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Home My WebLink AboutRDA Minutes 1998-10-14 Chairman Eugene R. Mullin M I N U T E S },~ Boardmembers: James L. Datzman Redevelopment Agency ~Joseph A. Fernekes Karyl Matsumoto Municipal Services Building John R. Penna Community Room October 14, 1998 AGENDA ACTION TAKEN CALL TO ORDER: (Cassette No. 1) 7:19 p.m. Chairman Mullin presiding. ROLL CALL: Boardmembers present: Datzman, Fernekes, Matsumoto, Penna and Mullin. Boardmembers absent: None. AGENDA REVIEW AGENDA REVIEW Executive Director Wilson Requested: - Hear Item//3 under Administrative Business. So ordered. - Add Motion to approve Subordination Agreement with MP Greenridge Assoc. in favor of Wells Fargo Bank, Counsel Mattas stated, adding this item to the Agen- National Assoc. da requires a 4/5 vote due to the fact it was learned of after the Agenda was posted. He stated Greenridge wants to close escrow on Friday and needs this action to be taken tonight. M/S Fernekes/Datzman - To add this item to the Agenda. Carried by unanimous roll call vote. CONSENT CALENDAR CONSENT CALENDAR 1. Motion to approve Minutes of the Regular Meeting of Approved. 9/23/98. 2. Motion to confirm expense claims of 10/14/98..5'q&.~ Approved in the amount of $969,380.75. 3. Resolution approving a $36 million bond issue to Removed from the Consent Calendar by the Execu- refinance the Gateway infrastructure and Willow tive Director to be heard under Administrative Busi- Gardens Project Bond Issue. .ff'6ttv~ ness. A RESOLUTION AUTHORIZING THE ISSUANCE OF ITS 1998 TAX ALLOCATION BONDS, SERIES A (GATEWAY REDEVELOPMENT PROJECT) IN THE PRINCIPAL AMOUNT OF NOT-TO-EXCEED $31,500,000, AND ITS 1998 TAX ALLOCATION BONDS, SERIES B (HOUSING SET-ASIDE TAX REVENUES) IN TIlE PRINCIPAL AMOUNT OF 10/14/98 Page 1 AGENDA ACTION TAKEN ----~.ONSENT CALENDAR CONSENT CALENDAR Resolution - Continued. NOT-TO-EXCEED $4,500,000, AUTHORIZING AND DIRECTING EXECUTION OF RELATED INDENTURES OF TRUST AND ESCROW AGREEMENT APPROVING SALE OF BONDS AND OFFICIAL STATEMENT, AND AUTHORIZ- ING OFFICIAL ACTIONS M/S Datzman/Matsumoto - To approve the Consent Calendar with the exception of Item No. 3. Carried by unanimous voice vote, with the exception of Item #1, wherein Boardmember Matsumoto ab- stained on the vote due to her non-attendance at the 9/23/98 meeting. ADMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS 3. Resolution approving a $36 million bond issue to Director of Finance Brooks related: those people in refinance the Gateway infrastructure and Willow the audience taking part in the bond issuance; the -- Gardens Project Bond Issue. .~qD,3 need for approval of the issuance of 1998 Tax Allo- cation Bond Series A to refinance the 1993 Gateway A RESOLUTION AUTHORIZING THE ISSUANCE Redevelopment Project Tax Allocation Bonds and to OF ITS 1998 TAX ALLOCATION BONDS, SERIES issue 1998 Tax Allocation Bonds Series B in order A (GATEWAY REDEVELOPMENT PROJECT) IN to finance, in part, the Willow Gardens Housing THE PRINCIPAL AMOUNT OF NOT-TO-EXCEED Project for not to exceed $36 million; the reasons $31,500,000, AND ITS 1998 TAX ALLOCATION for the bond issue are substantially a higher interest BONDS, SERIES B (HOUSING SET-ASIDE TAX rate, the refinancing is highly attractive to the City, REVENUES) IN THE PRINCIPAL AMOUNT OF the revenue generated will allow retirement of sec- NOT-TO-EXCEED $4,500,000, AUTHORIZING ondary debt still on the books from 1993 to AND DIRECTING EXECUTION OF RELATED Homart/Hines, the residual revenue available can be INDENTURES OF TRUST AND ESCROW escrowed to provide funding for future transporta- AGREEMENT APPROVING SALE OF BONDS tion/childcare projects in the Gateway, the issue will AND OFFICIAL STATEMENT, AND AUTHORIZ- provide the $3.15 million dedicated to the Willow ING OFFICIAL ACTIONS Gardens project; the revenue stream for payment of this bond will pay the principal and interest and continue to provide flexibility to Gateway projects in the future, the 20% low-moderate income housing set aside generated by our four-redevelopment pro- jects will provide the revenue to pay the Series B Willow Gardens Project Bonds. M/S Datzman/Matsumoto - To adopt the Resolution. RESOLUTION NO. I 1-98 Carried by unanimous voice vote. 10/14/98 Page 2 AGENDA ACTION TAKEN ---a, DMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS Resolution approving the Final Promissory Note and Boardmember Penna left the podium stating he once Deed of Trust for the Metropolitan Hotel. ~'q'~.3 represented one of the people involved in the Metropolitan Hotel and therefore had a conflict. A RESOLUTION APPROVING THE FINAL VER- SION OF THE PROMISSORY NOTE AND DEED Coordinator of Economic & Community Develop- TRUST FOR THE METROPOLITAN HOTEL RET- ment Beyer presented the staff report in a brief ROFIT manner. M/S Datzman/Fernekes - To adopt the Resolution. RESOLUTION NO. 12-98 Carried by majority voice vote, in that Board- member Penna did not take part in the discussion or vote on the item. 5. Resolution approving the assignment of the Metro- Coordinator of Economic & Community Develop- politan Hotel Owner Participation Agreement between merit Beyer gave a brief staff report on the long the Redevelopment Agency and Tipton Management term lease, and stated the OPA provides for the Company, Incorporated to Tipton Metro LLC..:q'q'~23 assignment. -- Chairman Mullin asked what a C company was. A RESOLUTION APPROVING ASSIGNMENT OF AN OWNER PARTICIPATION AGREEMENT Counsel Mattas stated he did not know, and will get BETWEEN THE REDEVELOPMENT AGENCY back to the Chairman. AND TIPTON MANAGEMENT COMPANY, INC. TO TIPTON METRO, LLC M/S Matsumoto/Fernekes - To adopt the Resolution. RESOLUTION NO. 13-98 Carried by majority voice vote, in that Boardmember Penna did not take part in the discus- sion or vote on the item. Boardmember Penna Returned to the Podium: Boardmember Penna returned to the podium. 5a. Motion to approve Subordination Agreement with MP Counsel Mattas stated the Agency held the first Greenridge Associates in favor of Wells Fargo Bank, position on the loan agreement, and now holds the National Association. d~-q't~ second position as required by Wells Fargo Bank. Wells Fargo Bank, National Assoc. is the primary lender in this transaction and will not make the intended loan without agreement by the Redevelop- ment Agency that it will subordinate its security interest in the property in favor of Wells Fargo -- Bank. He recommended the Agency approve the subordination agreement. Discussion followed: Mid-Peninsula is using a different LLC for this; the purpose of the different 10/14/98 Page 3 AGENDA ACTION TAKEN ----a. DMINISTRATIVE BUSINESS ADMINISTRATIVE BUSINESS a. Motion to approve Subordination Agreement - Con- LLC is so there is no inter-mingling of exposure; tinued, who is the limited partnership; the only limited partnership is Mid-Peninsula; concern that if Mid- Peninsula fails the, City will have to bail them out and the limited partners are off the hook; they oper- ate by selling tax credits; the City does have a prop- erty interest, and can step in and take over the pro- ject, and is allocating its 20% funds for affordable housing. M/S Fernekes/Datzman - To approve the Subordina- tion Agreement with MP Greenridge Associates. Carried by unanimous voice vote. GOOD AND WELFARE GOOD AND WELFARE No one cared to speak. RECESS: Chairman Mullin declared a recess at 7:50 p.m. r'ECALL TO ORDER: Chairman Mullin recalled the meeting to order at 9:30 p.m., all Boardmembers were present. CLOSED SESSION CLOSED SESSION 6. Closed Session, for real property negotiations with The Agency entered a Closed Session at 9:31 p.m. Negotiator Bob Beyer on 160 Harbor, 166 Harbor, to discuss the item noticed. 169 Harbor, 185 Harbor and 1556 El Camino Real. Boardmember Penna left the Meeting at 9:50 p.m. Boardmember Penna left the meeting at 9:50 p.m. and did not take part in any land use discussions. RECALL TO ORDER: Chairman Muilin recalled the meeting to order at 11:01 p.m., all Boardmembers were present except Boardmember Penna, no action was taken and direc- tion was given. M/S Datzman/Matsumoto - To adjourn the meeting. Carried by unanimous voice vote. ADJOURNMENT: Time of adjournment was 11:01 p.m. 10/14/98 Page 4 AGENDA ACTION TAKEN · -~.ESPECTFULLY SUBMITTED, APPROVED. Barbara A. Battaya, Clerk d Eugene. R~evelopment Agency Redevelopment Agency City of Sou~ San Francisco City of South San Francisco The 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. 10/14/98 Page 5