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HomeMy WebLinkAbout2010-05-12 e-packeto~~N SANF `o =~'_ A o`t - ' ~`ll.'9'G U o cgLIFORt"~~' AGENDA REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICES BUILDING COMMUNITY ROOM WEDNESDAY, MAY 12, 2010 6:30 P.M. PEOPLE OF SOUTH SAN FRANCISCO You are invited to offer your suggestions. In order that you may know our method of conducting Agency business, we proceed as follows: The regular meeting of the Redevelopment Agency is held on the second Wednesday of each month at 6:30 p.m. in the Municipal Services Building, Community Room, 33 Arroyo Drive, South San Francisco, California. Public Comment: For those wishing to address the Board on any Agenda or non-Agendized item, please complete a Speaker Card located at the entrance to the Community Room and submit it to the Clerk. Please be sure to indicate the Agenda Item # you wish to address or the topic of your public comment. California law prevents Redevelopment Agency from taking action on any item not on the Agenda (except in emergency circumstances). Your question or problem may be referred. to staff for investigation and/or action where appropriate or the matter may be placed on a future Agenda for more comprehensive action or a report. When your name is called, please come to the podium, state your name and address for the Minutes. COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER. Thank you for your cooperation. The Clerk will read successively the items of business appearing on the Agenda. As she completes reading an item, it will be ready for Board action. MARK N. ADDIEGO Chair KEVIN MULLIN Vice Chair RICHARD A. GARBARINO Boardmember RICHARD BATTAGLIA Investment Officer BARRY M. NAGEL Executive Director PEDRO GONZALEZ Boardmember KARYL MATSUMOTO Boardmember KRISTA MARTINELLI-CARSON Clerk STEVEN T. MATTAS Counsel PLEASE SILENCE CELL PHONES AND PAGERS HEARING ASSISTANCE EQUIPMENT IS AVAILABLE FOR USE BY THE HEARING-IMPAIRED AT REDEVELOPMENT AGENCY MEETINGS In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the City Clerk's Office located at City Hall. Tf, however, the document or writing is nc~t distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda. The address of City Hall is 400 Grand Avenue, South San Francisco, California 94080.. CALL TO ORDER ROLL CALL AGENDA REVIEW PUBLIC COMMENTS CONSENT CALENDAR 1. Motion to approve the minutes of April 14, 2010. 2. Motion to accept the Emergency Operations Center/Training Classroom Project as complete in accordance with the plans and specifications. ADMINISTRATIVE BUSINESS 3. Review Updated Financing Plan for Affordable Housing Project at 636 El Camino Real, Mid-Peninsula Housing Coalition, and Agency's Financial Participation. ADJOURNMENT REGULAR REDEVELOPMENT AGENCY MEETING MAY 12, 2010 AGENDA PAGE 2 ~~v~tl SANF~D *~- ._ E- - n o c'~L~FO~r`P IfiEM # 1 1~~IN ~ , UTES s ~~. REDEVELOPMENT AGENCY CITY OF SOUTH SAN FRANCISCO REGULAR MEETING MUNICIPAL SERVICES BUILDING COMMUNITY ROOM WEDNESDAY, APRIL 14, 2010 CALLED TO ORDER: ROLL CALL: AGENDA REVIEW None. PUBLIC COMMENTS None. CONSENT CALENDAR 6:31 p.m. Present: Boardmembers Garbarino, Gonzalez and Matsumoto, Vice Chairman Mullin and Chairman Addiego. Absent: None. 1. Motion to approve the minutes of March 10, 2010. 2. Motion to confirm the expense claims of April 14, 2010 in the amount of $1,190,388.29. Motion-Boardmember Matsumoto/Second-Boardmember Garbarino: to approve the Consent Calendar. Unanimously approved by voice vote. ADMINISTRATIVE BUSINESS 3. Submittal of Annual Redevelopment reports to the State Controller as required by California Health and Safety Code 33080.1. Finance Director Steele presented the report listing the properties owned by the Agency as well as related loans. Motion-Boardmember Garbarino/Second-Boardmember Gonzalez: to receive and submit the report. Unanimously approved by voice vote. ADJOURNMENT Being no further business, Chairn~an Addiego adjourned the meeting at 6: ~7 p.m. Submitted by• Approved: ~ ~~t-mil- ~' rson, Clerk Mark N. Addiego, Chairman ,it 13~~~`n r'rancisco City of South San Francisco REGULAR REDEVELOPMENT AGENCY MEETING APRIL 14, 2010 MINUTES PAGE 2 Redevelopment Agency Staff Report RDA AGENDA ITEM # 2 DATE: May 12, 201.0 TO: Redevelopment Agency Board FROM: Terry White, Director of Public Works SUBJECT: MOTION TO ACCEPT THE EMERGENCY OPERATIONS CENTER/TR.AINING CLASSROOM PROJECT AS COMPLETE IN ACCORDANCE WITH THE PLANS AND SPECIFICATIONS RECOMMENDATION It is recommended that the Redevelopment Agency Board, by motion, accept the Emergency Operations Center/Training Classroom Project (Project No.620-99999-pfl023) as complete in accordance with the plans and specifications. BACKGROUND/DISCUSSION Previously, the Emergency Operations Center (EOC) was located in the basement of the Main Library. Since its construction in 1966, there have been minimal upgrades to the EOC. As a result it has not kept pace with the evolving emergency management needs of the City, and it has very limited space in which to operate. Additionally, a small room at Fire Station 63 was once used as a classroom, however, since the construction of Fire Station 61, the primary classroom used by the Fire Department was located in the station's garage area where the fire engine's and ambulances park. Consequently, chairs, tables, and AV equipment had to be setup and broken down each time training occurred. The creation of a dual use EOC/Training Classroom at the Fire Administration/Fire Station 61 complex was proposed for inclusion in the 2008-2009 version of the Capital Improvement Program (CIP) and approved at a cost not to exceed $1 million. The project was then carried over and approved in the 2009-10 version of the CIP. The project included a one story building of approximately 2200 square feet with additional reinforcement and strengthening of the foundation, walls, and roof to accommodate a possible future second story. The project was awarded to D.L. Falk Construction, Inc. of Hayward, California on July 8, 2009 and completed on April 6, 2010. FUNDING Funding for this project was included in the City of South San Francisco's 2009-2010 Capital Improvement Program (CIP/620-99999-pfl023). On July 22, 2009, the Board amended the 2009- 2010CIP by an additional $83,931.00 to cover the cost of Add Alternative (AA1) with appropriate contingencies. Thus, a budget of $1,083,931.00 was established to cover the project cost. The actual construction cost incurred for the project was $1,040,583.85. The following page shows the actual cost incurred for the project. Staff Report Subject: MOTION TO ACCEPT THE EMERGENCY OPERATIONS CENTER/TRAINIlVG CLASSROOM PROJECT AS COMPLETE IN ACCORDANCE WITH THE PLANS AND SPECIFICATIONS Page 2 Projected Actual Construction, D.L Falk $ 714,000.00 $ 714,000.00 AA1, Foundation & Roof Trusses for 2°d Story Building $ 75,000.00 $ 75,000.00 Construction Contingency, Contract Change Orders $ 118,350.00 $ 92,485.04 Engineering Administration/Staff Time $ 78,900.00 $ 50,486.19 Funds expended to date for design and misc. costs $ 97,681.00 $ 108,612.62 Total Construction Cost $1 ,083,931.00 $1 ,040,583.85 The contract change orders included the wiring/installation and framing of AV equipment, excavation for unknown buried slab, and framing for attic storage. CONCLUSION The project was inspected by the City staff and found to be complete in accordance with the plans and specifications. The project has a one year warranty period, which takes effect upon project final completion. Staff recommends acceptance of this project as complete. Staff will then file aNotice of Completion and release the payment performance bond and retention funds at the end of the thirty- day lien period. Therefore, the EOC can be relocated from the Main Library to the new location at Fire Station 61, 490 N. Canal Street. Terry White ~,, Director of Public Works Approv d: " arty M. Nage Executive Direct rh/hl/rr/tw 1421319.1 ~o ,,.,,,, ~ p g y °~x s~ ~ R ed evel o m en t o en c o ~, Sta Re opt ff p c'~LIFOR~1~ RDA AGENDA ITEM # 3 DATE: May 12, 2010 TO: Redevelopment Agency Board FROM: Marty Van Duyn, Assistant Executive Director SUBJECT: Financial Update on Mid-Peninsula Housing Project at 636 El Camino Real RECOMMENDATION It is recommended that the Redevelopment Agency Board review the financial status of Mid-Peninsula Housing Coalition's affordable housing project at 636 El Camino and provide direction to Agency staff. BACKGROND/DISCUSSION Attached for the Board's review is a Power Point Presentation describing the financial status of Mid- PeninsulaHousing Coalition's affordable housing project. The Housing Sub-Committee reviewed the information on April 6, 2010 and requested that the Board discuss the project before it formally submits its recommendation for action. The presentation will solely focus on the financial aspects of the project and not on the design and entitlement process as the Board has previously reviewed these items. FT TNT~TNC'T The Board is not taking formal action as this time. However, proceeding with the project will result in future funding commitments of approximately $9,927,341. CONCLUSION It is recommended that the Redevelopment Agency Board review the financial status of Mid- Peninsula Housing Coalition's affordable housing project at 636 El Camino and provide direction to Agency staff. By: Marty Van Duyn Assistant Executive Director Approved: ti ~ C~ Barry M. Nagel Executive Director Attachments: Power Point Presentation San Francisco Business Times Article A .~g Financial Update • Initial Development Concept • Change in Project Scope • Change in Financial Environment • Project Deficit and Deficit Mitigation • Housing Sub-Committee Recommendation • Q &A 80 Unit Project Concept ~° ~ Financing City RDA Contribution $ 4,950,000 Market Financing $ 5,481,384 ~ Tax Credits $ 20,356,401 ~ , State Grants $ 4,786,010 k .:. General Partner Equity $ 2,036 County of San Mateo $ 1,595,591 Total Development Budget $ 37,171,422 ~:~ :Change in Project Scope • Increase in project size from 80 units to a scheme with 109 units (29 additional units/ 36%) ~.~ ~ • Result: Project development cost increased from $37,171,422 to $50,347,826 (a cost increase of $13,176,404 / 35%) ~~ 2 :'Chan a in Financial Environment g • Financial Crisis • Result: State grants programs reduced or eliminated, a loss of $3,716,010 in projected funding °~ • Result: Tax Credits reduced by $1,055,186 3 - ~ ~' ' '.~~ . Change in Project Scope and Financial Environment ~~_: ~~ ~, • Financial changes not unique to project at 636 EI Camino or to Mid-Peninsula • Changes affect all affordable housing developers • The "new normal" 4 ~ New Financing Sources secured by Mid-Peninsula • Increase market financing by $4,413,483 • Increase San Mateo County contribution by $2,392,112 • Genentech grant (via HEART) of $1,000,000 • Total new funds: $7,805,595 • Remaining deficit of as much as $10,142,005 Remaining Deficit Mitigation Alternatives Explored :, . __ -- ~ • Return ownership of land to Redevelopment Agency r • Have Mid-Peninsula make an equity investment • Have Mid-Peninsula defer a portion of its developer fee • Increase the interest rate on the Agency's loan • Consider alternatives with the project's commercial space . . 5 ~~ Deficit Mitigation Alternatives • Land ownership reverts to Redevelopment Agency (Lease land to Mid-Peninsula for 99 Years) • Defer $696,500 in developer fee • Master lease commercial space to Agency Current Proposed Budget 109 Unit Project ~ City RDA Contribution $ 9,927,341* Market Financing $ 9,894,867 ~' Tax Credits $ 19,301,215 State Grants $ 1,070,000 General Partner Equity $ 200 County of San Mateo $ 3,987,703 HEART (Genentech) $ 1,000,000 Deferred Developer Fee $ 696.500 Total Development Budget $ 45,877,826* *Excluding land cost 6 City Council Housing Sub-Committee Review • Subject to review by Agency Board, the Housing Sub-Committee recommends the Agency support the project at new funding level under the condition that: 1) Land ownership reverts to Agency 2) The agreement and financial assistance is terminated if Mid- . Peninsula Housing is unable to secure funding Q&A •Mid-Peninsula and staff are available to answer questions 7 Bridge to everywhere -San Francisco Business Times: San Francisco Business Times -February 15, 2010 Isanfranciscolstories/2010/0211.51story 1.htm I ~ll~ 1~ Friday. February 12, 2010 Bridge to everywhere Housing builder rolls; funding clouds loom San Francisco Business'T'imes - by Blanca Torres Page 1 of 2 A':embers: Log in ~ Not Registered? Register for free extra services. With more than i,ooo units under construction and 1,000 more in its pipeline, affordable housing developer Media Bridge Housing is enjoying a booming 2oio. Last fall, Bridge completed two condo developments in San Francisco, including the $6o million, i24-unit '~' i Armstrong Place Townhomes in the Bayview and the $63.5 million, iii-unit Mission Walk in Mission Bay, bringing ' , for-sale homes to neighborhoods tiith limited options for affordable homeownership. It also finished the 99-unit, $4i.4 million Ironhorse apartments in West Oakland, adding a crucial piece to a major overhaul of a former industrial area. Bridge has four projects under construction in Colma, Palo Alto and San Francisco and plans to start three more this year totaling more than 65o units. That doesn't include eight developments fully entitled and ready to go. "We're fortunate that we're going to be able to start as many projects this year as we are," said Lydia Tan, executive vice president of Bridge. The firm also appointed Cynthia Parker as president and chief executive to replace Carol Galante, who left to work for President Barack Obama's administration. Yes, Bridge is keeping busy, but like man} affordable housing developers, executives at the firm are ~NOndering how to keep up the pace or any pace at all. Bridge secured funding sources for its current active projects two to three years ago before the affordable housing industry hit hard times. Affordable developers scrape together money from various sources ranging from local redevelopment funds, state and federal grants and loans, bank mortgages and by selling tax credits that imrestors can use to offset business profits. All of those sources have been depleted in some way. "We're in for a tough time," Tan said. "We're ready to see a huge drop off in construction because of what's happened v,~th local funding." St. Joseph's Phase I, a $4o million, 84-unit senior housing project in Oakland, was almost derailed when budget deficits prompted the state to freeze billions of dollars it had committed to dozens of projects. To keep St. Joseph's moving, Bridge used funds from the federal stimulus package to replace the state's commitment. Cities are usually the first to pledge funds to an affordable housing project, so securing their support is crucial. In San Leandro, Bridge expects to break ground this spring on the Alameda, a ioo-unit apartment building. City leaders agreed to provide a $9., million loan for the $39.~ million project. More than $6 million of the loan will come from a bond. "The problem is that we've been very active on the affordable housing fund for the last five years, so a lot of our housing sources have been tapped out," said Tom Liao, San Leandro's housing serc~ices manager. "After the Bridge project, we'll be in savings mode for a number of years to be able to do more substantial projects li]:e the Alameda." Of the remaining tax-credit investors still funding projects, many have become more selective about developments and developers, said Doug Shoemaker, director of the Mayor's Office of Housing in San Francisco. If one source of money falls through, that can often turn off other sources and kill or delay a project. "Bridge has a great reputation and that makes it easier for them to secure tax credits," he said. Funders and lenders are looking for an impressive track record, said Annette Billingsley, president of Union Bank's Community .................... _........................... Development Finance di~rision based in Walnut Creek, which has a $2 billion loan portfolio of affordable developments. "We have placed a real emphasis on building long-term relationships with high-quality developers," Billingsley said. "Bridge Housing is one of these partners." Tan said Bridge and other developers ~ti~ll have to seek out new funding partners and learn ways to cut costs while still providing quality developments. http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/02/IS/storyl.html?t=printable 4/2/2010 Bridge to everywhere -San Francisco Business Times: Page 2 of 2 "It's not business as usual, it won't be business as usual," Tan said. "We have to reinvent the industry and how we fund projects. As soon as we figure this out, the better off we'll be." [email protected] ~ (415) 288-4y6o All contents of this site ©American City Business Journals Inc. All rights reserved. http://sanfrancisco.bizjournals.com/sanfrancisco/stories/2010/02/15/storyl.html?t=printable 4/2/2010