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HomeMy WebLinkAboutMINUTES - 09121995 - C161 Contra TO: REDEVELOPMENT AGENCY Costa FROM: Phil Batchelor County cu��J Executive Director DATE: September 12, 1995 SUBJECT: Loan Agreement - Senior Housing Project, North Richmond Redevelopment Project Area SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS APPROVE and AUTHORIZE the Deputy Director - Redevelopment to enter into a Loan Agreement with the County for the development of a senior housing project in the North Richmond Redevelopment Project Area. FISCAL IMPACT No impact on the General Fund. The $500, 000 is provided by the County Affordable Housing and Special Revenue Fund No. 1113000 . BACKGROUND/REASONS FOR RECOMMENDATIONS A major Redevelopment activity in North Richmond is to imp ove and CONTINUED ON ATTACHMENT: YES SIGNATURE : GY RECOMMENDATION OF EXECUTIVE DIRECTOR RECO ATION AGENCY CO ITTEE APPROVE OTHER SIGNATURE (S,) : ACTION OF AGENCY ON September 12 , 1995 APPROVED AS RECOMMENDED x OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A x_ UNANIMOUS (ABSENT / ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT AGENCY ON THE DATE SHOWN. Contact: Beth Lee 646-4076 ATTESTED September 12 , 1995 cc: County Counsel PHIL BATCHELOR, County Administrators Office AGENCY SECRETARY Board Clerk via Redevelopment Auditor-Controller Via Redevelopment Agency Eden .Housing BY , DEPUTY CHDC expand the supply of affordable housing. On September 13, 1994, the Redevelopment Agency approved a Disposition, Development and Loan Agreement (DDLA) between the Agency and the Community Housing Development Corporation of North Richmond and Eden Housing. The DDLA provides for the block bounded by 2nd, 3rd, Grove and Chesley to be redeveloped into a 52 unit affordable senior housing commercial/retail project. The DDLA requires the Agency to acquire the twenty-one (21) parcels, relocate tenants, and prepare the land for development of the senior housing mixed-use project. On December 6, 1994, the Redevelopment Agency approved a contract between the Agency and Contra Costa County for real property services relative to property acquisition/relocation needs for the senior housing project. The properties have been, or are currently being, acquired for the project. All tenants have been relocated and the structures will soon be abated. The Agency does not have sufficient financial resources of its own to complete this process and the County has agreed to loan funds to the Agency from its Affordable Housing Trust Funds . LOAN AGREEMENT BETWEEN THE CONTRA COSTA COUNTY REDEVELOPMENT AGENCY AND THE COUNTY OF CONTRA COSTA RELATING TO THE NORTH RICHMOND SENIOR HOUSING PROJECT This Agreement is entered into as of the , 1995, by and between the Contra Costa County Redevelopment Agency, a public body corporate and politic ("Agency") and the County of Contra Costa, a political subdivision of the State of California("County") pursuant to the joint exercise of powers provisions of California Government Code Sections 6500-6522, and Health and Safety Code Section 33445. RECITALS I. On July 14, 1987, by Ordinance No. 87-50, the Agency adopted the North Richmond Redevelopment Plan (the "Plan"). The Plan calls for public improvements in the North Richmond Redevelopment Project Area("Project Area") that will eliminate blight and result in overall benefit to the Project Area residents. 2. The Agency has entered into a Disposition, Development and Loan Agreement ("DDLA") with the Community Housing Development Corporation and Eden Housing (the "Developer") to construct the North Richmond Senior Housing Project (the "Project"). The Project consists of fifty-two (52) multifamily housing units affordable to lower income seniors, a Center for Health and space available for commercial/retail businesses. The expansion of the supply of affordable housing is identified in the Plan as improvements eligible to receive Agency funding. 3. It is the determination of the Agency that the Project improvements are of benefit to the Project Area because it expands the supply of affordable housing and provides much needed health and commercial/retail services to the North Richmond community. 4. By this Agreement, the Agency and the County desire to provide funding for a portion of the cost of the acquisition, relocation, demolition of existing structures, and/or construction of the Project. Because the Agency does not have sufficient financial resources of its own, the County has agreed to loan funds to the Agency from its Affordable Housing Trust Funds (the "Trust Funds"). 5. This Agreement shall constitute an indebtedness of the Agency for the purposes of carrying out the Redevelopment Project for the Project Area, which indebtedness may be made payable out of taxes levied in the Project Area and allocated to the Agency under Subdivision (b) of Health and Safety Code Section 33670, or out of any other available funds of the Agency. AGREEMENT Agency and County hereby agrees as follows: 1. USE OF FUNDS The Trust Fund monies will be used to acquire the parcels, relocate existing residents, demolish existing structures, and/or construct the affordable senior housing project. If. METHOD The Agency shall acquire the parcels, relocate existing residents and demolish the structures to prepare the site for construction of the senior housing project. The Agency shall transfer the parcels, with associated costs incurred, to the Developer upon successful completion of financial and planning milestones necessary to bring the project to completion. Ill. COST The approximate total cost of the Project to be constructed pursuant to this Agreement is $5,500,000. The County's Trust Fund loan to the Agency is $500,000. 1V. REPAYMENT A. The Agency shall repay the County the principal amount plus 3% per annum simple interest. The County, in its sole discretion, may waive the interest component of the obligation. The Agency may repay the loan, in whole or in part, at any time. B. The Agency and County acknowledge that the terms of the DDLA between the Agency and the Developer does not provide for repayment of funds for a long period of time, and that the Agency loan of Trust Funds may be transferred to other parties, consistent with the terms of the Plan and other participating federal funding program requirements, should the Developer be unable to perform. C. The term of this loan shall be twenty (20) years, which term may be extended by in writing by the County. V. ACCOUNTABILITY The Agency shall be accountable for all funds under its control. Upon request, the Agency shall report all receipts and disbursements to the County and shall provide the County with any documentation deemed necessary by the County to verify said expenditures. VI. TERM This Agreement shall remain in effect until all improvements have been constructed and all final payments required herein have been made. CONTRA COSTA COUNTY CONTRA COSTA COUNTY REDEVELOPMENT AGENCY By: Harvey E. Bragdon Director of Community Development By: Jim Kennedy Deputy Executive Director