The city council abandoned the affordable housing project on Baseline Road after concluding that limits on funding no longer make the project financially feasible. But the council defended their resolve to provide affordable housing in Claremont despite the failure of this particular project.

The council instead decided to set up a task force to examine the best possible location and parameters of an alternative site. The group will consist of a varied mix of city staff and community members interested in affordable housing and should come back to the council with a set of recommendations within two months.

“In order to make something like this successful, something as controversial as this issue, it needs to have … a diverse representation on this task force and have all the parties be brought to the table,” Councilmember Corey Calaycay said.

City staff presented a bleak picture on funding possibilities at the council meeting after the Los Angeles County Community Development Commission (CDC) blocked up to $2.5 million for any project located within 500 feet of a freeway or “major urban road.” In addition, the city will lose out on additional funds due to a declining tax credit program.

“Over the past month, the proposed project pro forma has seen a $3.3 million hit from these two sources of funding,” said Brian Desatnik, housing and redevelopment manager for the city.

To make up some of the lost funding, staff looked into the possibility of seeking state money. But the state program would require changes to the project, significantly lowering the average income levels of its residents.

Even with the competitive state funds, the city would still need to come up with an addition $1.5 million, either taken from the general fund or by borrowing. Almost no additional money could be contributed from the city’s redevelopment agency, Mr. Desatnik said.

The council voted 3 to 2 against pursuing the state funds for the project, instead deciding to look for suitable alternatives to the Baseline site. Mayor Peter Yao and Mayor Pro Tem Ellen Taylor opposed the vote.

“I am not convinced that we have the money for this, that we will get the money for this [or] that we aren’t going to drag this out to the point where we lose our impetus altogether,” Councilmember Linda Elderkin said.

Members of the audience once again weighed in heavily on the controversial topic. Andy Winnick and Barbara Musselman, both city commissioners and proponents of the project, urged the city council to challenge the legality of the county’s decision to block funding for the project.

“There is a feeling basically that this was an improper act by the county,” Mr. Winnick said.

In response, Mayor Pro Tem Ellen Taylor requested that city attorney Sonia Carvalho look further into how the CDC came up with the decision to block the funding and verify whether a Brown Act violation might have occurred.

“I’m very concerned about the way this vote was taken,” Ms. Taylor said. “I find it really egregious that this was a staff decision.”

Moderating the meeting while Mayor Peter Yao was not feeling well, Ms. Taylor tried to maintain order amongst the outspoken audience. She threatened to have the room cleared, banged a gavel when clapping or cheers rang out and repeatedly interrupted speakers who veered off topic.

“This is really not a circus,” she said. “This is a very important policy issue we are trying to consider and we hope you give it the respect it is due.”

Nonetheless, several opponents of the project also spoke out at the meeting, arguing mainly against pouring more of the city’s money into the project. 

“This has been going on far too long—almost 4 years,” said Linda Kovach. “If we would have investigated alternative sites instead of concentrating only on this one site, we would have had affordable housing built and occupied by this time. Let’s put our egos and special interests aside. Let’s work together for the betterment of Claremont.”

The project has sparked controversy since 2005 when the city first purchased the land for nearly $2 million with the aim of building affordable housing at the site.

Many residents living in neighboring unincorporated county areas fought to get the project moved to a different location. Their elected official, Los Angeles County Supervisor Mike D. Antonovich, was heavily lobbied to take action against the project.

After the meeting, Assistant City Manager Tony Ramos said that county officials were aware of only two incoming project proposals within 500 feet of a freeway, including the Baseline Road project, before deciding to change funding guidelines.

The council’s decision marks the end of any agreement with Enhanced Affordable Housing, the project’s developer. The council did not discuss or approve a development agreement with Enhanced, and the exclusive negotiating agreement has expired.

The Baseline Road site can only realistically be revived for an affordable housing project if the county guidelines are changed to allow it to be funded or until the city was “able to miraculously find this money,” City Manager Jeff Parker said.

The council also voted unanimously to preserve the land solely for affordable housing purposes. If the land is sold, the money earned must be allocated to affordable housing. If the land is used for an alternative project, such as a new police station, the city would have to purchase the land from its own redevelopment agency with funds going toward building affordable housing, Mr. Desatnik said.

More details of the makeup of the task force will be decided at the next city council meeting on February 26, Mr. Ramos said.

 

 — Tony Krickl