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HomeMy WebLinkAboutRDA Min 2006-05-22 Seal Beach, California May 22, 2006 The Redevelopment Agency of the City of Seal Beach met in regular session at 7:55 p.m. with Chairman Ybaben calling the meeting to order. I ROLL CALL Present: Chairman Ybaben Agency Members Antos, Larson, Levitt, Shanks Also present: Mr. Bahorski, Executive Director Mr. Barrow, Legal Counsel Mr. Vukojevic, Director of Public Works/City Engineer Chief Kirkpatrick, Police Department Mr. Whittenberg, Director of Development Services Ms. Chapanond, Administrative Assistant Mrs. Devine, Secretary APPROVAL OF AGENDA Shanks moved, second by Antos, to approve the order of the agenda as presented. AYES: NOES: Antos, Larson, Levitt, Shanks, Ybaben None Motion carried I ORAL COMMUNICATIONS Chairman Ybaben declared the Oral Communications period open and allowed the audience to speak on non-redevelopment agency issues. Mr. Charles Gilliard, Director of Mutual 2 in Leisure World and Shirley Duckworth expressed their concerns, on behalf of 14 residents present, over the Boeing construction - the noise, time of work, the dirt, and that they should have new windows (lives 2 streets south of EI Dorado who got the windows) - Agencymembers Larson and Levitt directed them to contact the City staff regarding the issues. Mr. Clark, trailer park, stated his thoughts regarding the RDA and the trailer park. There being no further comments, Chairman Ybaben declared Oral Communications to be closed. AGENCY RE-ORGANIZATION SELECTION OF CHAIRMAN Chairman Ybaben declared nominations open for the position of Chairman for 2006/2007. Shanks nominated Vice-chairman Levitt as Chairman. Vice- chairman Levitt declined the nomination. Chairman Ybaben nominated Member Antos as Chairman with no objection Member Antos was declared Chairman of the Redevelopment Agency. SELECTION OF VICE-CHAIRMAN Chairman Ybaben declared nominations open for the position of Vice-chairman for 2006/2007. Shanks nominated Vice-chairman Levitt to continue as Vice- chairman. No further nominations were made. I AYES: NOES: Antos, Larson, Levitt, Shanks, Ybaben None Motion carried Vice-chairman Levitt was declared the Vice-chairman for the Redevelopment Agency for 2006-2007. Chairman Antos resumed the meeting. Out-going Chairman Ybaben was presented with the commemorative gavel plaque for his tenure as Chairman. Page 2 - RDA - 05-22-06 AGENCY MINUTES Larson moved, second by Ybaben, to approve the RDA minutes of the joint regular meeting held on April 24, 2006. AYES: NOES: ABSTAIN: Antos, Larson, Levitt, Ybaben None Shanks Motion carried PRESENTATION - THE LOFTIN FIRM / SEAL BEACH TRAILER PARK I The Director of Development Services requested that the Loftin Firm give a brief presentation regarding the proposed change in ownership of the Seal Beach trailer park to a resident owned non-profit public benefit corporation. The Seal Beach Affordable Housing Corporation (SBAHC) submitted an application to the City for an MPROP loan to effectuate this change. The Agency would need to give staff direction on several issues, as outlined in the staff report, concerning the proposed transfer of ownership. Ms. Sue Loftin, attorney with the Loftin Firm representing the resident association (non-profit benefit corporation 501 C3 designation), gave an overview of the process for the transfer and the benefits for the residents and the benefits for the City with the transfer of ownership. The ownership structure would allow the residents to obtain conventional loans to get financing and re-financing for homes. The Agency is asked to retain the existing loan terms for the million dollars otherwise they would have to apply for more money from the bank and that would raise the rent and afford ability for the residents. Those residents not wanting to be able to participate in ownership of the trailer park would remain in the park with no changes of their rights, they just don't have any voting rights. Ms. Loftin recapped what they are requesting of the Agency: 1) agree to leave the existing loan in place; 2) agree to the new financing and subordinate the loan in the same order it currently is and subordinate the regulatory agreement to the HUD agreement; 3) would like the City representative to SBAHC to support this transfer - Mr. Hunter Johnson and I his attorney, Mr. Powers are on board with this plan; and 4) reimbursement agreement where City expenses would be reimbursed out of the closing. In answer to the question by Agencymember Ybaben regarding the current status: Ms. Loftin replied that they are at a stand still until they hear about the MPROP funding and whether the City/RDA agrees to leave the million dollars in place. Question regarding reimbursement agreement: Ms. Loftin explained that staff had made it clear that any cost to the City/RDA relating to this refinancing would need to be reimbursed out of the closing cost and (SBAHC) have agreed to this type of agreement. Ms. Loftin clarified that it is not uncommon for a City/RDA to step in to help residents to preserve affordable housing and allow time for the residents to put a program together so they can own the property to remove a level of management to get things done at the park - this is the next step to make a permanent long term affordable housing project. Agencymember Ybaben stated that the RDA needs to take a step back to rethink this proposed change. Agencymember Levitt indicated that there is some concern about some residents are going to make a profit off the City under the current structure - Ms. Loftin explained that currently two families own two homes and a husband and wife each qualified and received money from the City - currently there is no restriction as to how many homes a resident can own - under the new proposal there is a limit of one home per family and you must live there. Agencymember Larson expressed that the City/Agency does not own the trailer park - stepped in I to loan the trailer park some money that we will be getting back - the City/Agency was then sued and had to pay for the attorney fees for both sides - not voting to spend anymore money or time on the trailer park - Ms. Loftin responded that the City/Agency is a lender on the property and a member on the SBAHC board and not additional funds are being requested - just need to subordinate the current loan to the new financing. It was clarified that there would be a full program devised for rent subsidies from the park instead of the City - would take nine months for the transfer. The Executive Director answered the question regarding the million dollar loan stating that with the transfer agreement the loan will be forgiven 1/30th a year until it's no more - the City will not be getting the loan money back - the City/Agency will need to decide if this loan should be paid Page 3 - RDA . 05-22-06 I back. Chairman Antos requested that a report be prepared on the long term and short term effects of establishing a rent subsidy loan program with the new financing. The Executive Director stated that with the history of the trailer park means there will be a lot of time spent on this - staff is requesting: 1) get a reimbursement agreement; 2) direction on the residual receipts - repaid when occurs or keep as is per current agreement; and 3) policy question to the Agency is the $180,000 a year in wrap up costs for a one year period and then the trailer park will take over. Council/Agency needs to get assistances from the Legal Counsel outlining the options that the Agency might have and the effects for any consensus and to revi~w all the documents to make sure the Agency has an understanding of the terms of the agreement - this will be a privately owned non- profit, public benefit corporation so as a public policy issue the Agency needs to decide if the residual receipts loan remain in place or should it be paid back - there may be many other issues that need to be considered. The Director requested consensus from the Agency regarding the reimbursement agreement and the repayment of the residual receipt. One question was brought up regarding the reimbursement of costs if the deal falls through - the Director replied that there could be some language in the agreement that the proposed corporation put some funds up front to protect the Agency - this concem and other issues need to be addressed. Chairman Antos announced that consensus was to have staff discuss with the resident group the reimbursement agreement and bring back a draft to the Agency at the June 26th meeting and also agreed not to spend a lot of money on attomey fees. I RESOLUTION NUMBER 06-07 I AUTHORIZE PAYMENT UNDER PREVIOUS LOAN AND GRANT PROGRAM GUIDELINES The Director of Development Services reported that the Agency suspended the processing of 11 applications for rehabilitation loans and some of the applicants proceeded with their projects on their own using their own money. There are now funds available and staff is requesting that one of the applicants be reimbursed for work they had been approved to do before there were funds available. Ybaben moved, second by Shanks, to adopt Resolution Number 06- 07 entitled "A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY AUTHORIZING THE PAYMENT OF UP TO $10,000 TO PROVIDE ASSISTANCE ALLOWABLE UNDER PREVIOUSLY ADOPTED PROGRAM GUIDELINES UNDERTAKEN DURING TIME OF PROGRAM SUSPENSION." By unanimous consent, full reading of Resolution Number 06-07 was waived. AYES: NOES: Antos, Larson, Levitt, Shanks, Ybaben None Motion carried ADJOURNMENT It was the order of the Chair, with consent of the Agency, to adjourn the meeting at 9:06 p.m. Mayor Larson reconvened the City Council meeting. I t:/~&<2J Chairman