PREPARED BY: JENNIFER LUONG DATE OF MEETING: 11/05/18
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO AS HOUSING SUCCESSOR APPROVING AND AUTHORIZING THE DEFERRAL OF ANNUAL PAYMENTS DUE TO THE CITY FROM GIANT DEVELOPMENT, L.P., ATTRIBUTABLE TO LOANS MADE FOR THE GIANT ROAD APARTMENTS IN ORDER TO ALLOW REPAIRS CAUSED BY WATER INTRUSION
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
BODY
COMPLIANCE STATEMENTS
Fiscal Resiliency Policies: Affordable higher quality & market rate rental housing projects are adopted policy items under the FY 2018-21 Council Priority Workplan, effective November 1, 2017.
CEQA Compliance Statement
This is a financing action and not a project requiring environmental review pursuant to the California Environmental Quality Act (CEQA).
BACKGROUND
On September 28, 2004, the Redevelopment Agency of the City of San Pablo (the "RDA") authorized an interest-free $500,000 loan for the Giant Road Apartments, an 86-unit affordable rental dwelling project (the "Project"). An additional interest-free $1,200,000 loan was authorized by the RDA on August 16, 2005, for a total Project loan of $1,700,000. Funding for the Project also included loans from the State Department of Housing and Community Development ("HCD") and the County of Contra Costa (the "County"). The Borrower is Giant Development, L.P., a California limited partnership. The general partner of Giant Development, L.P., is a California limited liability company owned and controlled by East Bay Asian Local Development Corporation ("EBALDC").
On February 1, 2012, the RDA was dissolved. The City of San Pablo, as the housing successor of the RDA, is now the entity entitled to repayment of the Project loan.
By letter dated July 11, 2018, a copy of which is attached to this staff report, EBALDC described that significant damage caused by water intrusion occurred at the Project. As described in its letter, to complete the repairs, EBA...
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