TITLE
Recommendation to adopt the resolution to extend the time to June 23, 2010, in which properties at 224-248 East Broadway, acquired with Redevelopment Set-Aside Funds, can be held by the Long Beach Housing Development Company. (District 2)
DISCUSSION
In 1999, the Long Beach Redevelopment Agency (Agency) acquired the properties
located at 224-248 East Broadway and 133 North Long Beach Boulevard for the
purpose of developing a residential loft project, containing approximately 40 units, with ground floor retail. The Agency initiated a search for a qualified developer and selected Hansen Enterprises, who later partnered with Greystone Homes (now Lennar
Southcoast).
In order to increase the supply of affordable housing in downtown Long Beach, the
Agency also partnered with The Long Beach Housing Development Company (LBHDC), and agreed to sell 248 East Broadway to the LBHDC for a purchase price of
$1,039,394. In exchange for LBHDC's investment in the project, the Agency agreed to
restrict approximately 10 units in the proposed loft project to low- and moderate-income households. The LBHDC purchased the site from the Agency on June 23,2000.
The Agency has attempted to develop a mixed-use project first known as American
Hotel Lofts and then as Broadway Lofts with the LBHDC and two different developers. The last Agreement to Negotiate Exclusively expired in 2002. While not formally renewed, Agency staff continued negotiations with Lennar Southcoast. However, after more than two years of diligent effort, it appears that the site is simply too small to accommodate a financially viable project given the constraints of providing adequate parking and preserving the American Hotel faGade, which was required by the Cultural Heritage Commission.
California Health and Safety Code Section 33334.1 6 requires that property acquired
with Redevelopment Set-Aside Funds for low- and moderate-income housing be
developed for such housing within five years, unless such time period...
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