HomeMy WebLinkAboutMINUTES - 12062005 - C144 416 r
- Contra
Costa
TO: BOARD OF SUPERVISORS Count /
'Co
FROM: Dennis M. Barry, AICP
Community Development Director
DATE: December 6, 2005
SUBJECT: CONTRA COSTA CRISIS CENTER REQUEST FOR THE COUNTY TO SUBORDINATE ITS
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) LOAN AND DEED OF
DEVELOPMENT RIGHTS
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION
AUTHORIZE the Deputy Director-Redevelopment to execute an agreement with Union Bank
subordinating the County's Community Development Block Grant loan and Deed of
Development Rights related to the Contra Costa Crisis Center(Crisis Center) property located
at 305 Lennon Lane in Walnut Creek.
FISCAL IMPACT
No General Funds are involved.
CONTINUED ON ATTACHMENT: X.YES SIGNATURE:
6Z4*W
RECOMMENDATION OF COUNTY ADMINISTRATO RECO NDATION OF/11OARD
COMMITTEE APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON���-00 c� APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT� - ) TRUE AND CORRECT COPY OF AN
YES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Source: Bob Calkins, CDBG Program Manager
(925) 335-7220
ATTESTED
Orig. Dept. Community Development - CDBG JOHN SWEETEN, CLERK OF
cc: County Administrator THE BOARD OF SUPERVISORS
Auditor - Controller AND COUNTY ADMINISTRATOR
County Counsel
BY � PUTY
NO
BACKGROUND /REASONS FOR RECOMMENDATIONS
In 1987, the Board of Supervisors approved the allocation of $75,000 in Community
Development Block Grant(CDBG)funds to Contra Costa Crisis Center(formerly known as
Crisis and Suicide Prevention of Contra Costa)to acquire a building located at 305 Lennon
Lane in Walnut Creek to house programs provided by the Crisis Center. The County
entered into a Deed and Promissory Note. The County Deed and Deed of Development
Rights are currently recorded against the property in second lien position to a first
mortgage held by Citibank.
Because the existing Citibank loan has a relatively small balance (approximately
$190,000), Citibank has notified the Crisis Center that they no longer want to carry this
loan on their books. Consequently,the Crisis Center has secured the approval from Union
Bank to take out the Citibank loan. The terms include a $190,000 loan ata 6.65% fixed-
rate for 10 years. No money will be taken out of the property which is currently valued at
approximately$1.5 million. The County's loan must be subordinated to facilitate the new
loan from Union Bank.