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HomeMy WebLinkAboutRA Minutes 2000-09-05SRRA MINUTES (Regular) 9/5/2000 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, TUESDAY, SEPTEMBER 5, 2000 AT 7:30 PM Regular Meeting: San Rafael Redevelopment Agency Present: Albert J. Boro, Chairman Paul M. Cohen, Member Cyr N. Miller, Member Gary O. Phillips, Member Absent: Barbara Heller, Vice -Chair Also Present: Rod Gould, Executive Director Gus Guinan, Assistant Agency Attorney Jeanne M. Leoncini, Agency Secretary ORAL COMMUNICATIONS OF AN URGENCY NATURE: 7:50 PM None. CONSENT CALENDAR: Member Phillips moved and Member Cohen seconded, to approve the following Consent Calendar items: ITEM RECOMMENDED ACTION 1. Approval of Minutes of Regular Meeting of Monday, Approved as submitted. August 21, 2000 (AS) 2. Acceptance of Statement of Disclosure for Dirck Accepted Report. Brinckerhoff, Member, Citizens Advisory Committee on Redevelopment (AS) — File R-140 IVB 3. Monthly Investment Report for Month Ending July, 2000 Accepted Monthly Investment Report (MS) — File R-123 for month ending July, 2000, as presented. AYES: MEMBERS: Cohen, Miller, Phillips Et Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Heller ABSTAINING: MEMBERS: Cohen (from Item 1 only due to absence from meetin AGENCY CONSIDERATION: 4. RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO FINANCE THE ACQUISITION AND REHABILITATION OF A MULTIFAMILY RENTAL HOUSING FACILITY LOCATED AT 162-172 BELVEDERE STREET, AND APPROVING RELATED DOCUMENTS AND ACTIONS (RE: CAHIP) (RA) — File R-434 x R-173 Before introducing Senior Development Specialist Stephanie Lovette to present the report, Economic Development Director Nancy Mackie noted Staff was able to use Agency resources to make this project come to fruition in the form of a subsidy and in the form of helping make the bonds come together. Ms. Mackie also noted that BRIDGE Housing Corporation representatives, bond counsel, and the City's housing consultant were on hand to answer the Agency's questions. SRRA MINUTES (Regular) 9/5/2000 Page 1 SRRA MINUTES (Regular) 9/5/2000 Page 2 Ms. Lovette recalled for the Agency that this program was begun approximately two years ago, at the Agency's direction, in order to deal with the following three issues in the Canal: 1) Maintenance of affordable rental housing to the low-income community; 2) Rehabilitation for both the residents of the apartments and of the neighborhood; 3) Maintenance and experienced management of rental units in the Canal. Ms. Lovette stated Staff is very excited to report that this project will be able to achieve all three of the above goals. She noted that the current rent rates of the units, which range between $935 and $1,300 per month will be reduced to $842 to $960, depending on the tenants' income. BRIDGE has budgeted approximately $1,200,000 to conduct major rehabilitation of the units, which will include new landscaping, roofing, and painting. As a result of BRIDGE's efforts on the project, they have applied for and received $1,500,000 in funding from the Marin Community Foundation. In addition, BRIDGE received a tax credit allocation of $3,960,000 and has secured a loan commitment from West America Bank for construction and acquisition. BRIDGE also got takeout financing from the California Housing Finance Authority. Ms. Lovette extended a personal thank you to BRIDGE's Staff for their outstanding job on the program, pointing out that each application was fairly large and required a considerable amount of time and attention. Ms. Lovette requested the Agency approve the issuance of the bonds this evening. Staff anticipates the bond issue will close on October 17th, and the building will be in BRIDGE's hands on October 25th BRIDGE will be meeting with the tenants in the next two weeks in order to introduce themselves and their on -sight manager, an experienced and bilingual individual. BRIDGE will also, at that time, be addressing some of the relocation issues with the tenants. Ms. Lovette noted for the Agency that the documents before them this evening authorize the Agency to issue tax-exempt bonds in the amount of approximately $3,600,000. The structure of the financing is conduit -type financing, very similar to the Lone Palm project. The Agency has no responsibility to pay the bonds; that issue is between BRIDGE and West America. At the end of the rehabilitation period, the West America Loan will be taken out, and permanent financing will be put in place from the California Housing Finance Authority, as well as investor equity from tax credits. Member Phillips asked Ms. Lovette to elaborate on the language listed in the section of the contract concerning "Background", which reads as follows: "...overcrowded conditions will be eliminated". Specifically, Member Phillips asked about the process for relocation of those who will no longer reside in the units. Ms. Lovette noted that one of the things Staff has been working on diligently is the relocation standards. She recalled for the Agency that the County had a relocation standard of 2 people per bedroom, plus one person in the living room. Per regulations, if federal funds are used in the County, any families exceeding that standard must be relocated. At Member Miller's urging, however, the County Board of Supervisors revisited the policy and determined it did not make sense in today's market. Consequently, a 2 -plus -2 standard is now being used. Under that new standard, Staff anticipates having to relocate approximately eight families. Some of those families will have to be relocated due to overcrowding. The others may need to be relocated because they do not meet the low-income family guidelines. Those families that will have to be permanently relocated will be paid relocation assistance, rent differentials, and so forth, based on federal law. SRRA MINUTES (Regular) 9/5/2000 Page 2 SRRA MINUTES (Regular) 9/5/2000 Page 3 Ms. Mackie added that BRIDGE has hired a bilingual relocation specialist to assist the families in their relocation. Member Phillips asked Staff if they were confident that those families who are being relocated are being assisted to the greatest extent possible. Ms. Lovette affirmed, adding that federal law requires that families cannot be moved until an alternate residence has been identified for them. Further, the families will receive relocation payments, as well as a rent differential of 42 months. The differential is based on the rent they are paying and the rent they can afford. The families are entitled to use the full amount of the payments for a downpayment, if necessary. Ms. Lovette noted that Staff will be circulating a letter after this meeting to all the service organizations and the Marin County Housing Authority which will detail the relocation program and a program update. Member Cohen asked if he was correct in his understanding that the total cost of the project is $6,500,000. Ms. Lovette clarified that the West America loan will be used for both acquisition and rehab. Member Cohen then inquired as to whether prevailing wages will be paid to workers involved in the rehab. Ms. Lovette recommended Lydia Tan, Vice -President of BRIDGE, address that issue. Ms. Tan explained that prevailing wages are required as part of their work, both with the Agency and the County. She noted BRIDGE has approximately a one -and -a -half million -dollar construction budget, which equates to $70,000 per unit. Member Cohen thanked Ms. Tan for the clarification, noting that point was not referenced in the documents. Ms. Lovette noted that Staff would likely be bringing the Agency a $750,000 loan agreement for review at their October 2nd meeting, which will address prevailing wages. Member Cohen asked what the anticipated time line is with regard to the rehab work. Ms. Tan stated BRIDGE anticipates rehab will begin towards the end of the year. Ms. Lovette added that phasing of the construction is also being explored in an effort to minimize the discomfort of the tenants. Member Miller asked if the contractor could be encouraged to employ from the neighborhood itself. Ms. Tan responded that can be done, noting that BRIDGE has just gone through the contractor selection process and has made it very clear to the contractor that being sensitive to this very close-knit community's needs is very important. She added her suspicion is that there will be few new hires, because the work will be conducted on a rotating basis. However, to the extent that there are new hires, they will make every attempt to fulfill that goal. Ms. Tan thanked the Agency and Staff for providing a tremendous amount of help and support through the entire process. On behalf of the Agency, Chairman Boro thanked BRIDGE and Agency Staff for their tireless efforts toward a most valuable program. Member Miller moved and Member Cohen seconded, that the Agency adopt the Resolution. RESOLUTION NO. 2000-27 - RESOLUTION AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS TO FINANCE THE ACQUISITION AND REHABILITATION OF A MULTIFAMILY RENTAL HOUSING FACILITY LOCATED AT 162-172 BELVEDERE STREET, AND APPROVING RELATED DOCUMENTS AND ACTIONS SRRA MINUTES (Regular) 9/5/2000 Page 3 SRRA MINUTES (Regular) 9/5/2000 Page 4 Before voting on the motion, Member Cohen brought to the attention of the Agency that while the timing may not be appropriate because the program is not yet in place, this would be the ideal project for encouraging local hires. He recommended that when the program is, in fact, in place, it should include that contractors would be required to hire some individuals from the community, The Agency concurred, AYES: MEMBERS: Cohen, Miller, Phillips Et Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Heller There being no further business, the San Rafael Redevelopment Agency meeting was adjourned at 8:04 PM, JEANNE M. LEONCINI, Agency Secretary SRRA MINUTES (Regular) 9/5/2000 Page 4