HomeMy WebLinkAboutMINUTES - 01211992 - 1.51 TO: REDEVELOPMENT AGENCY Contra
FROM: Phil Batchelor Costa
Executive Director
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cd.rA c u�..••cT
DATE: January 21, 1992 County
SUBJECT: Authorization for the Redevelopment Agency to negotiate a
financial participation agreement to build affordable housing in
the West Pittsburg Redevelopment Project Area.
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Authorize the Director of Redevelopment, or his designee, to negotiate
a financial participation agreement with D & M Construction, Inc.
for the purpose of constructing affordable housing in the West
Pittsburg Redevelopment Project Area..
FISCAL IMPACT
No impact on the General Fund. If negotiations are successful, an
anticipated project loan of $62, 500 will be made available from the
West Pittsburg Project Area tax increment reserves.
BACKGROUND/REASONS FOR RECOMMENDATIONS
D & M Construction owns a parcel of land, approximately two blocks
from the proposed West Pittsburg BART station, in the West Pittsburg
Redevelopment Project Area. It wishes to develop the parcel with ten
(10) condominium units, which would be affordable to very low- to
moderate-income families (60 - 1200 of area median) . Because of the
current financial climate, it has had difficulty getting a
construction financing commitment from a private lender. Several
lenders have indicated an interest in financing the project if the
Redevelopment Agency provides a part of the construction financing.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF A ENCY COMM TTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OF AGENCY ON January 21 } 1992 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
CN2/agencbd.Jan ATTESTED January 21 , 1992
PHIL BATCHELOR,
AGENCY SECRETARY
BY , DEPUTY
If negotiations are successful, the Agency expects to loan D & M Construction
$62 ,500, contingent on it getting the balance of the construction financing from
a private lender. It is anticipated that the loan would be repaid, with
interest, in ten equal installments, as units are sold. Units would be sold in
the following manner: four (4) units would be made available to low-income
families; one (1) unit to a very low-income family, and five (5) to moderate-
income families.
The construction of these units will assist the Agency/County meet its
affordable housing requirements.