HomeMy WebLinkAboutRS01-Economic Development Agency
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DBVELOPIIIIIr DBPh.umoo.. 01' ~
CIT!' 01' SAIl RJrn'&IInlBO \wi
IlBOOBST !'OR COIIIISSIOB/COtIlICIL ACTIOB
From:
ICEmmTB J. HENDERSON
Executive Director
Subject:
SAIl RJrn'.umlBO lIEIGBBORROOD
IlBSTOJlATIOB PROJBCT
Date:
Augu.t 30, 1991
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SvDoD8i. of Preyfoaa C~f..ianlrJmm~il/C~fttea Actione.):
Thi. project has been previously been previou.ly considered by the
Housina Committee at regularly .cheduled meetinaa and the Community
Development Commi..ion in clo.ed .ea.ion.
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Rec~.nded Botione.):
eC-fty DeYel........t C~t..ion)
IUrIOB A:
That the Community Development Commi..ion approve the deal
points agreed upon by the Development Department and
Empire Bay, a California Joint Venture, aa aet forth in
the .taff report and direct Agency Counsel to prepare an
appropriate Owner Participation Agreement.
1UrI0B B:
That ataff be authorized to advance to Empire Bay, a
California Joint Venture. up to $1.1 million dollara of
the $1.4 million dollar. in Ba.ic Aaaiatance in order to
cloae various e.crowa related to the San Bernardino
Neighborhood Re.toration Project.
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becutlve Di ector
."'fDfetrator
Contact peraon(a):
~en B~deraonlEd Florea
Phone:
5081
Project Area(a):
Central Citv
Ward(a):
1
Supportina Data Attached: Staff ReDort: atta~hmenta
FlJRDING IlBQUIREMEBTS: Amount: h. 4 million Source: 2011: Set Adde
Budget Authority: beiDR aouRht
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C~faaianlCftnn~il Bates:
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KJH:EF:dlm:543lR
COIIIISSIOB I'WIYIE
Reetin& Date: 09/03/1991
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Agenda It.. -.bar: G
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DBVELOl'IIIft DBP.&.u.n...1
STAFF RBPORr
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San Be_ami..o .eillhborhood Reatoration Proiect
Empire Bay, a California Joint Venture, has proposed a neighborhood
revitalization strateay whiCh includes as its primary component a
comprehenaive housina development project whiCh will provide
homeownership opportunities to very low, low and moderate income
households.
Empire Bay consiats of Mr. John W. Mays, owner of Casa Madrona Hotel
and Restaurant, Mr. Dan Fauchier, owner of the FauChier Group and
General Buildina Contractor and Debra Sansom, a Joint Venture Partner.
Empire Bay is expected to have formal contractual relationships with
Project Home Run, a private nonprofit housina development corporation
and a relocation consultant to handle infill housina homeownership
opportunities for the very low income and relocstion activities
associated with the project.
Phase "I" of the project envisions the development of approximately
one-hundred, forty-four (144) homeownership opportunities on the block
bounded by 6th Street on the south, "G" Street on the west, 7th Street
on the north and "F" Street on the east. The homeownership
opportunities would be apportioned, as follows:
1. Approximately twenty-six (26) homes to be relocated to infill sites
throughout the City by Project Home Run. These homes will be
affordable to households with incomes at $18,000 per annum.
2. Approximately fifty-three (53) 1,000 square foot, two (2) bedroom
townhomes for households whose annual income do not exceed $28,800
a year.
3. Approximately sixty-five (65) 1,200 square foot, three (3) bedroom
townhomes for households whose annual incomes do not exceed $36,800
a year.
The Housina Comaittee had previously received an oral presentation from
the development team and subsequently recommended to the Community
Development Comaission that the project be approved in concept. The
Comaission received a presentation in closed session and voted
affirmatively to allow land acquisition to continue. The Commission
also directed ataff to work with the development team in order to
structure an appropriate aareement between the developer and the
Department. AttaChed is a letter of commitment from California Federal
Bank and a map showina Phase "I" and subsequent phaaes.
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KJH:EF:dlm:543lR
COIMISSIO. IIIBTIIIG
Meetina Date: 09/03/1991
Aaenda Item -..ber: _
DEVELOPImft DBPAnIlUll: SUIT IIBPORr
San BemardiDo Res~tion Project
Aquat 30, 1991 V
Pa&e -2-
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The proposed agreement essentially contains the fOllowing deal points,
which are recommended for consideration and Commission action, as
appropriate:
1. $1.4 million dollars of Basic Assistance would be provided to the
project with the initial $1.1 million dollars to be advanced during
the month of September to close the escrows that are presently in
place. The additional $300,000 would be used to close additional
escrows or would be contributed into the project upon the developer
obtaining the construction financing. One-hundred thousand dollars
of the $1.4 million dollars in basic assistance would be returned
to the developer as reimbursement for funds advanced by developer
in connection with acquisition activities.
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2. The developer would be obligated to obtain construction financing
within twelve (12) montha from the date of the Agreement and if
construction financing had not been obtained within such time, the
Development Department would have the ability, after the conclusion
of the twelve (12) month periOd, to purchase the project from the
developer by assuming the existing indebtedness which had been
previously assumed by the developer.
3. The Development Department would provide $400,000 in silent second
deeds of trust on the properties for purchasers who would require
such second deed of trust financing to close the gap between the
combined down payment and first mortgage finanCing that such
persons could qualify for and the purchase price. Development
Department staff will determine all the parameters of this "silent
second" program, and the Owner Participation Agreement will contain
the income limits and sale price limits applicable to the very low
income, lower income and moderate income purchasers.
4. The Development Department would agree to use ita best faith
efforts to consider condemnation, if necessary, but the developer
would bear all land acquisition costs, le&al fees, appraisals and
other related costs in connection with the eminent domain
proceedings if the cost for land acquisition exceeds the $1.4
million dollars of the Basic Assistance to be provided by the
Development Department.
5. The developer would be liven the right of first refusal to
undertake similar developments on four (4) other contiguous blocks
in the vicinity of the initial project. The Owner Participation
Agreement will define the mechanism for the developer to exercise
the right of first refusal inClUding the notification and rejection
process and the terms under which the Development Department could
proceed on a similar project with another developer. The right of
first refusal would last for a period not to exceed five (5) years
from the date of the Agreement.
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KJH:BF:dlm:543lR
COIIIISSIOIr IIIBTIlIG
Reet1n& Date: 09/03/1991
Agenda It. wu.ber: _
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DEVELOPMD'r DIPO..........l STAFF REPORT
San Bernardino Res~tion Project
Aupat 30, 1991 "V
Paae-3-
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6. The Development Department would agree to use best faith efforts to
assist the Developer and Project Home Run in obtaining the
construction financing. This would not, however, cODlllit the
Development Department to obligate any of its funds or to pledge
any assets or tsx increment funds to obtain such construction
financing, but would merely cODlllit the Development Department to
cooperate with the developer in providing information and attending
meetings with respect to obtaining a construction lender. If the
developer has been unable to obtain construction financing, but has
otherwise complied with the terms and conditions of the Owner
Participation Agreement, the developer and department, together,
shall prepare a strategy for obtaining such construction financing
and su~it such strategy to the CODlllunity Development CODlllission
for approval.
7. The Development Department will pay to developer a six percent (6%)
management fee. Such management fee would be the sum of all
acquisition, demolition and conatruction activities. The
manaaement fee will be disbursed in pro-rata increments when agreed
upon benchmarks have been met by the developer.
The developer will be psid an additional three percent (3%) of the
sum of acquisition, demolition and construction at such time as the
developer has constructed and sold to eligible households all
one-hundred eighteen (1l8) units of housing.
8. The $1.4 million dollar. of Basic Assistance provided by the
Development Department would be deemed to be repaid from the new
tsx increment revenue. generated frOll the project of approximately
$136,000 a year for the remaining life of the plan (1993 through
2018 equal. twenty-five (25) years multiplied by $136,000 equals
$3,400,000; present value of $136,000 for twenty-five (25) years at
seven percent (7%) interest equals $l,584,887).
9. The developer will record affordability covenants running with the
land and adopt sale. price controls as a result of receiving the
$1.4 million dollars in Basic Assistance and an additional $400,000
in assistance to finance the "Silent Second Deed of Trust"
program. Such affordabi1ity convenants and sales price controls
shall be in accordance with Community Redevelopment Law.
Based upon the foregoing, staff recoDlllends adoption of the form motion.
J.
Develo.-mt
, beeaU...e Director
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KJH:BF:dlm:543lR
CClMISSIOIf IIBBrIlIG
Meeting Date: 09/03/1991
Aamula It. w-ber: _
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CALIFORNIA FEDERAL BANK
A....S.... !!In
June 24, 1991
Dan Fauchier
Empire Bay
985 Via Serana
Upland, CA 91786
Dear Dan:
I am extremely pleased to announce the Federal Home loan Bank's approval
of our Affordable Housing Program application. We received $547,777 to
subsidize 79 very low. and low.jncome residences which is the full amount
applied for. The combined efforts of all parties involved will make this project
successful in helping to meet housing needs in the City of San Bernardino.
On behalf of the Bank, I look forward to working with you and the CO-sponsors in
the future. .
Very truly yours,
~'fs6JU..
Christina Sutherland
Vice President
CRA Manager
CC: Ken Henderson, San Bernardino Redevelopment Agency
John Husing, Empire Bay
Fr. Alfred Pinto, Project Home Run
California Federal Bank, FSB
5700 Wilshire BOUlevard, Los Angeles, California 90036 Telephone (213) 932'4321
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Eleventh District Recipients of Affordable Housing Program (AHP)
Subsidies from the Federal Home Loan Bank of San Francisco
FHLB Shareholder(s)
American Savings Bank, F.A..
Irvine, CA
American Savings Bank. F .A..
Irvine, CA
California Federal Bank, a Federal
Savings Bank, Los Angeles, CA
Citibank, Federal Savings Bank,
Oakland, CA
Citibank, Federal Savings Bank,
Oakland, CA
Citibank, Federal Savings Bank,
Oakland, CA
Citibank, Federal Savings Bank,
Oakland, CA
Citibank, Federal Savings Bank,
Oakland, CA
Citibank, Federal Savings Bank,
Oakland, CA
Citibank, Federal Savings Bank,
Oakland, CA
Citibank, Federal Savings Bank,
Oakland, CA
Citibank, Federal Savings Bank,
Oakland, CA
Spring 1991 Competition
Sponsor(s)
Marin City Community Development
Corporation and Marin Ecwnenical
Association for Housing, San Rafael.
CA
Jubilee Wes~ Oakland, CA
San Bernardino Redevelopment Agency,
San Bernardino, CA; Project Home Run,
Inc., Colton, CA; and Empire Bay,
Upland, CA
Sacramento Housing and Redevelop~
ment Agency. Sacramento. CA
Indochinese Housing Development
Corporation, San Francisco, CA
Cabrillo Economic Development
Corporation, Saticoy, CA
Los Angeles Community Design
Center, Los Angeles, CA; and Venice
Community Housing Corporation.
Venice, CA
ASIAN, Inc., San Francisco, CA
Chicanos Por La Causa, City of Tucson.
and Pima County Community Services,
Tucson, AZ
Los Angeles Community Design Center
and The Skid Row Housing Trust,
Los Angeles, CA
Chinese Community Housing
Corporation, San Francisco, CA
Therapan Associates, San Rafael, CA
Name and Description of Project
New construction of 30 owncr.occupied townhouses on Braun
Court, Marin City, CA; S216,059 subsidy; 16 AHP mortgages;
6 very-low-income
Acquisition, rehab, and consuuction of 12 multifamily rental
units; SI13,062 subsidy; 12 very.low-income
Purchase, rehab, and relocation of 26 dwellings, and new
construction of 106 single-family lOwnhomes; $547,777 sub.
sidy; 79 mortgages; 26 very-low-income
Purchase and rchab of single-family vacant/boarded properties
in Oak Park and Del Paso areas for firsHime homebuyers;
S375,OOO subsidy; 25 mortgages
Purchase, rehab, and seismic retrofit of 35-unit Eddy Street
Aparunents; S153,278 subsidy; 29 very-low-income
New construction of 100 multifamily rental units at Moorpark
Villa Apanments, Moorpark, CA; S5OO,OOO subsidy; 67 very-
low-income
Acquisition and rehab of 14-Wlit Navy Blue Aparunents in
Venice; $17,064 subsidy: 3 very-low-income
Rehabof26units and new constnlctionof 10 Wlits on O'Farrell
Street, San Francisco; $41,486 subsidy; 35 very-low-income
Purchase of approximately 50 RTC, HUD, V A, and FmHA-held
single-family homes; $300,000 subsidy: 28 vcry-low-income
Acquisition and rehab of mixed-use Produce Hotel, Los Ange-
les, to single-room-occupancy (SRO) units, loft spaces, retail
commercial space; S514,833 subsidy; 110 units; 95 very-low-
income
Tenderloin Family Housing. San Francisco; new construction
of 175 aparunents, retail space, childcare facility, and parking
strUCture; SI,247,053 subsidy; 47 very-low. income
Refinancing of 4 single-family group homes and acquisition of
2 additional group hornes in San Rafael, Kentfield, and San
Anselmo, CA; SI03,114 subsidy; 24 very-low-income rooms
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