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HomeMy WebLinkAboutRA Minutes 2001-05-21SRRA MINUTES (Regular) 05/21/2001 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, MAY 21, 2001 AT 7:30 PM Regular Meeting: San Rafael Redevelopment Agency Present: Albert J. Boro, Chairman Cyr N. Miller, Vice -Chair Barbara Heller, Member Gary O. Phillips, Member Absent: Paul M. Cohen, Member Also Present: Rod Gould, Executive Director Gus Guinan, Assistant Agency Attorney Esther C. Beirne, Deputy Agency Secretary ORAL COMMUNICATIONS OF AN URGENCY NATURE: 7:50 PM None. CONSENT CALENDAR: Member Phillips moved and Member Miller seconded, to approve the following Consent Calendar items: ITEM RECOMMENDED ACTION Approval of Minutes of Regular Meeting of Monday, May 7, Approved as submitted. 2001 2. Unapproved Minutes of Citizens Advisory Committee Meeting of Thursday, May 3, 2001 (RA) — File R-140 IVB 3. Resolution Designating the Agency as the Responsible Agency and Designating the City as the Lead Agency for the Environmental Review Process for the Adoption of an Amended and Restated Central San Rafael Redevelopment Plan (RA) —File R-140 XIX 4. Resolution Authorizing Staff to Proceed with the Process for Adoption of an Amended and Restated Central San Rafael Redevelopment Plan and Directing Actions Related to the Adoption Process (RA) - File R-140 XIX Accepted report. Page 1 RESOLUTION NO. 2001-14— RESOLUTION DESIGNATING THE AGENCY AS THE RESPONSIBLE AGENCY AND DESIGNATING THE CITY AS THE LEAD AGENCY FOR THE ENVIRONMENTAL REVIEW PROCESS FOR THE ADOPTION OF THE THIRD AMENDED AND RESTATED CENTRAL SAN RAFAEL REDEVELOPMENT PLAN RESOLUTION NO. 2001-15— RESOLUTION AUTHORIZING STAFF TO PROCEED WITH THE PROCESS FOR ADOPTION OF THE THIRD AMENDED AND RESTATED CENTRAL SAN RAFAEL REDEVELOPMENT PLAN AND DIRECTING ACTIONS RELATED TO THE ADOPTION PROCESS SRRA MINUTES (Regular) 05/21/2001 Page 1 5. Resolution Authorizing Economic Development Director to Amend the Existing Contract with Richard Bornholdt Consulting Group through June 30, 2002 for a Fee not to Exceed $40,000 (RA) — File R-173 x (SRCC) 187 AYES: MEMBERS: NOES: MEMBERS: ABSENT: MEMBERS: ABSTAINING: MEMBERS: AGENCY CONSIDERATION: SRRA MINUTES (Regular) 05/21/2001 Page 2 RESOLUTION NO. 2001-16 — RESOLUTION AUTHORIZING ECONOMIC DEVELOPMENT DIRECTOR TO EXECUTE AN AMENDMENT TO THE EXISTING CONTRACT WITH RICHARD BORNHOLDT CONSULTING GROUP THROUGH JUNE 30, 2002 FOR A FEE NOT TO EXCEED $40,000 Heller, Miller, Phillips and Chairman Boro None Cohen Heller (from item #1 only, due to absence from meeting.) 6. RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE CERTAIN EXPENDITURES FROM PROCEEDS OF TAX EXEMPT OBLIGATIONS AND DIRECTING CERTAIN ACTIONS RELATED TO THE ACQUISITION AND REHABILITATION OF SAN RAFAEL COMMONS (302 FOURTH STREET) (RA) — FILE R-442 x R-173 Stephanie Lovette, Senior Development Specialist, stated there were two projects before the Agency this evening, both with BRIDGE Housing; the first was the acquisition of San Rafael Commons by BRIDGE. San Rafael Commons is an 83 unit affordable housing project located behind Whole Foods across from San Rafael High School. It was built with HUD money in 1978 and the affordability restrictions expired in August of 2000. Ms. Lovette reported this is an at risk project and has been a concern of both City and County staff in terms of the fact that it could go to market rate; however, luckily BRIDGE is stepping in to acquire it. She noted it is an excellent project, mostly because no Agency assistance is needed. All that is required is to have tax exempt multi -family housing bonds issued, as the Agency has done for Lone Palm and the Belvedere Project. The total maximum bond amount is $6.5 -million and they will be going for an allocation of bonds in June. Ms. Lovette reported that Carol Gallante, President of BRIDGE was present, together with Robert Stephenson, who is working with her on this project, and she would be happy to answer questions. Chairman Boro requested clarification on some wording in the staff report: • Page 2 — IRS regulations require the Agency to officially declare an intention to reimburse for expenses incurred prior to the issuance of bonds; • Page 2 — The bond documents clearly indicate to all potential investors that the bonds are solely supported by revenue from the project and the Agency and City are not responsible for the debt service payments. Ms. Lovette confirmed both statements are correct in that the Agency is issuing bonds on behalf of BRIDGE, referred to as conduit financing; however, BRIDGE is solely responsible for payment of the debt service payments. Regarding the IRS regulations, Ms. Lovette stated that because it is tax exempt bonds it is under IRS regulations, and the action being taken this evening is to allow BRIDGE to be reimbursed for some of their expenses when the bonds are issued; therefore, if they are incurring expenses presently, the bond proceeds can be used for reimbursement. She stated there was a similar item on the City Council Agenda. SRRA MINUTES (Regular) 05/21/2001 Page 2 SRRA MINUTES (Regular) 05/21/2001 Page 3 Before calling for the motion, Chairman Boro stated he believed San Rafael Commons is a premier demonstration of how affordable housing can work; the density in the site is approximately 80 to the acre and yet most people are unaware of its presence. It has been there for many years and is a great facility. Chairman Boro stated he and the Agency were very pleased it was being continued. Member Miller moved and Member Phillips seconded, to adopt the Resolution. RESOLUTION NO. 2001-17 — RESOLUTION OF THE SAN RAFAEL REDEVELOPMENT AGENCY DECLARING ITS INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF TAX-EXEMPT OBLIGATIONS AND DIRECTING CERTAIN ACTIONS RELATED TO THE ACQUISITION AND REHABILITATION OF SAN RAFAEL COMMONS (302 FOURTH STREET) AYES: MEMBERS: Heller, Miller, Phillips and Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Cohen 7. RESOLUTION AUTHORIZING ECONOMIC DEVELOPMENT DIRECTOR TO EXECUTE A $980,000 GRANT AGREEMENT WITH BRIDGE HOUSING FOR THE ACQUISITION AND REHABILITATION OF 55 FAIRFAX STREET ("CAHIP") AND APPROVAL OF RELATED DOCUMENTS (RA) — FILE R-438 x R-173 Stephanie Lovette, Senior Development Specialist, introduced the second item with BRIDGE Housing and stated Lisa Grady, the Project Manager, was present, together with other representatives from BRIDGE. Ms. Lovette reported that BRIDGE is in contract for a 40 -unit apartment building located at 55 Fairfax. This is a very nice building with no evidence of overcrowding. One meeting has taken place with the tenants who are very excited concerning BRIDGE acquiring the building and giving them some peace of mind in terms of their rents. She stated it is a very large deal for the Agency, approximately $139,000 per unit in acquisition and rehabilitation costs. $980,000 is being requested from the Agency which has already approved a $20,000 grant, and at the City Council level there is a request for a grant of $200,000 from In Lieu Fees. The Agency is awaiting funding from other sources and Ms. Lovette anticipated that the project, should it go forward, will be closing in August or September. There will be another 40 units, over and above the 26 which BRIDGE has already done at 162-172 Belvedere. Member Heller inquired if Marin Community Foundation was assisting on this project. Ms. Lovette stated they had been approached with a request for $1,000,000; however, they had not made the commitment for the funding as yet. Staff is working closely with Chantel Walker, the Project Manager assigned and while it has been a good working relationship, they have not funded so far. Member Heller inquired as to when they would make their decision. Ms. Lovette stated that conversations today indicate they will not be bringing it to the Board in June; however, the staff will be making some initial recommendations and anticipate going before their Board in July. Ms. Lovette stated that as with other Agency projects, it is not funded unless the project actually closes; therefore, the money is put in escrow and is not at risk. Chairman Boro inquired if the $139,000 includes relocation costs. Ms. Lovette stated there is no relocation anticipated on this project. Chairman Boro inquired how this compares to the other building which was purchased, in relation to costs per unit, including relocation. Ms. Lovette stated it was SRRA MINUTES (Regular) 05/21/2001 Page 3 SRRA MINUTES (Regular) 05/21/2001 Page 4 somewhat better; the rehabilitation costs were somewhat less, with no relocation costs. There is a difference in that this project does not qualify for tax credit financing because of the regulation that the property owner has not owned it for ten years. She noted the financing is not quite as good but the property itself is in better condition, with no relocation. Member Miller stated this particular property, 55 Fairfax, is outstanding, with Mount Tamalpias visible from the porches. Regarding the Marin Community Foundation's adopting a policy of lending money instead of actually funding, he inquired if this would have an effect. Executive Director Gould stated Dr. Peters doesn't have to see a "sandwich board" to learn about the opportunity to assist with this project; it is right here and real and could happen very shortly. Ms. Lovette stated it was a very serious consideration and could be addressed by Lisa Grady. BRIDGE was having to run a lot of numbers to make it work as it would not be a grant, rather a short-term loan which does not work with the financing commitment they are endeavoring to obtain from Citibank for the first mortgage. Lisa Grady, Project Manager, BRIDGE Housing, addressing the question of Marin Community Foundation's participation, stated there was a conference call this afternoon, pursuant to having had some trouble coordinating it. Marin Community Foundation is endeavoring to fund money from two different sources, one being a loan program, which would not necessarily be helpful to BRIDGE, as all the money available is being used to borrow from Citibank. She stated they did seem open to working with BRIDGE and to Chantel Walker's credit, she did appear willing to consider options and pursue different avenues. One of the options suggested was to confer with the Cowell Foundation, and Marin Community Foundation expressed a willingness to contact them directly; therefore, she did feel optimistic they could come to terms with them to achieve a structure for their financing which will allow the acquisition of the project. Ms. Grady stated that Chantel Walker appeared to have a commitment to seeing projects through in the Canal, having had a background of working there, and she was hopeful BRIDGE would be in a position to utilize her enthusiasm for affordable housing in the Canal to make a financing structure that will work for this project. Chairman Boro stated that BRIDGE also had a proven track record with their previous project. Ms. Grady stated in this instance BRIDGE had more favorable terms to offer the Marin Community Foundation in terms of per unit subsidy dollars; therefore, she believed with the issues being evaluated and the criterion for their funding, this should fit within their program and she felt optimistic of its success. She stated they were also very enthusiastic regarding working with the City of San Rafael on this important program, and their ability to bring 40 additional units of affordable housing on line would be a great success and she hoped more would follow. Member Phillips moved and Member Heller seconded, to adopt the Resolution. RESOLUTION NO. 2001-18 — RESOLUTION APPROVING EXPENDITURE OF $980,000 FROM THE LOW AND MODERATE INCOME HOUSING FUND TO ASSIST BRIDGE IN THE PURCHASE AND REHABILITATION OF 55 FAIRFAX STREET ("CAHIP") AYES: MEMBERS: Heller, Miller, Phillips and Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: Cohen SRRA MINUTES (Regular) 05/21/2001 Page 4 SRRA MINUTES (Regular) 05/21/2001 Page 5 AGENCY MEMBER REPORTS: 8. Classic Car Parade: - File R-181 x R-140 #8 Nancy Mackle, Economic Development Director, reported that the Classic Car Parade was a huge success this weekend and the Farmers' Market continues to boom, spreading out further down the street. She invited all to attend. There being no further business, the San Rafael Redevelopment Agency meeting was adjourned at 8:02 PM. JEANNE M. LEONCINI, Agency Secretary SRRA MINUTES (Regular) 05/21/2001 Page 5