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1987-09-04 Special CC MinutesSPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF ALAMEDA HELD FRIDAY - - - - SEPTEMBER 4, 1987. The meeting convened at 7:30 p.m. with President Corica presiding. ROLL CALL - Present: Councilmembers Camicia, Monsef, Thomas, and President Corica - 4. Absent: Councilmember Haugner - 1. President Corica read a telegram from Councilmember Haugner stating she was unable to attend because notice arrived at her home when she had already arrived at her travel destination. He then explained the procedural use of speaker slips. 87 -649 Listening to concerns of Buena Vista Apartments Residents. President Corica explained the background of matter, noting that Clayton Guyton requested the emergency meeting because of the immediate concerns of the Buena Vista residents; stated he has contacted the Gersten Company in Los Angeles whose representatives will be attending a meeting on Tuesday with the Mayor, City Manager, and City Attorney to consider the concerns and hopefully find a solution; and further, he has talked to HUD representative in Washington, D.C. Following a brief review by Councilmembers of communication with the Gerstsen Company, the following persons addressed Council: Clayton Guyton, 457 Buena Vista Avenue, #315, stated people in 615 apartments are in jeopardy of being put on the street, and they want a commitment from the Council tonight, adding that 78% of residents are poor by HUD standards. Michael Rawson, Legal Aid Society, representing some of tenants, questioned delay in City action; stated part of Draft Housing Element noted conversion was imminent, that letter of August 13 from the State provided City with technical assistance regarding options for Buena Vista, staff were aware; City has obligation under State Housing Element law to provide for housing needs of all economic segments of community; tenants should be included in negotiations, and a representative should be present in the Tuesday meeting with the Gersten representative. President Corica stated that would be done; that City representatives would meet first with Gersten and then Clayton Guyton would be meeting with them. Mr. Rawson offered City the assistance of the Legal Aid Society; and suggested alternatives: that Council negotiate agreement with owners to keep similar rent limitations that they have under HUD regulations, possibly float tax exempt bonds to help keep 259 rents low, possibly float bond money to buy project, provide subsidy to assist Gersten Company and tenants to maintain the buildings, provide rent subsidy, pass ordinance to require comparable replacement housing, pass ordinance to require relocation assistance for tenants moved due to the conversion, pass ordinance to limit the rents at the complex. Mr. Rawson stated the Council could personally commit to assist the residents in specific ways. President Corica noted that he had told Clayton Guyton that Council would be listening to the residents, and did not know how Council could possibly each commit to matters without violating the Brown Act, that Council has already stated and commits to do all they possibly can and explore all the possibilities. Clayton Guyton asked when Council can do something. President Corica replied he had informed Mr. Guyton that he called Gersten Company, got immediate action and would be meeting with Gersten, has had positive response, has called Washington, D.C., that he will talk to Guyton immediately after the meeting on Tuesday, and that Council is trying to bring pressure on behalf of the people of Buena Vista. Rose Nicholas, Buena Vista Apartments, stated she is on Social Security and if the rent doubles, it will be more than she currently receives. Jean Jacobs, Buena Vista Apartments, stated that there are many low income persons and handicapped people that cannot afford a raise in rent, that Council asks for help at the polls and now the people are asking for help. Deborah Loving, Buena Vista Apartments, stated she graduated from high school last year, has a job, but Buena Vista apartments are the only way she can manage, that she can hardly pay rent now, and they all need help. Fred Lacey, Buena Vista Apartments, stated he and his wife get a joint check of $616 per month, can hardly meet bills now, and requested Council do the best possible for them. Buck Baggett, Executive Director, Northern California Association for Non-profit Housing, stated they are working to help their members build, preserve and manage low-income housing, addressing matter nationally and state-wide, stated Council should protect the people, the landlord has already made a profit, and should be asked to open its books, Council can do something; the people should fight to keep the rents from increasing and ideally, the ownership should be switched to non-profit housing, and their organization can help. Rebecca Meldy, Buena Vista Apartments, stated a lot of places in Alameda will not rent to children, company has made a good profit; profit should not be a priority over the peoples' need, 260 and that a raise of rent times the amount of apartments would bring a great profit. Yvonne Keel, Buena Vista Apartments, stated she cannot afford a raise of rents, but will not leave Alameda. Modessa Henderson, Buena Vista Apartments, stated Alameda is a good place to raise her son, most Buena Vista children go to Longfellow School and if all leave, the school would close, they provide business on Webster Street, and requested Council act quickly. John Doherty, Weber Street, noted he has stated for years that the units should not be made low income apartments if no plan was made to retain that status to be fair to the people; stated the problem should have been handled five or six years ago, and suggested the first step might be to approach area's representatives to the United States Senate and Congress; that this type of problem will be happening all over the country and Alameda should be first in finding a solution. John Mitcheom, 759 Central Avenue, stated the State is not looking favorably on the City's housing element because there are problems, requested Council leave zoning as is, think about how to loosen it and control the growth; not let it be unrestricted but remember Measure A can be good for some things but there are people who need some help. Joanne Francessini, Buena Vista Apartments, stated she cannot find another apartment that she can afford; and wonders what is going to happen to them because they will have no place to go. Charles Francessini, Buena Vista Apartments, stated there is no place for tenants to go, the shortest waiting list is one year for military housing in the Bay Area, he has put out a number of fires in the few years he has lived at Buena Vista, the elevators do not work, elderly and handicapped and his asthmatic son have to go up and down stairs; the place is hazardous and needs to be looked at. Versell Henderson, Buena Vista Apartments, stated a lot of things are unsafe but some are safe, he is a security person at Buena Vista, has a lot of pressure with six children; is praying for God's help and is optomistic. Deborah Scott, Buena Vista Apartments, stated she works full and part -time to make ends meet and has the problems that others have who spoke. Cecilia Glessman, Buena Vista Apartments, stated he has not seen any EIR on this matter, and asked where people will be placed. Lisa Schleniger, Buena Vista Apartments, stated she is the oldest of seven children, appreciates Alameda and its school system and teachers who encouraged and helped her to now attend college, wants to be a teacher but is worried about a place to go if the rents should be raised as the family barely has enough income now Fred Scullin, 1120 Chestnut Street, read memo dated 5/29/86 from Community Development Director to Assistant City Manager regarding the Buena Vista Apartments, which stated that improvements needed to be made and that the Gersten Company was studying the feasibility of prepaying the HUD mortgage and converting the project to market rate housing. The Assistant City Manager commented that in the last two weeks, issues have evolved quickly; that the City tried to help write some letters to HUD and get their involvement and as that evolved from rent increases to, very recently, a decision to prepay the mortgage, at that point was there a breakdown in the staff communication, but former Council had information. Councilmember Camicia stated it was not staff's fault but past Council's fault as they knew about it a year ago and nothing happened. Mr. Scullin raised the question of why Gersten wants to remove tenants, and he believes they want people who will pay more, and believes they think homeporting will provide such people. Councilmember Thomas stated that 110 households will come to Alameda as a direct result of homeporting but the rest will be going to San Francisco to Hunter's Point and Gersten would not need to evict 615 households to make room for 110. Janet Howley, representing Northern California Association of Non - Profit Housing, also housing developer for EDEN Housing, a non - profit housing organization in Hayward, stated that in the Bay Area, there are 18,820 units eligible for conversion, that affect 47,000 people; on the national level there are people attempting to get a moratorium on conversions, and a resolution is being passed around here to be signed which will be sent to Washington supporting the moratorium while Congress and local governments have an opportunity to work something out so that low- income people will not be displaced; Alameda is one of the first conversions, so it is critical; an option to think about is a non - profit organization and there are any set up to do it; rents can then be kept affordable; Councilmember Thomas requested a copy of the resolution referred to by Mrs. Howley. Jan Baldwin, 453 Buena Vista, requested Council find amount of Gersten profit; that Mayor Wilson of Oakland states they have a diversified City but she believes Buena Vista is also diversified; that perhaps Council can work with Buena Vista to find solution, outdo Oakland, and show that Alameda wants to be a small town, proud, yet respectful to every citizen in the City. Ruby Walker Embry, Buena Vista Apartments, stated her son is a Longfellow representative working with Police in drug program; 262 the children use computers in schools; wants her children in Alameda schools as they are much better than Oakland schools, wants her children to have opportunities in Alameda; and added Council as a team can come to a solution for them. Larry Patton, 1020 San Antonio Avenue, suggested Council go to government and get Section 8 program; and should go to Congressman Fortney Stark, Senators Cranston and Wilson; and added Elihu Harris had told him that what Gersten is doing is legal. Jerri Allie, 475 Buena Vista Avenue, stated she does not understand how a loan can be paid off without notice to HUD, as HUD is their representative. President Corica replied that as soon as they are paid off the program is no longer operative. The Assistant City Manager added that it was included in the original agreement that they could pay off if they wished to. Ms. Allie noted that safety problems are difficult with a project like Buena Vista, and if they are permitted to stay there, the City should review safety problems. Delores Adams, Buena Vista Apartments, stated she believes people who have property are going to raise rents because of military coming in, and Council should not permit it. Mr. Rawson stated he would like to sum up; that it has been requested Council make some kind of commitment tonight and there are five things they would like the City to commit to: an ordinance on the next agenda, include a tenant from Buena Vista and that tenant's designated representative on Tuesday in the meeting with the Gersten representatives, determine what the need for conversion is and if they say they cannot afford to run the place at the current rent they should be made to prove that, ask them to not prepay the mortgage until discussions are completed to allow time to reach agreement, and, let tenants have copies of documents that have been discussed and any future written documents between the City and Gersten. President Corica stated he has arranged for the meeting and for Clayton Guyton to meet with them; and inquired what is suggested if Gersten refuses, to which Mr. Rawson stated the Buena Vista representative could meet with the Mayor directly after the meeting. President Corica stated that was exactly what he had already told Mr. Guyton would happen. Mr. Rawson asked for some commitment on the disbursement of documents. The City Attorney stated the Assistant City Manager can do that. Mr. Rawson asked for a moratorium on prepayment, to which President Corica stated he would be discussing that matter on Tuesday, has already stated that, has also asked them if they would accept the Section 8 program if it is possible, and if they would refrain from any rent increase for the very low income persons, and if there is a rent increase to perhaps phase it out over a 5 year period. Councilmember Camicia requested a brief overview from the City Attorney or staff regarding the City's jurisdiction in this type of matter. The City Attorney presented an overview of the problems and possibilities. Mr. Guyton stated they were being left with a little but not much and if the Gersten Company doesn't help out on Tuesday, they [Buena Vista residents] can try to get rent control for the whole City of Alameda; and the 615 families can stop paying rent and it will take some time before they can be evicted. President Corica thanked the citizens for coming and adjourned the meeting at 9:45 p.m. Respectfully submitted, Patricia Calbreath Deputy City Clerk The agenda for this Special Meeting was posted 24 hours in advance in accordance with the Brown Act.