8F Consent 2009 0302 - Laserfiche WebLink

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Davis Street Family Resource Center 2 February 23, 2009 agencies since FY 1995-96, and the attached Exhibit C contains City of San Leandro Community Assistance Grant Program Allocations to all agencies since FY 2000-01. A one-time contribution of $500,000 to DSFRC for the purchase of their Teagarden property can be accommodated from the $25 million in Tax Allocation Bonds received in 2008 due to cost savings projected to be realized on the construction of the Senior Community Center. The availability of these funds is contingent on the City securing the CDBG Section 108 loan for the Senior Community Center which would free up redevelopment funds currently committed for that purpose. Unfortunately, given the current status of the Redevelopment Agency and CDBG commitments, along with the City's current economic crisis, additional funding is not available at this time to provide a larger contribution. The $500,000 contribution would be available to assist DSFRC in the purchase of the property and may not be used for any other purpose. Funding would be available at the time of the transaction. The Redevelopment Agency would place a $500,000 lien, in the form of a Deed of Trust, on the property and, in the event that the property is sold, $500,000 would be returned to the Agency as DSFRC would no longer be providing benefits to the community at this location. Staff recommends that DSFRC meet with the current property owner to renegotiate the purchase price, as the property has likely decreased in value given the economy. The $2.5 million asking price is likely higher than current market value. In response to the Finance Committee's request to confirm Alameda County's financial commitment to assisting DSFRC in purchasing the Teagarden property, staff not been able to confirm the County's participation. However, Supervisor Lai-Bitker's office has expressed their interest in providing assistance. If directed by the City Council, staff will prepare the necessary documents to be brought to the City of San Leandro Redevelopment Agency to enter into an agreement with DSFRC to provide a $500,000 contribution for the purchase of 3081 Teagarden Street. Current City Council Policy - NA Previous City Council Action(s) - NA City Council Committee Review and Action January 20, 2009 -The Finance Committee commitment of $500,000 of CDBG funds t located at 3081 Teagarden Street. recommended taking to Council for approval the o DSFRC towards the purchase of the property Applicable General Plan Policy - NA Permits and/or Variances Granted - NA Environmental Review - NA Code Compliance Review - NA Board/Commission Findings - NA