Affordable housing project stalled by developer
Apartment complex slated for downtown area is put on hold
By Sylvie Belmond belmond@theacorn.com

The effects of the real estate market downturn are manifestly trickling down to Moorpark as the developer of a 200unit apartment complex that was slated to be built on a 10.5-acre parcel south of Casey Road and west of Walnut Canyon recently decided to put the project on hold.

The proposal was reviewed by the City Council last month, and approval was pending on the finalization of a development agreement and an affordable housing agreement. The agreements were needed before the developer could obtain the city's support to obtain a state bond to finance the project.

"It appeared that the bond financing was all but approved," said Barry Hogan, deputy city manager for Moorpark. However the city's application to the State California Debt Limit Allocation Committee for a bond allocation was withdrawn when Essex Property Trust, the developer, pulled the plug on the project.

This allocation was needed to obtain qualified tax exempt financing, according to city staff.

The affordable housing agreement would have set 25 percent of the apartment units aside for families and individuals that earn very low, low and moderate incomes to accommodate local residents who qualify for the city's affordable housing program.

The apartment complex was going to have 94 one-bedroom units, 98 two-bedroom units and eight three-bedroom apartments. The land was already filled to accommodate the development but it has not been graded yet.

Building an affordable project in a market of quickly escalating costs is a difficult task, said Maura Lederer, first vice president of Essex Property Trust.

"Our Moorpark project is a complicated one with many out of the ordinary elements to it. We are in discussions with the city and hope to work with them to find solutions to the issues that currently prevent us from being able to move forward with the project at this time," she said.

Lederer did not provide further details about the matter but Hogan concurred that the city is now in discussions with the developer to see if some adjustments could be made to the project to reduce costs without sacrificing quality.

"It's very disappointing because it's a project we worked on for many years," said Councilmember Janice Parvin.

"The project is probably going to be abandoned. That's unfortunate it was going to provided much needed housing for a wide range of people," said Mayor Patrick Hunter.

Businesses and developers are seeing a bit of a slow down. "People are thinking twice about where they're putting their money," said Lisa Masotti, president of the Moorpark Chamber of Commerce.

The current housing market is slowing down a lot of projects, said Hugh Riley, assistant city manager. "But none of the requirements placed by city on this developer are new, so the decision to pull out all of a sudden caught the city a bit by surprise," said Riley.

Since the Essex already bought the land and spend much money with consulting fees, the city recommends they should get the project committed and ready to be built so that someone else can take over if they don't want to proceed, Riley said.

Another large development in Hitch Ranch slated for that area has also been delayed for many years. It was supposed to go to the City Council for review this year but this hasn't come to fruition either.

"Both of these projects will have a significant impact on what happens west of city hall," Riley said.

The stalled project will not affect the city's plans to build a new city hall at this point.

While the Development Agreement with Essex included a deal to sell a piece of land to the city for the new Civic Center Campus, the lack of acquisition of that site will not delay the construction of the new Civic Center.

The additional land that was going to be purchased by the city though the Development Agreement increase the scope of the Civic Center Campus Plan, giving the city greater opportunities to attract governmental and civic uses to the downtown area, said Hogan.

The Essex complex was also going to cut into the Boys & Girls Club facilities on Casey Road as it would have eliminated the parking lot and a basketball court, but it would not have impacted the gym.

City leaders don't know what will happen with that site in the long term, but they hope that Essex will let things continue as is for the time being.