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Home My WebLink AboutRA Minutes 2001-08-06SRRA MINUTES (Regular) 08/06/2001 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, AUGUST 6, 2001 AT 7:30 PM Regular Meeting: San Rafael Redevelopment Agency Also Present: Rod Gould, Executive Director Gary T. Ragghianti, Agency Attorney Jeanne M. Leoncini, Agency Secretary Present: Albert J. Boro, Chairman Cyr N. Miller, Vice -Chair Barbara Heller, Member Gary 0. Phillips, Member Absent: Paul M. Cohen, Member ORAL COMMUNICATIONS OF AN URGENCY NATURE: None CONSENT CALENDAR: 7:50 PM Member Phillips moved and Member Miller seconded, to approve the following Consent Calendar items: ITEM RECOMMENDED ACTION Approval of Minutes of Special and Regular Meetings of Approved as submitted. Monday, July 16, 2001 (AS) Page 1 2. Acceptance of Statement of Disclosure from Rick Keefer, Accepted Statement of Disclosure. Newly -appointed Member to the Citizens Advisory Committee on Redevelopment (AS) — File (SRCC) 9-4-3 x R-140 IVB 3. Monthly Investment Report for Month Ending June 2001 Accepted Monthly Investment Report (MS) — File R-123 for Month Ending June 2001, as presented. 4. Resolution Amending Resolution No. 2000-20 Pertaining to Compensation and Working Conditions of the Economic Development Director and Events Coordinator (MS) — File R-58 x (SRCC) 7-3 RESOLUTION NO. 2001-24— RESOLUTION AMENDING RESOLUTION NO. 2000-20 PERTAINING TO THE SALARY RANGE FOR THE ECONOMIC DEVELOPMENT DIRECTOR AND THE EVENTS COORDINATOR (ONE-YEAR AGREEMENT FROM JULY 1, 2001 THROUGH JUNE 30, 2002) SRRA MINUTES (Regular) 08/06/2001 Page 1 CONSENT CALENDAR (Cont.): 5. Resolution of the San Rafael Redevelopment Agency Approving a Loan of Redevelopment Low and Moderate Income Housing Funds by the Agency to Alto Station, Inc. in an Amount not to Exceed $1,200,000 and Execution of Loan Documents in Connection Therewith and Authorizing Execution of a Subordination Agreement and Making Subordination Findings Pursuant to the California Redevelopment Law in Connection with Loans by the Agency to Alto Station, Inc. and Making Findings and Approvals Pursuant to the California Environmental Quality Act, 55 Fairfax Street ("CAHIP") (RA) — File R-438 x R-173 SRRA MINUTES (Regular) 08/06/2001 Page 2 RECOMMENDED ACTION: RESOLUTION NO. 2001-25— RESOLUTION APPROVING A LOAN OF REDEVELOPMENT LOW AND MODERATE INCOME HOUSING FUNDS BY THE AGENCY TO ALTO STATION, INC. IN AN AMOUNT NOT TO EXCEED $1,200,000 AND EXECUTION OF LOAN DOCUMENTS IN CONNECTION THEREWITH AND AUTHORIZING EXECUTION OF A SUBORDINATION AGREEMENT AND MAKING SUBORDINATION FINDINGS PURSUANT TO THE CALIFORNIA REDEVELOPMENT LAW IN CONNECTION WITH LOANS BY THE AGENCY TO ALTO STATION, INC. AND MAKING FINDINGS AND APPROVALS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT ("CAHIP") (55 Fairfax Street) AYES: MEMBERS: Heller, Miller, Phillips and Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Cohen AGENCY CONSIDERATION: 6. RESOLUTION AUTHORIZING THE ISSUANCE. SALE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $3,500,000 TO ASSIST ALTO STATION, INC., WITH THE FINANCING OF THE ACQUISITION AND REHABILITATION OF FAIRFAX STREET APARTMENTS, AND APPROVING RELATED DOCUMENTS AND AUTHORIZING RELATED ACTIONS (55 FAIRFAX STREET) ("CAHIP") (RA) — FILE R-438 x R-173 Stephanie Lovette, Senior Development Specialist, stated this was the first of several items tonight regarding 55 Fairfax Street. She recalled that 55 Fairfax is the second acquisition under the Canal Housing Improvement Program which was established several years ago to create a non-profit housing corporation, specifically BRIDGE Housing Corporation, to acquire properties in the Canal District of San Rafael in order to maintain these properties affordable to low income people for a minimum of 40 years, and to provide excellent property management. Ms. Lovette reported this second acquisition comprises 40 units, with the Agency contributing approximately $1.2 -million to the project (in the region of $30,000 per unit). In addition, the Marin Community Foundation is making a contribution, together with the Cowell Foundation and Federal Home Funds. The $1.2 -million contribution by the Agency for this program is in addition to the $750,000 which the Agency provided for the acquisition of the 26 -unit Belvedere Place apartments last year. The financing is similar, the one exception being this building will not have tax credits; therefore, the Agency's contribution was required to be somewhat higher. Ms. Lovette stated this item was on this evening's City Council Meeting Agenda for Public Hearing. SRRA MINUTES (Regular) 08/06/2001 Page 2 SRRA MINUTES (Regular) 08/06/2001 Page 3 For the benefit of the audience, Chairman Boro requested Ms. Lovette to explain the source of the Redevelopment funds and how it applies to this particular project, and also to clarify the City's role and the ultimate responsibility for payment. Ms. Lovette stated that Alto Station is a limited partnership established by BRIDGE Housing, which will acquire the property and hold it. BRIDGE Property Management will be the manager of the units. She reported that the Agency will issue tax-exempt bonds on behalf of BRIDGE and BRIDGE/Alto Station is responsible for payment of the bonds. There is no obligation on the City or the Redevelopment Agency and this is very clearly stated in the bond documents. Any default is the responsibility of BRIDGE Housing. With respect to the source of funding the Agency is making and how it works, Ms. Lovette stated that under State law, 20% of the funds received by the Redevelopment Agency must go to providing affordable low and moderate housing; therefore, these funds are being provided from the 20% so-called Set Aside funds, which are in addition to the funds received for economic development. This has been done in funding similar projects and non -profits, to assist them in acquiring buildings and maintaining the rents affordable. On the new Corporation, Member Heller inquired if this was established merely for this one holding, or if it had been used previously. Ms. Lovette stated it had been used before, albeit not with projects in San Rafael, rather in other projects in the Bay Area. In response to Member Heller's inquiry as to whether this was advantageous to them, Ms. Lovette explained it was a 501 C3 and Lisa Grady from BRIDGE was present and would address this question. Lisa Grady, BRIDGE Housing, stated BRIDGE sets up separate non -profits to act as the Borrowers and Owners of these properties; thus, spreading their liability across the various non -profits, so that in the event of some ultimate liability affecting multiple projects, BRIDGE would not be placed in financial jeopardy as an organization. She stated that, essentially, it is a means of protecting the parent company. Ms. Grady stated this is the second project in the Canal Area and her organization had been diligently working on Belvedere, which is a 26 -unit project in the Canal, with Fairfax being a 40 -unit project. She stated they were endeavoring to create their rehabilitation plans on Belvedere and hoped to commence the rehabilitation of that project soon. It is anticipated holding an opening celebration to recognize the contribution the City has made to these two projects. Ms. Grady stated they were delighted to be back in contract on the second of what is hoped to be many other projects to be acquired and converted into affordable housing within the Canal Area and San Rafael, which could not be achieved without the participation of the City of San Rafael. Senior Development Specialist Stephanie Lovette stated she had omitted to mention the current rent structure which is $900 - $1,200 for a I -bedroom unit which will reduce to $700, as has already occurred at Belvedere Place. As soon as BRIDGE acquires the units and verifies the tenants' incomes, the rent reduces, so that the tenant is paying no more than 30% of their income towards rent, and this will be maintained for the next 40 years. Responding to a question from the audience on qualifying for one of the units, Ms. Lovette stated there are existing tenants in all of the properties, who have the right to remain there, provided they meet the income requirements. As vacancies arise, BRIDGE will be working with the Housing Authority for specifically Section 8 and other low income tenants. Chairman Boro inquired if there was a list available for placement of names for this housing. Ms. Lovette responded affirmatively; however, she emphasized that first priority would be given to those qualified for Section 8. She suggested telephoning the Redevelopment Agency, at which time she could provide the relevant information. SRRA MINUTES (Regular) 08/06/2001 Page 3 SRRA MINUTES (Regular) 08/06/2001 Page 4 Member Miller moved and Member Phillips seconded, to adopt the Resolution. RESOLUTION NO. 2001-26 — RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $3,500,000 TO ASSIST ALTO STATION, INC. WITH THE FINANCING OF THE ACQUISITION AND REHABILITATION OF FAIRFAX STREET APARTMENTS, AND APPROVING RELATED DOCUMENTS AND AUTHORIZING RELATED ACTIONS (55 Fairfax Street) ("CAHIP") AYES: MEMBERS: Heller, Miller, Phillips and Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Cohen AGENCY MEMBER REPORTS: None. There being no further business, the San Rafael Redevelopment Agency meeting was adjourned at 8:00 PM. JEANNE M. LEONCINI, Agency Secretary SRRA MINUTES (Regular) 08/06/2001 Page 4