01/08/1975 - Laserfiche WebLink

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. ~ . . " MINUTES COMMUNITY REDEVELOPMENT AGENCY January 8,1975 Commissioner Garthe stated that the only advantage, in his opinion, is the fact that the bonds will provide for general improvement but that the income will take away from the City's operation as far as taxes are concerned. The Executive Director stated that the total cost for the study is estimated at $56,000, to be advanced by the City, with $20,000 going for the consultant planning study and the balance for Building Department staff time; and that a decision could be made, at some point prior to expenditure of the total $56,000, to con- tinue or discontinue the study. Commissioner Ward requested a preliminary report that would indicate reasons for the selection of one area rather than another for improvement, and reasons for the types of improve- ments proposed. Commissioner Gr~set expressed his concern with blighted industrial areas and suggested that some attention be given to them. Com- missioner Bricken concurred that the right focus would achieve a better balance of objectives to serve two or three purposes rather than one. Commissioner Bricken moved that the Executive Director consider the feasibility'of phasing the expenditure of funds for the approved study so that a report can be generated, as appropriate, when there is enough information to determine whether or not it is advisable to proceed further. The motion was seconded by Commissioner Ward and carried unanimously (6-0). The Executive Director stated that the Ralph C. Sutro Company represents a lender who has pre- liminarilyexpressed interest in lending the Agency 100 million dollars for a 20-year period at an interest rate of under 8 percent; that there would be no annual payments and the money would be repaid in one pay- ment at the end of 20 years; that the funds could be used for any development purposes as long as they are secured either by a mortgage or tax increment; and that the money was immediately available. RALPH C. SUTRO COMPANY FUNDING PROPOSAL Mr. Goblirsch further stated that there are some risks; namely, the interest would be compounded which means that if 100 million dollars was borrowed at 9 percent (including points, fees, etc.) the Agency would be obligated to repay 514 million dollars; that the advantages to the Agency would be tremendous because it would be possible to lend developers short and long term dollars and the downtown program could be tremendously accelerated. The Executive Dir~ctor was authorized to proceed with negotiations with Ralph C. Sutro Company as a source of funding for the Agency, on the unanimously approved motion of Commissioner Griset, seconded by Commissioner Ward. The Executive Director reported that the property located on the southwest corner of Main Street and Santa Ana Boulevard (A.P. No. 8-057-03) and the property on the north side of 5th Street and East of Ross Street (A.P. No. 8-051-16) have been acquired by the Agency; and that the Redevelopment Commission will be making recommendations to the Agency regarding their disposition. PROPERTY ACQUIRED -3-