Document elcerrito_gov_doc_a4aa50a993

Date: To: From: Subject: AGENDA BILL Agenda Item No. 7(A)(1) April17, 2012 El Cerrito City Council Hilde Myall, Housing Program Manager Ohlone Gardens Affordable Housing Project, 6431 and 6495 Portola Drive ACTION REQUESTED That the City Council, acting as housing successor, adopt a resolution: 1. Authorizing the execution of a· Loan Amendment to the ext sting Loan Agreement with the Ohlone Gardens L.P. for the Ohlone Gardens Affordable Housing Project, 6431 and 6495 Portola Drive; aq.d 2. · Approving the proposed~ replac~~ent plan for special needs units and supportive servtces. BACKGROUND TheEl Cerrito Redevelopment Agency Board approved Resolution No. 579 on March 2, 2009 and Resolution No. 586 on May 18, 2009 authorizing a permanent loan and associated documents with the Ohlone Gardens L.P. (the "Developer") for the Ohlone Gardens project, a 57-unit mixed-use affordable rental development for families and persons with special needs at 6495 and 6431 Portola Drive. The loan documents, including a loan agreement and a regulatory agreement, were executed on June 24, 2009 between the Agency and Ohlone Gardens L.P., a limited partnership with Resources for Community Development (RCD) and the Hatlen Center for the Blind (Hatlen) as co- general partners. The Developer drew on loan proceeds in 2009 to acquire the subject site and for predevelopment expenses related to the project's application for entitlements. In June 2009, Ohlone Gardens L.P. received a financing commitment from the State Department of Housing and Community Development (HCD) for $2.86 million in Proposition 1 C Infill Infrastructure Grant funds. On August 19, 2009, the Developer received planning and environmental review approvals for the project pursuant to Planning Commission Resolution No. PC09-13. Since that time, Hatlen has been conducting a capital campaign to raise its $2.8 million share of capital costs for the Ohlone Gardens project. On January 17, 2012, as provided for under AB1x26, the Dissolution Act, the City Council adopted Resolution No. 2012-04 electing to retain the housing functions of the former Redevelopment Agency. On February 1, 2012, pursuant to the Dissolution Act, the El Cerrito Redevelopment Agency was dissolved. As an operation of law, as of February 1, 2012, all housing assets and obligations, including the Ohlone Gardens Loan Agreement, transferred from the Agency to the City as housing successor. ---PAGE BREAK--- Agenda Item No. 7(A)(1) On March 28, 2012, RCD and Hatlen revised the Ohlone Gardens L.P. partnership agreement to reflect Hatlen'.s withdrawal from the project and formally releasing Haden from any obligations under the partnership and the Ohlone Gardens project. In addition, the memorandum of agreement between RCD and Haden (MOU) was terminated. The decision for Haden to withdraw from the project was reached through mutual discussion and agreement between RCD and Haden. Per the terms of the MOU, Haden had until January 31, 2011 to raise the necessary capital funds. Due to various factors, including the downturn in the economy, Haden did not meet the initial deadline. RCD and Haden mutually agreed to extend that timeline in the interests of trying to retain Haden's participation in the project. As of January 2012, Haden had raised less than 50% of its capital campaign target. RCD and Haden explored how the project might proceed with only a portion of the Haden funds, but could not find a satisfactory solution. Had~h de'cided it was in the best interests of their organization and the project to withdraw from the Ohlone Gardens project rather than continue to delay the project and strain Haden's limited resources with the capital campaign. ANALYSIS Staff is bringing this item to the City Council for consideration as the loan agreement must be amended to reflect Haden's withdrawal from the project, as well as approve the special needs unit plan and associated supportive services plan proposed by RCD to replace Haden's special needs program. Per the terms of the loan documents and Planning Commission approvals, there must be at least 10 special needs units in the project and the developer must provide adequate and appropriate supportive services for the residents of those special needs units. In the event of Haden's withdrawal from the project, the City has sole discretion in approving the replacement special needs unit program. Summary of the Loan Amendment The loan amendment deletes references to the Haden Center for the Blind as co-sponsor of the project, eliminates performance benchmarks related to the Haden capital campaign, and provides an updated predevelopment budget and development schedule, including revision of the deadlines for commencement and completion of construction to extend them to the timeframes allowed under the HCD Infill Infrastructure Grant Program guidelines. The predevelopment budget proposes a City building permit fee deferral. Such a proposal would require City Council consideration and action. Please note that City Council approval of the loan amendment does not imply approval of the proposed building permit fee deferral. The draft of the amended Loan Agreement as mutually agreed to by Ohlone Gardens L.P. and City staff is included with this report as Attachment 2 - Exhibit A. Proposed Special Needs Program RCD is proposing that the 10 special needs units at Ohlone Gardens once reserved for the Haden Center for the Blind's students will be occupied by five households with Page 2 ---PAGE BREAK--- Agenda Item No. 7{A)(1) persons living with HIV I AIDS and :five households with mental health consumers. The project is configured as a mil( of one-, two-, and three-bedroom apartments, with special needs households occupying 1 ~bedroom units. Special need units wjll be restricted to households with incomes below 30% of Area Median Income. Maximum rents will be set at levels affordable to those earning 30% of Area Median Income, but as per regulation, residents will only pay 30 percent of their actual income in rent. The proposed replacement plan for the special needs units and associated supportive services is included as Attachments 3 and 4 to this report. Special needs units will be supported by the Housing Opportunities for Persons With AIDS (HOPW A) program and the Mental Health Services Act (MHSA) housing program. HOPWA is a federal program that allocates funding to states and local governments for services and housing that serve low-income households living with HIV I AIDS. The MHSA Program is jointly administered by the~ california Department of Mental Health and the California Housing Finance Agency i~ conjunction with counties. It provides development and operating funding for supportive housing that serves households with a serious mental illness and who are at risk of homelessness. RCD has submitted, or will be submitting in April, applications through Contra Costa County for both funding sources. Contra Costa County posted a section of RCD' s application online on March 12th for a required public review period of 30 days, after which RCD is eligible to submit its application to the State. The MHSA application is for capital and services funding. The HOPW A program provides capital funding only, although HOPWA-unit residents are eligible for services offered by the Contra Costa AIDS Program. The Resident Services Program (RSP) planned for Ohlone Gardens has two components. For the entire tenant population, including special needs units, RCD will provide a program that focuses on short-term assessment and case management with residents to provide information and referrals to outside agencies, as required. The part-time on-site Services Manager at Ohlone Gardens can link residents. to a comprehensive, integrated network of local resources with the goal of assisting residents in maintaining their permanent affordable housing opportunity and creating healthy and stable lives. Using the onsite community room and services office, the Services Manager will also organize community events and programming. Programs that are planned for Ohlone Gardens include financial literacy training and computer technology access and training. Other programming that RCD typically provides at developments similar to Ohlone Gardens include afterschool activities, English as a Second Language (ESL) classes, summer lunch programs, workforce skills development, and building involvement with local civic organizations. Additionally, RCD and its partner organizations will provide services specifically for the 10 special needs households. HOPW A-unit residents will have access to medical case management and supportive services provided by the Contra Costa AIDS Program, as well as access to housing advocacy and referral providers, such as Contra Costa Interfaith Housing and the Greater Richmond Interfaith Partnership. MHSA-unit residents will work with the Contra Costa Mental Health Administration (CCMHA) as Page 3 ---PAGE BREAK--- Agenda Item No. 7(A)(1) their primary service provider. CCM;HA contracts with several nearby service providers, and services will include ca~e management, mental health services, linkages to physical health services, employment/vocational services, referrals to substance abuse treatment, assistance in obtaining benefits, budget and financial training, daily living skills assistance, and crisis intervention. If MHSA and/or HOPWA funds are not awarded and the special needs units and/or supportive services plan changes materially, staff will return to Council with alternative proposals. Ground Floor Uses In addition to property management and resident services space on the ground floor of the development, the entitled project includes approximate)y 4,650 square feet of commercial space that was intended as the offices and instructional space for the Hatlen Center for the Blind. Per the terms of the project's Planning Commission approvals and the existing Loan Agreement, the commercial space will be developed and used consistent with its commercial zoning use. RCD is working on identifying potential tenants for the space. In compliance with Redevelopment Law, none of the Agency's nor City's Low and Moderate Income, Housing Fund monies will be used for the commercial improvements. Feasibility and Schedule With Hatlen' s withdrawal, the project is now eligible for a greater range of funding programs, including federal HUD housing funds such as HOPW A. RCD is actively pursuing such resources, specifically HOPW A and MHSA funds, and is aiming for all financing to be committed in time for a competitive application to the State for a Low Income Housing Tax Credit award in July 2012. If successful in obtaining an award of tax credits this summer, construction on the Ohlone Gardens project would be anticipated to start in the Fallof2012. FISCAL CONSIDERATIONS The loan amendment does not contain any revisions that would change the fiscal impact of the loan to the former Agency or the City as housing successor. The intent of this loan amendment is to reflect Hatlen's withdrawal from the project and to allow RCD, through the Ohlone Gardens L.P., to move forward with the project. The loan amendment does not alter the loan amount or cost recovery risk to the City. As mentioned above, the withdrawal of Haden may improve the project's ability to compete for other sources of funds and, hence, may increase the financial viability of the project. The approval of the replacement plan for the special needs units and supportive services has no direct fiscal impact on the City. Other than attorney fees to prepare the required amended loan documents, there is no cost for this transaction. Page4 ---PAGE BREAK--- Agenda Item No. 7(A)(1) LEGAL CONSIDERATIONS The Counsel to the City as hou~~ng successor has reviewed this report and the attachments. · · Reviewed by: Assistant City Manager Attachments: 1. A Resolution of The City of El Cerrito As }lousing Successor to The El Cerrito Redevelopment Agency (the "City") Making Findings and Approving the Second Amendment to the Amended and Restated Predevelopment, Acquisition and Construction Loan Agreement Between the City and Ohlone Gardens, L.P. and Approving the Replacement Plan for the Special Needs Units and Supportive Servic~s Plan 2. Exhibit A to Resolution 201'2-XX- Proposed Form of2 11ct Amendment to the Loan Agreement 3. Exhibit B to Resolution 2012-XX - Resources for Community Development's Proposal for the Special Needs Units 4. Exhibit C to Resolution2012-XX- Supportive Services Plan Page 5 ---PAGE BREAK--- RESOLUTION NO. 2012-XX Agenda Item No. 7(A)(l) Attachment 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CERRITO AS HOUSING SUCCESSOR TO THE EL CERRITO REDEVELOPMENT AGENCY (THE "CITY") MAKING FINDINGS AND APPROVING THE SECOND AMENDMENT TO THE AMENDED AND RESTATED PREDEVELOPMENT, ACQUISITION AND CONSTRUCTION LOAN AGREEMENT BETWEEN THE CITY AND OHLONE GARDENS, L.P. AND APPROVING THE REPLACEMENT PLAN FOR THE SPECIAL NEEDS UNITS AND SUPPORTIVE SERVICES PLAN WHEREAS, the El Cerrito Redevelopment Agency (the "Agency") encouraged redevelopment in specific portions of the El Cerrito Redevelopment Project Area in accordance with the goals and objectives of the City ofEl Cerrito Redevelopment Plan as amended; ' WHEREAS, the Agency adopted Resolution No. 579 on March 2, 2009 and Resolution No.586 on May 18, 2009 making findings and approving a permanent loan (the "Loan") from the Low and Moderate Income Housing Fund to the .Ohlone Gardens L.P. (the "Developer") for acquisition, predevelopment and construction expenses related to the acquisition of 6431 and 6495 Portola Drive and its development into a n:ixed-use residential development consisting of approximately 57 rental units affordab~e to v~ry low- and low-income households and non- residential space for the Hatlen Center for the Blind education program (the "Development"); and WHEREAS, the Agency provided the Loan for the purposes of increasing, improving and preserving the community's supply of low- and moderate-income housing pursuant to California Health and Safety Code §33334.2; and WHEREAS, the Agency and the City previously determined that the project is exempt from the California Environmental Quality Act (CEQA) under Section 15332 -Infill Development; and WHEREAS, the Developer has acquired 6495 and 6431 Portola Drive and obtained the necessary entitlements for construction of the Development; and WHEREAS, the City adopted Resolution No. 2012-04 on January 17, 2012 electing to retain the housing assets and functions previously performed by the Agency in accordance with Section 34176 of the Redevelopment Law and becoming the housing successor to the El Cerrito Redevelopment Agency; and WHEREAS, the Agency was dissolved effective February 1, 2012 pursuant to the State Budget bill ABX1 26 (the "Dissolution Act") and all housing assets, less the unencumbered housing balance, and obligations of the former Agency were transferred to the City as housing successor by operation of law; and WHEREAS, the Hatlen Center for the Blind has withdrawn as cosponsor of the Development; and ---PAGE BREAK--- Agenda Item No. 7(A)(l) Attachment 1 WHEREAS, the City desires to amend the Loan to reflect the withdrawal of the Hatlen Center for the Blind from the Developm~nt and to make various technical amendments; and I WHEREAS, the proposed Second Amendment to the Amended And Restated Predevelopment, Acquisition And Construction Loan Agreement Between the City And Ohlone Gardens, L.P. (Loan Amendment Agreement) for the Development is consistent with the former Agency's Five Year Implementation Plan; and WHEREAS, by the Agenda Bill accompanying this Resolution and incorporated herein by this reference, the City has been provided with additional information upon which the findings and actions set forth in this Resolution are based. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EL CERRITO AS HOUSING SUCCESSOR TO THE EL CERR,ITO REDEVELOPMENT AGENCY AS FOLLOWS: 1. The City Council finds that the above re~itals are accurate. 2. The City Council hereby authorizes the City Manager to prepare and execute a Loan Amendment Agreement, in substanti~1ly the form attached hereto as Exhibit A, and related documents and to take such ·ather actions as are appropriate to effectuate the Loan Amendment. BE IT FURTHER RESOLVED that the City Council hereby approves the Developer Proposal for Replacement of the Special Needs Units and Supportive Services Plan in substantially the form provided as Exhibits Band C to this Resolution. BE IT FURTHER RESOLVED that this Resolution shall become effective immediately upon its passage and adoption. I CERTIFY that at the regular meeting on April 1 7, 2012, the City Council of the City of El Cerrito passed this resolution by the following vote: AYES: NOES: ABSTAIN: ABSENT: COUNCILMEMBERS: COUNCILMEMBERS: COUNCILMEMBERS COUNCILMEMBERS: IN WITNESS of this action, I have hereunto set my hand and affixed the of~cial Seal of said City, this_ day of April, 2012. Chery 1 Morse, City Clerk ---PAGE BREAK--- Approved: William C. Jones III, Mayor Agenda Item No. 7(A)(l) Attachment 1 ---PAGE BREAK--- I Agenda Item No. 7(A)( 1) I Attachment 2- Exhibit A to Resolution 2012-XX Second Amendment to Amended and Restated Predevelopment, Acquisition and Construction Loan Agreement between the El Cerrito Redevelopment Agency and Ohlone Gardens, L.P. This Second Amendment to the Amended and Restated Predevelopment, Acquisition and Construction Loan Agreement is entered into between the City of El Cerrito as housing successor to the El Cerrito Redevelopment Agency (the "City") and Ohlone Gardens, L.P., a California limited partnership ( the "Developer") as of this day of , 2012. RECITALS A. The El Cerrito Redevelopment Agency and the Developer hav,e previously entered into that certain Amended and Restated Predevelopment, Acquisition and Construction Loan Agreement dated June 24, 2009 as amended by that certain First Amendment to Amended and Restated Predevelopment, Acquisition and Construction Loan Agreement dated March 7, 2011 (the "Loan Agreement"). B. The Agency was dissolved effe~tive Fe.bruary 1, 2012 pursuant to the provisions of AB1x 26 and in accordance with the provisions of AB1x 26, all of the Agency's housing assets and obligations transferred to the City as the housing successorto the Agency, including the Loan Agreement. C. The Developer has notified the City that the Developer's Co-sponsor and co-general partner Hatlen Center for the Blind has withdrawn from the partnership and is no longer a Co-sponsor of the Development. D. The City and the Developer now desire to amend the Loan Agreement in order to make those changes that are necessary to reflect the changes in the Developer entity and to make certain other changes related to the schedule for development as more fully set forth herein. NOW, THEREFORE, in consideration of the recitals hereof and the mutual promises and covenants set forth in this Agreement, the Parties agree as follows: 1. Developer. Section 1.1. of the Loan Agreement is hereby deleted, and all references to the Co-Sponsor or HCB in the Loan Agreement are hereby deleted. Section 1.1(q) is hereby amended in its entirety to read as follows: "Developer" shall mean Ohlone Gardens, L.P., a California limited partnership whose general partner is RCD Housing LLC, a California limited liability company, and initial limited partner is Resources for Community Development, a California nonprofit public benefit corporation. 2. Subordination. Section 2.6(i) is hereby amended in its entirety to read as follows: 319\31\1119445.1 ---PAGE BREAK--- Agenda Item No. 7 Attachment 2- Exhibit A to Resolution 2012-XX In the event there is a foreclosure of the Property, the Regulatory Agreement shall be revived according to its original terms if, during the original Regulatory Agreement term, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, RCD or any of their affiliates or subsidiaries, obtains an ownership interest in the Development or Property. 3. Section 2.60) is deleted in its entirety. 4. Disbursement. Section 2.7(b) is hereby amended in its entirety to read as follows: Predevelopment Component. Upon satisfaction of conditions in Section 2.7(a) above , the City shall from time to time disburse the Predevelopment Component (or so much thereof as is required) for cost items and in amounts consistent with updated Predevelopment, Acquisition and Devel6pment Budget as shown in Exhibit B; provided that the City shall not be obligated to disburse any amount in excess of One Hundred Thousand ($100,000) of the Predevelopment Component previously disbursed to RCD pursuant to the Original Loan Agreement until the Developer has submitted to the City an updated Financing Proposal for the Development consistent with the requirements of Section 3.2 of the Loan Agreement, and the City has approved such Financing Proposal in accordance with Section 3.2 below; and (ii) the City has received sufficient funds from the Redevelopment Property Tax Trust Fund pursuant to an approved Recognized Obligations Payment Schedule that includes the Loan Agreement as an Enforceable Obligation, which approval the City agrees to use its diligent, good-faith efforts to obtain. 5. Repayment. Section 2.8(d) is hereby amended in its entirety to read as follows: Forgiveness. Notwithstanding anything to the contrary in the Loan Documents, if the Developer determines that the Development is not financially feasible, the Developer shall so inform the City in writing and shall provide the City with the Developer's basis for the determination of financial infeasibility. If the City concurs with the Developer on the determination of financial infeasibility and if the City and the Developer are unable to mutually agree upon an alternative method of financing the Development, including changes to the scope of the Development that would allow the Development to proceed, the City may require the Developer to transfer the Property to the City, in which event the Loan shall be forgiven and the Developer shall be released from Developer's obligation to repay the Loan, or (ii) allow the Developer to sell the Property on terms and conditions to be agreed upon by the City and the Developer, in which event payment to the City of sales proceeds up to the amount of the outstanding Loan funds minus only the reasonable costs of sale, which payment to the City shall be considered satisfaction of the Loan, and upon such payment the Developer shall be released from Developer's obligations to repay the Loan. In the event there are any tenants occupying the Property at the time the City requires transfer of the Property to the 319\31\1119445.1 ---PAGE BREAK--- Agenda Item No.7 Attachment 2 - Exhibit A to Resolution 2012-XX City, the Developer shall be re~potisible for terminating such tenancies and removing the tenants, including the payment of relocation benefits if such benefits are owed. Developer shall execute any documents reasonably requested by the City including a grant deed in order to effectuate the transfer of the Property. Additionally, in the event of a transfer of the Property to the City, at the City's election, the Assignment Agreement shall be effective and Developer shall provide to the City all plans, permits and other documents relevant to the development of the Property, provided, however, in the event the City requests to effectuate the Assignment Agreement pursuant to this Section 2.8, the City shall compensate the Developer for the Developer's third party costs incurred by the Developer for such plans as evidenced by invoices provided by the Developer to the City. 6. Financing Proposal. Developer shall deliver to the City an.updated Financing Proposal consistent with the requirements of Section 3.2 of the Loan· Agreement within the time set forth in the updated Schedule of Predevelopment Tasks attached to this Second Amendment as Exhibit C. 7. Financing Plan. Subsection 4.3(b) is her,eby deleted in its entirety. 8. Reports. Subsection 4.6 is hereby amended in its entirety to read as follows: Section 4.6 Reports. Upon reasonable notice, as from time to time requested by the Agency, the Developer shall make oral or written progress reports advising the City on progress made and next steps to be taken by the Developer in the performance of the development activities. 9. Commencement of Construction. Section 5.1 of the Loan Agreement is hereby amended in its entirety to read as follows: Developer shall cause the commencement of construction of the Development no later than the date required by the conditions of the award of tax credits for the Development, and in no event later than February 1, 2016. 10. Completion of Construction. Section 5.2 of the Loan Agreement is hereby amended in its entirety to read as follows: Developer shall diligently prosecute construction of the Development to completion, and shall cause the completion of construction and the receipt of a final certificate of occupancy for the Development no later than the date required by the conditions of the award of tax credits for the Development, and in no event later than February 1, 2018, subject to automatic adjustment in the event the date for commencement of construction is extended beyond the date indicated in Section 5 319\31\1119445.1 ---PAGE BREAK--- Agenda Item No.7 Attachment 2- Exhibit A to Resolution 2012-XX 11. Supportive Services Plan. Section· 5.5 of the Loan Agreement is hereby amended in its entirety to read as follows: Section 5.5 Supportive Services Plan. The Developer shall, within ninety (90) days of the date of this Second Amendment, submit to the City for its approval a supportive services plan with a designated special needs population targeted for such services. 12. Transfers. Section 7.9 of the Loan Agreement is hereby amended in its entirety to read as follows: Section 7.9 Transfers. Prohibited Transfers. Except as· expressly permitted by this Agreement, the Developer shall not cause or permit a Transfer without the prior written approval of the City, which, the City may grant or deny in its sole discretion. For purposes of this Agreement, a "Transfer" shall not include Developer's transfer of its right, title, and interest in this Agreement or the Development to a limited partnership of which the general partner is affiliated with Developer or Developer's limited partner, a limited liability company of which the manager 'is affiliated with Developer or Developer's limited partner, or a nonprofit public benefit corporation affiliated with Developer or Developer's limited partner. Notwithstanding anything to the contrary in the Loan Documents, the Developer shall not obtain any financing, including, but not limited to the Approved Financing, which would be secured against the Property unless and until the Developer has provided the City with an updated Financing Proposal in accordance with Section 3.2 and the City has approved such financing.proposal in accordance with Section 3.2. 13. Notices. The Developer's address for notices is amended as follows: Ohlone Gardens, L.P. c/o Resources for Community Development 2200 Oxford Street Berkeley, CA 94704 Attn: Executive Director 14. Budget and Schedule of Predevelopment Tasks. Exhibit B, Predevelopment, Acquisition and Construction Budget is hereby amended and replaced as set forth in Exhibit B attached hereto. Exhibit C, Schedule ofPredevelopment Tasks is hereby amended and replaced as set forth in Exhibit C attached hereto and to the extent that any task set forth in the updated Schedule of Predevelopment Tasks is not noted as complete, Developer shall be required to complete such tasks in accordance with the updated Schedule, regardless of whether the Agency or the City has previously approved a submission related to such Tasks. 319\31\1119445.1 ---PAGE BREAK--- Agenda Item No.7 Attachment 2- Exhibit A to Resolution 2012-XX 15. Effect of Amendment. Unless otherwise amended pursuant to this Second Amendment, the provisions of the Loan Agreement shall remain in full force and effect. In the event of a conflict between this Second Amendment and the Loan Agreement, this Second Amendment shall control. All references in the Loan Agreement to the Agency shall be deemed to refer to the City acting as the housing successor to the El Cerrito Redevelopment Agency effective as of February 1, 2012, provided, however, the City shall not be responsible for any act, inaction or omission of the Agency under the Loan Agreement or related documents that occurred prior to February 1, 2012. WHEREFORE, this Second Amendment has been entered into by the undersigned as of the date first above written. DEVELOPER: OHLONE GARDENS, L.P., a California limited partnership By: RCD Housing LLC, a California limited liability CITY: company, its managing co-general partner By: 112 Alves Lane, Inc., a California nonprofit public benefit corporation, its member/manager By: Name: Its: CITY OF EL CERRITO, A municipal corporation, acting as the housing successor to the El Cerrito Redevelopment Agency By: Name: Scott Hanin Its: City Manager _ 319\31\1119445.1 ---PAGE BREAK--- EXHIBIT B PREDEVELOPMENT, ACQUISITION AND CONSTRUCTION BUDGET Ohlone Gardens -Portola Drive, El Cerrito Preliminary Sources by Uses - Predevelopment Focus Development Sources 1st Mortgage Contra Costa MHSA Contra Costa HOPWA City of El Cerrito 9% Tax Credt Equity 1C AHP GP Equity I Deferred Developer Fee Construction Loan (interim source) Total Predevelopment Phase! Phase II Traffic/Acoustical Analysis Appraisal Soils/Geotechnical Construction Hard Cost Hard Cost Contingency Permits & Fees Utility Hookups Builder's Risk Insurance Construction Testing Survey 166.69 Construction Management Furnishings including Computer Lab Costs Predev Loan Costs Insurance Property Taxes Security-Construction Period Syndication Costs Aoctng.- AudiVTax Returns/Cost Cert. Investor Legal Owner Legal Consultant TCACFees Soft Costs Marketing /Rentup Market Study Soft Cost Contingency Developer Fee Reserves Operating Reserve MHSAFee Services Reserve Amount 1,500,000 562,430 500,000 3,500,000 15,022,062 2,860,000 560,000 500,000 14,927,927 24 504492 8,800 16,000 9,505 9,000 1,750,000 1,150,000 23,000 65,000 50,000 836,750 30,000 14,144,142 1,429,914 632,400 684,000 125,000 30,000 15,000 65,000 125,000 111,959 30,000 797,711 25,000 30,000 7,492 10,000 25,000 10,000 85,875 . 5,000 147,045 125,000 17,000 20,000 20,000 57,500 28,526 65,000 11,500 125,500 1,400,000 134,400 16,473 Predevelopment 3,500,000 3 500000 8,800 16,000 9,505 9,000 1,750,000 1,150,000 23,000 166,750 30,000 632,400 15,000 10,000 85,875 94,545 5,000 10,000 2,000 11,500 15,625 Construction 562,430 500,000 1,567,205 2,860,000 560,000 14,927,927 20 977 562 4,500 16,000 1,750,000 . 1,150,000 ~ 23,000 65,000 15,000 Permanent 1,500,000 13,454,857 500,000 (14,927,927) 526 930 9,505 7,000 16,750 10,000 82,045 5,000 10,000 7,500 4,300 2,000 150,000 20,000 7,400 15,000 10,000 85,875 12,500 2,000 4,000 15,625 Source Purpose . . C::s\i~A&illisiu lMb?qt.·; : Pm\) t1 I'J,J:I"i t'f t,.J.-:nq /)11~ 1 Director of Hesident Servlces Hesources for Community Development 2220 Oxford St., Berkeley, CA 94704 De,1r Janice, GRIP supports Resource$ for Comnl(mity Df~veloprnent's services programming at Ohlone Gardens, which is loc