11/18/1986 - Laserfiche WebLink

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four blocks east of Harbor Boulevard on the west side of Jackson Street between First Street and Fifth Street. He then asked staff to identify the property or issues and give the staff recommendation. The City Manager asked Project Manager Patti Nunn to make the staff presentation. .The Project Manager stated that, on February 19, 1985, the Redevelopment Agency approved a Sales and Development Agreement with the Civic Center Barrio Housing Corporation for the development of Jackson Park. She pointed out that this was a park site that the City sold to the Agency for the purpose of providing low-income housing. She added that the Agency had granted five extensions to the Agreement due to the difficulty experienced by the Civic Center Barrio Housing Corporation in securing construction financing for owner-built, low-income units. She added that now the Civic Center Barrio Housing Corporation was proposing to build four four-bedroom units and three three-bedroom units for rental to qualified low-income families. She added that the rent to be charged for the units will be based on HUD Section 8 rentals, which specifies $750 per month for a three-bedroom unit and $830 per month for a four-bedroom unit. She stated that the site is being sold to Civic Center Barrio Housing Corporation for $30,000 and that approval is being sought to utilize $29,500 in Community Development Block Grant funds, earmarked for fees and permits for the La Bonita site, for the land purchase, adding that Civic Center Barrio Housing Corporation will provide the additional $500 of the purchase price. She pointed out that construction and permanent .finanCing are being funded by Mercury Savings and Loan Association and that Civic Center Barrio Housing Corporation is requesting a $50,000 Housing Infill Loan, adding that $80,000 of the A-9 lawsuit settlement money will also be utilized for the cost of construction. She advised the Agency Members that the elevations for the proposed development were on display in the Council Chambers and that the Neighborhood Improvement Manager was available to answer any questions the Agency Members might have. The Agency Secretary affirmed written communications. to Chairman Griset that there were no No one responded when the Chairman asked if there were those present who wished to speak in support of or against the proposed resolution. The Chairman then asked if there were questions from the Agency Members. In response to questions from Agency Member McGuigan, the Manager stated that the proposed structure would be built by a contractor and not with "sweat equity" and that the Mercury loan would be in first position and the Agency's loan would . second position. In response to questions from Agency Member Luxembourger, the Neighborhood Improvement Manager stated that all of the loans that are contemplated will not exceed the loan to value ratio and that, at the end of the ten-year loan period when the property is refinanced, it is expected that the value of the property will have escalated to a point that the Agency loan can be paid off. Project general Savings be in 6