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.
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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
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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.
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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
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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.
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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.
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Chairman