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Page 1 of 4 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />November 9, 2015 <br />SUBJECT <br />Mezes Court Associates Loan Modification (Housing Successor Agency) <br /> <br />RECOMMENDATION <br />Adopt a resolution approving a loan modification, including prepayment of the RDA <br />General outstanding principal and accrued interest and extension of the remaining RDA <br />Low Mod loan term, by that certain Omnibus Amendment to Loan Documents by and <br />among the City of Redwood City as housing successor agency to the Redwood City <br />Redevelopment Agency (RDA), the Successor Agency, Mezes Court Associates, a <br />California Limited Partnership and a To Be Formed Limited Partnership and authorizing <br />the City Manager to execute and file all documents necessary to effectuate the loan <br />modification. <br /> <br />BACKGROUND <br />The former Redwood City Redevelopment Agency (“RDA”) entered into a Disposition and <br />Development Agreement (“DDA”) with J.H.R. Trust (“JHR”) and Mezes Court Associates, a <br />California Limited Partnership (“MCA”), the general partner of which is controlled by MidPen <br />Housing, in 1996 to develop 81 units of affordable multifamily rental housing and <br />approximately 18,000 square feet of ground floor retail space. Specifically, MCA developed <br />the City Center Plaza Apartments and JHR developed the ground floor commercial space. <br />The RDA provided financial assistance to both MCA and JHR through separate <br />Developer Notes (Notes) and Developer Deeds of Trust in accordance with the terms <br />and conditions of the DDA. The Notes and Developer Deeds of Trust are dated June <br />18, 1996, with MCA in the amount of $1,445,000 and JHR in the amount of $255,000 <br />(for a total of $1,700,000). <br /> <br />The fund sources used by the RDA to provide the financial assistance for both Notes <br />were from approximately 74% RDA General and 26% RDA Low Mod Set Aside. As a <br />result loan repayments of principal and interest are distributed to each receivable <br />account according to these percentages. <br /> <br />In addition to the RDA assistance the project financing for the development of the City <br />Center Plaza Apartment included 9% Federal Low Income Housing Tax Credits (“Tax <br />Credits”), provided through the California Tax Credit Allocation Committee and Program. All <br />81 units are affordable deed restricted units. <br /> <br /> <br /> <br />6.3.A. - Page 1