1. William Huang Housing Director 1.28.19
Heritage Square South Development Process and Authorization to Negotiate a Development Agreement with BRIDGE HOUSING
William Huang
Housing Director

2. Recommendation
Find that the proposed action is exempt from the California Environmental Quality Act (“CEQA”) in accordance with State CEQA Guidelines Section 15061(b)(3), the “general rule” that CEQA only applies to projects that may have an effect on the environment; and

3. Recommendation
Authorize City Manager to enter into negotiations with BRIDGE HOUSING to become the developer for a mixed-use project on the City-owned property known as Heritage Square South without competitive selection based upon the best interests of the City, as set forth in the staff report, and to return to City Council with a proposed Development Agreement after completion of a community outreach process. Competitive bidding is not required pursuant to City Charter Section 1002(F)(Professional or Unique Services)

4. Project Description
Council approved project description on December 17, 2018
10,000 – 15,000 SF of first floor retail
65-70 permanent supportive senior housing units on two floors above the retail
Surface and subterranean parking

5. BRIDGE HOUSING Negotiate Development Agreement w/ BRIDGE HOUSING
Engage BRIDGE HOUSING directly based on the City’s Best Interests
BRIDGE HOUSING developed, owns and operates Heritage Square North Senior Apartments
Mixed-use and supportive housing experience
Reduces time to deliver urgently needed housing by at least 12 mos. compared to an RFP process
Provides opportunities for savings by sharing parking, common areas, social services and staff

6. Heritage Square Senior Apts
70 units
Award-winning
On-Time, On-Budget
Local Benefits
20.2% local hire
38.9% local subcontracting
81.3% local purchasing
Pasadena-based development team members: construction manager, landscape architect, structural engineer, civil engineer, service provider and project superintendent

7. Heritage Square Senior Apts
Initial Lease-Up
100% came from a Pasadena address
71% came from Council Districts 1,3 & 5
33% African American
25% Hispanic/Latino
22% White including Armenian
20% Asian

12. BRIDGE Housing Mixed Use
Cazenave Apartments
San Francisco
120 PSH units
3 retail spaces
(confections and coffee, strength training, restaurant)

17. Celadon Retail Tenant

18. North Beach Place Retail Tenant

19. Mandela Apts Retail Tenant

20. Coronet Apts Retail Tenant

21. Community Outreach Identify and meet separately with stakeholders
Adjacent resident associations, faith-based orgs, schools, childcare centers, homeowner associations, and surrounding businesses and residents
Advisory Project Working Group
1 - District 3 NW Commissioner, 1 – District 5 NW Commissioner, 2 - nearby business owners, and the Housing Director
Working Group members to be selected by the Housing Director
Input on project design, retail tenant preferences, house rules & security measures
Public Approval Process
Northwest Commission (advisory only)
Edtech (recommendation)
City Council (approval)

22. Preliminary Timeline # of Months Task 2 Form Working Group 6
Community Outreach, Negotiations w/ BRIDGE HOUSING, City Council Approval of Development Agmt 10
Design Review & Approval 7
County & State Funding Commitments
Plan Check Approval 35
Total Months to Start Construction

23. Potential Funding Sources
Capital
Commercial Space
Conventional Loan
Supportive Housing
City (land write down), County (NOFA), State (NPLH), 4% Tax Credits, Tax Exempt Bonds
Rental Subsidy
City or County Project Based Section 8
Case Management Services
Measure H