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Home My WebLink AboutRA Minutes 2001-11-05SRRA MINUTES (Regular) 11/5/2001 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, NOVEMBER 5, 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 Paul M. Cohen, Member Barbara Heller, Member Gary O. Phillips, Member Absent: None ORAL COMMUNICATIONS OF AN URGENCY NATURE: 7:45 PM None CONSENT CALENDAR: Member Miller moved and Member Phillips seconded, to approve the following Consent Calendar items: ITEM RECOMMENDED ACTION Approval of Minutes of Regular Meeting of Monday, Approved as submitted. October 15, 2001 (AS) 2. Monthly Investment Report for Month Ending September, Accepted monthly investment report 2001 (MS) — File R-123 for the month ending September, 2001, as presented. AYES: MEMBERS: Cohen, Heller, Miller, Phillips and Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: None ABSTAINING: MEMBERS: Phillips (from item 1 only, due to absence from meeting.) AGENCY CONSIDERATION: 3. RESOLUTION OF THE SAN RAFAEL REDEVELOPMENT AGENCY AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF REVENUE BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION AND REHABILITATION OF SAN RAFAEL COMMONS, A MULTIFAMILY HOUSING RESIDENTIAL FACILITY, AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE, A MORTGAGE LOAN AGREEMENT, AN INDENTURE OF TRUST, A LOAN AGREEMENT, A REGULATORY AGREEMENT, AN OFFICIAL STATEMENT, AND A BOND PURCHASE AGREEMENT, AND AUTHORIZING THE EXECUTION AND DELIVERY OF AND APPROVING OTHER RELATED DOCUMENTS AND APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH (302 FOURTH STREET - SAN RAFAEL COMMONS) (RA) — FILE R-442 x R-173 Economic Development Director Nancy Mackle announced there were two affordable housing programs to be presented this evening and as Stephanie Lovette, Senior Economic Development Specialist, had spent a considerable amount of time over the past year putting these together, she would present both reports. SRRA MINUTES (Regular) 11/5/2001 Page 1 SRRA MINUTES (Regular) 11/5/2001 Page 2 Stephanie Lovette stated the documentation related to the Agency's issuance of tax-exempt bonds for San Rafael Commons, an 83 -unit affordable senior project located on Fourth Street, across from San Rafael High School. She indicated that the project was constructed in 1982 and is one of the crown jewels in the City's affordable housing projects. Ms. Lovette reported that, unfortunately, San Rafael Commons is also classified as a federally at -risk project; the affordability covenants expired in the year 2000 and staff was unsure as to whether these units could be maintained affordable; however, luckily, the owner, Pacific Union, has chosen to sell its affordable projects in both San Francisco and San Rafael to BRIDGE Housing. Ms. Lovette reported that the acquisition will ensure that the majority of the units will remain affordable to households with incomes at or below $32,000 and $38,000 respectively; therefore, the majority of units will remain affordable. The remaining units will continue to be affordable as long as the Federal Section 8 program is available. Ms. Lovette indicated that those who had viewed the project would confirm its good condition and the Agency will be issuing a not -to -exceed amount of $6.5 -million in tax exempt conduit bonds on behalf of a limited partnership of (BRIDGE), Sanraf Associates. She reported that Sanraf is fully responsible for the payments; the Agency, City and the State of California are clearly not responsible for the payments in the bond documents, and the bondholders are abundantly aware of this. Ms. Lovette indicated that the Agency's issuance is required to enable BRIDGE to obtain $1.7 -million from a tax credit investor. The Agency is not providing any financial assistance, nor is any other public agency, on this particular acquisition. Mr. Lovette announced that Lydia Tan, Executive Vice -President, BRIDGE Housing, and Tom Downey, Bond Counsel, were both present and could answer questions; Ms. Tan could also answer questions on other BRIDGE acquisitions. Member Cohen inquired if this would in any way impact the City's ability to issue bonds for any other City or Redevelopment Agency projects. Executive Director Gould confirmed it does not count against the City's debt limit, as it is a Redevelopment Agency bond. Chairman Boro stated there had been several of these in the past which were beneficial to the City, indicating that this particular housing project is truly a hidden jewel in the City of San Rafael, with a density of 83 units to the acre. He noted to perpetuate and maintain this project affordable was great. Member Cohen moved and Member Phillips seconded, to adopt the Resolution RESOLUTION NO. 2001-30 — RESOLUTION AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF REVENUE BONDS FOR THE PURPOSE OF FINANCING THE ACQUISITION AND REHABILITATION OF SAN RAFAEL COMMONS, A MULTIFAMILY HOUSING RESIDENTIAL FACILITY, AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE, A MORTGAGE LOAN AGREEMENT, AN INDENTURE OF TRUST, A LOAN AGREEMENT, A REGULATORY AGREEMENT, AN OFFICIAL STATEMENT, AND A BOND PURCHASE AGREEMENT, AND AUTHORIZING THE EXECUTION AND DELIVERY OF AND APPROVING OTHER RELATED DOCUMENTS AND APPROVING OTHER RELATED ACTIONS IN CONNECTION THEREWITH (SAN RAFAEL COMMONS — 302 FOURTH STREET) SRRA MINUTES (Regular) 11/5/2001 Page 2 SRRA MINUTES (Regular) 11/5/2001 Page 3 AYES: MEMBERS: Cohen, Heller, Miller, Phillips and Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: None 4. RESOLUTION RESCINDING RESOLUTION 2000-10 AND APPROVING EXECUTION OF AN OWNER PARTICIPATION AND REHABILITATION LOAN AGREEMENT WITH HARBOR VIEW LLC, GABRIELLA RICCI, MANAGING PARTNER, TO LOAN UP TO $250,000 FOR REHABILITATION OF HOUSING UNITS AT 509 CANAL STREET WHICH WILL BE MADE AFFORDABLE PURSUANT TO THE AGREEMENT AND RELATED DOCUMENTS (CANAL AFFORDABLE. SAFE AND HEALTHY HOUSING PROGRAM) ("C.A.S.H.") (RA) — FILE R-420 x R-173 x (SRCC) 13-16 Stephanie Lovette, Senior Economic Development Specialist, stated staff was delighted to present the first loan in the Canal Affordable Safe and Healthy Program (C.A.S.H.). She indicated the program was instituted in 1999 to assist private property owners in rehabilitating their properties, in exchange for long-term affordability covenants. Ms. Lovette reported that staff is recommending a $250,000 loan to rehabilitate 509 Canal Street, a 28 -unit apartment building, of which 13 units would be affordable to very low and low income persons for a minimum of 20 years, and should the loan stay in place for 30 years, it is fully forgiven and the affordability covenants stay in place for 30 years. In addition to the affordability covenants, Ms. Lovette reported there are also operating and maintenance standards to be imposed by the Agency on the total project. She indicated that the property owner anticipates conducting a variety of rehabilitation issues, including security, exterior painting and replacement of some electrical and plumbing systems within the units. Ms. Lovette indicated that the property owner is being permitted to count Section 8 units towards the thirteen affordable units, to ensure those Section 8 tenants already in residence are enabled to remain. The reason for rescinding the original Resolution for $200,000 approved a year ago, stated Ms. Lovette, is that given the energy crisis, the property owner was concerned and believed the extra $50,000 was necessary. Staff, having evaluated the property owner's proposed usage for this amount, is confident it makes sense. Chairman Boro confirmed with Ms. Lovette that the remaining fifteen units will not have restrictions by the Agency; however, Ms. Lovette indicated that Ms. Ricci maintains the rents fairly low and it is anticipated that by making funds available for rehabilitation, it will not be necessary to raise rents to carry out this rehabilitation on the other units. Member Cohen expressed appreciation for the work of staff and the property owner in making this project viable and believed it was incumbent on the Agency to support this evening's action. Member Phillips moved and Member Cohen seconded, to adopt the Resolution RESOLUTION NO. 2001-31 — RESOLUTION RESCINDING RESOLUTION 2000-10 AND APPROVING EXECUTION OF AN OWNER PARTICIPATION AND REHABILITATION LOAN AGREEMENT WITH HARBOR VIEW LLC, GABRIELLA RICCI, MANAGING PARTNER, TO LOAN UP TO $250,000 FOR REHABILITATION OF HOUSING UNITS AT 509 CANAL STREET WHICH WILL BE MADE AFFORDABLE PURSUANT TO THE AGREEMENT AND RELATED DOCUMENTS (CANAL AFFORDABLE SAFE AND HEALTHY HOUSING PROGRAM) ("C.A.S.H.") SRRA MINUTES (Regular) 11/5/2001 Page 3 SRRA MINUTES (Regular) 11/5/2001 Page 4 AYES: MEMBERS: Cohen, Heller, Miller, Phillips and Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: None AGENCY MEMBER REPORTS: 5. None There being no further business, the San Rafael Redevelopment Agency meeting was adjourned at: 7:55 PM. JEANNE M. LEONCINI, Agency Secretary SRRA MINUTES (Regular) 11/5/2001 Page 4