10A Action 2009 0406 - Laserfiche WebLink

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CITY OF SAN LEANDRO STAFF REPORT DATE: April b, 2009 TO FROM: BY: Stephen Hollister, City Manager APPROVED AND FORWARDED TO CITY COUNCIL ~--:'sue -~'~^ Stephen L. Hollister City Manager Luke Sims, Community Development Directoi~`f Tom Liao, Housing/CDBG Manager ~' SUBJECT PROJECT/PROJECT DESCRIPTION: RESOLUTION COMMITTING $500,000 TO ASSIST DAMS STREET FAMILY RESOURCE CENTER (DSFRC) WITH ACQUISITION OF THE PROPERTY LOCATED AT 3081 TEAGARDEN STREET SUMMARY AND RECOMMENDATION At the March 2, 2009 City Council meeting, the Council did not approve staff recommendation of assisting Davis Street Family Resource Center (DSFRC) with tax allocation bond funds issued by the Redevelopment Agency towards the purchase of its facility located at 3081 Teagarden Street, San Leandro. Council approved instead a substitute motion directing staff to explore viable funding options that can provide DSFRC with $500,000 and bring back recommendations for Council to review. Staff recommends Council approve a resolution 1) committing $500,000 to assist DSFRC with the acquisition of 3081 Teagarden Street and 2) directing the City Manager to identify the appropriate City or other public funding source for future City Council consideration. BACKGROUND Davis Street Family Resource Center provides critical support services to low-income individuals and families in San Leandro and helps over 10,000 people with services such as: emergency food and clothing; employment and housing assistance; child care resources; free medical and dental services; and, information and referral. DSFRC has the opportunity to purchase the property for $2.5 million and has requested $1.5 million in assistance from the City. At its March 2, 2009 meeting, the City Council instructed staff to examine other funding sources beyond Redevelopment Agency funds. Staff has assessed that pursuing U.S. Department of Housing and Urban Development (HUD) Section 108 Loan Program funds for DSFRC would not be the most viable option because the City is in the process of preparing a $2.5 million Section 108 loan application for the new Senior Center. This would leave the City with a Section 108 loan limit of about $385,000, which is below the $500,000 for DSFRC. Also, there is no guarantee that the City will receive HUD approval of a Section 108 loan and the HUD approval process may take from 3 to 6 months or even longer.