The URL can be used to link to this page

Home My WebLink AboutRS3-Economic Development Agency . . . DE. LOP II E N T D E PAR T "" T OF THE CIn OF SAN BEIl1Wl.DINO REOUEST FOR CO!ft[SSION/comrCIL ACTION From: KENNETH J. HENDERSON Executive Director Subject: "llILLIUU'uul'l MAl'IOR" SENIOR HOUSIl'lG PROPOSAL Date: February 14, 1992 ------------------------------------------------------------------------------- SvnoDsis of Previous Commission/Council/Committee Action(s): On November 26 and December 16, 1991, the Housing Committee and Community Development Commission considered the Millennium Manor Senior Housing Project. The Commission did appropriate funds, but referred the matter back to the Housing Committee. On January 14, 1992 the Housing Committee considered this matter and recommended approval to the Community Development Commission. On February 11, 1992 the Housing Committee reconsidered this matter directed staff to analyze Agency's cash-flow position and deferred making a recommendation until the Commission has had the opportunity to conduct the EDA Budget Workshop. ------------------------------------------------------------------------------- Recommended lIotion(s): (Communitv Develoument Commission) That the Community Development Commission approve in coneept the Millennium Manor Senior Housing Project but not take action to fund said project until the Commission has had the opportunity to prioritize certain project. and to consider the Agency's financial position. A~tor J. RSON Executive Dire tor ------------------------------------------------------------------------------- Contact Person(s): Ken Henderson/Doris Daniels Phone: 5081 Project Area(s): N/A Ward(s): One( 1) Supporting Data Attached: Staff ReDort FUNDING REQUIREMENTS: Amount: $ 1.735.000 Source: 20% Set Aside Budget Authority: Beinll Soullht ------------------------------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------- KJH:DAD:lag:0576E COMMISSION MEETING AGENDA lIeeting Date: 2/17/1992 Agenda Item lIIumber: f'5~ ~ . . . . . DEVELOPMENT DEPARTMENT OF THE CITY OF SAR IIEIllUJlDIRO STAFF REPORT "MIT.T.E'RRIOM MAROR" SERIOR HOUSING PROPOSAL On November 26, 1991, the Housing Committee considered the Cliff Carel proposal and referred it to the Community Development Commission. At the Commission's December 16, 1991 meeting, the Commission considered the proposal and requested that it be returned to the Housing Committee for additional information, clarification and review. On January 14, 1992 the Housing Committee considered this matter and recommended that the Community Development Commission approve the Cliff Carel and Associates request for a construction loan in the amount of $1,735,000 for the development of a 40 unit Senior Citizen apartment complex. At the Community Development Commission meeting of February 3, 1992, the Commission considered a substitute motion and referred the matter back to the Housing Committee for further review. The substitute motion recommended that no action be taken to fund the project until the Commission had had the.opportunity to prioritize various housing projects, including Arden-Guthrie and Millenium Manor and to consider the financial position of the Low/Moderate Income Housing Fund. Since the initial presentation of the information presented above, staff has had ongoing negotiations with Carel and Associates. Based upon a status report that was presented to the Housing Committee on January 14, 1992, the Committee recommended to the Commission the following: 1. It is now proposed that the Third Street Bridge be deleted from the project. The original proposal included the removal of the bridge, the widening of the street to four lanes, the replacement of the roadway, and the construction of curbs and gutters. The cost that was included in the initial proposal was $148.146. The present cost projections are $75,000 for the removal of the Third Street bridge, backfill and replacement of the roadway. This project can be constructed with another funding source to be determined by the Agency. A review of the current DDA file between the Agency and Cliff Carel reveals that removal of the bridge was a City (Agency) obligation. ------------------------------------------------------------------------------- KJH:DAD:lag:0576E COMMISSION MEETING AGEBDA Meeting Date: 2/17/1992 Agenda Item Bumber: e- 3 . . . DEVELOPMENT DEPAR'l'PJJsm: tAFF REPORT ~. ., -"Millennium Manor" Senior Housing Proposal February 14. 1992 Page Number -2- . 2. The annual payments are now computed at $161,121. This is based upon a construction loan in the amount of $1.735.000 at nine percent (9%) interest rate for a thirty (30) year term with a five (5) year maturity. Carel would make interest onlv oavments for the first 18 months of the loan. With the deletion of the cost of the Third Street Bridge resulting in a lower overall finance cost, the project would now demonstrate a profit margin of $45,340 after debt service, vacancies and expenses. 3. The rent-up and the guarantee of the project by the San Bernardino Housing Authority needs to be further explained. The Housing Authority which issues Section 8 "authorizations" will not guarantee this project. However, it has indicated that it will direct and notify approved Section 8 applicants of this project. Information provided by the Authority further indicates that there is presently a shortfall of at least 2000 units for senior citizens in the Inland Empire. Since the Carel units are targeted for "active seniors" who are 55 years of age and up, the Authority has noted that the rent-up of a project of this size (40 units) should take approximately 4 - 6 months. 4. There would be a 1.5% Loan Origination Fee. Because of the Low/Moderate Housing Fund's cash flow position and in keeping with our previous discussions on this project, the Committee recommended to the Commission approval of the financing structure as contained herein, the establishment of Millennium Manor as priority number one, and that this project have first call on new Twenty Percent Set-Aside Tax Increment. The Housing Committee on February II, 1992 reconsidered this matter, directed staff to analyze the Low/Moderate Income Housing Fund cash-flow position in detailed fashion and deferred making a recommendation to the Commission until the Commission has had the opportunity to conduct the EDA Budget Workshop and prioritize various projects. Staff recommends adoption of the form motion. Ol!l', Executive Director Dep rtment ------------------------------------------------------------------------------- KJH:DAD:lag:0576E COMIIISSIOI!I' MEETIl'fG AGENDA Meeting Date: 2/17/1992 Agenda Item l'fumber: e4j - 3