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HomeMy WebLinkAboutMinutes - City Council - 2008-11-17 - Special Meeting 202 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California November 17,20085:15 p.m. The meeting was called to order by Mayor Stegall with the following Council Members present: Bosetti, Dickerson, Jones, and Murr~y. Also present were City Manager Starman, City Attorney Duvernay, Assistant City Manager Tippin, Assistant to City Manager Clark, Senior Redevelopment Project Coordinator Thompson, Senior Redevelopment Project Coordinator Haddox, Associate Redevelopment Project Coordinator Bade, Assistant Redevelopment Project Coordinator Rudolph, City Clerk Strohmayer, and Assistant City Clerk Mize. I JOINT MEETING OF THE CITY COUNCIL AND REDDING REDEVELOPMENT AGENCY PROPOSED DEVELOPMENT FUNDING AGREEMENT - Community Revitalization and Development Corporation for property located at 2052 Placer Street (R-030-100-055) Assistant City Manager Tippin provided highlights of the Report to City Council and Redding Redevelopment Agency dated November 7,2008, incorporated herein by reference, regarding a request by Community Revitalization and Development Corporation (CRDC) to enter into a Development Funding Agreement (DF A) for the acquisition and the rehabilitation of property located at 2052 Placer Street. Mr. Tippin explained that CRDC is proposing to acquire and rehabilitate an existing multi- unit structure containing 4 two-bedroom rental units to be made available at an affordable rent to very-Iow- and low-income households. The estimated total cost of the project is $385,000, which includes $168,400 for acquisition and $186,600 for rehabilitation. As proposed, a $30,000 HOME Program grant will be used for lead-based paint testing, removal, monitoring, and mitigation. He further explained that the draft DF A proposes financing in the form of a HOME Rehabilitation loan not-to-exceed $177,500 at zero percent interest with a 20-year term. Monthly payments on the City's loan would commence following lease-up ofthe units. The Agency's financing will be in the form of a loan, not-to- exceed $177,500, with a simple interest of one percent with a 38-year term. I Mr. Tippin stated that the City of Redding's Housing Loan Committee has reviewed and approved CRDCs funding request and subsequently recommended the request be forwarded to the Council and the Board for final approval. Mr. Tippin recommended that the Council authorize the Mayor to execute the DF A providing HOME Participating Jurisdiction Funds which includes a loan in an amount not- . to-exceed $177,500 and a grant in an amount not-to-exceed $30,000 for lead-based paint testing and mitigation. He further recommended that the Agency authorize the Chair to execute the DFA providing funding in an amount not-to-exceed $177,500 in Low- and Moderate-Income Housing Set-Aside Funds. Noting the Board's previous interest in utilizing bank-owned properties, Mr. Tippin pointed out that both the City's and the Agency's Downpayment Assistance Programs (DAP) have seen a significant increase in the purchase of bank-owned homes. He further noted that an informational Housing Workshop is being developed for the Council/Agency Members relative to the policies and procedures involved with the various affordable housing programs. I In response to Council! Agency Member Jones, Associate Redevelopment Project Coordinator Bade explained that as part of the due diligence process, staff, the General Contractor, and the Developer have found the units to be structurally sound with only minor modifications needed. He explained that there is three-to- four- feet of crawl space underneath the structure that was built in the late 1930s in lieu of a basement. 11/17/2008 203 MOTION: Made by Council Member Jones, seconded by Council Member Bosetti, to authorize the Mayor to execute the DF A with the City, the Agency, and CRDC providing HOME Participating Jurisdiction Funds consisting of: 1) a loan in an amount not-to-exceed $177,500; and 2) a grant in an amount not-to-exceed $30,000 for lead-based paint testing and mitigation for the acquisition and rehabilitation of2052 Placer Street. The Vote: Unanimous Ayes I MOTION: Made by Agency Member Stegall, seconded by Agency Member Jones, to authorize the Chair to execute the DF A with the City, the Agency, and CRDC providing funding in an amount not-to exceed $177,500 in for the acquisition and rehabilitation of . property located at 2052 Placer Street. The Vote: Unanimous Ayes REQUEST FOR A SIX-MONTH TIME EXTENSION - Building Innovations Group, Inc. re acquisition of property located at 1795 Pine Street, formerly City Parking Lot No.4 (C-070-200!P-050/R -030-145-050) Senior Redevelopment Project Coordinator Haddox provided an overview of the Report to City Council and Redding Redevelopment Agency dated November 7, 2008, hereby incorporated herein by reference, relative to a request by Building Innovations Group, Inc. (BIG) for a time extension for the trans.fer of Agency-owned property located at 1795 Pine Street, formerly City Parking Lot No.4. Ms. Haddox recalled that in October 2006, the Council authorized the sale of Parking Lot No.4 to the Agency, with the condition that a subsequent sale of the property to BIG would occur no later than December 31,2007. If the sale to BIG did not occur by that date, the Property was to automatically revert back to the City. A reversion clause to that effect was included in the Grant Deed transferring the Property to the Agency, as well as the Deed of Trust and Promissory Note. At a joint meeting in December 2007, in response to a request by BIG, both the City and the Agency approved a one-year extension, to December 31,2008, for BIG's acquisition ofthe Property. I Based on discussions with the City's Development Services Department relative to the entitlement process, it was recommended that the Council extend the time frame for the transfer of Agency-owned property located at 1795 Pine Street to BIG for an additional six- months to June 30, 2009. She further recommended that the Council grant a six-month extension of the reversion clause in the Deed of Trust, Grant Deed and Promissory Note that transferred title of the Property to the Agency to June 30,2009. In response to Council! Agency Member Dickerson, Ms. Haddox explained that a condition of the sale is worded such that the Council has to authorize the extension to the reversion clause or the property will revert back to the City. She further responded that the year and a half delays have been caused by a combination of issues that have arisen between the Riverfront Playhouse's renovation ofthe former Carl's Tire building and BIG's entitlement issues relative to the housing component. The Riverfront Playhouse has already requested that its project be separated on the Use Permit submitted to the City's Development Services Department. In response to Council! Agency Member Dickerson, Assistant City Manager Tippin explained that the only formality that remains for Riverfront Playhouse and BIG to separate their projects is for Riverfront to request a time extension for its entitlement process to be completed from the Agency at a subsequent meeting. I Council! Agency Member Jones expressed his concern relative to the parking issues, citing examples such as the Cascade Theater and Riverfront Playhouse events and if there is sufficient parking in the Downtown area. Mr. Tippin noted that the project entails eliminating a parking lot in the Downtown area, and, if BIG does not complete the project during this extended time period, the property will revert back to the City. Council Member! Agency Chair Bosetti opined that he would like the Agency to seek other suitors for this property if BIG cannot complete the project at the end of the proposed time extension, emphasizing the need for more affordable housing in the Downtown area. 11/17/2008 204 Council/Agency Member Dickerson indicated that it is the expectation of the Council and the Agency that if the requested extension is granted, BIG will focus sufficient resources on completing the entitlement process in a timely fashion. He opined that additional extensions, if requested, were unlikely to be approved. MOTION: Made by Agency Member Dickerson, seconded by Agency Member Jones, to approve the request from Building Innovations Group, Inc. for a six-month time extension to June 30, 2009, for acquisition of Agency-owned property located at 1795 Pine Street. The Vote: Unanimous Ayes MOTION: Made by Council Member Dickerson, seconded by Council Member Bosetti, to approve a six-month extension, to June 30, 2009, for the acquisition of Agency-owned property located at 1795 Pine Street by Building Innovations Group, Inc., and to extend the reversion clause in the Grant Deed, Deed of Trust, and Promissory Note transferring title of said property to the Agency for an additional six-months to June 30, 2009. The Vote: Unanimous Ayes I There being no further business, at the hour of6:06 p.m., Mayor Stegall declared the meeting adjourned. APPROVED ~~~ May r ATTEST: I ~~ City Clerk / 0 I 11/17/2008