HomeMy WebLinkAboutAgenda Report - October 6, 2021 C-12AGENDA ITEM C .•. 12
(iCITY OF LODI
.) COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt a Resolution Authorizing the City Manager to Enter into a Purchase
Agreement and Such Other Documents, Including Escrow Instructions, in a Form
Acceptable to the City Attorney to Complete the Purchase of Real Property from
Lague Family, LLC, a California Limited Liability Company, Property Owner, of
710 North Sacramento Street (APN 041-18-009 & 041-19-042) to Develop the
Lodi Access Center in an Amount not to Exceed ($2,200,000)
MEETING DATE: October 6, 2021
PREPARED BY: Community Development Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to enter into a
purchase agreement and such other documents, including escrow
instructions, in a form acceptable to the City attorney to complete
the purchase of real property from Lague Family, LLC, a California
Limited Liability Company, Property Owner, of 710 North
Sacramento Street (APN 041-18-009 & 041-19-042) to develop
the Lodi Access Center in an amount not to exceed ($2,200,000).
BACKGROUND INFORMATION: On November 4, 2020, the City Council adopted the San Joaquin
Community Response to Homelessness — 2020 San Joaquin
Strategic Plan ("Strategic Plan"). The Strategic Plan includes
goals and strategies developed from community feedback, which
includes increasing access and reducing barriers to homeless
crisis response services.
On April 7, 2021, City Council accepted the Permanent Local Housing Allocation (PLHA), of which
years two through five of the five year plan are allocated towards the Access Center. On May 5, 2021,
Council approved allocating $5.5 million of American Rescue Plan Act federal funds to the
development of a Navigation Center, now known as the Access Center. On May 5, 2021, City Council
also approved the Lodi Access Center Community Engagement Plan, which was the first step in order
to move forward with several of the goals identified in the Strategic Plan. On July 13, 2021, the
County Board of Supervisors approved $2.8 million towards our Access Center project development
from the San Joaquin County capital -outlay fund.
On September 2, 2021, a public community meeting was held at Kirst Hall — Hutchins St. Square and
streamed live via Zoom and Facebook. City staff in collaboration with the Lodi Committee on
Homelessness (LCOH) and community partners, presented information on the Access Center and the
three locations provided for consideration (Century, Pixley, and Sacramento), as well as addressed
key questions.
On September 15, 2021 staff presented to the Lodi City Council the Access Center locations for
consideration. In a 3-1 vote, Council approved the adoption of a resolution approving 710 N
APPROVED: Steve SChWabauer
Stephen Schwabauer, City Manager
Lodi Access Center Property Acquisition
October 6. 2021
Page 2 of 2
Sacramento Street as the location of the Access Center and accepted and appropriated the San
Joaquin County capital -outlay funds.
Lague Family, LLC, a California Limited Liability Company (Property Owner), is selling the property
located at 710 North Sacramento Street. A Phase I Environmental Assessment was conducted by
AdvancedGeo, Inc. (AGI) at the subject property in conformance with the scope and limitations of ASTM
Standard Practice E1527-13, the Environmental Protection Agency Standards and Practices for All
Appropriate Inquiries (40 CFR Part 312). AGI did not identify any recognized environmental conditions
during the investigation. As there were no environmental concerns, staff went forward in requesting an
appraisal of the property. The subject property was evaluated and appraised at $2,100,000 from W. F.
Bambas Appraisal Company.
Staff recommends that City Council adopt a resolution authorizing the City Manager to enter into a
purchase agreement and such other documents, including escrow instructions, in a form acceptable to
the City attorney to complete the purchase of real property from Lague Family, LLC, a California Limited
Liability Company, Property Owner, of 710 North Sacramento Street (APN 041-18-009 & 041-19-042)
to develop the Lodi Access Center in an amount not to exceed ($2,200,000) which includes acquisition
($2.1 million) and associated closing costs which staff are estimating at approx. ($100,000) or 5%.
FISCAL IMPACT: The requested action is a $2.1 million purchase of the subject site on
Sacramento St. There is no impact to existing operations or the General
Fund from this purchase. A combination of recently granted San Joaquin
County Capital Outlay funds and American Rescue Plan Act funds will be
used for the purchase and associated closing costs. It is anticipated that
full construction of the Access Center (to be considered by Council at a
future date) and any temporary shelters on site will be fully covered by
the remaining County grant and ARPA funds.
Staff anticipates utilizing PHLA and other grant funds for the City's portion of operating expenses for
the first 3 years of operations. Beyond that, General Fund support will be needed if other funding does
not materialize. It is anticipated multiple partners, including the County, non -profits and the City will
have a role in staffing the site for the critical services that will ultimately make the project a success. A
temporary shelter could be functional on site as soon as the beginning part of 2022.
FUNDING AVAILABLE: Funding for the land acquisition:
$2,000,000 — SJC Capital Outlay Grant (35599000-77020)
_100,000—_American Rescue Plan Act (10498800.77020)
$2,100,000 — Total Cost of Land Purchase
Funding for associated closing costs:
$100,000 —American Rescue Plan Act (10498800.77020)
Andrew Keys
Andrew Keys,
Deputy City Manager/Internal Services Director
John k. Della Monica, Jr.
Comrhunity Development Director
RESOLUTION NO. 2021-273
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE
CITY MANAGER TO ENTER INTO A PURCHASE AGREEMENT AND SUCH OTHER
DOCUMENTS, INCLUDING ESCROW INSTRUCTIONS, IN A FORM ACCEPTABLE
TO THE CITY ATTORNEY TO COMPLETE THE PURCHASE OF REAL PROPERTY
FROM LAGUE FAMILY, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY,
PROPERTY OWNER OF 710 NORTH SACRAMENTO STREET (APN 041-18-009
AND 041-19-042) TO DEVELOP THE LODI ACCESS CENTER
WHEREAS, the City of Lodi is the recipient of American Rescue Plan Act (ARPA) funds
designed to provide needed relief to State, local, and Tribal governments to enable them to
continue to support the public health response and lay the foundation for a strong and equitable
economic recovery; and
WHEREAS, on May 5, 2021, City Council approved the appropriation of $5,500,000 of
ARPA funds to the development of the Navigation Center, now known as the Access Center;
and
WHEREAS, the City of Lodi is the recipient of San Joaquin County capital -outlay funds
($2,800,000) for development of the Access Center Emergency Shelter; and
WHEREAS, the City has identified real property located at 710 North Sacramento Street
with a negotiated purchase price of $2,100,000 matching the current appraisal value; and
WHEREAS, associated closing costs are unknown at this time, however, based on
industry standard of 3-5%, staff have estimated approximately $100,000 at 5%; and
WHEREAS, on September 15, 2021, City Council approved 710 North Sacramento
Street as the location for development of the Access Center; and
WHEREAS, the Access Center Emergency Shelter project is envisioned for
development on the real property at 710 North Sacramento Street.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to enter into a purchase agreement and such other documents,
including escrow instructions, in a form acceptable to the City Attorney to complete the
purchase of real property from Lague Family, LLC, a California Limited Liability Company,
Property Owner of 710 North Sacramento Street (APN 041-18-009 and 041-19-042) to develop
the Lodi Access Center in an amount not to exceed $2,200,000.
Dated: October 6, 2021
I hereby certify that Resolution No. 2021-273 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held October 6, 2021 by the following votes:
AYES: COUNCIL MEMBERS — Hothi, Khan, and Kuehne
NOES: COUNCIL MEMBERS — Nakanishi
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — Chandler
JENNIFER USMIR
City Clerk
2021-273
To the Lodi City Council,
We at United Way of San Joaquin County have long been advocates for change in creating
systems of support for our homeless communities. The long standing work demonstrated by
the leaders of the Lodi Committee on Homelessness (LCOH) is a sample of the caring, resolve
and today, the significant and transformational advancements in reducing homelessness by the
introduction of an Access Center.
We recognize that homelessness is not a crime. Homelessness exists due to multifactorial issues
creating alteration of people's live and while many are homeless due to substance abuse,
mental illness, and other life choices, it is our role as a community to strengthen systems which
will reduce the growing percentage of women, children and families, whose lives include
homeless, in cars, couch surfing or under a bridge.
The creation of a Lodi Access Center for the homeless will benefit and redirect the lives of the
homeless. And without one such infrastructure, this population will only increase. An Access
Center, located within an area where like -services are provided is a guarantee of the successful
deployment of those who need wrap around services, case management and social services.
Similar to the Stanislaus County model, co -location with other shelter support agencies will be a
value add and can magnify the ability to reduce homelessness.
As such, the location on Sacramento Street intersecting with the Salvation Army's Hope Harbor
and Grace and Mercy will in fact establish a "campus" feel that will encourage optimal use.
An Access Center, based on research of other similar locations can serve to strengthen and
support a healthier community, does not always lead to crime within that area nor does it
diminish, and in fact, has the potential with strong management of the site, to encourage
collaboration.
The Lodi community has waited many years for this moment, and with the funding from the
county is ready to take all steps necessary to ensure that a Lodi specific Access Center thrives
and does not divide us in our attempts to continue our humanitarian support of those with less.
To Living United,
Kristen Birtwhistle
President/CEO of United Way of San Joaquin County