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0 AP"~ OVED
CITY OF TO' EMEAD
MINUTES OF THE REGULAR MEETING DATE. 7 ~~Y
ROSEMEAD REDEVELOPMENT AGENCY D~ 7~~i~~ ~[¢c c
JULY 12, 1994
The Regular Meeting of the Rosemead Redevelopment Agency was
called to order by Chairman Bruesch at 7:05 p.m. in the Conference
Room of City Hall, 8838 E. Valley Boulevard, Rosemead, California.
The Pledge to the Flag was led by Councilmember Clark.
The Invocation was delivered by Councilmember Vasquez.
ROLL CALL OF OFFICERS:
Present: Agencymembers Clark, Imperial, Vasquez, and Chairman
Bruesch
Absent: Vice-Chairman Taylor (Absence excused due to attendance at Alhambra
School Board's Public Hearing on Lighting
APPROVAL OF MINUTES: JUNE 28, 1994 - ADJOURNED MEETING Assessment Distr.)
MOTION.BY COUNCILMEMBER VASQUEZ, SECOND BY COUNCILMEMBER CLARK
that the Minutes of the Adjourned Meeting of June 28, 1994, be
approved as submitted. Vote resulted:
Yes: Clark, Vasquez, Bruesch, Imperial:
No: None Absent:
Absent: Taylor
Abstain: None
The Chairman declared said motion duly carried and so ordered.
1. RRA RESOLUTION NO. 94-15 - CLAIMS & DEMANDS
The following resolution was presented to the Agency for adoption:
RESOLUTION NO. 94-15
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
ROSEMEAD ALLOWING CERTAIN CLAIMS AND DEMANDS IN THE SUM OF
$2,774.84 AND DEMANDS NO. 3186 THROUGH NO. 3194
MOTION BY COUNCILMEMBER VASQUEZ, SECOND BY COUNCILMEMBER CLARK
that Resolution No. 94-15 be adopted with the exclusion of check #3192
for Vice-Chairman Taylor. Vote resulted:
Yes: Clark, Vasquez, Bruesch, Imperial
No: None
Absent: Taylor
Abstain: None
The Chairman declared said motion duly carried and so ordered.
2. ANGELUS PROJECT; APPROVAL OF MODIFIED TRANSACTION DOCUMENTS
Agency Deputy Attorney Peter Wallin presented the staff report.
He stated that in order to convert this to a tax credit project,
certain changes in the documents are necessary to make this more
attractive. The tax credits are allocated on a point basis and the
Agency will be able to score 105 points if all the criteria are met in
all the categories. This is possible by extending the affordable
covenants and the lease from 35 to 55 years. In order to obtain the
tax credits, RHDC needs to assign its rights and obligations under the
Operating Agreement and the Ground Lease to a limited partnership of
which RHDC is the general partner. The RHDC will control the limited
partnership. Attorney Wallin further stated that the modified
agreement will read that the monies paid by the Agency will be
advanced as a loan from the Agency to the RHDC to be repaid out of the
tax credits. The Agency can then take that money and put it back into
the low-moderate income housing fund, which should be approximately
53% of total the development costs, thus enabling the money to be used
on a second project.
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Agency Director Bruesch asked if the Agency would retain the tax
credit whether a second project was done or not. '
Attorney Wallin responded that the Agency would retain all credits
for units developed under the Angelus project.
David Kroot, Legal Counsel, stated that it is a competitive
process in obtaining the tax credits from the Federal government.
Points are allocated from the U.S. Congress to States, which then
allocates the credits within the states. It is necessary to earn a
number of points in the application process, i.e, for low income
units, special needs, facilities and how long units remain
affordable. The maximum number of points is for how long units remain
affordable, which is 55 years.
Agencymember Imperial stated that he did not feel that the lease
should be for 55 years.
Agency Attorney Wallin responded that by going with the 55 year
lease, the application will provide the Agency with $1.7 million of
Federal money to enhance future projects. The point difference from
35 years to 55 years are 5 points. A 35 year lease would only provide
95 points, which would most likely assure that the Agency will not get
an allocation.
MOTION BY AGENCYMEMBER VASQUEZ, SECOND BY AGENCYMEMBER CLARK that
the Council approve the amended Ground Lease and Assistance and
Operating Agreement and authorize the Mayor to execute each document
on behalf of the City and that the Council further accept conveyance
of the property under the Grand Deed and authorize the City Manager to
execute a certificate of acceptance; and
That the RHDC Board approve the amended Ground Lease and
Assistance and Operating Agreement and authorize the Chairperson to
execute each document on behalf of the RHDC; and
That the Agency Board approve the amended Assistance and Operating
Agreement and the Grant Deed and authorize the Chairperson to execute
each document on behalf of the Agency. Vote resulted:
Yes: Clark, Vasquez, Bruesch
No: Imperial
Absent: Taylor
Abstain: None
The Chairman declared said motion duly carried and so ordered.
Agencymember Imperial stated that he opposed the motion because of
the 55 year operation period.
3. MATTERS FROM OFFICIALS - NONE
4. ORAL COMMUNICATIONS FROM THE AUDIENCE ON REDEVELOPMENT AGENCY
MATTERS - NONE
There being no further action to be taken at this time, the
meeting was adjourned at 7:40 p.m. The next regular meeting is
scheduled for July 26, 1994 at 7:00 p.m.
Respectfully submitted:
Agency Sec tary
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