HomeMy WebLinkAboutMINUTES - 01092001 - C99 TO: BOARD OF SUPERVISORS , .. Contra
FROM Dennis M. Barry, AICD
� Cosa
Community Development Director' „__, A County
DATE: January 9, 2001
SUBJECT: CDBG Loan to Antioch for the Antioch Marina Development
SPECIFIC REQUEST(S)OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
ACCEPT the$138,500 contribution of the City of Antioch for the development of the Central County
Emergency Shelter and the East County Homeless Transitional Facility as payment for the outstanding
balance of $128,400:in principal and interest due on the County's `1985 loan of Community
Development Block Grant funds to the City for the Antioch Marina Development.
FISCAL.IMPACT
No General Fund impact. The original loan was made from County Community Development Block
Grant (CDBG) 'funds. CDBG funds are allocated to the County on an annual basis by the U.S.
Department of Housing and Urban Development(HUD).
BACKGROUND/REASONS FOR RECOMMENDATIONS
In 1985, The County allocated $150,000 in CDBG funds to the City of Antioch to assist in the
development of a 269-berth marina located at the end of `<L" Street in the City (CDBG Project
Agreement 10-3'). The funds were provided in the form of a deferred loan'at 4 percent' `mple interest
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
_COMMENDATION OF COUNTY ADMINISTRATOR ECOMM NDATION OF ARD
COMMITTEE
APPROVE OTHER
I
SIGNATURE(S):
ACTION OF BOARION ;January 9.. 2001 APPROVED AS RECOMMENDED x OTHER
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 BOARD OF
* (District V seat is vacant) SUPERVISORS ON THE DATE SHOWN.
Contact Kathleen K. Hamm(925) 335-1257 ATTESTED .Lgn11 ,r1z 9, 2no l
Orig/cc Community Development Dept. PHIL BATCHELOR,CLERK OF
cc County Administrator THE BOARD OF SUPERVISORS
County Counsel AND COUNTY ADMINISTRATOR
City of Antioch(via CDD)
BY ,DEPUTY'
with the following repayment provision: loan to convert to an amortized loan on the earlier to occur of
July 1,1995,or the point at which revenues generated by the Marina:were adequate to ever operations
and debt service("breakeven point"). The terms of the amortization were to be negotiated between the
City and County at the time of conversion.The Agreement included a provision to permit forgiveness of
the loan in the event the City provided documentation approved by the County that the Marina would
not reach a breakeven,point within'a reasonable period of time.
According to information provided by the City,the Marina has never achieved a breakeven point.Over
the last five years,the Marina received subsidies from the City averaging$300,000 per year in order to
maintain operations, In a continuation of this trend, during FY 2000/01, the City will provide an
additional $300,000 to subsidize operations. The City is currently in the process of renegotiating the
terms of state bond loans on the project in an effort to reduce the annual subsidy requirements.
In 1994,the City of Antioch provided$100,000 in funds to support acquisition of the Central County
Emergency Homeless Shelter located in North Concord and requested that the County accept the
contribution as partial repayment of the Marina loan.On December 13, 1994,the Board of Supervisors
accepted the City's contribution as a partial loan payment(principal and accumulated interest),leaving a
remaining principal balance of$107,000.The current balance of the Marina loan with accrued'interest is
$128,400.
Since 1994,the City has contributed an additional$88,500 for the rehabilitation of the Central County
Emergency Shelter in North Concord and.$50,000 for the development of the Fast County Transitional
Facility ,,for Homeless Families in Antioch (total of $138,500).. The City has requested that its
contribution to the County homeless facilities be accepted by the Board as payment in full for the
remaining balance of Marina Lean.The City's request is supported by the fact the Marina has never
achieved a breakeven point and is unlikely to do so in the foreseeable future.
kWMarina 1