2011-03-02 Joint CIC HABOC PacketHonorable Chair and ll�ernbers of the C[C March 2, 2611
Honorable Chair and llJlembers of the BoC Page 4 of 6
projects in predeveloprr�ent, staff is recommending approval of the oPA between the
C[C, Housing Authority and RCD and adoption of a resolution o the C[C comritting the
CIC to issue affordable housing bonds to fund the Islander [Dote[ project due to its
importance in providing much needed wflrkforce housing and continuing the City's
substantial investment in revitalizing downtown,
FINANCIAL I I� PACT
Approval of the oPA obligates the C[C to issue affordable housing TABS sufficient to
provide �9 million in funding for the project. Bonds will be repaid from .tax increment
received from the Business and waterfront mpravement Project .area and west Bnd
Community Irr�proven�ent Project area affordable housing funds. vllhen .bond proceeds
are received, two new funds will be established, a CIC Affiordable Housing Capital
Projects Fund and a C[C Afordab[e Housing ❑ebt service .Fund. In no event �ri[I
approval of the oPA create a financial obligation for the City or Housing Authority.
BNV[l�oN[VIENTAL. REV[EVl!
Acquisition and rehabilitation of the Islander IVlot�l far re -use as permanent affordable
housing is exempt frarr� the California Environ�mertal Quality Act �CEQA} pursuant. to
sections 16301 and 16332 of the Act. section 15301 addresses existing foci I ities aid
exennpts rn i nor alterations to existing structures, Section .16332 add resses i n -fi Il
developrner�t projects. Furthermore, the project does not trigger. any of the exceptions
in CCQA Guidelines section 153flo.2 in that the project r�i[[ not have any significant
effects due to unusual circumstances or any cumulatively significant impacts .and will
not adversely impact any designated historic resources.
F�BCO�II�ENDAT[oN
It is recornrr�ende� that the CIC and BoC approrre an owner Participation Agreement
�oPA} and authorize the Acting Executive Director) Acting Chief Executive officer to
execute the oPA and other related docu with [�esou tees for Comr�n u pity
Development, the Community Improvement Comrr�ission and the Housing Authority to
acquire and rehabilitate the property at 228 Central Avenue �lslander il�otei} for use as
62 units of affordable workforce housing.
It is recornrnended that the C[C adopt a Resolut`[on Authorizing the issuance of Tax
Al[ocatian Housing Bonds to Provide Financial Assistance to the Housing Authority of
the City of A[arneda and as otherwise F�equ i red far the Acquisition and Rehabi I itatian of
a I�enta[ Housing Facility Commonly Known as 2428 Central Avenue to be Occupied by
Very Low- Income Households.
Honorable chair and �ernbers of the cic
Honorabie chair and l�ernbers of the BBC
l�espect�u 11}� submitted,
.x
.r ,�Y
chael T. Puce
E�ecutiue Director
By:
eb ie Potter
Housing Development and Programs Manager
approved as to funds and account,
s�v
Fred Marsh
Controller
March 2, �4
Pege�of
F�hibit:
Purchase and Sale Term Sheet
Exhibit I
Proposed Term Sheet for Purchase and Sale A
for the Islander Motel Propert at 2428 Central Avenue between
Stahl Wooldrid Construction Compan and
the Communit Improvernent Commission of the Cit of Alameda (CIC)
The followin business terms are proposed for a purchase and sale a
for the Islander Motel propert at 2428 Central Avenue:
I
The CIC/Housin Authorit HA would ac and reno-vate the propert
for affordable workforce housin
Ei million dollar ($8 million) pu'rchase price.
0 A letter/clause in the purchase and sale a statin that the CIC is
purchasin the propert in lieu of condemnation.
A 12-1month purchase a with the abilit to extend for six months
solel due to financin
The ClC/HA will make a $10,000 deposit on si the purchase and sale
a The deposit is full refundable if the CIC does .not elect to
proceed with the purchase at the end of 90 da If the CIC proceeds with
the ac the deposit will be applied to the purchase price.
The CI /HA will have a 90-da due dili period. At the and of 90
da if the CIC/HA elects to proceed, an additional $40,000.deposit will
be re These funds will be applied towards the purchase price.
At the end of 12 months, if the CIC/HA has not closed on the.ac of
the propert and re an additional six months to secure financin for
the project, an additional deposit of $250,000 will be re ir The
additional deposit will be applied to the purchase price, 'If the ClC/HA
does not complete the purchase of the propert at the end of 18 months,
the total $300,000 deposit is forfeited, If the CI /HA elects not to proceed
with the ac at the end of 12 months, the $50,000 deposit is
forfeited.