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Home My WebLink AboutMINUTES - 03251986 - 2.7 )0 A -ro: BOARD OF SUPERVISORS FROM: Anthony A. Dehaesus wn,��,t ra DATE: Director of Community Development l^.r March 17, 1986 Costa Courty SUBJECT: West Pittsburg Rivershore Apartments SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION REFERRAL: See attached memorandum for Supervisor Torlakson. RECOMMENDATION: Waive the fee established by the West Pittsburg Area Road Fee Ordi- nance No. 85-59 for Rivershore Apartment Project. THE PROJECT: The project consists of a multifamily residential rental housing devel- opment in West Pittsburg. The project is designed to consist of 245 apartment units. The project is to be located on Willow Pass Road, northeast of the intersection of Willow Pass Road and Port Chicago Highway. Twenty percent of the dwelling units will be reserved for occupancy by individuals or families of low or moderate income. The site consists of approximately 11.7 acres. The project will consist of 25 apartment buildings and a recreation building which will include the leasing office. The project design calls for a total of 530 parking spaces, including 246 covered spaces. It is designed to include 56 three-bedroom two-bath units with approximately 988 square feet of floor space, 144 two-bedroom two-bath units with approximately 825 square feet of floor space and 44 one-bedroom one-bath units with approximately 646 square feet of floor space. Construction of the project is expected to commence December 1, 1985 and should be completed in ap- proximately 10 months. THE OWNER: 700 Market Associates XXXVI is a California general partnership consist- ing of FNS Mortgage Service Corp. , a California corporation, and Riley-Bower Apart- ments VII, a California limited partnership whose general partner is Riley-Bower, Inc. FNS Mortgage Service Corp. is a wholly-owned subsidiary of First Nationwide Savings. First Nationwide Savings, in turn, is the principal wholly-owned subsidiary of First Nationwide Financial Corporation. First Nationwide Savings is also the issuer of the Letter of Credit and the originator and servicer of the Project Loan under the Agree- ment. Riley-Bower, Inc. , the general partner in Riley-Bower Apartments VII, the other gen- eral partner in 700 Market Associates XXXVI, is a California corporation incorporated in 1983 as the successor to the Riley-Bower Development Company, a General partner- ship formed in California in 1980. Riley-Bower, Inc. will act as the general con- tractor for the project financed with the bond proceeds, and as property manager for this project. CONTINUED ON ATTACHMENT: YES SIGNATURE' ' RECOMMENDATION OF COUNTY ADMINISTRATOR EC MEND TI N OF BOARD COMMITTEE - APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON March 25, 1986 APPROVED AS RECOMMENDED x OTHER Supervisor McPeak ABSTAINED because of possible Conflict of Interest. Supervisor Torlakson clarified that he had recommended that the matter be referred to Community Development Department and County Counsel, and that he was supporting their recommendations. VOTE OF SUPERVISORS 1 HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS (ABSENT �! AND CORRECT COPY OF AN ACTION TAKEN AYES: II,III,V,I NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: IV OF SUPERVISORS ON THE DATE SHOWN. CC:County Administrator ATTESTED County Counsel PHIL BATCHELOR, CLERK OF THE BOARD OF Public Works Department SUPERVISORS AND COUNTY ADMINISTRATOR Supervisor Torlakson Craig F. .Anderson �� M382/7-83 BY 'DEPUTY Board of Supervisors Page 2 March 17, 1986 West Pittsburg Rivershore Apartments Since 1980, Riley-Bower, Inc. , its predecessor entities and their principals and af- filiates have developed or are developing 12 separate multifamily projects, consist- ing of more than 1400 rental units and 130 condominium units in California. Its business, includes the planning, design, construction, merchandising and managing of multifamily properties. BOND FINANCING: Multifamily Mortgage Revenue Bonds in the amount of $11,730,000 have been issued, of which $11,200,000 will be loaned to the project for its development. These bonds have been issued with 9.25% rate initially with a thirty year amortiza- tion (interest only for the first three years) and a balloon in fifteen year. With these bonds 20% of the units (49 including a 9 one-bedroom, 29 two-bedroom and 11 three-bedroom) will be reserved for families of low and moderate income. DEVELOPMENT COSTS: An estimated $11,635,000 will be required for land, improvement and financing costs. This comes to approximately $47,500 a unit. This amount in- cludes approximately $526,000 for water main, sewer and streets/sidewalk improvements on and off site. WEST PITTSBURG AREA ROAD FEE: Ordinance No. 85-59 establishing a road fee was adopt- ed on September 24, 1986 and became effective on November 25, 1986. the fee amount was set at $1,210 a dwelling unit. For the Rivershore Apartment project, the total fee would amount to $296,450. CHRONOLOGY OF EVENTS: 7-8-85 Rivershore Apt. Development Plan (3023-85) was approved. 7-19-85 Development Plan approval became effective. 7-20-85 Notices were sent to all record property owners that a hearing was scheduled on August 6, 1985 to consider a road fee ordinance for the West Pittsburg area. Emerald American Corp. was owner of record of the subject property. 8-6-85 First hearing on road fee area ordinance was continued to August 27, 1985. 8-20-85 Inducement date for $11,730,000 Multifamily Mortgage Revenue Bonds. 8-27-85 Second hearing on road fee area was continued to September 24, 1985. 9-10-85 Emerald American Corp. transfer of subject property to Riley-Bower, Inc. was recorded. 9-24-85 West Pittsburg Road Fee Ordinance No. 85-59 was adopted. 10-17-85 Storm drain plan for the Riverside Apt. project was approved. 10-22-85 Bond sale resolution was adopted. 10-25-85 Bond sale contract was signed. 11-8-85 Bond closing took place. 11-15-85 Grading permit for the project was issued. 11-25-85 Off-site improvement plans were approved. 11-25-85 West Pittsburg Road Fee Ordinance became effective. Board of Supervisors Page 3 March 17, 1986 West Pittsburg Rivershore Apartments JUSTIFICATION FOR WAIVER: The development approval process and consummation of pub- lic financing occurred prior to the effective date of the West Pittsburg Area Road Fee Ordinance. On July 20, 1985 notice's for the August 6, 1985 hearing on the ordi- nance for the West Pittsburg Road Fee were sent to all record property owners. At that time, Emerald American Corp. was the owner of record of the subject property. Since then, Emerald American Corp. sold the property to Riley-Bower, Inc. who record- ed the transfer on September 10, 1985 at which time the ordinance was adopted. Riley-Bower, Inc. , the new owner was not aware that proceedings on a road fee area ordinance were in progress. If they were aware, the projected road fee could have been covered by the bond sale. It was not. Also, if they were aware, they could have easily picked up the building permit for the Rivershore Apartment project prior to the effective date of the road fee area ordinance. Substantial on-site and off-site drainage work, water main improvements and street/sidewalk work underway prior to the effective date of the road fee area ordi- nance is now being completed. A major feature of this project is to provide rental housing for low and moderate income people. This is why the bond program is being provided for this project. Forty-nine units (20% of the project) will be set aside for a twelve year period for this purpose. This will include three bedroom rentals which are essentially unavail- able in the market today and have not been for many years. The rents on the market rate units (80% of the project are not reserved for low and moderate income people) are very near restrictive rent levels of the 20% units. This would indicate that the entire project would be very affordable within the context of new rental housing being built in the County. As one can see, the imposition of the unanticipated road fee onto this project would make it very difficult to maintain this project as a totally affordable project in addition to the 20% that must be reserved. Again, if Riley-Bower, Inc. had been aware that a road fee area ordinance was being considered, monies for this fee could have been included in the bond sale. ?. Tom Torlakson s L .o� 45 civic Avenue �__ ��-� — Pittsburg,California 94565 "iN 7 Y (415)439-4138 JH Supervisor,District Five Contra Costa County Board of Supervisors 1 wiupV ? qq , v rz oosrA,covx`� DATE: January 28, 1986 TO: Anthony Dehaesus, Community Development Department Vic Westman, County Counsel / FROM: Supervisor Tom Torlakson 4 SUBJ: WEST PITTSBURG APARTMENTS RILEY-BOWER - COUNTY TRAFFIC FEES CRAIG ANDERSEN LETTER, DATED 1/21/86 (ATTACHED) ------------------------------------------------------------ I am .referring the above-referenced letter to you. Please check the allegation regarding lack of notification. What notice did we give the property owners? Where do we stand legally? TT:gro Attachment P',4 :v ANDERSEN AND BONNIFIELD ATTORNEYS AT LAW JAA� MITCHELL A. STEVENS 1355 WILLOW WAY-SUITE 255 MAIL"I IVq A5 R. M.SONNIFIELD CONCORD, CALIFORNIA 94520 P. O. BO CRAIG F.ANDERSEN CONCORD CA 94524 SAMUEL J. FREEMAN,JR. (41S) 825-5100 1 7'`; o„ te , ., ;• .:. J.STEPHEN INGERSOLL-THORP KARaEN�IA. STEWART LAW 11_CLERK January 21 , 1986 Supervisor Tom Torlakson Board of Supervisors District 5 45 Civic Avenue, #110 Pittsburg, California 94565 RE: WEST PITTSBURG APARTMENTS RILEY-BOWER - COUNTY TRAFFIC FEES Dear Supervisor; Torlakson: I sincerely appreciated the opportunity to meet with you and members of your staff regarding the above-referenced matter. It is my understanding as per our conference with James Kennedy that we cannot go out for a new bond issue to cover the addi- tional road improvement fees on this project. Since our meet- ing, I have obtained additional information regarding the application process . According to my client, the architectural plans were submitted to the County of Contra Costa Building Department on September 25 , 1985 . Also, according to my client, no n i received from the County of Contra Costa either on an official level or unofficial level during the application process . As per our meeting, I believe there are two issues before US . One is the hardship upon the developer and two is the notice requirements . Obviously, we do not wish to get involved in any type of litigation as I believe that would defeat the intent of the ordinance and it would be costly to all part-ies concerned. I will continue my investigation of the pertinent facts and advise you of the results . We are most concerned regarding this project as an increase in the rent structure will obviously defeat the purpose of providing affordable housing within the West Pittsburg area. s Supervisor Tom Torlakson -2- January 21 , 1986 Again, I sincerely appreciated the opportunity to meet with you and discuss this problem. I will keep you advised as this matter progresses . Thanks again for your time . Very truly yours, rigF. CAndersen CFA:mc