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HomeMy WebLinkAboutSPCC Minutes 1990-08-20IN THE COUNCIL CHAMBER- iF THE CITY OF SAN RAFAEL, MONDt. , AUGUST 20, 1990, AT 7:30 P.M. Special Joint Meeting: Present: Lawrence E. Mulryan, Mayor/Chairman San Rafael City Council/ Albert J. Boro, Member/Councilmember San Rafael Redevelopment Dorothy L. Breiner, Member/Councilmember Agency Michael A. Shippey, Member/Councilmember Joan Thayer, Member/Councilmember Absent: None Also Present: Suzanne Golt, Acting Executive Director/Assistant City Manager; Gary T. Ragghianti, Agency Attorney/City Attorney; Jeanne M. Leoncini, Agency Secretary/City Clerk PUBLIC HEARING - SPECIAL JOINT PUBLIC HEARING TO CONSIDER AMENDMENTS TO THE LEASE OF 0.98 ACRES OF AGENCY OWNED PRUNtKif LOCATED AT 855 "C" STREET IN SAN RAFAEL RE "CENTERTOWN" PROJECT (RA) - File R-272 3+ 5-1-286 CITY COUNCIL 1. Resolution of the City Council of the City of San Rafael Approving the Ground Lease of Property Pursuant to a First Amended and Restated Ground Lease Between the San Rafael Redevelopment Agency of the City of San Rafael and Centertown Associates Ltd. and Approving the Payment by Centertown Associates Ltd. of Fees. REDEVELOPMENT AGENCY 2. Resolution Approving "First Amended and Restated Ground Lease" of Centertown Property Between the San Rafael Redevelopment Agency and Centertown Associates Ltd. and Modifying Authorization of a Loan to Centertown Associates Ltd. Mayor/Chairman Mulryan declared the Public Hearing opened. Housing Consultant, Dick Bornholdt, informed the Council/Agency that this item allows an amendment to the Ground Lease for the Centertown project. He stated that the amendment provides for a change in the payments and a change in the security for funding which the Agency is providing for the project. He noted that the Agency has acquired the site and has, in addition, authorized a loan to Centertown Associates who developed the project. He stated these monies were to be repaid through lease payments. In order to apply for low income tax credits and provide for a prepayment to the Agency, certain things must be done. First, removing the improvements which are on the existing site from the Ground Lease, and securing those by a note; removing the loan from the Agency and securing that by a note, as well as securing deferred payments of City fees by a note. He stated the payment schedules on the notes, plus the lease payments, plus an estimated prepayment, result in the repayment of the Agency's money in approximately the same schedule as was provided for in the lease. He added that the benefits of this change are lower rents on the project, more of the units will be affordable for families earning $12,000 and less a year, and a prepayment will be coming back to the Agency. Mayor/Chairman Mulryan inquired if, even though the repayment schedule is slightly longer, from our present value standpoint because of the prepayment up front, is the present value about the same as it was before. Mr. Bornholdt replied in the affirmative. He added that the other advantage is that the Agency would get some funds early on, which could then be used for another project. Mayor/Chairman Mulryan then inquired as to how many of the 60 units will be affordable, and Mr. Bornholdt stated all of the units will be affordable, with this particular combination. Mr. Mulryan mentioned that Mr. Bornholdt had expressed the intention of reserving a good portion of the units for public employees. Councilmember/Member Boro verified that the time period of 25 to 33 years is approximately the same, with the prepayment. He then inquired about the 75 -year note. Mr. Bornholdt responded that the entire lease was a 75 -year lease, and still is, so that the notes have been cast as 75 -year notes, to keep them all the same term as the lease. Mr. Boro then brought up the question of preference for City employees for affordable units. He stated that the City is well aware of the problems of providing housing for its own employees, and in this case he is also speaking of both San Rafael and Dixie School Districts' employees. He stated that, using this as a global base, since the City knows it has the problem, and since the City is being very proactive SRCC/SRRA MINUTES (Special Joint) 8/20/90 Page 1 SRCC/SRRA MINUTES (SpeciE oint) 8/20/90 Page 2 in the development of the site, he would like the Agency/City Attorney's opinion on how much latitude there would be in reserving quite a few of the units for City and School District employees. City/Agency Attorney Ragghianti responded that there would be quite a bit of latitude, and that he is certain that the position could be sustained, because of the lack of affordable housing. Mr. Mulryan inquired if it could be broadened to include not only the City's employees, but other public employees as well, and Mr. Ragghianti agreed it could. Mr. Boro stated he had not realized that all of the units would be affordable, and Mr. Bornholdt responded that there will be graduated rents, with some at the lower rents mentioned in the staff report, and a percentage of the one, two and three bedrooms which will be graduated, based upon incomes, which are requirements of the State funds. He noted that the tax credits will create 25 or 30 of the low income units. Mr. Boro recommended Mr. Bornholdt come back with a plan regarding the rentals, noting that when negotiating with the Police and Fire Departments, housing was an issue, and also travel, especially for the young Police and Fire personnel, and young people in clerical positions who currently cannot afford to live in the City. He feels this might provide them with an opportunity to live here. Mr. Bornholdt responded that he and the developers are well aware of this, and the developers are willing to carry it out. Councilmember/Member Breiner stated she would be interested in knowing how many units could be put in reserve for the priority groupings, and recommended including another category consisting of people who are currently working within the City of San Rafael since this would be another means of cutting down the traffic impacts of jobs in this area. Mr. Bornholdt stated that in 1988 they commissioned a study about downtown housing and the market demand. He stated he looked at it today, and the ranges of the salaries are within the ranges they will meet with this project. Councilmember/Member Shippey inquired at what stage would they begin implementing priorities. Mr. Bornholdt responded this would be when they would begin marketing the project, which would be near completion, probably about a year from now. Councilmember/Member Thayer then inquired about the security on the notes, stating that one was for improvements. She inquired about the other two. Mr. Bornholdt responded that there is a $303,000 loan which will be used for site improvements and site development which they had to do because of the existing structure, and there is also a note for $490,000, which is the appraised value of the improvements, and a note for $126,000 which is for the City fees. Ms. Thayer responded that previously the property was the security, and Mr. Bornholdt responded that basically the security is the same, except that the notes are not contained in the lease any longer, that they are separate notes. So, the payments to the City go on in the same fashion, but there are actually two payments now, the note payments and the lease payments. Before there were just lease payments. Jim Buckley from BRIDGE Housing addressed the priority issue, stating they have discussed it several times and are very anxious to put the priorities in place. He stated he will work with Mr. Ragghianti to make sure it is done in a legal fashion. He stated they will work out a plan for offering the units at the time they are marketing them. They will also consult with their attorney. There being no further public comments, Mayor/Chairman Mulryan closed the public hearing. Mr. Boro stated that he is confident this will be the last of the amendments, and it would be very helpful to have a time line, including when the project will start. He stated he feels the offering of the units should be well before the project is complete, so people can make plans. He stated he would like to see a completion line to show the different stages. Mr. Bornholdt noted this should be the last modification, that the application for the tax credits will go in on August 31st, and the State will be allocating them in November, and after that, construction will start. CITY COUNCIL Councilmember Boro moved and Councilmember Thayer seconded, that the City Council adopt the Resolution approving the Ground Lease, as amended. SRCC/SRRA MINUTES (Special Joint) 8/20/90 Page 2 SRCC/SRRA MINUTES (Specia pint) 8/20/90 Page 3 RESOLUTION NO. 8215 - APPROVING THE GROUND LEASE OF PROPERTY PURSUANT TO A FIRST AMENDED AND RESTATED GROUND LEASE BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY OF THE CITY OF SAN RAFAEL AND CENTERTOWN ASSOCIATES LTD. AND APPROVING THE PAYMENT BY CENTERTOWN ASSOCIATES LTD. OF FEES. AYES: COUNCILMEMBERS: Boro, Breiner, Shippey, Thayer & Mayor Mulryan NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None SAN RAFAEL REDEVELOPMENT AGENCY Member Breiner moved and Member Boro seconded, that the Agency adopt the Resolution approving the Ground Lease and modifying authorization of a loan to Centertown Associates, Ltd. RESOLUTION NO. 90-30 - APPROVING "FIRST AMENDED AND RESTATED GROUND LEASE" OF CENTERTOWN PROPERTY BETWEEN THE SAN RAFAEL REDEVELOPMENT AGENCY AND CENTERTOWN ASSOCIATES LTD. AND MODIFYING AUTHORIZATION OF A LOAN TO CENTERTOWN ASSOCIATES LTD. AYES: MEMBERS: Boro, Breiner, Shippey, Thayer & Chairman Mulryan NOES: MEMBERS: None ABSENT: MEMBERS: None There being no further action, the meeting was adjourned. 4'<Zjq Se JEANNE M. EOf�CINI, Agency cretary/City Clerk APPROVED THIS DAY OF CHAIRMAN/MAYOR OF THE CITY OF SAN RAFAEL 1990 SRCC/SRRA MINUTES (Special Joint) 8/20/90 Page 3