state of housing in st. helena presentation to the planning commission our town st. helena september...

State of Housing in St. HelenaPresentation to the Planning

Commission

Our Town St. HelenaSeptember 15, 2015

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Workers Vital to St. HelenaBranches - $100K• Professional work force• Positions with good salaries and benefits• Would like to own a home here - can’t afford it• Mostly commuting

Trunks - $50K• Skilled work force• Young and old, singles and married, seniors – great diversity• Many commuting long distances so they can own a home• Others living in rentals in town

Roots - $30K• Mostly employed in wine and hospitality industries• Here full time – not migrant work force• Singles, couples and families• Living in rentals in town or commuting long distances

Our Town St Helena Summer 2015

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What St. Helenans Earn

Sources: State of CA Employment Development DepartmentSHUSD School Accountability Report Card City of St. Helena


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What Local Employees Can Affordto Rent or Buy in St. Helena


Our Town St Helena Summer 2015 5

St Helena is Facing a Net Loss in Rentals Units thru

2016Source

Total Units – 2010

538 US Census, 2010

New units thru 2014

+18 Magnolia Oaks

Lost units in 2014 - 48 Units eliminated from Grandview

Units in 2015 508

Future Units:

Turley 8 Projected 2016

Total Projected Units

516

NET LOSS (22) In 2016


Lack of Rentals

Income-Qualified Complexes

• Rents range from $450 to $1300 for 1 to 4 bedrooms

Craigslist on 8/26/15• No studios/1 bedroom

• Two 2-bedroom

$1675 and $3950

• One 4-bedroom

$4200

Name Units Waiting List

Stonebridge 80 75

Hunt’s Grove 54 47

Calistoga FamilyApartments (new)

48 42


Also Losing Housing Stock

What is the % of Housing Units Currently Used as Second Homes or Vacation Rentals?


Lost Employee Housing Stock

Sold in 2013 for $525,000 Sold in 2015 for $1,565,000



Sold in 2011 for $525,000 Sold in 2014 for $2,600,000



Sold in 2012 for $685,000

Resold in 2014 for $1,700,000

Our Town St Helena Fall 2015 11


Sold in 2012 for $799,000

(two homes on one lot)

Currently for sale For $2,500,000


Employment to Resident Ratio

Source: 2010 US Census


St. Helena Ratio Compared to Other Nearby Communities


Location Ratio Location Ratio

St Helena 2.16 Windsor 0.53

Sonoma 1.87 Petaluma .96

Healdsburg 1.28 City of Napa .91

Note: City must have 2500 resident workers to qualify. Calistoga and Yountville do not meet the data requirements.


St. Helena Ratio Compared to Other Resort Communities


Location Ratio Location Ratio

Coronado 2.82 Monterey 2.08

Carmel 2.77 Palm Springs 1.55

St Helena 2.16 Laguna Beach 1.19


Changing our Small Town Character

• Lack of volunteers for civic participation• Aging membership in local service clubs• Larger socio-economic gulf in schools and society• Difficult to attract employees because of housing cost– Professionals can’t afford to buy a house– Low-wage hospitality and winery workers can’t find rentals

• The 4000+ employees commuting into town are engaged in their own communities, not ours


Economic Impact

• The wine industry and tourism are important sources of revenue for St. Helena– At what point will lack of housing affect the quality

of our customer service and winery labor force?– When will the clog of commuting workers begin to

discourage visitors from coming up valley?


OTSH’s Two-Pronged Approach


1. Deed-Restrict Existing Homes

• Purchase lower-end market rate family homes– Rehab as needed– Resale to moderate income families at

a reduce price– Deed restricted to assure affordability

for 30 to 40 years

• Estimated $200K investment per home– Cheaper than new construction– Use existing land– Maintains community housing balance

Provide a balanced housing community by maintaining a percentage of existing housing stock affordable to the workforce.


2. Maintain Existing Moderate Rate Apartment Rentals

• No new market rate multi- unit rentals in SH in 30 years

• High percentage of rental stock built in the 1970s & 1980s

• Renovation and/or turnover will mean higher rents

• Need to purchase, rehab, and provide regulated rent on some portion of existing units

8 units for sale for $2,295,000


3. OTSH Mutual Self-Help Housing

• Families work together to build all the houses on each site

• Income-qualified applicants compete in a lottery to participate

• Each participating family commits to 2,600 hours of labor…– Which accounts for 65% of the construction labor

• Their “sweat equity” reduces the overall cost of their home


•OTSH is authorized by USDA Rural Development to build 18 mutual self-help homes in St. Helena• First 8 will be on 684 McCorkle, a half-acre site provided by the City of St. Helena• Looking for land to build the remaining 10 homes


McCorkle - Eight 3bdrm/1 ½ bath Townhouses


4. Farmworker Family Housing• Build income-qualified rentals for farmworkers

and their families• Partnership– Local land owners– City and County– Rural Community Assistance Corporation– Our Town St. Helena

• USDA Rural Development Financing


Preliminary Designs


Financing

• $1,000,000 Rural Development 514 Farmworker 1% loan for development

• RD 521 rental assistance• Contribution from the County and City• Equity through the syndication of 9% low

income housing tax credits• Property donation in the form of a long-term

lease or donation


Maximizing Employee Housing in New Commercial Development


The Balancing Act


TOT Revenue

• OTSH acknowledges the need to develop sources for additional revenue

• TOT from new hotel rooms is the most likely source• Approving hotel projects in 2015/16 will not impact

City revenues in the short-term• However, hotel projects will have a long-term impact

on our community• We can use the leverage available during

entitlement process to help maintain our town’s quality of life


Two Parallel Avenues

• Housing Impact Fees • Negotiated Concessions

Additional affordable housing requirements negotiated in return for rezoning and other variances

Calistoga $1536 per room

Napa City* $1.40 per sq/ft

Napa County $9.00 per sq/ft

St. Helena $3.80 per sq/ft

Yountville $8757 per room

*City of Napa is attempting to Increase their fees to $9.00 per sq/ft but is meeting resistance from realtors and builders


Yountville

• Highest housing impact fees in the county• Built 56 affordable rental units in the past 7 years• Bardessono – 62 hotel rooms completed in 2010

– Town required land (1.25 acres) and financial contribution for 25 affordable units

– Town partnered with Napa Valley Community Housing to build the units

• Hotel Yountville– Similar requirement from the Town for 25 units in exchange for

increasing room count from 50 to 82 rooms– Owner built and operates 25 units on 1.25 acres with up to 13 units

reserved for hotel’s eligible employees


Calistoga

• Housing impact fees similar to St. Helena• Opened 48 low-income farmworker rentals in

2015 and has purchased land for 31 senior units• Solage– City required Solage to build 24 units– Solage provided Calistoga Affordable Housing and

with 1.13 acres, pad ready– CAH partnered with Burbank to build 24 very-low

income units


Calistoga

• Silver Rose– 84 rooms with full amenities plus 21 private homes– City will receive $496,914 in affordable housing impact

fees when permits are pulled• Calistoga Hills (formerly Enchanted Resort)

– Voter approved in 2012– 110 rooms and 20 villas with full amenities plus 13

custom homes– City will have received $577,025 in affordable housing

impact fees when permits are pulled


See the Big Picture

• Each developer will illustrate the specific impact of its project on water, traffic, housing, etc.

• The City and the County must look at the cumulative impact of all project over a longer period of time


County-Wide Development

• Currently 2413 new rooms in 19 hotels in development in Napa County

• St. Helena– Grandview, 70 rooms, in

progress– Vineland Station, 60

rooms, approved– Inn at St. Helena, 80

rooms, conceptual

City HotelsRoom Impact

American Canyon 0 0

City of Napa 13 1468

Yountville 0 0

St. Helena 3 210

Calistoga 3 356

County 1 379

Source: Visit Napa Valley


One Perspective

• What is the projected annual TOT revenue needed to balance the City’s budget in the future?

• How many new hotels, or expansions of existing hotel, is required to meet this goal?

• Realistically, the City will approve no more than 2 to 3 new hotel projects

• How can the City maximize it’s leverage with developers in this competitive process?


Proposed Next Steps

• Develop a strategic, long-term plan for hotel development in St. Helena

• Set both mandated and preferred criteria for developers

• Investigate raising the housing impact fee for all residential and commercial development

state of housing in st. helena presentation to the planning commission our town st. helena september...

Documents

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