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Bank of America Low-Income Housing Challenge 2011 Poly Collaborative Housing California Polytechnic State University SAN LUIS OBISPO, CA ENTRADA RANCH

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Page 1: ENTRADA RANCH - Amazon Web Servicescontent-calpoly-edu.s3.amazonaws.com/planning/1/...from Entrada Ranch, will create over 250 jobs. The majority of employees at Irish Hills Plaza

Bank of America Low-Income Housing Challenge 2011Poly Collaborative HousingCalifornia Polytechnic State University

SAN LUIS OBISPO, CA

ENTRADA RANCH

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POLY HOUSING COLLABORATIVE | BANK OF AMERICA LOW-INCOME HOUSING CHALLENGE 2011

2

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ENTRADA RANCH

Acknowledgments

The Bank of America Low-Income Housing Challenge brings an interdisciplinary team of students together to work on a realistic development. In the process, invaluable knowledge and experience is exchanged between teammates. However, the success of the project would not have been possible without the strong community support received from professors, professionals, and advisors always willing to offer support, critiques, and time throughout the project process. We thank all of our supporters for their ongoing encouragement. We would also like to thank Bank of America Merrill Lynch for facilitating this competition.

Clint Pearce Developer, Madonna EnterprisesR. Thomas Jones Dean, College of Architecture and Environmental Design, Cal Poly San Luis Obispo Hemalata C. Dandekar City & Regional Planning Department Head, Cal Poly San Luis ObispoUmut Toker City & Regional Planning Professor, Cal Poly San Luis Obispo Jun Hyunh Kim Landscape Architecture Professor, Cal Poly San Luis Obispo Gary Clay Landscape Architecture Professor, Cal Poly San Luis ObispoPhillip Barlow Construction Management Professor, Cal Poly San Luis Obispo Scott Kelting Construction Management Professor, Cal Poly San Luis ObispoMike Montoya Construction Management Professor, Cal Poly San Luis ObispoTom Fowler Architecture Professor, Cal Poly San Luis ObispoWalker Wells Director of Green Urbanism, Global Green USARobert A. Hill Executive Director, The Land ConservancyStephen Rigor Arris Studio ArchitectsDana Lilley Supervising Planner, San Luis Obispo CountyPhil Dunsmore Long Range Planning, City of San Luis ObispoKim Murry Long Range Planning, City of San Luis ObispoTyler Corey Housing Programs, City of San Luis ObispoTina Slusher Permit Coordinator, City of San Luis ObispoShelly Stanwyck Parks & Recreation Director, City of San Luis ObispoSheridan Bohlken Parks & Recreation, City of San Luis Obispo Neil Havlik Natural Resources Manager, City of San Luis ObispoKen Trigueiro People’s Self Help Housing and Housing AuthorityJoan Sullivan San Luis Obispo County Historical SocietyJames Ostrom Forest City Development- High Def Design Jim Rendler ForTheFuture HousingMaria Joyce Maynard Bank of America Merrill Lynch, Community Development BankingLori Saito Wells Fargo, Community Lending and InvestmentClay Appleton Mission Community BankM. Dolores Berber-Jimenez Department Chair, Cal Poly Liberal StudiesDavid Headrick Cal Poly Organic FarmTim Banducci California-West, Inc., Real Estate ManagementKim Mondelli CSG Advisors

acknow

ledgments

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POLY HOUSING COLLABORATIVE | BANK OF AMERICA LOW-INCOME HOUSING CHALLENGE 2011

For Dan Panetta. May your memory be eternal!

Ded

ication

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table of contents

Table of Contents AcknowledgmentsProject IntroductionExecutive Summary

1. The MarketNeeds Analysis..............................................................................................................................................................................................8Population Served.......................................................................................................................................................................................8Housing Market............................................................................................................................................................................................9

2. The SiteLocation.........................................................................................................................................................................................................11Surrounding Amenities & Services...........................................................................................................................................................11Existing Site Conditions..............................................................................................................................................................................13Environmental Review and Mitigation....................................................................................................................................................13 Project Amenities........................................................................................................................................................................................13

3. EntitlementsRegulatory Context......................................................................................................................................................................................14

4. Design ConceptDesign Overview .........................................................................................................................................................................................16Site Plan..........................................................................................................................................................................................................17Residential Program.....................................................................................................................................................................................18Floor Plans......................................................................................................................................................................................................18, 20Building Elevations.......................................................................................................................................................................................19,21Building Perspectives...................................................................................................................................................................................19, 21, 22 Materials & Finishes......................................................................................................................................................................................23Landscaping..................................................................................................................................................................................................23Amenities.......................................................................................................................................................................................................24Sustainability.................................................................................................................................................................................................25LEED for Neighborhood Development....................................................................................................................................................26

5. Resident Services and Community EngagementResident Services and Programs...............................................................................................................................................................27Community Outreach and Engagement.................................................................................................................................................28

6. Financing Structure..............................................................................................................................................................29

7. Development TimelineDevelopment Schedule..........................................................................................................................................................................38Construction Schedule............................................................................................................................................................................40

8. Developer Capacity..............................................................................................................................................................42

9. Work Product Disclosure & Meet the Team..................................................................................................42, 43

10. Appendix.....................................................................................................................................................................................44

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POLY HOUSING COLLABORATIVE | BANK OF AMERICA LOW-INCOME HOUSING CHALLENGE 2011

exec

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summary

DeveloperMadonna Enterprises

Location 12615 Los Osos Valley Road, San Luis Obispo, CA 93405

Total Site Acreage11.6 Developable

Development CostTOTAL: $23,769,486

Key Financing SourcesConstruction & Permanent BondSan Luis Obispo County Housing Trust FundCA HCD Predevelopment Loan ProgramCommunity Development Block GrantHOME Investment PartnershipCity of San Luis Obispo Affordable Housing Fund4% Federal Low Income Tax CreditsSale of Single Family LotsSale of Commercial LotsDeveloper Contribution

Unit TypeRental100% Affordable

Total Units135 Apartments & Townhomes

Unit Breakdown16 Studios32 One Bedroom Units44 Two Bedroom Units27 Three Bedroom Flats16 Three Bedroom Townhomes

Target PopulationLow-wage-earning families

AmenitiesCommunity CenterWetlandsTrail AccessHealthy LivingGreen Design StrategiesWoonerf StrategiesCommunity GardensHistoric ReuseProximity to Services

Project Overview

exec

utive

summary

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executive summary

Executive Summary

The City of San Luis Obispo (SLO) is located in the heart of California’s Central Coast and is home to approximately 45,000 residents. The population is composed of college students, retirees, and a professional workforce employed by governmental offices and institutions. This mix, combined with the City’s long standing slow-growth policy, has made for a critical and chronic shortage of housing available to people of lower and moderate incomes. The Poly Housing Collaborative (PHC), in partnership with Madonna Enterprises, proposes this innovative project to improve the affordable housing need with a mixed-use, residential and commercial project strategically located on a site within close proximity to existing and future jobs, services and amenities. The project will address the local and regional housing needs by providing 135 affordable units which includes: studios, one, two and three bedroom apartments and three bedroom townhomes on 11.6 developable acres.

The site has potential for creating successful affordable housing because:• The City of San Luis Obispo has already earmarked

this location in its General Plan Housing Element for acquisition and potential housing development

• It has a developer and property owner with a longstanding history of investments in the region

• It is close to services offered by both the public and private sectors

• There are a variety of well-established open space and recreational areas adjacent to the site

The natural features of the site include wetlands, creeks, trails and scenic views of the beautiful San Luis Obispo hills. These make the site conducive to successful affordable rental units. These features also make the case for both commercial feasibility and are attractive for potential development. The Project site is challenging because of its proximity to wetlands. However, PHC has worked with the Land Conservancy to fulfill proper impact mitigations, preservation, and to meet all regulatory requirements.

PHC proposes to develop Entrada Ranch, a sustainable, walkable, mixed-use and affordable community that enhances and diversifies the available housing stock in SLO. The project includes a substantial amount of low, very-low and extremely-low income housing units that are designed to receive cross-subsidy from the sale of undeveloped commercial and residential lots. Madonna Enterprises, our developer partner and owner of the site, supports our design solution which incorporates amenities, sustainable design, minimizes lifecycle energy consumption, facilitates healthy lifestyles and utilizes the surrounding natural landscape. By providing additional housing units at higher densities, PHC will support a local workforce that currently cannot afford to live within the City.

The project goals include:• Creation of a development that is focused on healthy

living practices• Creation of a safe and enjoyable environment for

families with access to amenities both on and off-site• Implementation of sustainable design solutions,

including LEED for Neighborhood Development certification

• Creation of an interactive and walkable community that will reduce residents’ commute to work

• Establishment of a financially viable development

The Entrada Ranch project provides a valuable benefit for the San Luis Obispo community by offering a much needed supply of affordable housing in an innovative and environmentally friendly atmosphere that is close to job opportunities and amenities.

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Needs Analysis The need for more affordable housing in San Luis Obispo is pressing. San Luis Obispo contains the largest concentration of jobs in the County. During the work week, the City’s population increases from 45,000 to an estimated 70,000 persons (SLO 2010 Housing Element), and a portion of the commuting population would readily become residents if there was a greater supply of affordable housing. Due to the City’s higher housing costs compared to nearby cities many must live elsewhere. Figure 1.1 compares San Luis Obispo with other cities in the county for percent of renters paying more than 30 percent of their income on housing according to the American Community Survey’s 5-Year Estimates. The figure shows that 74 percent of renters in San Luis Obispo pay more than 30 percent of their income on housing costs, the highest percent in the county. Providing more affordable housing within the City will reduce the number of commuting workers and lower vehicle miles traveled. This, in turn, reduces emissions and helps the City meet the reduction goals set forth in the City’s Climate Action Plan.

The lack of affordable housing might also contribute to the growing homeless population in the last few years. Since 2007 the number of homeless people in the county jumped from 2,400 to 4,000 with the number one reason cited being the inability to pay rent (2010 Enumeration Report). Rent costs are inflated within city limits because of its desirable location and landlords charging higher rents for individual rooms and units due to constant demand for housing by local college students. The City of San Luis Obispo has a responsibility, as well as the available land, to meet a growing need for more affordable housing.

According to the U.S. Department of Housing and Urban Development (HUD) standards, households are rent-burdened if they pay more than 30 percent of annual income on rent and severely rent-burdened if they pay more than 50 percent. Figure 1.2 shows what is considered the maximum affordable rent based on income group and unit type. Currently, few rental units in the City of San Luis Obispo meet these price points.

Based on the Maximum Monthly Rent Affordability Standards described in Figure 1.2, the San Luis Obispo Council of Governments (SLOCOG) has allocated each city’s fair share of affordable housing units for 2007-2014 to be 1,589 units as shown in Figure 1.3.

Poly Housing Collaborative’s intention is to serve a majority of low-income individuals and families. Entrada Ranch helps fulfill part of the need for affordable housing based on workers’ incomes and focuses on the need as a result of an increase in low-wage jobs. The average retail worker in San Luis Obispo earns approximately $9/hour providing approximately $18,000 annual income working a 40-hour work week. As Figure 1.4 indicates, based on this income level, the employee would fit the profile of someone in need of affordable housing.

Population Served The Entrada Ranch project aims to serve the diverse population that is currently working within San Luis Obispo by increasing the amount of available affordable housing units. This population includes low income families and individuals. The development specifically targets the employees of the Irish Hills Plaza and other nearby businesses. It is anticipated that the Prefumo Creek Commons development, anchored by Target and currently under construction across the street from Entrada Ranch, will create over 250 jobs. The majority of employees at Irish Hills Plaza and the upcoming Perfumo Creek Commons development are paid salaries that would qualify them for affordable housing.

1. The Market

CityPercent renters paying more than

30 percent of incomeSan Luis Obispo 74%Pismo Beach 57%Paso Robles 54%Atascadero 53%Arroyo Grande 51%

San Luis Obispo County

Figure 1.1 San Luis Obispo County Rent Burden

Source: American Community Survey Five Year Estimates

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SFH MFH TotalExtremely Low (<30%) 0 185 185Very Low (30-50%) 0 185 185Low (51-80%) 104 155 259Moderate (81-120%) 118 177 295Above Moderate (>120%) 266 399 665TOTAL UNITS 488 1,101 1,589

Income Category (% of County Median Income)

Regional Housing Need Allocation

Income Group1 2 3 4 5 6 7

Extremely Low 15,250 17,400 19,600 21,750 23,500 25,250 27,000Very Low 25,400 29,000 32,650 36,250 39,150 42,050 44,950Lower 40,600 46,400 52,200 58,000 62,650 67,300 71,950Median 50,750 58,000 65,250 72,500 78,300 84,100 89,900Moderate 60,900 69,600 78,300 87,000 93,950 100,900 107,900

Number of Persons in HouseholdFigure 1.3 City of San Luis Obispo Housing Need, Source: City of San Luis Obispo General Plan

Figure 1.4 San Luis Obispo Maximum Income for Affordable Income Groups by Size of Household, Source: City of San Luis Obispo Affordable Housing Standards

Housing Market The total number of households in SLO is approximately 20,222, with an area median income of $39,827 (CA Department of Finance, 2008). The available stock of housing units is approximately 8,322, 42.4 % of which are owner-occupied and 11,305, or 57.6%, are renter-occupied. The high percentage of renter occupied units is mostly attributed to the number of college students residing in the City. As of May 2009, there are 804 affordable housing units in the City. A summary of the existing affordability levels, term of affordability, and housing types are shown in Figure 1.5. Along with the 804 affordable housing units that exist in SLO, there are many projects in the pipeline that were approved, are under construction, or were built since the most recent

Income GroupStudio 1 BR 2BR 3BR 4BR

Extremely Low $381 $435 $489 $544 $587Very Low $634 $725 $816 $906 $979Lower $761 $870 $979 $1,131 $1,262Moderate $1,057 $1,208 $1,359 $1,510 $1,631

Dwelling SizeSan Luis Obispo 2010 Maximum Monthly Rent Affordability Standards

Figure 1.2 San Luis Obispo Maximum Rent Thresholds, Source: City of San Luis Obispo Affordable Housing Standards

Housing Element Update for the City’s General Plan. Of the 1,589 housing units allocated to the City by SLOCOG from January 2010 to December 2014, 1,033 have met and exceeded the need for above moderate income housing units. However, there is still a need for 678 affordable units (moderate, low, very low and extremely-low). According to the City of San Luis Obispo’s General Plan, the cost of housing in San Luis Obispo has risen sharply in recent years while average household incomes have either slowly risen or remained steady. As a result, in 2008, approximately one half of households could afford a median-priced home based on their annual income. The median sale price for a single family home in San Luis Obispo was $454,000 through

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The Entrada Ranch Development addresses these goals by educating stakeholders and the community on the project and need for affordable housing. It also provides a large contribution to reaching the Regional Housing Need Allocation while integrating sustainable design into the entire project through LEED for Neighborhood Development certification.

February 2011 according to Zillow.com, an online real estate tracking database. The current housing market is still struggling to rebound from the 2008-2009 economic recession and building permits issued by the City declined by 40 percent from 2007 to 2008. Nearly 60 percent of San Luis Obispo householders are renters and according to the American Community Survey’s 2007-2009 estimate, the median gross rent was over $1,100. Despite San Luis Obispo’s unofficial “slow growth” policy, there is still plenty of space in which the City can grow and increase its housing stock. A City inventory of residential capacity conducted in 2009 revealed there are 640 vacant and underutilized parcels and nearly 800 additional acres within the Urban Reserve that could accommodate approximately 4,100 dwellings. There are approximately 5,800 city residents that are eligible for affordable housing units in Entrada Ranch. These residents earn 50% or less of the Area Median Income and could potentially qualify for the low, very low, and extremely low residences that are built. This total number could be greater if people that currently work in SLO, but live elsewhere due to unaffordable housing costs, are included.

San Luis Obispo Housing ElementThe San Luis Obispo Housing Element was updated in 2010 and includes the following basic objectives:• Increase public awareness and understanding of the

City’s housing situation and goals to encourage public participation in addressing housing needs

• Provide a comprehensive document that includes goals, policies and programs to guide community efforts to meet housing needs through informed decision-making on land use and housing choices

• Develop more affordable housing and a wider variety of housing to meet the City’s housing needs from January 1, 2010 to December, 2014

• Track and document effectiveness of City programs in meeting housing needs, and evaluate opportunities for improving programs

• Enable the City to secure financial assistance for construction of affordable housing for very low-, low- and moderate income persons

• Full integration of environmental sustainability, “smart growth” and conservation strategies into housing policy.

(City of San Luis Obispo Housing Element, 2010)

Affordability Level Number of UnitsVery Low 37Very Low and Low 3Low 686Low and Moderate 47Moderate 31Total 804

Affordability Term Number of UnitsIndefinite 68930 Years 115Total 804

Housing Type Number of UnitsApartment 769Condo 7Group 0Single Family 22Women’s Shelter 6

A B A-B

New Constructio

n Need (RHNA)

Dwelling Units Approved,

Under Construction or

Built

Remaining Need

Dwelling Units

Extremely-Low (<31% of AMI) 185 8 177

Very Low (31-50% of AMI) 185 164 21

Low (51-80% of AMI) 259 32 227

Moderate (81-120% ogf AMI) 295 42 253

Above Moderate (over 120% of AMI) 665 1,033¹ (665) 0¹

Total Units 1,589 1,279 (911) 678

Income Category

Figure 1.8 Remaining Affordable Housing Need Source: City of San Luis Obispo Community Development Department, 2010 1No credit allowed for the number of units built that exceed RHNA.

Figure 1.5 Existing Affordable Units in the City of San Luis Obispo, Source: City of SLO

Figure 1.6 Affordability Term of Existing Units, Source: City of SLO

Figure 1.7 Existing Affordable Housing Unit Types, Source: City of SLO

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Location and Surrounding Amenities & Services The site is located off US Highway 101, at 12165 Los Osos Valley Road, a major thoroughfare into the City of San Luis Obispo (Figure 2.1). The project aims to enhance this southern gateway into the City. This area of SLO features many large-scale commercial and retail developments that can support and serve a project of this size. The major developments in the immediate vicinity include: Irish Hills Plaza and Prefumo Creek Commons with “big-box” retail, several car dealerships and a Marriot Hotel. There are also many local educational and recreational services such as schools, public parks and public transportation nearby (Figures 2.2. and 2.3). These amenities and services make the site very desirable for future residential development.

Name Service DistanceFire Station 4, 1395 Madonna Road Fire 0.4 miNew Frontiers Grocery 0.1 miFood 4 Less Grocery 1 miSpencer's Market Grocery 0.5 miFrench Hospital Medical Center Hospital 3.7 miSierra Vista Regional Medical Center Hospital 5.4 miSan Luis Obispo Library Library 3.3 miIrish Hills Natural Reserve Open Space/Trails 0.9 mi Laguna Lake Park Park 1.6 miLaguna Hills Park Park 1.4 miVista Lago Park Park 1.1 miCostco Pharmacy/Grocery/Retail 0.35 miTarget Pharmacy/Grocery/Retail 0.25 miCVS Pharmacy Pharmacy 0.6 miU.S. Post Office, 1655 Dalidio Drive Post Office 1.1 miRoute 4 Bus Stop Public Transportation 0.1/0.3 miRoute 5 Bus Stop Public Transportation 0.1/0.3 miDowntown San Luis Obispo Retail and Services 3.1 miLaguna Village Shopping Center Retail and Services 0.5 miIrish Hills Shopping Center Retail and Services 0.25 miPerfumo Creek Commons Retail and Services 0.25 miLaguna Middle School School 1 miC.L. Smith Elementary School 1.2 mi

Figure 2.1 Site Location

2. The Site

Figure 1.8 Remaining Affordable Housing Need Source: City of San Luis Obispo Community Development Department, 2010 1No credit allowed for the number of units built that exceed RHNA.

Figure 2.2 Neighborhood Services

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Costco

New Frontiers Market

Future Target

Laguna Lake Park

DowntownSan Luis Obispo

Food4Less

Spencer’sMarket

= PHARMACY

= PARKS

= MIXED RETAIL

= GROCERY STORES

= SCHOOLS

= ROUTE 4 BUS

= ROUTE 5 BUS

= FIRE STATION

= POST OFFICE

= SITE

Laguna LakeGolf Course

Laguna Middle School

C.L. SmithElementary

Paci�c BeachContinuation H.S.

LEGEND

0 ft 500 ft 1000ft 1500 ft

CVS

= EXISTING TRAILS

ENTRADA RANCH SITE

w

1/2 Mile Radius 1/4 Mile Radius

Home Depot

Auto Dealerships

Figure 2.3 Site Context Map

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Existing Site Conditions The proposed project is located adjacent to City of San Luis Obispo’s southwestern boundary. The project site is less a mile from Madonna Road and South Higuera Street, two major local thoroughfares into and out of the City, and less than half a mile from Highway 101. Access to the site will be from Los Osos Valley Road via any of the three thoroughfares. Currently the project site is at the foot of the Irish Hills and is undeveloped vacant land composed of wetlands and the Froom Creek, two important land features. There are approximately ten acres of wetlands that form a natural eastern boundary and buffer to Los Osos Valley Road while Froom Creek, which takes a “U” shape, forms a natural western boundary between the hillside and project area. The land for the planned Entrada Ranch development is currently owned by PHC’s developer-partner Madonna Enterprises. In exchange for the development fee and becoming a partner of the Entrada Ranch LP after syndication is completed, Madonna Enterprises is willing to donate the land. Due to the current ownership of the land and the desire of our developer-partner to build low-income housing on this site, there should not be any issue maintaining site control during the various approvals and subdivisions prior to construction. A survey of the existing conditions reveals that approximately nine acres of the total 11.6 developable acres are composed of cropley clay and about 2.2 acres of Diablo and cibo clays. Cropley clays are usually found on alluvial fans, floodplains, and basins while Diablo and Cibo clays are found on hillsides. Given the mix of soil types and slow surface runoff properties of Cropley clay, the site is ideal for building housing.

Environmental Review and Mitigation The project site contains areas that are delineated as wetlands pursuant to Federal and State standards. An Environmental Impact Determination of the project will be completed prior to development to ensure the built environment will not interfere with the wetlands. The site currently contains a storm water retention pond that serves the Irish Hills Plaza and was built with a holding capacity that will serve the Entrada Ranch development. The retention pond was built to the highest standards of the Army Corps of Engineers to comply with CEQA regulations (California Environmental Quality Act). The following permits will be collected prior to development to ensure minimal disturbance of wetlands:

• Department of Fish and Game 1600 Permit• Permit from the Water Quality Control Board• Nationwide permit from the Army Corps of Engineers• National Pollutant Discharge Elimination System Permit Given the presence of the wetlands and natural water drainage on the site, PHC will properly mitigate and plan for future restoration of the sensitive habitats on the site. Some roads and all parking lots will be paved with pervious materials to minimize the amount of storm water runoff from impervious materials. There will not be any development located within the required setback of the wetlands and the project incorporates the natural environment into its design solutions thus reducing the overall impact of development on the land.

Project Amenities Entrada Ranch amenities encourage a healthy lifestyle for its residents and includes several amenities to enhance the quality of life for the community while conserving the surrounding natural habitat. Future commercial development, a community center at the heart of Entrada Ranch, community gardens, and trail access will be connected by a centrally located and pedestrian-only axis. Through innovative streetscape design, the site will tie into the other nearby commercial amenities. Other strategies that contribute to the living experience at Entrada Ranch development include green design features that minimize human impacts on the built environment and a cultural preservation plan to adaptively reuse the structures on the historic Froom Ranch property to the Southwest of the project.

Figure 2.4 Sketch of the Historic Froom Ranch by local artist Joan Sullivan

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Regulatory Context The Entrada Ranch project site is currently under the jurisdiction of the County of San Luis Obispo but within the City of San Luis Obispo’s urban reserve boundary. Any development within the urban reserve is subject to discretionary approval by the County prior to annexation and must also comply with City standards for bus stops, walking paths, landscaping, setbacks, and architectural character. The City of San Luis Obispo has identified the site as underutilized and earmarked for future housing development (Figure 3.4). Under the County’s General Plan the project site

3. Entitlements

Use Number of off-street parking spaces requiredAffordable multi-family dwellings

1 per studio apartment: 1 for first bedroom plus 1/2 for each additional bedroom in a unit

Market Rate multi-family dwellings

1 per studio apartment: 1-1/2 for first bedroom plus 1/2 for each additional bedroom in a unit

day-care Two spaces plus one per 14 clientsGeneral retail - 2,000 sf or less One space per 300 square feet gross floor area

Guest Spots 1 per every 5 spotsBike Spots 1 per every 20 car spots

Parking Requirements

Density Up to 15 units per acre

Floor-to-Area Ratio 35% maximum

Height Not more than 35 feet

Setbacks & Open Space 25 feet front setback; no side or rear setback; 10 foot minimum between residential buildingsOff-street Parking Resident parking: 1 per one bedroom or studio unit, 1.5 per two bedroom unit, 2 per three or more

bedrooms, plus guest Parking: 1 space, plus 1 for each 4 units, or fraction thereof beyond the first four.

Signage The allowed area for the wall signs shall be fifteen percent of the building face, up to a maximum of eighty square feet. Such wall signs may be located on building faces other than those with public entrances. One suspended sign with a maximum area of ten square feet for each business or tenant.

Trees/Foliage A planting plan shall be submitted as part of the landscape plan and shall contain the location of all trees existing in or within fifty feet of areas proposed for grading or other construction, that are eight inches or larger in diameter at four feet above natural grade. Trees proposed to be removed shall be identified.

Development Standards and Regulations, Current Zoning under County Jurisdiction

Zoning (C-R) Retail Commercial

Permitted Uses several, including multi-family dwellings, offices, social service organization

Density Up to 36 units per acre

Floor-to-Area Ratio 3.0 maximum

Height 45 feet maximum

Setbacks & Open Space 25 feet front setback; no side or rear setback; 10 foot minimum between residential buildingsOff-street Parking 1 per studio apartment: 1-1/2 for first bedroom plus 1/2 for each additional bedroom in a unit, plus 1

for each five units in developments of more than five units.om unit, 2 per three or more bedrooms, plus guest Parking: 1 space, plus 1 for each 4 units, or fraction thereof beyond the first four.

Signage A sign permit shall be obtained for any proposed signage. Maximum sign areashall not exceed 32 square feet.

Trees/Foliage Landscape design plan, showing location, size, type, and quantity of proposed plants; existing trees to be removed or retained, noted by type, location, trunk diameter and height,overall condition and expected life span

Development Standards and Regulations, Future Zoning under City Jurisdiction

Figure 3.1 City of San Luis Obispo Parking Requirements, Source: City of SLO

Figure 3.2 County of San Luis Obispo Development Standards, Source: County of San Luis Obispo, Zoning Ordinance

Figure 3.3 City of San Luis Obispo Development Standards, Source: City of San Luis Obispo Zoning Ordinance

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ENTRADA RANCHentitlem

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is zoned Commercial-Retail and is expected to be annexed for residential and commercial development. Upon approval of development plans, the City will most likely designate a Planned Development Overlay Zone (PD) zoned Commercial Retail which allows up to 36 units per acre. There are several permitted uses within the anticipated zoning district that facilitate a mixed-use environment. Uses may range from specialized education or training facility to multi-family dwellings. Given the current need to meet housing goals as defined by the SLO Housing Element, PHC anticipates minimal challenges to obtaining the permit to build multi-family dwellings.

Project Site

According to Chapter 17.16.060 of the City’s Zoning Regulations, parking is determined by its associated land use as shown in Figure 3.1. One of the advantages of Entrada Ranch is that it qualifies for the City’s maximum 30 percent parking reduction through a series of design solutions and access to public amenities. Entrada Ranch will also include bicycle parking in which the number of bicycle parking spaces is 15 percent of automobile parking. At least 40 and 50 percent of the 15 percent must be reserved for short-term and long-term bicycle parking, respectively.

Figure 3.4 Potential Areas of Rezoning or Residential Land Uses, Source: City of San Luis Obispo General Plan

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Design Overview: The project site’s location at the foot of the beautiful rolling Irish Hills presents an opportunity to enhance and protect existing viewsheds particularly of Cerro San Luis, Bishop Peak, and Cuesta Ridge, all of which have been incorporated into the site design. The site also provides recreational access to the trails already established in the Irish Hills Recreational space which border the site to the west.

While the site has vehicular access to Froom Ranch Way to the north of the site, a new traffic light and through-intersection at Auto Park Way has been approved by the City which will allow the site to be joined to Los Osos Valley Road on the eastern portion of the site. This will provide vehicular traffic with a convenient entrance and egress to a major arterial road.

The Entrada Ranch development provides its residents with direct access to nature by incorporating surrounding wetlands and the Froom Creek into the design of the overall site. The Froom Ranch Properties will also be restored to serve as a reminder to the community of the site’s pastoral and agrarian beginnings.

Site opportunities have been optimized to enhance the project goals of creating a walkable, healthy, safe and sustainable neighborhood. The site plan (Figure 4.2) includes a variety of housing types and sizes. The development is laid out on a grid pattern to maximize solar orientation and pedestrian, bicycle, and vehicular circulation.

Height variation is important in the design so that there is a gradual incline in building elevation when looking onto the site from the road. To achieve this goal, the majority of the townhome blocks (which are all two-stories in height) have been placed between the four-story High Def apartment buildings as seen in Figure 4.2.

PHC was inspired by a project by Hunt Hale Jones Architects that untilizes an innovative multi-story development over a V-A wood frame podium. The building can accommodate 35-40 units per acre and is shown in Figure 4.1. This established the basis of the design concept which meets the City of San Luis Obispo’s strict parking requirements and its need for covered parking. The medium density residential units consist

of a first-floor podium parking with three levels of residential units of varying sizes above. This construction type allows the project to use land more efficiently and still provides one covered parking space per unit. Podium parking hides the majority of parking required on the site allowing a focus on the natural landscape. It is a cutting edge and cost- effective solution because it allows the project to provide podium parking without the need for concrete or steel construction.

The buildings are predominately north-south facing to maximize solar access and optimize roof area for the installation of photovoltaic panels. Due to the mild mediterranean climate and optimal building orientation, the development does not require any air-conditioning units. The buildings have been designed to incorporate passive heating and cooling techniques.

According to Title 22 of the Municipal Code, variances cannot be used to reduce the minimum parcel size or authorize a use not otherwise allowed under the land use category. Should the need arise for a specific variance, the process by which to obtain approval is as follows: the applicant shall file a formal application for a variance that evidences the applicant has met the zoning clearance. Upon acceptance of the application, a staff report to the commission and public hearing are required during which the commission shall approve, approve subject with conditions, or disapprove. The review process can take from 3-5 weeks and includes outside agency review, environmental determination, and public notice for a hearing and staff report preparation. An administrative hearing is held to approve or deny the variance; all decisions must be filed

Figure 4.1 High Def Construction

4. Design Concept

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Figure 4.2 Site Plan and Unit Mix

Studios 1 Bed 2 Bed 3 Bed 3 Bed TH UNIT TOTAL TOTAL SFHigh Def (A) 0 0 17 9 0 26 45,640High Def (B) 0 3 11 12 0 26 46,616High Def (C) 0 17 12 6 0 35 52,592

Townhome Mix (Core)

12 8 0 0 12 32 27,196

Townhome Mix 4 4 4 0 4 16 13,620Community

Center0 0 0 0 0 0 5,040

Daycare 0 0 0 0 0 0 1,910Total 16 32 44 27 16 135 190,704

Unit Types Square FootageStudio 600 SF

1 Bedroom Flat 750 SF2 Bedroom Flat 900 SF3 Bedroom Flat 1200 SF

3 Bedroom Townhome

1200 SF

Parcel Sell Offs (12)

4400 SF (52,800)

Studios 1 Bed 2 Bed 3 Bed 3 Bed TH UNIT TOTAL TOTAL SFHigh Def (A) 0 0 17 9 0 26 45,640High Def (B) 0 3 11 12 0 26 46,616High Def (C) 0 17 12 6 0 35 52,592

Townhome Mix (Core)

12 8 0 0 12 32 27,196

Townhome Mix 4 4 4 0 4 16 13,620Community

Center0 0 0 0 0 0 5,040

Daycare 0 0 0 0 0 0 1,910Total 16 32 44 27 16 135 190,704

Unit Types Square FootageStudio 600 SF

1 Bedroom Flat 750 SF2 Bedroom Flat 900 SF3 Bedroom Flat 1200 SF

3 Bedroom Townhome

1200 SF

Parcel Sell Offs (12)

4400 SF (52,800)

WetlandsHistoric

Froom Ranch Property

Community Garden

Trail Access

Wetlands

Community Center

Daycare Center

Froom Creek

High Def A

High Def B

High Def C

Commercial Pad A

Commercial Pad B

Townhome Mix

Townhome Mix

Residential Lotsfor Sell Off

Entrada Ranch Site Plan

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within 10 days to the Planning Commission. The Commission may grant an approval or conditional approval if the variance: 1) does not constitute a grant of special privileges inconsistent with limitations on other properties in the land use category, 2) there are special circumstances applicable to the property related to size, shape, or topography, and 3) that the variance does not compromise public health and safety.

It is very likely that should the need arise for Madonna Enterprises to apply for a variance, the City of San Luis Obispo will approve the variance since the applicant will be meeting a need from which the City and County will greatly benefit. Madonna Enterprises currently has a healthy relationship with the City and wider community given their historically ties and cultural contributions to the area.

The site has been identified to be annexed into the City under the existing Planned Development Overlay Zone and will remain zoned as Commercial Retail. The Entrada Ranch Development strictly adheres to the existing planning and zoning regulations and therefore no variances are anticipated.

Residential Program Using the Regional Housing Needs Allocation amounts and examining the existing housing stock in San Luis Obispo, PHC found a large proportion of studio and one-bedroom units exist. In order to remain consistent with our project’s goals of appealing to working families and individuals, PHC will provide a range of unit-types from studios up to three-bedroom units. However, because the City’s existing housing stock has a large portion of studios and one bedroom units, PHC has focused on providing slightly more two and three bedroom units than studios or one bedroom units in order to accommodate more working families. The unit mix is shown in Figure 4.2.

A. High Def A is a 45,640 gross square foot apartment style building. These will consist of four floors of two and three bedroom units with a garage on the lowest level. On the lower level is a community laundry facility.B. High Def B is a 46,616 square foot apartment style building. These will consist of four floors of one, two and three bedroom units with a garage on the lowest level. On the lower level is a community laundry facility.C. High Def C is a 52,592 gross square foot apartment

style building. These will consist of four floors of one, two and three bedroom units with a garage on the lowest level. On the lower level is a community laundry facility.D. Townhome and Mixed units that combine three bedroom townhomes, and studio, one bedroom and two bedroom stacked flats. These units also integrate a common outdoor courtyard.

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Standard Townhome Mix Front Elevation

Standard Townhome Side Prototype

Standard Townhome Mix Front Section

Standard Townhome Perspective

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Standard Apartment Side Elevation

Standard Apartment Front Elevation

Standard Apartment Front Section

Standard Apartment in Perspective

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Perspective: Community Center

Perspective: Community Center Interior

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Materials and Finishes The Entrada Ranch development has made every effort to integrate the use of sustainable and durable materials for the site. The Poly Housing Collaborative team has also made plans to incorporate plants from a local wholesale grower named Growing Grounds; they offer a wide variety of grasses, plants trees and shrubs. This non-profit organization is a program of the Transitions Mental-Health Association, which offers treatment for adults suffering from mental illness and provides opportunities and support for personal growth. The community center located on-site also incorporates the recycling and reuse of shipping containers. This strategy provides a low-cost alternative to purchasing and exhausting local materials. The shipping containers are modular in design and can be altered and modified to provide the most

beneficial use of space.

Materials List:ResidentialExterior: • Stucco • Trex Decking and Siding• Recycled Aluminum Roofing• Double-Paned, Double-Hung WindowsInterior:• Low VOC paint• Durable Carpet • Wood Flooring Community Center (LEED for Neighborhood Development Rated)Exterior:• Recycled Storage Containers• Double Paned WindowsInterior:• Low VOC paint• Finished ConcreteSystems• Tankless water heaters• Low Flow Toilets/Showers• Energy Efficient Appliances• Automatic/Sensor Lighting-cc/day• Solar Operated Lighting for exterior spaces

LandscapingThe site design for Entrada Rance will provide various spaces for the residents’ needs and enjoyment. A central corridor runs throughout most of the site, connecting all central activities and easily accessible secondary paths connect the remaining site. A combination of formal open space and patio space is provided for recreational use, along with paved spaces intended for activities such as skating and biking and park areas intended for supervised play. Whether intimate or public, all spaces are accented by a carefully chosen plant palette that maximizes beauty and convenience of native plants:

Plantings• Calamagrotis foliosa-Cape Mendocino

reedgrass• Iris douglasiana-Douglas iris• Heterotheca sessiliflora ssp. bolanderi

‘San Bruno Mountain’- San Bruno Mountain golden aster

• Achillea millefolium ‘Callistoga’-Calistoga yarrow

• Lupinus albifrons-Silver bush lupine• Ceanothus griseus-Carmel creeper• Dryopteris arguta-Coastal wood fern• Festuca californica-California fescue

Trees• Lyonothamnus floribundus ssp.

aspleniifolius-Santa Cruz Island ironwood• Alnus rhombifolia-white alder• Ginko biloba-Ginko tree• Podocarpus gracilior-Fern pine• Betula pendula- Silver birch

Shrubs• Arctostaphylos glauca-Bigberry

manzanita• Dendromecon harfordii-Island bush

poppy• Sambucus mexicana-Western Elderberry

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Amenities Entrada Ranch will offer the following amenities for its residents: a community center, a community garden, a recreational and exercise facility, connection to local trails, bike paths, a variety of different open spaces and a daycare center.

Community CenterThe community center, made predominantly out of recycled storage containers, provides approximately 5,000 square feet of amenities as well as recreational and educational opportunities on-site. Space for recreation and entertainment, events, kitchen space and educational spaces for promoting and teaching about healthy living is offered. PHC has collaborated with Cal Poly’s College of Science and Mathematics Liberal Studies Department to provide after-school tutoring in the educational center for all of the children living in Entrada Ranch. This will also provide additional safety and educational support for the children because the parents of many of these children may be working late into the evening and will be unable to mentor and monitor their children between 3 and 5pm. This after-school program would provide highly-qualified college students who are studying to become certified Elementary School Teachers for the State of California. Adjacent community gardens and historic buildings serve as additional community amenities.

WetlandsA portion of the land owned by Madonna Enterprises will be donated to the SLO County Land Conservancy for future protection. This non-profit will partner with PHC to assure preservation of the natural habitat. The Land Conservancy will also provide guidance for wetlands preservation, educational and recreational purposes. The location of the wetlands help serve as a buffer to the busy Los Osos Valley Road.

TrailsOne project goal is to provide access to existing trails that surround the site, encouraging healthy living and interaction among residents with the natural environment. The Central Coast is replete with scenic views enhanced by California’s native vegetation that inspire and educate users. Links to nearby trails such as the Eagle Rock and Oak Woodlands Loop, the Laguna Lake Trail and the Bob Jones Bike Trail are designed in the upper portions of the site.

Woonerf DesignsThe woonerf design, meaning “residential yard”, was developed and is widely applied in the Netherlands. The idea is that the street is shared among the pedestrians and motorists, Figure 4.4 . This shared space between people and cars provides passive traffic calming strategies and result in slower vehicular speeds which in turn makes for a safer pedestrian environment. There are no edges or curbs along the road, which enhance walkability for the pedestrian. Cars are provided designated parking spaces on the sides of the street.

Figure 4.4 Woonerf Design

Figure 4.3: An example of restored wetlands from the Filipponi Ecological Area

completed by the Land Conservancy of San Luis Obispo in 2009.

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Healthy LivingThe Entrada Ranch development encourages healthy living on-site through site design, site amenities and programs for the community. In partnership with the Land Conservancy, Entrada Ranch will provide programs to community members to explore natural on-site and adjacent amenities. The community center on site will offer courses for healthy body and mind and will also provide a small gym. Ample walkable streets throughout the site, connectivity to nature trails and the inclusion of bicycle racks to encourage bicycling as both an alternative mode of transportation and exercise will also be implemented to provide numerous opportunities for healthy living.

Green StrategiesThe project design accommodates green strategies as part of the healthy living concept. The design integrates locally produced and sustainable materials that help reduce mechanical heating and ventilation needs through the use of thermal massing and installation of roofing materials that produce a “heat island” effect. Natural landscaping will use plants native to our climate to maintain natural cycles. Another part of a healthy living concept is promoting alternative transportation such as walking, bicycling, or the local transit system.

Community Garden The Community Garden will be located in the Southwest side of the site and will utilize organic agriculture and composting practices while providing residents with a local food source. It will also create another gathering place for residents for relaxing, gardening and educational purposes. This program will be run by the Cal Poly Organic Farm.

Historic ReuseThe site is located on the historic Froom Ranch which once included 500 acres of grazing lands, a creamery, a granary, and a mine. Unique to the County is the round-end barn built in 1913, which according to local journalist Joan Sullivan, was designed to hold 20 cows and generated $11,000 in revenue. Entrada Ranch celebrates the tradition of the site’s history of strong community ties to the land by revitalizing and adapting the buildings to a contemporary use which would generate income while preserving historic traditions. Currently Entrada Ranch is engaging potential non-profit tenants whose programs are agriculturally-oriented or that foster youth development and leadership.

Sustainability Sustainable design and implementation is an integral element of the project. Not only do PHC’s solutions aim to be innovative and current, but to be beneficial throughout the project’s lifespan. PHC also wants to implement sustainable solutions in the most modular way so that future improvements are as easy to install as possible. The project complies with the GreenPoint Rating System in order to boost its tax credit score. Based on the anticipated benefits of Entrada Ranch’s sustainable features, PHC is confident that the development could be considered for Leadership in Energy and Environmental Design (LEED) for Neighborhood Development. The community center will be the one building required for LEED ND Certification. Features of sustainable design include:• Solar Orientation: All units on site are oriented to maximize

solar orientation to reduce need of artificial lighting. The North-South orientation will also aid in passive heating and cooling in the winter and summer respectively. Orientation will aid in a reduced need for energy use and have allowed for the elimination of cooling systems onsite.

• Natural Ventilation: Operable windows within units and hallways of the apartment units will help to provide necessary ventilation through the spaces. The use of natural cross ventilation will help to passively cool the buildings.

• Material Choice: Use of durable materials aids in reducing waste and reduce costs for replacement for the project. Many of these durable materials can also be considered sustainable. A material like Trex decking utilizes recycled content while also providing long lasting use. Low-VOC

Figure 4.4: Conceptual historic barn restoration of the round-end barn located on the Historic Froom Ranch portion of the property.

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paints can improve indoor air quality. Materials will also be selected locally to reduce energy consumption associated with transportation. Planting of native vegetation will also help to reduce use of excess water on site.

• Energy and Waste Reduction: Efficient fixtures, energy rated appliances and recycling will be utilized on site to reduce the waste of energy and waste onsite. Onsite water containment and recycling systems will aid in reducing potable water use on site by utilizing greywater for landscaping. Onsite recycling and reduction of construction waste will also be utilized.

• Proximity to Adjacent Amenities: PHC’s “Healthy Living” concept also applies to creating a healthier environment by utilizing mass transit and zero-emission transportation such as bicycling. Entrada Ranch is located near existing commercial developments which will also aid in reducing dependence on vehicular transportation.

• Onsite Renewable Energy: PHC plans to lease roof space for the installation and use of photovoltaic panels for energy. Roofs oriented toward the south will aid in maximizing solar collection and provide clean energy for use onsite and off.

LEED for Neighborhood Development Point Summary Utilizing the LEED for Neighborhood Development guidelines, Entrada Ranch will attain a LEED Gold Rating with 70 total points. The following criteria were met to attain this rating (For self-scorecard see Appendix Pages 45-46):

Smart Location and Linkage (13 of 27 Possible Points)Smart Location and Linkage looks at the siting conditions based on natural environment and proximity to nearby developments and transportation. Entrada Ranch gains points in this category with the adjacency to established commercial developments, reduction of automobile dependence, the proximity to local transit systems and connectivity to an expansive bicycle network. Protection of the natural wetland environment and restoration of adjacent wetlands also adds to the scoring within this category.

Neighborhood Pattern and Design (30 of 44 Possible Points)The intention of neighborhood pattern and design is to create community based planning utilization of various aspects including a diverse population demographic as well as compact development and walkability. Entrada Ranch gains the most points with the development of walkable streets and the creation of a mixed-income diverse community. Points were also awarded for proximity to transit and recreation as well as visitability. Creation of community via landscaping and community involvement are also aspects of both our design and the attainment of LEED points within this category.

Green Infrastructure and Buildings (21 of 29 Points Possible)Reduction of energy use and waste is the main focus of this category. Incorporation of rentable space for photovoltaic panels, wastewater recycling, reduction of construction waste and the creation of green lifestyle on site are categories in which Entrada Ranch attains LEED points for this category. In addition to recycling of materials on-site, energy efficient design, including energy efficiency and solar orientation help PHC to attain additional points.

Innovation and Design Process (2-3 of 6 Points Possible)This category encourages the development and implementation of innovative practices for a smarter, greener design. In implementing a high efficient structural design and development of site resources, such as the wetlands and the historic structures, PHC gains 2 points for this category as well as an additional point for hiring a LEED AP consultant (Pro Bono) which will result in a total of 3 points for this category.

Regional Priority Credit (RPC) (4 of 4 Points Possible)Entrada Ranch will attain all points within this category. 1 credit point will be awarded due to site selection adjacent to essential functions within a 1/2 mile radius (SSc2 credit). A second point will be awarded for siting the project near existing transit systems (SSc4.1 credit) . The 2 remaining points will be awarded for the use of water-efficient indoor fixtures and reduction of potable water use on-site (WEc1.1/3.1 credit). Attainment of these credits comply with standards set by the USGBC for the state of California.

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5. Residential Services & Community EngagementResident Services and Programs All of the services and programs offered on site aim to cultivate individual and community growth, security, healthy lifestyles, and neighborhood involvement. A goal in providing the following services is to give people affordable tools for furthering self-sufficiency and success. Most of the services converge at the multipurpose community center that offers classroom space, computer lab, recreational area, outdoor courtyard with barbecues, a small kitchen for resident use, a health clinic, and a small gym.

Day CareAn 1,800 square foot daycare facility will be located adjacent to the Community Center in the central core of the development. The daycare will serve infants to preschool aged children at an affordable cost to residents and parents that work at nearby businesses. The location provides convenience and peace of mind to parents.

Youth Tutoring and After School ProgramBecause the target population is working families, it is common for both parents to work and, therefore, often lack the time and/or ability to assist their child with schoolwork. After-school tutoring will be offered in the community center’s classroom for kindergarten through 12th grade residents. The program will be run by volunteers and Cal Poly college students as an internship program and will provide the students with volunteer hours to promote Cal Poly’s “learn by doing” philosophy. Not only will the program provide educational support, academic achievement and confidence, it will be a safe and fun atmosphere to keep youth motivated while also giving them a safe place to be after school if both parents are working.

Summer Program for YouthA cause of stress to many parents is what their children will do when school is out for the summer. A day-camp program will run Monday-Friday during the summer months. There will be an emphasis on healthy and fun lifestyles: children will play games, go on hikes in surrounding hills, tend community gardens, have educational field trips, and give back to the San Luis Obispo Community through volunteer work. The Land

Conservancy will help run these programs to help children connect with the natural environment by integrating their existing educational and volunteer programs into the summer program.

On Site Health and Counseling ClinicWithin the Community Center will be two health offices that will offer vaccines, basic health services, advice, and education, and emergency/grief counseling. These services will be offered by the County Department of Health. The clinic will also teach about healthy lifestyle choices that are offered within Entrada Ranch.

On Site ManagementThe community will be owned, operated, and directly managed by Madonna Enterprises to provide full time oversight of the homes. The managers will be responsible for ensuring proper maintenance of supporting facilities, grounds, and landscaping with assistance by grounds keeping and maintenance staff. Managers will receive no charge for rent and a living stipend as compensation for their services. They will also encourage and empower residents to play an active role in their community through the Neighborhood Council and Neighborhood Watch Program and serve as a resource of information and services.

Neighborhood CouncilThe Neighborhood Council will be responsible for overseeing the neighborhood watch program and will serve as the voice of the community. Additionally, they will be responsible for planning educational and social programming and leadership opportunities for the community. Some of these opportunities include: job skills and resume development, healthy living and cooking education, and family fun nights at the community center.

Neighborhood WatchSafety is an important aspect to making residents feel comfortable in their homes. A neighborhood watch program will help create a safer environment by having contacts with police, creating a phone tree and plans for a variety of emergency situations. The program will be organized and advertised by the management but run by the Neighborhood Council.

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Community Outreach & Engagement Community engagement is an essential aspect to Entrada Ranch to ensure its acceptance and success both through approvals and post development. The project is a compilation of community needs and desires by addressing issues that have been raised by stakeholders thus far. The team identified the following key stakeholders from the beginning of the project:• Local community• Employees of neighboring commercial development• Local environmental organizations• The City of San Luis Obispo• The County of San Luis Obispo• Madonna Enterprises

• San Luis Obispo Historical Society

Pre-Development:Meetings with StakeholdersThe team has already begun the process of engaging with important stakeholders to seek guidance and realistic direction for the project. PHC team members have set up multiple meetings, phone calls, and email threads to guarantee that the project is a reflection of the community needs and desires. The stakeholders offer feedback, express concerns and explore potential improvement options through ongoing dialogue. PHC has received an overwhelming amount of support for the project and helpful information to help the evolution of the planning process. PHC will continue their efforts to reach out to all stakeholders, make new connections, and foster relationships throughout the entire project process and afterwards. Some direct partnerships that PHC has established thus far include:• City and County Staff• Natural Resources Department to secure trail accessibility• Parks and Recreation Department in support of the

Community Garden and healthy living aspects• The San Luis Obispo Land Conservancy to purchase and

restore the wetlands on site and partner with the summer day camp program

• Cal Poly Organic Farm to run the Community Garden• Cal Poly Department of Child Development to provide

qualified volunteers to support the after-school and summer programs offered at the community center

Design ReviewThe first of a series of design charettes was held by PHC on April 5, 2011. Attendees included City Council members,

County officials, the developer partner Madonna Enterprises, People’s Self Help Housing, Cal Poly City and Regional Planning professors, and local architects to further the creative and logistical development of Entrada Ranch. PHC plans to host a series of design reviews to continue involvement of stakeholders in the development of the project. Community outreach and participation in the design process instills an overall sense of ownership and personal investment in the project. This is crucial due to the sensitive physical environment. By soliciting input throughout the process, we hope to calm any fears of disturbing the integrity of the surrounding wwetlands and scenic views which are both highly valued amongst the San Luis Obispo community.

Construction:Site Walk-Throughs:PHC will offer periodic guided “hard-hat” tours during the construction process. This will provide engaged community members to remain involved throughout the pre-construction process. It will also serve as a tool to share green building strategies so that they may be implemented in other projects.

Post-ConstructionCommunity Welcome Event:PHC plans to host a welcome event to show-off the completed project to stakeholders and begin to acclimate new residents into the community. Entrada Ranch will celebrate its hallmark achievement as being the first LEED for Neighborhood Development site in the County of San Luis Obispo.

Ongoing Community Education Events:Because the site will be the first LEED ND project in the City, it will serve as an educational tool for the community as well as professionals and students. The site design includes excellent venues for community education including the historic barns, wetlands restoration and education posts, community gardens for organic agricultural practices, trail access and the community center which will offer a variety of services to residents. Our partnerships formed with The Land Conservancy, Cal Poly Child Development, and the Cal Poly organic farm will assist the site in their educational endeavors. The community center we will also offer seminars on personal health, leadership and job skills, home ownership and financial management.

Ongoing Public Access to Amenities:Entrada Ranch amenities include great appreciation of the natural environment with public access to restored wetlands and the City Trail system on site (which currently does not have a public access point nearby. It also includes a multi-purpose community center and daycare facilities. These have been created not only for the benefit of site residents but for the larger San Luis Obispo community. The facilities will be made available for the benefit of local organizations and families.

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ENTRADA RANCH 2

financing structure

Background Due to the tough financing environment in the residential real estate market over the past few years, the Poly Housing Collaborative Team has had to research and examine a multitude of loans and grants to develop a financing plan that would cover both the predevelopment and development costs of Entrada Ranch. The availability of traditional affordable housing financing sources has become limited and uncertain, due to the tightening fiscal policy around the country. As such, PHC’s financing scheme overcame these hurdles with various financing partnerships and agreements. PHC also faced the challenge of justifying the large scale of the development, as the sizes of existing affordable projects in San Luis Obispo have historically been much smaller. However, the need for affordable housing is clearly evidenced by the large daily migration of workers into the city of San Luis Obispo, especially with the Los Osos Valley Road corridor becoming a major regional retail hub. Market rents for residential locations in San Luis Obispo are currently out of reach for commuters, and PHC hopes to meet this demand. In order to create a more balanced community, PHC decided to provide a range of housing types to promote a thriving and diverse neighborhood feel with high-def apartment styles, mixed townhomes and flats, and areas for future single family and commercial developments. Regardless of the challenges facing the project, PHC has put together a feasible funding plan for Entrada Ranch, using a combination of both public and private funding sources to develop our affordable housing development.

Development Budget The total estimated cost of developing the site is approximately $23.8 million. This figure includes both the hard and soft costs of the three high-def buildings, townhome mix, daycare, and community center, including infrastructure. PHC has zero land acquisition costs as the developer partner currently owns the project site. Additional equity will come from the Madonna Enterprises’ development of 12 residential lots and two commercial pads. Net income from sales at 90% of sales price totals about $1.2 million and $3.1 million, respectively. Because the land currently contains a locally historic farm, Madonna Enterprises has also agreed to set aside $540,000 to restore the 6,000 SF barn structure at a cost of approximately $90 PSF. Future uses for this structure could include a center for 4-H or another non-profit.

Operating Budget Because Entrada Ranch is a 100% affordable housing project, we anticipate an average monthly rent per unit of $745 among an assortment of studios, 1-, 2-, and 3-bedroom apartments and townhomes. This figure takes into account HUD Section 8 Utility Allowances for gas and electric utilities. Average monthly operating expenses are $330 per unit, which meets the CTCAC minimum. Total operating expenses constitute approximately 45% of rent, and PHC assumed a 1.2 debt coverage ratio for the project.

6. Financing Structure

HCD Pre-Dev Loan 100,000 CDBG 300,000 Permanent Bond 7,195,577SLO County HTF 660,000 HOME 500,000 Tax Credit Equity 9,081,321Developer Contribution 33,000 San Luis Obispo AHF 500,000 CDBG 300,000

Initial Tax Credit Equity 2,270,330 HOME 500,000Construction Bond 19,431,986 San Luis Obispo AHF 500,000

Commercial Land Sale 3,186,822Residential Land Sale 1,188,576Developer Contribution 1,817,189

Total Predevelopment Sources 793,000 Total Construction Sources 23,002,316 Total Permanent Sources 23,769,486

Entrada Ranch Funding SourcesPredevelopment Sources Construction Sources Permanent Sources

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Predevelopment Funding Sources Madonna Enterprises currently owns the project site; therefore, the predevelopment costs are significantly lower than a typical development. PHC expects predevelopment costs to total $793,000, which can be covered by the following state and local affordable housing loans.

• Predevelopment Loan Program (PDLP), California Department of Housing and Community Development: $100,000: At three percent simple annual interest for up to two years, this loan will be used to cover a portion of the predevelopment costs for the Entrada Ranch development. Entrada Ranch is expected to have priority to this loan, as Entrada Ranch is in a public transit corridors, one of the features that receives priority.

• San Luis Obispo County Housing Trust Fund: $660,000: This housing trust fund, restricted to projects with low income and extremely low income units, will be used to cover much of the predevelopment costs that Entrada Ranch will incur. The county is very flexible with loan terms, but the PHC anticipates a 6% fully-amortized loan for up to five years.

• Developer Contribution: $33,000: Because our predevelopment sources are not enough to cover the full cost of this phase, Madonna Enterprises has agreed to contribute $33,000 to start the project.

Funding Sources:Construction Bond: $19,431,986: The construction of Entrada Ranch will be primarily financed by a bank purchasing a construction bond issued through the California Statewide Communities Development Authority. PHC anticipates this bond to have an interest rate of four percent for one and a half years, making interest only payments on the balance. The bond’s balance will be repaid upon completion of the project.Permanent Bond: $7,195,577: Following discussions with Bank of America, PHC believes that it is reasonable to assume a permanent bond at 6.5% interest for thirty years. The total is fully amortized and Entrada Ranch will make equal payments over the life of the bond.Community Development Block Grant (CDBG): $300,000: This grant, administered through the County of San Luis Obispo from the Federal Department of Housing and Urban Development, will be used to construct Entrada Ranch. Based on discussions with city representatives, PHC believes Entrada Ranch will receive $300,000.

HOME Investment Partnership (HOME): $500,000: HOME funds, a Federal grant distributed by the San Luis Obispo County, are loans targeted to fund affordable housing units for low and very low income families. Entrada Ranch’s affordability mix fulfills their basic requirements and will be competitive for these funds.City of San Luis Obispo Affordable Housing Fund: $500,000: The City of San Luis Obispo created the Affordable Housing Fund for the collection of in-lieu housing impact fees. Based on the criteria used by the San Luis Obispo City Council and discussions with city representatives, PHC feels confident that Entrada Ranch will receive $500,000 from the fund.Non-Competitive Federal Low Income Housing Tax Credits, 4% Credits: $9,081,321: This federal program, administered through the California Tax Credit Allocation Committee (TCAC), will be used as a major source of ongoing financing for the Entrada Ranch project. Entrada Ranch’s income restriction unit plan along with the Qualified Allocation Plan will ensure a 4% tax credit.Selling of Single-Detached Lots and Commercial Land:$4,375,398: To accommodate San Luis Obispo’s desire for mixed use as well as create a neighborhood feel within the development, PHC plans to sell of portions of our site for commercial and residential development. After examining comparable lots in the area for both types, PHC believes that the land can be sold for a net equity of $4,375,398 (90% of expected sales pice minus lot development costs).Net Developer Contribution: $1,817,189: Due to the timing of tax credit investment, the sell-off rate of the single-detached family lots and other factors, additional equity will be needed to convert the construction bond to a permanent bond. While the initial contribution will be higher than the amount stated above, Madonna Enterprises will recoup that difference within three years and has agreed to provide the equity needed to make this conversion. Unfortunately, because of the current economic conditions, there are numerous funding sources that PHC does not feel confident in including within the financing plan. These include the Multifamily Housing Program and Project-Based Section 8. Additionally, after further research, PHC determined that Entrada Ranch would not be competitive for the Federal Home Loan Bank of San Francisco’s AHP Grant due to Entrada Ranch not partnering with a non-profit. However, PHC will continue to monitor these funding sources in case circumstances change. Despite these challenges, PHC has proposed a financing scheme that makes Entrada Ranch financially viable. Throughout the development of Entrada Ranch, PHC consulted with various affordable housing professionals to determine our assumptions and chose the most conservative estimates to base the financials on.

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ENTRADA RANCH 1

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Unit TypeMonthly

RentUtility

AllowancesNumber of Units

Monthly Revenue Unit SF

Annual Revenue

1BD Affordable EL (30% AMI) $435 $33 5 $2,011 750 $24,132 VL (50% AMI) $725 $33 12 $8,306 750 $99,677 L (55% AMI) $797 $33 14 $10,699 750 $128,386 2BD Affordable EL $489 $46 7 $3,098 900 $37,178 VL $816 $46 16 $12,314 900 $147,763 L (55%) $897 $46 21 $17,863 900 $214,351 3BD Affordable EL $544 $56 6 $2,928 1200 $35,136 VL $906 $56 16 $13,600 1200 $163,200 L (55%) $996 $56 21 $19,740 1200 $236,880 Studios Affordable EL $381 $26 3 $1,064 600 $12,766 VL $634 $26 5 $3,038 600 $36,456 L (55%) $697 $26 7 $4,694 600 $56,330 Manager Units $0 $0 2 $0 $0

135 $99,355 $1,192,255

Entrada Ranch Residential Base Rent Revenue

Gross Income

Unit Size 4% Basis Limits Eligible Units Unadjusted BasisSRO/Studio 198,444 16 3,175,1041 Bedroom 228,804 32 7,321,7282 Bedroom 276,000 44 12,144,0003 Bedroom 353,280 43 15,191,040

135 37,831,872Value Additional Basis

20% 7,566,3747% 2,648,2312% 756,637

50% 18,915,93622% 8,323,012

38,210,191

76,042,06323,171,90923,171,909

30.00% 6,900,17430,123,481

LIH Credit Calculated 3.35% 1,009,137To Investor 99.99% 1,009,036Total Credits 10 10,090,357Price Per Credit 0.9Equity Raised from Federal Tax Credits 9,081,321Max Permanent Financing (7,195,577)

Remaining Funding Gap 6,895,011

Podium ParkingDay Care

Adjustments to Basis

Qualified Basis for Credit

Entrada Ranch Tax Credit Analysis

+1% for Each 1% of units for 50-36%AMI +2% for Each 1% of units under 35%AMI

Adjusted Threshold Basis LimitEligible Basis from Pro FormaLesser of TwoDifficult to Develop Area (DDA)

Unadjusted Threshold Basis Limit

4% Non-Competitive Federal Tax Credits Eligible Basis

Federal Tax Credit Calculation

Additions to BasisPrevailing Wage

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ENTRADA RANCH

financing structure

Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2% 2% 2% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0%1,192,255 1,216,100 1,240,422 1,265,231 1,290,535 1,316,346 1,329,510 1,342,805 1,356,233 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795 1,369,7951,192,255 1,216,100 1,240,422 1,265,231 1,290,535 1,316,346 1,329,510 1,342,805 1,356,233 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795

100% 10% 7% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%(1,192,255) (121,610) (86,830) (63,262) (64,527) (65,817) (66,475) (67,140) (67,812) (68,490) (68,490) (68,490) (68,490) (68,490) (68,490)

- 40,500 - - - - - - - - - - - - - - 1,094,490 1,153,593 1,201,969 1,226,009 1,250,529 1,263,034 1,275,664 1,288,421 1,301,305 1,301,305 1,301,305 1,301,305 1,301,305 1,301,305

2% 2% 2% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0%12,960 13,219 13,484 13,753 14,028 14,309 14,452 14,596 14,742 14,890 14,890 14,890 14,890 14,890 14,890

- 11,897 12,540 13,066 13,327 13,593 13,729 13,867 14,005 14,145 14,145 14,145 14,145 14,145 14,145 - 1,106,388 1,166,132 1,215,035 1,239,336 1,264,122 1,276,763 1,289,531 1,302,426 1,315,451 1,315,451 1,315,451 1,315,451 1,315,451 1,315,451

3% 3% 3% 3% 3% 3% 3% 3% 3% 0% 0% 0% 0% 0%(524,736) (540,478) (556,692) (573,393) (590,595) (608,313) (626,562) (645,359) (664,720) (684,662) (684,662) (684,662) (684,662) (684,662) (684,662)

- (540,478) (556,692) (573,393) (590,595) (608,313) (626,562) (645,359) (664,720) (684,662) (684,662) (684,662) (684,662) (684,662) (684,662) - (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) - - - - - - - - - - - - - - - - (574,228) (590,442) (607,143) (624,345) (642,063) (660,312) (679,109) (698,470) (718,412) (718,412) (718,412) (718,412) (718,412) (718,412) - 532,159 575,690 607,892 614,990 622,059 616,451 610,422 603,956 597,039 597,039 597,039 597,039 597,039 597,039

(687,455) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (23,769,486)(23,769,486) (687,455) (13,612) 29,919 62,121 69,219 76,288 70,680 64,651 58,185 51,268 51,268 51,268 51,268 51,268 51,268 Net Cash Flow

Entrada Ranch Residential Cash Flow

Less: Replacement ReservesLess: Real Estate TaxesTotal ExpensesNet Operating IncomeLess: Debt ServiceInitial Equity Investment

Gross Ancillary IncomePlus: Ancillary Income (laundry)Effective Gross IncomeOperating Expense GrowthGross Resi Operating ExpensesLess: Resi Operating Expenses

Residential ApartmentsBase Rent Revenue Growth

Net Base Rent RevenueAncillary Income Growth

Base Rent RevenuesGross RevenuesVacancy (percent)Less: VacanciesRebates

Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2% 2% 2% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0%1,192,255 1,216,100 1,240,422 1,265,231 1,290,535 1,316,346 1,329,510 1,342,805 1,356,233 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795 1,369,7951,192,255 1,216,100 1,240,422 1,265,231 1,290,535 1,316,346 1,329,510 1,342,805 1,356,233 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795

100% 10% 7% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%(1,192,255) (121,610) (86,830) (63,262) (64,527) (65,817) (66,475) (67,140) (67,812) (68,490) (68,490) (68,490) (68,490) (68,490) (68,490)

- 40,500 - - - - - - - - - - - - - - 1,094,490 1,153,593 1,201,969 1,226,009 1,250,529 1,263,034 1,275,664 1,288,421 1,301,305 1,301,305 1,301,305 1,301,305 1,301,305 1,301,305

2% 2% 2% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0%12,960 13,219 13,484 13,753 14,028 14,309 14,452 14,596 14,742 14,890 14,890 14,890 14,890 14,890 14,890

- 11,897 12,540 13,066 13,327 13,593 13,729 13,867 14,005 14,145 14,145 14,145 14,145 14,145 14,145 - 1,106,388 1,166,132 1,215,035 1,239,336 1,264,122 1,276,763 1,289,531 1,302,426 1,315,451 1,315,451 1,315,451 1,315,451 1,315,451 1,315,451

3% 3% 3% 3% 3% 3% 3% 3% 3% 0% 0% 0% 0% 0%(524,736) (540,478) (556,692) (573,393) (590,595) (608,313) (626,562) (645,359) (664,720) (684,662) (684,662) (684,662) (684,662) (684,662) (684,662)

- (540,478) (556,692) (573,393) (590,595) (608,313) (626,562) (645,359) (664,720) (684,662) (684,662) (684,662) (684,662) (684,662) (684,662) - (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) - - - - - - - - - - - - - - - - (574,228) (590,442) (607,143) (624,345) (642,063) (660,312) (679,109) (698,470) (718,412) (718,412) (718,412) (718,412) (718,412) (718,412) - 532,159 575,690 607,892 614,990 622,059 616,451 610,422 603,956 597,039 597,039 597,039 597,039 597,039 597,039

(687,455) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (23,769,486)(23,769,486) (687,455) (13,612) 29,919 62,121 69,219 76,288 70,680 64,651 58,185 51,268 51,268 51,268 51,268 51,268 51,268 Net Cash Flow

Entrada Ranch Residential Cash Flow

Less: Replacement ReservesLess: Real Estate TaxesTotal ExpensesNet Operating IncomeLess: Debt ServiceInitial Equity Investment

Gross Ancillary IncomePlus: Ancillary Income (laundry)Effective Gross IncomeOperating Expense GrowthGross Resi Operating ExpensesLess: Resi Operating Expenses

Residential ApartmentsBase Rent Revenue Growth

Net Base Rent RevenueAncillary Income Growth

Base Rent RevenuesGross RevenuesVacancy (percent)Less: VacanciesRebates

Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2% 2% 2% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0%1,192,255 1,216,100 1,240,422 1,265,231 1,290,535 1,316,346 1,329,510 1,342,805 1,356,233 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795 1,369,7951,192,255 1,216,100 1,240,422 1,265,231 1,290,535 1,316,346 1,329,510 1,342,805 1,356,233 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795

100% 10% 7% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%(1,192,255) (121,610) (86,830) (63,262) (64,527) (65,817) (66,475) (67,140) (67,812) (68,490) (68,490) (68,490) (68,490) (68,490) (68,490)

- 40,500 - - - - - - - - - - - - - - 1,094,490 1,153,593 1,201,969 1,226,009 1,250,529 1,263,034 1,275,664 1,288,421 1,301,305 1,301,305 1,301,305 1,301,305 1,301,305 1,301,305

2% 2% 2% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0%12,960 13,219 13,484 13,753 14,028 14,309 14,452 14,596 14,742 14,890 14,890 14,890 14,890 14,890 14,890

- 11,897 12,540 13,066 13,327 13,593 13,729 13,867 14,005 14,145 14,145 14,145 14,145 14,145 14,145 - 1,106,388 1,166,132 1,215,035 1,239,336 1,264,122 1,276,763 1,289,531 1,302,426 1,315,451 1,315,451 1,315,451 1,315,451 1,315,451 1,315,451

3% 3% 3% 3% 3% 3% 3% 3% 3% 0% 0% 0% 0% 0%(524,736) (540,478) (556,692) (573,393) (590,595) (608,313) (626,562) (645,359) (664,720) (684,662) (684,662) (684,662) (684,662) (684,662) (684,662)

- (540,478) (556,692) (573,393) (590,595) (608,313) (626,562) (645,359) (664,720) (684,662) (684,662) (684,662) (684,662) (684,662) (684,662) - (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) - - - - - - - - - - - - - - - - (574,228) (590,442) (607,143) (624,345) (642,063) (660,312) (679,109) (698,470) (718,412) (718,412) (718,412) (718,412) (718,412) (718,412) - 532,159 575,690 607,892 614,990 622,059 616,451 610,422 603,956 597,039 597,039 597,039 597,039 597,039 597,039

(687,455) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (23,769,486)(23,769,486) (687,455) (13,612) 29,919 62,121 69,219 76,288 70,680 64,651 58,185 51,268 51,268 51,268 51,268 51,268 51,268 Net Cash Flow

Entrada Ranch Residential Cash Flow

Less: Replacement ReservesLess: Real Estate TaxesTotal ExpensesNet Operating IncomeLess: Debt ServiceInitial Equity Investment

Gross Ancillary IncomePlus: Ancillary Income (laundry)Effective Gross IncomeOperating Expense GrowthGross Resi Operating ExpensesLess: Resi Operating Expenses

Residential ApartmentsBase Rent Revenue Growth

Net Base Rent RevenueAncillary Income Growth

Base Rent RevenuesGross RevenuesVacancy (percent)Less: VacanciesRebates

Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

2% 2% 2% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0%1,192,255 1,216,100 1,240,422 1,265,231 1,290,535 1,316,346 1,329,510 1,342,805 1,356,233 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795 1,369,7951,192,255 1,216,100 1,240,422 1,265,231 1,290,535 1,316,346 1,329,510 1,342,805 1,356,233 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795 1,369,795

100% 10% 7% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%(1,192,255) (121,610) (86,830) (63,262) (64,527) (65,817) (66,475) (67,140) (67,812) (68,490) (68,490) (68,490) (68,490) (68,490) (68,490)

- 40,500 - - - - - - - - - - - - - - 1,094,490 1,153,593 1,201,969 1,226,009 1,250,529 1,263,034 1,275,664 1,288,421 1,301,305 1,301,305 1,301,305 1,301,305 1,301,305 1,301,305

2% 2% 2% 2% 2% 1% 1% 1% 1% 0% 0% 0% 0% 0%12,960 13,219 13,484 13,753 14,028 14,309 14,452 14,596 14,742 14,890 14,890 14,890 14,890 14,890 14,890

- 11,897 12,540 13,066 13,327 13,593 13,729 13,867 14,005 14,145 14,145 14,145 14,145 14,145 14,145 - 1,106,388 1,166,132 1,215,035 1,239,336 1,264,122 1,276,763 1,289,531 1,302,426 1,315,451 1,315,451 1,315,451 1,315,451 1,315,451 1,315,451

3% 3% 3% 3% 3% 3% 3% 3% 3% 0% 0% 0% 0% 0%(524,736) (540,478) (556,692) (573,393) (590,595) (608,313) (626,562) (645,359) (664,720) (684,662) (684,662) (684,662) (684,662) (684,662) (684,662)

- (540,478) (556,692) (573,393) (590,595) (608,313) (626,562) (645,359) (664,720) (684,662) (684,662) (684,662) (684,662) (684,662) (684,662) - (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) (33,750) - - - - - - - - - - - - - - - - (574,228) (590,442) (607,143) (624,345) (642,063) (660,312) (679,109) (698,470) (718,412) (718,412) (718,412) (718,412) (718,412) (718,412) - 532,159 575,690 607,892 614,990 622,059 616,451 610,422 603,956 597,039 597,039 597,039 597,039 597,039 597,039

(687,455) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (545,771) (23,769,486)(23,769,486) (687,455) (13,612) 29,919 62,121 69,219 76,288 70,680 64,651 58,185 51,268 51,268 51,268 51,268 51,268 51,268 Net Cash Flow

Entrada Ranch Residential Cash Flow

Less: Replacement ReservesLess: Real Estate TaxesTotal ExpensesNet Operating IncomeLess: Debt ServiceInitial Equity Investment

Gross Ancillary IncomePlus: Ancillary Income (laundry)Effective Gross IncomeOperating Expense GrowthGross Resi Operating ExpensesLess: Resi Operating Expenses

Residential ApartmentsBase Rent Revenue Growth

Net Base Rent RevenueAncillary Income Growth

Base Rent RevenuesGross RevenuesVacancy (percent)Less: VacanciesRebates

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POLY HOUSING COLLABORATIVE | BANK OF AMERICA LOW-INCOME HOUSING CHALLENGE 2011

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Annual Monthly Annual  per  Unit

%  of  Total

16,800 1,400 126 3.20%12,000 1,000 90 2.29%31,200 2,600 235 5.95%12,480 1,040 94 2.38%5,798 483 44 1.10%3,624 302 27 0.69%81,902 6,825 616 15.61%

1,100 92 8 0.21%1,000 83 8 0.19%35,768 2,981 269 6.82%1,000 83 8 0.19%1,000 83 8 0.19%1,000 83 8 0.19%1,000 83 8 0.19%960 80 7 0.18%780 65 6 0.15%

1,000 83 8 0.19%44,608 3,717 335 8.50%

20% 146 12 1 0.03%20% 273 23 2 0.05%

69,357 5,780 521 13.22%24,860 2,072 187 4.74%

577 48 4 0.11%95,067 7,922 715 18.12%

188,150 15,679 1,415 35.86%18,000 1,500 135 3.43%206,150 17,179 1,550 39.29%

48,386 4,032 364 9.22%1.10% 3,874 323 29 0.74%

2,500 208 19 0.48%1,750 146 13 0.33%40,500 3,375 305 7.72%97,010 8,084 729 18.49%524,736 43,728 3,945 100.00%Total  Expenses  excl.  Replacement  Reserves

Total  Operating  and  Maintenance

Efficiency  Savings

Operating  ReservesTotal  Miscellaneous

Property  InsuranceProperty  TaxSpecial  AssessmentsOther  Local  Taxes  and  Fees

Entrada  Ranch  Residential  Operating  Budget

Operating  and  Maintenance

Total  Administrative  Expenses

Administrative  Expenses

Miscellaneous

Total  Utilities

General  MaintenanceParking  Expense

UtilitiesGasElectricityWater  and  SewageGarbage  CollectionOther

Compliance  FeeTelephoneTransportation  (reimbursable)Training

AdvertisingSuppliesManagement  FeeLegalAudit  ExpenseAccounting

Payroll  Taxes/Workers  Comp.Employee  Benefits

Total  Payroll

PayrollOn-­‐Site  ManagerAssistant  ManagerMaintenanceJanitorial

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ENTRADA RANCH

financing structure

1,192,2555% (59,613)

12,9601,145,602

(524,736)620,866

(517,389)103,478

1.2

7,195,5776.50%

360360

517,389Amortization (Months)Loan Payment

Entrada Ranch Financing Subcalculation

Debt ServiceNet Cash Flow After Debt Service

Debt Coverage Ratio

Maximum Permanent Principal AmountInterest RateTerm (Months)

Gross Rental RevenueLess: VacancyOther IncomeTotal RevenueOperating ExpensesNet Operating Income

Subdivision  Name Min Max Low HighBowden  Ranch 12 0.21 0.76 499,000      

California  Mission  Estates 13 0.16 0.41 529,000      Isabella  Way 5 0.26 0.38 324,500       349,500      San  Luis  Drive 17 175,000       365,000      

San  Luis  Obispo  Single-­‐Family  Lot  Sale  ComparablesNumber  of  Lots

Lot  Size Price

4.42  total  acres

Annual  Rent Cap  Rate Value135,000 0.07 1,928,571142,800 0.07 2,040,000

Expenses 600,000Build  to  suit 1,440,000

San  Luis  Obispo  Commercial  Pad  ComparablesTenantChain  Restaurant  (30,000  sf)Nat'l  Mobile  Retailer  (15,000  sf)

Existing  Commercial  Pads Pad  A Pad  BGross  Area  (square  feet) 34,848 27,878Income  from  Sales  (90%  of  Sales  Price) 1,856,250 1,518,750

Developed  LotsTotal  Number  of  Lots  for  Sale 12                            Income  from  Sales  (90%  of  Sales  Price) 180,000        Lot  Size  per  Home  (acres) 0.21                    

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POLY HOUSING COLLABORATIVE | BANK OF AMERICA LOW-INCOME HOUSING CHALLENGE 2011

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ure

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ENTRADA RANCH

financing structure

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POLY HOUSING COLLABORATIVE | BANK OF AMERICA LOW-INCOME HOUSING CHALLENGE 2011

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ine

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar AprDuration in Months 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Entitlements:Prelim. App. For CEQA ReviewCommunity OutreachSubmit NEPA ReportSubmit Full Planning ScheduleCEQA/Design Review ProcessFinal CEQA/Design/CUP Approval

Financing:Commercial Sell-offSan Luis Obispo NOFA App. & Approval4% Tax Credit Residential Sell-offCLOSE of Construction FinancingCDBG/HOME App & ApprovalPermanent Financing In Place

Construction Documents:Design DevelopmentPreparation of Construction DocumentsPlans Check Approval General Contractor for BidsExecute Construction Contract

Construction:Issuance of Building PermitsConstructions 1 2 3Certificates of OccupancyRecordation of Final Completion

Property Management:Marketing Plan and Fair HousingReview and Selection of TenantsPlace-In Service and 75% Occupancy

2013Entrada Ranch Development Schedule 2011 2012

Entrada Ranch Development Schedule

7. Development Timeline

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ENTRADA RANCH

development tim

eline

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

4 5 6 7 8 9 10 11 12 13 14 15 16

2014 2015 2015

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POLY HOUSING COLLABORATIVE | BANK OF AMERICA LOW-INCOME HOUSING CHALLENGE 2011

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ENTRADA RANCH 1

deve

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POLY HOUSING COLLABORATIVE | BANK OF AMERICA LOW-INCOME HOUSING CHALLENGE 2011

2

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pacity

8. Developer Capacity

9. Work Product DisclosureAll work presented in this proposal is the original work of the Poly Housing Collaborative team 2011. All documents included in the appendix are not the original work product of Poly Housing Collaborative and have been provided by or completed in part by other third- party agencies.

“The Cal Poly Affordable Housing project developer partner is Madonna Enterprises, LLC (Madonna). Madonna and its related companies have been involved in real estate development, property management and construction since the late 1940’s. Based in San Luis Obispo, California, Madonna has vast experience developing in San Luis Obispo, as well as other regions of California. Successfully developed product types include Retail, Office, Industrial, Hospitality, Single family, Multi-family and Affordable Housing.

Currently Madonna is partnered with the San Luis Obispo Housing Authority on their “Moylan Terrace” and “HOME” Affordable Housing projects. Collectively these two projects will provide over 90 affordable units to the San Luis Obispo market. Madonna is part of a development team with additional experience in affordable development. Affordable projects successfully completed by this design team stretch from Santa Barbara County to the San Francisco Bay Area. This multi-function team has worked together to complete many successful projects. They bring together best of breed talents with intimate knowledge of the local market, lead agencies and their respective decision makers.” --Clint Pearce, Madonna Enterprises

Figure 8.1 Madonna Inn

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ENTRADA RANCH

meet the tea

m

Stephan Jackson : Project ManagerCity and Regional Planning, SeniorSan Jose, CAThis is Stephan’s 3rd year working on the Cal Poly BofA team. After his return from serving with the Peace Corps, he hopes to work in the field of advocacy planning and affordable housing.

Jenna Hahn: Planning TeamCity and Regional Planning, 4th YearMinors in Sustainable Environments and Anthropology & GeograpahyPleasanton, CAJenna has passions for social equity and outreach, environmental justice, and sustainability. After earning a Master’s degree, she hopes to pursue an innovative career working with urban infill and international development focusing on public welfare, poverty, and climate change.

Hannah Edelsberg: Planning Team City and Regional Planning, SeniorMinor in Sustainable EnvironmentsSan Francisco, CAHannah has always had an interest in the social aspects of urban planning and spent most of her senior year at Cal Poly focusing on healthy community planning and housing. She hopes to work in the field of either affordable housing of public health planning in the Bay Area, and eventually receive her Master’s degree in a related field.

Dan Findley: Planning Team Master of City and Regional Planning, 1st YearBelle Mead, NJDan has worked for a consulting company building communities in project areas throughout Peru, and was most recently a project manager for an affordable housing developer in San Francisco. Dan joined the Bank of America Low-Income Housing Challenge team as a planner, and will use this experience to prepare him for a career in affordable housing and community planning.

Lisa Snyder: Design Team Architecture, 4th YearLebanon, OHLisa serves as part of the design team working primarily on digital design work. Joining the team to expand upon the integrative process of design, Lisa hopes to take her education and continue to grow in areas regarding historic preservation and architectural history.

Shannon Thompson: Design TeamBARCH + Master of City and Regional Planning, 1st YearSanta Barbara, CAShannon has a passion for design and planning for those who are less fortunate. She wanted to be involved with the low income housing challenge in order to be a part of a team that would create a place that would give everyone the chance to have a roof over their head. In the future, she hopes to open her own planning and architecture firm specializing in both community spaces and low-income housing projects.

Yesenia Fernandez: Design Team Landscape Architecture, 3rd YearBelmont, CAYesenia joined the Bank of America Low-Income Housing Challenge team because, along with the opportunity to learn about low-income housing work, the project we took presented a great site for its design. While currently learning design, I will soon be studying sociology and I am excited for the opportunities that my knowledge in both disciplines will bring.

Andrew Nowak: Design Team Landscape Architecture, 3rd YearSan Jose, CAAs a Landscape Architecture student he has a strong passion for social and environmental justice and art. Andrew joined the team to future progress his interest and learn more about low-income housing. This collaborative involvement strengthened his interests in becoming a Landscape Architect and an ambition to design sustainable communities.

Will Conner: Finance TeamBusiness Administration, SeniorLos Altos, CAWill intends to return to the Bay Area after graduating to begin work as a consultant for Ernst and Young.

Danette Lee: Finance TeamBusiness Administration , 3rd YearSunnyvale, CADanette joined the finance team to better understand the financing plans that go into building a development, especially with affordable housing. She one day hopes to work in a multinational corporation’s real estate division.

Curtis Suda: Finance TeamSenior, Business Administration, SeniorMoraga, CACurtis plans to move to San Francisco upon graduation in June. Curtis has a strong interest in institutional real estate and hopes to one day form a REIT.

Enrique Ivers: ConstructionConstruction Management, 3rd YearSacramento, CAHaving lived abroad in Mexico and Uruguay for a number of years before coming to Cal Poly, Enrique enjoys the interpersonal aspect of construction that allows me to work with others and learn from their unique experiences. He hopes to work in mid-rise and high-rise construction domestically, and eventually work abroad.

Meet the Team

From Top Left: Andrew Nowak, Yesenia Fernandez, Lisa Snyder, Danette Lee, Shannon Thompson, Curtis Suda; From Bottom Left: Stephan Jackson, Hannah Edelsberg, Will Conner, Jenna Hahn, Dan Findley, Enrique Ivers

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10. Appendix

Appendix Table of Contents

LEED for Neighborhood Development Self-Scorecard..........................................................................45-46

Letters of Support

Madonna Enterprises, Clint Pearce.....................................................................................................................47 City of San Luis Obispo, Community Development Department, Housing.......................................48 City of San Luis Obispo. Community Development Department. Long Range Planning.......................49 Land Conservancy of San Luis Obispo County..............................................................................................50 Cal Poly Liberal Studies Department, College of Science and Mathematics...........................................51 City of San Luis Obispo, Department of Natural Resources..........................................................................52 City of San Luis Obispo, Community Development, Historic Restoration..............................................53 Cal Poly Organic Farm..............................................................................................................................................54 Forest City........................................................................................................................................................................55 Joan Sullivan, Froom Ranch Historian............................................................................................................56

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LEED 2009 for Neighborhood DevelopmentProject ScorecardProject Name: Entrada RanchDate:

Yes ? No

13 0 0 Smart Location and Linkage 27 Points Possible

Y Prereq 1 Smart Location Required

Y Prereq 2 Imperiled Species and Ecological Communities Required

Y Prereq 3 Wetland and Water Body Conservation Required

Y Prereq 4 Agricultural Land Conservation Required

Y Prereq 5 Floodplain Avoidance Required

4 Credit 1 Preferred Locations 10

0 Credit 2 Brownfield Redevelopment 2

1 Credit 3 Locations with Reduced Automobile Dependence 7

1 Credit 4 Bicycle Network and Storage 1

3 Credit 5 Housing and Jobs Proximity 3

1 Credit 6 Steep Slope Protection 1

1 Credit 7 Site Design for Habitat or Wetland and Water Body Conservation 1

1 Credit 8 Restoration of Habitat or Wetlands and Water Bodies 1

1 Credit 9 1

Yes ? No

30 0 0 Neighborhood Pattern and Design 44 Points Possible

Y Prereq 1 Walkable Streets Required

Y Prereq 2 Compact Development Required

Y Prereq 3 Connected and Open Community Required

12 Credit 1 Walkable Streets 12

1 Credit 2 Compact Development 6

1 Credit 3 Mixed-Use Neighborhood Centers 4

4 Credit 4 Mixed-Income Diverse Communities 7

1 Credit 5 Reduced Parking Footprint 1

1 Credit 6 Street Network 2

1 Credit 7 Transit Facilities 1

1 Credit 8 Transportation Demand Management 2

1 Credit 9 Access to Civic and Public Spaces 1

1 Credit 10 Access to Recreation Facilities 1

1 Credit 11 Visitability and Universal Design 1

2 Credit 12 Community Outreach and Involvement 2

1 Credit 13 Local Food Production 1

2 Credit 14 Tree-Lined and Shaded Streets 2

0 Credit 15 Neighborhood Schools 1

Yes ? No

21 0 0 Green Infrastructure and Buildings 29 Points Possible

Y Prereq 1 Certified Green Building Required

Y Prereq 2 Minimum Building Energy Efficiency Required

Y Prereq 3 Minimum Building Water Efficiency Required

Y Prereq 4 Construction Activity Pollution Prevention Required

Long-Term Conservation Management of Habitat or Wetlands and Water Bodies

LEED for Neighborhood Development Self-Scorecard

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27 Points Possible Green Infrastructure and Buildings, ContinuedYes ? No

3 Credit 1 Certified Green Buildings 5

1 Credit 2 Building Energy Efficiency 2

1 Credit 3 Building Water Efficiency 1

1 Credit 4 Water-Efficient Landscaping 1

1 Credit 5 Existing Building Use 1

1 Credit 6 Historic Resource Preservation and Adaptive Reuse 1

1 Credit 7 Minimized Site Disturbance in Design and Construction 1

1 Credit 8 Stormwater Management 4

1 Credit 9 Heat Island Reduction 1

1 Credit 10 Solar Orientation 1

2 Credit 11 On-Site Renewable Energy Sources 3

2 Credit 12 District Heating and Cooling 2

1 Credit 13 Infrastructure Energy Efficiency 1

1 Credit 14 Wastewater Management 2

1 Credit 15 Recycled Content in Infrastructure 1

1 Credit 16 Solid Waste Management Infrastructure 1

1 Credit 17 Light Pollution Reduction 1

2 1 0 Innovation and Design Process 6 Points

1 Credit 1.1 Innovation and Exemplary Performance: Provide Specific Title 1

1 Credit 1.2 Innovation and Exemplary Performance: Provide Specific Title 1

0 Credit 1.3 Innovation and Exemplary Performance: Provide Specific Title 1

0 Credit 1.4 Innovation and Exemplary Performance: Provide Specific Title 1

0 Credit 1.5 Innovation and Exemplary Performance: Provide Specific Title 1

1 Credit 2 LEED® Accredited Professional 1

Yes ? No

4 0 0 Regional Priority Credit 4 Points

1 Credit 1.1 Regional Priority Credit: Region Defined 1

1 Credit 1.2 Regional Priority Credit: Region Defined 1

1 Credit 1.3 Regional Priority Credit: Region Defined 1

1 Credit 1.4 Regional Priority Credit: Region Defined 1

Yes ? No

70 1 0 Project Totals (Certification estimates) 110 Points

Certified: 40-49 points, Silver: 50-59 points, Gold: 60-79 points, Platinum: 80+ points

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Madonna Enterprises, Clint Pearce

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City of San Luis Obispo, Community Development Department, Housing Programs

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City of San Luis Obispo, Community Development Department, Long Range Planning

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Land Conservancy of San Luis Obispo County

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COSAM LETTER

OF SUPPORT

FROM JENNA’S

FOLDER ON CRP

SERVER

Cal Poly Liberal Studies Department, College of Science and Mathematics

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City of San Luis Obispo, Natural Resources Manager

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City of San Luis Obispo, Community Development, Historic Restoration

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ORGANIC FARM

LETTER OF

SUPPORT FROM

DAN

Cal Poly Organic Farm

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Forest City

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Joan Sullivan, Froom Ranch Historian