1761634800 10/28/25

i d like to call the special meeting of the City Council Public Financing Authority. Housing Authority to order. City Clerk might have the roll call, please. COUNCILMAN Twining COUNCILMAN Kennedy COUNCILMAN, Mayor Pro Tem McKeon. Mayor Burns, COUNCILWOMAN Van der Mark. COUNCILMAN Gruel here Williams here present. All right, The Pledge of Allegiance. Please stand and it ll be led by City Clerk, Lisa Lane. Please face the flag, right hand over heart. Rey, begin. To the to flag of the United States of America and it s about for which to stands. One nation under GOD. In the. With liberty and justice for all. No Butch Thank you Um City clerk, do we have any supplemental communications? Yes, there are 20 emails received regarding the, uh, ttaffrfra. Public hearing for the Pelican Harbor Apartments. All right, do we have anybody to speak for this session? Signed up to speak Yes The Mayor maybe just remind everyone the public hearing has been continued from the last meeting. So we re continuing the public hearing and, and hearing testimony again on the matter. Ok, as the City attorney had said, the parliamentarian, we are continuing the public hearing from last meeting and, uh, we should restrict comments and stuff towards that, correct. All right We have, we re going to continue and do the public speakers. Um, during the public hearing. Ok Um how many questions are boring? Public ok, yeah, we continued it, uh. Then should we just proceed with the staff report? If there s an, is there an additional staff report? No, there s no additional staff report that s same from the last meeting. We were able to answer any questions though. All right. And then um we shall let s see, do you have any questions on the report? No report. Ok, uh, we have people signed up to speak, um, we ll open the public hearing again. Public hearings already, it s, it already open, but we ll resume it. Individuals with shing dis uh provide comment on this item scheduled for public hearing may do so filling out the request form delivered to the City clerk. All speakers are encouraged, but not required to identify themselves by name. Each speaker MAY have, uh, a minute unless they re the volume of speakers warrants reducing the time allowance. So you can start calling the public speakers. Dave Reinerson, me, Sean Roslius. Father Nathan Bornsad Janet DiPoro Marcia Maddox, Cathy Ryder. Pat Goodman Joe Bross p Pab Asppa, Michelle Kerarns. First speaker it s that s, do not listen to what they say, Watch what they do. This City council majority has voted to give millions of dollars to Pacific Airshow, waive hundreds of thousands of dollars of City services for the air show, paid over a half a million dollars for environmental impact report for the air show. They voted to allow the sale of alcoholic beverages at the City sports complex. They vote to contract with financially questionable promoter to put on a light show in Central Park, despite furious opposition from the public. They directed the Police department to collaborate with ice. And now they are considering withdrawing support for affordable housing for seniors, many of whom are disabled rather than honor the commitments made by their predecessors. They all professed to be Christian from what I read, Christ told people to care for the least among us, to befriend the stranger, and to be compassionate for those who have fallen on hard times. When I look at this Councilcil majority s actions, I think their actions say something very quite different from what they profess. Next speaker Hello friends. My name is Sean. I m a longtime resident and a former City council candidate way back in 2010. Uh, let me start out by saying yes on Prop 50. Uh, so after wasting a lot of money trying to cheat the public out of a library. Your gross deal with the air show, your refusal to take our budget shortfall seriously. Etc. Now you re telling us that your idea of serious leadership and authority is to shake down unaffordable housing center for fixed income seniors. This is really gross Uh, it was also extremely unfortunate that I can barely be shocked at the idea that you would choose to get tough with probably the most defenseless and precarious demographic in the City that you are sworn to protect. After you. Guys specifically wasted so much money on political games and personal products. I just can t shake the feeling that if this company was better acquainted with your personal campaign committees, this MAY have been better for them. Thank you. At the last meeting, I heard 3 council members drone on about taxpayer money being used to house seniors in a project that was deemed unprofitable to the private sector and remained vacant in in a blight for many years. Taxpayer funds, Huntedon Beach Taxpayer funds were used to pay for an environmental impact report for the Pacific Air Show at the tune of $617,000. Taxpayer money was used to pay for the Public Works department to prep before, work during and clean up after the air show, along with the salaries of our code enforcement officers, our police officers, our firefighters, and our marine safety officers and even more staff was used within City Hall, all paid with taxpayer monies. Revenue we would get from our parking lots is given to the Pacific Airshow. We have yet to see the benefits and the actual dollar amount the City receives for subsidizing the Pacific Airshow put on by Kevin Elliott with code 4. Numbers have been thrown about for years, but in actual dollar amount, comparing what our taxpayer money is putting out there with what comes in has yet to be done. N Hi, i m Father Nathan Bjornsted at Saint Wilfrid s Episcopal Church, and I m here to speak in favor of giving tax exempt bonds to the Pelican Project. Uh, my hope is, is that each of you will look at the good that this project provides, uh, the housing that s provided for those who struggle, um you know, otherwise they provide housing and so my hope is that you will extend these tax exempt status and to do so, um, quickly so thank you. Good afternoon, Kathy Ryder Huntington Beach Homeowner and Boter since 1985. A special call meeting at 40 P.M. Is a clear indicator that this council is not really interested in hearing when the residents in Huntington Beach. Because if this issue is so important that it s a public hearing, shouldn t every effort be made to include the public at a time when more could attend, and if this does not pass, what exactly is your plan for the 46 senior citizens who will depend on this project for a place to live. Your disdain for the welfare of our senior citizens is unbecoming of public servants, and you certainly can do a better job prepping for your meetings. I read the materials, do you? You should trust your staff. Our residents deserve better. Next Mayor Burns City Council, uh, this is more of a message to my fellow Huntington Beach voters. Uh, last week exposed a deep misunderstanding about the City council s responsibility to meet the housing needs of its residents. Pelican Harbor is a success story, a well-designed, well located community for low income seniors and residents with disabilities. It shows how thoughtful locally guided development can provide dignity and stability for those who need it most. Just about every City council candidate I ve ever heard run on a slogan No high density development. It doesn t matter what party they re with, it s a stance though that conflicts with the council s legal and moral duty to plan for housing since 1969, my understanding is cities have been required through rena to build homes for all income levels, yet the low and very low income goals are rarely met. Next speaker. My name is Pablo Aspas, and I m a Huntington Beach resident. I m here to support the resolution in favor of the low income residents. In recent months I ve heard I ve I ve heard our City council members, how much you love America, all these blah blah blah how much you love Americans, but last week I saw a lack of generosity and protection of our elders, specially in MR. Kennedy, MR. Burnes, and MR. Williams. We are talking about people who need help. MR. Barnes mentioned that we need money for the police department or fixing a hole uh in, in, in the road. As a taxpayer, I can live with a hole in the road, but if 43 people in our community need a house to live and for that. So today you can prove that you, you care about people by approving this resolution. Thank you. Next speaker Yeah, hello, my name is Joel Bruss. I moved into my brother s house in 2014 in Huntington Beach and I lived there till 200 19 until he got sick and he died. Um, I had to move out of his house. I was on a low fixed income, 73 years old. Um, I was homeless. I went into the, uh, program, uh, the when during the covid environment uh thing and I was put in the wrong program by the Police department, I should have received the tenant bases Section 8 housing voucher with all the people. I m 78 years old on a small fixed income, and I m still insulted by Stephanie Garcia, who says, I have no ties to Huntington Beach. Thank you. Next speaker Hi, i m Michelle Kearns. I m, I m 25 year, um, City resident and homeowner. I m also part of the Jesus Project hb that houses seniors who ve been homeless that have ties to Huntington Beach. Um, many of them are now housed at the, uh, Jamboree Pelican Harbor. I also am an alumni from Jamboree, um, worked there for, uh, quite a while and Managed 3 properties. They are the Nordstrom of of affordable housing. Ok, the state of Sacramento would not approve them as they do if they were not doing things right legally, ethically, and to the most cost efficient dollar that you could possibly get to. So I understand, um, having questions about bond timing. I understand every question that you ve had, but I know you have good hearts because you were put here by the Almighty. And so I m here to just say I m in support of it. Um, I know that we had some issues with covid, but you know what, we re here now, right? The building is here now. The people are here in the, in the complex, and it s doing a good thing, the churches are all part partnered with Next speaker. Thank you. Thank you No not yet No more speakers. No more speakers. All right. The public hearing is now closed. Council discussion. I ve given this a lot of thought myself, and I m still trying to, and I want to understand how this, the place is built, it s there, and now we re supposed to somehow coordinate and repair some mistakes that the jamboree has made in their timing of their bonds. Uh, and I m not, I still, after two meetings with JANUARY, this, I mean Jamboree this last week, I m still not entirely uh convinced that they need our signatures, but I m still open. I want to hear discussion on how this is supposed to help the citizens of Huntington Beach, and the really the, the government of Huntington Beach. Try to be responsible, try to be ethical and uh compassionate too, but this is a business and every council meeting, we get people coming up here and telling us that we re fiscal knuckleheads in that we need to pay attention and take care of our infrastructure, but if we keep on granting these kind of jobs, I worry that our our whole system will collapse at some point at, and a socialist type uh form of taking care of so many people, and it worries me. It s, but I m, I ll open this up for discussion. Don Thanks, Mayor. Um, what I d like to do first, uh, before I ask staff some questions, is just kind of uh, uh, give a rundown for the public who MAY not be aware how how these projects come to fruition. So there s a $20 million tax exempt bond issued by cmfa. There s a 15-year tax credit period that uh is awarded to the developer at $1.5 million per year over 10 years that they re able to speed up and liquidate it basically 90, 85% to 90% on the dollar, so they take that $13.6 million tax credit and they use that to pay down the debt that s come from public funds. From there, what happens is the sweet spot for the developer is really year 15 and, and that s the year where the tax credits have now expired. So the us bank who was the buyer of the tax credits basically will then have the ability to sell the asset, not back to the City, but to the developer for a nominal fee of as low as $1. So there is that aspect of it, they would still be some debt on the uh the project, but current noi on the projects is $314,000 a year. There will be a cpi increases. So by the time they take that asset, free and clear, uh, well, not free and clear, but with minimal debt, uh, because there s an additional noi. They ve now inherited a project that s probably gonna be worth 30, 35 million. I think the construction estimation is 35 million, um, but whatever the case MAY be, uh for a nominal fee of $1. In addition to that, they ll have the noi, the net operating income to service the debt and continue to build some profitability that they can put into their fund. Beyond that, uh, the tax subsidies are incredible on these projects. I mean, this sounds like the, the best type of business to be in. The rents are $2300 a month, um, and the state subsidizes 2000 of that and the tenants pay $300. So it s guaranteed income for the developer that, uh, basically really has almost no risk capital. Um, so let me ask you a couple questions. Staff, are, are you aware that, uh, or maybe you can let me know, how many affordable homes have we built here in Huntington Beach? So, uh, well, the City doesn t build housing, but we currently have a portfolio of approximately 3000 affordable units. And how does that rank among, let s just say cities in Orange County. In regards to who has the most affordable housing built. It s, it s, it s in the top 5. So we are building affordable housing, in other words, at a rate more than the majority of every City here in Irvine is the highest at like 5000 and we re at 3000 as uh Jennifer alluded to. Ok. And so it s clearly Huntington Beach uh allows affordable housing, no question about it. So that misnomer is out the door. Um, was staff aware, uh, the fact that Jam Bree, the developer has the ability to buy the asset in year 15 when the tax credits have expired for a fee as low as $1. Are you aware of that? Um, no. Ok, well. MR. Massey, he was the one that actually substantiated that so it s a fact, um, so they re not going broke and also do you realize Steph, when, when we negotiating or you guys were, this was never brought before the majority of the council. Maybe there was some, some negotiation or some consideration, um, but when we add an additional 39 years, are you guys aware of the tax loss resulting in a burden for 39 years, additionally, so basically 100 years without property tax. Were you guys aware of that? Was it factored in at all? Yeah, I mean, so we know that affordable housing is property tax exempt so extending the affordability would extend that property tax exemption, right? So you guys are aware of that. So 60 years is a generous, generous exemption in my opinion for a City to go without property tax on one property you might say, well, it s just one property. Well let me ask you this, staff. If, if we were to agree to a 99 year extension on tax-free, uh, or loss of property tax. What do you think the next developer s going to say that wants to come in here and build a tax exempt, uh, affordable housing. Do you think they MAY ask for 99 years as well. You gave it to those guys. We want it too, so if we would have the, the compounding of multiples to, uh, property tax laws. So if you lose 4 or 5 million on this project over the uh 39 years times 1 times 5 times 10. Next thing you know we re talking about, you know, $50 million a year in lost pro or $50 million in it as an aggregate as we continue to compound the multiples of these, these buildings, so, um, we did you guys contemplate that? Well, it depends on the type of project, so a lot of our units come through the inclusionary requirement, meaning the City imposes the affordability restrictions on the project and the project is not necessarily proposing affordability in that case, um, it s a mixed com Pro market rate with some affordability, the City imposes a 55 year restriction and generally they wouldn t ask for additional time. Um, they wanna just probably have less time. Now if it s an affordable housing developer, that could be different and it would probably depend on what the proposal is at the time, right, so once it s granted to 1, the next affordable housing builder that that s in the same tax exempt uh position. Why would they not ask for the 99 years? We ve given it to one, the, the expectations there what you allow you encourage. Well, right now the affordability is set at 60 years. The 99 years was part of a proposal to request this tteffra, so it s completely up to the council whether or not the 99 years is granted. We don t know what the next project would propose. Well, I would imagine if, if we set a precedent of 99 years that everybody that follows in their footsteps is gonna be asking for the same type of thing, uh, but that s my questions for now. I maybe somebody else. One thing I just want them in our discussions with MR. Massey and Jamburee. It was, I know a big issue was that the seniors would be curbed should we not sign this, that they would get evicted. And he s pretty much assured us that it is very, very unlikely that would occur. That the senior, and I know that was a major concern with a lot of people out in the audience and a lot of people up here on the dais. And if not all of us, but he has assured us that is not one of the options that are the priority. So anybody else? Uh, could we get MR. Massey maybe to come down and, and just verify that and would we be able to ask him some more, uh, questions. Mayor? Yes. Evening, Mayor. Councilmembers. My name is Mike Massey. I m the Chief Delo Officer and executive vice PRESIDENT At Jamboree. I also have our vice PRESIDENT Of Business Development and government relations, Kelsey Brewer and Pete Mitchell are consultant to make sure we re able to answer all of your questions. All right, so, uh, thank you, MR. Massey. Uh, just to the, the Mayor s point. So I understanding was after a meeting with you yesterday that, uh, no seniors are going to get curbed or go to the streets if this tough fraud doesn t go through. Is that correct? We anticipate that what would happen if the tefr weren t approved is there would be a, uh, gigantic hole in the Capitol structure, uh, Jamburee has the wherewithal to uh to fund that, um, and our board has expressed a willingness in the past to do something like that. Ok, and then just to verify by way of refresher, you know, last week it really was the first time for, I think the majority of the council up here that we were hearing anything about this teffraa issue and it s my understanding that you guys have gone through a series of extensions where it had expired in DECEMBER of 2024. And then at some point later in 2025, you applied for an extension and that was granted and then that expired and you applied for another extension that was granted, then that expired and then you applied for another extension. That was granted and now we re coming up on the deadline OCTOBER 31st, so we had one council meeting prior to that deadline regularly scheduled council meeting, uh, for us to make a decision of whether or not we re going to grant approval to the tax exempt bonds. Is that correct? JULY, but the City instructed us to renegotiate and get more terms so it wasn t one council meeting, Councilmember Williams, we were here in JULY. Uh, yeah, thank you. And just to my point was that the majority of the council up here, we weren t a part of those meetings. We weren t aware of those meetings and so it s not really brought before the City council. Maybe there was something that was being brokered between one or or two other council members. No, the City staff told us to work with your representative from the Council on the edc, and we did, we were just complying with what was asked in good faith. And then I m trying to understand why going from 60 years of locking in affordable housing would be something to be considered, you know, a, a carrot, you know, that this council would want to go for to then lock in a century, essentially, 99 years of affordable housing, which would really be locking in Section 8 taxpayer Subsidize, uh, payments as well for a century and that s on the back of the taxpayer to be paying that. So I, I don t understand why that was a leverage point or something that was considered to be a deal point in the negotiations have two answers. One is that we were asked to do that and we were trying to negotiate in good faith, and we did so. Do you have anything else to add, Kelsey? Yeah, I don t want to speak for City Council, and we welcome kind of any direction you want to take on it, but I think one perspective is that it can maintains the affordability, which requires the City to potentially have to build less affordable housing because those units remain affordable over the long term. Ok, and so that would be, I mean, if, if our goal, our aim was to satisfy the state mandates, and that s what our priority was, this would be one way to, to satisfy that. If we could just kind of backstep a little bit to kind of get a 30,000 ft view of, of really just how this project came to be, um, so my understanding is, is that, uh, the location uh was picked out and there was a loan that came from the City approximately $3 million to be able to get that ground and break ground, and the idea is, is that the payment back on that will start in year 16. Uh, but once you have the, you know, taxpayer funded property, uh, then you go out and you look for more funding elsewhere, and that comes in the form of uh low income tax credits. So if you re looking for $20 million you can get a voucher that comes from the feds through the state. It trickles down from hud, and now you have this $20 million tax credit just by way of example, and it s like a voucher. It s almost like you re standing outside of a a stadium and somebody s gonna go into the game and they re like, hey, are you gonna go buy the ticket? Are you going in? And they re like, yeah, I m going in. Well, why pay full price when I can give this to you for a discounted price. And so that s kind of like these big companies that they owe 2 $0 million say, in taxes, you know, but you could take this voucher and say this is worth $20 million and I ll give it to you for $18 million and that s essentially how you get your $18 million. Now you can fund the development of the project. Is that illustration about Accur. I see your head s nodding, yes. So it can be, I will tell you, um, I ve been doing a real estate development and advocacy for decades as a background for many of you that don t know I was the political director statewide of the California Association of Realtors and the Chief consultant for the building Industry Association. This is a product that people and developers tend to not want to do. It s the least profitable and as you can tell we re at a loss. #2, people look for lucrative, creamy things to do and this serves number 3, the the underserved and so I took this in the last 3.5, 4 months because they re a noble company. They have a legendary ceo. She apologized for anything she said inappropriately, and I commend them for stepping up and doing a, a business model in the product when it s already cost them money. What was that in reference to? What did she maybe say inappropriately? She said something that MAY have offended some of you. So one of the items when we were speaking with the City staff as she apologized. She s not a political person and sometimes people when they re sad or they re normal, they MAY say something that s politically incor I guess for the benefit of the public. I mean, I wasn there, so what, I mean, what was it that she said? We were told that she said if it wasn approved that she might go to something I m paraphrasing might just deal with a future counsel or something like that. That s not something I would have said. And, and I understand, you know, wanting to help out, you know, the needy, the elderly, the disabled, and, and that s great, you know, to prop that up, um, you know, trust but verify, right? And you know, when I, when I look into this, you know, my understanding is the way it seems is there s a little bit of profiting going on off of poverty. Uh, we ve found kind of a gravy train in terms of these subsidies that come down from the state, you know, when we were campaigning we campaigned on the fact that, look, there s $24 billion that are essentially unaccounted for. We can t figure out really where that went in this state that supposed to go towards, you know, housing, you know, homeless and, and needy folks, but these are some of the programs that can apply for this. And so when we re looking at, say, this $20 million voucher that gets sold for, say, $18 million. Now you ve got the $18 million to do the build, to do the build, uh, and then there s a little bit of remainder left over that you need to finance somehow. That s where the tteffrara comes in and that s why we re here. We re looking to finance the remaining 4.8, you know, million dollars, and we want to do it with tax exempt bonds. Meanwhile, though, these folks are paying a couple few $100 you know, in, in rent and the lion s share of this rent is being covered by Section 8 funding. And so it seems as though we found a way to sort of convert this trickle down of this $24 billion is supposed to be spent on homelessness to then bring about this development from the dirt all the way up, Subsidize then further by the Section 8 housing and turn this into a 3. Billion dollar enterprise, and that s one of the things that was brought up in the last council meeting is that you guys have amassed $3.2 billion while, you know, top executives are, you know, you say that there s not a lot of margin there, but top executives, I could just look at the top two just between the two of them, their salaries is amassed to $1.1 million. So it doesn t really feel like this is one of those nonprofits where everyone s kind of suffering and struggling and trying to help out the needy. It seems as though we re taking people that are in poverty. We found a way to sort of hide behind them or use them as shields and profit on the executive side of things. Yeah, they re not, um, number one, they re a very good company that does hundreds of projects around the state and as an underserved product that people will not do generally. Number 2, in this case, this project is not profitable and yet they re still sticking by their word. Number 3, when they, uh, lined up to do this project many years ago. That was always part of the equation to receive the financing they are. Number 4, they re sorry they missed the window, but covid did wreck a lot of things. Number 5, at the last Council meeting, it also said that there was better other uses of the project and property taxes, and that s not true. Number 6, cities and counties have restricted funds and they have to use those funds for certain things, not for anything, and they were used properly. What else did we not cover in that? Ok. It, it s kind of a cute little summary, but, you know, nevertheless, again, a cute summary. It s answering that that with accuracy and respect, it s not cute. There s funds that might be locked up in, in a bucket that cannot be spent otherwise, but they, they do not have to be spent in that particular way. They, your staff did a good job answering the the report for those of you that don t know development that they used it appropriately for things and put it to use so you created jobs and you and you house people that are needy. This is an important thing. The larger comments about your arguments with the state, you can have those, that s not us. This is a good company that s a nonprofit and it s doing exactly what it s supposed to do. Would it be accurate to say that the top two are collecting over $1.1 million in compensation just for the year 2023. Um, I do not know, uh, if I did, everybody knows my reputation. I would disclose it. I do not know what the top two executives make, but if they re doing a good job, I m assuming they re nonprofit board would reward them with bonuses based on tiers and if they re not, I assume they would get paid very little or be dismissed. I guess what I don t understand is if margins really are so tight, how is it that we re paying some of these executives over half a million dollars. Well, it s a good thing you re not paying the executives those money. This project is at a loss and they re stepping up because others that are more profitable and don t go through some of this laborious process that they re actually making money and hitting the targets. So I would just ask your kind indulgence to please support the original deal here. You re not giving away money is by your own, um, acclamati. Other council did this project. Maybe you wouldn t have, but it s here. They carried the project outn good faith. They ve housed people. These are good people in need, and you re not paying for their salaries at all.His is still a loss. They could be much more punitive and they re not. That s why I joined it. I find them to be a good company with people and very good character. Their salaries are paid by taxpay dollars. It s all the people in front of you and behindou and everybody wahing right now. Is that not accurate Um, I really don t kw how to answerhat because I think MR. Mike Masseyan answer tt. Ho, how is it that you guys pay youralaries? I think you mentioned it in the last council meeting. M. Mike Mass. Tnk if there a profit, then the board approves the salary andhey generate a check inhe accounting departmentnd pay the, the staff the money. You re notr. Mike Massey. S askin a question directly. Do this. Jim has a a numr of ways of, of u earning revenue,he primary sources through developer fee, which I ructured intohe capal structure of t development if we are successl in delivering what we s we re we re going to over a numr of years we recee a develer fee for uh taking t risk associated with with the develment and executing ont. Ando that developer f is paid by subsidized taxpayer dollars. Correct The prary comnents of the of the capit structurere fro publ sectorunds. And then the primary capital from payg of theent is from what It vars I from It from project toroject. Sometim it s subsidid through Section 8 vchers. Setimes it ces rictly from the residents. What s theion s share of it cong from inhis pticular project? In this project, the jority of the units hav Sectn 8 vouchers. D the vast majority of t of theevenue and and uh income that comesrom that goes to serve the deb that was used to build the buildin. D so again, it just I seems to me tt if w want to get project off theround, we he ay of gettingunding through taxyers I Huntiton Beach. We starthat way then we gout, we get these loan, uh low income hsing tax credits, and we, you kw, printoneylmost out of thi ai, you know, out o that one it s the taxyer again a then we keep it aflt wh the Seion 8 hsing and somehow we convert, you know, the24 billion that going dow to th states, it gs converted in a $3.2 billion eerprise ere Tosxecutives are makg ndreds and hdreds of thousand ofollars, but hiding behind, you kw, elderly disabled people as hun shields and acting like we don t rlly make muchf a marg and this isn t a racke, even thoug it might seem like on. That my take. Andrew there, ok. Iust, just want to change it u a little bit. So I, on the pluside, right, I think at it s importa that we have ts conversatio because I think generally saking, people inalifornia, Southn California don t reaze tt so many senio are actually struggling andre trying to break the cyc of homelessness. So jus like outsidef all of this, that s importa. It ought up. I mentioned it in the last meeti77 unsheltered seniors specifically in Huntington ach. Now you mentioned 43, 44 righ now are bng being hoed or phaps even more, it just one p unit, rht? Is I? Um, so one of the onef the questions, and once again, I m I m, I m digressing a little bit and I come back to anothe question. Onef the questis I have I, is tha in the process ofaving this conversation and whi otherwise MAY have bee kind of pushed thrgh consent calendar. We are tking aut that, so that s positive because I think people don t realize tt, but some o the localesidents here in Htington Beach have asked me, you kw, we have this opportunity and w have niors thatre being houd, t then also, you know, they, they ll look at this, the opti, they say, you kno, I drove dow the street a I saw somebod else who was ling in a campe or who w unhoused. On ao forward basis with this. What are the opportunities to continue housing anyore resident of Huntington Beac who mt the senior standards. Is that, ishat par of the kind o the strategic plan f this property. Yeah, Ian takehat one. We do have a preferee on this development,s we mentiedt th last meeting,ver 87% of the residents he a connectn to Huntington Beach, tha preference does not disappear anytime a resident mov on to a different housing location. So as we replace that unit, that preferenc will still be in place, a weope to mainta that sam level of fos o Huntington Beach resident over the course of the rulatory agreement. So the kindf the mechani of of the the the project,ow, how ng do and once again, I I m just setting the table so there s me infoation here. H many, how long dohe residents that are cuently tre, do they move o um subsequen housing thughout the county oro they sta there for, is there her aertain leased perio It a great question. It really does depend on the type of population. I think since we re dling with disabled seors we re going to see this as a lost place tt a lot of folks are in before ty need a higher level of care.E don have a way to force peop out Folks do sign a lease,o they have to rew their lease everyear with us, buthey can stay in the program for as long as they re eligible for the prram and can maintain all of the house rul rules requirements and make the rental cmitments as well too. And theno for those peopl o a watching and understand and perhaps they need to be able to commucate thiso other peoe? What s t press a the procedure by which somody who is either peaps o the verge of sufferg, but bei unhoused, being uheltered, or somebody o is currently in tt situatio to gohrough either the applition process or how canr or is it City resources? The City of Huntingn Beach has done an eellent job on homelessness outreach. You heardrom some sakers today that residents that the had worked with on tho projects have ended up I Pelican Harbor orellic yeah Pelican Harr, um, s what I would s to anybody that watching this has a relate a friend, somebody that they pass athe grocery store.T s first connecting folks t those homelessne services so that we can do immiate intervenons and then y ll be pced on a list, um and become eligible forousing at Pelin Harbor, I and when unitsre available. S there is a, there is kind a waiting list that exists right now. Don tecessarily matain an ongoing waiting list because these are rerred to to the, u, development throughhe Coordinated ent stem.M, so you, oe you re connted with Homelsness serves, wther it s through, um, intertions with your liceepartment, interactions wionprofits on the street. You re assesse for yr compatibity with permane supportive hsing, andhen depending on a viety of factors on this particula project, tre s a need for a disabili of some sort, you re then mched to that housing opportunity there at Pecan Harbor. A then within Jamboree, how much ofour portfoli is senior um, senior housing versusustenerally afrdable. Am not the math person, but we hav aut 3000 units of seniorousing out of out 11,0nits um throughout thetate.O you thin that that s ishat goin up? I he it can. There s not a lot ofunding available specicallyo address senior affordabilityr senior holessness, but I is one of the fastest growing popations that weee in homelsness, and there was once the state not hing dolrs wer struggng wit finding sites where realstate costs are throug the roof. We struggling withime and rmits and cleanup and ocesses alws it s a challenge to get anything built. Uh, one ofhe, one of t speake, I think her name was chelle. S had menoned that she works outsi with the church organization, u, so in the event that there were resides living atelican Harbor who were unable toay the month rent or the fs. Is that where som of these outsid services, churches, w, who, whooes cov tha in the event?Here does thatoney come from? Yeah, I can address tha. Um, asouncilmember Wilams pointed out, most of these uns, especlly t homeless, sabled units are covered by vouchers, u, so that rent is paid through mostly through the vouchernd then the resident pays a small remainder, as Pete s mention, we re a nonpfit which means that all the money that we maknd goes ba into the develments. And so one of the things that we self-support is anmergency, um, renl assistanc fd I and wn residentsun into the issue, we find gerally speaking at our senior properes it s not a issue beuse most folks are connected to se sort of Social securit benefit tha they can utilizeor their rt. So then, so if t project was cash flong that would go into an emergcy fundhat thenould be use in t event that somebody was was unable to pay their rent. T emergency fund sarate from the cash ow of the development. It somethin that we fd through our corporate. Oh ok. Oh, so yo have tt separately,nd you not managg the proper, right? You mtioned, I tnk last time I was another group that w maging it. Thi partyty Property Manage qmg, who s the on-site Property Magement. They do the staffing and a of the maintenanc and then we overs from ansset Manage perspective. Ok,hank you. Ye, I mean, my goa was rely just to kd of like fill I some of theselanks here sohat everybody understas the t entire nature of the project. U, we obviouslyike we can t go back and relitate the decision making process that s put in place in020 or 2021. Um, I think that ministratively w re faced with a, a,ou know, a, a questi that s spefic to the extension of the Cifornia Municipal Finance Authority s ta exempt status um, you kw, don t necessarily look at this as once again I m looking at ithrough the filter of 43 pele the majity of wch are Htington Beach residents who are uoused, unsheltered. Know the numbers 1 who are put in a pla I, and I kw that perha Casey going to allude to this from the develor side that this property is undevelopable I guess from from the commeial sector, right? Jennifer, wou you agreeith that? That the s noteople knocking down the door f this pperty to put a big lots in. For a cmercial developnt, I n t think we h any proposals since I ve beeith the City since 2006. We did have 3 residential pposals, um, to nev came in for an application It was just preliminary, and then one was denied. Ok, so I thi, y know, kind of my overallessage though from havinghisonversation that if the are people who are wating this and tre are Huntingt Beach residents w fallithin the frameworkf senior disabled residents and I kno that you saidhey re at full occupancy, but I think that we doeed to encrage people to go through a utilize the resourc because if we hav them he and we re maki a difficu decision, en we needo make se that thos resources areully utiled. All rig, I got aouple real quick. I cost almost $36 milliono build, right? That, tt s corct, yes, yes, so that s aut 800,000 per unit ok, and you guys collect ughly about 86,000 a mth. In rt Uh I don t hav the numbers in front ofe, but Ian confirm that. I don t know how you can come to meeting like this. This iortant of a meeting and ve taldbout these figuresnd you c,here s alwaysoids inour answers at I, Ihink are kin of like basic questions but I ll, I ll take your answe, but, and that being 3lmost $36 mlion conservavely, tha s $360,000 a year in property taxes that aren t comingn, right Um, I don t agree withhat, Mayor, because we, you can t do a normal property for pro pro-property tes as staff said. So there s, it s n seitur. Y can tut sothing on that site that uld but there is sething on th site now, isn t it? Soay, say something happened where you did dault, you just, you did abandon the building. Mebody wou probably take over that bill and liv there. You, you just sai that we wen t probably gng to defaul. Oh, I kno what I said a I kno what MR. Msey said, but its there. The isomething there. Tre s apartments there. I just trying t ask basic questions. So the citizens uerstand that what s the whole, all the figus Nobody s getting curbed. Nobody s, it s bui, the people are in there. I m just, how does ts hurt o help HuntingtoBeach, the finances for t City of Huington Beach. MR. Massey, I d like you tonswer that. No, and it sine. T, the, e project is, is built. We are going to continue to operate it We are not aing r anything additiol from the City other than approva and recogtion of the tteffra that s I. Bu how does that hel or hurt the Citof Huntington Beach in s financesr our infrtructurer any of that The staff punds that were earmarked forousingo use? And they steppedp and built a oject that was difficult to build, and tt helps the City with a bghted or a proct being improved. Itlso housed pele that are needy. Howoes that hp the finances of our City. At this point, I m, m just, I m tryingo uerstand this more. Iant this, I wt to help, but I, I really don t understand uh how this really it built, people are there. Nody s getting curbed. I really, this is reall when it gets down t it from what I derstand, a jamboree probl that you coming to us and aski f us, b we got a fiduciary dy to d what s righto the citizens of Huntgton Beach. Andhat s kind of just whe I m a. I just want to beble to jusfy getting intohis agreement a why you gs can get I, mae another,h extension. , Mayor Burns, w reot doing another extenon, 2, we ve apolozed for being late. I been on the project for 3.5 mths. They ve apogized during covid.Hey re doing their best. Number, this was always envisioned in all of the doments when this project was ilt. I didn t s anything to me That s ok. Yeah, tt did not add whe the, h it hurts or hes us financially in this City. It doesn turt us from at I uerstand, it doesn t help usnd I doesn t hurts. I don t he a really convincing message w we should hp you out of ts bi. I hr you,nd I don t know I this wille conviing, but you did ask a queion at the last meeting aboutalls for service and the police department responded that there s been noncrease in be moreorried aut uh fire mic paredic and we can, we can also providehat informatio and it s extremely minimal. And the only thing th I would adds that all of these folks wer part of your community prior to this developmen beinguilt and they were oour strts and that costs between 4000 and $50,000 a year in callsor seice tim from yr EMTs, ti from yourire department, time from your police departnt.Hose folks are now housed.Hat s an ongoing sangs that ll happen ery year that weeep that perso housed a offf the street. Understand tt s not the sames propertyaxes, u, but that is value to the City in tes of savings. Butch Hello everybody Thank you foroming. Thank you for pres presenting,m, i mighte all over the place in my commes, but I won take too much tim, u. I h a local hisrian sende aicture uh, a couple days o of the intersectnf Beach Boulevardnd Main Street. Where theennys and the 4-day tire store are currently, this pictures 70ears o. And w re not reallllowed to t upm slides at t, at this heari, so I can just tell you 70 ars ago, it s a big vacan lot th t exception o 4-day ti and Dan s it looks exactly the se way it did 70 yrs ago, s if somebod w going to develop that wit market rate units, it would have hpened sometime in the lt 70 years. Wasn t going to hpen. Ias theerson that the ceo ofamburee Quasi insulted, uh, at the grandpening. I wento the grand openi.He apologized to me, and I accept it and move on. So I kw that s sebody was wonderin who she sd that to. I don t likeypassing property tas any more than any of the otr 6eople up here. We lik our property taxes. We rely on our property tes, and our sales taxes to fund a huge portion of the of theity revenues. I mn City costs. We tried really, reallyard with uh a senior living facility a few month o there was going to be blt right aoss the street here call the Marisol. And it was a relativy well-capitalizedeveloper, uh out of Chigo, and they cam andad several meetings with us. And the knew tt we kw, they knew tt we knew th the were a nonprofitnd they could take that whole property over the right across t street from Cy Hall and notay us oneime of prerty t but they said there shis proam and we know how sensitive y are toiving pperty away for noroperty taxes, we re going to do pilot program, paynt in lieu of tes, a we re going to giv you a50,000 cks a yea. My eyesit up I said that s fantastic becae I knew it w I, I knew Pelan, Pelican Harbo s, y know,asically wasn t really uh u developg any taxes, you know pro propey taxes for the City They wereupposedo break grnd in MAY.Ave you looked over there lately? Nhing. Guess what? They cldn t get their bonds. They could t do it. Ty couldn t afford it. So now we still have a vacant lot over there with noope that I ve ard that they re gonna come back, but I can granteeou they re not gonna come back with a wit a um a uh offer of $350,0 pilot program to the City. It, it just doesn t wor. So I well Iate a I underand what myolleaguesre talking abt. I d be I totally get it. Um I likeith Pelican Harbor is. It got 43 seniorow-income mostlyandicapped, mostly ntington Beach residts in ere, um, everybo saysome have ask, well,ow does that benefit Huntington Beach? Well, they re not on our strts. They re not being contacted. They re not being contacted by our htf our homelessask force constany, u, they probay use som of the rvices around the,aybe they get their tires fro 4-day tire,r they g eat their eggs over my hammy at Danny s like I do. Um so I lookt this as it already there, this can t, you know, theelican Harbor is already there.T s, i m, I m aga, I mooking at a picture from 1955. So I think in my 70 years ago. Still nothing. Thereas nothin there. Th pro the prorty a, and, and, and Counciln McKeon and I were in the delopment business. He still I. I m tired now. That propert was not developae in m eimation for anything more,nything. Mo oress than wt s there right n andt s actually serving a purpose, and so I could keep goi on, younow Can I ask question t staff? Mayor Yeah, um jb is there any reason why a private developer couldn t have essenally built the exact exact same framework th they built where ty d given any kind ofpecial priviles or allowances that prive developer wouldn have gottenn terms of setbacks or zoning. Um, I tnk they had some parking csiderations. The used, uh, bause they were proposing affordabl, they can take advantage of sometate, um, parking requirements that ar lesshan the city s code for a mket rate proje ok, that s thenly thing if a ivate devoper decided they ll me like a 20% inusionary rate o, you know, affordable, would they be able to g some of tho parki credits.T s just a parking thing, tt s it. Um, I think it was just a parking thing. I dave to go back and seef thereas anything else, but, um yeah, so depending on what levf affordabity or wha percentage of affordability, u, developers are eligible for waers and development,m, velopment standar and also stat parking allowans um, but you d hav to have a minimum numr of affordable housing units which the site requirednywayecause wead identified it forffordable housing as part of our fifth cycle housing elent settlement. I, I guess I just wanted to, you know, strike down thi misnomer tt this was some type of undevelopae land or things that private developers have just deemed ty can t develop on.M, there s a scarcity o proper that we hav in the Butch finish u 70 years vacant light tre. This is 1955. Some would have ce in there and developed it. I happen to know that. It s very difficult, uh, gress and egrs, and Ihink you gs know that for fire I hateome pple in here mit kw that I ve actually go on a couple of fir runs, uh, in my career, and we actually responded to uh two calls at Pelican Harbor, uh, they are both false alarms thgh. Your, your alarm, uh, pane thereeeds help. I just want you to kno that. So, u, t it, it was, I was not easy for the tck to get in and it was doubly hard f that truck toet out. And when you re going to develop, y know say multi-faly apartmes, market rate, the look at thatind of uff, and I m not sure if I would have passe the musrd if w re, you know, I our planni department was looking at it befe. I don t kw. I just know that yave 22 parking spotsight tre right now. You got 43nits. Tha s a half a parking spot per unit. Th would haveado go, I believe, you know, Jennife, correct m if I m wng, but I think they would he had t do 50% uh low income tre to be able to get the pking, uh, nber downo 1 per unit, right? N t usually 1.5 per unit. Normally itepends on the numberf bedrooms but it s anywhere from 1.5 to 2.5 parkin spaces per uni for mark rate,nd it sous like yo know, the state, uh, paing requirement better than I d.Ight. So theyould have need if the were gonna, if they wereonna put, you kn regular old apartmes inhere, they would haveeeded between, you know, 8nd 120 parking spots or I, I shoulday between 60 and 80 parking spots, and ty are only able t squeeze 22 in there, which think 1 of them are undergund,hich when y have to start going suerranean, and I think uh COUNCILMAN McKeonon will tel you this. The ct of conruction gets ormously expensive, and th s probably one of the things that scared um,h, most,h, regular, you know, uh, developers away fro that se, least that s my opinion. Yeah, a I think thatou make you know, some,ome pretty lid points the. It s while you ve been onwo calls for rvice, justo that location alone, which I think is kd of a twodged sword. I mean it takes calls for service o the streets, but at the same tim, there s calls for service that areoing to the locion. I, I, I saw t stats 23 cls for service in t last 10 month overhe course of ts venant at that rate, I ll be 2, 32 calls f service to that locati. Good thi theyot two fire dertments that are rl close, so in a coue extra oh m not gonna say they have any amlances. But uh I it was there but it was there, it was tre, u, their alarm panel their fire alarm panel thatas malfunctiong. And the second time we wen there we td, we to the property Man, you g to get this fixed So anyway, tt s that s all I got to s. I will be suortinghis I bieve it does provide benito Huntinon Beach if it s not, you kno the dollars, you know, directl in our,nto our generalund. I think it, it, it saves dolls by havg these, these individual off thetreets and d uh living productive lives. Thank you, Casey Yeah, no, I totallyppreciate, uh, m colleues, Councilmber Kennedy,urns, d Wilams, um, dissatisfactio with this siness pn as aeveloper ing tax-feinancing to build projes. I mysel, as I ve sai many times, am a private sector developer, I would never pursue aroject like this,or will I ever. Um, it goes against my dna of the free mart and taking rk to uh cate a profit and then make mon thrgh thatroject by selling it.His is the way th make money is through development fees. I wld never go through t brain damage of ing a pject just for development fs. I would imine the reasonhy they can y the CEOs thatoney, that amou of money because they wererobably worki on a large number of projecthat they then oained devoper fees a then can pay tho salaries and, and meet tir threshds.Gain, these affoable housing pjects are razor thin.Ou re not you t, you know, makingh spread your cash flow that youan then sel as a as a net leased investment. So, s that s one. Um, if,f myolleagues wou indue me just on ansring a question um tt mig Pat MAY answer youruestion is, and well before ask it thoh so, so there s tt, so I understand whereou guys are ming from ifhis was like a vacant lot or like a new project cing before us,ut it sot,t s built. It s open, it s a00% occupd by ve low income seniors with disability, so I totallygree like wanto have tt conversation globally with t statend the tax refinancg and, and again that s abnmal to ben on new projects goi forward, but this project slready built. S already occd, it s alreadytabilized.O my estion, I think I ll get back you, Pat, isike at do we accomplish by voting no. I mean, any one of you guys can answer that question acmplished by voting yes other than I mean it easyo build these projecthen it 100% financed o tax dollar business. It s very easy a that s the part of the problem is, wre does it stop? Where doe,here do we, again, to borrow a uh, from the lt, uh where, whyon t they pay their fa share With this is on the taayer s back. This is a 100% on the ourur quality of life for our residen are paying therice, and tha s why I have a bigssue with supporting andncouraging these kind of projects Sure again, ifhat was a new projec on aacant lot or aga a new project gund up, this one s t. It s fully stabilid, s open, it s operating, it housing very low incomeeniors with disality, so whato you acmplish by votg? No. Uh no voteould keep the margins, guess, narwer onheir end, whereas a yes vote wou open up the margins even more so that they can pay themselves even more. So n we re rticipating and takingore taxpayer money andubsidizing eir salaries. I ll give you the numbers. So one of their top earners 2023. It s $635,0 they re comnsated for theear. One of them standi here today, 5 26624 That s justor the year 2023. Did the get a rse in ? Did they get another rse in5 So this thin margins a we re just scrapg by. I don buy it It s a $3.2 billi dollar enterise and how is it pa for? They converting taxpayer mey into this $3.2 billion dollar entprise wre they hav the enriched salaries, the re profiting off poverty. The ve turned a gravy train into tse subsidies So it going to happen wheth we vot no or yes I guess why would we vote yes and enrich themore Why would w vote yes and put o name on it when we campaign to the plic saying that we re oppos to government subsidies where less government,ore capitalism.Ou don t hav to pu your name on this right now, and it wl go forwa and it ll be fe, orou could put your name on I and you blowing nd into their cells and backingt. I didn t Iidn apove this project, but I c answ mywn question. So by voti no, you just increase exponeially the riskrofile th theyould default. I understand theyay they won t, but that s not a guantee So they cou deflt b what magnitude ishe risk increas? I saying there s no ceiling on it Like you guys d t control tha. Theyould defat, they lose their tax refinancing They re tellinge they won t.Hat s not a guarane. But wha is a guantee is if we vote y and approve ts, it will remain afrdable. The guarantee they ll not defau because if they default wipes out the city s $3illion loan. So at s gone.He risk is tha the seniors tha are the the most vulnerae of our society that are disabled withery low income, probably get evicted. An so by voting yes you guantee tha does not happen. You also guarant that we get the concessions for this, for this I m, I m still going if you don tind. If we vote yes, we guarantee we still g the concessions that staffegotiated for this said Teer hearing tight So the interest rate on our loa goes fro 3o 5%. That s $ llion more to the Cityver th life alone, which has t go into t homeme fun, home all caps for aordable housing prects. It doesot go to t general fund, but aga, that s more money. This has aot really tig strings attached, whic again we all disagree with. I wou as wel on a on future project tt s not relativeo this one, soe se that 3 to 5%nterest rate lose the $5000 a year when is tt they re willi to pa when ts was vant we were only gting,ased on that appraisedalue, $3000 a yearn property tax, right? The affordabili Covenants, I know you guys disagree with goin to 1 to 99, but athe end of AUGUST, the um Fe int Senior Vllas across fro Five Points they were only gonna give u a one year extensio on ourffordability nfidence, and we vot down to say, hey,an you guys ce back and givs more fordability Covenan to protecthose seniors that are in the, and we voted onhat one in the first meeting in SEPTEMBER to go from 1 to 3, so I don t understand the aversion I get it from going fm 60 to 99,ut the prite secto as Butch sai, has already told us ts cannot be develed. It a very sll property. It s awkward shapeike a Tetris piece. It got a flag lock o in Beach Boulevard. There s very limited few properties on Beachbowl over t one of theusiest, you know, stets in Orange County tt hasot beenevolved. Onl guys o the, on the east side on Slater becau he wants to build highensity housing. He s, he s,e s holding out. I m sure you guys aot all that tt lot I m talking about Soo build it s underparked, ery pvate sector developmt, housing, whatever, it s und Park. Thenly way to to do it is you can do a wrap,o you, you build the units around a parki structure. The property too all to dohat. You can t get engh units So you go subternean Butch touched on Subterranean p parng is 5070,000 p parking space to ild. N project will pencil. So again, the pvate sector said it c t be deloped. So let s say aft 60 years, the Afrdability Covenants burned off jv, can you kind of wk through that sta law that would be trigger once the fordability Covenan are set to expiren year0? What happens? Um, so there s a current ste law tt requires the owner t do some notifications. It s, it s actuay a notifation lawor when you he an affordlem covenants that pireo notify all the,he tenants of a project I 2024, the state law was strgthened, um, that it basical put some, uh, pieces in place so that uh there would be a greater attempt at preserving afrdabilityt the e of those, um, Covenant periods. Ando there s reall kind o two choes that you have wn you re about to have, um, expired covants, you re pposed to, uh, as an owner, a pro uh a project owner, they have to, um, put t property out to marke to affordable housingroviders andm they either he to accept o of thos offers, which then would preserve the aordability term for anoer 30 years. Um, and if they decideot to, and ty want toet the covenants expire,hey have t commit to maintaing the affordability for anoer 5 years.O, um, I guess no matter what athe end of theffordability ter, whatever it is. At a minimum, there has to be another 5 years of affordability on ts project. Than you. So that is 60 or 99 or whaver that whoever owns this willave to go through that exercise to do whaver th can to keep it affordabl. We just wenthrough the exercise at the end of AUGUST for 5 points to extend t Affordabilit Covenants, b let say it burns off and you guys propert tax analysis, so, you know, private secto owr comes in andries to I guessonvert it t a multi-family, it doesn t park so who s gonnaive there I a in a in a apamentomplex that you can t park. So but guess tt s a possibili So there s tha, there shat scenario, but I think Meredh, to answer your question is like, atoes this cost us Yes, on a new proct,00% agree with you guys, le this is a great conversati to have and this type of biness plan, but on is proje voting yes doesn t cost u anything. In fact, it gets u concessns that they . Offered 3 to 5 5000 a year, s 3 to 5% interes rate $5000 ye, the aordabilityomms, t more importantly, it guarant