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HomeMy WebLinkAboutItem 2c: Appropriation of $30,000 Affordable Housing Reserves for Tenant Relocation, Asbestos & Lead Paint Abatement & Site Clearance of 19 Lucile StreetDATE: November 16, 2010 TO: Chairman and Members of the Agency Board FROM: Jason Kruckeberg, Assistant City Manager /Development Services- Director By: Jerry Schwartz, Economic Development Manager -2 By: SUBJECT: AUTHORIZE THE EXECUTIVE DIRECTOR TO APPROPRIATE $30,000 FROM ARCADIA REDEVELOPMENT AGENCY AFFORDABLE HOUSING RESERVES TO FUND TENANT RELOCATION, ASBESTOS AND LEAD PAINT ABATEMENT, DEMOLITON AND SITE CLEARANCE RELATED TO 19 LUCILE STREET Recommendation: Approve BACKGROUND On July 20, 2010, the Arcadia Redevelopment Agency (Agency) approved a budget allocation from Agency low and moderate income housing fund reserves to fund the purchase of the property at 19 Lucile Street. The purpose of the purchase was to combine it with the adjoining lot at 15 Lucile Street to create a larger affordable housing site. Staff is ready to complete the relocation process and has bids to demolish the structure and clear the site to prepare it for a future housing project. An appropriation is sought to fund these services. DISCUSSION STAFF REPORT Arcadia Redevelopment Agency On July 20, 2010, the Agency authorized the purchase of the property located at 19 Lucile Street. Escrow closed on the property in August. Since that time, Overland, Pacific & Cutler, a relocation specialist, has worked with the renters to secure a new residence for their relocation. That process is nearing completion as a larger unit has been identified nearby as their new home. The Agency is responsible for paying the actual moving costs, security deposit, and any difference in rent between their current location and new residence. Once the family is successfully relocated, the Agency will arrange for asbestos and lead paint abatement, and demolition and site clearance. Bids have already been secured for these services. Staff is requesting an appropriation of $30,000 at this time to fund the relocation and the steps to demolish the building and clear the site. The breakdown of the appropriation request is as follows: Relocation Costs, including consultant and moving costs: $10,000 Abatement of Asbestos and Lead Paint: $10,000 Demolition and clearance of the site: $10,000 Once cleared, the site will be combined with 15 Lucile Street to create a site for an affordable housing project that will be brought back to the Council at a future meeting for review. FISCAL IMPACT The $30,000 appropriation will be taken from the Arcadia Redevelopment Agency unprogrammed reserves for low and moderate income housing. This is the 20% "set aside" money that is required to be used for affordable housing projects within the City. There is no impact to the General Fund as a result of this action. The Agency has adequate reserves in the low /mod housing account to fund this appropriation. RECOMMENATION Authorize the Executive Director to appropriate $30,000 from Arcadia Redevelopment Agency affordable housing reserves to fund tenant relocation, asbestos and lead paint abatement, demolition and site clearance related to 19 Lucile Street. Approved: Donald Penman, City Manager /Executive Director November 16, 2010 19 Lucile Page 2 of 2