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Home My WebLink AboutMINUTES - 12172013 - C.56RECOMMENDATION(S): APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute the Second Amendment to the Predevelopment Loan Agreement with Community Housing Development Corporation of North Richmond for predevelopment activities for the Heritage Point Project, by extending the term to agreement from the existing termination date of December 31, 2013 through June 30, 2014. FISCAL IMPACT: No General Funds will be used for this loan. The total loan amount of $131,700 is funded through reserves held by the Successor Agency to the Contra Costa County Redevelopment Agency. This loan is an enforceable obligation identified in the approved Recognized Obligation Payment Schedule of the Successor Agency. The loan is expected to be rolled over into the permanent financing for the project's construction. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/17/2013 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: Maureen Toms, 925-674-7878 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: December 17, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: Chris Heck, Deputy cc: C. 56 To:Board of Supervisors From:Catherine Kutsuris, Conservation and Development Director Date:December 17, 2013 Contra Costa County Subject:Second Amendment to Agreement with Community Housing Development Corporation of North Richmond BACKGROUND: On April 5, 2011, the former Contra Costa County Redevelopment Agency entered into a Predevelopment Loan Agreement with Community Housing Development Corporation of North Richmond (CHDC) for Phase II of the North Richmond Town Center Project. The Phase I was completed several years ago and includes the award winning Heritage Senior Apartments, North Richmond Health Center, County Service Integration Team and streetscape improvements along Fred Jackson Way between Chesley Avenue and Grove Street. Phase II is on the eastern side of Fred Jackson Way, directly across the street from Phase I. It encompasses six parcels and is referred to as Heritage Point. The site is flat and, in March 2009, was occupied by a mix of residential single & multi-family housing, blighted under-performing commercial outlets, a vacant office/community building, and a vacant lot previously occupied by an auto body repair shop. The former Redevelopment Agency acquired the parcels, demolished existing structures, and relocated affected residents. Upon dissolution of the former Redevelopment Agency, the property and the Loan Agreement were transferred to the County acting as the Housing Successor to the former Redevelopment Agency. Funding for the Predevelopment Loan Agreement was transferred to the Successor Agency. The term of the original Predevelopment Agreement terminated on December 31, 2012. On December 11, 2012, the Board of Supervisors extended the Agreement's term to December 31, 2013 so that it remained an enforceable obligation of the Successor Agency. The Second Amendment extends the term of the agreement to June 30, 2014, consistent with the Recognized Obligation Payment Schedule 13/14B. The purpose of the Predevelopment Loan Agreement is to: 1) fully define the project; 2) determine project feasibility; 3) identify infrastructure needs; 4) perform studies to inform a project level environmental review process; 5) initiate land use entitlement proceedings; and 6) designate CHDC as Master Developer. If a project is feasible, this Agreement will provide market studies, project administration, conceptual site documents, design concepts, land use applications, a financing plan, and input from the North Richmond community on what residents would like to see incorporated into Heritage Point. CONSEQUENCE OF NEGATIVE ACTION: Without an extension of the term of the Predevelopment Agreement, the Housing Successor (Contra Costa County) would be unable to proceed with the development of Heritage Point and would not know its potential for completing the North Richmond Town Center Project. CHILDREN'S IMPACT STATEMENT: Not Applicable ATTACHMENTS Second Amendment to Predevelopment Agreement 320\04\1428754.1 SECOND AMENDMENT TO PREDEVELOPMENT LOAN AGREEMENT This Second Amendment to the Predevelopment Loan Agreement ("First Amendment") is dated as of this 17th day of December 2013, by and between the County of Contra Costa, a political subdivision of the State of California (the "County") and Community Housing Development Corporation of North Richmond, a California nonprofit public benefit corporation (the "Borrower"), with reference to the following facts, purposes and intentions: RECITALS A. The former Redevelopment Agency of the County of Contra Costa (the "Former RDA") and the Borrower entered into that certain Predevelopment Loan Agreement, dated April 12, 2011, as amended by that certain First Amendment to Predevelopment Loan Agreement, dated as of December 11, 2012 (collectively, the "Loan Agreement"). These recitals refer to and utilize certain capitalized terms which are defined in Article 1 of the Loan Agreement. B. As a result of the adoption and implementation of AB 1x 26 and AB 1484 (the "Redevelopment Dissolution Statutes"), the Former RDA was dissolved and the housing assets and functions previously performed by the Former RDA were transferred to the County, as housing successor in accordance with Section 34176(a)(1). C. The County is the successor in interest to the Former RDA under the Loan Agreement. D. Due to the general uncertainty associated with the implementation of the Redevelopment Dissolution Statutes, the Borrower's performance of the Predevelopment Activities under the Loan Agreement was delayed. E. The County and the Borrower agree that it is in their best interest to allow for an extension of the Term of the Loan Agreement to allow the Borrower to continue to perform the Predevelopment Activities necessary for the future development of the Heritage Point Unified Development Area. F. The County and the Borrower desire to amend the Loan Agreement, pursuant to Section 7.3 of the Loan Agreement, to reflect the changes in the Term of the Loan Agreement. WITH REFERENCE TO THE FACTS RECITED ABOVE, the County and the Developer (collectively the "Parties") agree as follows: Section 1. Amendment to Subsection 1.1(qq). Subsection 1.1(qq) of the Loan Agreement is hereby amended by deleting the existing Subsection 1.1(qq) in its entirety and amending and restating it to read as follows: 320\04\1428754.1 "(qq) "Term" means the term of this Agreement, which commences on the Effective Date and terminates on June 30, 2014, unless sooner terminated pursuant to the terms of this Agreement." Section 2. Effect of Amendment. Unless otherwise specifically amended herein, the terms of the Loan Agreement shall remain in full force and effect. In the event of any conflict between this Second Amendment and the Loan Agreement, the provisions of this Second Amendment shall prevail. Section 3. Multiple Originals; Counterparts. This Second Amendment may be executed in counterparts, each of which shall be deemed to be an original. [Signature Page Follows] // // // // 320\04\1428754.1 WHEREFORE, the Parties acknowledge and accept the terms and conditions of this Second Amendment as evidenced by the following signatures of their duly authorized representatives. It is the intent of the Parties that this Second Amendment shall become operative on the Effective Date first set forth above. BORROWER: COMMUNITY HOUSING DEVELOPMENT CORPORATION OF NORTH RICHMOND, a California nonprofit public benefit corporation By: ___________________________________ Name ___________________________________ Its: ___________________________________ COUNTY: CONTRA COSTA COUNTY, a political subdivision of the State of California By: ___________________________________ Name ___________________________________ Its: ___________________________________