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HomeMy WebLinkAboutR01-Economic Development Agency o o c o o MAYO. A1Q) COtllOlI COUBCIL A1Q) TIll cotlmlUn DIVBLOPMD'f COIIIISSIOII OF TIll CIn OF SAlf BIRlIARDIIIO MIIIUTBS ADJOlJUBD RlGULAIl MBBTIltG Auaust 7, 1991 11:00 a... The Adjourned Regular Meetina of the Mayor and Common Council and the Community Development Commission was called to order by Chairman, Mayor W. R. Holcomb, at approximately 11:51 a.m., on Wednesday, August 7, 1991, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL CALL Roll call was taken with the followina members present: Chairman W. R. Holcomb; Commission Members Esther Estrada; Jack Reilly; Ralph Hernandez; Michael Maudsley; Tom Minor; Valerie Pope-Ludlam; Norine Miller. STAn' PRBSD'r Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis A. Barlow, Senior Assistant City Attorney; Rachel Krasney, City Clerk; and Deborah Marez, Recordina Secretary, Development Department. OTIIBRS III ATTBlIDAlfCB Timothy Sabo, Special Counsel, Sabo and Green; Rhonda Connelly, Miller and Schroeder Financial, Inc. PUBLIC C~rrrS 011 ITEMS \IIOT 011 TIll AGBlIIlA RlFI"AIICIJIG 01' CIn "AT.I. Chairman Holcomb introduced an item regardina the refinancina of City Hall, the Court Street parkina lot and Police Station for Mayor and Common Council/Community Development Commission discussion and action. Timothy Sabo, Special Counsel to the Economic Development Agency, explained the structure of the Civic Center Authority (CCA) and the twenty-five (25) year term of financina relative to the bond issue, amortization of principal and interest payments, right to purchase, deal points, and timelines involved. Mr. Sabo answered Council questions and provided clarification of issues pertainina to the sale and refinancina of City Hall and the proposed lease/purchase provisions with the Economic Development Agency. ADJOlJUBD RBGULAIl dlm:5433. - 1 - COIIIISSIOII MIBUTBS AUGUST 7, 1991 .1.4. c c c o o Mr. Sabo stated the City would benefit by: (1) the ability to receive an estimated $10,000,000 to $12,000,000 from the proposed refinancing and, (2) reduction of the total debt service, from $565,000 a year to about $300,000 a year, to the Civic Center Authority. Additionally, the sale of the parking lot and police station would generate some cash flow to the Economic Development Agency and assist in offsetting the cost of paying for the new financing. Chairman Holcomb added the major advantage of refinancing would be that the Economic Development Agency would be paying the interest of City Hall at 5.5% under current market conditions. The money returned to the City could be used to fund various deficit funds (workers compensation, liability insurance, unemployment insurance). The Council members questioned the City's ability to afford and funding source for the $16,000,000 balloon payment due at the end of the lease. Mr. Sabo explained the methodology proposed to satisfy the $16,000,000 payment. Councilwoman Estrada said the whole purpose of the salelrefinancing was to put the City in balance and to be able to have money for deficit funds. She asked that the specifications noted by Mr. Sabo be documented and legally bound to ensure that the purpose of the proposed salelrefinancing was complied with and implemented as indicated. This would eliminate the possibility of using the cash for other purposes. A lengthy discussion ensued regarding legally documenting provisions which would ensure adherence of the use of funds. Mr. Sabo noted that before this could be done, further determinations were necessary by the Finance Department and City Administrator as to where the monies would be taken from and placed to replenish the reserved funds. Mr. Sabo referred to his memoranda which addressed some of the federal tax law concerns, expenditures of bond monies, replenishment of the deficit reserve fund, arbitrale relulations, yield restriction of monies and general fund transactions for information. Council Member Miller made a motion, seconded by Council Member Pope-Ludlam, to approve in principle the sale of City Hall, the Court Street parking lot and the Police Station, and authorize staff and legal counsel to proceed. The motion carried by the following vote: Ayes: Estrada; Reilly; Maudsley; Minor; Pope-Ludlam; Miller. Hernandez. Abstain: None. Absent: None. Council Members Noes: Council Member ADJOUUID IlGULAR dlm:54331 - 2 - COMMISSION MIBUTES AUGUST 7, 1991 ..1, A Q o o o o CONSElf'l' CA!.ElQlAR 1. RAIIOlU. SBlIlOR HOUSIIIG COMPLEX (Community Development Commission) Kenneth J. Henderson, Executive Director, Development Department informed the Commission that staff had obtained a thirty (30) day "business day" extension from the California Housing Finance Agency regarding the local financial commitment to the Ramona Senior Housing Complex and the Highland/Lutheran Senior Housing Complex. The new deadline is August 22, 1991, allowing the Commission to act on these projects at its regularly scheduled August 19, 1991 meeting. Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller, to continue this matter to August 19, 1991. The motion carried by the following vote: Ayes: Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Abstain: Commission Member Estrada. Absent: None. Commission Members Noes: None. 2. HIl3lUllnlLUTHERAII SBlIlOR HOUSING COMPLD: (ColllllUDity Development Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller, to continue this matter to August 19, 1991. The motion carried by the following vote: Ayes: Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Abstain: Commission Member Estrada. Absent: None Commission Members Noes: None. ElQl OF CONSElf'l' CALDIlAR 3. ADJOlml m CLOSED SESSION There were no Community Development Commission issues to discuss in Closed Session. ADJOtJUED UGULAR dla:5433R - 3 - COMMISSION MIROTES AUGUST 7, 1991 ;LA -~.. o c c 4. ADJoumwmrr o o Chairper80n Holcomb adjourned the meetina of the Mayor and Conunon Council/Community Development Conuni8sion to Monday, Augu8t 19, 1991, at 11:00 a.m. in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ADJOURlUD RBGULAR d1.m:5433R Respectfully submitted, llI5llLUl:D J. HBMlEltSOlf, REecutive Directorl Secretary to the Commission - 4 - COMIIISSIOlf MINUTES AUGUST 7, 1991 1 ^ .-Y o c Ie I I I o o MAYOR AIm COMllO. COUl'CIL, cOlRl1lIn DBVBLOPMIft COIlUSSIO. AIm TIll JOIIft' POWERS FIlWICIRG AUTJIORIT! OF TIll CIn OF SAW BEUARDIBO MI.UTES JOIIft' RBGULAK MBB1'IBG August 19, 1991 11 :00 a.... The Joint Regular Meeting of the Mayor and Common Council, Community Development Commission and the Joint Powers Financing Authority was called to order by Chairperson W. R. Holcomb at approximately 11:38 a.m., on Monday, August 19, 1991, in the Council Chambers, City Hall, 300 North "D" Street, San Bernardino, California. ROLL r.AT.T. Roll call was taken with the following members present: Chairman W. R. Holcomb; Commission Members Esther Estrada; Jack Reilly; Ralph Hernandez; Michael Maudsley; Tom Minor; Valerie Pope-Ludlam; Norine Miller. Absent: None. STAFF PRESEIft' Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Jamea Penman, City Attorney; Rachel Krasney, City Clerk, and; Deborah Marez, Recording Secretary, Development Department. OTII'RRll I. ATTRlmAllCl: Timothy Sabo, Special Counsel, Sabo and Green; John Dukes, Developer, Dukes-Dukes & Associates, Inc. PUBLIC Cu........:rll OK ITI!M!l ROT OK TIIB AGBlmA. There were no public comments. COllSEIft' CALBIIDAJt Council Member Minor requested item number three (3) be removed from the Consent Calendar. Council Member Hernandez requested items number five (5) and eleven (11) be removed from the Consent Calendar. Council Member Maudsley requested item number ten (10) be removed from the Consent Calendar. JOIIft' RBGULAK 5434R(dlm) COIlUSSIOll MIlfUTBS AUGUST 19, 1991 lt3 - 1 - --i"'"~. --i"". c c c o o 1. JOIBr POWERS FIIWfCIRG AUTHORITY (Community DeveloDment Commission) Commission Member Minor made a motion, seconded by Commission Member Miller, to continue the regular meeting of the Joint Powers Financing authority to Monday, September 16, 1991. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 2. COIMlllITY DlMn'.OPMDr COIWlSSIOll MIImTBS (Community Develooment Commission) Commission Member Minor made a motion, seconded by Commission Member Miller that the Community Deyelopment Commisaion minutes dated July 19, 1991 and July 23, 1991, be approved as submitted in typewritten form. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 4. SIDBWAU' FILL-Ill PROGIIAJI (Community Deyelooment Commission) Commis.ion Member Minor made a motion, seconded by Commission Member Miller, to waive further reading of the resolution and adopt same. MOTIOIl A: RESOLDTIOll R1IMBRR 5299 RESOLOTIOIl OF THB COIIIJlIITY DIVBLOPMDr COIllISSIOIl OF THB CITY OF SAW BBR1WIDIIIO, CALII'OUIA, MAnWG FIWDIIGS AD DBTBIIIIlUt'IOIlS AS TO THB BDlFIT OF mmRIl'I'A~. CIRUlli PUBLIC RIGIl't-GF-WAY IMPROVlMUTS FOR THB STAD COLLIGI RBDIVBLOPMDr PROJECT ADA AD THB IIORTHWEST REDIVBLOPMDr PROJECT ADA. The motion carried by the following vote: Ayes: Commis.ion Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOIBr REGULAR 5434R(dla) - 2 - COIllISSIOll MIImTBS AUGUST 19, 1991 ~C> c e , Ie I , I I i i j o o (Mavor and Common Council) Council Member Minor made a motion, seconded by Council Member Miller, to waive further reading of the resolution and adopt same. MOrIOll B: RESOLUTIOR RUMBKR 91-379 RESOLDTIOll OF TUB MAYOR ARB COtMOlI COUBCIL OF TUB CITY OF SAR BERRARDIItO. CALIFODU. MAnllG FIRDIlIGS ARB DBTERMIRATIORS AS TO TUB BEREFIT OF UBDERrAnllG CERrAIlI PUBLIC RIGBT"()F-WAY IMPROVEMENTS FOR TUB STAn COLLEGE REDEVILOPMENT PROJECT AREA ARIi TUB NORTHWEST REDEVILOPMERT PROJECT AREA. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Mauds1ey; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 6. ORE SUBSET COURT - ROrICK OF DEFAULT (Communitv Deve10Dment Commission) Commission Member Minor made a motion, seconded by Commission Member Miller to authorize the sendina of a notice of default to One Sunset Court, Ltd., with respect to a Disposition and Development Agreement dated October 16, 1989. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Mauds1ey; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 7. GEOr.llllllllAL RETROFIT FOR 201 ItORTII "11:" STRRR'I' (Communi tv Deve10Dment Commission) Commission Member Minor made a motion, seconded by Commission Member Miller to approve the agreement with the City of San Bernardino Water Department for Geothermal Retrofit of the 201 North "E" Street building. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Mauds1ey; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOINT REGULAR 5434R(dla) - 3 - COMMISSIOll MIRDTIS AUGUST 19, 1991 jJ3 o o o _ .J o 0 8. REOUEST FOR ASSISTAlfCB FROM HAIRNASTERS SCHOOL OF BEAlITY (Communitv Develooment Commission) Commission Member Minor made a motion, seconded by Commission Member Miller to authorize Agency Counsel to prepare and the Executive Director to execute an agreement with Hairmaster School of Beauty for assistance in the construction of certain public improvements in an amount not to exceed $20,000. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. (Communitv DeveloDment Commission) Commission Member Minor made a motion, seconded by Commission Member Miller to increase the Development Depsrtment's budget by $20,000.00. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 9. FISr.&T. YEAR 1991/1992 ECOROMIC DEVELOPMERT AGD'CY IlUDGET (Communitv DeveloDment Commission) Commission Member Minor made a motion, seconded by Commission Member Miller to approvs and adopt the Fiscal Year 1991/1992 Economic Development budget, which included the revised goals and Objectives. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 12. COMPR1mRW!IIVIl ROUSIIIG AFFORDABILITY STRATEGY (CRAS) (Communitv DeveloDment Commission) Commission Member Minor made a motion, seconded by Commission Member Miller to receive and file the Comprehensive Housing Affordability Strategy (CRAS) staff report. The motion carried by the following vote: Ayes: Commission Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOIRT REGULAR 5434R(dlm) -4- COMMISSIOB MIBUTES AUGUST 19, 1991 ~ e, "....- o o o - o o 3 . VERDEMOlr.r _A liRA IBFRASTIlUCTOIllI: FIlfAKCIIIG PLAlI Kenneth Henderson, Executive Director, Development Department summarized previous Mayor and Common Council/Community Development Commission actions and the staff report relative to the Verdemont area infrastructure financinl plan. Mr. Henderson provided clarification on the amount of financina necessary for the improvements associated with the plan. Accordinl to the Director of Public Works/City Enaineer memorandum of Auaust 13, 1991, the plan calls for $2,412,682.56, rather than the previously approved $2.3 million dollars oriainally allocated from State College tax allocation bond revenues. Commission Member Minor asked for prOlram clarification which deferred payments for households which say 30% or more of their aross income on housina and related expenses. Mr. Henderson said there was extensive discussion at the previous meetina on how the Development Department was to assist low-and-moderate income households who might not be able to pay the assessment. Under the proposed plan, if the combination of the mortlage and the assessment exceeded 30% of the household income, the family was determined to be a "household in need" as defined by HUD based on the eligibility criteria. He stated staff was not clear that formal policy direction had been given by the Mayor and Council with respect to said program and requested such direction be provided. Mr. Henderson said, if in fact Council wanted staff to proceed along those lines, that financial assistance be provided to eligible low-and-moderate income households, there are a couple of procedural issues that need to be identified. Staff would brina back those issues and have the adopted form motion. The Mayor said to brine back the guidelines at the next meetina. (Communitv DeveloDment Commission) Commission Member Minor made a motion, seconded by Commission Member Miller, that the resolution be adopted. MOTION A: IlBSOLDTION RO. 5298 1lBS0LDTIOW 01' TIll COItItlllIITY DEVELOPIUllIT COIWIISSION 01' TIll CITY 01' SAlI BDlUlIDIRO, CALII'OUU, FIDIIIG IlBlUI'IT to TIll 5rAD COLLlGB IlBDEVELOPIUllIT PIOJECT AIlB.l IN TIll US. 01' TAX IWCIlBMDT IlBVEftUBS AIm BOD PROCBBDS 1'01 TIll PAYMDr 01' IBFRASTIlUCTOIllI: COSTS IN TIll VERDEIIOlr.r AIlB.l. The motion carried by the followina vote: Ayes: Commission Members Estrada; leilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. JOIlr.r 1lBGUL.lR 54341(dla) - 5 - COIWIISSION MIBUTBS AUGUST 19, 1991 ,tI3 o o o . o o (Mavor and Common Council) Council Member Minor made a motion, seconded by Council Member Miller, that the resolution be adopted. fl)TIOI B: RESOLUTIOI 1tO. 91-380 RESOLUTIOI OF THB MAYOR AIm COJR)I COlJl'CIL OF THB CITY OF SAlt BBUUDIItO, CALIPOUlA, FIIDIltG BBlUFIT TO THB STA1'B COLLlGE RBDBVILOPIIBI'l' PROJECT AREA II THB USB OF TAX IICRBMDr RBVDUBS AIm BOlD PROCBBDS FOR THB PAYMU'f OF IIIFRASDUCTURE COSTS II THB VERDEMOl'IT AREA. . The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Mauds1ey; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 5. WOltG PARCEL (Mavor and Common Council) fl)TIOI A: RBSOLUTIOI OF THB CITY OF SAlt BBUUDIItO AUTIIORIZIlfG THB BltICUTlOI OF A GRAIft' DUD COlVEYIlfG CBITAII SURPLUS PROPBRTY LOCA1'BD 01 THB WEST SIDB OF DBL ROSA AVERUB BBrWBBllIlARSJW.L BOULEVARD AIm lURID. SrRBBr, II THB CITY OF SAW BBUUDIItO, TO THB RBDBVILOPIIBI'l' AGDCY OF THB CITY OF SAlt BBUUDIItO. (Communitv Deve100ment Committee) 1IlTI0I B: That the Executive Director be authorized to purchase the Wong Parcel located on the West side of Del Rosa Avenue between Marshall Boulevard and Bureka Street from the City of San Bernardino and to increase the Department budget by $87,725. Council Member Hernandez voiced concerns regarding the use of Twenty Percent (20~) Set Aside funds for a project which was not in a redevelopment project area. He said the Housing Committee's role was to look at various projects and the amount of financial assistance requested. Councilman Hernandez said he could not support using Twenty Percent (20~) Set Aside funds to purchase a piece of property which had not been determined to be a practical project by the Housing Committee, because said fund was established to provide shelter for the low and moderate income families. He recommended staff redirect the conditions of the purchase to the Housing Committee to review the use of Twenty Percent (20%) Set Aside funds for the project. JOIl'IT RBGlJLU 5434R(dla) - 6 - COMIIISSIOI MIBDTBS AUGUST 19, 1991 ~e, o () o u o o A lengthy discussion ensued regarding the purchase of land, the use of restricted monies before using unrestricted monies, and the developer's intention for the land once it was obtained. The Council suggested that the developer purchase the property instead of the City. Chairman Holcomb explained that the temporary use of Twenty Percent (20X) Set Aside funds to purchase the property was the most expeditious way of obtaining the property and at the same time fulfilled the Wong family intent for a library. It would provide the opportunity to have some authority and flexibility in working out the arrangements of revitalizing the project with the developer. Council Member Miller suggested deferring the item to allow time to get a commitment from the developer to buy the land from the Economic Development Agency (EDA). Chairman Holcomb commented that the EDA is in a better financial position to market the property than the City because the City Library needs the money from the proposed sale of the property. Council Member Miller made a motion, seconded by Council Member Hernandez to refer the item to the Housing Committee. The motion carried by the following vote: Ayes: Council Members Estrada; Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Noes: None. Abstain: None. Absent: None. 10. SBllIOR ROUSIl'IG PROPOSAL nOM HALe IRVESnIDT HOLDIl'IG CORPORATIOII AIID Hyr.mr.AIID L1JTIIl!I!A. ClIlJRCH (Items 10 and 11 discussed as one item.) (Communitv DeveloDment Commission) MOrIOIl: That the Housing Committee recommend to the Community Development Commission approval of the HALC request for assistance in an amount not to exceed $2,149,091 based upon the information and recommendations set forth in the staff report. 11. SBllIOR HODSIl'IG PROPOSAL FOR CAS'" RAMOIIA (Items 10 and 11 discussed as one item.) (Communitv DeveloDment Commission) MOrIOIl: That the Housing Committee recommend to the Community Development Commission spproval of the Casa Ramona request for assistance in an amount not to exceed $2,021,063 based upon information and recommendations set forth in the staff report. JOI1ft' RBGULAR 5434R(d18) - 7 - COMMISSIOII MIBUTBS AUGUST 19, 1991 .J.-~ -~. --~ o () o - o o Commission Member Pope-Ludlam was concerned that if the projects were approved as submitted, the projects would lose their permanent financing commitment from California Housing Financing Agency (CHFA). She recommended that the project should be approved as originally analyzed and proposed by the financial consultant, Gene Wood. She suggested the outline be referred to the Housing Committee for review. Commission Member Pope-Ludlam felt both projects were gutted by staff and said her concerns applied to both senior housing projects. Commission Member Estrada announced she would be abstaining from further discussion of this item since it also included discussion of item numbered 11, the Senior Housing Proposal for Casa Ramona. COIlfiSSIOK MEMBD BSTIWlA LEFT THB MDTIBG. Commission Member Pope-Ludlam requested and reviewed a list of all projects which were to be funded and proposed to be funded with Twenty Percent (20X) Set Aside monies to ascertain how much money was actually being spent because a question was raised that the City was running out of money, therefore, a cutback on projects was necessary. However, after reviewing the report she noted the figures did not compute. Commission Member Pope-Ludlam affirmed that both senior housing projects were desperately needed and would like to see more of the Twenty Percent (20X) Set Aside funds invested in the projects, as well as see a reduction in rents. Commission Member Pope-Ludlam went on to say the Twenty Percent (20X) Set Aside was established by the State to provide affordable housing for low income people; however, she felt the funds have been used more for affordable housing than for housing the very low-income people. A lenathy discussion ensued regarding the for-profit/non-profit status of the corporations and the rate of interest being charged for secondary financing. Kenneth J. Henderson said the motions before Commission were basically to ensure the commitment as oppose to dealing with specific deal points. He clarified that consultant Gene Wood analyzed the project and made recommendations; however, Mr. Wood's recommendations were far more stringent than recommendations made by staff. Mr. Henderson referred to a written memorandum regarding the secondary financing request for both agencies. In each instance Mr. Wood recommended the entire amount be removed from the project and to consider it in a form of a loan. Mr. Henderson explained how the proposals were structured and said there was enough money being recommended to ensure the CHFA commitment. However, the question of whether or not the proceeds of the land sale would be applied to the project was not set forth in the application itself. He noted if the the sale proceeds would be applied to the project, then it would normally be reflected in the budget of the project. The California Housing JOlft RBGULAR 5434R(dla) - 8 - COIlfiSSIOK MIKUTES AUGUST 19, 1991 yt> o c o - - - . A. o o Financing Agency (CHAFA) staff have not been able to answer certain questions which would ensure if the project would work under the stsff's present recommendations. Chairman Holcomb expressed two concerns for not following staff's recommendations. First, a bad precedence would be set of giving a project money that was not needed. If the consultant's recommendation were followed, then Cas a Ramona will be getting $400,000 and the Lutheran Social Services will be getting some $500,000 that's not needed for the project. Secondly, Twenty Percent Set Aside could be used for other housing needs. Commission Member Pope-Ludlam suggested the issue be continued after lunch for the purpose of reviewing the figures which were prepared by staff. Chairman Holcomb recessed the Mayor and Common Council/Community Development Committee meeting for lunch. MEETING RECOBVBIUD At 2:06 p.m. the meeting of the Msyor and Common Council and the Community Development Commission reconvened and was called to order by Chairman Holcomb. ROLL I!'T.T_ Roll call was taken with the following being present: Chairman W. R. Holcomb, Mayor; COlllllliaaion Members Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Absent: Commission Member Estrada. STAFF PRESDT Chairperson W. R. Holcomb, Mayor; Timothy C. Steinhaus, Administrator, Economic Development Agency; Kenneth J. Henderson, Executive Director, Development Department; Dennis A. Barlow, Senior Assistant City Attorney; Rachel Krasney, City Clerk; and Deborah Marez, Recording Secretary, Development Department. OTHERS I. A'I"l'RlmAKCK Timothy Sabo, Sabo & Green, Special Counsel for Economic Development Agency. JOIKT REGULAR 5434R(dJ...) - 9 - COMMISSIOK MIRUTlS AUGUST 19, 1991 >~ - o () o - - - ~ o o 11. SERIOR HOUSIRG PROPOSAL FOR CASA RAMORA (Items 10 and 11 discussed as one item.) Chairman Holcomb reported that durins the recess, staff and representatives from Dukes & Dukes contacted CHFA to discuss the Commission's concerns. After thorough explanation and discussion, substitute motions which address the concerns of the Chairman and Commission Member Pope-Ludlam were submitted for action. MOTIOR: That the Community Development Commission approve construction financing in the amount of $2,326,215.00 to Ramona Senior Housing Complex, Inc., for the development of forty-four (44) units of senior housing. Kenneth Henderson, Executive Director, explained the revised motions reflected those numbers that were essentially in the CRFA Application. He explained how the money would be appropriated. Timothy Sabo, Special Counsel, clarified the Commission's concerns regard ins Cas a Ramona Senior Housins relative to the transfer to non-profit status, total replacement costs, soft and hard construction costs, appraised value of land, operational reserves, shortfall and rent reserves, bond financins fee, amount of first and secondary financins and method for pay back. Commission Member Maudsley asked if there was enough cash in the project to pay both the first and second? Mr. Sabo said there would be because staff proposed certain terms and conditions associated with that secondary financins. The project is expected to spin off positive stream of revenue in year five. He noted the structure of the financins is virtually the same, in terms of enhancins the cashflow, the same objective is beins accomplished without puttins much money up front. (Communitv DeveloDment Commission) Commission Member Pope-Ludlam made a motion, seconded by Commission Member Miller to approve construction financins in the amount of $2,326,215.00 to Ramona Senior Housins Complex, Inc., for the development of forty-four (44) units of senior housins. The motion carried by the followins vote: Ayes: Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Abstain: None. Absent: Commission Member Estrada. Commission Members Noes: None. JOIIT REGULAR 5434R(dla) - 10 - COMMISSIOR MIROrBS AUGUST 19, 1991 ,1; b y o () o - a - . o o 10. SEllIOR HOUSIlIIG PROPOSAl. FROM HALC IlWESDu5KT HOLDIlIIG CORPORATIOIl AIm HI€!IIUIm I.llTRRRA. CHURCH (Items 10 and 11 discussed as one item.) MOrIOIl: That the Community Development Commission approve construction financing in the amount of $2,922,636.00 to Highland/Lutheran Church for the development of fifty (50) units of senior housing. (Communitv Develonment Commission) Commission Member Hernandez made a motion, seconded by Commission Member Pope-Ludlam to approve construction financing in the amount of $2,922,636.00 to Highland/Lutheran Church for the development of fifty (50) units of senior housing. The motion carried by the following vote: Ayes: Reilly; Hernandez; Maudsley; Minor; Pope-Ludlam; Miller. Abstain: None. Absent: Commission Member Estrada. Commission Members Noes: None. BlID or COlfSlft CALIlIDAlt 13. CLOSED SESSIOIl heard. Timothy C. Steinhaus reported there were no Closed Session items to be 14. AD.JOUUMEll'l' Chairman W. R. Holcomb adjourned the meeting of the Mayor and Common Council/Community Development Commission to Tuesday, September 3, 1991, at 8:30 a.m., in the Council Chambers of City Hall, 300 North "D" Street, San Bernardino, California. Respectfully submitted, DlUUmI J. IIDDERSOIl, EXecutive Director/ Secretary to the Commission JOIBr UGULAlt 54341(dlll) -11- COMMISSIOIl MINUTES AUGUST 19, 1991 ~i?