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HomeMy WebLinkAboutRDA Minutes 1996-04-24 voL. Chairman Jack Drago M I N U T E S_ a} Boardmembers: Joseph A. Fernekes Redevelopment Agency Eugene R. Mullin John R. Penna Municipal Services Building Robert Yee Community Room April 24, 1996 AGENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 7:07 p.m. ROLL CALL: Boardmembers present: Mullin, Penna, Yee and Drago. Boardmembers absent: Fernekes. AGENDA REVIEW AGENDA REVIEW Executive Director Wilson stated there were no changes to the Agenda. CONSENT CALENDAR CONSENT CALENDAR ._x_ Motion to approve Minutes of the Special Meeting of Approved. 4/3/96 and Regular Meeting of 4/10/96. .5-,-lo ~ 2. Motion to confirm expense claims of 4/24/96. Approved in the amount of $1,610.53. M/S Mullin/Yee - To approve the Consent Calen- dar. Carried by unanimous voice vote. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS 3. Motion authorizing staff to prepare an agreement Coordinator of CDBG Fragoso stated the owner of between the Agency and Robert Mullhall for a loan the Coast Gas Station at the corner of Hillside and for rehabilitation of Coast Gas Station at 905 Linden Linden has worked with City staff during the last Ave. using CDBG funds. .5'~O3 several months and has been granted a use permit to make improvements to expand the market section of the gas station. She stated many of the conditions required of the use permit are extensive site improvements including landscaping, drainage and right-of-way and the owner has requested financial assistance to undertake the site within a five month period rather than have to wait up to two years to · - undertake the work on his own as funds become ~ available. She stated the financial package being proposed is a 4/24/96 Page I AGENDA A~!ON TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution - Continued. $60,000 thousand Redevelopment Agency loan that will be paid with a 3 % interest rate with an addi- tional $16,900 to undertake improvements to repair the sidewalks that are broken and an access ramp around the gas station and landscaping and drainage improvements. The proposal is that City staff will undertake the improvements to ensure they happen to the City's specifications and time period. She stated that portion of the loan will be deferred and is forgivable, the property owner must maintain the appearance of the property. She stated all plans have been approved by the police and the Engineering Dept., all recommenda- tions have been included in the plans and she be- lieves this will be a great improvement to the loca- tion. Discussion followed: the true cost of the loan; it is a $70,900 loan from the Agency, but only the cost presented is before Council at this time because the owner has been given six months to come up with - the plans for other things; the $16,900 starts out being a loan, but after a 15 year period where he meets the conditions and maintains the property that portion of the loan can be forgiven; should the owner not maintain the site the loan can be called in; the owner is obligated for a loan of $76,000, however 16,900 will be to the General Fund to reimburse the City; does the City want to improve someone's property; the property is in the right-of- way; it is the City's objective not to do work on private property; the system should be a private system because it needs cleaning from time to time and Councilman Yee has a problem with the City doing the maintenance; the separator could be sepa- rated out and the maintenance obligation could be the owner's; if there is a project that triggers right- of-way improvements those are picked up as a con- dition of the project, but if the City is doing the action then we assume the cost; etc. M/S Yee/Mullin - To authorize staff to prepare an agreement between the Agency and Robert Mullhall for a loan for rehabilitation of Coast Gas Station at 905 Linden Ave. using CDBG funds and subject to a separator modification to keep it out of the right-of- way. 4/24/96 Page 2 ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS ~. Motion - Continued. Carried by unanimous voice vote. 4. Motion authorizing staff to prepare an agreement Coordinator of CDBG Fragoso stated the City has between the Agency and owners of Grand Hotel for a numerous State mandated obligations, among them loan for rehabilitation of the Grand Hotel/Affordable is the requirement to replace the eleven units lost Housing Project at 731 and 739 Airport Blvd. using from a development in the downtown and at that CDBG funds. ..5 ~/03 time we were limited in replacing those units. There is also a requirement to expand the funds in the low and moderate set aside funds in a timely manner and we have an additional requirement to spend Federal Home funds to the City on an afford- able project and are committed to preserve low to moderate income housing, particularly in the down- town redevelopment area. Boardmember Penna stated he would not participate in this discussion and will abstain on the vote be- cause he owns a piece of property next to this prop- erty. Coordinator of CDBG Fragoso related: the pro- posed level of funding is $338,000 of Home money that can only be used for housing; the requirements for set aside funds; this loan will be at 4% interest to be paid back over a period of 40-50 years with the $338,000 in Home funds providing matching grants to the project; another $29,000 for the project will come back to the Agency at a later date when the specifications are drafted; the City has the added opportunity with the project to participate with the youth building that is with the School District to provide job opportunities which is a separate item on the agenda; etc. Discussion followed: why is this interest 4% when the other loan was at 3 %; the first loan is small compared to this loan, plus the first owner has a cash flow limit for what he is able to pay back and 4% had been used for the Metro loan and is not an undue burden on the owners; have these projects gone before the Design Review Board; previously City sponsored projects have been exempt from the Design Review Board; concern that Airport Blvd. is the entrance to the City and that these projects should be seen by the Board and there should be a theme with the entrance in mind; the exterior will be painted; City Manager Wilson stated staff will meet with the Design Review Board and have a discussion on the project without delaying the 4/24/96 Page 3 AGENDA A~TION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS t. Motion - Continued. project; a new hotel is in that area that is out of character with the neighborhood; this is a lot of money to put into a building to replace low and moderate income housing units; Boardmember Mullin wants to see something on the facade, if not a theme at least something to spruce up that area of the City; those plans will be developed and will come before the Agency and the OPA allows for it to come before the City before the next phase; etc. M/S Yee/Mullin - To authorize staff to prepare an agreement between the Agency and owners of the Grand Hotel for a loan for rehabilitation of the Grand Hotel/Affordable Housing Project at 731 and 739 Airport Blvd. using CDBG funds. Carried by majority voice vote, Boardmember Penna abstained. 5. Resolution authorizing the Executive Director to enter Coordinator of CDBG Fragoso stated this is a Fed- into an agreement with the School district to partici- eral training grant to enable the School District pate in the Federal Youthbuild Program in collabora- training on the job to local low income youths and it tion with the rehabilitation of the Grand Ho- must work in conjunction with an affordable project. tel/Affordable Housing Project. 3-6'0.3 She stated they had met with the owners of the Metro Hotel and they have expressed enthusiasm in A RESOLUTION AUTHORIZING PARTICIPA- collaborating and applying for a grant. He stated TION IN THE FEDERAL YOUTHBUILD PRO- the School District will pull together teams of youths GRAM that will be incorporated into and a part of the job. She stated each of the parties involved is required to submit a resolution authorizing submittal of a grant for the program. Should the City be successful in securing funds those will be available in August and September, just in time for the construction of the Grand and Metro Hotels. Discussion followed: this part one of the discus- sions during the last School District Liaison meeting for joint participation and it is on the current agenda for the District; students will have a week in the classroom and will get classroom training and the following week go out to the job site during the construction phase of the project; these will be students working for their GED, not the regular students, but the drop outs being targeted for the project. M/S Mullin/Yee - To adopt the Resolution. RESOLUTION NO. 4-96 4/24/96 Page 4 AGENDA ACTION TAKEN ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS ~. Resolution - Continued. Carried by unanimous voice vote. GOOD AND WELFARE GOOD AND WELFARE No one chose to speak. M/S Mullin/Yee - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment was 7:37 p.m. RESPECTFULLY SUBMITTED, APPROVED. Barbara A. Battaya, Clerk ~/ ~ Jack Drago, Chairman / Redevelopment Agency / Redevelopment Agency City of South San Francisco / City of South San Francisco s~e entries of this Agency meeting show the action taken by the Redevelopment Agency to dispose of an item. Oral communications, arguments and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 4/24/96 Page 5