HomeMy WebLinkAboutR02-Economic Development Agency
o
o
0"
o
o
DEVELOPIIEBT DEPARTIIEBT
OF TIlE CITY OF SAB R1!VII.lVnlBO
REQUEST FOR COIMISSIOB/COUllCIL ACTIOB
From:
KENNETH J. HENDERSON
Executive Director
Subject:
RACQUET CLUB VILLAGE
APAK:J:1ouunS
Date:
October 30, 1991
-------------------------------------------------------------------------------
SvnoDsis of Previous CommissionlCnnnril/~JURMfttee Action{s):
On October 29, 1991, the Housing Committee considered this matter and
recommended to the Community Development Commission approval of a request
from Racquet Club Village Apartments for assistance in the amount of
$400,000 from the Low and Moderate Housing Fund for the rehabilitation of
the apartment units.
-------------------------------------------------------------------------------
RecGmmPnded Motion{s):
(Cu.nmitv DevelolBent Commission)
ROTIOB:
That the Community Development Commission approve financial
assistance to Racquet Club Village Apartments in the amount of
$400,000 from its Low and Moderate Income Housing Fund to
facilitate the rehabilitation of this ninety-two (92) unit
apartment project, direct Agency Counsel to prepare a loan
agreement and authorize the Chairman and Secretary to execute
said agreement when completed.
If!;
Administrator
~
Executive Direct r
Contact Person(s):
Ken Henderson/Doris Daniels Phone:
5081
Project Area(s):
N/A Ward(s):
Four (4)
Supporting Data Attached:
Staff ReDort
FUNDING REQUI1U:MENTS:
Amount: $400.000.00
Source:
Low/Mod Housin2 Fd
Budget Authority:
To be Established
Commission/Council Botes:
-------------------------------------------------------------------------------
KJH:DAD:lab:0256E
COIMISSIOB IlEETIBG AGENDA
lIeeting Date: 11/04/1991
Agenda Item Bulllber:
c2-
'~~_..-::
o
o
o.
-
o
o
DEVELOPIIEIIT DEPARTIIEIIT
OF TIlE CIn OF SAIl IlERlWIDIIIO
STAFF REPORT
Racauet Club Villue ADartments
In 1985, Barbara and Morley Barsky developed Racquet Club Village (RCV),
a ninety-two (92) unit apartment project located at 2085 North Central
Avenue. In July, 1986, they sold the property and carried back financing
in the amount of $800,000 secured by a Second Deed of Trust on the
property. In February, 1991, the owner/developers commenced foreclosure
proceedings and obtained title to RCV on June 27, 1991 through a Deed in
Lieu of Foreclosure.
Inspection of the property by City staff has shown that due to a great
deal of deferred maintenance and disrepair, improvements will include but
not be limited to the following to rehabilitate the units: leaky roofs,
broken doors and windows, broken wrought iron fencing, faulty and
non-functioning air conditioning and heat pumps, pool repair, broken
asphalt, worn carpeting, window blinds and vinyl flooring, holes in
drywall, broken cabinets, malfunctioning water heaters and dishwashers,
stolen refrigerators, and extermination of ants and roaches.
Construction plans are currently being implemented to change the physical
appearance of the racquetball courts which had been condemned by the City
due to homeless and other squatters moving into the courts. Several
apartment units also met with proceedings from the City's Code
Enforcement Division of the Planning and Building Services Department.
To curb the criminal, gang and drug activities in the apartment units
that are located two (2) to three (3) blocks east of the Arden/Guthrie
Area, the owner/developers have taken over the property, hired a
full-time property management company consisting of a leasing manager,
maintenance manager and a maintenance assistant, implemented tenant
screening procedures, improved advertising and have begun substantial
physical rehabilitation to improve the overall appearance of the
apartment complex.
To complete the rehabilitation efforts, the owner/developers will require
the following:
1. A $1.6 million discounted payout to Franklin Fund.
2. Assistance in the amount of $400,000 from the Development
Department. The owner will fund the difference amounting to $1.2
million dollars.
-------------------------------------------------------------------------------
KJH:DAD:lab:0256E
COIKISSIOII IlEETIIIG AGEllDA
Meeting Date: 11/04/1991
Agenda Itelll ItuIIber:
02-
o
o
o.
-
o
o
DEVELOPMERr DEPAIrnumr STAFF RBPOIlT
Racquet Club Villll8e Apartllents
October 30, 1991
Page BuIIIber -2-
_________________________________________....0.-_____
3. A $1.6 million payout to be paid by the owner/developers to Franklin
Fund to be replaced with other financing. This replacement financing
would not trigger payback to the City of $400,000, plus accrued
interest. The Department's $400,000 loan will be subordinate to the
$1.6 million dollar replacement financing.
4. The City to relieve the owner/developers of debt service on the
$400,000 for the next three (3) to four (4) years in return for
repayment on the amount at 9.5% interest, rather than the requested
7.5% interest rate.
5. City to receive $400,000, plus accrued interest, at time of refinance
or sale of property.
6. Property owner to record affordability covenants for fifteen
(fifteen) years.
7. The number of units to be set aside for low income tenants will be at
twenty-percent (20%) or eighteen (18) of the ninety-two (92).
8. A loan origination fee of 1.5% will be charged.
On October 29, 1991, the Housing Committee considered this matter and
unanimously recommended to the Community Development Commission approval
of the subject request for financial assistance.
Based upon the foregoing, staff recommends adoption of the form motion.
KJH:DAD:lab:0256E
,
COIIfiSSIOIl ImBTIlIG AGENDA
Meeting Date: 11/04/1991
Agenda Item BuIIIber:
oL