HomeMy WebLinkAboutMINUTES - 10201998 - C71 .................11.......
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TO: REDEVELOPMENT AGENCY
FROM: Phil Batchelor
Executive Director
DATE: October 20, 1998
SUBJECT: Loan Agreement between the Contra Costa County Redevelopment Agency
And the County of Contra Costa
SPECIFIC REQUEST($) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE and AUTHORIZE the Deputy Director - Redevelopment, on behalf of the
Redevelopment Agency, and the Director of Community Development, on behalf of the
County, to execute a Loan Agreement related to Pleasant Hill BART Area 4 Promissory Note
Retirement (not to exceed $600,000).
FISCAL IMPACT
No general funds. The Agency is borrowing restricted revenues - Affordable Housing Trust
Fund (Fund #111300) - to fulfill its obligations for the production of affordable housing in its
Redevelopment Project Area.
BACKGROUND/REASONS FOR-RECOMMENDATIONS
In 1990 the Redevelopment Agency agreed to purchase five certain properties in Area 4S at
the Pleasant Hill BART Station from Glendale Federal Savings. The five properties were
purchased with cash and a promissory note of $1.2 million. The Agency has been paying
interest only on the promissory note since its execution. The five properties are approximately
50% of the total area of Area 4S.
The Agency has selected BRIDGE Housing Corporation and the Martin Group/Holliday
Development to develop the site. The BRIDGE portion will be 86 affordable apartment units;
the Martin/Holliday portion will be 54 market-rate townhouses. The property lines for these
two portions of the development do not coincide with the properties that are subject to the
Glendale Federal Note. Their approval was sought for a lot line adjustment and a change in
CONTINUED ON ATTACHMENT: xx YES SIGNATURE:'1�r�' /�
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF GENCY
COMMITTEE APPROVE OTHER
SIGNATURE(S):
ot
ACTION OF AGENCY ON PPROVED AS RECOMMENDED X @*MR
VOTE OF SUPERVISORS
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 THE REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
Contact: Jim Kennedy (335-1255)
cc: Community Development
Redevelopment ATTESTED
CAO PHIL BATCHELOR,
County Counsel AGENCY SECRETARY
Auditor Controller
Via Redevelopment:
Goldfarb & Lipman
X/de wp6\98 I 0\21 I area4.bos
the security for their loan. BRIDGE Housing, as part of its Plan of Finance, will be paying
the Agency, within the next 30 days, $600,000. The Agency in turn will pay off$600,000
of the $1.2 million GlenFed Note. The remaining $600,000 will be paid to the Agency by
the Martin/Holliday interests as they build out the townhouses (expected over the next 12-
18 months). The GlenFed Note would then be retired.
Complications arose approximately September 15 when the assets of Glendale Federal
Savings were liquidated and merged with California Federal Savings. The Agency's long-
standing request for modification of loan terms literally had to start over from ground zero.
CalFed has indicated a willingness to modify under conditions that are not cost effective
(legal costs, title costs, loan fees, etc.) Furthermore, the interest on the Note is now
substantially above prevailing market rates. it makes financial and administrative sense
to totally pay off the GlenFed (now CalFed) note by borrowing restricted funds from the
County at this time.
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