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HomeMy WebLinkAboutMINUTES - 10282014 - C.29RECOMMENDATION(S): APPROVE and AUTHORIZE the Conservation and Development Department Interim Director, or designee, to amend and execute a loan agreement providing $227,000 in Community Development Block Grant (CDBG) funds to Bella Monte Apartments, L.P., for security improvements to the Bella Monte Apartments project in the Bay Point area. FISCAL IMPACT: No General Fund impact. CDBG funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development (HUD). BACKGROUND: On February 26, 2013, the Board of Supervisors allocated $227,000 in CDBG funds to Bella Monte Apartments, L.P., for security improvements to the Bella Monte Apartments development. On February 25, 2014, the Board approved the legal documents, including the CDBG Loan Agreement, for this project. Bella Monte Apartments, L.P. currently owns the development, a 52-unit apartment complex called Bella Monte Apartments in Bay Point. The development includes a mix of 1-, 2-, and 3-bedroom units to accommodate families of different sizes. The range of affordability levels of the units is 20 percent to 60 percent of the area median income. Bella Monte Apartments L.P. built the apartment complex in 2005 with financing from Contra Costa CDBG, HOME and HOPWA funds, former County Redevelopment Agency funds, and other funds. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 10/28/2014 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: Kristin Sherk, 925-674-7887 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: October 28, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: Chris Heck, Deputy cc: C. 29 To:Board of Supervisors From:John Kopchik, Interim Director, Conservation & Development Department Date:October 28, 2014 Contra Costa County Subject:APPROVAL OF AMENDMENT TO COMMUNITY DEVELOPMENT BLOCK GRANT LEGAL DOCUMENTS FOR THE BELLA MONTE APARTMENTS PROJECT IN BAY POINT BACKGROUND: (CONT'D) > An affiliate of Resources for Community Development (RCD) is the managing general of Bella Monte Apartments, L.P. RCD constructed perimeter fencing to improve the safety and security of the project, to improve quality of life for existing and future residents, and to reduce on-site criminal activities. The fence connects each of the four existing buildings, securing the interior portions of the site. Resident vehicle access to two existing parking areas are now accessible by sliding vehicle gates, and four secured pedestrian gates have been added for residents accessing the properties on foot. The security fencing is preventing pedestrians from using the property as a cut-through between Willow Pass Road and the surrounding neighborhood. RCD was delayed in closing the loan, beginning construction, and completing construction. RCD and County staff wish to amend the CDBG Loan Agreement to modify the dates by which RCD must pull permits, commence construction, and complete construction. Article 3 of the CDBG Loan Agreement allows the County to approve in writing later dates. The requested date changes are as follows: Obtain all Permits and Approvals: Change from February 28, 2014 to March 20, 2014. Commencement of Construction: Change from February 28, 2014 to March 20, 2014. Completion of Construction: Change from May 31, 2014 to October 31, 2014. The CDBG loan documents were signed and recorded on March 18, 2014 with a Notice to Proceed being issued on March 20, 2014. Construction commenced then and was expected to take approximately three months. There were delays including trenching, and ordering/fabricating the fences and vehicle gates. A final walk through was conducted on September 12, 2014. A Certification of Substantial Completion was executed by the Architect on September 24, 2014. A Notice of Completion is expected to be executed and recorded by October 31, 2014. If the above requested extensions are approved, the County and RCD will enter into an amended and restated CDBG Loan Agreement in a form to be approved by County Counsel. CONSEQUENCE OF NEGATIVE ACTION: If the CDBG Loan Agreement is not amended, the County will not be able to reimburse Bella Monte Apartments, L.P. for work that is already completed. This would create a significant hardship for the property. CHILDREN'S IMPACT STATEMENT: This project will support indicator number four: Families are Safe, Stable and Nurturing and number five: Communities are Safe and Provide a High Quality Life for Children and Families.