HomeMy WebLinkAboutLa Pine Affordable Housing Project UpdateProperty & Facilities Department
Susan C. Ross, Director
14 NW Kearney Street, Bend, OR 97701-1960
(541) 388-6594 • Fax: (541) 317-3168
www.co.deschutes.or.us
MEMORANDUM
TO: Board of County Commissioners
COPY: Dave Kanner, Erik Kropp
FROM: Teresa Rozic, Property & Facilities Department
DATE: August 20, 2008
RE: Affordable Housing Project — La Pine
Pacific Crest Affordable Housing
In my June update to you I reported that the developer had obtained approval to
proceed with a full application for USDA Rural Development Section 538 funds. The
USDA funds significantly closed the funding gap but Pacific Crest still must raise
approximately $250,000 - $300,000. Because it was not possible to obtain final
approval for the loan guarantee by June 30th (the original deadline to close the funding
gap for this project) and to allow time for the developer to raise the additional funds, the
Board granted an extension to September 30, 2008.
The USDA deadline to submit the application for Section 538 funds is September 8th
They will not accept an application for a project that is not 100% funded. Oregon
Housing and Community Services (OHCS) expects to receive millions of dollars from
the Housing and Economic Recovery Act of 2008 (the "housing stimulus bill"), some
specifically identified for increased tax credits for affordable housing. Pacific Crest will
apply for additional tax credits this week but OHCS's answer will not come in time to
meet the USDA deadline. In addition to the tax credits, Pacific Crest may be eligible for
private foundation grants for the difference between the Little Deschutes Lodge costs
and the Section 538 funds.
Pacific Crest would like an extension to December 31, 2008.
Quality Services Performed with Pride
Road Development
The estimates received from an engineer for construction of the road is $280,000 which
includes street improvements, extensions of both water and sewer, and engineering and
surveying costs. A memo from Richard Nored, president of HGE Engineering, is
attached for reference. The cost of just the Memorial Lane portion, which Vic Russell
was responsible for building per a development agreement with the County, is
estimated at $80,000. We have asked him to participate in the cost of this road, and he
has agreed that he can participate with his share with road improvement labor and
materials but not with cash. With the business downturn in the building industry,
he does not have cash available to contribute.
Staffs recommendation is that the County contribute the road development costs with
funds available in the business loan fund. There is currently a balance of more than
$400,000 in that fund. The fund was originally capitalized with a community
development block grant from the State, and the purpose of the CDBG funds is to
develop projects that serve low income residents. This housing project clearly meets
that intent. County's share of the cost, with Vic Russell's participation, is $240,000.
2
HGE
ARCHITECTS
ENGINEERS
SURVEYORS
PLANNERS
■
375 PARK AVE
COOS BAY
OREGON
97420
■
541.269.1166
FAX 541.269.1833
CELL 541.404.3791
rnored@hgel.com
■
Richard D. Nored, P.E.
Joseph A. Slack, A.I.A.
Russ Dodge, PLS
Stephen R. Cox
July 28, 2008
Deschutes County
14 N.W. Kearney Street
Bend, OR 97701
Attn: Susan Ross
Property & Facilities Director
Re: Engineering and Infrastructure Costs
for Affordable Housing Project - AMENDED
LaPine, Oregon
Dear Susan:
In follow up to our estimates on July 14, we now understand ownership issues more
clearly, and should be able to offer better overall cost projects. We have looked at the
most cost effective needed infrastructure to serve the Affordable Housing Project in
LaPine (Little Deschutes Lodge), and recommend the following infrastructure approach
for serving the development.
Overall Recommendations
1. Water. A new 12" line should be extended from the North boundary of
the Senior Center to interconnect with existing facilities at Memorial
Lane. In addition, since access will be down Memorial Lane, water
should be extended through the East side of a proposed new road
separating Tracts # 2 and # 3, hereinafter designated as "LDL Road".
2. Sanitary Sewer. There are alternatives, but the most cost effective
approach would be to extend the existing 8" sanitary sewer that was
moved out from under the County paving project on Huntington Road.
The existing line is approximately 350' South of the developed portion
of Victory Way. Depth of this line should allow for a gravity connection
to the planned development. Normal LaPine Special Sewer District
policy is to require development to extend facilities to and through the
property being served. However, because of depth, it would appear that
the line extension could end about 250 feet South of Memorial Lane,
where the line would be approximately 4' in depth. It might also be
possible to provide sewer infrastructure in 2 phases, since initial
thoughts were that the Affordable Housing Project would be built in 2
phases. Our estimates do assume that sanitary sewers would be
provided in one phase. A 0.48 Acre parcel of Tract 2, and the property
North of Memorial Lane would not receive service from the proposed
sewer. It is anticipated that the property North of Memorial Lane will
receive sewer service to the North, and the 0.48 acre parcel could be
served in either direction, dependent on the planned elevation of the
building.
3. Street Construction. We have assumed that street construction would
include Memorial Lane to the East side of the LDL Road R/W,
extending down LDL Road to Crescent Creek Drive.
Engineering and Infrastructure Costs for Affordable Housing Project LaPine, Oregon
July 28, 2008 -AMENDED
Page 2
Construction costs for the proposed work appear as follows:
1. Water - $ 61,525
2. Sanitary Sewer - $ 82,800
3. Street Improvements - $ 92,250
4. Increased Costs for Plat to dedicate Memorial Lane to East side of
LDL Road separating Tracts 2 and 3 - $ 1,500
5. TOTAL INFRASTRUCTURE - $ 238,075
The plat costs shown include a modification to the tentative partition plat to dedicate a portion of
Memorial Lane, and add one additional lot South of Memorial Lane to the original proposal.
We estimate engineering and surveying costs for the needed infrastructure as follows:
1. Preliminary Surveying - $ 2,560
2. Survey Stakeout for Construction - $ 8,000
3. Design and Construction Management - $ 17,900
4. Construction Inspection - $ 13,000
5. TOTAL ENGR. & SURVEYING $ 41,460
Inspection costs can be variable, but we have assumed full time inspection for the buried
infrastructure, andlimited inspection for street improvements.
The portion of the project along Memorial Lane should be shared between various parcels and
entities. A breakdown of construction, engineering and surveying costs for the Memorial Lane
portion of the project appears as follows:
1. Increased Costs for Plat to dedicate Memorial Lane to East side of
LDL Road separating Tracts 2 and 3 -
2. Water and Street on Memorial Lane -
3. Engr. and Surveying on Memorial Lane -
4. TOTAL MEMORIAL LN. COST TO BE
SHARED BETWEEN PARTIES -
$ 1,500
$ 71,380
$ 7,140
$ 80,020
We would appreciate the opportunity to work with you on this project, and can provide services
within a mutually agreeable time frame. If you have any questions, please contact me.
Very truly yours,
HGE INC., Architects, Engineers,
Surveyors & Planners
Richard D. Nored, P.E.
President
HGE
I I;v
ARCHITECTS, ENGINEERS, SURVEYORS & PLANNERS
375 Park Avenue, Coos Bay, Oregon 97420