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HomeMy WebLinkAboutAgenda Report - October 1, 1986 PH (14)HOTEL LODI RFNOVATION PFDJFX.T The Council was rerunded that this matter has been before the City Council and the community now for several months. This is the fourth continuance of this public hearing, two at the request of the Lodi Downtown Business Association (LDBA) and two at the request of the project developer. Community Development Director Schroeder introduced the matter and recapped what had transpired at previous hearings regarding the subject. Mr. Schroeder then responded to questions posed by the Council. City Attorney Stein advised tie Council that the only issue before the Council is whether or not the City should fund the $110,000 of City of Lodi-Cammnity Development Block Grant Funds earmarked for the subject project. The following persons spoke regarding the matter - Mr. Mike Lapenta, 1718 Fdgewood Drive, Lodi, representing the Lodi Downtown Business Association urged Council to deny the grant. Mr. David F. Beatty, Attorney -at -Law, McDonough, Holland and Allen representing the developer of the proposed pel project, Daniels C. Logue, addressed the Council stating that they had not been contacted by representatives of the Lodi. Downtown Business Association. Mr. Beatty stated that. the proponents had a number' of ideas regarding the project which they felt would be workable and that they believe the project would help downtown. Mr. Bill Canepa, 131 South Orange, Lodi, urged the City not to become financially involved. Reverend Oscar Gross, representing the Rivergarden Retirement Hone indicated that he did not believe that the proponents of the project had researched nor prepared themselves sufficiently in the care of the elderly. The public portion of the hearing was closed. Discussion followed with questions being directed to staff. Council Member Pinkerton moved that the City withdraw the $110,000 of City of Lodi-Comamity Development Block Grant Funds earmarked for the subject project. The motion was seconded by Mayor Pro Tempore Olson and carried by unanimous vote. Council Member Pinkerton then moved that the Council - 1) challenge the integrity of the project as it was originally presented as a senior citizens project. 2) challenge right -of non -elected bureaucrats in the State of California to fund programs over elected officials concerns. 3) asked that the involved financial institution/s be approached for a 90 day extension of their commitment to find a viable solution. 4) proposed establishing a task force to be chaired by Council Member Pinkerton and consisting of. Jack Carter, John Graffigna, Mike Lapenta, Alice Reimche, and two additional people to be named at a later date, which task force will seek out viable solutions. W EXHIBIT,A THE CnT COUNCIL OF OF •D V11ILL CONDUCT A CWrIN1JTED PUBLIC BEARING TO RECEIVE PUBLIC INPUT REGARDING PROPOSED HOTELa• RENOVATION PFD= NOTICv IS HEREBY GIVEN that on Wednesday, October 1, 1986 at the hour of 7:30 p.m., or as soon thereafter 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. The Hotel Lodi Rehabilitation Project will be a public-private partnership project, incorporating participation of the following public and private entities and programs: City of Lodi -C u mity ,t Development Block Grant; State of California Office of Housing and Community Developrent-Special User Housing Rehabilitation Program; The Savings Association Mortgage Company (SAMOO); and the Daniels C. Logue Development and Construction Company of Sacramento. Upon completion the Hotel Lodi, located at the corner of School and Pine Streets, will provide 110 furnished residential rental units available to low and moderate income persons. If you are interested in further information, please contact Rick Barnum, Associate Planner, City of Lodi Cmuunity Development Department, 221 W. Pine Street, Lodi, or call 333-6711. All interested persons are invited to present their views on this matter. Written statements may be filed with the City Clerk at any time prior to the hearing scheduled herein and oral statements j „. may be made at said hearing. If you challenge the subject matter in court you may be limited to raising only those issues you or sareone else raised at the Public ax hearing described in this notice or in written correspondence delivered to the City Clerk at, or prior to, the Public Hearing. k, By Order of the Lodi City Council. z (tLLU� tk%� Ja, Alice M. Rem&dw City Clerk F Dated: September 17, 1986 g: -' OfPICIgL WS{N P � s7 �IEwKT4 r•� s 1 SENDER INS t Y. �ddrna6 iud �1P C M Ape • Comµw ems t � rW 3,bn�»�n� _ `� � �„ ;�, ��a - • Arad► to Root ot+[tlSN.N. ' � <„� fi � -� �� o1Mrw�M ttt6 to t • Erulogt rHdrr "Ram Nptpt Red"ER N �` i0 O11•IbM. -r' sw;'""`t �� �'�, � r "3' T'�, �' f� .. � REfiIiRN 2 � ' §- ....•YRS ��-,-F �1`�`�r"�, � _�t� ,�i�'?� ?- 4 �x[ f �* ;+� - ` 22I-;TIest<':Pine':;Sti^eet r m t ',4i- - ® SP-Wit=..Compteb items 1, 2. aniei �.:. o �• :;Aad your sd&m is e>a REiiilt7i 10' epwe o0 ; I. The foilowGlQ eervlce b requested (duclr olie.) c Show to whom and date delivered. �" D Show to whom, date end addteri of daLvery.. 0: ;RESTRICTED DELlY£RY _ Show to when and date delivered. < • . � � ! D RhSTRICTI DEIN Y = Slow tg wlimi; date, mW address of deliveay.t� _ (CONJ�TaAAS SULTPTER FOR FEES) " .... 1, ARTICLES ADDRESSED TO-, David F " Beatt , Atborney at Ia MCDOEI101tgil r Hol & Alyn Suite 555, CaPital . 950 Z ,� ' 'Sacxairiertto`, CA~95x14 ; 3.r`AR7iCLEDESCriIPTtON - m REOISrEREO NO,— CERTI;,I N0.-' putIRM NO. l3?yds �' in LZ (AtwaW obtain signature of addressee or owt) m m I have received the article described above. - m - SIGNATURE-OAddreaes' ,! Mzthaf od swat vEUM DATE .DELIVERY �7! AO t SCompwo L S$ -17 p A CJ' _ ? m G. - UNABLE? TO DELIVER BECAUSEI . p INITIALS . } 'GPO i 187e-288843 . Exhibit . $ Terry Knutson Chairman UDID 203 South School Street Lodi, CA 95240 Trella Arieda Chairman Sr. Citizens Ccsnmission 1330 Midvale Drive Lodi, CA 95240 Charlene Lange Sr. Citizens Laison Hutchins Street Square Oak and Hutchins Street Lodi, CA 95240 Lodi. News Sentinel 125 North Church Street Lodi, CA 95240 David F. Beatty Attorney at Law McDonough, Holland and Allen 555 Capital Mall, Suite 950 Sacramnto, CA 95814 John Graff igna P. O. Box 388 Lodi, CA 95241 Mike Lapenta, Chairman Lodi Downtown Business Assn. The Toggery 28 South.School Street Lodi, CA 95240 Daniels C. Logue Developmnt and Construction Co. 1001 6th Street, Suite 200 Sacramento, CA 95814 ' P SENDER: . Complete items 1, 2, and 3. Add ynar address In iha "RETURN To" space an � revgae. 1.` 'following service h requested (check one.) Show to whom and date delivered ........... —4 C) Show to whom, date "and addrm of delivery..,—! 0 RESTRICTED DELIVERY Show to whom and date delivered. " El RESTRICTED DELIVERY. Show to whom, date, and address o u. (COZISULT POSTMASTER FOR FEES) 2 AR' ICLE ADDRESSED TO:. David F. Beatty, Attorney at La McDonough, Holland & Allen 555 Capital Mall, Suite 950 Sa_cralnento CA 95814 3. ARTICLE DESCRIPTION: REtr1ST£RED NO. 1 7CCD NO. INSURED NO; (Always obtain siy.ratug of adtirec:as or agent) I have received the article described above. " SIGNATURE Mddressee (]Authorized agent - a. DATE OF DELIVERY - -. POSTMARK -. S. ADDRESS (Compton ontr it mwasaad) B. LINABLE TO DELIVER BECAUSE: CLERKS INITIALS - Mailing list approved by City Attorney Stein, Ccm=ity Development Director C PROOF OF PUBLI?ON 1 M (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Joaquin. I am a citizen of the United States and a resident of F; the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above - entitled matter. I am the principal clerk of the i printer of the Lodi News -Sentinel, a newspaper of general circulation, printed and published daily, except Sundays and holidays, in the City of Lodi, California, County of San Joaquin, and which news- paper has been adjudged a newspaper of general 1 circulation by the Superior Court, Department 3, of the County of San Joaquin, State of California, under the nate of May 26th, 1953, Case Number 65990; that the notice, of which the annexed is a -I printed copy (set in type not smaller than non- pareil), has been published in each regular and entire issue of said newspaper and not in any sup- plement thereof on the following L?ates, to -wit: z.................................................... ................... ) r all in the year 1986..... I certify (or declare) under penalty of perjury that the foregoing is true and correct. This space or the County Clerk's Filing Stamp dor r� ; int _ Proof of Publication of NOTICE OF CONTINUFD PUBLIC HEARING ....................................................................................---•-........ NOTICE OF CONTINUED PUBLICHEARING t THE CITY COUNCIL OF THE CITY OF LOO: WILL - CONDUCT A CONTINUED PUBLIC HEARiNU TO RECEIVE F'UBUC INPUT REGARDING THE PROPOSED HOTEL LODI RENOVATION PRO. 1 JECT NOTICE IS HEREBY GIVM that on Wednesday.- October -1. 1986 at the hour of 7:30 p.m., or as soon thereafter os the matter may be heard, the Lodi City Council will conduct o continued public hearing in the Cuuncil Chambers. City Hail. 221 West Pine Street. Lodi. Colifornio• to receive public , input regording the proposed Hotel Lodi Penova• tion Project. The Hotel Lodi Rehabilitation Project will be o public pnvote partnership project, incorporming Participation of the following public and private _ entities and programs: City of Lod t -Community De • valopm r`r Block Grant: State of Colifornio Office of Housing and Community DevelopmenPSpecibl User Housing Rehabilitation Program: The Savings i Association Mortgage Company fSAMCO): and the Daniels C. Logue Development and Construction Company of Sacramento. Upon completion the Hotel Lodi. located at the `corner of School and Pine Streets, will pravnde 110 furnished residential rental units available to low 11 and moderate income persons. If you are interested in further Informotion- pieose contact Rick Barnum. Associate Planner. Ci:. ty of Lodi Community Development Department. i 271 W. Pine Street. Lodi. or coil 333.6711. All interested persons ore invited to present their views an this matter. Written statements may be filed with the City Clerk at any time prior to the hearing scheduled herein and oral statements mnv TO: Mr. Tom Peterson, City Manager FROM Rick Barnum, Associate Planner DATE: September 9, 1986 SUBJ: CDBG Program Chronology of Events: Hotel Lodi In accordance with your request, I am providing the following chronology of events associated with the Hotel Lodi Rehabilitation Project. Also, copies of supporting documentation have been provided where available. If you have any questions, or wish to discuss this further, please contact me at your convenience. Date Event Nov. 26, 1985 City Council reviewed Capital Improvement Budget, which included Hotel Lodi at a "shirtsleeve session". Dec. 18, 1985 City Council reviewed Capital Improvement Budget, and introduced Ord. No. 1371 providing for adoption of the program. (Exhibit A). Jan. 8, 1985 State Housing & Community Development (dCD) - Special User Housing Rehabilitation Program (SUHRP), loan application submitted to HCD by Daniels C. Logue Construction & Development Company, as part of financial package for Hotel Lodi. Jan. 15, 1986 City Council adopted Ord. No. 1371 approving the 1986 Capital Improvement Budget. (Exhibit B) Jan. 17, 1986 Letter received from D. Logue requesting specific information for the HCD-SUHRP loan application, per HCD staff. (Exhibit C) .lan. 29, 1986 Tour of Sequoia Hotel, Sacramento. Lodi City Manager and Lodi Community Development staff. Feb. 4, 1986 City of Lodi -Housing Demand Study, prepared by Community Development Department staff. Feb 8, 1986 Public Notice -Review of Proposed CDBG Projects (San Joaquin County -Entitlement Statement) Feb. 14, 1986 Public Notice: Lodi Community Meeting. Proposed CDBG projects, including Hotel Lodi. Feb. 19, 1986 Feb. 19, 1986 Lodi Community Meeting: Proposed CDBG projects, including Hotel Lodi. Public review and comment. City of Lodi: Resolution No. 86-30 (Resolution Establishing Need for the Renovation of Hotel Lodi) adopted by City Council. (Exhibit D). CDBGHOTE/TXTD.09B Date Event Feb. 21, 1986 City of Lodi-Housing Demand Study, submitted to HCD with i Resolution No. 86-30. Feb. 28, 1986 Hotel Lodi Tour-Luncheon-HCD staff meeting: Discussion of Housing Demand Study; input from local senior citizen group representatives. March 6, 1986 Amended HCD-SUHRP loan application submitted by D. Logue. March 13, 1986 Notification by D. Logue staff of HCD-SUHRP loan application approval (phone call). March 21, 1986 Copy of HCD Staff Report received by City of Lodi Community Development Department. (Exhibit E). >? May 21, 1986 Public Hearing. San Joaquin County Board of Supervisors: ti CDBG Entitlement Statement, including Hotel Lodi. May 27, 1986 CDBG Entitlement Statement adapted by San Joaquir County Y a Board of Supervisors, including Hotel Lodi. June 6, 1986 Independent market demand study for Hctel Lodi completed by Tsen & Associates, Oakland, CA July 1, 1986 Letter received from D. Logue requesting Housing Development Grant (HODAG). July 8, 1986 Application copy of Housing Development Grant received by City Community Development Department staff. July 11, 1986 City Community Development Department staff/D. Logue staff scope Housing Development Grant application requirements. = July 16, 1986 City Council adopted Resolution No. 86-108, as authorization. to apply for the Housing Development Grant. Hotel Lodi Rehabilitation ProjPrt public hearing set for August 6, 1986. Aug. 6, 1986 City Council continues public hearing established fcr the Hotel Lodi Rehabilitation to August 20, 1986, pending submittal of LDBA report. Aug. 20, 1986 City Council continues public hearing for Hotel Lodi to September 3, 1986, as D. Logue was unable to attend. Sept. 3, 1986 City Council continues public hearing for Hotel Lodi to September 17, 1986, pending, meeting with LDBA. Sept. 17, 1986 City Council continues public hearing for Hotel Lodi, to October 1, 1986 as requested by LDBA. CDBGHOTE/TXTD.O9B TEST11,n Y PRESENTED REGARDING Ti-_ CLOSING OF LILAC _-TRE C'r IN WOODBRIDGE The following persons addressed the Council regarding the closing of Lilac Street in Woodbridge and asked for Council's assis-.2nce in providing a solution to this dl - problem: E� aG a) Mike Rusher, 740 E_ Augusta, Woodbridge, Member of the Woodbridge Advisory Council b) George Fiske, 18988 N. Lower Sacramento Road, Woodbridge c) Jim Duncan, 38929 N_ Lower Sacramnto Road, Woodbridge d) Joseph Bagley, 660 E. Carolina, Woodbridge CLOSED SESSION Mayor Hi.ch-,,.3n adjourned the meeting to a "Closed RE LITIGATION Session" of the Council regarding litigation and the meeting reconvened at approximately 9:14 p.m. REPORTS OF Thi. CITY MAN+iGT ID, REGULAR CALF 1986 CAPITAL IMPROM4E2,Tr PROGRAM ORD. NO. 1371.' IIdTi30. The 1986 Capital 3npzovEv�ent Program was presented for Council's approval_ Minor changes that had been made following the original presentation of this documient GC"; to Council were reviewed_ Following discussion with questions being directed to Staff, Council, on motion of Council Menber Snider, Olson second, introduced Ordinance No. 1373 - Ordinance Adopting the 1986 Capital _17provement Progran. taD-BLOCK CROSSWALK REQUESTED AT CASA DE LODI. Council was remi.-xled that, at its regular meeting of December 4, 1985, the City Council received a petition signed by approximately. 225 residents of Casa de Lodi requesting the installation of a mid -block crosswalk cr,'r4S(a� at the entrances to this mobile home park. The City CC ) Council asked that this matter be placed on this agenda for discussion. City Manager Peterson pointed out that the City, in the past, has been strongly opposed to the installation of mid -block crosswa-lks and has discouraged their use. Public Works Director Jack Ronsko, in a memo to the City f= Manager, made the following points in support of the City's positions I. Motorists expert crosswalks and pedestrians at intersections and motorists do not expect crosswalks placed in the middle of a block. - 2. They may cause pedestrians to have a false sense of security with respect to vehicular traffic,; 3. They ray cause a greater nu ber of rear -end collisions duo to pedestrians not waiting for gaps in traffic. -S, .,. ... .. -_ . .- ._ ... - Continued January L.1986 Ordinance of the Lodi City Council Amending Lodi Municipal Code Title 10, Chapter 10.32 Residential Permit Parking. ORDINANCES Ordinance No. 1371 - Ordinance Adopting the 1986 Capital 9nti �� i571 !1 Improvement Program for the City of Lodi having been introduced at a Regular Meeting of the Lodi City Council held December 18, 1985 was brought up for passage as an Urgency Ordinance on motion of Mayor Pro Tempore Reid, Olson second. Second reading of the Ordinance was omitted after reading by title and the Ordinance was then adopted and ordered to print by the following vote: Ayes. Council Members - Olson, Reid, Snider, ar,a Hinchmar. (Mayor) Noes: Council Members None Absent: Council Members - Pinkerton Abstain: Council Members - None INFORMATION Council received a report regarding the recent award of a' Micro Backhoe. 7Q7OUIWIENT TO "CLOSED SESSION" Mayor Hirschman adjourned the meeting at approximately 9:10 P.M. to a "Closed Session" pertaining to litigation. ATTEST: ALICE M. REIMCFiE City Clerk C1 ORDINANCE NO. 1371 ADOPTING THE 1986 CAPITAL IMPROVEMENT PROGRAM FOR THE CITY OF LODI The City Council of the City of Lodi Does Ordain as follows: Section 1. Together with estimated revenues to be received for fiscal year 1986 and the unappropriated funds and reserve balances in the City treasury, as of this date there is hereby appropriated and allocated monies for the support of the City's Capital Improvement Program as shown on exhibit attached hereto, identified as Exhibit "A" and thereby made a part hereof. Section.2. The foregoing Ordinance No. 1371 was introduced at the regular meeting of the City Council held Dece-mber 18, 1985 and was adopted as an Urgency Ordinance by the City Council at the Regular Meeting of January 15, 1986. Section 3. A11 ordinances and parts of ordinances in conflict herewith are repealed insofar as such conflict may exist. I, Alice M. Reimche, City Clerk of the City of Lodi, do hereby certify that.Ordinance No. 1371 was introduced "at a regular meeting of the City Council of the City of Lodi held December 18,1985 and was thereafter passed, adopted as an Urgency Ordinance and ordered to print at a regular meeting of said Council held January 15, 1986 by the following vote: Ayes: Council Members - Olson, Reid, Snider, and Hinchman (Mayor) Noes: Council Members - None Absent: Council MaThers - Pinkerton Abstain: Council Members = None I further certify that Ordinance No. 1371 was approved and signed by the Mayor on the date of its passage and the same has been published pursuant to law. Alice M. Reimche City Clerk `5 Approved as to form a_z Ronald M. Stein City Attorney CITY OF LODI ; CAPITAL IMPROVEMENT PR06RAM 1986 EECAPLIIlLUIO Orc 85 ato EXHIBIT "A„ CITY OF LODI ; CAPITAL IMPROVEMENT PR06RAM 1986 EECAPLIIlLUIO 121 17.1 17.2 10.1 33 t23 124 126 148 120.1 45 12 PROJECTS TOTAL GENERAL- SEVER WASTE WATER GAS TAX MASTER SO 325 F.%J REVENUE HUTCHINS Sr HUD EQUIPMENT sY lux! MAIER -_--•-'-•---- 21Q6 -DR ---------------------------- AI4 -- ---------- - ---- --•-- SHARING -------------------- SQUARE ---__-___ ENTITLEMENT _---•-----_-_ FUND w•^rFcWAYER SYSIEIL' )5,040 AO,g50 73.000 �VDRM DRAINAGE 151,009 20,000 131,000 , MATER SYSTEM 500,000 456,000 44,000 ' 8EiL3YSIEM� 1,045,000 345,400 4@7,242_ �4Z,40 OTHER FACILITIES 607,584 102,000 165,584 313,000 25,000 , , TOTAL 2;458,584 122,000 80,000 75,000 456,000 396,000 131,000 402,000 167,000 165,584 359,000 25,000 Beginning IIdine# 4,422,301 842,092 635,108 492,574 1,115;105 274,099 461,109 219,025 42,000 172,170 47,763 100,662 , Est. resources 1986 1,614,745 0 125,000 162,153 200,000 122,860 75,000 270,000 194,730 25,000 390,000 50,000 06 SuL6L 6,437�43I �. 812,442 ,�1fl4s14fl�'0}a12�I AM 105 3 6 9559 �136,L09 , 1!91015 42,000 367,500 72.763 390,000 150,662 Adjesteents 125,000 125,000 Funds Arsllihle 6,162,052 842,092 780,106 654,729 1,315,105 396,959 536,109 489,025 167,000 367,500 72,763 390,000 150,662 dg0td_12.i5H,I94) 1122,444E 1801000L (75,000) (456,000) !396,000) 1131,000) (482,000) 1167,000) 1165,584) 10) (359 000) 125,0001 , Est. 8e1. 12!31786 3,703,468 720 092 700,108 319,729 059,105 959 405,109 7,025 0 201,916 72.763 3-,000 125,662 Iw Ip" 6 S k ------------------------------------------ --------------------------------------------- ---------------------------- ------ -----------A-------- ----- ----------� ----- ' GENERAL FUND REVENUE HUD ) EQUIPMENT .. ; ,. ° PROJECT 6 TOTAL COST SHARING ENTITLEMENT FUND - ------------------------------------------------ ' : Restrooas(Construction) ---------------------------- -••--------------------------------------------------------------------------- _ _ Saar- i ® 9 Armory Park :.45,000 45,000 a£tha11-J<oaplex �s DOh b`1,09(L 70 Lodi Lake 70,000 70,000 " Compute�Equipaeat ?5;00{L_— .,:.;Q:2 WO Parks and Recreation 0 r` " Fire 157 P lire a _ ,a Fencing Armory Park w 10,000 10,000 , ° Hotel Lodi Renoyation 100,000 100,000 2'HIM Administration351040 35,000 u , .f )2 )'TOTAL NEW _PR1lJECTS 607,584 _192,000 165,584 315,000 25,000_ 25 i7 ©r 31 32 22 t 74 - - - - k - 3038 - - - 40 L9GUE (-Ievelopiiieiit4&T,constructioiio. Januar.1 17, 1986 Mr. Jim Schroder Call Box 3006 L di, CA 95241-1910 Attention; Mr. Jim Schroder Pa ; Rerovation of the 'Motel L(xdi E2ar jin : As jllcicate2-- to you, on January 8, 1986 we put in an application to the ; rena-rlment of Housing and Cormurity r�evelopment cf State of California requesting an $1,000,000.00 loan for rerovation of Hotel Lodi. The total renc..-:ation project will be over $3,220,000.00, which in addition to the State funds, will include $900,000.00 Equity participation by the partnership, $1,200,000.00 Conventional loan End the City of Lodi's partic:`Pa tat::cn . ! i , It is most :imperative that the City of Lodi proves that there is strong community nec-d for this project, otherwise the State funds would be d'sected 1 to cther ca-rmuni ties. THe following is a list of `questions and statistics `• that are recuesteed by Housing Coamunity Development. 1. - Are there: any comparable accomadations available? 2. - M-ial: are the vacancy rateE on comparable accomadations? 3. - A lLst of studio, or one bed -room apartments in Lodi, their vacancy rate? Is there• a :,raitinq list? Page two Mr. slim Sc hrodor January 17, 1986 We are sure that in light of our past extensive experiences is renovation the strenght of our propcsExd project, specifically the large equity participation by the partnership, and cur tract record with the Housing Community Development in developing the Sequoia Hotel, we have an excellent chance of securing the tate funds if we can prove the community need. Jim, we need the City of Lodi's assistance and cooperation for providing the community need information. to Housing Community Development. Please note that time is of the essence and we should get together as snore as possible. Many thanks. Kr:SVLU'1'1VN NV. tS0—,SU RESOLUTION ESTABLISHING NEED FOR THE RENOVATION OF HOTEL LODI I hereby certify that Resolution No. 86-30 ,s was passed and adopted by the City Council ;± of the City of Lodi in a regular meeting held February 19, 1986 by the following vote: Ayes: .Council Members Olson, Pinkerton, Reid, Olso-. ,, and Hinchman (Mayor) Noes: Council Members None Absent: Council Members None Alice M. Reimche City Clerk WHEREAS, it is proposed that the vacant quarters of the Hotel Lodi shall be renovated into single room occupancy units to benefit low and moderate income persons, particularly the elderly, and WHEREAS, this proposal will serve to provide clean, affordable housing to a segment of elderly I population currently in need, and Y WHEREAS, this proposal is consistent with the goals and objectives for the City of Lodi Community Development Block Grant Programs, specifically that the t.` needs of Lodi's elderly will be considered in the use of CUBG funds, t s NOW, THEREFORE, BE IT RESOLVED by the City F Council of the City of Lodi that the renovation of Hotel Ludi is necessary in order to meet the housing demand for low income elderly persons. Dated: February 19, 1986 I hereby certify that Resolution No. 86-30 ,s was passed and adopted by the City Council ;± of the City of Lodi in a regular meeting held February 19, 1986 by the following vote: Ayes: .Council Members Olson, Pinkerton, Reid, Olso-. ,, and Hinchman (Mayor) Noes: Council Members None Absent: Council Members None Alice M. Reimche City Clerk EXHIBIT "E" SUHRP PROJECT SUMMARY Project Name: Hotel Lodi Address: 7 Schocl Street, Lodi Applicant: Hotel Lodi Limited Partnership Daniels C. Logue, general partner ' C_.: w� D PART.'. ENT SUHRP Loan Amount: $1,000,000 Building Description: The Hotel Lodi contains 110 residential rooms and T,�0 square feet of commercial space. The commercial space is fully occupied; while the rooms have been vacant since 1977. The building is located in one of.the more desirable sections of downtown Lodi, and is architecturally significant. Units and Rents: Unit Type No. Rent SRO w/o Bath 27 $179 SRO w/o Bath 28 $189 SRO with Bath 20 $198 Studio Apartment 35 5227 SRO's occupied by two people will rent for $230. Development Team: The development team for this project would be the same as for the Sequoia Hotel, an 89 unit SUHRP-funded building located in downtown Sacramento. Dan Logue would serve both as the general partner of _ the limited oartnership that would own the property and as the general contractor for, the rehabilitation. Vanir Construction Management would be responsible for construction management, while TEN Architecture would provide design services. Property Management: As with the Sequoia, Dan Logue would be responsible dor property management. Tenant Selection Criteria: This project would be open to all low income persons. Sources of Funds: SAMCO Loan (conventional) $1,218,000 1st Trust Deed SUHRP Loan (deferred) 51,000,000 2nd Trust Deed City of Lodi Loan (deferred) $ 110,000 3rd Trust Dead Investor Cash $ 790,000 Commercial Income During Construction $ 36,000 TOTAL $3,154,000 -63- W Uses of Funds: Acquisition S 857,000 Construction 51,869;000 Non -Construction (Soft Costs) S 428,000 TOTAL $3,154,000 f SUHRP Cost Per Unit: $ 9,090 Total Cost Per Unit (excluding costs allocated to the commercial space): S 25,400 Ratio of Other Funds to SUHRP Funds (excluding funds allocated to e commercial space): 1.8 to 1 Construction Work: The applicant plans to convert thirty-five rooms into studio apartments and two common areas into community kitchens. Other major work items include: replacing the electrical and HVAC systems, upgrading the fire protection system, installing a new elevator, and structural reinforcement. Many of the existing plaster walls and ceilings will be retained, as will some of the plumbing lines. Market Survey: Insufficient evidence is available at this point to ete�rmine whether the market demand for SRO units in Lodi, at the proposed rent levels, is strong enough to Ensure a high occupancy level and thus a financially viable project. Because of this uncertainty, staff recommends requiring a market survey prior to loan closing. STAFF RECOMMENDATION: That the Committee recommend that the Director approve the conditional commitment of up to 51,000,000 in SUHRP loan funds to the Hotel Lodi Limited Partnership for the Hotel Lodi subject to the following conditions: 1. Prior to closing and the disbursement of any Program funds, the following contracts, legal agreements and other program documents shall be completed, approved by the Department, and where appropriate, executed: (a) A Standard Agreement between the Borrower and the Department. (b) A Regulatory Agreement between the Borrower and the Department. (c) A Promissory Note to the Department, executed by the Borrower in the amount of the Program ,loan, including interest. (d) A second Deed of Trust with the Department as the beneficiary, executed by the Borrower in the amount of the Program loan, including interest. (e) A Rehabilitation Loan Agreement between the Borrower and the Department. (f) Final architectural drawings, work write-ups and specifications. (g) A construction contract between the Borrower and the general building contractor for the approved rehabilitation work. (h) _A detailed Property Management Plan. (i) Any additional documents or agreements'deemed necessary by the Department. 2. Commitments from funding sources other than the Department, shall be subject to the review and approval of the Department prior to loan closing. J 3. The residential rents, financing structure, management plan, and other - aspects of the project shall remain as set forth in the application _ submitted to the Department and in the Program staff's November 8, 1985 memorandum to the Department's Rehabilitation and Construction Finance Loan and Grant Committee, unless project changes are specifically _ approved in writing by the Department. 4. The Borrower shall ensure that all conditions necessary to close the Program loan are performed or occur on or before October 31, 1986 or another date approved in writing by the Department, and shall complete the rehabilitation within ten (10) months after loan closing. i 5. Receipt of a title insurance policy, as required by the Department. E :, 6. The Borrower shall comply with all provisions of California relocation law, if applicable, including those set forth in Government Code Section ` i 7255.3. 7. Prior to loan closing, Borrower shall fund a market study performed to specifications as determined by the Department and conducted by an independent third party selected by the Department. This study shall demonstrate, to the satisfaction of the Department: (a) that demand for the residential units is sufficient to reasonably ensure that 95% ':; occupancy can be achieved within 24 months after the completion of construction; and (b) that average rents for the units in the Hotel Lodi will be affordable to the population identified as the primary market for the residential hotel units. SUHRP/5-5.1 r i' i r s A -- r_ .. t'��}!'I7%i4lY Ott ,mill t �Idtrlft;r{ d E`rSttlyrYs;tiae t! 't f t J %fv j s St r `,e t ;r •,73t 1rF 'S�''j 47 tly�tti�r!_(Zlr f• fl /Y rl't rflrt r., .r`llt' 1 ^!1" f�1 t1 t'+ . ltFft t rl ! tl fttbA,i r, '' •! It{41 j `i St -3`110i}'.�ee t ti3 !tt af- frl yliy.eFF�rt+l/t �,+4k t' r 3/ i' f{r t j. sr ,. S 1. i t `•f f.a ':. 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C/�/(�/� �coo tpT'O [J' I.•ly+ rt \It,}f�, r: r c t I•tttl �Ir .{sr r.('t} 17 :. i 1 r i t i t , r� i} y tt t},t �.a �• tµ -f11 1. f11 r it tS (rc l,' / 1 tt. r. 1. t y,.• i '7"li l\� 1�1 r} ! I r� + l . `! i! { r 1111 � r 1 3 i-,. 1 .t f1.+ t t} I , •r +. t ` /. } (:: 1, -, I.frl i i. t , / }:. "�� .. ,.r .(`.,. .}•_r � 1 rf r itf f �` ;1-` 7. 17 ,•{rJtl. ,:it Y -! !i f' ',` 7 rt , -t' t•I-l{.° C 1{tay 1 °t r/ r li 7 �r r f ,:�s3µi 2 tr � :1 , + ! ! 1 -. r S - t 1 t + t t . v r ,. -..7 ,; �; t l y' t • t f , ! ,t'• {}�\qtr•: r It ,�r: t Si}iir t %t'�r rylrf'J r s..tf.• t r'r rr 1 l: Mant�.dty� (�,�:. r � t .i TieCy 1 V, I •'\ C'li�f t.`. Ad 1b, Ripon' - •"i li 111 •' '}i 1Se 1 w OFFICE OF THE COUNTY ADMINISTRATOR r I i• t +Y�llf lrt .r'•7` f i.;4 r4 , + !rf t ,1' t yTNAL STATEMENT OF FY 1986-1987 ACTIVITIES r WN" •"•��C• v Hotel Lodi Rehab Page 3 OaMCZr ES ALLOCATION LOCAL/NATIONAL City of Lodi $110,000 D 1 Project Description: Provision of CDBG funds to supplement $1,000,000 in State funds and $2,008,000 of private equity in the substantial rehabilitation of the Hotel Lodi. Project will provide for the rehabilitation of 110 studio apartments for the elderly or handicapped. Project is located at the corner of School and West Pine. Housinq Rehabilitation Loans San Joaquin Co. $200,000 1 D 1 Project Description: The provision of deferred and low interest, fully amortized loans to low and moderate income County residents. Loans will be available on a county -wide basis to low and moderate income residents to resolve code or health and safety viola- tions or to bring dwelling units to county ordinance standards. Housing Rehabilitation Utility Connections San Joaquin Co. $100,000 D 1 Project Description: The provision of financial assistance to low and moderate income residents of Taft, East Stockton and other designated sewer project areas to provide for sewer connections. V ADMINISTWMVE AND PIANNING ACTIVITIES Administration Urban County .$95,915 * H 1 Project Description: General management ad enministrative capacity building activities, and urban county and city coordination in the implementation of Block Grant funded activi- ties. Administration City of ,Tracy $13,000 H 1 Projec,: Description: General management and administrative capacity building activities: Administration City of Lodi $35,000 H 1 -Project Description: General management and administrative capacity building activities. Administration San Joaquin/SCHRB $19,300 H 1 Project Description: Provision of fair housing counseling, tenant landlord mediation and actions to eliminate discrimination in jobs and housing. Administration San Joaquin Co. $20,000 H 1 Project Description:- General program management and administrative capacity building activities for county projects. Pollution Studies San Joaquin Co. $18,000 H 1 Project Description: Sewer and water pollution studies for the ccmnunities of Thornton and Larch Clover. Following the issue of Lodi Hotel Project and the City Council Meeting of September 17, 1986, we would like to inform you, as of today, we have not been contacted by LDBA. We are totally committed to cooperate with LDBA in any way we can. Furthermore, if Lodi City Council Members and the city staff has any additional questions or needs more detail informations, we are always available: and at your disposal. We would deeply appreciate and seek the City of Lodi's partici- pation in this porject`and are most grateful for the attention that the City Council Members have been giving to this project. EXiIBIT A NOTICE OF CONTINUED PUBLIC HEARING THE CITY COUNCIL OF THE CITY OF LODI WILL CONDUCT A CO'TINU2ED PUBLIC HEARING TO RECEIVE PUBLIC INPUT CARDING THE PROPOSED HOTEL LODI REMVATION PROTECT - NOTICE IS HEREBY GIVEN that on Wednesday, October 1, 1986 at the hour of 7:30 p.m., or as soon thereafter 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. The Hotel Lodi Rehabilitation Project will be a public-private F partnership project, incorporating participation of the following public and private entities and programs: City of Lodi-Co enmity Development Block Grant; State of California Office of-Housing and Camwnity Development -Special User Housing Rehabilitation Program; The Savings Association Mortgage Company (SAMCO); and the Daniels C. Logue Development and Construction Ca�pany of Sacramento. Upon completion the Hotel Lodi, located at the corner of School and Pine Streets, will provide 110 furnished residential rental iziits available to low and moderate income persons. If you are interested in further information, please contact Rick Barnum, Associate Planner, City of Lodi Community DevelopnPnt DepartTent, 221 W. Pine Street, Lodi, or call 333-6711. All interested persons are invited to present their views on this matter. Written statements may be filed with the City Clerk at any time prior to the hearing scheduled herein and oral statements