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HomeMy WebLinkAboutMINUTES - 08022011 - C.30RECOMMENDATION(S): APPROVE and AUTHORIZE County Counsel or her designee to execute on behalf of the County a form acknowledging a potential conflict of interest and consenting to Goldfarb & Lipman LLP representing Contra Costa County in connection with the refinancing of a senior housing development known as Pinole Grove. FISCAL IMPACT: There is no negative impact on the General Fund. BACKGROUND: Over the years, the County has entered into contracts with Goldfarb for specialized services in connection with redevelopment projects and certain affordable housing matters. Because Goldfarb’s concentration of work is in affordable housing and redevelopment, it is not uncommon for the firm to have an attorney-client relationship with more than one party to a complicated redevelopment or housing transaction. Attached is a letter from Goldfarb that describes a current project in which the firm represents the County. The letter also sets forth the attorney-client relationships that could APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/02/2011 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: Sharon L. Anderson, County Counsel 335-1800 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: August 2, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.30 To:Board of Supervisors From:Sharon L. Anderson, County Counsel Date:August 2, 2011 Contra Costa County Subject:CONSENT TO REPRESENTATION BY GOLDFARB & LIPMAN LLP affect BACKGROUND: (CONT'D) the firm’s representation of the County. The proposed consent is attached to the letter. A potential conflict exists in connection with Goldfarb’s representation of the County in a transaction in which (i) a currently-outstanding County loan to an affiliate of BRIDGE Housing Corporation (“BRIDGE”) will be refinanced, and (ii) an additional loan will be made by the County to an affiliate of BRIDGE. Proceeds of the original loan were used to acquire and develop Pinole Grove, a 70-unit housing development for low-income seniors. The proposed additional loan will be used to rehabilitate the Pinole Grove project. BRIDGE is an existing client of Goldfarb, but will not be represented by Goldfarb in this transaction. Staff for the County Conservation & Development Department have advised that they do not object to the potential conflict and recommend its waiver. CONSEQUENCE OF NEGATIVE ACTION: Goldfarb would not be able to continue to represent the County in connection with the refinancing and the new loan. The result would likely be increased costs for the County and a delay in the completion of the transaction. CHILDREN'S IMPACT STATEMENT: None. ATTACHMENTS July 2011 Goldfarb Consent