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Home My WebLink AboutMINUTES - 10102006 - C.78 i i Contra TO: BOARD OF SUPERVISORS Costa FROM: Dennis M. Barry, AICP County - j Community Development Director r ` DATE: October 10. 2006 SUBJECT: APPROVAL OF LEGAL DOCUMENTS AND CEQA DETERMINATION FOR WEST _ RIVERTOWN II APARTMENTS IN ANTIOCH SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION i RECOMMENDATIONS: (1) AUTHORIZE the Deputy Director. Redevelopment or his designee to execute required legal documents to provide $834.000 in HOME Investment Partnerships Act (HOME) funds to Antioch Eden Rivertown L.P. for the West Rivertown II affordable housing project in Antioch. (2) FIND, as the responsible agency. that the Negative Declaration prepared by the City of Antioch. as the lead agency. is adequate for purposes of compliance with the California Environmental Quality Act. (3) DIRECT the Community Development Director. or designee. to file a Notice of Determination for this project with the County Clerk. (4) DIRECT the Community Development Director. or designee. to arrange for payment of the $25 handling fee to the County Clerk for filing such Notice of Determination. FISCAL IMPACT: No General Fund impact. HOME funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development (HUD). BACKGROUND/FlEASONS FOR RECOMMENDATIONS: i On March 14. 2006. the Board of Supervisors approved an allocation of $834.000 in HOME funds for this project. The allocation was made to Eden Housing. Inc.. which has since formed a limited partnership. Antioch Eden Rivertown L.P.. (the "Partnership") with Eden Housing. Inc. as the managing general partner. The County will enter into legal i documents with the partnership. n i I CONTINUED ON ATTACHMENT: ® YES ❑ NO SIGNATURE 1611 i RECOMMENDATION OF COUNTY ADMINISTRATOR _RECOMMEND TION 0BOARD COMM'I'TTEE L—APPROVE _OTHER i I I SIGNATURE(S) ACTION OF 1311A {D ON (Meet LO, 2-CIP0 APPROVED AS RECOMMENDED '✓ O/HER � i VOTE OF SUPERVISORS / 1 HEREBY CERTIFY THAT THIS IS A TRUE AND '✓ UNANIMOUS (ABSENT 714W CORRECT COPY OF AN ACTION TAKEN AND AYES: NOES: ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Contact: Kara Douglas (925/335-7223) ATTESTED f Jf �Be-r 10. 2-00 cc: Community Development Department (CDD) JOHN CULLEN, CLERK OF THE County Counsel BOARD OF SUPERVISORS AND Auditor-Controller COUNTY ADMINISTRATOR Eden Rivertown via CDD BY // �`� , DEPUTY I I i These documents will include the following: • HOME Project Agreement between the County and the Partnership • HOME Loan Agreement between the County and the Partnership • Promissory Note from the Partnership to the County i • Deed of Trust with Assignment of Rents and Security Agreement from the Partnership to the County • Regulatory Agreement and Declaration of Restrictive Covenants between the County and the Partnership In addition, the County will enter into an Intercreditor Agreement among the partnership. the City of Antioch. and the Antioch Development Agency. The authority granted hereunder to the Deputy Director. or assignee. includes authorization to do i any and all actions and execute any and all documents necessary to implement the activities authorized under the loan documents. including execution of loan amendments or modifications for the purposes of agreeing to reasonable extensions of time deadlines, and estoppel certificates concerning the status of the Loan and the existence of Borrower defaults under the Loan Documents. i The purpose of the West Rivertown II project is to increase the supply of multi-family rental housing affordable to and occupied by lower income households in East County through the development of an 40-unit apartment building located at the corner of 7"' and I Streets in Antioch. The development includes one. two. and three-bedroom apartments. The project will have 4 units affordable to and occupied by households with incomes at or below 30 percent of the area median income (AMI). and 35 units will be affordable to,/occupied by households with incomes at-below 50 percent AMI. One unit will remain available for an on-site manager. Nineteen units will be designated as HOME-assisted units. All units designated as affordable will remain affordable to lower income households for a minimum of 55 years. The total cost of this project is S12. 849.041. The proposed development budget and sources of funds for this project are: Source Amount HOME funds S834.000 Antioch Development Agency 1.458.400 City of Antioch CDBG 225.590 Tax Credit Equity 8.920.853 Private Bank Loan 893,000 Sponsor EauitviDeferred Developer Fee 517.198 TOTAL $12,849.041 HOME funds will be lent at a three percent interest rate for 55 years. Antioch and County funds would be in a co-equal lien position. The County will be in a subordinate lien position to the private lender in both the construction and permanent financing phases. Due to the high construction costs and limited revenue from the restricted rents. the total amount of the financing provided to the project will likely exceed the value of the completed project. Even though the equity investment is substantial compared to the amount of long term debt. the partnership agreement has numerous safe guards of the investors equity. These safe guards essentially subordinate the County's debt to the investor's equity. Therefore. the County funds may not be fully secured through the value of the property. I HOME funds may be used for construction. soft costs. and permits and fees. Attachments: City of Antioch Notice of Determination County Notice of Determination On file with Clerk of the Board: HOME Loan Agreement Promissory Note Deed of Trust with Assignment of Rents and Security Agreement Regulatory Agreement and Declaration of Restrictive Covenants Intercreditor Agreement j NOTICE OF DETERMINATION To: -1 Of;ce of Planring and Researc^ From: City of An`.ioch PO Box 3C44 Dera�tment o CcT^ L pert Sacrar•.e^to. CA 95812-3044 DO Sox 501:)7 Antioch, CA °65.','-5CO?' l J Q6 Co:;n:y Clerk County c` Contra Cdsta I PO Box 91 Marjrez. CA 9-1x23' Subject: F;iinc of Notice o`Deterr-manor Ir corrpl`ance slit-[ Sect o- '152 of the Public Rescu-ces Cnce. i Project Title: 1 'es: Riverown Apar'mer.'s Phase 1'. PD-05-95. AR-05-04. I i State Clearinghouse Number: Decu-ren:v.•as not submitted to State C:FarrYnouse Lead Agency Contact Person: Ger•tn'. %ssistan. Planter a25 %035 aAllI %L G �" Project Location: The so,,the:eS: CCrr'.er of Seven:; anc 'I Streets. S.L. WE'li. COUNTY CLERK CONTRAZErSTU, OUNTY Project Description: DEPUTY Tc MaKe a Ge-reral Pian amencrne-.t frrm Med:urr Jens't' Resdential and t`'ixed Corpiy!ercia RoS: er'tis :o H;:_r Dench`, R4°s'Cen::al. a r82dne iron'. R'VBf:^�•r: LoL:� .te�ii.-r D.e'iS!N.!,�.{as;der?.al C:st- . :`R I .R ire) to a Ran"ied neve.,^,nmen, Dist."ct tD-D) and 'd Use Perri`1c allow tre � cor.smuct cr cf VC rous^a units. The DfDIeC: site is aDcroximately 1.r4. T-.is 'stq advise nal tre City of Ar,',oCh has approved the abcve c!escr'bed 'c!ec',on FSzrCr id. 200:6 arc' has made the `ol!c',r.'Inc deter-n:"..a`.ons mz:a'Cing 'he a�-%ove ^.es crided oryme I ` prd_ect Nall nc' have a 5'g 1"Icer: effec- c- the ern:.r,r;rert. 2. A Nedat!ve Decla'aticr was Drecnared for ir'S or o;e= ours iant 1C the 2'ovis'-s of C=QA "ti-atior rreas:;res ::e e no- -rade a cona.t.on cr toe appro_-ai c. the on ie i =. r sta.e-nert d`"0ve.rr:dlrig �-ons'oera ticns `l.'as not adopted 'or tl'IEPi prclec`. S. r:I"ci^o= wa-e made oure_,an`, to the or7:E51C`15 0` rC-=QI".+- 1; I S .Cvc?la• '�Iat t'.. Ilia' Nep_ati`:e Djciara..on witr comm-per's a:-,- reSDCnses a d re--n-rd C. tie Droles aDp'ova is available 'o the Genera' P:Ib'.c at ;re C+., .-A-tio:,r, .Com—r;-^It`: I :larch 2'. 20C•., II t.+inc;; Gest - Date ! Assis'an: Punnet ['1c:Q rer•Clt'a�: I Date ccsteC: De,e rc-^:•vec I I CALIFORNIA ENVIRONMENTAL QUALITY ACT NOTICE OF DETERMINATION I i CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT D=PARTMENT 65'. PINE STa=E— 4 =LOOR NORTH VYING MARTINEZ. CALI=ORNIA 94H3-0095 l Telermon_: '925: 335-7230 Co^tac: Pe-sor: Maureer 7 oras P"o'ect Descrlrlor. C-ommo-= Nar^e 1.1' a-v: and --cat o-: Wes- Rlverto-.l I: Aca-imems. =erne" aevent'- and - Streets. Antlocr.. CA ne D-•cl _ 'he „cnstru dict L_ a-: -C3c•ie ?DarRle,^„_ T^'I�VJe”'^.c^ n n^Us�^.^ISS 'n An::•^cr c vacari- In-til. site. i Yne -2-01-ec,y:as apo-oved or. Seme—me-2cE. 23-9E. Purs.:an-t--the Drovslons of the CaiiTorn:a Envro mental Qua!mi' Ac-.- A- Envirc-lmenta'. Impact Report was erepared ano certified (SCH j Tne Drolec'Naas e-icomvassed by ar Envl'•Jnmental 1-ncaC: Reoor:oremusi'Sv nreva'ed to' CH ''V .A Neroative De'la-at:D^• was issued Inrdicam- tha? n,soarat'o- of an E-)Vi'DnmE?-tal Imr.aC' ReDo"-was not reouired. CDo'es ct the recon of DrDlec-aDDrcva. an--the Neoative Decla-ation c-the Tina :-::IP ma`:oe eXammec ai trie �.frce r'f t^-- Contra Cost=_ Cou')'.y .ommuni:y Develoi)meri- De artmer:. Tne Droiec dl nct nave a signii;can' envlronmema effect. Tris Droiec-wi';; nave a s.gnli;can:environme^ia, eiTec:. I (`1 mamior measures :':ere maoc a condmor o' ap Droval of.i)e DrD_iec;. l A stat2me7- c- cverr?cl^^ c0nsiderat.•.^.rs was a7oriec rI^Dlras we re amciec rurs uan.tc Senor '.509 o-the State = h :JU:pell:ries. l i R`: Community Deve ODmen' ReDresen:lve AF=lDA:!I— 0= =1-RNG AND pOS T ING i 7eclara tna' -or I re..ewec ano. C^_sic_ 'n's '1Ci:cE a= re-cul e.. D-.- ..ai;:D-n;a P DDIIe- Resources ...cDe Section _ -,52.+c.. Sa•,d Doac_ .:. remain pD ied f^'30 raves 'ro-r.the T'el no ;a._ atu I - Tale - I D.Darrm--m offish an•a Game Fees Due: \arn Qn:mum De%ei b l)er: SIR-q'8 Teta: D'uc _ DeC. - __.—,f�_ to:fi' G3:C _ `7artinez- ' a 4 == D,%Iinilr: = :inair_s - y1 I-ount: bier:: - Receir)-= I I I I I I