HomeMy WebLinkAboutMINUTES - 12031991 - 1.74 1- If 4
TO: REDEVELOPMENT AGENCY �' `� ', Contra
FROM: Phil Batchelor 3:/ "WLa
Executive Director
'•c sr c �
DATE: December 3, 1991
SUBJECT: Development of Area 4 - Pleasant Hill BART Station Area
SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Accept report and recommendations regarding Redevelopment Agency
actions necessary to complete the assemblage of Development Area 4 at
the Pleasant Hill BART Station.
FISCAL IMPACT
The total cost of assemblage is estimated at $3 .97 million, of which
$2 .77 million would be in cash. The Agency can secure from its own
funds and borrowing from the County's Affordable Housing Special
revenues, sufficient funds to consummate the purchases at the expected
prices. The Agency also has non-housing tax increment funds that
could be used, if necessary.
BACKGROUND/REASONS FOR RECOMMENDATIONS
Report Attached.
CONTINUED ON ATTACHMENT: X YES SIGNATURE: �f
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDAT ON OF AG NCY COMM TEE
APPROVE OTHER
7i
SIGNATURE(S) :
ACTION OF AGENCY ON December 3, 1991 APPROVED AS RECOMMENDED X OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
cc: Community Development
SRA20/jb/comarea4 .bos ATTESTED December 3, 1991
PHIL BATCHELOR,
AGENCY SECRETARY
BY , DEPUTY
.y
' CONTRA COSTA COUNTY REDEVELOPMENT AGENCY
DATE: December 3 , 1991
TO: Redevelopment Agency
FROM: Jim Kennedy,
Deputy Director-Redevelopment
SUBJECT: Area 4 - Pleasant Hill BART Station Area
The Agency has an Opportunity to complete the assemblage of Area 4
- the final unassembled development area at Pleasant Hill BART.
The partnership of Glenfed Development Corp. and DESCO Investment
were unable -to perform in developing the final residential project
in Area 4 at the Pleasant Hill BART Station (Premiere Apartments -
211 units). The Disposition and Development Agreement between the
Agency and the Partnership has been terminated. The dissolution of
the Glenfed/Desco partnership resulted in Glenfed Development Corp.
owning four of the ten parcels necessary for this development (1.8
acres of the total four acre assemblage) ..
I. Recommendations
I am recommending the following actions to complete the
assemblage of Area 4 :
A. Accept the Glenfed tender subject to negotiation of final
terms;
B. Authorize the acquisition, by negotiation of the
remaining privately held properties in Area 4 and by
condemnation, if necessary;
C. Authorize acceptance of a loan of County Affordable
Housing Special Revenues to the Agency, to be repaid when
the properties are transferred to a private owner.
D. Authorize the use of non-housing tax increments to make
annual interest payments to Glenfed, if necessary; and
E. Authorize staff to prepare and circulate a request for
development proposals (RFP) or request for
qualifications, (RFQ) with the intent of placing the
property into productive property tax-generating use at
.. the earliest possible time, consistent with prudent
financial practice.
II. Glenfed Tender - Background
Due to federal regulatory agency .capital requirements, Glenfed
Development Corporation wants to, get the properties off their
books. They have tendered the properties to the Agency at a
below market price of $1.5 million. Glenfed is willing to
sell the property to the Agency on reasonable terms.
Staff has indicated 'interest in the Glenfed tender, and has
engaged in negotiations. In addition, staff has concurrently
pursued negotiated purchase of the remaining four privately
held properties. The offers to the property owners have been
very fair. . To complete the assemblage could require
condemnation. One offer was accepted Deubner - and the
Agency approved 'the acquisition of one of the four remaining
privately held parcels on November 19, 1991.
III. Financial Implications
A. Costs
The cost to acquire the total assemblage, including both
the Glenfed properties, and the , other privately held
properties ' is an estimated $3 , 971, 149. The minimum
amount of cash necessary to consummate the purchase is
. $2,771, 149.
B. Available Resources
The Agency with its own funds and with a loan from the
County's Affordable Housing Special Revenue funds has
approximately $2,800; 000 available in funds to complete
the cash portion of the transaction.
C. � Annual Costs
Purchasing the Glenfed property on terms would require
the payment of annual interest of approximately $108, 000.
The Agency has entered into a DDA for the Park Regency
project in ,which those owners have a first lien on the
Agency's future annual housing set-aside up to a maximum .
of $645, 000 per year. Since the annual amount of housing
set-aside available does not yet reach that $645, 000
level, the ,Agency could only make the interest payments
to Glenfed from its non-housing tax increment. This is
possible, and can be accomplished without significantly
impairing the Agency's ability to finance infrastructure
improvements. ,
The Agency will lose approximately $16, 000/year in tax
increment during the period the properties are in public
ownership. , The intent is to put the properties into
productive use as soon as possible.
sRA20rb/area4.mem