2009-11-03 Joint CC CIC MinutesMINUTES OF THE SPECIAL JOINT CITY COUNCIL AND
COMMUNITY IMPROVEMENT COMMISSION (CIC) MEETING
TUESDAY- -NOVEMBER 3, 2009- -7:31 P.M.
Mayor/Chair Johnson convened the Joint Meeting at 10:48 p.m.
ROLL CALL - Present: Councilmembers/Commissioners deHaan,
Gilmore, Matarrese, Tam, and Mayor/Chair
Johnson – 5.
Absent: None.
MINUTES
(09-452 CC/09-48 CIC) Minutes of the Special Joint City Council,
Alameda Reuse and Redevelopment Authority, and Community
Improvement Commission Meeting held on October 20, 2009. Approved.
Vice Mayor/Commissioner deHaan moved approval of the Minutes.
Councilmember/Commissioner Matarrese seconded the motion, which
carried by unanimous voice vote – 5.
AGENDA ITEMS
(09-453 CC) Recommendation to Approve an Amended and Restated
Promissory Note in the amount of $190,000 and an Amendment to the
HOME Regulatory Agreement for 461 Haight Avenue Between the City
and ALL Housing, Inc.; and
(09-49 CIC) Recommendation to Approve a Grant Agreement in the
Amount of $80,000 and an Affordable Housing Maintenance Covenant
for 461 Haight Avenue Between the Community Improvement Commission
and ALL Housing, Inc.
The Economic Development Director gave a brief presentation.
Councilmember/Commissioner Matarrese inquired whether the cash flow
would go to a positive side so that the property would be
maintained.
The Economic Development Director responded the positive cash flow
is not extraordinary; stated there would still be a struggle but
the cash flow would provide for maintenance and needed services.
Councilmember/Commissioner Matarrese moved approval of the staff
recommendation with the condition that the property be maintained
with the benefit from the payoff as well as the grant.
Special Joint Meeting
Alameda City Council and Community Improvement Commission
November 3, 2009
Vice Mayor/Commissioner deHaan inquired whether staff has looked
into the opportunity of purchasing the property for the Housing
Authority.
The Economic Development Director responded that she is not sure
whether the Housing Authority reviewed the matter; stated the
operator is very responsible.
Vice Mayor/Commissioner deHaan stated oversight is needed to ensure
that the property does not get into trouble again; funding could be
better utilized from the Housing Authority.
Vice Mayor/Commissioner deHaan second the motion.
Under discussion, the Economic Development Director stated staff
collaborated with the Housing Authority on what would be the best
way to work on the project.
Mayor/Chair Johnson stated Resources for Community Development
manages other projects in the City and does a very good job;
concurred with Councilmember/Commissioner Matarrese’s suggestion
included in the motion.
Councilmember/Commissioner Tam commended staff for the creative
restructuring; stated the project is the only resource the City has
for the disabled.
On the call for the question, the motion carried by unanimous voice
vote – 5.
(09-454 CC) Recommendation to Accept Public Streets Within Bayport
Alameda, Approve a Lease for the Use of the Community Building and
a Reciprocal Easement Agreement Per the Joint Use Agreement Between
the Alameda Unified School District and the City, and Authorize the
Interim City Manager to Execute and Authorize Execution of
Documents for Completion of Bayport Alameda Project Obligations;
and
(09-50 CIC) Recommendation to Approve Quit Claim Deeds Conveying
the Public Streets and Bayport Park and Storm Treatment Pond
Properties from the Community Improvement Commission to the City,
Approve an Access and Maintenance Easement from the Community
Improvement Commission to the City for Segments of the Storm Drain
System, Adopt the Bayport Project Budget for Fiscal Year 2009-2010,
and Authorize Execution of Documents for Completion of Bayport
Alameda Project Obligations.
Special Joint Meeting
Alameda City Council and Community Improvement Commission
November 3, 2009
The Economic Development Director gave a brief presentation.
Vice Mayor/Commissioner deHaan inquired whether the CIC residential
profit participation revenue is over and above the base price.
The Economic Development Director responded in the affirmative;
stated the $19.3 million pays for project obligations; stated all
of the profit participation and land sale proceeds received from
the project go back into the project to retire obligations; a $7
million obligation for the developer advance still remains; profit
participation expectations were higher two years ago.
Vice Mayor/Commissioner deHaan inquired whether State level
problems and redevelopment fund take away will have any affect on
the bond.
The Economic Development Director responded in the affirmative;
stated the State’s financial condition has hurt the bond market;
stated redevelopment bonds have done much better than other types
of bonds; today’s bond market is much higher than a couple of years
ago; nobody will allow the City to bond until how the City will
make the State payment is determined; the City has the capacity to
issue a bond much larger than recommended by staff; that she
recommends not to bond to capacity because of State uncertainties.
Vice Mayor/Commissioner deHaan inquired whether staff would provide
a complete bond overview, to which the Economic Development
Director responded in the affirmative.
Councilmember/Commissioner Matarrese stated the City has the
capacity on paper; estimates were raised as the project was built;
using revenue streams to pay bonds back is subject to the State
take away; the State’s structural problems are not going to be
remedied.
The Economic Development Director stated that she has had
conversations with the Interim City Manager/Executive Director
regarding consideration of strategies for just using tax increment
generated off the project for the next year or so.
Mayor/Chair Johnson inquired what is the annual tax increment from
the project.
The Economic Development Director responded over $3 million; stated
there is $866,000 per year in existing debt service payoff of old
bonds that anchor the project.
Special Joint Meeting
Alameda City Council and Community Improvement Commission
November 3, 2009
Vice Mayor/Commissioner deHaan stated the State take away is going
to be a major concern.
The Economic development Director stated everyone is frustrated by
the situation; rules seem to change or get developed along the way
with respect to State payments; a lawsuit has been filed regarding
the legitimacy of taking money; the lawsuit would be appealed if
successful; the money will sit in a bank account or trust and not
be put to productive use in the community.
Councilmember/Commissioner Matarrese moved approval of the staff
recommendation.
Vice Mayor/Commissioner deHaan seconded the motion, which carried
by unanimous voice vote – 5.
ADJOURNMENT
There being no further business Mayor/Chair Johnson adjourned the
Joint Meeting at 11:11 p.m.
Respectfully submitted,
Lara Weisiger, City Clerk
Secretary, CIC
The agenda for this meeting was posted in accordance with the Brown
Act.
Special Joint Meeting
Alameda City Council and Community Improvement Commission
November 3, 2009