme
Prepared By: Kim Murry,Deputy Director, Long Range Planning wo
SUBJECT: REQUEST BY THE PEOPLES' SELF HELP HOUSING
CORPORATION FOR$500,000 FROM THE CITY'S AFFORDABLE
HOUSING FUND
CAO RECOMMENDATION
1. Determine that the Peoples' Self Help Housing Corporation's request for $500,000 for
construction of an affordable housing mixed-use project meets City Affordable Housing
Fund award criteria set by previous Council action.
2. Authorize the CAO to execute an agreement, upon approval by the City Attorney, with the
Peoples' Self Help Housing Corporation for a deferred payment loan of$500,000 from the
City's Affordable Housing Fund (AHF) and inclusive of other terms, as outlined in this staff
report.
REPORT-IN-BRIEF
The Peoples' Self Help Housing Corporation is requesting $500,000 from the Affordable
Housing Funds in the form of a deferred payment loan in order to construct their project called
the Villas at Higuera. The project is comprised of.28 apartment units restricted to low- and very
low-income families; a 3,000 square foot community room space for the residents; and 3,000
square feet of commercial space along the ground floor of the Higuera Street frontage.
Affordable Housing Fund award criteria adopted by the Council include six findings to address
project Eligibility, Need, Suitability, Urgency, Financial Effectiveness, and Readiness. The
Villas at Higuera project appears to meet all six criteria.
The project meets key Housing Element Program goals; has obtained all of the required
discretionary approvals; and has construction permits under review. The project funding comes
from a mix of sources including a CDBG grant from the City in 2002 to fund property
acquisition; three years of HOME funds (federal grant funds administered by Housing and Urban
Development); a Federal AHF Home Loan; Low Income Housing Tax Credit funding and a loan
from Washington Mutual Bank, however, there is a $500,000 gap in financing for the project.
The project will lose its Low Income Housing Tax Credit financing if the construction is not
initiated in November of this year.
Peoples' Self Help Housing Corporation Request—Affordable Housing Fund Page 2
DISCUSSION
Affordable Housing Fund Background
Established in 1999, the AHF implements the City's Inclusionary Housing Program and is
funded by the payment of in-lieu affordable housing fees. The Fund has a balance of$2,983,400.
Ordinance 1438 which established the fund describes it as a "fund established and administered
by the City, containing in-lieu fees and other funds held and used exclusively to increase and
improve the supply of affordable housing." The Ordinance also says the fund shall be
administered by the Finance Director and is allocated "at the discretion of the City Council."
Uses of the Affordable Housing Fund to date include:
1. In 2002, the City approved a grant of $215,000 for Judson Terrace Lodge to help
construct a 32-unit apartment project for frail, low-income elderly persons.
2. In February, 2004, the second award for AHF funding ($60,000) was approved for start-
up and operating costs of the San Luis Obispo County Housing Trust Fund.
3. A third grant request from Sojourn Services, Inc. for $25,000 was denied because it did
not meet the award criteria.
4. In 2005, a request for$600,000 from the Housing Authority was awarded as a no-interest
loan. The funds were loaned rather than granted outright due to the timing of the project:
the funds were used for site acquisition and actual construction of the project is still
several years away.
5. In spring, 2006, a second award of$60,000 was granted to the Housing Trust Fund to
assist in on-going operating costs (yet to be disbursed).
Affordable Housing Fund Balance
At the end of the Fiscal Year 2005-2006, the balance in the Affordable Housing Fund was $2.9
million. Cumulative revenues and expenditures as of June 30, 2006 are shown below:
2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 Total
In-lieu Fees $193,700 464,900 747,800 60,500 323,300 1,863,700 3,653,900
Interest 8,200 20,000 28,300 8,500 19,900 39,300 124,200
Expenditures 0 0 215,000 30,000 30,000 600,000 875,000
NET $201,900 484,900 561,100 39,000 313,200 1,303,000 2,903,100
City of San Luis Obispo,Finance Department
Criteria for Use of Affordable Housing Funds
The AHF, the first such fund established in San Luis Obispo County, is relatively unfettered by
the "strings" associated with State and Federal funding, making it exceptionally flexible and
valuable for meeting local housing needs. Projects receiving City funds must meet State law
regarding prevailing wage requirements, and this means developers of most assisted affordable
housing developments must pay prevailing wages. Since AHF can be meted out at Council's
sole discretion, the process is simple, direct, and efficient, without the long lead times associated
Peoples'Self Help Housing Corporation Request—Affordable Housing Fund Page 3
with multi-agency grants. AHF funds are the City's most direct financial tool to provide direct
funding assistance for the purchase, rehabilitation or construction of affordable housing.
Because the funds have been collected "in-lieu" from developers who chose to pay a fee instead
of actually building required affordable housing, it is essential that Council allocate funds in a
way that maximizes public benefits while considering both housing needs and opportunities.
Council funding decisions must be guided by consistency, fairness, and reasonableness, and to
assist that effort, Council adopted the following criteria in Resolution 9263 (2001 Series) when
considering Affordable Housing Fund requests:
1. Eligibility. Use of the Affordable Housing Fund will increase or improve affordable
housing and promote General Plan policies regarding housing and related community.goals.
2. Need. There exists a substantial and overarching need for the type of housing to be assisted.
3. Suitability. The project to be assisted is appropriate for its location, both in terms of land
use and design.
4. Urgency. There exists an urgent or overarching need for the type of housing to be assisted.
5. Financial Effectiveness. But for the requested assistance, the project would not be
economically feasible; or AHF funding"leverages" significant additional funding from other
sources.
6. Readiness. The project has all necessary City approvals and is ready to proceed.
A funding request may not meet all of these criteria, or may only partially meet one or more .
criteria. This is, by nature, a subjective process in which the criteria provide a way to compare
requests against City housing objectives and other practical considerations. Requests that meet
most or all of these criteria are more likely to maximize public benefit and therefore, merit City
support. Even if a request appears to meet these criteria, Council may still opt not to fund a
particular request or to fund only a portion of the request. Council may instead choose to "save
up" in-lieu fees to wield a greater funding effect on a single large, future housing development or
to offer a significant incentive to encourage a specific type of affordable housing. In the analysis
below, each of the six funding criteria will be discussed and referenced in the appropriate section.
Proposed Project—The Villas at Rignera
The project is a mixed-use development consisting of 3,000 sq. ft. of commercial space along the
ground floor of the Higuera Street frontage, a 3,000 sq. ft. community room space for the
residents, and 28 low and very low-income. apartments. The Peoples' Self Help Housing
Corporation is requesting $500,000 in the form of a deferred payment loan to assist in paying for
the construction of this project known as the Villas at Higuera. The .96 acre site, the former
location of McBride's Plumbing, is located at 3085 S. Higuera Street (Attachment #1 — Vicinity
Map). Peoples' Self Help Housing Corporation owns the property and has obtained all
discretionary approvals: The Planning Commission approved the project on August 10, 2005 and
the Architectural Review Committee approved the design and layout on August 15, 2005. The
McBride's plumbing building has been demolished and site cleanup is complete. Building
permits have been submitted and are currently in review (#060379 and #060381). AHF Criteria
#6 (Readiness) and #3 (Suitability) are met in that the project has its approvals and is ready to
proceed.
Peoples'Self Help Housing Corporation Request—Affordable Housing Fund Page 4
The chart below shows the typical rents that would be charged based upon the income of the
occupant.
Typical Rents
Type of Dwelling Percentage of Area Median Income
30% 45% 50% 600/6
Studio(6 units) $300 $470 $500 $600
1 Bedroom (6 units) $319 $499 $550 $650
2 Bedroom (7 units) $375_ $585 . $650 $750
3 Bedroom (9 units) $435 $680 $760 $900
Future year rent increases are based upon annual percent increase in area median income as published by
Housing and Community Development.
With typical market-rate rental prices averaging from approximately $797 for a one bedroom to
$1,458 for a three bedroom apartment(SLO Chamber of Commerce survey, 2005),very few low-
income families can afford to rent in the City of San Luis Obispo. The need is overarching and
urgent as called for in AHF funding Criteria#2 (Need) and#4(Urgency).
All 28 apartments will assist low income persons: 21 of the units will be reserved for renters
with income ranges from 30%-50% of the Area Median Income (which is characterized as
extremely low and very low-income) and seven units will serve persons having between 50%-
60% of the Area Median Income. This meets funding Criteria#1 for Eligibility.
Project Funding Strategy
The project leverages over eight million dollars from other private and public sources, including
Washington Mutual Bank, Low-Income Housing Tax Credits, Federal Home Loan Bank
Affordable Housing Funds, and County Home Funds. The breakdown of funding sources
shown below highlights how difficult and complex it is to finance and build an affordable
housing project. While the City contributed $340,000 in CDBG funds in 2002 for property
acquisition, the current request is necessary to fill the construction financing gap. The Peoples'
Self Help Housing Corporation recognized that there would be a funding gap early on and
requested additional CDBG funds in 2005. However, the funds in that year were awarded to the
Housing Authority for a project site acquisition because the Villas at Higuera project had not yet
obtained Planning Commission approval. Delays have contributed to increases in costs. -The
Gulf Coast hurricanes and the recent steady rise in oil prices have hit the building industry with a
significant increase (over 50%) in construction costs.. The project was delayed due to the
development of the Airport Land Use Plan (with resulting restrictions) and the need to obtain
several years of HOME funds. Peoples' Self Help Housing Corporation will lose its Low Income.
Housing Tax Credits if construction is not initiated in November of 2006.
The Affordable Housing Fund monies are to be awarded in the form of a loan with 3% simple
interest(calculated yearly on the principal amount). The loan will be due in a balloon payment
of principal and accumulated interest after 55 years unless the loan is renegotiated at that time.
The Table below shows the expenses and funding sources for the project: $500,000 is the amount
required to finalize the funding required for the project.
Peoples'Self Help Housing Corporation Request—Affordable Housing Fund Page 5
EXPENSES FUNDING SOURCES
City of SLO—CDBG 2002 for 340,000
Land 700,000 property acquisition
Demolition 73,000 County of SLO HOME 2002 5002000
Construction 61600,000 County of SLO HOME 2004 288,000
Construction Loan Interest 4752000 County of SLO HOME 2005 125,000
Architectural, Engineering& Soils 400,000 Federal Home Loan Bank AHF 180,000
Low Income Housing Tax
Other Consultants 85,000 Credits 6,100,000
Insurance 150,000 Washington Mutual Bank Loan 900,000
School Fees 50,000 City of SLO AHF—Requested 5009000
PSH Costs 400,000
TOTAL 8,933,000 TOTAL 8,933,000
The Peoples' Self Help Housing Corporation is requesting a deferred payment loan. If the units
transition to market rate units at any point, the principal and interest must be repaid to the City.
While this appears to have the same characteristics as a grant, it is the preferred approach in this
instance by Peoples' Self Help Housing Corporation because awarding the money in the form of
a grant would decrease the amount of tax credit funding by the amount of the award. A
traditional loan with interest would be problematic in that the revenue stream to repay the loan
comes from the rent collected from the units. The apartments being constructed in this project
will be restricted to low-, very low-, and extremely low-income qualifying residents and
repayment would not be feasible given the small amount of rental income collected. AHF
Criteria #5 (Financial Effectiveness) is met because the project leverages significant additional
funding from other sources.
Key Loan Terms
We recommend authorizing the CAO to. enter into appropriate loan documents, subject to
concurrence by the City Attorney as to form,based on the following key terms:
• Principal Amount $500,000
• Term 55 years (coincides with project's tax credit funding)
• Interest Rate 3 %simple interest annually on the principal balance only
• Payment Terms Deferred "balloon"payment on both the principal ($500,000)
and cumulative interest ($825,000) at the end of the term
• Performance Units must be ready for occupancy within 30 months after loan
agreement execution,unless an extension is approved by the
Director of Community Development
• Hold Harmless The City will not have any liability for the construction or
operation of these units
• Assignment Requires consent by the City of San Luis Obispo
• Security Secured by a Deed of Trust, which will be subordinate to any
primary lenders
2-s
Peoples' Self Help Housing Corporation Request—Affordable Housing Fund Page 6
Housing Element Programs Analysis
The project will "increase affordable housing and promote General Plan policies regarding
housing" as shown in the discussion of Housing Programs that follows:
1. Program 6.3.7 Consider amendments to the General Plan to rezone commercial
areas for residential use and promote higher density, infill housing. Housing
program 6.3.7 lists seven specific areas to be considered for possible rezoning, area"b" is
the Mid Higuera corridor between Fontana Avenue and Prado Road of which the subject
site is included (Attachment 2). Construction of this project will help the City fulfill the
General Plan policy for housing provision in this area.
2. Program 6.3.9 Balance City efforts to focus as much on infill and densification
within City limits as on annexation of new residential land. The proposed project is a
mix of commercial and apartment housing and is a perfect example of taking advantage
of infill and densification sites within the City limits.
3. Program 63.12 Financially assist in the development of 90 new ownership or rental
units affordable to very-low, low- and moderate income households during the
planning period using State, Federal and local funding sources. This project is
comprised of 28 units solely reserved for families who qualify for extremely low-, very
low- and low-income housing. The Villas at Higuera is a unique project in that the units
will not be restricted to senior housing and will fill a need that is not served elsewhere in
the city.
There have been 45 units completed since January 1, 2004 that count toward this goal of
90 units: 32 very-low income senior apartment units at Judson Terrace Lodge; seven
moderate income houses at De Tolosa Ranch; and six moderate income units at Rancho
Obispo Homes. Once complete, these 28 units will bring the total to 73 units developed
to meet this goal. In addition, the project has secured both private and public funding
sources including Low-Income Housing Tax Credits, Federal Home Loan Bank
Affordable Housing Funds and County Home funds.
The request meets all six findings for Affordable Housing Fund allocation. The project has
received all of its land use approvals and has construction drawings under review. The Council
awarded CDBG funds for this site in 2002 to assist Peoples' Self Help Housing Corporation in
acquiring the site for this housing development. The Peoples' Self Help Housing Corporation has
an excellent record of developing and managing housing developments.
The proposed project meets housing program goals for providing units affordable to those
families meeting low-, very low- and extremely low-income requirements in the form of infill
rental housing. The project is not age-restricted which provides a housing product that is not
otherwise readily available in the community.
—fie
1
Peoples' Self Help Housing Corporation Request—Affordable Housing Fund Pagel
FISCAL IMPACT
AHF funds are derived from the Inclusionary Housing in-lieu fees and not part of the General
Fund. Approving a 3%deferred payment loan of$500,000 for the Peoples' Self Help Housing
Corporation will deplete these funds by that amount, leaving a balance of over$2,400,000 in the
fund. The only other upcoming request for Affordable Housing Funds that staff is aware of is the
$400,000 commitment to match the BEGIN funds for the affordable units in the Tumbling
Waters project. Granting the request from Peoples' Self Help Housing Corporation and the
upcoming commitment to the Tumbling Waters project will still leave a balance of over
$2,000,000 in the Affordable Housing Fund.
ALTERNATIVES
1. Allocate the$500,000 from the AHF as a grant rather than a loan.
While grants are easier to administer and do not involve the payment terms, schedule, and
monitoring inherent in loans, an outright grant in this situation would count against the tax credit
financing the Peoples' Self Help Housing Corporation has obtained. Although difficult to project
due to its history of fluctuation, the AHF will continue to grow. Over the six-year period of
collection, over 3 1/2 million dollars have been collected, an average of$516,000 a year. In this
case, a deferred payment loan is appropriate because the development of the affordable housing
project is imminent and a grant would actually reduce the total amount of financing available for
the project. A traditional loan with interest would be problematic in that the revenue stream to
repay the loan comes from the rent collected from the units. The apartments being constructed in
this project will be restricted to low-, very low-, and extremely low-income qualifying residents
and repayment would not be feasible given the small amount of rental income collected.
2. Consider CDBG (Community Development Block Grant) funds instead of the
Affordable Housing Fund.
The funding requested is needed in November, and it would not be possible to provide CDBG
funding in that timeframe because CDBG funds for the current 2006-2007 year have already been
awarded and funding for the 2007-2008 year will not become available for another year.
3. Fund the request at a lesser amount.
Funding the request at a lesser amount would increase the "gap" in financing and jeopardize the
State's Housing Tax Credits assigned for this project. It is large enough to make a significant
difference assisting construction of these rental units while still maintaining a balance of over $2
Million in the City's Affordable Housing Fund.
4. Deny the funding request.
This approach would undermine the City's efforts to take strong, innovative steps to address
affordable housing needs and to continue working closely with the Peoples' Self Help Housing
Corporation. The project needs this funding to complete construction of these affordable units.
Attachments
Attachment 1 - Vicinity Map n
h — �
Peoples'Self Help Housing Corporation Request-Affordable Housing Fund Page 8
Attachment 2-Housing Element proposed infill sites
Attachment 3 - Request for Funding (Letter from Peoples' Self Help Housing Corporation dated
August 7, 2006)
I:\Housing\CC Rpt PSHH Request for AHF 10-3-06
NOTE: If the loan documents are ready prior to the October 3, 2006
meeting, copies will be available for review in the Council
reading file.
!
Peoples' Self Help Housing Corporation Request-Affordable Housing Fund Page 9
ATTACHMENT 1
VICINITY MAP
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Peoples' Self Help Housing Corporation Request—Affordable Housing Fund Page 10
ATTACHMENT 2
HOUSING INFILL SITES
6.3.7 Initiate amendments to the General Plan and rezone commercial, manufacturing or public
facility zoned areas for residential use, to promote higher-density, infill or mixed-use
housing where appropriate. For example, areas to be considered for possible rezoning
include,but are not limited to the following sites (shown in Figure 1):
a) Little Italy district and portions of Broad Street corridor
b) Mid-Higuera corridor, between Fontana Avenue and Prado Road
c) 791/861 Orcutt Road
d) Both sides of Ferrini Road,between Cerro Romauldo and Felton Way
e) 3730 South Higuera Street
f) 1642 Johnson Avenue and 1499 San Luis Drive(rezone vacant and underutilized
school district property)
g) 1030 Southwood Drive
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Peoples'Self Help Housing Corporation Request—Affordable Housing Fund Page 11
ATTACHMENT 3
PEOPLES' SELF HELP HOUSING CORPORATION LETTER
REQUESTING FUNDS
/\y Peoples' Self-Help Housing Corporation
August 7,2006
Kim Murry,Deputy Director
Community Development Dept.
City of San Luis Obispo
990 Palm Street
San Luis Obispo,CA 93401-3249
RE: Request for Affordable Housing Funds
Villas at Higuera,3085 South Higuera(formerly McBride's Plumbing Site)
Dear Ms.Murry.
We respectfully request an allocation of$500,000 from the City's Affordable Housing
Fund for construction of The Villas at Higuera,our 28-unit affordable housing'
development. We have previously discussed and received encouragement for this request
from Doug Davidson,former Housing Programs Manager. The Villas at Higuera is a
"smart growth"mixed use project on an infill site. It consists of the demolition of the old
McBride's plumbing facility and construction of 28 low and very low-income
apartments,3,000 square feet of resident community room.space,and 3,000 square feet
of commercial space along the Higuera frontage. The demolition and site cleanup are
already completed. The project received a City CDBG award of$340,000 in 2002 to
partially assist with site acquisition.
We believe that this development meets the six criteria established by the City for
awarding Affordable Housing Funds:
1. Eligibility
Use of the Affordable Housing Fund for the Villas at Higuera will increase the
City's affordable housing inventory by creating 28 new,permanently affordable
rental housing units.
2. Need
There is a substantial need for this type of housing,as documented in the City's
Housing Element.
3. Suitability
The project is consistent with the City's General Plan,zoning ordinances,and
Mixed Use overlay.The design was unanimously:supported by the City's
Architectural Review Committee,with the suggestion that the project consider
applying for an American Planning Association award. The project also received
strong support and unanimous approval from the City's Planning Commission.
•9533 Emp eo sheat
Son Luis Obissppoa California 93401 26 E.Vidoria Stteel
TEL 1805)791.3088 Santo Barbara,Califonnio 93101 ❑
FAX:(805)544-1901 TL .5152
Email:odminepshhc.org FAX:1805{962
8051962-8152
w .pshhc.org Email:sbof6cefpshhcarg
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Peoples' Self Help Housing Corporation Request—Affordable Housing Fund Page 12
Peoples' Self-Help Housing
Request for Affordable Housing Funds
August 7,2006
4. Timing
Affordable housing is a critical need in the City,and the City is best served by
building the Villas at Higuera sooner rather than later. Additionally,the project
recently leveraged commitments of highly competitive Low-Income Housing Tax
Credits,which would be lost and penalties assigned to Peoples'Self-Help
Housing if the project does not start construction by November 2006.
5. Financial Effectiveness
This project is not economically feasible without assistance from the City's
Affordable Housing Fund. All 28 units will assist low-income persons:21 will
serve income rkinges from 30%-50%of Area Median Income(Extremely Low
and Very Low-Income),.and 7 will serve persons from 50%-60%of Area
Median Income. Additionally,the project leverages over$6 million from other
private and public sources,including Washington Mutual Bank,Low-Income
Housing Tax Credits,Federal Home Loan Bank Affordable Housing Funds,and
County Home Funds.
6. Readiness
The Villas at Higuera has all the necessary approvals and is ready to proceed.
The City's Planning Commission approved the project on August 10,2005. The
Architectural Review Committee approved the project on August 15,2005.
Construction drawings are currently in review by the City's Building Department.
As mentioned above,the project must start construction by November 2006,or
face serious consequences from the State's Tax Credit Allocation Committee.
We appreciate how the City staff;Council and Advisory Bodies have continually
supported our development of the Villas at Higuera. We are excited to be almost in
construction,and look forward to working more in the future with the City.
Si
��th /
D ty Director
Peoples' Self-Help Housing
Opinion on Measure "J"
In August 2006, I attended a "fact-finding" session facilitated by
Supervisor Jerry Lenthall. SLO Council of Governments (SLOCOG),
Cal Trans, Regional Water Quality Control Board, and the City of SLO
gave presentations.
Without exception, they observed serious flaws in Measure J. Here are
just a few:
♦ Half of the developer's financial contribution to the Prado Road
Overpass is "soft money." In other words, it's "land for a right-of-
way," that they are contributing. The land contribution is inflated ($4
Million?) beyond its assessed value, and is a small fraction of the total
estimated cost of the overpass. And there is no escalation clause to
cover the increase in future construction costs and costs of materiel.
The overpass is now estimated to cost nearly 40 Million, and those costs
will increase dramatically before construction starts.
♦ Other developer contributions to surface street improvements on
LOVR and Madonna Road are "time-conditioned." Projects must be
planned, approved, permitted and underway within one year, or the
money reverts back to the developer.
♦ The vast majority of the cost of building the overpass will be borne
by the taxpayers. In the event of a Mello Roos District, some of the
costs will be borne by the businesses and residents (if any) that occupy
the MRD. THE DEVELOPER PAYS NONE OF THESE COSTS.
♦ BUT MOST IMPORTANT is the potential for the redirection of
major project funding away from Cities that are already in the process
of planning transportation infrastructure improvements and have
projects waiting for State Transportation Improvement Program
(STIP) funding. For those of us in South County, that means Brisco /
Halcyon, a project we have been waiting for, for 8 years. IT WILL BE
PUT ON HOLD! For those in North County, that means Hwy 41 / 101
and Hwy 46 / 101.
I am not easily alarmed these days, but in this case, I am very concerned
with the potential impact that MEASURE "J" will have on Arroyo
Grande.
As the current president of the SLOCOG Board, I wholeheartedly agree
and support the Staff analysis on traffic. LOVR and Madonna Road
WILL FAIL. How do I know? Because they are FAILING NOW.
During peak periods both the N/B and S/B off-ramps at LOUR are
queuing back to the Hwy 101 main line. This is happening today, and
without the full build-out of Froom Ranch.
The very first time a vehicle queues into the #2 lane on 101 and there is
an accident, Cal Trans will request emergency funding. They are
statutorily responsible for ensuring the safety of the State Highway
System. SLOCOG believes, and so do I, that this request will trigger
the redirection and reprioritizing of STIP funding from existing
projects along the 101 Corridor. Again, for Arroyo Grande, that is
Brisco / Halcyon.
Finally, I am pleased to announce that the City Council of the City of
Arroyo Grande, at it's September 26, 2006 Council Meeting,
unanimously voted to OPPOSE MEASURE "J" ON THE NOVEMBER
BALLOT. To summarize:
1. Cal Trans analysis does not support this project.
2. SLOCOG analysis does not support this project.
3. RWQCB does not favor the Sewer and Sanitation plan proposed
by this project.
4. The City of SLO does not support-the project.
5. The Developer stated, "He doesn't know where the money will
come from" for traffic mitigation.
6. The Developer HAS NOT sufficiently addressed the FLOOD
ZONE issue.
7. The Developer HAS NOT sufficiently addressed the SEWER and
SANITATION issues.
8. The Developer pays a small fraction of the costs for the PRADO
ROAD OVERPASS. YOU (ALL OF US) PAY THE REST!
9. Traffic impacts from MEASURE J, will TAKE MONEY AWAY
FROM LOCAL COUNTY-WIDE PROJECTS ALONG THE
HWY 101 CORRIDOR.
I URGE YOU TO VOTE "NO", ON MEASURE J.
Tony Ferrara
Mayor
City of Arroyo Grande