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HomeMy WebLinkAboutSPJT Minutes 1991-05-06SRCC/ 'RA MINUTES (Special Joint) CEP. ZTOWN 5/6/91 Page 1 IN THE COUNCIL CHAMBERS OF THE CITY OF SAN RAFAEL, MONDAY, MAY 6, 1991, AT 7:30 P.M. Special Joint Meeting: Present: Lawrence E. Mulryan, Mayor/Chairman San Rafael City Council and Albert J. Boro, Councilmember/Member San Rafael Redevelopment Agency Dorothy L. Breiner, Councilmember/Member Michael A. Shippey, Councilmember/Member Joan Thayer, Councilmember/Member Absent: None Also Present: Pamela J. Nicolai, City Manager/Executive Director Gary T. Ragghianti, City Attorney/Agency Attorney Jeanne M. Leoncini, City Clerk/Agency Secretary SPECIAL JOINT PUBLIC HEARING TO CONSIDER AMENDMENTS TO THE LEASE OF 0.98 ACRES OF AGENCY OWNED PROPERTY LOCATED AT 855 "C" STREET IN SAN RAFAEL RE "CENTERTOWN" PROJECT (RA) - File R-272 x (SRCC) 5-1-286 x 10-2 Mayor/Chairman Mulryan opened the Public Hearing. CITY COUNCIL 1. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING THE GROUND LEASE OF PROPERTY PURSUANT TO SECOND AMENDMENT TO FIRST AMENDED AND RESTATED GROUND LEASE BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY OF THE CITY OF SAN RAFAEL AND CENTERTOWN ASSOCIATES, LTD.; APPROVING SUBORDINATION AGREEMENTS; APPROVING TERMINATION OF AGREE- MENT REGARDING USE OF PROPERTY; AND APPROVING MODIFICATION OF NOTE AND DEED OF TRUST FROM CENTERTOWN ASSOCIATES, LTD. REDEVELOPMENT AGENCY 2. RESOLUTION APPROVING SECOND AMENDMENT TO GROUND LEASE OF CENTERTOWN PROPERTY BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND CENTERTOWN ASSOCIATES LTD.; APPROVING SUB- ORDINATION AGREEMENTS; APPROVING RESCISSION OF CONDITIONS, COVENANTS AND RESTRICTIONS; APPROVING TERMINATION OF AGREEMENT REGARDING USE OF PROPERTY; AUTHORIZING SUBSTITUTION OF TRUSTEE AND RECONVEYANCE OF DEED OF TRUST FOR $18,000 LOAN; AUTHORIZING RESCISSION OF AGREEMENT TO LEASE; AND AUTHORIZING MODIFICATION OF $303,000 AND $490,000 PROMISSORY NOTES AND DEEDS OF TRUST Assistant Executive Director Ours informed the Council/Agency that the Resolutions before them at this hearing represent all that is required to bring the project into compliance with the various funding agencies and the State of California. He stated that the net result of tonight's action will be that the financing will be completed, the project will be ready to start in late May, and there will be no additional cost because of this action. He referred to Page 4 of the Staff Report, which contains a schedule showing the cash flows and the time frames. He pointed out that the schedule shows that in January of 1992 the Agency notes of $793,000 begin to bear 3% interest. He added that in October of 1992, after completion, the City note for $126,000 will be paid, along with about $300,000 back to the Agency. Mr. Ours pointed out that in March of 1994 the annual lease payments of $32,000 a year increase at $1,000 per year until $1,061,000 is repaid in approximately 23 years. He noted there will be 60 very affordable units. Mayor/Chairman Mulryan remarked that this is a project to be proud of. Councilmember/Member Shippey noted that the lease period is 75 years, and inquired if there is expectation that the project will remain intact for that period of time. Mr. Ours responded that it will. He added that there is a requirement from the State that there will be affordable units for 55 years out of that, but this is set up so it will be affordable for the entire lease term. Councilmember/Member Breiner inquired if the interest is coming out of the rents, from Centertown Associates. Mr. Ours replied in the affirmative. He stated they had projected there would be room for a 3% interest rate on that money, based on affordable rental rates. Councilmember/Member Boro clarified that, even though the agreement is for 50-55 years, the intent is to keep the affordable housing for 75 years, the life cycle of the lease. Mr. Ours stated that is correct, noting that the rental agreement from HCD (Housing & Community Development) has not yet been received, but he will bring it to the Council's attention when it comes. Mr. Boro inquired if, since construction is due to start on May 20th, will there be a groundbreaking sometime prior to that date. SRCC/SRRA MINUTES (Special Joint) CENTERTOWN 5/6/91 Page 1 SRCC/ RA MINUTES (Special Joint) CEN (TOWN 5/6/91 Page 2 Jim Duffy from BRIDGE Housing informed the Council/Agency that they had asked that the ceremony be put off until all of the financing is in place and wrapped up before the groundbreaking ceremony. He added they would like to have a very large ceremony, and would like to plan it for early June, if that is acceptable. There being no public input, the Public Hearing was closed. CITY COUNCIL Councilmember Boro moved and Councilmember Breiner seconded, that the Council adopt the Resolution which approves amendment to the ground lease; approves subordination agreements; approves termination of previous agreements for use of property; amends $126,000 Note and Deed of Trust; and authorizes the City Manager to execute all necessary documents. RESOLUTION NO. 8381 - APPROVING THE GROUND LEASE OF PROPERTY PURSUANT TO SECOND AMENDMENT TO FIRST AMENDED AND RESTATED GROUND LEASE BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY OF THE CITY OF SAN RAFAEL AND CENTERTOWN ASSOCIATES LTD.; APPROVING SUBORDINATION AGREE- MENTS; APPROVING TERMINATION OF AGREEMENT REGARDING USE OF PROPERTY; AND APPROVING MODIFICATION OF NOTE AND DEED OF TRUST FROM CENTERTOWN ASSOCIATES LTD. AYES: COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Mayor Mulryan NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None SAN RAFAEL REDEVELOPMENT AGENCY Agency Member Breiner moved and Agency Member Shippey seconded, that the Agency adopt the Resolution which amends the Ground Lease; approves subordination agreement for Agency loans of $793,000; rescinds Covenants, Conditions and Restrictions for previous condominium project; terminates previous agreements for use of property with U.F. Service Corporation and the Marin Housing Authority; cancels the promissory note and reconveys the Deed of Trust for the $18,000 loan to BRIDGE and EAH; rescinds the original agreement to Lease; amends the $303,000 and $490,000 promissory notes; and authorizes the Executive Director of the Redevelopment Agency to execute all necessary documents. RESOLUTION NO. 91-10 - APPROVING SECOND AMENDMENT TO GROUND LEASE OF CENTERTOWN PROPERTY BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND CENTERTOWN ASSOCIATES LTD.; APPROVING SUBORDINATION AGREEMENTS; APPROVING RESCISSION OF CONDITIONS, COVENANTS AND RESTRICTIONS; APPROVING TERMINATION OF AGREEMENT REGARDING USE OF PROPERTY; AUTHORIZING SUBSTITUTION OF TRUSTEE AND RECONVEYANCE OF DEED OF TRUST FOR $18,000 LOAN; AUTHORIZING MODIFICATION OF $303,000 AND $490,000 PROMISSORY NOTES AND DEEDS OF TRUST AYES: MEMBERS: Boro, Breiner, Shippey, Thayer & Chairman Mulryan NOES: MEMBERS: None ABSENT: MEMBERS: None There being no further business, the meeting was adjourned. 4 JEANNE `{,E .ONCINI, Ci y lerk/ gency Secretary APPROVED THIS DAY OF MAYOR OF THE CITY OF SAN RAFAEL CHAIRMAN, SAN RAFAEL REDEVELOPMENT AGENCY SRCC/SRRA MINUTES (Special Joint) CENTERTOWN 5/6/91 Page 2 , 1991