HomeMy WebLinkAboutSPJT Minutes 1997-06-03SRRA/SRCC (Spec. Jt.) 6/30/97 1
IN THE COUNCIL CHAMBER, CITY HALL OF SAN RAFAEL, MONDAY, JUNE 30, 1997, AT 7:30
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).
SRRA/SRCC (Spec. Jt) 6/30/97 1
SRRA/SRCC (Spec. Jt.) 6/30/97 2
AYES: COUNCILMEMBERS:Cohen, Heller, Miller, Phillips & Mayor Boro
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.
09111
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) 6/30/97 2