HomeMy WebLinkAbout15 - Request to Commit $3 Million in Funding to American Family Housing for the Travelodge North Homekey Project at 1400 Bristol Street, Costa Mesa - Letter�c `wP0
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July 13, 2023
Milo Peinemann
Chief Executive Officer
American Family Housing
15161 Jackson Street
Midway City, CA 92655
CITY OF NEWPORT BEACH
100 Civic Center Drive
Newport Beach, California 92660
949 644-3001 1 949 644-3020 FAX
newportbeachca.gov
Re: City of Newport Beach Commitment Letter for the Proposed Travelodge North
Homekey Project
Dear Mr. Peinemann:
At its July 11, 2023 meeting, the Newport Beach City Council approved a loan
commitment of $3,000,000 to American Family Housing (AFH) to provide local match
funds for costs associated with the acquisition, rehabilitation and conversion of the
Travelodge North Motel property, located at 1400 Bristol Street, Costa Mesa, CA, into
permanent supportive housing.
Fund
Source:
City of Newport Beach (City) General Fund surplus funds for FY 2022-
23
Amount:
$2,000,000
Fund
Source:
City General Fund Capital Improvement Program
Amount:
$1,000,000
The City's funding would be provided in the form of a loan, with a 55-year term, at a
3.00% simple interest rate. The loan would be repaid out of a portion of the project's
residual receipts. The City's funding is conditional based upon the following:
1. AFH being awarded Homekey Program Funding of at least $28,450,000
2. AFH securing HOME and MHSA funding from the County of Orange of at least
$6, 821,520
3. AFH receiving the City of Costa Mesa's funding of $4,000,000
4. AFH securing a private loan of $3,115,000
5. Newport Beach receiving local preference on 12 units of permanent supportive housing
from this project
Letter to Milo Peinemann
July 13, 2023
Page 2
6. AFH successfully completing pre -acquisition due diligence and pre -development
activities
7. AFH and the City of Newport Beach reaching mutually agreeable terms for the loan
agreement and regulatory agreement
If you have any questions, please contact Tara Finnigan, assistant city manager, at 949-
644-3035 or tinnigan@newportbeachca.gov.
Sincerely,
race Leung
City Manager
City of Newport Beach
Attachment: Statement of City Council Action
CITY OF NEWPORT BEACH
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T 100 Civic Center Drive
Off{ 1 Newport Beach, California 92660
949 644-3005 1 949 644-3039 FAX
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STATEMENT OF ACTION OF THE CITY COUNCIL.
CITY OF NEWPORT BEACH
4:00 p.m. — Regular Meeting
>T, City Council Chambers
f 100 Civic Center Drive
Newport Beach, CA 92660
` Tuesday, July 11, 2023
The regular meeting of the City Council of the City of Newport Beach was called to order at
4:02 p.m.
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Roll Call
Present: Mayor Noah Blom, Mayor Pro Tern Will O'Neill, Council Member Brad Avery, Council
Member Robyn Grant, Council Member Lauren Kleiman, Council Member
Joe Stapleton, Council Member Erik Weigand
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Agenda Item No. 15
Request to Commit $3 Million in Funding to American Family Housing for the Travelodge
North Homekey Project at 1400 Bristol Street, Costa Mesa
Recommended Action:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action
will not result in a physical change to the environment, directly or indirectly;
b) Approve Budget Amendment No. 24-009 appropriating $2,000,000 from General Fund surplus
funds for Fiscal Year 2022-23 and transferring $1,000,000 from the General Fund CIP Fund to
commit $3,000,000 toward this project as further outlined in the report; and
c) Approve a commitment of $3,000,000, and authorize the City Manager to execute a
Commitment Letter to American Family Housing for the conversion of the Travelodge North
Motel property at 1400 Bristol Street, Costa Mesa, CA, in connection with the application for
Homekey Round 3 permanent supportive housing project funding.
Motion by Mayor Pro Tem. O'Neill, seconded by Council Member Grant to approve the
Recommended Action.
Approved 7-0.
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Adjournment
Mayor Blom adjourned the regular meeting of the City Council of the City of Newport Beach at
4:58 p.m.
Leilani I. Brown,
City Clerk
STATE OF CALMORNIA }
COUNTY OF ORANGE ss.
CITY OF NEWPORT BEACH }
I, LEILANI 1. BROWN, City Clerk of the City of Newport Beach, California, do hereby
certify that the above and foregoing is a true and correct Statement of Action of the City Council
of the City of Newport Beach of said City at their regular meeting held on July 11, 2023.
Witness my hand and seal of the said City of Newport Beach this 12" day of July, 2023.
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r Leilani L Brow , MMC
City Clerk
>. C� City of Newport Beach, California
Eric Brya
Deputy C y Clerk