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| Redevelopment Agency Agenda Item No. 03
Meeting Date: June 11, 2002
Subject/Title: Approve Revision to a previous action taken by the Redevelopment Agency regarding Christian Church Homes’ Request for $74,000 to Expand the Community Room at Sycamore Place I Apartments.
Submitted by: Gina Rozenski, Redevelopment Analyst
Approved by: John Stevenson, Executive Director
It is recommended that the Redevelopment Agency revise its previous action of February 13, 2001, regarding Christian Church Homes’ request for $74,000 to partially fund an expansion of the community room at Sycamore Place I Apartments, to no longer require a written agreement for repayment of the funds when and if the property is sold or refinanced. Staff recommends that the request be converted to a grant of $74,000.
On February 13, 2001 the Agency approved a request by Christian Church Homes for $74,000 to help fund an expansion of the community room facility within the Sycamore Place I Apartments, 1100 Sycamore Avenue. The approved funding is to be paid from the Agency’s Housing Set Aside Funds. The meeting minutes reflect that, as a condition of funding, an agreement was to be recorded on the property with the provision that if the project was sold or refinanced, the $74,000 would be reimbursed to the Agency. However, the attached Resolution No. RA-27, which was adopted the same night as the approved $74,000, does not reflect this condition.
Staff is requesting a revision to the previous action taken by the Redevelopment Agency by approving a grant of $74,000, rather than a conditional loan. Due to the non-profit nature of Christian Church Homes, no tax increment is generated from these improvements, and the net present value of $74,000 in, say, 40 years when the project is refinanced would be minimal. Sycamore Place I is already financially encumbered by loans from HUD, County, and the Agency, and residual receipts are promised to HUD and County. The next encumbrance would be in sixth or seventh place on the title, at best.
Staff recommends the Agency approve the grant request in support of the need to expand the undersized community room by 953 square feet to enhance the opportunities and activities at the facility.
The $74,000 has already been encumbered and will be funded from Housing Set Aside funds.
Attachments: Resolution No. RA-27
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