MEETING DATE:
January 27, 2015
SUBJECT:
Title
RESOLUTION NO. 2015-8027 - REALLOCATION OF SELECT FUNDS RELATED TO THE PROMENADE AT CREEKSIDE AFFORDABLE HOUSING DEVELOPMENT
Body
Recommendation
Recommendation
ADOPT a Resolution reallocating the unused $250,000 originally authorized to facilitate orderly rescission and redirecting the money to the Promenade at Creekside project.
Body
Board or Commission Action
RDA Board approval of Exclusive Negotiating Agreement and predevelopment loan on June 8, 2010
RDA Board approval of $28,200,000 loan for project on May 10, 2011
City Council as SA & SHA approval of Rescission Agreement on September 24, 2013
City Council approval of $250,000 as contingency to resolve property tax issue on September 24, 2013
City Council as SA & SHA approval of ENA and predevelopment loan on September 24, 2013
City Council as SA & SHA approval of $17,023,000 loan for project on Jan 28, 2014
Relevant Council Strategic Theme
Planning for the Future
Relevant Department Goal
Facilitate Affordable Housing Production
Introduction
The original iteration of the project, formerly known as "The Shoppes and Residences at Creekside", was stuck in predevelopment limbo due to the complications, uncertainty and evolving regulatory guidelines caused by the State government's dissolution of the Redevelopment Agency (RDA) effective February 1, 2012.
The developer applied for and successfully secured the highly competitive 9% low income housing tax credits from the California Tax Credit Allocation Committee (TCAC) in the July 2011 application round. Unfortunately, the State of California Department of Finance (DOF) took a negative view of the project and sufficiently inhibited the project's ability to move forward to the extent that the developer was reluctantly forced, after exhausting all legal avenues, to return the tax credits in March 2012. The project remained frozen until August 2013 awaiting permission...
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