1992/10/13 Community Development Agency Minutes COMMUNITY DEVELOPMENT AGENCY
OF
THE CITY OF ROHNERT PARK MINUTES
October 13, 1992
The Members of the Community Development Agency of the
City of Rohnert Park met this date immediately after the
City Council meeting at approximately 10:00 p.m. in the
City Offices, 6750 Commerce Boulevard, Rohnert Park, with
Chairperson Spiro presiding.
Call to Order Chairperson Spiro called the meeting of the Community
Development Agency of the City of Rohnert Park to
order at approximately 10:00 p.m.
Roll Call Present: (4) Agency Members Eck, Hopkins, Reilly, and
Chairperson Spiro
Absent: (1) Agency Member Hollingsworth
(Out of town on City business)
Staff present for all or part of the meeting: Executive
Director/City Manager Netter, City Attorney Flitner,
Assistant to the City Manager Leivo and Director of Public
Works/City Engineer Brust .
Approval of Minutes Upon motion by Agency Mir Eck, seconded by Agency
Member Hopkins, the minutes of September 22, 1992 were
unanimously approved as submitted.
Approval of Bills Upon motion by Agency Member Reilly, seconded by
Agency Member Hopkins, the bills presented per attached
list in the amount of $281, 958 . 15 were unanimously
approved.
Acknowledging The Executive Director/Secretary's report on the posting
Exe.Dir./Sec.Report of the agenda was acknowledged.
Lhscheduled Public Chairperson Spiro stated that in compliance with State
(Appearances Law, (The Brown Act) , anyone in the audience who wished to
make a comment may do so at this time. No one responded.
Property Foreclosure/Santa Barbara Drive - Executive Director Netter explained
copies provided to Council of staff report dated October
8, 1992 from Accountant/Auditor Angela Fogle regarding
foreclosure proceedings on property located on Santa
Barbara Drive and authorization to publish public
notice of sale.
A motion was made by Agency Member Hopkins, seconded by
Agency Member Reilly, and unanimously approved,
authorizing public notice of sale to be published
pertaining to above-reviewed property foreclosure on Santa
Barbara Drive as recommended by staff.
COMMUNITY DEVELOPMENT AGENCY/CITY OF ROHNERT PARK MINUTES (2) October 13, 1992
Inter-Faith Shelter Network (IFSN) - Executive Director Netter referenced letter
received September 28, 1992 from Inter-Faith Shelter
Network and shared contents therein requesting
disbursement of funds previously budgeted in the amount of
$6 , 000 to assist in covering start-up expenses .
Attachments included 1991-92 IFSN Annual Report and
confirmation of non-profit status from both the Internal
Revenue Service and the State of California Franchise
Tax Board.
A motion was made by Agency Member Hopkins, seconded by
Agency Member Reilly, and unanimously approved, ratifying
approval of grant in the amount of $6,000 to Inter-Faith
Shelter Network from CDA housing set aside funds.
Burbank Housing Development Corporation - Executive Director Netter reviewed
copies provided to Agency of letter dated October 8, 1992
from Burbank Housing Development Corporation regarding
affordable housing project proposal on Santa Alicia Drive
Presbyterian church site (Community Garden site) .
John Morgan, Project Manager of Burbank Housing Develop-
ment Corp. distributed copies to Agency of letter dated
October 13, 1992 from Burbank Housing Executive Director
A.C . Sternberg regarding Leveraging of City Funds-
*Copy attached to Presbyterian Church Project and shared contents therein.
original set of He responded to various Agency questions regarding this
these minutes. matter pointing out that the reason for the significantly
higher funding request, as compared to the previous Tower
Apartments project, is because of the loss of State RHCP
funds. Mr. Nbrgan pointed out that the result of this
loss of State funds is that much more local subsidy per
unit is needed to obtain the rent levels needed by many
working but low income families with children in the
community. He referenced the other possible subsidy
sources as listed in the letter distributed tonight and
said these sources will be pursued prior to finalizing
the request for City CDA funds.
Discussion followed on the "hit" by the State of
California in the amount of $538 , 000 . Mr . Netter
explained the State did not zero in on the housing funds
and he had a feeling that the housing set aside funds
would not be a target.
Discussion continued on the ownership of the project and
the possibility of the Presbyterian Church being an
investor in the project. Further discussion followed
pertaining to review of the figures contained within the
above-referenced reports provided for Agency review and
consideration.
COMMUNITY DEVELOPMENT AGENCY/CITY OF ROHNERT PARK MINUTES (2) October 13, 1992
Executive Director Netter concluded that this item was
placed on tonight's agenda for direction and that Agency
action was not necessary at this time. There is still the
need to further consider the leveraging, ownership, etc.
Mr. Netter said, for Agency information, that the County
does have $400,000 in HONE funds.
Agency agreed there was a need for further breakdown of
the figures and details on the ownership and investment
group involved in the project.
Agency Member Hopkins said $2.4 million for this project
is quite expensive, especially when considering provisions
for affordable housing. He recalled a conversation with
Hugh Codling a year or so ago wherein Mr. Codling said he
could build 800 sq. ft. units for approximately $40,000.
Agency Member Hopkins said he would like to give Mt .
Codling an opportunity to do that.
Uhscheduled Public Chairperson Spiro asked if anyone in the audience wished
Appearances to make an appearance at this time. No one resp
onded.
Adjournment There being no further business, Chairperson Spiro
adjourned the meeting at approximately 10:20 p.m.
DepuA4Ae Chairperson
A eDA
• s' • • BURBANK HOUSING DEVELOPMENT CORPORATION
II I 3432-A Mendocino Avenue • Santa Rosa. CA 95403 • (707) 526-9782 • Fax (707) 526-9811
October 13 , 1992
Rohnert Park City Council
City Hall
6750 Commerce Boulevard
Rohnert Park, CA 94928
Re: Leveraging of City Funds--Presbyterian Church Project
Dear City Council Members ,
City Staff have raised the question : "Are we leveraging City
Redevelopment agency funds as far as possible? "
We suggest the following approach to assure you that the answer to
that question is "Yes " .
1 . Burbank has an opportunity to purchase the 1+ acre site at
Arlen Drive and Santa Alicia from Faith Presbyterian Church for
$200, 000 .
2 .Preliminary site evaluation indicates the possibility of
developing 20-25 rental town homes on the property.
3 . At this time we know of 5 possible subsidy sources for this
project :
. . .Low Income Housing Tax Credits (Federal--Legislation extending
same passed by the Congress pending signature or veto by
President)
. . .Community Development Block Grants (County)
. . .HOME Funds (County--the new federal housing program)
. . .Affordable Housing Program (AHP) (Federal Home Loan Bank)
. . .and Rohnert Park Community Redevelopment Agency
4 . Burbank asks that the City determine an average level of
affordability (below 60% of median income) which it desires to
reach in this development, e . g. ( for a 3 bedroom, 1 1/2 bath unit) :
At 35% of median, indicated rent is $332 .
At 50% of median, indicated rent is $493 .
5 . Burbank will apply to the first four sources of financing named
above and return to the City for such additional funds as may be
necessary to reach the targeted affordability level .
A Non-Profit Organiruion Serving Sonoma County
6 . To move the project ahead and take advantage of a good site at
a good price, Burbank at this time requires funds for site purchase
and for predevelopment costs of architecture and engineering, etc.
in anticipation of rezoning and subsidy applications .
Burbank therefore requests :
a. For Site Purchase $200 , 000
b. For Pre- development) 60 , 000
TOTAL $260, 000
Sincere regards ,
C
A. C. Sternberg, xecutive Director
Proposed Pre-Development Budget--Presbyterian Church Site
Engineering/Architecture $18 , 000
Survey 3 , 000
Taxes 3 , 000
Toxics Assessment 4, 000
Pre-development Staff Costs 18, 000
Funding/Tax Credit Application Fees 5, Q00
City Application/Plan Check 2 , 000
Legal 2 , 000
Pre-development Contingency 5 , 000
TOTAL $60, 000