CALEXICO — Developers anticipate a senior housing building, known as De Anza II Senior Apartments, to be finished about one year from now.
City Manager Oscar Rodriquez said the project will be able to fill a need for the city.
“This is a project that we’ve been working on for a while and, as you know, under our housing element we’re short as far as providing affordable housing,” he said. “This particular project would address that issue on the affordable side and on the senior side.”
The project by Chelsea Investment Corp., owners of the De Anza Hotel, is estimated to cost about $8.8 million.
City Council approved the issuance of a bond by the California Municipal Finance Authority for the project Tuesday night. Chelsea has all liability and guarantees tied to this bond.
Rabobank has made a firm commitment for the construction financing through the direct purchase of a tax-exempt bond allocation.
Project funding will also come from a permanent HOME loan by the California Department of Housing and Community Development, partner equity by the Richman Group, and an application will be submitted for funding from the Affordable Housing Program.
The project may receive additional funding in the fall, which may allow rent to be reduced for tenants.
The California Foundation for Stronger Communities, a California nonprofit public benefit corporation, acts as the board of directors for California Municipal Finance Authority.
It will share 25 percent of the issuance fees it receives with the city of Calexico’s general fund.
De Anza II will ultimately entail a three-story, 54-unit residential facility located behind the De Anza Hotel with an attached two-story, 72-space garage on the east side of the new building. It will be where the De Anza’s parking lot is now.
Construction is projected to begin around December or January and estimated to last about eight months, Chelsea Investment Corp. Project Manager Tim Baker said.
The construction of the De Anza II will have no detrimental effect on the hotel’s classification as a historic structure, Baker explained.
The style and architecture of the De Anza II will relate to the De Anza Hotel with the same stucco color and red tile roofing.
There will also be improvements, such as a mist system, made to the hotel’s courtyard to make it more user-friendly, Baker said.
The new building will include a manager’s office, a community room and an elevator.
“We’re very much looking forward to getting this under way,” Baker said. “We’ll be submitting plans to the city sometime around Oct. 1 and are looking forward to this opportunity.”
The building’s rooms will all be roughly 335-square-feet studio apartments ideal for individuals or couples within a certain income range.
Staff Writer Chelcey Adami can be reached at 760-337-3452 or firstname.lastname@example.org
De Anza to add second structure within a year
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