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HomeMy WebLinkAboutMINUTES - 02151994 - 2.4 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA TO: BOARD OF COMMISSIONERS FROM: Richard J. Martinez, Executive Director DATE: February 15, 1994 SUBJECT: LEASE TO PRESCHOOL COORDINATING COUNCIL, INC. AND PURCHASE OPTION TO COLUMBIA PARK MANOR, INC. FOR DEVELOPMENT OF SENIOR HOUSING SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION I.- RECOMMENDED ACTION: DETERMINE that Parcel B, as identified below, is not required for the future needs of the Housing Authority and may be disposed of pursuant to Health and Safety Code Section 34315.7 under the terms of the option described; and AUTHORIZE the Executive Director of the Housing Authority of the County of Contra Costa to (1) enter into a lease with the Pittsburg Preschool Coordinating Council , Inc. for the Housing Authority owned property located at 1760 Chester Drive in Pittsburg; (2) enter into a purchase option agreement to sell a portion of the property (Parcel B) to Columbia Park Manor, Inc. for the development of low income senior housing; and, (3) to execute any other documents necessary to facilitate the foregoing, including documents which may be necessary to terminate existing lease(s) on the subject property. This authorization is subject to the review and approval as to form of all documents by County Counsel . II. FINANCIAL IMPACT: If the option for Parcel B is exercised, the purchase price for Parcel B shall . be $300,000. However, the Housing Authority has been asked to contribute $200,000 of said sum to Columbia Park Manor, Inc. for development funding for the low income senior housing project. If this contribution is approved by the Board of Commissioners, the resulting potential net gain to the Housing Authority will be $100,000. III. REASONS FOR RECOMMENDATION/BACKGROUND: The Housing Authority owns the property located at 1760 Chester Drive in Pittsburg, California. On or about May 4, 1979, the Housing Authority leased the five-acre site to Pittsburg Pre-School Coordinating Council , Inc. (PPCC) , under a fifty-five year lease agreement, for use as a pre-school center. The lease was subsequently quitclaimed to Contra Costa County on or about July 30, 1982. Since that time PPCC has occupied the entire site and has operated a pre-school center on approximately one-half of the site (Parcel A) pursuant to an agreement with the County. CONTINUED ON ATTACHMENT: YES SIGNATURE RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S) : ACTION OF BOARD ON19q+ APPROVED AS RECOMMENDED a� OTHER VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A .,.-/UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN AYES: NOES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAIN: MINUTES OF TIIE BOARD OF COMMISSIONERS ON THE DATE SHOWN. ATTESTED j 4 PHIL BATC LOR, CLERK OF THE BOAR OF COMMISSIONERS AND COUNTY ADMINISTRATOR BY .` , DEPUTY Board of Commissioners February 15, 1994 Page -2- In September 1993, PPCC and Satellite Senior Homes, Inc. (SSH) , as co-sponsors, received a $5.9 million HUD Section 202 funding award to develop low income senior housing on the vacant portion of the five-acre site (Parcel B) . PPCC and SSH are forming a non-profit corporation, Columbia Park Manor, Inc., which would be the actual owner of the senior housing development on Parcel B. The HUD Section 202 program requires that the owner have site control , or an executed purchase option, at the Conditional Commitment stage in mid-February 1994. In order to accomplish the development of senior housing on Parcel B, the Housing Authority and the County propose to terminate the existing lease between the Housing Authority and the County and the Housing Authority proposes to enter in to a new lease for the five-acre site (Parcel A and Parcel B) with PPCC, to terminate on April 30, 2034. The Housing Authority further proposes to enter into a one-year purchase option with Columbia Park Manor, Inc. (CPM) , permitting CPM to purchase Parcel B for the sum of $300,000. The option is to be conveyed for the purpose of allowing CPM to plan and pursue funds for the construction of a senior housing facility for people of low and moderate income. If the property is conveyed it shall be used solely for the construction and operation of a low/moderate income senior hosuing facility. Exercise of the option will be conditioned upon, among other things, CPM depositing the $300,000 into escrow and obtaining necessary approvals from the City of Pittsburg. Upon exercise of the option, the portion of the lease to PPCC relating to Parcel B will terminate. If the property is conveyed, the deed will require that Parcel B will revert to the Housing Authority if the certificate of occupancy is not obtained within five years of the execution of the Deed or if Parcel B is ever not used for the construction and operation of a senior housing facility for individuals with low and moderate income, as defined by Health and Safety Code Section 50093. The deed will contain the findings and conditions required by Government Code Section 50570 and Health and Safety Code Section 34315.7. On January 24, 1994 the Advisory Housing Commission voted to recommend authorizing the actions described above. IV. CONSEQUENCES OF NEGATIVE ACTION: Should the Board of Commissioners elect to not authorize the execution of the required lease and purchase option agreement, the Housing Authority, Pittsburg Pre-School Coordinating Council , Inc. and Satellite Senior Homes, Inc. would forfeit the opportunity to provide low income senior housing in the City of Pittsburg.