BusDev Highlights 2006 0511 - Laserfiche WebLink

Home

• • The Islander -Hanson Hom provided an update on the schedule for taking the lease and other agreements to the Agency for review and approval. Hanson indicated that the change in direction to lease the property to Mercy Housing, instead of selling the property through other agreements, is scheduled to be brought to the Agency on June 5 and 19, 2006. Hanson indicated that the change was discussed at the April committee meeting, and summarized that it has been determined that entering into along-term (75 year) lease of the building to Mercy Housing California (MHC) with the Agency retaining ownership of the property would be the most financially feasible option for the project for several reason. This structure reduces the Agency subsidy to $550,000 for building rehabilitation, allows for greater control of the property, and enables MHC to obtain the largest tax credit (an estimated $7 - $8 million) for rehab. The Committee requested information regarding the total cost of the project to the Agency, including the cash flow of the project for the next 30 years, and information on contingency funding if the project outlives the Agency. The following projecte~ Mayor Young. July 2006 Summer 2006 October 2006 March 2007 Spring 2008 i timeline was given by Hanson Hom in response to a question from Mercy to submit tax credit documents to the Federal government Mercy to prepare drawings and pull permits for improvements Mercy informed if they received tax credit allocation Construction starts Tenants move in Mayor Young also requested a "Your Redevelopment Dollars at Work" sign during construction and asked about the possibility of screening the building. In response to a question from Bill Stephens, Hanson Hom explained that the City looked into the possibility of tearing down the current building as opposed to rehabilitating it, and discovered that the building is structurally sound and a tear down would cost an additional $8 - $10 million. The proposed project, containing studio apartments for very low income individuals, is the least expensive option as it allows for the greatest tax credit allocation. Former Downtown Alberton's Site -Steve Hollister briefed the Committee that he and Luke will be meeting with Red Mountain Retail Group to discuss development on the site. Hanson Hom reported that Red Mountain withdrew their mixed use application for 60 residential units to be built over the existing former grocery store building. Kaiser Permanente Site -Steve Hollister reported that staff is in the process of developing Guiding Principles for the site that include a vision for the site and specifically address City expectations regarding revenue, necessary infrastructure improvements, and retail development. Hanson Hom, in response to a question from Bill Stephans, informed the Committee that Kaiser will be required to underground the utilities as part of the project. Mayor Young requested that the City engage Caltrans early in the process due to the reconfiguration requirements for the I880/Marina Blvd. interchange.