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HomeMy WebLinkAboutMINUTES - 05172011 - C.53RECOMMENDATION(S): APPROVE and AUTHORIZE the Redevelopment Director, or designee, to execute a Commercial Rehabilitation Loan Agreement and Ancillary Documents with Community Housing Development Corporation of North Richmond (CHDC) for the renovation of 1535-E Third Street, North Richmond. FISCAL IMPACT: No General fund money will be used for this loan. The total loan amount is $150,000. The term of the loan is 15 years and it terminates in 2026. The Loan Agreement provides for repayment on an annual basis with a 3% interest rate. The Loan Agreement provides for the annual Loan Payment installment to be forgiven if CHDC is in substantial compliance with a Community Service Plan. The Community Service Plan identifies a list of community services that CHDC is expected to provide on an ongoing basis to the North Richmond community. The Community Service Plan includes a) activities that implement the North Richmond Affordable Housing Memorandum of Understanding; b) assistance to the County Housing Authority in evaluating alternative uses for the Authority's scattered sites and public housing units; c) services implementing the COMET Program; and d) continued operation of the financial literacy program. The Redevelopment Agency’s financial APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 05/17/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Jim Kennedy, 925-335-7225 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: May 17, 2011 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.53 To: From:Jim Kennedy, County Redevelopment Director Date:May 17, 2011 Contra Costa County Subject:Commerical Rehabilitation Loan Agreement obligation (loan) is from budgeted funds under the North Richmond Redevelopment Project Area for fiscal year 2010-11. BACKGROUND: One of the major goals of the North Richmond Redevelopment Plan is to improve service delivery in the project area. Renovating the former commercial/retail site to accommodate the community services function of Community Housing Development Corporation of North Richmond (CHDC) is a crucial step in achieving this goal. CHDC is a non-profit housing developer with a long history of providing needed services to the North Richmond community. CHDC recently submitted expansion plans to the County's Conservation & Development Department and now has finalized drawings to secure building permits from the Building Inspection Division to physically transform the area into additional office space. The completion of this space will result in complete occupancy of the North Richmond Town Center. The subject retail space has been underutilized for several years. Numerous attempts to establish a commercial restaurant have failed. This site is highly visible and sits in a prime location between the North Richmond Health Center, County Service Integration Team, and the 52 unit Senior Heritage Apartments. The expansion plan calls for tenant improvements to renovate approximately 1,000 square feet on the ground floor of 1535-E Third Street. Specific improvements include, among other items: upgrades to the ceiling, walls, flooring, electrical, doors, and accessory details. Expanding this space will improve operational efficiencies and allow CHDC to increase its program offerings like the First Time Homebuyers Program, Financial Literacy, Foreclosure Prevention, and Earn It-Keep It-Save It Program. Renovating this space also continues the Agency’s efforts to create a sense of place for the North Richmond Town Center. CONSEQUENCE OF NEGATIVE ACTION: Should the Governing Board not approve the loan agreement, the site would remain vacant, underutilized, and the community will continue to experience a lack of services and programs. CHILDREN'S IMPACT STATEMENT: The agreement, if approved, would provide enhanced services and financial resources to the residents, including single parents, in the North Richmond community. ATTACHMENTS Agreement