1. State of Housing in St. Helena Presentation to the Planning Commission Our Town St. Helena September 15, 2015

2. Workers Vital to St. Helena Branches - $100K Professional work force Positions with good salaries and benefits Would like to own a home here - can’t afford it Mostly commuting Trunks - $50K Skilled work force Young and old, singles and married, seniors – great diversity Many commuting long distances so they can own a home Others living in rentals in town Roots - $30K Mostly employed in wine and hospitality industries Here full time – not migrant work force Singles, couples and families Living in rentals in town or commuting long distances Our Town St Helena Summer 20152

3. What St. Helenans Earn ROOTS Max. $30,000 annual $12 – farm laborer $14 - bank teller $14 – retail clerk $14 - cook $15 - hotel maid $15 - nurses aid $15 - gardener $16 - receptionist $16 winery workers TRUNKS Max. $50,000 annual $17 – file clerk $18 - EMT $18 –City of St. Helena maintenance worker $20 - hotel desk clerk $20 - housekeeper $20 - construction laborer $21 - retail manager $22 - auto mechanic $25 - postal clerk BRANCHES Max. $100,000 annual $30 - human resource manager $32 - restaurant manager $32 - loan officer $32 – paralegal $34 - police sergeant $35 – accountant $46 - dental hygienist $46 – teacher $48 - registered nurse Sources: State of CA Employment Development Department SHUSD School Accountability Report Card City of St. Helena Our Town St Helena Summer 20153

4. What Local Employees Can Afford to Rent or Buy in St. Helena Our Town St Helena Summer 20154

5. St Helena is Facing a Net Loss in Rentals Units thru 2016 Source Total Units – 2010538US Census, 2010 New units thru 2014+18Magnolia Oaks Lost units in 2014- 48Units eliminated from Grandview Units in 2015508 Future Units: Turley8Projected 2016 Total Projected Units 516 NET LOSS (22)In 2016 Our Town St Helena Summer 20155

6. Lack of Rentals Income-Qualified Complexes Rents range from $450 to $1300 for 1 to 4 bedrooms Craigslist on 8/26/15 No studios/1 bedroom Two 2-bedroom $1675 and $3950 One 4-bedroom $4200 Our Town St Helena Summer 20156 NameUnitsWaiting List Stonebridge8075 Hunt’s Grove5447 Calistoga Family Apartments (new) 4842

7. Also Losing Housing Stock 15%? 416 units 20%? 555 units 25%? 694 units What is the % of Housing Units Currently Used as Second Homes or Vacation Rentals? 7Our Town St Helena Summer 2015

8. Lost Employee Housing Stock Sold in 2013 for $525,000Sold in 2015 for $1,565,000 Our Town St Helena Summer 20158

9. Lost Employee Housing Stock Sold in 2011 for $525,000Sold in 2014 for $2,600,000 9Our Town St Helena Summer 2015

10. L ost Employee Housing Stock Sold in 2012 for $685,000 Resold in 2014 for $1,700,000 10Our Town St Helena Summer 2015

11. Lost Employee Housing Stock Sold in 2012 for $799,000 (two homes on one lot) Currently for sale For $2,500,000 11Our Town St Helena Fall 2015

12. Employment to Resident Ratio Total Population: 5818 Total People Working in SH: 5604 Total Workers Living in SH: 2591 Workers living & working in SH: 1230 (48%) SH Residents who Work Elsewhere: 1361 (52%) Workers who commute in: 4374 (78% of total workers) Employment to resident ratio: 2.16 Source: 2010 US Census Our Town St Helena Summer 201512

13. St. Helena Ratio Compared to Other Nearby Communities Source: 2010 US Census Our Town St Helena Summer 2015 LocationRatioLocationRatio St Helena2.16Windsor0.53 Sonoma1.87Petaluma.96 Healdsburg1.28City of Napa.91 Note: City must have 2500 resident workers to qualify. Calistoga and Yountville do not meet the data requirements. 13

14. St. Helena Ratio Compared to Other Resort Communities Source: 2010 US Census Our Town St Helena Summer 2015 LocationRatioLocationRatio Coronado2.82Monterey2.08 Carmel2.77Palm Springs1.55 St Helena2.16Laguna Beach1.19 14

15. Changing our Small Town Character Lack of volunteers for civic participation Aging membership in local service clubs Larger socio-economic gulf in schools and society Difficult to attract employees because of housing cost – Professionals can’t afford to buy a house – Low-wage hospitality and winery workers can’t find rentals The 4000+ employees commuting into town are engaged in their own communities, not ours 15Our Town St Helena Summer 2015

16. Economic Impact The wine industry and tourism are important sources of revenue for St. Helena – At what point will lack of housing affect the quality of our customer service and winery labor force? – When will the clog of commuting workers begin to discourage visitors from coming up valley? Our Town St Helena Summer 201516

17. OTSH’s Two-Pronged Approach Deed Restrict Houses Rent Restrict Rentals PRESERVE Self-Help Homeownership Income-Qualified Rentals BUILD Our Town St Helena Summer 201517

18. 1. Deed-Restrict Existing Homes Purchase lower-end market rate family homes – Rehab as needed – Resale to moderate income families at a reduce price – Deed restricted to assure affordability for 30 to 40 years Estimated $200K investment per home – Cheaper than new construction – Use existing land – Maintains community housing balance Our Town St Helena Summer 201518 Provide a balanced housing community by maintaining a percentage of existing housing stock affordable to the workforce.

19. 2. Maintain Existing Moderate Rate Apartment Rentals No new market rate multi- unit rentals in SH in 30 years High percentage of rental stock built in the 1970s & 1980s Renovation and/or turnover will mean higher rents Need to purchase, rehab, and provide regulated rent on some portion of existing units Our Town St Helena Summer 201519 8 units for sale for $2,295,000

20. 3. OTSH Mutual Self-Help Housing Families work together to build all the houses on each site Income-qualified applicants compete in a lottery to participate Each participating family commits to 2,600 hours of labor… – Which accounts for 65% of the construction labor Their “sweat equity” reduces the overall cost of their home Our Town St Helena Summer 201520

21. OTSH is authorized by USDA Rural Development to build 18 mutual self-help homes in St. Helena First 8 will be on 684 McCorkle, a half-acre site provided by the City of St. Helena Looking for land to build the remaining 10 homes Our Town St Helena Summer 201521

22. McCorkle - Eight 3bdrm/1 ½ bath Townhouses Our Town St Helena Summer 201522

23. 4. Farmworker Family Housing Build income-qualified rentals for farmworkers and their families Partnership – Local land owners – City and County – Rural Community Assistance Corporation – Our Town St. Helena USDA Rural Development Financing Our Town St Helena Fall 201523

24. Preliminary Designs Our Town St Helena Summer 201524

25. Preliminary Designs Our Town St Helena Summer 201525

26. Financing $1,000,000 Rural Development 514 Farmworker 1% loan for development RD 521 rental assistance Contribution from the County and City Equity through the syndication of 9% low income housing tax credits Property donation in the form of a long-term lease or donation Our Town St Helena Summer 201526

27. Maximizing Employee Housing in New Commercial Development Our Town St Helena Summer 201527

28. The Balancing Act City Revenue Quality of Life ShoppingRestaurantsTasting RoomsHotelsServicesHousingTraffic Our Town St Helena Summer 201528

29. TOT Revenue OTSH acknowledges the need to develop sources for additional revenue TOT from new hotel rooms is the most likely source Approving hotel projects in 2015/16 will not impact City revenues in the short-term However, hotel projects will have a long-term impact on our community We can use the leverage available during entitlement process to help maintain our town’s quality of life Our Town St Helena Summer 201529

30. Two Parallel Avenues Housing Impact Fees Negotiated Concessions Additional affordable housing requirements negotiated in return for rezoning and other variances Our Town St Helena Summer 201530 Calistoga$1536 per room Napa City*$1.40 per sq/ft Napa County$9.00 per sq/ft St. Helena$3.80 per sq/ft Yountville$8757 per room *City of Napa is attempting to Increase their fees to $9.00 per sq/ft but is meeting resistance from realtors and builders

31. Yountville Highest housing impact fees in the county Built 56 affordable rental units in the past 7 years Bardessono – 62 hotel rooms completed in 2010 – Town required land (1.25 acres) and financial contribution for 25 affordable units – Town partnered with Napa Valley Community Housing to build the units Hotel Yountville – Similar requirement from the Town for 25 units in exchange for increasing room count from 50 to 82 rooms – Owner built and operates 25 units on 1.25 acres with up to 13 units reserved for hotel’s eligible employees Our Town St Helena Summer 201531

32. Calistoga Housing impact fees similar to St. Helena Opened 48 low-income farmworker rentals in 2015 and has purchased land for 31 senior units Solage – City required Solage to build 24 units – Solage provided Calistoga Affordable Housing and with 1.13 acres, pad ready – CAH partnered with Burbank to build 24 very-low income units Our Town St Helena Summer 201532

33. Calistoga Silver Rose – 84 rooms with full amenities plus 21 private homes – City will receive $496,914 in affordable housing impact fees when permits are pulled Calistoga Hills (formerly Enchanted Resort) – Voter approved in 2012 – 110 rooms and 20 villas with full amenities plus 13 custom homes – City will have received $577,025 in affordable housing impact fees when permits are pulled Our Town St Helena Summer 201533

34. See the Big Picture Each developer will illustrate the specific impact of its project on water, traffic, housing, etc. The City and the County must look at the cumulative impact of all project over a longer period of time Our Town St Helena Summer 201534

35. County-Wide Development Currently 2413 new rooms in 19 hotels in development in Napa County St. Helena – Grandview, 70 rooms, in progress – Vineland Station, 60 rooms, approved – Inn at St. Helena, 80 rooms, conceptual Our Town St Helena Summer 201535 CityHotels Room Impact American Canyon00 City of Napa131468 Yountville00 St. Helena3210 Calistoga3356 County1379 Source: Visit Napa Valley

36. One Perspective What is the projected annual TOT revenue needed to balance the City’s budget in the future? How many new hotels, or expansions of existing hotel, is required to meet this goal? Realistically, the City will approve no more than 2 to 3 new hotel projects How can the City maximize it’s leverage with developers in this competitive process? Our Town St Helena Summer 201536

37. Proposed Next Steps Develop a strategic, long-term plan for hotel development in St. Helena Set both mandated and preferred criteria for developers Investigate raising the housing impact fee for all residential and commercial development Our Town St Helena Fall 201537