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HomeMy WebLinkAbout1985-04-22; Rehabilitation Loan Committee Ad Hoc; Minutes.. MINUTES MEETING OF: Rehabilitation Loan Committee: MEETING DATE: April 22, 1985 MEETING PLACE: City Council Chambers MEETING TIME: 1O:OO A.M. CALL TO ORDER: Meeting called to order at 1O:OO A.M. by Chairman Hall. PRESENT: Members, Hall, Holt, Orenyak, Member Elliott arrived at 10:40. STAFF PRESENT: Patricia A. Cratty, Administrative Assistant I1 Re deve 1 opme n t Chris Salomone, Community Redevelopment Manager APPROVAL OF MINUTES: Minutes of February 4, 1985, approved as read. OLD BUSINESS: ITEM 1. PAINT UP/FIX UP PROGRAM Staff member Cratty gave an update on the paint-up, fix up program that has been discussed by the committee on several occasions. Ms. Cratty stated that she has spoken with the County and with HUD. Program is eligible but there could be a problem with hiring a contractor, the City could be liable because it would be the City's contractor. Ms. Cratty stated that the City of La Mesa had a rebate program, for external improvements, they permit improvements and rebate the applicants up to $400. Best program has been found in El Centro. They hire summer youths and for the summer they will painthouses but do not get involved in the interio: work, people pick colors and the youths have a supervisor. So far El Centro has had no problem with the Painters Union. Ms. Cratty stated that she was looking into the program further and waiting for further information. Member Holt stated that he could understand the liability problem. Member Orenyak asked if there was documentation from the county on these programs Ms. Cratty stated that the program would need to be referred to the Attorney's office before implementing. Member Holt stated that he liked the rebate program better. Committee held discussion on perhaps painting over the graffiti in the City first and then going to houses and larger projects. MINUTES Rehabilitation Loan Committee 4/22/85 PAGE Committee discussed the possibility of starting on City "type" buildings first to see if the program is successful. Committee discussed having staff provide further information. ITEM 2. COMMERCIAL LOAN - JACOBS Ms. Cratty stated that this request was for the optometrist building on Harding Street. The loan application has been withdrawn. ITEM 3 RESIDENTIAL LOAN - MACPHERSON Ms. Cratty stated that this was a request for a loan to rehabilitate a single family residence at 351 Redwood. The applicants', Roger and Marie MacPherson, current annual income is $13,090. Mr. MacPherson works at the Universal Boot Shop, Mrs. MacPherson was previously employed at the Twin Inns. When they closed,shel-ost her employment. Current annual income would make them eligible for a 3% loan. Bank had previously approved the loan but when Mrs. MacPhersons' employment ended the bank could no longer approve. Staff is recommending that the loan be approved because the work needed is structural. Building inspector has looked at the building. Member Holt stated that he could only support this loan if she went back to work because of the out- standing debt unless they eliminate some credit cards. Staff mentioned that there are structural floor problems and more that need to be taken care of. Member Holt stated that they could get emergency repairs at an amount that they could better handle in payments. Ms. Cratty stated that a 3% loan for 15 years would be $124.20 a month. She has spoken to the MacPherson's regarding the payments and they indicated to her that they could handle the payment: Member Hall stated that they would not be asking for the money if they couldn't handle the payments. After further discussion the Committee agreed to grant loan in the amount of $17,319. Loan to be for 15 years at 3% interest with the option to pay-off in the event that Mrs. MacPherson becomes employed. Motion made by Member Orenyak to approve. HALL HOLT ORENYAK MINUTES 3ilitation Loan Committee 4/22/85 PAGE 3 ITEM 4 COMMERCIAL LOAN - ROBINSON Ms. Cratty gave report stating that this loan was a request for a commercial rehabilitation loan for the addition of 675 square feet to an existing office building. Office building belongs to Mr. Ed Robinson. The Committee looked at graphics showing the addition that was proposed at 3081 Madison Street to provide for more office space. Bank has reviewed his loan and has given verbal approval, however, the title report came in showing 4 trust deeds in the amount of $382,000. Bank will not continue until they receive information as to why more liens are on the property than equity. Bank was willing to consider the request with the $117,000 lien shown by Mr. Robinson at collateralization other than 60%/40%. Staffs concern on the loan request is the program guidelin to benefit community and to provide employment. The building is in excellent condition and needs no rehabilitation work. Mr. Robinson stated he may employ one maybe two more people after construction. After further discussion the committee agreed to better utilize the funds of the program and dis- approved the loan for the Robinson rehabilitation proposal. Motion made by Chairman Hall to disapprove the loan without prejudice. ITEM 5 CHANGE ORDERS TO WORK CONTRACTS Ms. Cratty gave report stating that normally when a loan is approved (residential mostly) if they need a wall painted like $30 or so she goes ahead and initials changes. If its major she brings changes back to the Committee. Staff would like to have something from the committee on what shoulc be brought back, whether it be in terms of dollar amount that she could approve without bringing them to the committee or percentage. Committee asked the frequency of the requests. Ms. Cratty said that there have been very few. After further discussion the committee agreed to establish a limit over contract that would be required to be returned to committee for approval. Concensus of the committee was to bring back any change order for approval that was over $500 or if staff felt the change order was inappropriate. The committee authorized staff to approve 5% over contract or $500 which ever is less. Member Elliott made motion to establish limit on change orders that can be approved by staff at 5% of the loan value or $500 whichever is less. If staff wanted to bring back to the committee that was appropriate also. ALL OLT RENYAK LLIOTT HALL HOLT ORENYAK ELLIOTT X X X L L MINUTES Rehabilitation Loan 412 /85 PAGE 4 ITEM 6 GRANT ALLOCATION FOR SANTA FE DEPOT Staff member Salomone, gave report stating that this was brought before the committee as an informational item. Staff would like to know if the committee would be willing to consider granting some funds to renovate the Santa Fe Depot. After discussion about the conditions of the building and its historic significance staff mentioned that at the present time there was a short term lease on the building with AT&SF. Also, that if the building were moved it would loose much of the historical significance. Staff stated that a grant for $2,000 would assist the rehabilitation. The whole project would be approximately $20,000 and other sources of grant funding is being pursued. Committee discussed the rehabilitation work needed and if $2,000 was all that was being requested, sta should ask Council for the funds. Discussion held on the possibility of Chamber of Commerce vacating building. Staff Member Salomone asked about a commercial enterprise in building. Member Orenyak stated that would be a different consideration. The building at present was the City's obligation or citizens obligation and rehabilitation money should be used for other projects. Discussion held on getting service organizations together to raise funds to renovate the building. After proper motion, meeting adjourned at 11:05 A.M Respectfully Subbmited, PATRICIA A. CRATTY Administrative Assistant I1 Redevelopment BIB1 LEAK Acting Minutes Clerk MEETINGS ARE TAPE RECORDED AND KEPT ON FILE UNTIL APPROVED.