Answers From Hesperia President available on City's Website !

Agenda Package - 1.56MB- 6.97MB Pages 4-7 (Questions and Answers)

Mr. Ken Stewart, President, and Mr. Pearson, Board Member, Hesperia Development Corporation (HDC) attended Council to provide answers to questions of Council Regarding HDC as follows:
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Don Quixote Note:
Interesting Excerpts from Minutes: Read above link for ALL questions and answers.

• Why is the revenue only $38 million? Provide breakdown, costs and donation of land.
  Value of land only is $38,000 (sic) - not the potential development of the land.
  
• Why $2 million in DCC's?
  The $2 million in DCC's for the land development not the construction components. This is an over estimate and HDC believes they will come in below this. The construction will see additional DCC's as appropriate in the Bylaw.
  
• The City will not continue to own the land. lt will be sold to the people who develop or who buy the houses. Not sure where the 125 units is coming from as the intention is a 50/50 split for attainable housing of the 1000 unit development
  
• The land has been appraised by the City of Vernon, not HDC, and that information would have to be obtained from the City. The appraisal targets the minimum amount it has to generate from that land. Original budget was based on land values at
  the time and not on the appraisal.
• The HDC will not be subsidizing any of the 500 units unless the City of Vernon directs them to subsidize units. Working on family incomes between $56,000 - $100,000. We are addressing the middle income housing segment to provide attainable housing not necessarily affordable housing.
  
• The City of Vernon is the shareholder and all profits will be paid back to the Corporation. Any decision regarding the profits of the development, is at the discretion of the shareholder, which is the City of Vernon. The public should be concerned with how their tax dollars are spent. The Directors of the Board are basically volunteers and the nominal pay they receive basically an honorarium. Development costs and project manager's fees are hired professionals who are paid for their services and this is monitored closely.
  
• The City of Vernon recognized a great need for this type of housing in the community and HDC is attempting to provide this housing and will not proceed unless it is profitable. lf the project does not look like it will be profitable we will not be proceeding.
  
• Financial impact on Vernon taxpayers - it is the goal of HDC to generate a profit for the City of Vernon, so there is no financial impact.
• The project will be listed for sale, most likely in pieces, and whoever buys a particular piece will develop it. HDC will not be developing the lots. At this point HDC does not
  know who would be interested in developing the property.
• The Board of Directors meets once a month. When dealing with land, the meetings are In Camera and will not be open to the public. The HDC is no different than any other
  Corporation; however, the sole shareholder is the City of Vernon.
  

Council Members requested to receive a copy of the appraisal for the Hesperia Lands, as well as a report on the proposed DCC's for the development.