AgdaPkt 2005-02-28 - Laserfiche WebLink

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I,ß - 3 b. The Agency will provide the project with a Development Grant of $321,000 to be used to fund a portion of construction costs. The Development Grant will be funded as part of the FY 2004/05 CDBG budget, which allocated $354,850 to the EI Camino & Vera Avenue project. c. The Development Grant will be disbursed on a to-be determined schedule only after PHH has obtained commitments for debt, equity funds, and subsidy funds sufficient to fund the project's development costs. If PHH is unable to secure sufficient funds to complete the project without additional funding from the Agency, the DDA will terminate, the property will not transfer to PHH, and PHH will not receive any cash assistance from the City. d. The Agency will provide the project with a water facility fee subsidy (Fee Subsidy) to be used solely to pay water facility fees charged to the project. The fee amount for the project has not yet been determined, however the Fee Subsidy shall not exceed $74,000. e. The Agency does not currently have sufficient funds in place to fully fund the Development Grant and Fee Subsidy. The Agency will seek approval during the fiscal year 2005/06 budget process for additional funding for the project in the estimated amount of $41 ,000. The Developer is responsible for developing the project in accordance with the terms of the Disposition and Development Agreement, as follows. a. Developer will secure all necessary entitlements for the project description. b. Developer will be required to obtain commitments for debt, equity, and subsidy sources sufficient to fund the project's development costs prior to the conveyance of the property and the funding of the Agency Development Grant. If PHH is unable to secure sufficient financing to complete the Project without additional funding by the Agency, then the DDA will terminate, the property will not transfer to PHH, and PHH will not receive any cash assistance form the City. c. Developer shall construct the project consistent with the above project description. d. Developer shall be responsible for funding all development costs (predevelopment, land improvements, and building improvements) beyond the Agency's cash contribution of $321 ,000 plus a yet-to-be determined Fee Subsidy of no more than $74,000. e. The ownership units will carry 45-year affordability covenants limiting ownership to very low income households and occupancy costs to levels affordable to very low income households. f. Developer will market the units in accordance with a marketing plan to be developed by Agency staff. g. Developer covenants to pay prevailing wages pursuant to Agency Resolution No. RD-8-807 and state and federal law. Fiscal Impact In the FY 2004/05 CDBG budget, $354,850 was allocated for the EI Camino & Vera Avenue project. These funds will be used to fund the Development Grant of $321,000 and Redevelopmentshared/2005 Staff ReportslO2-2005/PHH DDA Page 3 of 4