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HomeMy WebLinkAboutSPJT Minutes 1997-05-05SRRA/SRCC (Spec. Jt.) 5/5/97 1 IN THE COUNCIL CHAMBER, CITY HALL OF SAN RAFAEL, MONDAY, MAY 5, 1997, AT 7:40 PM Special Joint Meeting: Present: Albert J. Boro, Mayor/Chairman San Rafael City Council/ Paul M. Cohen, Councilmember/Member San Rafael Redevelopment Agency Barbara Heller, Councilmember/Member Cyr Miller, Councilmember/Member Gary Phillips, Councilmember/Member Absent: None Others Present: Rod Gould, City Manager/Agency Director Lee Rosenthal, Agency Attorney Jeanne M. Leoncini, City Clerk/Agency Secretary RE: CONSIDERATION OF APPROVAL OF THE ISSUANCE BY THE SAN RAFAEL REDEVELOPMENT AGENCY OF A REVENUE NOTE IN AN AMOUNT NOT TO EXCEED $6,000,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF A MULTIFAMILY RENTAL HOUSING DEVELOPMENT ("LONE PALM COURT") (RA) SAN RAFAEL CITY COUNCIL - PUBLIC HEARING 1.CONSIDERATION OF ADOPTION OF RESOLUTION APPROVING THE BORROWING OF FUNDS BY THE SAN RAFAEL REDEVELOPMENT AGENCY FOR THE PURPOSE OF PROVIDING FINANCING FOR A MULTIFAMILY RENTAL HOUSING DEVELOPMENT TO BE DEVELOPED BY CONTINUUM HOUSING ASSOCIATES (LONE PALM COURT)- File 140 x 13-16 x (SRRA) R-372 X R-173 Economic Development Director Jake Ours reported the proposed financing was consistent with the Agency approved and executed Disposition and Development Agreement and the Ground Lease and Monitoring Agreement setting forth terms and conditions for the development of Lone Palm Court. He stated the financing was a construction and permanent loan from Bank of America in the form of a tax exempt revenue note, in an amount not to exceed $6,000,000, and was subject to certain IRS, State and California Debt Limit Allocation Committee terms and conditions. Mr. Ours explained the Agency would borrow funds from the Bank and loan those funds to Continuum Housing Associates to construct the project, and the Agency would assign repayment of the Agency Loan to the Bank for repayment of the Agency's loan. He reported Continuum Housing Associates and the Bank would then work together directly, with the Agency monitoring occupancy and status of repayment of the loans. Mr. Ours reported the Agency's obligations to the Bank were limited, special obligations, payable solely and only from the Developer's payment on the Agency loan. He noted the Agency would provide to the Bank a Deed of Trust on its fee interest in the Project Site, to secure repayment of the bank loan. He stated Agency Attorney Lee Rosenthal had reviewed the proposal and was in agreement with all the concepts. He noted this was an agreement that would be paid by the Developer, and the Agency would not be responsible for it. Councilmember Cohen noted that when this project had been discussed in the past, and the previous financing method, they had addressed its impact on the requirement to pay prevailing wages for the construction work. He noted he did not see any specific reference to that in these agreements, and asked if they also carried with them the requirement to pay prevailing wages? Mr. Ours stated it was known that was one of our requirements, and if it is not in the agreement, they will include it; however, he noted the Developer did know that this was one of our requirements. Mayor Boro opened the public hearing and invited public comment. As no one wished to speak, Mayor Boro closed the public hearing. Councilmember Cohen moved and Councilmember Miller seconded, to adopt the Resolution approving the borrowing of funds by the Agency for the purpose of providing financing for the proposed multifamily rental housing development, to be developed by Continuum Housing Associates. RESOLUTION NO. 9824 - RESOLUTION APPROVING THE BORROWING OF FUNDS BY THE SAN RAFAEL REDEVELOPMENT AGENCY FOR THE PURPOSE OF PROVIDING FINANCING FOR A MULTIFAMILY RENTAL HOUSING DEVELOPMENT TO BE DEVELOPED BY CONTINUUM HOUSING ASSOCIATES (LONE PALM COURT APARTMENTS). AYES: COUNCILMEMBERS:Cohen, Heller, Miller, Phillips & Mayor Boro SRRA/SRCC (Spec. Jt) 5/5/97 1 SRRA/SRCC (Spec. Jt.) 5/5/97 2 NOES: COUNCILMEMBERS:None ABSENT: COUNCILMEMBERS:None SAN RAFAEL REDEVELOPMENT AGENCY 1.CONSIDERATION OF ADOPTION OF RESOLUTION AUTHORIZING THE BORROWING AND LENDING OF FUNDS TO FINANCE A MULTIFAMILY RENTAL HOUSING PROJECT OF CONTINUUM HOUSING ASSOCIATES AND APPROVING RELATED DOCUMENTS AND ACTIONS (LONE PALM COURT) - File R-372 x R-173 x (SRCC) 140 x 13-16 Economic Development Director Ours reported this action before the Agency had to do with the loan agreements, construction, term of the agreements, and the regulatory agreements that ensure the affordability, and also addresses the Assignment Agreement, which assigns the debt to the Developer. Chairman Boro clarified that neither the City, nor the Agency or its members were liable, and only the Developer was liable, and Mr. Ours stated that was correct. Member Heller asked if the Agency had used this type of financing before, noting she read through the staff report, and it did not look familiar. Mr. Ours stated the Agency had not done this type of agreement before, noting in the past it had always been bond financing, and this was something different, pointing out it was a lot cheaper than bond financing, but with the same tax benefits. Ms. Heller stated it appeared to be very clean and easy, and the process was wonderful. Member Heller moved and Member Phillips seconded, to adopt the Resolution authorizing the borrowing and lending of funds to finance a multifamily rental housing project of Continuum Housing Associates and approving related documents and actions. RESOLUTION NO. 97-15 - RESOLUTION AUTHORIZING THE BORROWING AND LENDING OF FUNDS TO FINANCE A MULTIFAMILY RENTAL HOUSING PROJECT OF CONTINUUM HOUSING ASSOCIATES AND APPROVING RELATED DOCUMENTS AND ACTIONS (LONE PALM COURT APARTMENTS). AYES: MEMBERS: Cohen, Heller, Miller, Phillips & Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: None There being no further business, the meeting was adjourned at 8:05 PM. 1997 JEANNE M. LEONCINI, City Clerk/Agency Secretary APPROVED THIS DAY OF , SAN RAFAEL REDEVELOPMENT AGENCY MAYOR OF THE CITY OF SAN RAFAEL/CHAIRMAN, SRRA/SRCC (Spec. Jt) 5/5/97 2