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Home My WebLink AboutMINUTES - 04191994 - 1.184 1 . 184 through 1 . 187 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on April 19,1994, by the following vote: AYES: Supervisors Smith, DeSaulnier, Torlakson and Bishop NOES: None ABSENT: Supervisor Powers ABSTAIN: None -------------------=---------------------------------------------------------- ------------------------------------------------------------------------------ SUBJECT: CORRESPONDENCE Item No. 1.184 LETTER March 25, 1994, from Scott K. Zimmerman, P.O. Box 1120, Brentwood 94513, attorney representing Nino Frumenti, regarding payment of the developer's fee for the Casa Del Rio project in Antioch. ***REFERRED TO EXECUTIVE DIRECTOR, HOUSING AUTHORITY,AND COUNTY COUNSEL 1.185 LETTER dated March 15, 1994, from Mike Yeraka, General Manager, Diablo Water District, P.O. Box 127, Oakley 94561, transmitting a proposed amendment to the District's Conflict of Interest Code. ***REFERRED TO COUNTY COUNSEL 1.186 LETTER dated March 14, 1994, from David Flint, Chairman, Benefit Assessment Legislation Task Force, California Library Association, P.O. Box 7011, Downey 90241, requesting the Board to support proposed legislation SB 1448 (Roberti) that would make available benefit assessment financing for library services. (Consider with Legislation SB 1448) 1.187 LETTER received March 31, 1994, from R. C. Blaser, 684 Blue Spruce Drive, Danville 94506, requesting that the County expedite the removal of a fence intruding into the common area of his subdivision. ***REFERRED TO COMMUNITY DEVELOPMENT DIRECTOR cc: Correspondents County Administrator I hereby certify that this is a true and correct copy of Housing Authority an action taken and entered on the minutes of the Board of Supe is�o,rs,,p��the date shown. County Counsel ATTEST ED:_« Int, IQG� Community Development PHIL BATC ELOR., Clerk of the Board of Supervisors a Couit,, ?d inistrator BY _.......... Deputy Law Offices of •�g� SCOTT K. ZEMMERMAN Attorneys at Law Post Office Box 1120 812 First Street -Suite "A" Brentwood, California 94513-1120 Scott K.Zimmerman Barbara E.Scramstad Telephone:(5 10)634-3571 Maureen M. Bryan,Paralegal _ Facsimile:(510)634-0781 ECEIVED VIA FACSIMILE AND U.S. MAIL �- (510) 646-1059 MAR 2 8 1994 March 25, 1994 CLERK BOARD OF CUPERVISORs Administrative Offices of the CONTi'.::COSTA CO. Contra Costa County Board of Supervisors County of Contra Costa 651 Pine Street, Room 106 Martinez, CA 94553 Attn: Anne Re: Casa Del Rio, Antioch - Failure of the Contra County Housing Authority to pay the Developer's Fee for the project. Dear Anne: At the direction of my client, Mr. Nino Frumenti, and consistent with his discussion with you, I enclose a copy of the letter directed this date to the Honorable Tom Powers, indicating the subject matter which Mr. Frumenti would like the Board of Supervisors t consider at its next meeting, which I believe to be April 12, 1994. I would appreciate your adding this matter to the agenda, and your confirming with our office the date and time of the meeting, and that we have been added to the agenda. I thank you for your anticipated courtesy and cooperation in this matter; should you have any questions, please call. Very truly yours, L Of�� f Scott K. Zimmerman co mime an sKZ:st Enclosures cc: Client w\enclosures Housing Authority - Richard Martinez Honorable Tom Powers FPI County Counsel Law Offices of SCOTT K. ZIM ERMAN Attorneys at Law Post Office Box 1120 812 First Street -Suite "A" Brentwood, California 94513-1120 Scott K.Zimmerman Barbara E. Scramstad Telephone:(510)634-3571 Maureen M.Bryan,Paralegal Facsimile:(510)6340781 VIA FACSIMILE AND U.S. MAIL March 24, 1994 The Honorable Tom Powers Chairman, Board of Supervisors, County of Contra Costa 651 Pine Street, Room 106 Martinez, CA 94553 Re: Casa Del Rio, Antioch Dear Supervisor Powers: I have attached a copy of a Personal and Confidential Memorandum received from FPI and directed to Mr. Nino Frumenti requesting Mr. Frumenti's position re his acquiescence with the offer from the Housing Authority to accept a reduced development fee of $190,000.00 for the above project. Because of the relationship between Mr. Frumenti and FPI, Mr. Frumenti's agreement is required prior to any settlement for less than the full $340,000.00 development fee. Mr. Frumenti's position is that he will not consent to a reduction of the Development fee to $190,000.00 from the originally budgeted fee of $340,000.00. 1 understand from my review of the communications between FPI and the Housing Authority that at least $240,000.00 is available for the payment of the now overdue developer's fee. I also understand that FPI has made an offer to carry the balance due FPI from the Housing Authority over time. All of these offers have apparently been rejected, and the Housing Authority is apparently unwilling to pay the full amount of its obligation. Mr. Frumenti is aware that the Housing Authority required FPI to enter into an agreement which purportedly requires FPI to adhere to a policy of secrecy surrounding the negotiations of the proposed settlement from the Housing Authority, and the discussions attendant thereto. It is our position that Mr. Frumenti is not a party to, and is not therefore bound by any such agreement to keep the public unaware of the machinations of the Housing Authority in such "secret" negotiations. Mr. Frumenti has therefore determined to request that the matter of the payment of the Developer's fee by the Housing Authority be on the April 12, 1994, agenda for the full Board of Supervisors meeting. The treatment that FPI has received (and therefore Mr. Frumenti has Law Offices of Scott K. Zimmerman Pa.-e:2 received indirectly) from the Housing Authority is atrocious. FPI performed its contracted services, and now the Housing Authority has reneged on its contractual obligation, even though a significant portion of the supplemental funding for the project was earmarked for the payment of the Developer's fee. It is Mr. Frumenti's position that a full PUBLIC review of the facts and circumstances surrounding the current position of the Housing Authority, and an exposition of the historical steps which have preceded the present impasse, would be enlightening to the public in general, and the Supervisors specifically, if not specifically to assist in the resolution of this matter, at least for the enlightenment of the Supervisors so that future actions taken under its apparent authority are handled in an ethical, and legally appropriate manner. I thank you for your courtesy and cooperation in this matter; should you have any questions, please contact the undersigned at your pleasure. Very truly yours, -f L�T ffik of_Sew K. Zimmerman �. mme an SKz:s t Enclosures cc: Client w\enclosures file Law Offices of -qj-j SCOTT K. ZIMMERMAN Attorneys at Law Post office Box 1120 812 First Street — Suite "A" , Brentwood, California 94513-1120 Scott K. Zimmerman Barbara E. Scramstad Telephone: (510) 634-3571 Maureen M. Bryan, Paralegal Facsimile: (510) 634-0781 VIA FACSIMILE AND U.S. MAIL (510) 646-1059 Monday, April 18, 1994 Administrative offices of the Contra Costa County Board of Supervisors County of Contra Costa 651 Pine Street, Room 106 Martinez, CA 94553 Attn: Anne RE: CASA DEL RIO, ANTIOCH - FAILURE OF THE CONTRA COUNTY HOUSING AUTHORITY TO PAY THE DEVELOPER'S FEE FOR THE PROJECT. Dear Anne: At the direction of my client, Mr. Nino Frumenti, I hereby request that the above matter be continued on the Board of Supervisors calendar from tomorrow, April 19 , 1994 , to Tuesday, April 26, 1994 . Should there be any problem with this continuance, please contact me at the above numbers immediately. ' I thank you for your continued courtesy and cooperation in this matter; should you have any questions, please call. Very—trul ours f f jrles f cott K. Zimmerman f c Scot Zimmerm n SKZ:s t Enclosures cc; Client w\encLosure�s 'o , Housing. Author;j y - Richard Martinez Honora�te—T-em'powers FP1 County Counsel ell- Ct Elf cotil Law offices of SCOTT K. ZIMMERMAN Attorneys at Law Post office Box 1120 812 First Street - Suite "A" Brentwood, California 94513-1120 Scott K. Zimmerman Barbara E. Scramstad Telephone: (510) 634-3571 Maureen M. Bryan, Paralegal Facsimile: (510) 634-0781 VIA FACSIMILE AND U.S. MAIL Monday, April 18, 1994 Mr. Morrison C. England, Jr. QUATTRIN, JOHNSON, COMPORA & ENGLAND 25 Cadillac Drive Suite 100 Sacramento, Ca 95825 Re: #197 Casa Del Rio Senior Housing Project, Antioch Dear Morrison: I have been instructed by Nino Frumenti to continue the presently scheduled hearing before the Board of Supervisors from tomorrow, the 19th, to Tuesday, April 26, 1994. It is my understanding that this delay will provide you with additional time to complete your negotiations with County Counsel. Please advise at your earliest convenience. Very truly yours, fi S/Itof- Ott K. Zimmerman Sc erman SKZ:nj L cc: client d:\bus\nino\engLa 18 P1AR 2'4 +4 i0 ZCDFfl FrPT" -Pt,IPr_'c.i'IEr-IT P. ?FPlal Estate CrOUD 23 CADILLAC Gft1VE SACRAME,ti"7C), CA 93825 (916) 929.3636 FAX. (916) 920-2764 PERSONAL AND CONFIDENTIAL - MEMORANDUM DATE: March 24, 1994 To: Nino Frumenti Re: Casa Del Rio, Antioch The purpose of this memorandum is to inform you that the maximum development fee being proposed by the Housing Authority as our payment for all of the development work on this project is $190 , 000. As you are aware, we have worked on this project in excess of five years . This would equate to all of us including yourself making less than the minimum hourly wage rate. This amount is substantially less than the $340, 000 which we have consistently stated is due and owing on this project. We believe that the syndication proceeds for this project that will be funded by the low income housing tars credits and the funds that are, or could be, available from the tax increment financing (which we had arranged with the City of Antioch) certainly allow payment of the full amount. Our belief is that the Authority plans to utilize funds over the $190 , 000 level for other Authority programs and projects. While the net proceeds to the Authority from the tax credit syndication can be used essentially as they Irish, we believe that payment of project expenses and debts including our development fee -of $340,000 must be paid prior to any other development activities by the Authority. Neither FPI nor yourself should be put in the position of having to accept discounted fees or a significant reduction in the amount that is due and payable so that a government financed agency can utilize that money for its other purposes. As usual , Nino, the history of the project and our contributions to the success of the project and the fact that 84 very low income units are now ready for occupancy in a matter of days are forgotten when it is time to pay the bills that are due and payable.Due to the fact that you are a beneficiary of a portion of the fees received, we need your input on this matter. Jay R. Flatt cc: Morrison England, Esq. and Scott Zimmerman, Esq. Law Offices of SCOTT X. Z I1[KBRKAN Attorneys at Law Post Office Box 1120 812 First Street — Suite "A" Brentwood, California 94513-1120 Scott K. Zimmerman Barbara E. Scramstad Telephone: (510) 634-3571 Maureen M. Bryan, Paralegal Facsimile: (510) 634-0781 VIA FACSIMILE AND U.S. MAIL (510) 646-1059 (� Monday, April 18, 1994 Administrative Offices of the Contra Costa County Board of Supervisors County of Contra Costa 651 Pine Street, Room 106 Martinez, CA 94553 Attn: Anne RE: CASA DEL RIO, ANTIOCH - FAILURE OF THE CONTRA COUNTY HOUSING AUTHORITY TO PAY THE DEVELOPER'S FEE FOR THE PROJECT. Dear Anne: At the direction of my client, Mr. Nino Frumenti, I hereby request that the above matter be continued on the Board of Supervisors calendar from tomorrow, April 19, 1994 , to Tuesday, April 26, 1994 . Should there be any problem with this continuance, please contact me at the above numbers immediately. I thank you for your continued courtesy and cooperation in this matter; should you have any questions, please call. 1 ours, ffi es` of cott K. Zimmerman Scot Zammerm n SKZ:st ( / Enclosures cc: Client w\enclosures Housin Author' y - Richard Martinez Honorab Powers FPI County Counsel 'VF ':r` [p, 9 1��C�"�v�ERVISORS OSTA Cly. Law Offices of SCOTT R. -ZIMMERMN Attorneys at Law Post Office Box 1120 812 First Street - Suite "A" Brentwood, California 94513-1120 Scott K. Zimmerman Barbara E. Scramstad Telephone: (510) 634-3571 Maureen M. Bryan, Paralegal Facsimile: (510) 634-0781 VIA FACSIMILE AND U.S. MAIL Monday, April 18, 1994 Mr. Morrison C. England, Jr. C QUATTRIN, JOHNSON, COMPORA & ENGLAND 25 Cadillac Drive ` Suite 100 6 Sacramento, Ca 95825 Re: #197 Casa Del Rio Senior Housing Project, Antioch Dear Morrison: I have been instructed by Nino Frumenti to continue the presently scheduled hearing before the Board of Supervisors from tomorrow, the 19th, to Tuesday, April 26, 1994 . It is my understanding that this delay will provide you with additional time to complete your negotiations with County Counsel. Please advise at your earliest convenience. Ver truly yours, iSc2f i S �of� -Ott R. Zimmerman erman SKZ:njl cc: Client d:\bus\nino\england:a18 EA., ,� 'APR 19 199 K 80�F2D O� Q 1SORS C��R �1 s 0.r tN4� oli VST 4iY MUD R W w E-•+ O 1-4 E, a 'e, CO) � rjo � v oW cn y14 H 1 H F4 P4 E-4 1-4 14. C'4v v U Ln td ° o a C °° 7 ,