BusDev Highlights 2006 0413 - Laserfiche WebLink

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• • 3. Update on Development Projects The Islander. Tom Liao briefly noted that staff continues to work aggressively with Mercy Housing California (MHC) Inc. to structure a successful financing plan for the project. The latest proposal is to structure the transaction as a 75-year lease wherein the Redevelopment Agency would retain ownership and lease the land and building to MHC. This would allow the Agency to provide a lower subsidy while allowing the Agency to retain the asset long- term. This structure will make the application for tax credits more competitive by attracting more potential investors for the tax credits. The proposed lease and other required agreements will be brought to the Agency in June. Mission Bell Apartments. As outlined at the previous meeting, staff continues to work with Allied Housing, Inc., anon-profit affordable housing developer and property manager, to assist with the necessary financing to acquire, and preserve the Mission Bell Apartments as a long-term affordable housing resource. After some obstacles in securing an acceptable agreement between the current owner and Allied, progress has been made and a necessary interim and permanent financing package has been approved by public and private lenders so that the requirements of both parties could be met to close on the property without the need for City financing at closing. Staff anticipates that an agreement will be before the City and Agency for consideration in early May. Former Downtown Albertson's Site. Hanson Hom and Sally Barros briefed the Committee on the preliminary plans submitted by Red Mountain Retail Group for the development of the strategically located 1.7 acre site. The submitted plans proposed a total of 60 units built around the existing former grocery store building. The residential units would be built over a two-level parking garage. Retail storefronts would be constructed along East 14th Street. The residential units could range from a 900 square foot one-bedroom unit to a 1,800 square foot two-bedroom unit. The Committee commented on the height and scale of the proposal, the "average" architecture, and suggested the developer look at some underground parking. Councilmember Stephens expressed concern that the smaller units may not attract the stronger income households that are needed to support retail development in the Downtown. Redevelopment of Former Scott Mechanical Site. Staff explained that the nearly 500,000 square foot former Scott Mechanical building has been acquired by Aegis Equity Partners. The new owners are in the process of securing entitlements to "reposition" the property as a business park with both warehousing and home improvement and construction materials vendors. Approximately 400,000 square feet has already been leased to Champion Products and Sitcom Furniture. The 100,000 square feet of office facing Doolittle Drive is being planned as amulti-tenant office/wholesale showroom and home improvement center. Hanson Hom noted that the developer has submitted an application for Site Plan Review to re-open eight enclosed dock doors to serve the warehouse space. 4. Public Comments None.