Dominium is proposing to redevelop approximately 12 acres on the north side of Signal Hills. The project includes the purchase and demolition of former Kmart building and Signal Bank. They plan to construct 247-units of senior apartments and 146-units of non-age restricted apartments.
Dominium is applying for tax-exempt bonds and 4% affordable housing tax credits through the County. One hundred percent (100%) of the units in both buildings (family and senior) will be income restricted at 60% of area median income (AMI). Rent limits are set annually by the Department of Housing and Urban Development (HUD) and set at 30% of 60% of AMI. Income limits are adjusted by family size and rent limits for 2020 are shown below:
Studio $ 1,086
One Bedroom $ 1,164
Two Bedrooom $ 1,396
Three Bedroom $ 1,613
Maximum Gross Monthly Rent Total project cost is approximately $122M and includes payment of park dedication fees of $480,000 and building permit fees of $250,000+. The project will create approximately 228 local temporary construction jobs and after construction, an estimated 123 permanent jobs will be created. See attached Economic Impacts Table.
The project meets the EDA’s criteria for a business subsidy and pursuant to our ordinance, would be required to pay prevailing wage since it is receiving TIF assistance. The project requires a rezoning from B-4 Shopping Center to PRD R-4 Multifamily, which is consistent with the Comp Plan (calls for mixeduse at Signal Hills) and proposed Housing Plan. Historically, Kmart and Signal Bank occupied the proposed development areas, but have been vacant for 3 and 23 years respectively (Kmart has been vacant since 2016 and Signal Bank has been vacant since 1997). Redevelopment of this area has been a priority of the City for many years and this project would redevelop this vacant and blighted area of the City.
The current market value for these two buildings is approximately $3.6M and generates approximately $122,400 in property taxes as noted in the table below. The estimated market value upon completion is approximately $49.125M and would generate approximately $524,700 in property taxes. Overall, this is a 1365% increase in property valuation.
Additional Information can be found in the documents below:
Trip Generation / Expected Traffic Impact
Dominium Concept Plan
Estimated Economic Impact of Signal Hills Development Project
TIF Term Sheet
Analysis of TIF Request
KMart / Signal Bank Site Redevelopment Plan Background Memo