Month 1999.12 December.


Day 1999.12.08HR


HOUSING AND REDEVELOPMENT COMMISSION

MINUTES OF THE MEETING
December 8, 1999
5:45 p.m.


The Housing and Redevelopment Commission meeting was called to order at 5:45 p.m. by Chairperson Pat Gideon.
  1. Roll Call
    1. Members Present    Pat Gideon, Lee Kloppenburg, Shauna Manina, Denise Suihkonen, Steve Kappel, Pamela Ponce, W. R. Wilkinson
    3. Members Absent:    None
    5. Staff Present:    Charles Learned, Director of Housing & Redev., Terry Rogers, Housing & Redev. Mgr., Kevin Smith, Project Coordinator
    1. Others Present:    Bay Development Group Representatives:
    2. Mike Schulte
Kenda Sawhill
Jack Swertfager
  1. APPROVAL OF MINUTES

Pat Gideon pointed out that the minutes of October 20, 1999 stated that she requested changes be made to the Agenda, however she was not present at that meeting.  She requested that the minutes be changed to reflect this.

Motion:  To approve the Minutes of the Housing and Redevelopment Commission meeting  of October 20, 1999, as amended.  Approved, Manina/Gideon, unanimous.

Motion:  To approve the minutes of the Special Housing and Redevelopment Commission meeting of November 3, 1999.  Approved, Kloppenburg/Ponce, unanimous.

  1. APPROVAL OF AGENDA

Motion:  To approve the Agenda as submitted.  Approved, Kappel/Suihkonen, unanimous.
  1. CORRESPONDENCE
None.

5.    BUSINESS FROM THE FLOOR
None.

6.    PUBLIC HEARING
None.

7.    REPORTS
None.
  1. BUSINESS

a.    Redevelopment Implementation Plan July 1, 1999 through June 30, 2000.

In order to comply with the requirements adopted by the State Legislature in 1993, a Redevelopment Implementation Plan must be completed every five years.  OHR Director, Charlie Learned, explained that Vacaville’ s first plan was completed in 1994 and updated in 1997.  A new Redevelopment Implementation Plan is now required at the five-year point, a draft of which was included in the packet for Redevelopment Commission review, discussion and approval.

Mr. Learned reviewed the Plan in detail by section.  The most significant changes were noted to be in anticipated projects, especially related to the upcoming bond issuance.

The achievements and plans for affordable housing over the next 5 and 10 years, including meeting the State’ s inclusionary and replacement requirements, were presented and discussed.  Terry Rogers, OHR Manager, explained the methods of calculation used.

Motion:  To recommend that the Redevelopment Agency adopt the Redevelopment Implementation.  Suihkonen/Manina, unanimous.

b.    Office Building Development at the former Basic American Home Foods site.

Charlie Learned introduced a request to enter into an agreement to negotiate a Development and Disposition Agreement with Pacific Valley Development Company to develop an 82,000 square foot office building at the former Basic Site.

Over the past two months, proposals were sent out to seven entities that had expressed interest in the project and received one proposal back from Pacific Valley Development Company, an affiliate of Hearn Pacific Construction Company.  The main person is Fred Hearn, in conjunction with some real estate investment, property management, banking, and marketing groups.

Accordingly, the Commission was asked to recommend to the City Council that the property be taken off the market for a period of ninety days to allow Pacific Valley Development Company and the Agency a period of due diligence and to negotiate a Development and Disposition Agreement.

Motion:  To recommend that the Agency grant to Pacific Valley Development Company a 90-day sole due diligence period to negotiate a Disposition and Development Agreement for the approximately six acre promontory area of the former Basic American Foods site.  Kappel/Kloppenburg, unanimous.

c.    Trower Neighborhood Multifamily Rehabilitation Projects:  Vacaville Meadows, Hillside Senior Apartments and Rocky Hill Village.

Kevin Smith, Housing and Redevelopment Project Coordinator, provided a review of three funding requests for U.S. HUD HOME funds and Redevelopment Low Income Housing Funds to acquire and rehabilitate 83 units on Markham Avenue and Meadows Drive.  The three projects proposed by Bay Development, in conjunction with Vacaville Community Housing are:
    1. Hillside Senior Apartments, 15 units purchased on the west side of Markham Avenue and the north side of Gable Street.
    3. Rocky Hill Village at the south end of Meadows on Rocky Hill Drive directly across Meadows from the back of the Trower Neighborhood Center.
    5. The above two projects are ready to proceed, with funds allocated from 1997.
    7. The Meadows Project includes 68 units on both sides of Meadows and 15 units across Markham just north of Meadows.

VCH will also be involved in this project as a general partner but were unable to send a representative to this meeting because of a conflict with their annual meeting.

Charlie Learned emphasized that the first two projects could be funded through an existing allocation; however, there is not enough money to proceed at this time. The City has applied for and anticipates receiving additional funding through HOME and the Neighborhood Conservation Program.  If the additional HOME allocation in the amount of $1 million does not materialize, the recommendation is that we use housing fund money to fund that portion of the loan.  Because of the way this project is designed, low income tax credits are a probability, but not a certainty.  If the tax credits or HOME funds are not obtained, an alternative may need to be presented to the Commission at a later date.  Decisions on HOME fund awards will be received in February and the tax credit allocations will be announced in March.  A commitment from the Agency is necessary in order for the group to apply for tax credits.  It is anticipated that the project would then be able to proceed within the next building season.

Motion:  To recommend that the Agency/City provide written commitment letters and enter into the Loan Documents with Bay Development and VCH as co-general partners, for each of the three projects outlined in the staff memo. Kloppenburg/Manina, unanimous.
  1. COMMISSION COMMENTS
  1. ADJOURNMENT

There being no further business, the meeting was adjourned at 6:55 p.m.