HomeMy WebLinkAboutRA Minutes 1999-06-07SRRA MINUTES (Regular) 6/7/99 Page 1
IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, JUNE 7, 1999 AT 7:30
PM
Regular Meeting:
San Rafael Redevelopment Agency:
Present: Albert J. Boro, Chairman
Paul M. Cohen, Member
Barbara Heller, Member
Cyr N. Miller, Member
Gary O. Phillips, Member
Absent: None
Also Present: Rod Gould, Executive Director
Gary T. Ragghianti, Agency Attorney
Jeanne M. Leoncini, Agency Secretary
ORAL COMMUNICATIONS OF AN URGENCY NATURE:
PM
None.
CONSENT CALENDAR:
8:05
Member Miller moved and Member Cohen seconded, to approve the following Consent
Calendar items:
ITEM
RECOMMENDED ACTION
1. Approval of Minutes of Special Joint Meeting andMinutes approved as
Regular Meeting of Monday, May 17, 1999 (AS) submitted.
2. Monthly Investment Report (MS) - File R-123 Accepted Monthly
Investment Report for
month ending April, 1999,
as presented.
AYES: MEMBERS: Cohen, Heller, Miller, & Chairman Boro
NOES: MEMBERS: None
ABSENT: MEMBERS: Member Phillips arrived at 7:40 PM, and was absent
during approval of the Consent Calendar.
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AGENCY CONSIDERATION:
3.
4.
SRRA MINUTES (Regular) 6/7/99 Page 2
DISCUSSION OF PRELIMINARY REDEVELOPMENT AGENCY TWO-YEAR BUDGET FOR
1999/2001 (MS)
- File R-103
Assistant City Manager Ken Nordhoff presented a summation of the Agency's
budget for the next two fiscal years, 1999/2001, which he explained
reflected a summary of work done by staff, input regarding goals and
objectives discussed during the budget hearing of June 1, 1999, and uses
for the bond proceeds. He stated the budget had been prepared under the
presumption that the bonds would go forward, all agencies involved would
approve the necessary documents, and that the proceeds would be available
by June 30th, noting he expected the bonds to be sold within the next
couple of weeks. Mr. Nordhoff stated the budget had been developed to
reflect what staff believed to be the estimated debt service on the bonds
for the next two years, as well as the continued debt service on the 1992
and 1995 bonds. He noted that together with Redevelopment Agency staff,
they had also identified related administrative costs from both Economic
Development and Public Works.
Mr. Nordhoff reported staff had estimated appropriations of $20.4 million
for the first fiscal year, of which $14.5 million was associated with
project -related expenses, and $5.6 million for the second year.
Chairman Boro invited comments from the public, and there were none.
Member Heller noted Mr. Nordhoff expected the bonds would be sold during
the next two weeks, and asked if that was a firm timeline? Mr. Nordhoff
stated all the agencies should have signed the necessary documents as
participatory agencies, and the bonds were scheduled to be sold on the 16th
of this month. He explained the Agency would take the AA -rated bonds to
the marketplace, obtain the best possible interest rates, and generate as
much money as possible for the Redevelopment Agency.
Mr. Nordhoff pointed out that pursuant to discussions during the budget
hearings last week, staff had made a minor adjustment regarding support for
the Chamber of Commerce, noting that had been increased by $2,500 during
the first year, and $5,000 in the second year of the budget.
Mr. Nordhoff stated staff would come back before the Agency on June 21,
1999, for formal approval of the budget for the next two years.
Member Heller moved and Member Miller seconded, to accept the report as
presented.
AYES: MEMBERS: Cohen, Heller, Miller, Phillips & Chairman Boro
NOES: MEMBERS: None
ABSENT: MEMBERS: None
CONSIDERATION OF REDEVELOPMENT AGENCY FUNDING OF CITY'S EXERCISE OF MARIN
HOUSING AUTHORITY'S OPTIONS TO PURCHASE TWO BELOW MARKET RATE UNITS AT THE
MARIN LAGOON CONDOMINIUM PROJECT: 33 MARINERS CIRCLE AND 29 MARINERS
CIRCLE (RA)
- File (SRCC) 229 x (SRCC) 9-3-16 x R-140 #8 x R-173
Senior Redevelopment Specialist Nancy Mackle explained this item would be
heard before the City Council; however, it was also being discussed by the
Redevelopment Agency, because one of the options being presented to the
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Council would require Agency funding.
Ms. Mackle explained there were several options available, noting one was
to not exercise the option. She acknowledged it was unfortunate to
continue to lose these units; however, staff was recommending this option
because of the unknown cost of repair. She pointed out that even if the
settlement money went toward the cost of repairs, there could be unforeseen
costs, which would then be assessed to the property owners, and the City
would be one of the property owners.
Ms. Mackle reported another option would be to provide downpayment
assistance to help someone else become an owner. She explained this could
be done with City funds, noting there were some repayment/recapture funds
that have been recouped from this project, and the City could work with the
Marin Housing Authority to try to get new buyers in. She pointed out there
was little time for the one unit which was coming up soon, although this
would be a possibility for the second unit, in terms of getting someone
qualified, and getting a loan in place before the expiration date. Ms.
Mackle stated staff did not recommend the City step into title; however, if
the City could find a buyer, and assist the buyer in the purchase, that
would be another option.
Ms. Mackle stated the third option would be for the City to purchase the
units outright, explaining Redevelopment Agency funds would have to be used
to do that; however, if the City was unable to sell them after the rehab,
there would have to be some kind of management in place, as the City and
Redevelopment Agency were not staffed to be able to deal with rentals. Ms.
Mackle reported staff inspected one of the units, noting that while they
did not look bad to the eye, as stated in the staff report, there were
problems. She noted the one unit staff inspected had looked fine; however,
the owner reported there was a leaky roof, which was leaking all the way to
the downstairs. Ms. Mackle stated there were serious issues, which were
condominium -wide, and staff recommended that the City not purchase the
units.
Chairman Boro recalled this issue had come up a couple of months ago during
a City Council meeting, where they had also discussed the issue of second
units. He felt it was a shame to lose two units in town; however, now that
staff had taken the time to look at the condition of the units, and the
liability associated with them, he was satisfied that it just would not be
a prudent move on the part of the City to acquire these units, although he
was sad to lose the housing stock.
Chairman Boro referred to staff's recommendation concerning the option of
downpayment assistance, noting Ms. Mackle had qualified that option by
stating the City might not recapture any of the second mortgage money, and
based on staff's examination of the project, and particularly these two
units, he believed the City's best effort would be to follow staff's
recommendation, and allow the units to go for sale.
Member Heller stated she appreciated the fact that Chairman Boro had tried
to fight for these two Below Market Rate units, noting she, too, was sad
the City would not be able to keep them for the public. She felt Chairman
Boro had done a very good job of bringing this issue to the Agency's and
Council's attention, and hoped he would continue to do so any time the City
was in danger of losing additional units.
Member Cohen noted that when this item had been addressed before the City
Council, they had touched upon the idea of bringing the issue to the
attention of one of the non-profit housing developers the City partners
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with, and asked if any of those conversations had taken place, and what
their assessment had been?
Ms. Mackle reported she had spoken with EAH (Ecumenical Association for
Housing), noting they own four other units in Marin Lagoon; however, they
had made it very clear that this was not working for them, noting they had
the same liability issues, and adding two units to their four would be a
real problem to manage.
Member Cohen moved and Member Phillips seconded, to approve staff's
recommendation, and decline to fund the purchase of the two available BMR
(Below Market Rate) units at Marin Lagoon.
AYES: MEMBERS: Cohen, Heller, Miller, Phillips & Chairman Boro
NOES: MEMBERS: None
ABSENT: MEMBERS: None
5. AGENCY MEMBER REPORTS:
None.
There being no further business to come before the Redevelopment Agency, the
meeting was adjourned at 7:50 PM.
JEANNE M. LEONCINI, Agency Secretary
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