HomeMy WebLinkAboutMINUTES - 04032007 - C.131 ... __o Contra
" TO: BOARD OF SUPERVISORS
o•-'- Costa
FROM: Dennis M. Barry, AICP :, a
County
Community Development Director srq ou
DATE: April 3, 2007 "
SUBJECT: ALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS FOR THE
ACQUISITION OF THE COUNTY EMERGENCY SHELTER AT 2047 ARNOLD
INDUSTRIAL WAY, CONCORD
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDED ACTION:
(1) AUTHORIZE the allocation of $355,761 in FY 2006/07 Community Development Block Grant
(CDBG) Housing Development Assistant Funds (HDAF) for the acquisition of the existing Central
County Emergency Shelter located at 2047 Arnold Industrial Way, Concord (the "Shelter").
(2) AUTHORIZE the Deputy Director, Redevelopment or his designee to amend the County's FY
2006/07 CDBG Action Plan to include acquisition of the Shelter and submit it to the U.S. Department
of Housing and Urban Development; and
(3) AUTHORIZE the Deputy Director, Redevelopment or his designee to execute a Notice of CDBG
Funding to acknowledge all CDBG funds provided for acquisition and rehabilitation of the Shelter;
and
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(4) DIRECT the Deputy Director, Redevelopment or his designee to have funds wired into escrow
account number 4314652-510-HM with Financial Title Company for the purchase of the Shelter;and
(5) DIRECT the Deputy Director, Redevelopment or his designee to record with the County Clerk-
Recorder the Notice of CDBG Funding as an encumbrance on the Shelter following acquisition of the
Shelter by County.
FISCAL IMPACT:
CDBG funds are provided to the County on a formula allocation basis through the U.S. Department'
of Housing and Urban Development (HUD). The remaining amount of the purchase price will be
from the Health Services Department approved budget.
CONTINUED ON ATTACHMENT: X YES NO SIGNATURE
,-RtCOMMENDATiON OF COUNTY ADMINISTRATOR RE OM ENDATIO F BOARD „
COMMITTEE
L-4PPROVE OTHER
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SIGNATURE S
ACTION OF BO D ON X4r// Gam: aha' APPROVED AS RECOMMENDED OTHER
V7'U'N
F SUPERVISORS '
i HEREBYCERTIFY THAT THIS IS A TRUE AND
ANIMOUS(ABSENT CORRECT COPY OF AN ACTION TAKEN AND
AYES: NOES: ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
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Contact: Kara Douglas(325/335-7223) ATTESTED �id a"�� 0�19
cc: Community Development Department(CDD) JOHN CULLEN, CLERK OF THE
Health Services Department BOARD OF SUPERVISORS AND
Public Works Department COUNTY ADMINISTRATOR
County Counsel p/
Auditor-Controller BY , DEPUTY
General Services
BACKGROUND/REASONS FOR RECOMMENDATIONS:
The Health Services Department wishes to have the County acquire the Shelter from Transocean
Financing Corporation, a California corporation. The property is at 2047 Arnold Industrial Way,
Concord. The County has leased the property since 1994. The lease contains an option that allows,
the County to purchase the property. In 1994, Health Services Department received a CDBG
allocation for the Homeless Shelter project in the amount of $310,000 for the purposes of securing
the site for the emergency shelter program. Of that amount, $288,634 was allocated for the
lease/purchase down payment and the remaining $21,366 was used for renovation. In March 2000,
the Facility Lease agreement was extended to February 2014 with the option to purchase the
property at any time. The Health Services Department is proposing to exercise the County option to
purchase the property and is requesting $355,761 in CDBG funds for that purpose. Acquisition of
the shelter will help ensure the property will be available for continued use as a homeless shelter.
The total cost of acquisition, including related soft costs, is approximately $436,000. The remaining
funds will come from the Health Services Department.
CDBG funds provided to this project include the following:
FY 1992/93- down payment and rehabilitation $310,000
FY 1995/96: improvements 120,000
FY 1996/97: improvements 266,000
FY 1997/98: improvements 125,000
FY 2002/03: rehabilitation/improvements 98,000
Current request, FY 2006/07: acquisition 355,761
Total CDBG contributions $1,274,761
The appraised value of the property as of March 15, 2007 is $3,350,000.
The benefit of purchasing the property versus remaining in a lease is two-fold:
(1) Ownership of the property puts the County in a better position to receive future funding because
many funders require recordation of a document that details the source, use, and restrictions of the
funds.
(2) Purchasing the property saves the shelter housing program money that can be used towards
program operations and services.
Funds for this project will be wired into an escrow account established for this purpose with Financial
Title Company.
The current balance in the CDBG/HDAF is $977,161. Funding of this project will leave a balance of
$621,400. These funds are available for affordable housing projects.
Compliance With California Environmental Quality Act
In 1994, at the time the County established the homeless shelter at this site, the County prepared an
Environmental Impact Report (EIR) on the project to satisfy the review requirements of the California
Environmental Quality Act (CEQA). The EIR described the project as including:
• Contra Costa County authorization to execute a purchase agreement for the site at 2047 Arnold
Industrial Way; and
• Contra Costa County allocation of funding for the project. (ref. pg. 1.5 of the 1994 Draft EIR)
The EIR studied the project (including proposed acquisition on the site) and determined that it would n6t
result in any significant impacts to the environment. After allowing for public review and comment on the
Draft EIR, and responses to those comments, on May 10, 1994 (agenda item D1.A) the Board Of
Supervisors certified the Final EIR, and otherwise authorized the establishment of the County Homelegs
Shelter at the site.
The 1994 El R satisfies the CEQA review requirements for the current proposed acquisition. A copy of the
EIR is on file with the Clerk of the Board.
CONSEQUENCES OF NEGATIVE ACTION:
The County will not obtain an ownership interest the property and will be obligated to continue to pay rent
and may not be eligible to obtain additional funds for the homeless shelter. 1%
Rev,3/26/07