051711 lakeport city council - rda agenda items

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CITY OF LAKEPORTCity Council

Lakeport Redevelopment AgencyCity of Lakeport Municipal Sewer District

STAFF REPORT

RE: CALED Professional Advisory Service Report MEETING DATE: 05/17/2011

SUBMITTED BY: Richard Knoll, CDD/Redevelopment Agency Director

PURPOSE OF REPORT: Information only Discussion Action Item

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD:

The City Council is being asked to consider and accept the California Association for Local EconomicDevelopment (CALED) Professional Advisory Service (PAS) Report.

BACKGROUND:

*See "Overview" section on the attached report.

DISCUSSION:

The CALED PAS Report contains background, observations, and 14 specific recommendations on Pages 3through 5.

The report points out several positive actions that have been accomplished over the years in Lakeport,including the City's Business Loan Program, retention of Mendocino College and the new Courthouseproject.

The report also discusses an apparent disconnect between the community and businesses and the City and



City of Lakeport

Professional Advisory ServiceDelivered by

The California Association for Local Economic Development (CALED)

550 Bercut Drive, Suite G

Sacramento, CA 95814

Sponsored by the City of Lakeport

Overview:

On December 13th and 14th 2010 the City of Lakeport hosted a California Association for Local

Economic Development (CALED) Professional Advisory Service (PAS) to provide the community

with advice and options for further developing local economic vitality. The PAS team members

consisted of: Steve Art, Economic & Redevelopment Manager for the City of Lincoln; Greg

O'Sullivan, Founding Principal of Economic Development "ON CALL"; Larry Cope, Executive

Director of the Tuolumne County Economic Development Authority; and Bill Davis, Consultant

for CALED.

City staff briefed the CALED team and the CALED team was provided a tour of key economic

development assets for the community. The CALED team then interviewed over 30 key

stakeholders from the community including the Mayor, City Council Members, the Lakeport

Economic Development Advisory Committee (LEDAC), City staff, County Staff, local business owners,



City of Lakeport Professional Advisory Service December 73 and 74,2070

Observations

The City staff has done a tremendous job at providing economic development support services

and resources to businesses. They have taken the appropriate attitude and response to

economic development opportunities. These successes include but are not limited to:

a) Retaining the community college campus. lt was not clear that the college would build

its campus in Lakeport. Superior customer service and support to the college secured

the campus for the community. This is a solid example of "business retention" success.

This campus will provide ongoing education and business services that can greatly assistlocal businesses. This also represents capital investments and payroll expenditures

injected into the communitY.

b) Retaining the County Court. lt was not clear that the new County Courthouse would be

located in Lakeport. Superior customer service and support provided during the location

decision-making process help secure the Courts for the community. This is a solid

example of "business retention" success. This also represents capital investments and

payroll expenditures injected into the community.

c) The City has one of the most active CDBG lending programs the PAS team members

have come across in all of their experience. lt is certainly among the top lending

programs amongst all the Cities in California. These CDBG programs provide at-risk

capitalto fill a gap between conventional commercial lenders and the needs of

entrepreneurs whose success provides public benefit to the community.

d) Those individuals we spoke with who had recent experiences working with the City's

permitting and inspection services reported good experiences. City staff is friendly and



City ofLakeport Professional Advisory Service December 73 and 74,2070

The fact that the downtown is losing the Court is concerning to the PAS team. This is a

significant economic driver and note that extra efforts could be required to assist in replacing

the existing or potential business to that area.

Businesses that are "footloose" have many options. The history of Lakeport's call center

business relocations exemplifies this. The odds of capturing and retaining a relocating business

are slim. Unless, that is, it is directly related in some way to the unique assets of Lakeport. An

example of this principle would be a boat or sports equipment manufacture.

Recom mendations:

The leadership of the community giving direction on economic development should be

provided with the most current information on the state of the art strategies and

practices of economic development. A broad based shared vision for the expanded

economic prosperity of Lakeport should be established. Economic development

programs and asset improvement should be designed to fillthis vision. These are

necessary components of Lakeport's economic development strategy.

With a concerted economic development program effort, it is criticalto have a short

term/ quick-hit project that can rally community business leaders. One example of a

highly visible quick-hit project could be the development of a vacant commercial

property inventory to share with prospective businesses. This list should be made

available electronically and in the form of quick prospectus on some available

properties. Make connections with local real estate professionals to assist in this effort.

This is a visible initial step in preparing to respond quickly to any outside inquiries as



City of Lakeport Professional Advisory Service December 73 and 74,2A70

emphasize might include kayaking, bird watching, biking, walking, and any number of potential

festival themes. Lakeport is at the edges of the Bay Area and much of the remainder of the

United States is frozen during winter months. Lakeport is a temperate climate with year-roundopportunities for the bay area and potentially the nation.

We have described disconnect between the City and the Businesses. The City economic

development requires a public relations/ communications plan which informs the community of

its accomplishments. These accomplishments span the spectrum between examples of the high

quality of service provided at the City offices to the major accomplishments in the continuous

building of Lakeport economic development assets. Communicate the vision and progress foreconomic prosperity of the community. Put economic development information on the radio, in

newspaper, and in the visitor rooms.

The key to economic prosperity in Lakeport will be the success of its small businesses. The City

must do whatever possible to provide these businesses with all the support possible. The

Community Colleges have interest in supporting/ incubating small businesses. On one hand the

City can be a facilitator helping connect the business with all the resources like those the

community college can offer. On the other hand the City cin provide additional direct resources.

As mentioned the City has a tremendous CDBG lending program. After-loan care can be funded

with the interest created through the loans.

Interconnections must also be built through creating direct interactions between the City and its

businesses. lt is important for designated City staff to go out and meet with businesses to

identify their issues and work on proactively meeting their needs. All issues cannot be resolved

and false promises should not be presented but where possible flexibility and proactive options

should be developed. Additionally the City could create forums in which to interact with

businesses. For example a forum to have "breakfast with City Council" could be held



City of Lakeport Professional Advisory Service December L3 and 74,2070

perspective of the economic health of the community, any improvement should connect

with the business interests of the downtown. lt should maintain the viewshed and lake

access for downtown visitors and be oriented to draw to downtown visitors who willshop and/or eat in downtown establishments. Explore other communities who have

capitalized on similar assets and learn from them (Riverwalk in San Antonio was an

example mentioned by PAS team members. There are multiple examples at Lake Tahoe

including Tahoe City. There are multiple examples along the sea coast and bay area; be

inspired but realistic to the local context)

We have seen (in Auburn California for example according to the former Economic Development

Director of Placer County) the location of the first national brand lodging shift the perception of

a community from that of a community to visit to that of a community in which to spend the

night. A similar perception shift could potentially benefit Lakeport lodging in general. The role

of economic development in this case could be to catalyze the community to an improved status

by courting the location of the first national brand lodging. Due to the recession, the industry is

in poor shape at this point in time. This may be a long-term project. Now is the time to prepare

however. Research factors of location decisions by this sector, understand their location and

site needs, build relationships in the industry, find out (ask theml) what it willtake to attract

them to Lakeport, and with due diligence select the locations and get the property shovel ready

to their needs.

From the perception of the PAS team, downtown Lakeport is clean, interesting and inviting. We

were informed of continued streetscape improvements. We commend the City for their work

downtown and encourage their further efforts in this arena. The construction of this sort of

improvement, however, can generate interruption to business activity. We strongly suggest that

you work with local businesses to inform them and facilitate their continued business any way

possible during this construction period.



City of Lakeport Professional Advisory Service December 73 and 74, 2070

Appendices

l. Overview of CALED and its services

ll. Professional Advisory Service Team

lll. ProfessionalAdvisory Service (PAS) Event Schedule

lV. ProfessionalAdvisoryParticipantList

V. Presentation for Economic Development Leadership Forum: Charting the Course forEconomic Prosperity



City of Lakeport

Professional Advisory Service

December I 3-1 4, 2O1O

The California Association for Local Economic Development

The California Associatictn /itr Local Econottic Develotrtntent (CALEDI is the pretnier statewicle professional econontic

detelopment organization dedicated to cdvancing its rnember,s' ability to achiet,e excellence in delivering economic

developnrcnl services to tlteir communities and btrsiness clients. CALED's memhership cottsists afpublic and privute

organizalions ond iruJitiduals in,-tslved in econontic de,'elopntenl: lhe business of crealing and retaining jrsbs

With over 900 members. CALED is one of tlie largest Econornic Developrnent organizations in the country. Our staffand

leadership are dedicated to supportin-e the efforts of economic developers. as well as educating elected officials and the

general public about the value of Economic Derrelopment. We continuously strive to provide qualir,'.- services and

programs to further those goals.

Here are some olour services and programs:

. CALED's Annual Conference is the largest gathering of the econornic development net'nvork in Califbniia. It's a

great place to nefivork. leam, and share _vour feedback and experiences q'ith peers.. The Arvards af Excellence program has recognized and reu,arded the achieveilents of Califonria's economic

developers for almost three decades.

. The California Enterprise Development Authorit-v issues irrdustrial developmert bonds to help your

rnanufacturers and non-profits. It is also quickly becomiirg the clearinghouse for rvhere to find Economic

Developrnerrt fi nancinc resources.

. The California Academy'frr Econamic Development is a 501(c)3 organizatio:r created to further Econoinic

Development research and education.

. The Economic Development Ccrp*ratisn (5DCi Ne€rvork is a listing of regional and sub-regional EDCs that

cover the state. CALED convenes a meeting of this letrvork once a ),ear.

. Econamic need be




Professional Advisory Team

Ecor,rorqtcrUFVELOPMENTIE"oN CALL".==

Greg O'Sullivan started his career in economic development in 1991.

He has served as Executive Director, President and CEO of the Colusa

County EDC, Tehama Local Development Corporation and Shasta

EDC. He has worked in the private sector with the distinguished Chabin

Concepis, Inc. a nationally recognized economic development

consultant and ROlVision an international lead generation firm

In 1996 Greg formed Economic Development "ON CALL". Some of his

accomplishments include securing over $40 million in grant and loan

awards and several successful State Enterprise Zone designations,including Zones in lmperial County, Coachella Valley (Palm Springs),and Siskiyou County

Mr. O'Sullivan is an aggressive and tactical marketing and salesprofessional,

demonstrated byhis attraction and recruitment work with the Upstate California Economic Development Council.In 2005, Mr. O'Sullivan reorganized the states Team California Marketing Program and hasprovided technical assistance to more than 50 different communities and economicdevelopment corporations in California and Oregon Over the course of his career, Mr.

O'Sullivan has worked with hundreds of companies resulting over 1,700 jobs created, expanded

or retained. The role Mr. O'Sullivan has played in each particular project has been very different.On several occasions he has been involved at the "front end" to answer an inquiry as part of a

marketing and business recruitment campaign. In other instances he has "structured a deal" or

"negotiated" an incentive package. As a consultant Mr. O'Sullivan has been asked to "close thedeal" after a community or company has come to a stalemate.




He is a 2007 Graduate of the California Downtown Association Institute, 2003 graduate of the

Community Development Institute, 2001 graduate of the Economic Development Institute, and a

2001 graduate of the National Development Council's EDFP Institute. He holds National

Certifications of PCED (Professional Community and Economic Developer), EDFP (Economic

Development Finance Professional) and a (CDP) Certified Downtown Professional

Currently, Mr. Cope teaches e-marketing and web based applications at various conferences in

California. He has taught marketing at the Economic Development lnstitute in Oklahoma City,

Oklahoma and advanced years studies at the Community Development Institute in Conway,

Arkansas. He was a guest speaker at Kansas State University on economic development from

2002-2005' During his fourteen years in economic development, he has served on manyregional economic development partnerships, statewide economic development organizations,

local and statewide downtown development organizations and numerous local and regional loan

boards.

He is married to Kimberly Teter-Cope who is a transportation planner

Steve Art -

Steve Art, age 51, was raised in Southern California and relocated to Northern California in

January 2001 to become the Economic & Redevelopment Manager for the City of Lincoln.

As the Economic & Redevelopment Manager for the City of Lincoln, Steve is responsible for the

attraction and retention of business to Lincoln working through the City Manager and the Lincoln

Economic Development Committee. Steve headed up the City's successful bid to become a

2006 All-America City given by the National Civic League.

Steve works locally and regionally to improve the economic climate of Lincoln, Placer County

and the State of California




WILLIAM R. (BILL) DAVIS MPL CPE CToP. Mr. Davis is Founder of WR'

Davis Collaborative - a firm focused on achieving the collaborative and

collective goalsand

objectivesof

groups with the liberating power found in

facilitation tools, techniques, and resources. Mr. Davis is a co-founding

Principal of Sacramento Professional Facilitators - a facilitation training

center in Old Sacramento and a founding Co-chair of the nationwide ToP

Network - an association for ToP trainers and practitioners. Mr. Davis has

extensive facilitation experience, training and certification. He has ceftification

in public participation by the fnternational Association for Public

Pafticipation, he is a Certified Technology of Participation (ToP)@ Trainer and Facilitator (CToP), and

an fnternational Association for Facilitators Certified Professlonal Facilitator (CPF).

Formerly, Mr. Davis served as the Vice President of Facilitation and Training for the California Association for

Local Economic Development (CALED) and Director of the California Academy for Economic Development. His

areas of expertise include workforce and economic development partnerships for creating jobs, strategic

planning, action planning, and keys to effective plan execution.

At CALED Mr. Davis directed the five-year CALED Welfare-to-Work and Workforce Investment project funded byThe US Depaftment of Commerce Economic Development Administration (EDA) with funding matched by private

sponsors. In delivering his duties at CALED, Mr. Davis has trained and facilitated over 1,000 community leaders

and elected officials and 500 frontline staff in making the connection between economic development and

workforce investment programs. In addition, Mr. Davis was a member of the Economic Development and Small

Business Workgroup for the State's California Workforce Investment Board.

Prior to serving CALED, Mr. Davis serued as the Associate Director of the Center for Economic Development at

the University of Southern California. At the University, he also served as a lecturer, the Director of the

International Resort Research Center, and the Associate Director of the Professional Development Depaftment

within of Poliry, Planning and Development. In addition, Mr. Davis brings to his clients eight years of



City of Lakeport

CALED Professional Advisory Service (PAS) Event Schedule

Dav 1: Mondav. December 13, 2010

Location: Lokeport City Hall

8:30-9:00 AM

9:00 - 10:00

10:00 - 10:45

10:50 - 11:35

PAS TEAM ORIENTATION: ECONOMIC DEVELOPMENT TASK FORCE

Location: Front Conference Room, City Hall

Participonts: Mdyor, LEDAC Chair, City Manager, Redevelopment/ED Director, Economic

Development Manoger

COMMUNITY TOUR

Porticiponts: Mayor, LEDAC Chair, City Manager, Redevelopment/ED Director, Economic

Development Manoger

INTERVIEWS*

Front Conference Room: ED Director, Richard Knoll; ED Manager, Dan Buffalo; Lake County

Deputy CAO - Economic Development, Debra Sommerfield

Back Conference Room: City Manoger, Margdret Silveird

INTERVIEWS

Front Conference Room: Council Member, Stacey Mqttina

Back Room: Seth Desimone, Executive Director, Lake County One-Stop



2:OO-2:45 INTERVIEWS

Front Conference Roam: Council Member, Tom Engstrom

Back Conference Room: Real Estate/Development Representotives: Anitq McKee, Anne

Baker, Linda Lindeblod, Jim Mogliulo, ond Anno Girod

3:00 - 3:45 INTERVIEWS

Front Conference Room: Lakeport Planning Commissioner, Suzonne Russel

Back ConferenceRoom: Reserued

3:50 - 4:50 CALED Deliberation

Locotion: Front Conference Room

P a rti ci pa nts : CALED Re prese ntatives

5:OO - 6:00 Initial lmpressions, Findings, and Discussion

Location: Front Conference Room

Porticipants: PAS Teom (Moyor, LEDAC Chair, City Manager, Redevelopment/ED Director,

ED Manoger)

Dav 2: Tuesdav, December 14,2010

Location: Lakeport City Holl



Back Conference Room: Reserued

1,I:15 - 12:OO INTERVIEWS

Front Conference Room: LEDAC Members Wilda Shock, Carol Hoys, ond Nina Morino

Bock Conference Room: LEDAC Members George Linn dnd Milton Heath

12:00 - 1:30 Lunch (on your own) and CALED Representative Deliberation

Locotion: Back Conference Room

P a rti ci pa nts : CALE D Re p re se ntative s

1:30 - 4:00 Roundtable Discussion: Presentation of Findings, Observations, and

Recommendations

M od e roto r : CALED Re p rese ntqtives

Locati o n : Co u n cil Cho m be rs

P a rtici pa nts : Al I Pa rtici po nts

*All interviews will be held at Lakeport City Hall, 225 Park Street, Lakeport



5

6

7

City of Lakeport

Professional Advisory and Facilitated Action Plan Participant List

Title/Position

City Manager

Economic Development Director

Economic Development Manager

Department Heads

Deputy CAO - Economic

Development

LEDAC* Candidate

LEDAC* Candidate

LEDAC* Candidate

* La ke port Economic Develo pme nt Advisory Com m ittee ( LEDAC)

Yes

Name

Margaret Silveira

Richard Knoll

Dan Buffalo

N/A

Debra Sommerfield

Alan Flora

Sherrye Schwarz

Wilda Shock

Oreanization Affiliation

City Staff

City Staff

City Staff

City Staff

I Lake County Staff:

:

l

Lake County Staff (Planner)l

Privaie Sector Manager -

Retired

College Instructor, Former

Lake County Marketing

M

T

M

T

M

I

M

TI

M

T

M

T

M

T

y 1 AlldaY

TAtt day

All day

All day

nllJay

All day

N/A

9-Noon

io-t

1-5

All day

All day

Attendance

Yes

Yes

Yes

Yes

Yes

No

No

Group (G)/lndividual (l)

G - Staff

G - Staff

G - Staff

G - Staff

G - LEDAC(1)

G - LEDAC(1)

G - LEDAC(1)



10

1'l

LZ

13

t4

15

15

ti

* La keport Econom ic Develo pment Adviso ry Com m ittee ( LEDAC)

LEDAC* Candidate

LEDAC* Candidate

LEDAC* Candidate

LEDAC* Candidate

LEDAC* Candidate

LEDACx Candidate

LEDAC* Candidate

City Council Member - Outgoing

Richard Hoyt

George Linn

Carol Hays

Melissa Fulton

Milton Heath

Nina Marino

Robert Klinger

Ron Bertsch

l

I

l

l

l

Ii

I

I

I

City Council Memberl

l

Suzanne Lyons

oireiior

Business Owner

Private Sector Financial

Professional - Retired

i*..riiu. oifecior,

Lakeport Main Street

Association

CEO, Lake County Chamber

of Commerce

Business Owner - Retired

Education Consultant

Private Sector Manager

City Council

City Councif

N;;; r s

Noon - 5

N/A

All day

N/A

9:00 - 6:00

nirorv

Noon-5

Ail d;y

Allday

e-Nd;

1-5

t-6

12-6

L1-5

Yes

Yes

Yes

Yes

Yes

Yes

Yes

M

TI

M

TI

M

T

G * LEDAC(1)

G - LEDAC(2)

G - LEDAC(2)

G - LEDAC(2)

G - LEDAC(3)

G - LEDAC(3)

c - LEDAC(3)

M

T

M

T

M

T

M

I

M

T

M

No

Yes

I

I



27 Association Board Member

Realtor

Rea ltor

District Su perintendent

Planning Commissioner


'-t:

Anne Baker i

l

l

l

i

Linda Lindeblad

Jim Magliulo

Erin Smith-

Hagberg

Suzanne Russel

Lake County Association of

Rea ltors

ReMax Realty

M

T

M

T28

29

29

i

30 I

I

I

l

311

Country Air Properties

Lakeport Unified School

District

Lakeport Planning

Commission

Lakeport English Inn

M

T

M

T

M

T

32

33

34




Busineis Owner Karan Mackey

* La keport Econom ic Developme nt Advisory Com m ittee ( LEDAC)

1-5

N/A

";-)

Allday

Yes

Yes

G - Real

Estate/Development

G - Real

Estate/Development

1-5

Allday

AtJrv

Allday

Yes

Yes

Nol

No

G - Real

Estate/Development

G - Education/Training

I

Response

No

Response

N;

Response

N;

Response



Business Owner

Business Owner

Business Owner

Business Owner

Business Owner

Business Owner

s;iin;ir own;;

Business Owner

Toni and Bob

Funderberg

Mik; rwine

paur inJ slibrrt

Breunig

Pam and Buck Allen

Anna Girod

Lakeport Tire

Attorn.v

Hillside Honda

Allen's Furniture

AGM Property

Management

McDonald's Owner

Arir Cornlir

oirn"y'r waiJrsporii

* La keport Economic Develo pment Advisory Com m ittee ( LEDAC)



City of Lakepott Professional Advisory Service December 73 and 74,2070

We The Califomia Association for Economic Development

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Your Greatest Resource



City of Lakeport Prafessional Advisory Service December 73 and 14, 2070

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' Member-driven organizalion (900+)r' Cides (4-5%o) and Counties (99o)

/ Nonprofit E.D. Organizations (9ozo)

r' Charnbers of Commerce (296)

r' Education and Training Agencies {79o)

r' Private Sector (147o)

r' Skte and Federal Agencies (39,o1

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The Califomia Assoclatior, for lacd Economic Devdwment

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The Califomia Association for Economic Dwelopment

CALEDSeruices

The Calitornia Assaciation far Local Ecanomic Development

California Academv forEconomic Development




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California Enterprise

Development Authority

Access to expansion capital for land, buildingand equipmenl

Joint Powers Authority dedicated to economic

development finance

Industrial Developrnent Loan program forglowin g m anufacturin g busines ses

Nonprofit 501(c)3 Loan program

The Cdifomia Association for tocal Ecanomb Dfl,te1opn7€/nt

Professional Advisory Servrce



City of Lakepoft Professional Advisory Service December 13 and 74,2070

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Local Elected Official Forums

Educate community leaders on the meaning

and vaiue of economic development

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Impact Calculator




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Business Retention &Economic fmpact Initiative

Overall business health and which ofour key businesses are at risk

Business HealthAssessment

. Measures localbusiness trends(salesijobs)

At-fusk Business

Mitigation

Identifl andmitigate business

needs. Sustains

businesses thatothenvise rnightfail

The California Association for Local Economic Development

Green Water TreatmentSolutions



City of Lakeport Professionul Advisory Service December 73 and 74,2070

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Cost Segregation

New Business Retention ToolIncrease Cash Florv Now!

R.S sanctioned

Ilcrease operational cash flow

No upfront cost

Source of "working capital"

Reduce estimated tax payments (in lieu of tax refunds)

Absolve prior accounting (depreciation)

Increase "after tax" cash flowReduce tax liabilities

The California A,ssciation for Local ftanomic D€I'/€'oD',?ent

Customer Service Academy




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Agriculture Technolory Innoyation

Partnership

Agriculture Research S ervices/AgricultureTechnology Innovation Partnership

Connected to Scientific Research and Developmant

through our members

Commercializing Federal Agency Technology

The California Asficiation for l-oc.al Economic DeveloDment

C alifornia Association forLocal Economic Ilevelopment




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/Private Sector (14%)

/State and Federal Agencies (3%)

/other (11%)

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kononric Develoamenl

411 for Local Economic Development




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The Califarnia Association for t-ocal Eco/'omic Dwdarynent

Lakeport PAS




The California Association for Economic DeveloDment

Local

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City of Lakeport Professional Advisory Service December 73 ond 14,2010

@fiF.=_ The California Association for Economic DevelopmentE=s==

Distinctions

COMhIUNITY DEVELOPMENT is a

capacity building process for making a

community a better place to live and lvork.

E,CONOMIC DEVELOPMENT is purelyand simply the creation of rvealth in u,hichcommunitv benefits are created.

The Cdifonia Association for Local Econamic Dwelooment



City of Lakeport Professional Advisory Service December 73 and 74, 2A70

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Business RoIe

rilvtobilize- Human,

- Financial,

Physical" and

- Natural Resources

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The Califomia Association {or f-ocal Econarnic'fJ'telopntent

A Business's Primary Motive is



City of Lakeport Professional Advisory Servtce December 73 and 74, 2070

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Government Role:

Try to InfluenceBusiness lnvestment and Location Decisions

. Taxes

. Spending

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with:

' Incentives

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Quality Service

The California Asfficiatian for Local ftonomic DeveloDil7€.nt

Governments' Motives




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Local {Public}Economic Development

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CITY OF LAKEPORTCity Council

Lakeport Redevelopment AgencyCity of Lakeport Municipal Sewer District

STAFF REPORT

RE: 410-420 Forest Drive – Affordable Housing Project MEETING DATE: 05/17/2011

SUBMITTED BY: Richard Knoll, CDD/RHED Director

PURPOSE OF REPORT: Information only Discussion Action Item

WHAT IS BEING ASKED OF THE CITY COUNCIL/AGENCY/BOARD:

The City Council is being asked to authorize preparation of an agreement to provide financing and donate(future) Agency land located at 410-420 Forest Drive to United Native Housing Development Corporation(UNHDC) for development of a single family residential affordable housing unit.

BACKGROUND:

Redevelopment Agency staff was advised by the County in late 2010 of the availability of tax defaulted landat 410-420 Forest Drive. Staff filed paperwork to acquire this land for an affordable housing project andhas been working with UNHDC on the development of an income-qualified home with no ethniclimitations. The initial request from UNHDC was for financial assistance. The project now involves arecommendation to donate the land on Forest Drive and provide a small grant to the non-profitcorporation for development of the affordable home.

DISCUSSION:

UNHDC has submitted the attached information in support of the request including the cover letter



the purchase price, require no debt service and accrue no interest during the

course of the their 30 year term.

As an infill program, the goal is to link quality and attractive, affordable,first time homeownership opportunities to revitahzation needs in blightedareas by an infill development strategy.

We propose to install a manufactured home on the Forest Drive lot that willhave upgrades, quality components and finishes, and architectural

enhancements added so that they will blend in with the existing housing.

We have done our due diligence on this proposed project and feel that

placing a single manufactured home with a two car gara:ge on these two lots

is the most feasible approach given the additional costs of curbs, gutters and

sidewalks that will be required by the City. (Please see the attached "costs

of development" for this project.) We therefore request that the City assist

us in a voluntary merger of the two lots.

We have also leamed that the owner of the lot to the northeast of lot 30, at

the intersectionof

SunsetDrive

and ForestDrive, constructed

acarport thatextends into the right-of-way atthat intersection. Additionally, the

intersection, as it exists, represents a very difficult angle to construct a safe

turn from Forest onto Sunset. III.JHDC would be willing to donate enough

property atthat corner to clear the right-of-way area and enable the City to

construct a safe intersection.

There is an existing water meter on the property and City records show there

is also an existing sewer clean-out. This is consistent with the informationthat there was a house on this lot previously that was destroyed by a fire.

We request that the City make a finding that sewer and water expansion fees



enable us to begin this project immediately. The RDA grant must be non-

collateralized to meet the HOME program requirements to ensure that the

grant will "buy down" the sales price of the home.

The benefits to the City of Lakeport are three-fold. First, the neighborhood

will be substantially improved. Second, this home will remain "affordable."

And, third, LTNHDC will perform compliance monitoring. Once your

Agency commits to donating the lots and making the grant of $35,000, we

will be able to begin this project.

We appreciate your willingness to support LINHDC in this project and hope

that upon the successful completion of this home, we will be able to develop

further first time buyer programs in Lakeport.

Sincerelv.

Geraldine A. Lewis

Special Proj ects Coordinator



Lakeport Donated Lot: 410 and 420 Forest Drive

Brand Hampton Hampton

Model 50003F 50003F

Approximate Size 27'x50' 27'x50'Square Feet 1,322 1,322

Bedroom/Bath 3/2 3/2

Hard Costs Cost Cost

House Costs

Base Model with Options 78,242 78,242

Frieght 4,000 4,000

Setup 5,000 5,000

Drywall, Carpet, Phone,, Dryer Vent, Cleaning 3,000 3,000

Escrow (Home Only) & HCD Fees 500 500

Gutters, downspouts & splash blocks 1,000 1,000

Subtotal House Costs 91,742 91,742

Site Work DBS Const. est D&D Const. Est.

Engineering: Lot Lines & Curb & Gutter, Topo 6,000 6,000

Concrete Stem Wall Foundation 13,975 14,406

Wood landing 5'X5' & Stairs Front & Rear 3,000 3,200

Integrated Front Cover 8'X6 wood only 2,350 2,700

Connect Water 30' & Sewer 50' 918 1,000

Trench Propane 20' 390 350

Concrete Parking 400 Sq Ft 3,120 3,300

Building Permit estimated only 1,500 1,500

Soil Erosion Control 1,200 1,000County Approached Encroachment 1,560 Inc

Air Conditioner/HVAC 3,400 3,400

Walkway 200sq.ft. 1,400 1,400

Landscaping & Irrigation 5,000 5,000

2 Car Garage: 13,000 13,000

Tree Removal 1,000 1,000

Sidewalks, curbs, gutters, paveout 135' 17,706 18,900

Final Grading/Flat Improvements 1,650 1,500

Subtotal Site Work 77,169 77,656

Contingency 8,446 8,470 5.00%

Total Hard Costs 177,357 177,868



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051711 lakeport city council - rda agenda items

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