HomeMy WebLinkAboutPCDC Minutes 02/21/1995FEB 2
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AGENDA ITEM #
KEY WORD: Zell
DATE: February 21, 1995
DEPARTMENT: Housing Division
REQUESTED COMMISSION ACTION: Resolution approving the allocation of
$63,900.00 from the Site Acquisition Reserve of the Housing Fund to complete the
purchase of the Zell site for the purpose of developing an affordable housing project.
RECOMMENDATION: Staff recommends approval of the request. The site acquisition
reserve (currently funded at $242,100) exists for just such opportunities. This remaining
allocation will allow PCDC and Burbank to purchase and landbank the site until a
development plan is approved and construction financing is in place.
BACKGROUND: Actions to purchase this 4.5 -acre site at the corner of Pagan and
Petaluma Blvd. (consisting of 5 parcels; A.P. #'s 6-051-48, 50, 51, 52, 53) were initiated by
Burbank Housing in 1990. $644,400 from the PCDC Housing Fund and $103,750 in Block
Grant funds have been allocated over a 3 -year period.
At the May 2, 1994 PCDC meeting at which the FY 1995 budget was discussed, the
decision was made to hold the "Zell" funds in abeyance until:
1. The title was successfully cleared;
2. A new appraisal was completed; and
3. Staff applied to the State of California for HOME funds needed for another
Burbank Project, Roundwalk Village. If the Home application were not
successful, the "Zell" money would then be used to complete the finance
picture for Round Walk, a development -ready project.
The HOME application for $978,000 was successful, the title has been cleared, and a lower
purchase price has been negotiated based upon a May 1994 re -appraisal of the property.
ALTERNATIVES: Deny the request; direct Burbank to find another source of funds to
complete the purchase.
CONSEQUENCES OF NOT ACTING: The purchase will not be completed until the
remainder of the funds are collected.
ACTION FOLLOWING AUTHORIZATION: Burbank Housing will follow through with
the seller, provide PCDC with all appropriate documents and consummate the acquisition.
ATTACHMENTS: 1. Location Map.
2. Letter of request from Burbank Housing.
3. Draft resolution approving request of Housing Fund allocation
for purchase of future affordable housing site.
zellca/bg18