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HomeMy WebLinkAboutRDA Min 1987-04-06 4-6-87 Seal Beach, California April 6, 1987 The Redevelopment Agency of the City of Seal Beach met in regular adjourned session at 7:00 p.m. with Chairman Wilson calling the meeting to order with the Salute to the Flag. I ROLL CALL Present: Chairman Wilson Agency Members Clift, Grgas, Hunt, Risner Absent: None Also present: Mr. Nelson, Executive Director Mr. Stepanicich, City Attorney Mr. Joseph, Assistant City Manager Mr. Knight, Director of Development Services Mrs. Yeo, Secretary WAIVER OF FULL READING Clift moved, second by Hunt, to waive the reading in full of all resolutions and that consent to the waiver of reading shall be deemed to be given by all Agency members after reading of the title unless specific request is made at that time for the reading of such resolution. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried I LEGISLATION - AB 1013 AND SB 662 The Executive Director reported that the provisions of Section I of both AB 1013 and SB 662 would reduce the amount of supplemental payments to redevelopment agencies statewide by 20.8 million dollars which would allow the State to maintain its reserve at the disadvantage of local redevelopment agencies. He noted that the loss to Seal Beach would be approximately $20,000, however the legislation would likewise effect one hundred thirty-eight agencies statewide, and recommended opposition of the proposed legislation. Risner moved, second by Clift, to communicate this City's opposition to the adoption of AB 1013 (Baker) and SB 662 (Seymour) to the City's legislators and request that Section I of each bill be deleted. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried I SEAL BEACH TRAILER PARK - PROPOSED SALE The Director of Development Services reported that the Seal Beach Trailer Park will be applying for a loan through the State of California's Mobilehome Park Assistance Program to aid in the resident's purchase of the Park. He stated that one of the State's requirements is that a local public entity participate in the program as co-applicant, which is being requested of the City. Mr. Knight reported that the $560,000 loan is requested to pay for conversion cost, administration start up costs, and to supplement the private lender loan on the property, and that the loan will be permanent financing at seven percent simple interest, fully amortized over a period of years. He noted that the filing deadline for the current program year is April 13th and should that deadline be missed it would pose complications for the Park with regard to obtaining permanent financing from the private lender as well as the uncertainty as to 4-6-87 future funding of the program. With regard to the responsibilities associated with the City acting as co-applicant, the Director reported it is staff's conclusion that fiscal exposure would be slight, the City not obligated to supplement funds to the program nor be responsible should the project default, financial exposure occurring only if a tenant were displaced and the Park refused to pay the relocation costs, however the staff has determined and is concerned with the extensive staff time and effort that will I be required to administer the loan program to meet the State's requirements, therefore the staff would recommend that a consultant be used to supplement the review required for this project. Mr. Knight advised that the County has agreed to provide technical assistance with the cost of such services paid through the City's share of Community Development Block Grant Program if those such funds are available, or the costs could be paid by the State Department of Housing, or from reallocation of funds currently designated to the Trailer Park. Reviewing the options as set forth in his memorandum of April 2nd, the Director recommended that the City adopt the Resolution proposed and indicate its intent to transfer the co- application status to the County at a later date. Chairman Wilson noted her concern with the City's involvement in this transaction from a legal standpoint. Agency Member Hunt expressed his objection to either direct or indirect use of City funds in connection with the sale of the Trailer Park, suggesting that the buyer or seller or both should be responsible for any related costs incurred by the City. Agency Member Risner reviewed the history of the Trailer Park, the lease of which was acquired in 1976 by the present owner, relocation procedures and benefits were established, the Park redeveloped through the efforts and I assistance of the City/Redevelopment Agency and the cooperation of federal, state and county agencies, and has since been available to persons of low and moderate income. Mrs. Risner referred to recent meetings held with the Park residents, state and County representatives and City staff to discuss the responsibilities of the City as co-applicant, emphasizing the importance of the Park residents meeting April 13th deadline, and suggested that if questions remain unresolved at this meeting, that the State and County representatives be requested to attend a subsequent meeting regarding this matter. With regard to fiscal exposure resulting from relocation, she reported the representative of the State had advised that that would not be applicable if the grant application were to state that the Trailer Park Co-op would assume that responsiblity and/or that there would be no necessity for relocation. Agency Member Risner also expressed her feeling that staff responsibility would not be as time consuming as originally thought, making specific reference to the survey of the Park residents which has already been completed, and reminding of the possible use of funds previously allocated by the County to the Trailer Park for any staff related costs. Mrs. Risner pointed out that all trailers in the Park will be required to be brought into compliance with the Code which is of I benefit to the City, also that a fund will be established by the Co-op to assist Park residents for a short period of time should they be unable to make their rental payments. Mr. Scott Wildman, 99 Welcome Lane, President of Seal Beach Trailer park, Inc., stated that as part of their plan to purchase the Park, the Board has forecast placing an initial $54,000, as well as $1600 per month from the rental receipts, into a contingency fund to be used in connection with acquiring the private lender loan and other unknown 4-6-87 I expenses, which would include a subsidy of those persons unable to meet rent payments. The Development Services Director reviewed the responsibilities of the City as co-applicant, as set forth in Exhibit A of the memorandum. He specifically explained that a survey of Park residents is required at the application stage and again after approval of the loan, noting that the survey previously completed by the Park will be acceptable for application purposes. Mr. Wildman acknowledged the need for the second survey, adding that the State will require verification that the Park residents are in agreement with the purchase and that no resident will be displaced or requests to be relocated. Mr. Wildman offered the services of the Trailer Park Board to assist the City in satisfying any of the responsibilities required, such as the survey. Agency Members requested verification that the second survey is required, also that there be an assurance that the County is willing to assume the co-applicant responsibilities if requested. Discussion continued. In response to the Agency, Mr. Wildman stated that it may be feasible to use a portion of the funds set aside for contingency to offset administrative costs that may be incurred by the City in the interim. Mr. Knight again stated that the County has indicated that the use of currently allocated Community Development Block Grant funds is a viable option, upon request for same and approval by the Board of Supervisors. Agency Member Hunt requested that the staff investigate any other means that may be available to insure that this project be revenue neutral for the City during the life of the program. Risner moved, second by Hunt, to hold this matter over until Monday, April 13th, for a regular adjourned meeting. I AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried ORAL COMMUNICATIONS Chairman Wilson declared Oral Communications open. Norma Strohmeier, 209 Seal Beach Boulevard, inquired as to the number of low income persons currently residing in the Trailer Park, how low income status is determined, if income records are maintained of the Park residents, and where low income housing is located in Seal Beach. It was explained that there are one hundred twenty-five spaces in the Trailer Park, five spaces have no income restriction, sixty are low income and sixty are low/moderate income, that low income, calculated from the median income of Orange County, is approximately $20,000 to $32,000 for 1987, low/moderate income approximately $40,000, also that income records are maintained for those persons qualifying for Park residency. There being no further communications, Chairman Wilson declared Oral Communications closed. ADJOURNMENT The Executive Director reported it was not necessary to hold a Closed Session. I ADJOURNMENT Risner moved, Monday, Apr i1 second by Clift, to adjourn the meeting until 13th at 6:45 p.m. AYES: NOES: Clift, Grgas, Hunt, Risner, Wilson None Motion carried The meeting adjourned at 8:10 p.m. fJ~1 ~t.~ Chairman Seer tary I