Hesperia Appraisal on Monday ??

Agenda - 200Kb Agenda Package - 1.56MB- 6.97MB Pages 4-7 (Questions and Answers)

Hesperia is on the Agenda at the COW meeting in the morning ONLY as to the approval of the Minutes of the Previous COW meeting. This will be the only debate that is on Monday's Agenda. Generally minutes of meetings are approved with little debate or Comment.
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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.

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"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."

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Hopefully the appraisal and the report on DCC's will be made available to the public on the City's website so the question of the Value of the taxpayers subsidy for 'attainable housing' can be calculated.

The Cheatsheet for this calculation is simple:

• Appraisal value of 69 acres of land if sold to developers: ** $
• Minus Present Value Return of Project (from 5 yr. cash flow plan) = $19,970,649 *
• Difference is deemed subsidy for 'Attainable housing' = $
  

**The sales value of 69 acres on the open market with the same highest use zoning as is envisioned on the Hesperia Land Project now is the Taxpayers maximum return on this taxpayer's asset.
*Basically the taxpayer of the City will receive a total of $22,578,000 ($19,578,000 in 'dividends' and $3,000,000 for Land). (Present value of this deal in 2008 $'s is $19,970,649). (Dividend present value at 2% is $17,253,457 at 3% is $16,212,881 Land Present value at 2% is 2,717,192 at 3% is 2,587,826.) This is our return from the initial cash flow projections.
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When the average person can clearly say, we will give up "x" number of dollars if we develop that land rather than sell it to developers BUT we will get "y" number of attainable housing units and I think that is fair, then the deal should be made. When the average Councillor can actually say and understand that, than then and only then should they actually vote on this deal.

Could this money be used to provide more units of 'affordable housing' ?

Will we get any answers Monday. The appraisal is the key to the decision.