HomeMy WebLinkAboutAgenda Report - August 6, 1986 (92)n1UNCIL COMMUNICATIO-V Exhibit D
TO: THE CITY COUNCIL
DATE
FROM. THE CITY MANAGER'S OFFICE;
August 6, 1986
SUBJECT: PUBLIC HEARING TO RECEIVE PUBLIC INi'UT REGARDING THE PROPOSED HOTEL LOD
REPTOVATION PROJECT
At the July 16, 1986 Council meeting, Council adopted Resolution No. 86-108
(Exhibit A attached) authorizing the City of Dodi to apply for a Housing
' Develognent Action Grant to be made available exclusively for the Hotel Lodi
Renovation Project.
Council was apprised that the renovation of the Hotel Lxli is a $3.5 million
dollar public-private partnership projxt utilizing $110,000 of Lodi's CDBG
funds allocated for fiscal year 1956-87. other funding sources include State
HCD and conventional loans, as w.11 as limited partnership investment.
The proposed syndication participation in this project is based principally
upon an investment return of 8% to 10%. However, proposed changes in tax law,
particularly investment tax credits.(ITC), may reduce the attractiveness of the
syndication to prospective investors.
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Additional information, regarding the Housing Developnent Grant Program
provided Council at the July 16, 1986 Council Meeting, included:
1. Additional loans from the federal government are available which
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will serve to maintain the desired return on the limited partners
investment.
2. HUD is presently accepting applications for grants under HUD's
Housing Development Grant Program. This errant application must
be initiated through the local unit of government (City of Lodi).
3. Grant funds awarded under the program are to be used to support
the construction of substantial rehabilitation of residential
rental, cooperative, or mutual housing in which at least 20
percent of the units will be occupied by lower inccm families..
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4. HUD indicated the program's current funding level is 79 million'
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and will not be affected by congressional budget reductions.
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;; 5. Application selections.will be made and funds are to be obligated
by September 30,1986. The application deadline was Jury 21,
1986. The proposed grant amount to be requested by the City of
:. Lodi is $715,000.
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The Council also set a Public Hearing for Wednesday, August 6, 1986 at 7:30
p.m. to receive public input regarding the matter. In addition to the required
legalpublication regarding the hearing, copies of the Public Hearing Notice
were sent to the Lodi Senior Citizens Cc mlission and to the United Downtown
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Improvement District Chairman., (See Exhibit B attached).
A letter: supporting the proposed project and the City's application for. federal
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r assistance under the Housing Development Action Grant Program (HODAG) was
received from San Joaquin County Administrator, David D. Rowlands, Jr. (See
Exhibit C attached)
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Council cannunication
Page No. 2
Ca=nuty Development Director Schroeder advises that the City of Lodi did not
suLtTdt the housing Development Action Grant Application for the Hotel Lodi
Project because the developer did not have his loan in place from a private
lender.
Further, Mr. Schroeder advises that grant applications will be up for review
again in December if Council wishes to proceed at that tine. Houever, the
developer may wish to proceed with this project in a different manner.
ALICE M. REIM'IE
City Clerk
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NOTICE OF CONTINUED "UBLIC HEARING
THE CITY COUNCIL OF THE CITY OF LODI
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WILL CGNDUCT A CONTINUED PUBLIC HEARING TO RECEIVE
PUBLIC I11PUT REGARDING THE PROPOSED
HOTEL -LODI RENOVATION PRmTECP
NOTICE IS HEREBY GIVEN that on Wednesday, September 17, 1986 at
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the hour of 7:30 p.m., or as soonthereafter as the matter may be
heard, the Lodi City Council will conduct a continued public hearing
in the Council Chambers, City Hall, 221 West Pine Street, Lodi,
California, to receive public input regarding the proposed Hotel Lodi:
Renovation Project.
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The Hotel Lodi Rehabilitation Project will be apublic-private
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partnership project, incorporating participation of the following
public and private entities and programs: City of Lodi-Camamity
Developnent Block Grant; State of California Office of Housing and
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Canmmity DeveloEment-Special User Housing Rel^zbilitation Program;
The Savings Association Mortgage`' g CaYgaanY (SANi00) ; and the Daniels C.'
Logue Development and Construction Canxany of Sacramento
Upon canpletion the Hotel Loch., located at the corner of School
and Pine Streets, will provide 110 furnished residential.rental units
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available to low and moderate inccsne persons.
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If you are interested in further information, please contact
Rick Barnum, Associate Planner, City of Lodi Camamity DevelpEn nt
Department, 221. W. Pine Street, Lodi, or call 333-6711.
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All interested persons are invited to present their views on
this matter. Written statements may be filed with the City Clerk at
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hearing
any time prior to the scheduled herein and oral statements
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may be'made at said hearing.
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If you challenge, the Subject matter in courtyou may be limited
to raising only those issues you or saneone else raised at the Public
Hearing described in this notice or in written correspondence
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delivered to the City. Clerk at, or prior to, the Public Hearing.
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By Order of the Lodi City Council.
Alice` M. Reimche.
City Clerk
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Dated: September. 17,1986'
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