1991/05/14 Community Development Agency Minutes COMMUNITY DEVELOPMENT AGENCY
OF
THE CITY OF ROHNERT PARK MLNUI'ES
May 14, 1991
The Members of the Community Development Agency of the
City of Rohnert Park rret this date inurdiateiv after the
City Council meeting at approximately 9:54 p.m. in the
City Offices, 6750 Commerce Boulevard, Rohnert Park, with
Chairman Eck presiding.
Call to order Chairman Eck called the meeting of the Community
Development Agency of the City of Rohnert Park to
order at approximately 9:54 p.m.
Roll Call Present: (4) Agency Members Hopkins, Reilly, Spiro
and Chairman Eck
Absent: (1) Agency Member Hollingsworth
(out of town on business)
Staff present for all or part of the meeting: Executive
Director/City Manager Netter, City Attorney Flitner, City
Engineer Brust, and Assistant to the City Manager Leivo.
Approval of Minutes 'Jbon :ration by Agency Member Spiro, seconded by Agency
Member Reilly, and ',nanimously approved, the minutes
of April 9, 1991 were approved as submitted.
9pproval of Bills Upon motion by Agency Member Reilly, seconded by
Agency Member Hopkins, and unanimously approved, the
bills presented per attached list in the amount of
$71,310.94 were approved.
3clmowledging The Executive Director/Secretary's report on the posting
EbCe.Dir./Sec.Report of the agenda was acknowledged.
kisdaeduled Public Chairman Eck stated that in compliance with State Law,
klarances (The Brown Act) , anyone in the audience who wished to make
a comment may do so at this time. No one responded.
COMMUNITY DEVELOPMENT AGENCY OF THE CI'1Y OF ROHNERT PARK MINUTES
(2) May 14, 1991
Resolution No. A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE
91-08 CITY OF ROHNERT PARK AUTHORIZING A LOAN TO INNOVATIVE
HOUSING, A NONPROFIT CORPORATION FROM THE LOW TO MODERATE
INOOvE HOUSING FUND TO ASSIST IN PROVIDING HOUSING FOR LOW
INCOME HOUSEHOLDS
Executive Director Netter referenced copies provided to
Agency Members of staff report dated May 9, 1991 regarding
Innovative Housing Proposal and shared contents therein
regarding Interim Housing Task Force recommendations and
conditions of same. Mr. Netter explained the resolution
regarding this matter and introduced Innovative Housing
representative Robert Salisbury, Director of Development
who was present at tonight's meeting to respond to Agency
questions, if any. Discussion followed.
Upon motion by Agency Member Hopkins, seconded by Agency
Member Spiro, and unanimously approved, reading of
Resolution No. 91-08 was waived and said resolution was
adopted with additional changes as recommended by staff in
aforementioned report.
East Cotati Avenue Assistant to the City Manager Leivo referenced copies
Afford.Hsng.Project provided to Agency Members of his memo dated May 10, 1991
regarding East Cotati Avenue Affordable Housing Project
and shared the contents therein in which project design
meetings have been scheduled with the architect as
previously requested by the Agency. The proposed design
greetings/public hearings have been scheduled for May 16 &
30, 1991 from 7:00 p.m. to 9:00 p.m. at the Burton Avenue
Recreation Center . Mr . Leivo reviewed details as
explained in his above-referenced memo regarding the two
issues that needed to be brought to the Agency's attention
prior to the design meetings, specifically, 1) Article 34
of the California Constitution states that any public body
cannot develop, construct or acquire any "low rent housing
project" without voters approval , and 2) the appraisal of
the property as ordered by National Bank of the Redwoods,
a potential source of financing. The appraiser valued the
property at S360,000; the negotiated purchase sales price
was $550,000.
Discussion followed during which City Attorney Flitner
responded to inquiry from Council and said Article 34 was
enacted in 1950's or 1960's and has amendment stating that
a public body will not construct or acquire low income
housing without a vote of the people and he did not see an
easy way to get around it. Mr. Flitner said he researched
a provision regarding the statutes of limitation for a
challenge to this section, which may hold in court, but he
COMvU\JITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK MINUTES
(3) May 14, 1991
was not comfortable with this approach and concluded such
construction may be a violation of the California
Constitution, and therefore , thought the affordable
housing project being considered tonight would have to go
to the vote of the people. Mt. Flitner referenced a
Berkeley court case in which he heard that an individual
vote for each situation or project is not necessary.
However, he did not think Council should assist in
acquiring land for affordable housing projects until after
obtaining a vote of the people, and that the most prudent
thing to do would be to get the vote and then proceed.
Mr. Flitner said he would prefer doing more research on
this issue.
Nichols Stewart, Project Manager of Burbank Housing,
explained reasons for choice of the referenced property
for an affordable housing project determining this one the
best because of its size and availability, as well as
other available sites had various problematic areas of
concern. He reviewed reasons that CDBG funds could
probably not be used for this project because of Article
34 requirements, but thought Burbank Housing could package
it without the use of CDBG funds that would still give
sufficient subsidy.
Mr. Stewart explained communications with a San Francisco
attorney who suggested State funding not exceed 40% of the
project cost, that the anticipated burden of funding come
from federal programs, and that the project be treated as
a private equity and not treated under Article 34. Mr.
Stewart said representatives of Burbank Housing thouunt
the asking price was in line with other comparable
properties thoughout the county when compared to per unit
cost. He said there are a number of ways to proceed and
asked if the City Attorney would consider contacting the
legal firm that Burbank Housing has been dealing with in
San Francisco to review possibilities . Mt. Flitner
indicated he would contact said firm.
Mr. Stewart concluded his comments stating that a Train
concern is the funding that Burbank Housing has
anticipated for construction and that said State loan
application has a time line in which the first deadline is
June 3rd of this year and a second deadline is July 8th.
If these deadlines are missed, funding approval will
probably have to wait until after June 1992.
CONMJNITY DEVELOPMENT AGENCY OF THE CITY OF ROHNERT PARK MINUTES
(4) May 14 , 1991
Discussion followed during which concerns were expressed
regarding the appraisal of the property versus the asking
price, Executive Director Netter said CDBG funding can be
protected for a two year period and that what Burbank
Housing is asking Council to do is approve a project prior
to resolving the Article 34 and the appraisal issue.
Chairman Eck directed staff to obtain another appraisal on
the referenced property before proceeding any further and
said this item would be on the next CDA agenda.
1991 CDA Tax Alloca- Executive Director Netter referenced copies provided to
tion Refunding Bonds Agency of his memo dated May 10, 1991 for informational
purposes regarding 1991 Community Development Ardency Tax
Allocation Refunding Bonds ( S13 , 099 , 695 . 20 ) with
attachments on same including Purchase Agreement dated Nay
6, 1991 with Stone & Youngberg and Preliminary Official
Statement dated Nay 2, 1991. He said this refunding issue
is being issued with an average interest rate of 6.84%,
that the principal amoritization is over a 29 year period
and will save the City/CDA approximately $52,500 annually
which computes to a net per value savings of $328,000 over
the life of the issue.
Unscheduled Public Chairman Eck asked if anyone in the audience wished to
Appearances make an appearance at this time. No one responded.
Adjournment There being no further business, Chairman Eck adjourned
the meeting at approximately 10:21 p.m.
De y retary M rrran
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