HomeMy WebLinkAboutMINUTES - 09112012 - C.122RECOMMENDATION(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 a loan of approximately $2,040,000 of HOME funds and approximately $2,050,000 of
CDBG funds to Eden Housing, Inc.
FISCAL IMPACT:
There is no General Fund impact. HOME and CDBG funds are provided to the County on a formula allocation basis
through the U.S. Department of Housing and Urban Development (HUD).
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 development, it is not uncommon for the firm to have an attorney-client relationship with
more than one party to a complicated affordable housing transaction.
Attached
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 09/11/2012 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF SUPERVISORS
AYE:John Gioia, District I Supervisor
Candace Andersen, District II
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
Contact: Kathleen Andrus,
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: September 11, 2012
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: Kathleen Andrus, Deputy County Counsel, Kara Douglas, Department of Conservation and Development
C.122
To:Board of Supervisors
From:Sharon L. Anderson, County Counsel
Date:September 11, 2012
Contra
Costa
County
Subject:CONSENT TO REPRESENTATION BY GOLDFARB & LIPMAN LLP
BACKGROUND: (CONT'D)
is a letter from Goldfarb that requests that the County acknowledge and waive potential conflicts that exist in a
situation in which Goldfarb will represent the County and the City of Orinda in two separate, but related,
transactions. In the first transaction, Goldfarb is representing the City of Orinda in the sale of real property to Eden
Housing, Inc. (Eden Housing). In the second transaction, Goldfarb will represent the County by drafting
documents evidencing a loan of HOME funds and a loan of CDBG funds to Eden Housing, which funds will be
used by Eden Housing to acquire and develop the real property it is buying from the City of Orinda. The purchase
of the property and the loan of HOME and CDBG funds may occur simultaneously. The letter sets forth the
attorney-client relationships that could affect the firm’s representation of the County and makes it clear that
different attorneys within Goldfarb will represent the County and the City of Orinda. The proposed consent to
Goldfarb’s dual role is attached to Goldfarb’s letter.
In the proposed transaction, the County will loan approximately $2,040,000 of HOME funds and approximately
$2,050,000 of CDBG funds to Eden Housing. Proceeds from the loan will be used by Eden Housing to acquire the
property and to construct 67-units of rental housing in Orinda for rental to very low-income senior households.
Goldfarb’s role in representing the County will be to draft loan documents. The loan documents will be reviewed
by the County Counsel’s office and approved as to form.
Staff for the Conservation and Development Department has 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 both the County and the City in connection with the project.
The result would likely be a delay in the project and possibly increased costs for the County in the completion of
the transaction.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
ATTACHMENTS
Consents to Potential Conflict of Interest