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HomeMy WebLinkAboutMINUTES - 05161995 - 1.56 TO: REDEVELOPMENT AGENCY FROM: Victor J. Westman, County Counsel DATE: May 16 , 1995 SUBJECT: NORTH RICHMOND SENIOR HOUSING DEVELOPMENT - LEGAL ISSUES RELATING TO ACQUISITION OF HOUSING AUTHORITY PROPERTY BY REDEVELOPMENT AGENCY SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS AUTHORIZE County Counsel to act as legal counsel on behalf of both the Contra Costa County Redevelopment Agency and the Housing Authority of the County of Contra Costa, in order to facilitate the transfer to the Redevelopment Agency of possession and title to certain property owned by the Housing Authority, which is located within the North Richmond Redevelopment Project Area and is necessary for the North Richmond Senior Housing Project, whether such property transfer occurs through the process of eminent domain or otherwise . FISCAL IMPACT A potential savings to both public entities resulting from the fact that neither will be required to employ outside legal counsel . BACKGROUND/REASONS FOR RECOMMENDATIONS A 52 unit very-low and moderate-income senior housing development (the North Richmond Senior Housing Project) is being developed by the Community Housing Development Corporation of North Richmond (CHDC) , a non-profit housing development corporation, in conjunction with Eden Housing, Inc, also a nonprofit housing development corporation, within the North Richmond Redevelopment Project Area. The site is approximately 2 acres and is currently occupied by 8 relatively substandard residential units, approximately 6 , 800 square feet of commercial space, and 9 vacant lots . The block bounded by 2nd, 3rd, Grove and Chelsey has been identified as the appropriate site . CONTINUED ON ATTACHMENT: x YES SIGNATUREd "ave RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF OARD COMMITTEE APPROVE OTHER SIGNATURE (S) : ACTION OF BOARD ON _ �Q gs­ APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS 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 BOARD OF SUPERVISORS ON THE DATE SHOWN. ATTESTED PHIL BATCHELOR, CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR 4 BY� DEPUTY CC : Jim Kennedy, Deputy Director Redevelopment Richard J. Martinez, Housing Authority Executive Director Sharon L. Anderson, Deputy County Counsel CONTACT: Sharon L. Anderscn, Deputy County Counsel (646-2064) sla18\a:\northric.bdo On September 13 , 1994 , the Redevelopment Agency entered into a Disposition, Development and Loan Agreement (DDLA) with CHDC for the development of the senior housing project . The DDLA provides for the acquisition and conveyance of certain real property, the demolition of the existing improvements on the real property, and the construction of the project . The DDLA also requires the Redevelopment Agency to purchase, assemble and convey the required real property, a total of 21 parcels, to CHDC. One of the properties in question is owned by the Housing Authority of the County of Contra Costa . The County Counsel' s Office is legal counsel to both the Redevelopment Agency and to the Housing Authority. Pursuant to a Declaration of Trust recorded against the property by the Department of Housing and Urban Development (HUD) , the Housing Authority is prohibited from selling the property without HUD approval . We have been advised by the Housing Authority that an action in eminent domain against the Housing Authority is the quickest method of soliciting HUD approval . We have also been advised that, subject to HUD approval , it is the intention of the Housing Authority and the Redevelopment Agency to enter into a stipulated judgment transferring title to the subject property to the Redevelopment Agency for the appraised value of the property. Inasmuch as both the Housing Authority and the Redevelopment Agency are in agreement as to the price of the property to be acquired by the Agency, and the primary purpose of the action is to solicit HUD approval , it is recommended that the Board authorized County Counsel to act as legal counsel to both the Agency and the Housing Authority for the purpose of concluding the property transfer, whether the transfer occur by eminent domain or otherwise . -2-