City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Barbara Harb, Interim Director of Development Services |
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Prepared by: |
Brad Wungluck, Deputy Director of Development Services |
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Date: |
February 28, 2024 |
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Subject: |
Disposition and Development Agreement with Delta Community Developers Corp. |
Recommendation:
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Adopt a resolution approving a Disposition and Development Agreement with Delta Community Developers Corp. for the properties located at 309 West Yosemite Avenue and 105 Sycamore Avenue (APN No. 217-210-10 and APN No. 217-210-11).
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Background:
In June 2021, the City Council authorized the purchase of two properties totaling approximately .22 acres or 9,750 square feet, located at 309 West Yosemite Avenue and 105 Sycamore Avenue (APN No. 217-210-10 and APN No. 217-210-11).
On December 6, 2022, with the desire to encourage development of the parcels the City declared the subject properties surplus via Resolution R2022-213. Following that City Council action, on December 8, 2022 and February 1, 2023, the City provided a Notice of Availability (“NOA”) to all local public entities in compliance with the Surplus Land Act (“SLA”), Government Code Section 54220-54233. The City received two responses, with only one response including an affordable housing component. The Housing Authority of San Joaquin County (“HASC”) in conjunction with Delta Community Developers Corp. provided their response on February 7, 2023 that included a five-story building with over 40-units of senior affordable housing.
Over the past twelve months, the City and “HASC” have been in negotiations per the requirements of the Surplus Land Act to ensure the successful development of the senior affordable housing project on the two parcels. The City and “HASC” have recently completed negotiations with the drafting of a Disposition and Development Agreement (“DDA”), an Affordability Covenant, a Performance Deed of Trust, a Deed of Trust, a Ground Lease, and a Promissory Note. These documents will allow the City to dispose of the property to “HASC” for $100.00 to ensure the maximization of their ability to obtain grant funds, allows “HASC” to collaborate and partner with a developer, that the properties remains affordable housing, and that the project is developed and completed no later than December 31, 2028.
The project when completed will consist of over forty senior affordable housing units, for age 62 and over, on .22 acres at the corner of W. Yosemite Avenue and Sycamore Avenue. It will provide 100-percent affordable housing units with annual area median income levels set-asides at 30%, 40%, and 50%. The project will also include tuck under accessible ADA parking, bicycle parking, community rooms, as well as a commercial component on the first floor. The project has the opportunity to begin a successful transformation and revival of the City’s downtown core to being vibrant thriving urban hub.
Fiscal Impact:
Staff is proposing to execute this Disposition and Development Agreement and transfer the two pieces of property for $100 to the Developer in order to ensure the maximum grant application points and the feasibility of the project. The City purchased the parcels in 2021 for $80,000.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Disposition and Development Agreement