HomeMy WebLinkAboutMINUTES - 05311994 - 1.32 f' l
Contra
TO: REDEVELOPMENT AGENCY
Costa
FROM: Phil Batchelor ' , ;�`�
County
Executive Director
DATE: June 7, 1994
SUBJECT: Bay Point Redevelopment Area - Construction Loan for 112 Alves Lane Project in Bay Point
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE the use of$80,000 in Fiscal Year 1994-95 Bay Point Redevelopment Project Area funds for
a construction loan to Resources for Community Development for the Alves Lane affordable
housing project; and
AUTHORIZE the Deputy Director to execute an Amended Loan Agreement with Resources for
Community Development.
FISCAL IMPACT
No General Funds are involved. The monies will come from the Bay Point Redevelopment Project Area
housing funds for Fiscal Year 1994-95.
BACKGROUND/REASONS FOR RECOMMENDATIONS
Resources for Community Development (RCD), a non-profit housing developer, will be constructing 14
low and moderate income units at 1]2 Alves Lane in Bay Point. The anticipated construction date
for these fourteen new two-and-three bedroom units is July 1, 1994.
With the support of the Bay Point Project Area Committee (PAC) and approval from the Board of
Supervisors, $440,000 in housing set-aside funds have been allocated to this project. These funds are
to be used for predevelopment activities and housing construction. RCD requested an additional
$80,000 to be used solely as a construction loan.
CONTINUED ON ATTACHMENT: _ YES SIGNATURE: �?
RECOMMENDATION OF EXECUTIVE DIRECTOR_RECOMMEN T ON OF AGEN Y COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF AGENCY ON May 31 , 1994 APPROVED AS RECOMMENDED x OTHER_
VOTE OF COMMISSIONERS
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 REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
Contact: Jim Kennedy
646-4076 ATTESTED May 31 , 1994
cc: Redevelopment PHIL BATCHELOR,
County Counsel AGENCY SE ETA Y
County Administrator
RCD BY , DEPUTY
This$80,000 construction loan would be repaid, at a market rate of interest, upon the completion of
the Project and securement of all permanent financing monies. The Bay Point Redevelopment Project
Area Committee unanimously recommended this action to the Redevelopment Agency.
Additional information is provided as Exhibit A.
a:\ed2\rcdcloan.bo
E4.9
1994 01:09PM FROM Rscs for Comm Deve1 TO 6464204 P.02
EXHIBIT A
I
- I
`MEMORANDUM
TO: )arnes Kennedy,Ccmtra Costa Redevelopment Agency
FROM Michael Rogers,RCD
DATlc: 5/3/94
RE: Request for contingent construction lean for 112 Alves Lane
As Resources for Community Development(RCD)nears completion of the 112
Alves Lane predevelopaient stage,RCD has one request of the Contra Costa
County Redevelopment Agency(RDA)to close the predevelopment stage and
begin the construction phase.
in the initial construction finar cine,plan ftx 112 Alves Lane,we expected that a
substantial portion nearly$1,000,0W—would be financed by a conventional
constructhm loan. however,the California Equity Fund(CHF)—the purchaser
of 112 Alves Lane's alk)cation of low income housing tax credits—will provide
most of its equity at the start of the construction period. This early pay-in
significandiy reduces the need for a construction loan to approximately 580,000. I
Therefore,RCD requests of the RDA it "cuntingent"construction loan of
approximately$80,000. Loan proceeds will be dispersed after all other
construction sources have been exhausted—sometime in the spring of 1995--
-md only if necessary- In so far as savings axe-realized during the course of i4
construction,the County construction loan will not have to be drawn upon In
the event that draws do occur,the perfmaLnentbudget contains funds sufficient to I
repay a the County.
RDA construction financing will expedite the development process as well as
allow 112 Alves lin¢to experience savings in the form of reduced anterest cost
and processing fees.
The 112 Alves Lame developnnimt schedule requires that tate RDA complete its
actions (i.e.,complet,6 loan documents and "close"the loan)on this request by
June 15,1993.
t
W-cm Pito"PAC R"utst
I
TOTAL P.02
MAY-07 -1994 14:07 510 548 3502 P.002