Housing Authority

City Hall, Council Chamber City of Santa Rosa 100 Santa Rosa Avenue Santa Rosa, CA Housing Authority Special Meeting Minutes - Final Monday, December 19, 2022 1:30 PM Special Meeting 1. CALL TO ORDER Chair Test called the meeting to order at 1:30PM. 2. ROLL CALL Present 6 - Chair Diane Test, Vice Chair Jeffrey Owen, Commissioner Stephen Burke, Commissioner Thomas LaPenna, Commissioner Scott McWhorter, and Commissioner Yvonne Rawhouser Absent 1 - Commissioner Wayne Downey Ph. D 3. STATEMENTS OF ABSTENTION NONE 4. STUDY SESSION NONE 5. PUBLIC COMMENTS (ON NON-AGENDA ITEMS) None 6. APPROVAL OF MINUTES 6.1 November 28, 2022 - Draft Minutes. Approved as submitted. 7. PROCLAMATIONS/PRESENTATIONS 7.1 PROCLAMATION - PROCLAMATION OF APPRECIATION FOR JEFF BERK Chair Test read into the record the Proclamation of Appreciation for Jeff Berk. Public Comments: None City of Santa Rosa Special Meeting Minutes Page 2 of 4 Housing Authority Special Meeting Minutes - Final December 19, 2022 8. CHAIRPERSON/ COMMISSIONER REPORTS Commissioner Burke asked for an update regarding recommendations made during the Housing Authority Planning Day. Megan Basinger, Housing and Community Services Director, stated that recommendations discussed during the Housing Authority Planning Day will be reviewed at the January, 2023, Housing Authority meeting. 9. COMMITTEE REPORTS NONE 10. EXECUTIVE DIRECTOR REPORTS/ COMMUNICATION ITEMS: 10.1 COMMUNICATION - PENDING DEVELOPMENT PIPELINE UPDATE Provided for information only Megan Basinger, Housing and Community Services Director, provided information regarding the Pipeline Update, the status of leasing the 45 affordable housing units at Orchard Commons, and stated that four out of five Community Development Block Grant-Disaster Recovery funded projects were either under construction or have been completed. Public Comments: None 11. CONSENT ITEMS NONE 12. REPORT ITEMS 12.1 REPORT - BENNETT VALLEY APARTMENTS - $272,000 REDUCTION TO PRIOR FUNDING COMMITMENT FOR COSTS ASSOCIATED WITH THE DEMOLITION OF THE SITE PRIOR TO DEVELOPER ACQUISITION BACKGROUND: On May 10, 2021, the Housing Authority approved a conditional commitment of $5,800,000 in loan funds for City of Santa Rosa Special Meeting Minutes Page 3 of 4 Housing Authority Special Meeting Minutes - Final December 19, 2022 construction-related costs for Bennett Valley Apartments (the “Project”). On October 20, 2022, a fire occurred, which resulted in the City’s Building Division “red-tagging” the City-owned site and necessitating the demolition of the site before the anticipated April 2023 sale to the Developer. The Developer has agreed to reduce the conditional commitment of loan funds awarded by the Housing Authority by up to $272,000 so that those funds may be utilized by the City for costs associated with the demolition of the site. RECOMMENDATION: It is recommended by the Housing and Community Services Department that the Housing Authority, by resolution, approve a reduction up to $272,000 to a prior conditional commitment of loan funds in the amount of $5,800,000 to Freebird Development Company, LLC for the Bennett Valley Apartments project to allow funds to be utilized for demolition of the site prior to developer acquisition. Nicole Del Fiorentino, Housing and Community Services Manager, gave a presentation and answered Commissioner questions. Jason Nutt, Assistant City Manager, assisted in responding to Commissioner questions. Megan Basinger, Housing and Community Services Director, assisted in responding to Commissioner questions. Public Comments: Robin Zimbler, Founder of Freebird Development, commented that the buyer is fully supportive of the agreement, and that the Freebird Development Environmental team has assessed no significant environmental issues at the site. A motion was made by Vice Chair Owen, seconded by Chair Test, to waive reading of the text and adopt: RESOLUTION NO. 1750 ENTITLED: RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF SANTA ROSA APPROVING A REDUCTION UP TO $272,000 TO A PRIOR CONDITIONAL COMMITMENT OF LOAN FUNDS IN THE AMOUNT OF $5,800,000 TO FREEBIRD DEVELOPMENT COMPANY, LLC FOR THE BENNETT VALLEY APARTMENTS PROJECT TO ALLOW FUNDS TO BE UTILIZED FOR DEMOLITION OF THE SITE PRIOR City of Santa Rosa Special Meeting Minutes Page 4 of 4 Housing Authority Special Meeting Minutes - Final December 19, 2022 TO DEVELOPER ACQUISITION. The motion carried by the following vote: Yes: 6 - Chair Test, Vice Chair Owen, Commissioner Burke, Commissioner LaPenna, Commissioner McWhorter and Commissioner Rawhouser Absent: 1 - Commissioner Downey Ph. D 13. ADJOURNMENT Seeing no further business, Chair Test adjourned the meeting at 2:13PM. Approved on: _______________________________ Steven V. Brown Recording Secretary