HomeMy WebLinkAboutMINUTES - 05112004 - C64 TO: REDEVELOPMENT AGENCY'/BOARD OF SUPERVISORS Contra
�.
n Costa
FROM: John Sweeten,Executive Director
County
DATE: May 11,2004
r
SUBJECT: Infrastructure Grant Agreement for Phase 4 of the North Broadway Infrastructure Project. —OBG at Bay
Point/Bay View Housing Development,Bay Point Redevelopment Project Area
SPECIFIC REQUEST(S)OR RECOMMENDATIONS(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. As the Board of Supervisors,ADOPT Resolution:
a. AUTHORIZING the expenditure of non-housing Redevelopment Agency funds in the amount of up to
$1,000,000 for the construction of certain public infrastructure improvements; and
b. FINDING the expenditure of Redevelopment funds for the infrastructure improvements is a benefit to the
project area;there is no other reasonable means to finance the improvements available to the County;will
assist in the elimination of blighting conditions in the neighborhood; and is consistent with the
implementation plan for the Bay Point Redevelopment Area.
2. As the Governing Body of the Redevelopment Agency, ADOPT Resolution:
a. APPROVING the expenditure of non-housing Redevelopment Agency funds in the amount of up to
$1,000,000 for the construction of certain public infrastructure improvements;
b. APPROVING the Agency Grant Agreement by and between the Contra Costa County Redevelopment
Agency and OBG at Bay Point,LLC for$500,000 of infrastructure improvements and up to$500,000 for
additional infrastructure improvements on a reimbursement basis for infrastructure idea `fled in Phase 4 of
the North Broadway Infrastructure Project; and - '�"
CONTINUED ON ATTACHMENT: X YES SIGNATURE L�
RECOMMENDATION OF EXECTUTIVE DIRECTORICOUNTY ADMINIS OR /
RECOMMENDATION OF AGENCYIBOARD COMMITTEE � J
� f
APPROVE OTHER `
SIGNATURES
ACTION OF BOAR D May 11, 2004 APPROVED AS REC ENDED x OTHER_
VOTE OF SUPERVISORS/COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT Nme ) AND CORRECT COPY OF AN ACTION
AYES: NOES: TAKEN AND ENTERED ON THE MINUTES
ABSENT: ABSTAIN: OF THE BOARD OF SUPERVISORS ON THE
DATE SHOWN
Contact: Maureen Toms, Community Development- 335- ATTESTED
1250 May 11, 2004
JOHN SWEETEN, AGENCY SECRETARY,
cc: Redevelopment Agency CLERK OF THE BOARD OF SUPERVISORS
County Administrator AND COUNTY ADMININISTRATOR
County Counsel t j
OBG At Bay Point via Redevelopment)
Goldfarb&Lipman(via Redevelopment) DEPUTY
Board of Supervisors
May 11,2004
Agency Grant to OBG
Page 2
RECOMMENDATIONS(continued)
c. FINDING the expenditure of Redevelopment funds for the infrastructure improvements is a benefit to
the project area;there is no other reasonable means to finance the improvements available to the County;
will assist in the elimination of blighting conditions in the neighborhood; and is consistent with the
implementation plan for the Bay Point Redevelopment Area.
FISCAL IMPACT
No General Funds would be used. The funding for the additional$500,000 in infrastructure is budgeted. Funding
for the tax increment rebate will be included in future budgets.
BACKGROUND/REASONS FOR RECOMMENDATIONS
On March 11,2003,the Board of Supervisors/Redevelopment Agency Board approved execution of the DDLA by
and between the Redevelopment Agency and Resources for Community Development and the O'Brien Group
(OBG at Bay Point,LLC}for the Bay View Housing Development, 52 multiple-family residential units and 69
single-family residential units,in the Bay Point Redevelopment Project Area. The project also includes substantial
infrastructure improvements within the neighborhood, which have been identified as Phase 4 of the North
Broadway Infrastructure Improvement Program. The first amendment to the DDLA, included an Infrastructure
Agreement which assigned costs of these improvements to the Redevelopment Agency, OBG at Bay Point, and
Resources for Community Development.
Following the return of bids for the single-family portion of the project, OBG at Bay Point, LLC requested
financial assistance to close a$2 million gap,by assisting with the public infrastructure costs. The bid rates where
much higher than those identified in the original estimates,due to the lumber costs and labor costs exceeding the
estimates. To assist the developer with the project,an additional$500,000 ofAgencybudgeted funds are proposed
to be committed to cover infrastructure costs. In addition,an additional$500,000 of infrastructure costs may be
paid by the Agency from future tax increment revenue generated by the OBG project. The future payments,which
would be a reimbursement to OBG would only be paid if the single-family development is built and sold. In
addition, the Agency reimbursement obligation may be reduced if the sales prices on the homes exceed their
currently projected average base of$318,000.
There are no other funds(te.,Area of Benefit,grant funds,developer financing,general funds,etc.)available to
cover these public infrastructure costs. These improvements, which include drainage improvements, installing
street lights, paving a gravel road, improving auto and pedestrian circulation by constructing sidewalks and
connecting two existing neighborhoods with two roads, and installing new water, sewer and gas lines,will help
eliminate these blighting conditions in the neighborhood and will improve the standard of living for the residents of
the area. The North Broadway Infrastructure is a four-phase project, which was developed to improve the
condition of the substandard infrastructure in the older neighborhood of Bay Point. The Project is included in the
implementation plan for the Redevelopment Project area.
CONSEQUENCES OF NEGATIVE ACTION
Without the agreement and the assistance of the Redevelopment Agency, the project is not feasible for the
developer and the project would not be completed.
THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on rhy 11, , 2404, by the following vote:
AYES: SOMISORS MIA, IMMIA, GRMMM, DeS.AI INUR, and GLOM
NOES: NM
ABSENT: NM
ABSTAIN: NM
Resolution No.: 20+/255
SUBJECT: (1) approving the expenditure of Agency funds for the construction of certain
infrastructure improvements by OBG At Bay Point,LLC, a California limited
liability company ("OBG"), (2) approving execution of an Infrastructure Grant
Agreement with OBG, and(3)making findings and approvals pursuant to the
California Community Redevelopment Law.
The Contra Costa County Redevelopment Agency RESOLVES THAT:
The Board of Supervisors (the "Board")of the County of Contra Costa(the "County")
adopted the Bay Point Redevelopment Plan by Ordinance No. 87-102 on December 29, 1987,
and subsequently amended by Ordinance No. 94-64 on December 6, 1994 and Ordinance No.
99-05 on February 23, 1999 (the "Redevelopment Plan"), which Redevelopment Plan sets forth a
plan for redevelopment of the Bay Point Redevelopment Project Area(the "Project Area").
The Contra Costa County Redevelopment Agency(the "Agency") is responsible for
administering the Redevelopment Plan to cause redevelopment of the Project Area, including
assembly, site preparation and redisposition of property both within and outside the Project Area
for private redevelopment consistent with the Redevelopment Plan.
The Agency, Resources for Community Development("RCD") and the O'Brien Group, a
California corporation ("O'Brien"),entered into a Disposition, Development and Loan
Agreement dated as of March 11, 2443 (the"DDLA") governing the transfer and redevelopment
of an approximately 9.22-acre site(the "Property") located within the Project Area,bounded by
Pullman Avenue, Bella Monte Avenue, Fairview Street and Willow Pass Road, through the
construction by RCD of fifty-one(5 1) multifamily rental apartment units affordable to low and
moderate income persons (the "Apartment Improvements")on a portion of the Property(the
"RCD Site") and the construction by O'Brien of sixty-nine(69) single family homes for owner
occupancy(the "Single Family Improvements")on a portion of the Property(the "OBG Site")
(collectively, the "Development"). Pursuant to an Assignment and Assumption Agreement dated
June 24, 2443, OBG assumed all of O'Brien's rights and obligations under the DDLA.
320\07\178913.1 1
Resolution No. 2004/255
Pursuant to Section 33445 of the Community Redevelopment Law(Part 1 of Division 24
of the Health and Safety Code of the State of California(the "Law")),the Agency is authorized,
with the consent of the Board, to pay part or all of the cost of the installation and construction of
any building, facility, structure, or other improvement which is publicly owned and is of benefit
to the Project Area.
The construction of certain infrastructure improvements (the "Infrastructure
Improvements") including the construction of sewer and drainage facilities and traffic
improvements on the streets bordering the Development, is necessary to the successful
redevelopment of the Property and will therefore be of benefit to the entire community
surrounding the Development, and the Project Area as a whole.
By resolution.number RA2003-01,the Agency committed Five Hundred Seventy
Thousand Six Hundred Forty Nine Dollars ($570,649) in Agency funds for the Infrastructure
Improvements serving the Apartment Improvements.
By resolution number RA2003-658, the Agency committed Nine Hundred Thirty Nine
Thousand One Hundred Twenty Dollars($939,120)to assist in the construction by OBG of
certain of the Infrastructure Improvements to be owned by the County.
Upon further refinement of the infrastructure costs the Agency and OBG determined that
up to an additional One Million Dollars($1,000,000) is necessary to construct the Infrastructure
Improvements.
The Agency desires to commit an additional One Million Dollars ($1,000,000) in Agency
funds for the construction of the Infrastructure Improvements to be owned by the County and
serving the entire Development(the "Infrastructure Grant"). Five Hundred Thousand Dollars
($500,000) of the Infrastructure Grant would be disbursed to OBG on a cost reimbursement basis
and up to Five Hundred Thousand Dollars ($500,000) of the Infrastructure Grant would be
disbursed on the sale of the homes in the Single Family Development.
The Agency commitment of One Million Dollars ($1,000,000) in Agency funds for the
Infrastructure Grant is consistent with the Agency's five-year Implementation Plan(the
"Implementation Plan").
The Agency and OBG desire to enter into an infrastructure grant agreement(the "Grant
Agreement")governing the use and the disbursement of the Infrastructure Grant.
The Negative Declaration previously prepared by the Agency and the County to serve as
the environmental documentation under the California Environmental Quality Act for the
redevelopment of the Property including construction of the Infrastructure Improvements and the
consideration of the DDLA continues to serve as the environmental documentation for purposes
of compliance with the California Environmental Quality Act for consideration of the Grant
Agreement and the Infrastructure Grant.
320w7M78913.1 2
By staff report accompanying this Resolution and incorporated into this Resolution by
this reference(the "Staff Report"), the Agency has been provided with additional information
upon which the findings and actions set forth in this Resolution are based.
NOW,THEREFORE,BE IT RESOLVED,that the Agency finds that the above recitals
are accurate.
BE IT FURTHER RESOLVED, in compliance with Section 33445 of the Law,that the
Agency hereby approves the Infrastructure Grant and finds that based on the facts and analysis
set forth in the Staff Report that the County does not have current or reasonably anticipated
future revenues to fund such cost, and, as a result there are no County funds allocated in the
County's capital improvement budget to pay such costs. There are no current or reasonably
anticipated other governmental funding sources to pay costs of the Infrastructure Improvements
at the federal, state, or local level.
BE IT FURTHER RESOLVED,that construction of the Infrastructure Improvements is
an integral component of the Development; that close coordination is required between
construction of the Infrastructure Improvements and the surrounding simultaneous construction
of the Development; that timely completion of the Infrastructure Improvements is essential to the
overall elimination of blight in this portion of the Project Area, and, in turn,to the successful
redevelopment of the Property, and that,under these circumstances, construction of the
Infrastructure Improvements can be most efficiently,timely, and cost-effectively performed by
and under the supervision of the Developers and in accordance with the Infrastructure
Agreement.
BE IT FURTHER RESOLVED,that the Agency hereby approves the Grant Agreement
and approves execution by the Agency Redevelopment Director of the Grant Agreement in
substantially the form on file with the Clerk of the Board and the Agency Secretary,with such
changes as are approved by the Agency Redevelopment Director (such approval to be
conclusively evidenced by the execution of the Grant Agreement).
BE IT FURTHER RESOLVED that the Agency designates the Clerk of the Board and
the Secretary of the Agency as the custodian of the documents and other material which
constitute the record of proceedings upon which the decision herein is based. These documents
may be found at the office of the Agency at 651 Pine Street, North Wing, 4th Floor
Martinez,CA 94553.
BE IT FURTHER RESOLVED that this Resolution shall take immediate effect from and
after its passage.
I hereby certify that this is a trite and correct
copy of an action taken and entered can the
r,ninUtes Of the Board of SuPervisors on the
date shown
JOHN rip �'gpl�`�`ggN, lark bf thyeg�${C pmt�y}
p"1 r i o ..nd �!Ri istil-37�oar V#.
Sy „
32M07\178913.1 3
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THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on may ll, , 2004, by the following vote:
AYES: s Rmum GioiA, unKm, aunMRG, DeMrT M and MMM
NOES: :None
ABSENT:None
ABSTAIN:None
Resolution No.: 20041254
SUBJECT: (1) making findings and approvals pursuant to the California Community
Redevelopment Law, and(2)consenting to the expenditure of Agency funds for
the construction of certain infrastructure improvements by OBG At Bay Point,
LLC, a California limited liability company ("OBG").
The Board of Supervisors of Contra Costa County RESOLVES THAT:
The Board of Supervisors (the "Board") of the County of Contra Costa(the "County")
adopted the Bay Point Redevelopment Plan by Ordinance No. 87-102 on December 29, 1987,
and subsequently amended by Ordinance No. 94-64 on December 6, 1994 and Ordinance No.
99-05 on February 23, 1999 (the "Redevelopment Plan"), which Redevelopment Plan sets forth a
plan for redevelopment of the Bay Point Redevelopment Project Area(the "Project Area").
The Contra Costa County Redevelopment Agency(the "Agency")is responsible for
administering the Redevelopment Plan to cause redevelopment of the Project Area, including
assembly, site preparation and redisposition of property both within and outside the Project Area
for private redevelopment consistent with the Redevelopment Plan.
The Agency, Resources for Community Development and the O'Brien Group, a
California corporation("O'Brien"), entered into a Disposition, Development and Loan
Agreement dated as of March 11, 2003 (the"DDLA") governing the transfer and redevelopment
of an approximately 9.22-acre site(the "Property") located within the Project Area,bounded by
Pullman Avenue, Bella Monte Avenue, Fairview Street and Willow Pass Road, through the
construction by RCD of fifty-one (5 1)multifamily rental apartment units affordable to low and
moderate income persons (the "Apartment Improvements")on a portion of the Property(the
"RCD Site") and the construction by O'Brien of sixty-nine(69) single family homes for owner
occupancy(the "Single Family Improvements") on a portion of the Property(the "OBG Site")
(collectively, the"Development"). Pursuant to an Assignment and.Assumption Agreement dated
June 24, 2003, OBG assumed all of O'Brien's rights and obligations under the DDLA.
3201071178914.1 1
Resolution 20041254
Pursuant to Section 33445 of the Community Redevelopment Law(Part 1 of Division 24
of the Health and Safety Code of the State of California(the "Law")), the Agency is authorized,
with the consent of the Board,to pay part or all of the cost of the installation and construction of
any building, facility, structure,or other improvement which is publicly owned and is of benefit
to the Project Area.
The construction of certain infrastructure improvements(the "Infrastructure
Improvements")including the construction of sewer and drainage facilities and traffic
improvements on the streets bordering the Development, is necessary to the successful
redevelopment of the Property and will therefore be of benefit to the entire community
surrounding the Development, and the Project Area as a whole.
By resolution number RA2003-01, the Agency committed Five Hundred Seventy
Thousand Sic Hundred Forty Nine Dollars ($570,649) in Agency funds for the Infrastructure
Improvements serving the Apartment Improvements.
By resolution number RA2003-659, the Agency committed Nine Hundred Thirty Nine
Thousand One Hundred Twenty Dollars($939,120)to assist in the construction by OBG of
certain of the Infrastructure Improvements to be owned by the County.
Upon further refinement of the infrastructure costs the Agency and OBG determined that
up to an additional One Million Dollars ($1,000,000) is necessary to construct the Infrastructure
Improvements.
The Agency desires to commit an additional One Million Dollars ($1,000,000) in Agency
funds for the construction of the Infrastructure Improvements to be owned by the County and
serving the entire Development(the "Infrastructure Grant"). Five Hundred Thousand Dollars
($500,000)of the Infrastructure Grant would be disbursed to OBG on a cost reimbursement basis
and up to Five Hundred Thousand Dollars($500,000)of the Infrastructure Grant would be
disbursed on the sale of the homes in the Single Family Development.
The Agency commitment of One Million Dollars($1,000,000) in Agency funds for the
Infrastructure Grant is consistent with the Agency's five-year Implementation Plan(the
"Implementation Plan").
The Agency and OBG desire to enter into an infrastructure grant agreement(the "Grant
Agreement") governing the use and the disbursement of the Infrastructure Grant.
The Negative Declaration previously prepared by the Agency and the County to serve as
the environmental documentation under the California Environmental Quality Act for the
redevelopment of the Property including construction of the Infrastructure Improvements and the
consideration of the DDLA continues to serve as the environmental documentation for purposes
of compliance with the California Environmental Quality Act for consideration of the Grant
Agreement and the Infrastructure Grant.
320\071178914.1 2
By staff report accompanying this Resolution and incorporated into this Resolution by
this reference(the"Staff Report"), the Board has been provided with additional information upon
which the findings and actions set forth in this Resolution are based.
NOW, THEREFORE, BE IT RESOLVED, that the Board finds that the above recitals are
accurate.
BE IT FURTHER RESOLVED, in compliance with Section 33445 of the Law, that the
Board hereby approves the Infrastructure Grant and finds that based on the facts and analysis set
forth in the Staff Report that the County does not have current or reasonably anticipated future
revenues to fund such cost, and, as a result there are no County funds allocated in the County's
capital improvement budget to pay such costs. There are no current or reasonably anticipated
other governmental funding sources to pay costs of the Infrastructure Improvements at the
federal, state, or local level.
BE IT FURTHER RESOLVED, that construction of the Infrastructure Improvements is
an integral component of the Development; that close coordination is required between
construction of the Infrastructure Improvements and the surrounding simultaneous construction
of the Development; that timely completion of the Infrastructure Improvements is essential to the
overall elimination of blight in this portion of the Project Area, and, in turn,to the successful
redevelopment of the Property; and that, under these circumstances, construction of the
Infrastructure Improvements can be most efficiently, timely, and cost-effectively performed by
and under the supervision of the Developers and in accordance with the Infrastructure
Agreement.
BE IT FURTHER RESOLVED that the Board designates the Clerk of the Board and the
Secretary of the Agency as the custodian of the documents and other material which constitute
the record of proceedings upon which the decision herein is based. These documents may be
found at the office of the Agency at 651 Pine Street,North Wing,4th Floor
Martinez,CA 94553.
BE IT FURTHER RESOLVED that this Resolution shall take immediate effect from and
after its passage.
d are-by c rtiiy teat the is a trate and correct
WPY of ;,,in action taken and entered on the
nit toa <he Board of Supervisors on tl
date Slow-. I 1 1, --`� - ;41
JOHN SWEETE Ierk of the Board
uoa tdm-n' trator
,p a
320\07i178914A 3