BusHsgDev Highlights 2009 0204 - Laserfiche WebLink

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CITY OF SAN LEANDRO CITY COUNCIL BUSINESS AND HOUSING DEVELOPMENT COMMITTEE February 4, 2009 4:00 p.m. - 5:30 p.m. San Leandro City Hall 835 East 14th Street San Leandro, California Sister Cities Gallery HIGHLIGHTS Committee Members: Councilmember Reed and Councilmember Souza City staff present: City Manager Hollister, Community Development Director Sims, Business Development Manager Battenberg, Housing Manager Liao, and Project Specialist Ricard Public present: Tom Earley (BRIDGE Housing), Karen Holzmeister (Daily Review), Lydia Tan (BRIDGE Housing), Craig Semmelmeyer (Main Street Property Services Inc.) The meeting was called to order at 4:00 p.m. 1. Discussion of Proposed Owner Participation and Loan Agreement with BRIDGE Housing for The Alameda Affordable Housing Project (San Leandro Crossings West) City Manager Hollister introduced the item and Housing Manager Liao provided an update on the City's progress on an Owner Participation and Loan Agreement with BRIDGE Housing. Liao explained that the City is continuing to work closely with BRIDGE Housing on the details of the agreement and project financing. Liao noted that BRIDGE Housing and the Agency have discovered a variety of cost saving mechanisms that have reduced the Agency's contribution to the project from $9.3 million to $9.1 million. Liao explained that Tax Allocation Bonds (TABs) appear to be the most attractive financing method for the loan. TABs allow the Agency to sell bonds for the $9.1 million and dedicate future Housing Set-Aside revenue to repay the bonds. The Committee discussed how the project was affected by the State budget crisis and the name change from San Leandro Crossings to The Alameda. Recommendation: The Committee recommends the Agency proceed with the Owner Participation and Loan Agreement for $9.1 million in Redevelopment Housing Set-Aside funding.