HomeMy WebLinkAbout03/04/2008 04B Minutes 02-13-2008 Council Office of Neighborhood Development Committee 19
• Notes from ONDS Council Committee meeting 02/13/08
Present:
Council members: Bill Lover & Kathy Coffey
Staff: Bill Cook, Michael Morales, Bill Cobabe, & Janice Hickey
Guests: Chris Link — OIC re: Marvin Gardens; Clarence & Gerda Gibson, Earl Hall,
& John Hodkinson — Food Bank; concerned citizens Maud Scott, Luz
Gutierrez, Lynne Kittleson, & Hector Franco
Agenda items were: 1) the Food Bank with an updated request
2) OIC contract for Marvin Gardens
Item #1 for discussion was Marvin Gardens and the contract with OIC. An introduction was
given stating that this process was actually started about 6 years ago when the need was
recognized for more decent quality, affordable houses to be built. We had been building one
house here and there but felt it was appropriate to move on to a small sub - division level. We had
done one with United Builders and 2 with OIC previously. A nice piece of ground was found in
the Fruitvale area, reasonably priced. There were no utilities, would need to be re- platted, would
need to bring in partners such as Habitat for Humanity and OIC. Done with the subdivision
process. Infrastructure going in ground. OIC has funding with CTED. Always intended to have
a contract between OIC and City; the draft is what you have before you.
S Mr. Link from OIC stated that they had a certified housing counselor & a first time homebuyer
class, and each client is screened thoroughly. They are running Americorps projects to serve the
community. There is a construction manager, journeyman carpenter plus Americorps. The
program is HUD Youth Build — train them in construction. Use work experience to gain
employment. OIC. did an 18 unit in Castlevale with no foreclosures. Have good relationship
with the bank; if client misses payment, bank will notify us to start working with them early.
Habitat for Humanity has 5 lots. City only helped to purchase the lots.
City would provide a construction line of credit to OIC. Worse would be $500,000; 90
construction loan. $30,000 soft second. Finish four, sell them then to next stage. Utility work
into sub - division is on hold awaiting HUD. Brought water from Castlevale, out & looped,
connects Fruitvale. Fire hydrant here (map) with water from both directions. Waiting on HUD
to finish the sub - division. One existing home of OIC here, and, Habitats lots here but will mix
them. The end lots would be sold to bigger families but all are generous sized lots for good back
yards for playgrounds, garden. There is a small park right here. (map) OIC agreed to 1 house
similar to the one on Lincoln and 8 Street, an upgrade from ones Habitat does.
Question presented was would this exceed CHDO? It was stated that really this would fulfill the
CHDO requirement. If the money not used within a number of years, HUD could take it back.
How much is OIC in for? $250, — 260,000; $250,000 from C -TED. Understood it was for water
and sewer but clarified not for offside improvement — for acquisition and development. The
• design for water and sewer layout was done by Al Rose. How much does the City have into it?
It has been paid back already.
1
•
The clients 80% •
e clie is are all at 80 /o of Federal Median Income Guidelines or below. Various banks are
used as lenders. The concept of recouping the second mortgage to help other families is good.
The money is not given away; at sale of the house, it's due. The house costs so much; the family
can afford so much; must make up the difference. I is coming back. Every 3 years, OIC starts
looking at the increased ability to make a payment; it may be as little as $10. This is a
nationwide model. It is not a grant, not a give -away. Money comes back to use for another
revolving pool of money. The City is in second place. If there is a foreclosure, the house is
marketed to the same type people (below 80 %). House is sold for appraised value. The sub-
division will actually raise the value of the house.
It was explained that they are ready within a few days to get construction in the streets but need
to go to Council to get the approval to go ahead. If not this immediate Council meeting, then
March 5 would be the next one. Council members asked for a few days to look at contract.
The question was asked about the increase in value of the house. This is not a windfall for the
homeowner; they do not walk away with the appreciation value, most comes back to OIC. '07
money not spent; this would fulfill the requirement of the 15% CHDO, along with Pear Tree.
Mr. Cook commented that OIC needed to get their construction crew working. City offering
OIC the lot on 8 Street; will give time to wait on these issues until March 5. Comfortable for
both to wait. Food Bank get extension with Carey Motors on that building. If we put the money,
strings on building. The Committee agreed with this proposal.
#2 Food Bank represented by Clarence Gibson Secretary General and Manager; Gerda Gibson,
y g ,
wife and assistant; Chairman Earl Hall, & John Hodkinson, Realtor.
Have been looking for 2 years for an appropriate place. The price is down to $225,000. The
building is there, just what is needed, 1 floor, & fence. We are serving 300 families now instead
of the 200 last year. Then various pictures were shown from the lines waiting to the piles of food
to be distributed to the totally empty building after all were gone. There is not enough parking
space for vehicles nor enough inside space for people to get out of the weather. The personnel
are worried that one day someone will be hit while waiting in the parking lot. It has been the
Yakima Food Bank for years; it is neither church sponsored nor government. In the new
building, people can come inside and will be plenty of storage room. The old building is
deteriorating; it is too small.
Asking $130,000 Block Grant money to cover one half the cost of moving into this building.
Most of the food is donated; the big cost is baby food as it cannot be used after the expiration
date. Will Carey Motors insist on the money by the end of February? #1. more donations. #2
maybe Carey Mtrs. can do something to help. There are 1500 square feet now whereas, there are
8,000 in the new building.
It is zoned appropriately; no environmental issues, concrete slab so no worries about too much
weight. Would need walk -in cooler. Codes pulled the file for the building "Readily adaptable ".
Today the Food Bank will need 70% of the building; perhaps the other 30% could be rented out
to someone to get money to help pay utilities. Need approval to take to full Council.
4110 The Council members were in agreement they needed more time.
Executive meeting: Food Bank would have to raise one half themselves. City does not do
anything until the have their one half. It's been done before. Should have a time limit. Need to
know if Carey Motors will let them move in and operate; if they will take the building off the
market. Need commitment of local funds and property for grant and private money. What
would the utilities cost? They need sustainable funds.
Mr. Cobabe commented that he had committed to help; it is a worthwhile project, perhaps an
annual fundraiser. The question was presented as to whether this was the building they need or
will it be a liability?
The consensus of opinion was that there was not enough information to make the decision. Me
Cook commented that would not be able to get both items ready to be on this Council meeting
coming up. Be sure this is the best use for this money. (We have the money.) Will move both
to the March meeting.
•
r
Notes from Special Meeting of ONDS Council Committee 02/19/08
Present:
Council Members: Neil McClure and Kathy Coffey. Absent Bill Lover.
Staff: Bill Cook, Michael Morales, Bill Cobabe, & Janice
Guests: Jeff Cutter, Jeff Peters, & Lynne Kittleson
The agenda is to inform Mr. McClure (as he was absent from the previous discussion)
and further discuss the 2 agenda items presented at the meeting on 2/13/08 — Food Bank
requesting City assistance in purchasing a new building; OIC contract with City for
Marvin Gardens construction.
Want to bring Mr. McClure up to date and possibly get these items ready for the early
March Council meeting. A discussion followed regarding where the money is coming
from, how much they are requesting, how they will come up with the remaining money,
how they will pay utilities and such operating expenses. The council members
recommended parameters be set, not an open -ended agreement, a time -line as to when
City could expect to see the transaction complete. No plan has been presented to raise
the rest of the required funds. Recommended from staff a six -month commitment. Need
markers along the way to show progress. Will they move in right away? Easier to get
money to move in than be in and then raise money. Mr. Carey of Carey Motors, who
owns the building, gave the Food Bank until the end of March for an answer. City's
money would be like an IOU due when the other money is in place.
The question was presented as to where the money was spent last year. There were no
requests like this presented last year. There were just the regular budgeted items such as
Economic Development, salaries, Senior housing, the usual.
The next item is also asking $525, 000. The suggestion was made to make the deadline
of March for a match. We could own the building. There is someone interested in using
parking space outside the building, would supply some money for operating expense.
City never supplies 100% to non -profit organization; always worked on leverage. The
concern was expressed that the Food Bank would have the resources to even maintain.
Currently the maintenance is minimal — just pay utilities. They have been in business
since the `70s, trying to move to the next level. No paid staff; building is inadequate in
size and it is worn out. Put parameters: 1. Don't move in right away. Some parameters
to give real incentive to go out and raise the money. If for some reason the Food Bank
cannot continue then the City can take ownership. Would at least want appreciated value.
City will not go the full amount, 50% with needed parameters. Mr. Carey could carry the
contract but how would they make the payments — hopefully a benefactor. Maybe they
are getting ahead of themselves; excited at buying. Need a draft of the parameters — 6
months obligation; 120 day for all funds to be in place. Slow it down; let them know that
it is subject to certain conditions.
_______ _
_ __________
• OIC — Marvin Gardens
All along have said there would be a contract between City and OIC. 2 forms of
contracts actually. Habitat has 5 lots. Contract with OIC; Americorps to build. Utilities
are close; will start again with contract in place to build. As they finish one house and
sell it then reimburse City. Soft second loan to qualified homebuyer up to $35,000. It is
a pay back loan — review in 5 years, start paying as income allows. There is a lien on the
property, due on sale or as income goes up, to start payback. Windfall profit protection,
house sells for appraised value.
Can these be ready for the March 4 meeting? Recommend move forward. Bill Lover
agreed from prior meeting.
__________
•