Fiscal Considerations. The proposed DDA provides for CentrePoint, LLC to finance the project with a combination of conventional financing and developer equity. CentrePoint, LLC has requested Agency involvement with gap financing for a portion of the units to be affordable and possible assistance with acquiring leasehold interests. The total project cost is approximately $110 million (see Attachment 7), and the project is projected to generate approximately $900,000 in new gross tax increment per year, after the completion of the project in 2010 (see Attachment 8). Total Redevelopment Agency financial contributions to the project will not exceed $5,245,000, plus interest for the affordable units. The Agency’s contribution will be in the form of a Developer advance/loan which will be repaid from the Crossroads Redevelopment Project Area’s Low and Moderate Income Housing Fund to subsidize 47 affordable units. This requirement will be subordinate to any future Agency bond payment obligation. The Agency will have the option to make additional payments or repay the outstanding balance in full without a prepayment penalty. The Agency will also use reasonable efforts to issue and sell bonds for the Crossroads Redevelopment Project to repay the obligation. Simple interest on the outstanding balance of the total Agency obligation will accrue at a rate of 7% per year. Interest on the loan will begin at the issuance of the certificate of occupancy for all the affordable units, expected to occur in July 2009. If the affordable units are sold for more than projected in the financial pro-forma, the Agency will receive a credit against its obligation. The Developer has agreed to provide the Agency with a Good Faith deposit of $100,000 as a security for the performance of their obligations under the DDA. · On June 21, 2005 the Redevelopment Agency approved an Exclusive Negotiating Agreement with CentrePoint, LLC to develop a mixed-use project on an 8.93 site along El Cajon Blvd. · On November 29, 2005 the Redevelopment Agency approved the Replacement Housing Plan for the CentrePoint Project. The Plan states that 2 of the existing 9 units will be replaced on- site and the remaining 7 units will be replaced at the Auburn Park project. · On December 12, 2005, the Affordable Housing Collaborative Review Team reviewed the proposal and recommended that the Affordable Housing Collaborative Executive Loan Committee approve the allocation of $5,245,000 from the Crossroads Redevelopment Project Area Low and Moderate Housing Set-Aside Funds for gap financing for the project. · On December 16, 2005, the Affordable Housing Collaborative Executive Loan Committee reviewed the proposal and voted to approve the allocation of $5,245,000 from the Crossroads Redevelopment Project Area Low and Moderate Housing Set-Aside Funds for gap financing for the project. · On January 26, 2006, the City of San Diego Planning Commission, as Lead Agency, Certified the Mitigated Negative Declaration, Number 74816 (see Attachment 9) in compliance with the CEQA for the project’s discretionary permit. · On March 24, 2005, pursuant to California Community Redevelopment Law, an owner participation letter was sent by certified mail to the business and residential tenants of all affected residential units and business establishments within the proposed project. The letter solicited input from the existing business and residential tenants regarding their interest and desire to re-enter at the same location or re-enter at a different location within the Crossroads Redevelopment Project Area. Two written responses to the letter were received by the Agency from residential tenants who indicated a desire to re-enter at the same location or re- enter at a different location within the Crossroads Redevelopment Project Area. After learning of the project’s schedule, these residential tenants reached financial agreements with CentrePoint, LLC. · On September 13, 2005 the Eastern Area Planning Committee voted 11-0 to recommend approval of the project’s entitlements and related actions. · On December 8, 2005, the Crossroads Project Area Committee (PAC) reviewed the terms of the proposed DDA and voted 10-0-1 to recommend that the Agency enter into a DDA. · On January 26, 2006 the Planning Commission approved the entitlements for the proposed project on consent 4-1. Development Team - Developer CentrePoint, LLC Contact: ▇▇▇▇▇ ▇▇▇▇▇▇▇ The two managing members of CentrePoint, LLC are ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Development (▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, President and CEO) and LB El Cajon, a ▇▇▇▇▇▇ Brothers Entity (▇▇▇▇▇ ▇▇▇▇▇, Managing Director) Architect KTGY Group Contact: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, CEO ▇▇▇▇▇▇ ▇▇▇▇▇, CFO Civil Engineer Project Design Consultants Contact: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Managing Principals: ▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇ and ▇▇▇ ▇▇▇▇▇▇▇ Landscape Architect ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ & ▇▇▇▇ Contact: ▇▇▇▇ ▇▇▇▇▇▇▇ Twenty-Two Principals: See attached Statement of Ownership (see Attachment 10) Planning & Community Consultant MetroPlan LLC Contact: ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ City Resident and Business Impact - The proposed Centrepoint project will add new affordable and market rate for-sale units to the Mid City Communities housing stock and generate approximately $1 million per year in new gross tax increment to the Crossroads Redevelopment Project Area. Respectfully submitted, ________________________ _____________________________ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Deputy Chief Redevelopment Acting Deputy Director Land Use and Economic Development ▇▇▇▇▇▇/TWR Attachments: 1. Redevelopment Project Area Map
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Fiscal Considerations. The proposed DDA provides for CentrePoint, LLC to finance the project with a combination of conventional financing and developer equity. CentrePoint, LLC has requested Agency involvement with gap financing for a portion of the units to be affordable and possible assistance with acquiring leasehold interests. The total project cost is approximately $110 million (see Attachment 7), and the project is projected to generate approximately $900,000 in new gross tax increment per year, after the completion of the project in 2010 (see Attachment 8). Total Redevelopment Agency financial contributions to the project will not exceed $5,245,000, plus interest for the affordable units. The Agency’s contribution will be in the form of a Developer advance/loan which will be repaid from the Crossroads Redevelopment Project Area’s Low and Moderate Income Housing Fund to subsidize 47 affordable units. This requirement will be subordinate to any future Agency bond payment obligation. The Agency will have the option to make additional payments or repay the outstanding balance in full without a prepayment penalty. The Agency will also use reasonable efforts to issue and sell bonds for the Crossroads Redevelopment Project to repay the obligation. Simple interest on the outstanding balance of the total Agency obligation will accrue at a rate of 7% per year. Interest on the loan will begin at the issuance of the certificate of occupancy for all the affordable units, expected to occur in July 2009. If the affordable units are sold for more than projected in the financial pro-forma, the Agency will receive a credit against its obligation. The Developer has agreed to provide the Agency with a Good Faith deposit of $100,000 as a security for the performance of their obligations under the DDA. · On June 21, 2005 the Redevelopment Agency approved an Exclusive Negotiating Agreement with CentrePoint, LLC to develop a mixed-use project on an 8.93 site along El Cajon Blvd. · On November 29, 2005 the Redevelopment Agency approved the Replacement Housing Plan for the CentrePoint Project. The Plan states that 2 of the existing 9 units will be replaced on- site and the remaining 7 units will be replaced at the Auburn Park project. · On December 12, 2005, the Affordable Housing Collaborative Review Team reviewed the proposal and recommended that the Affordable Housing Collaborative Executive Loan Committee approve the allocation of $5,245,000 from the Crossroads Redevelopment Project Area Low and Moderate Housing Set-Aside Funds for gap financing for the project. · On December 16, 2005, the Affordable Housing Collaborative Executive Loan Committee reviewed the proposal and voted to approve the allocation of $5,245,000 from the Crossroads Redevelopment Project Area Low and Moderate Housing Set-Aside Funds for gap financing for the project. · On January 26, 2006, the City of San Diego Planning Commission, as Lead Agency, Certified the Mitigated Negative Declaration, Number 74816 (see Attachment 9) in compliance with the CEQA for the project’s discretionary permit. · On March 24, 2005, pursuant to California Community Redevelopment Law, an owner participation letter was sent by certified mail to the business and residential tenants of all affected residential units and business establishments within the proposed project. The letter solicited input from the existing business and residential tenants regarding their interest and desire to re-enter at the same location or re-enter at a different location within the Crossroads Redevelopment Project Area. Two written responses to the letter were received by the Agency from residential tenants who indicated a desire to re-enter at the same location or re- enter at a different location within the Crossroads Redevelopment Project Area. After learning of the project’s schedule, these residential tenants reached financial agreements with CentrePoint, LLC. · On September 13, 2005 the Eastern Area Planning Committee voted 11-0 to recommend approval of the project’s entitlements and related actions. · On December 8, 2005, the Crossroads Project Area Committee (PAC) reviewed the terms of the proposed DDA and voted 10-0-1 to recommend that the Agency enter into a DDA. · On January 26, 2006 the Planning Commission approved the entitlements for the proposed project on consent 4-1. Development Team - Developer CentrePoint, LLC Contact: ▇▇▇▇▇ ▇▇▇▇▇▇▇ The two managing members of CentrePoint, LLC are ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ Development (▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, President and CEO) and LB El Cajon, a ▇▇▇▇▇▇ Brothers Entity (▇▇▇▇▇ ▇▇▇▇▇, Managing Director) Architect KTGY Group Contact: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, CEO ▇▇▇▇▇▇ ▇▇▇▇▇, CFO Civil Engineer Project Design Consultants Contact: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ Managing Principals: ▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇ and ▇▇▇ ▇▇▇▇▇▇▇ Landscape Architect ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ & ▇▇▇▇ Contact: ▇▇▇▇ ▇▇▇▇▇▇▇ Twenty-Two Principals: See attached Statement of Ownership (see Attachment 10) Planning & Community Consultant MetroPlan LLC Contact: ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ City Resident and Business Impact - The proposed Centrepoint project will add new affordable and market rate for-sale units to the Mid City Communities housing stock and generate approximately $1 million per year in new gross tax increment to the Crossroads Redevelopment Project Area. Respectfully submitted, ________________________ _____________________________ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Deputy Chief Redevelopment Acting Deputy Director Land Use and Economic Development Note: The attachments are not available in electronic format. A copy for review is available in the Office of the City Clerk. ▇▇▇▇▇▇/TWR Attachments: 1. Redevelopment Project Area Map
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