Finance Highlights 2009 1117 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM Date: November 17, 2009 To: City Council Finance Committee From: Perry Carter, Interim Finance Director ~~- Subject: Issuance of Tax Allocation Bonds by the Redevelopment Agency for The Alameda at San Leandro Crossings Housing project. BACKGROUND/DISCUSSION Bridge Housing Corporation (BRIDGE), a nonprofit developer, is proposing to construct a 100 unit affordable family apartment project at 1333 Martinez Street called The Alameda at San Leandro Crossings (The Alameda). In addition, 200 market rate units will be constructed by a private developer, bringing Phase 1, of the project to a total of 300 units. The Alameda is part of a multi-phased residential development proposed by a private developer, Westlake Development Partners LLC (Westlake). The project will be adjacent to the San Leandro BART Station and represents the first development to implement the City's Transit Oriented Development Strategy adopted in September 2007. By partnering with an experienced nonprofit affordable housing developer like BRIDGE, Westlake will be able to satisfy nearly all of its affordable housing requirements under the Inclusionary Zoning Ordinance. BRIDGE has estimated the total development cost of The Alameda to be $38 million. and has requested financing assistance of $9.1 million in Housing Set Aside funds from the San Leandro Redevelopment Agency (RDA). The Housing Set-Aside Fund of the RDA does not have the cash to fund this requirement; therefore, staff is seeking authority to issue Tax Allocation Bonds (TABSs) to fund this obligation. In April of 2009 the City Council authorized several actions with respect to The Alameda including a loan to BRIDGE for $9.1 million in Housing Set-Aside funds. It is estimated that by January of 2010 the RDA will have advanced to BRIDGE approximately $2.2 million from available cash. This advance has been and will be used for pre-development costs. After deducting this advance from the total commitment of $9.1 million, the RDA will have a remaining obligation of approximately $6.9 million to BRIDGE that is due to by January 15, 2010. To fund this obligation, Staff is recommending that the San Leandro RDA issue Tax Allocation Bonds (TABS) secured by tax increment revenues from the Housing Set-Aside Fund.