HomeMy WebLinkAbout1985-11-07; Rehabilitation Loan Committee Ad Hoc; MinutesMjNUTES Meeting: Rehabilitation Loan ommittee
Date : November 7, 1985
Time : 8:30 AM
Place: Redevelopment Office (Conference Room)
2965 Roosevelt St., Suite "B"
Carlsbad, CA. 92008
CALL TO ORDER:
Meeting called to order by Staff Member Patricia A.
Cratty, Administrative Assistant II/Redevelopment
at 8:45 AM.
ROLL CALL:
PRESENT: JIM ELLIOTT: Finance Director
JOHN MC COY: Housing and Redevelopment Advisory Committee
Chairperson
MICHAEL MC DERMED: Bank Rep.
MARTY ORENYAK: Building and
Planning Director
STAFF PRESENT:
Patricia Cratty, Administrative
Assistant II/Redevelopment
Chris Salomone, Community
Redevelopment Manager
ITEMS: OLD BUSINESS/INFORMATIONAL ITEMS
I. CHAIRPERSON FOR COMMITTEE
Staff member Cratty introduced new member, Michael
Mc Dermed of La Jolla Trust and Savings Bank,
Bank Representative.
After discussion Committee members voted to appoint Member Mc Coy as Chairperson.
Staff member Cratty turned meeting over to Chair- person John Mc Coy.
2. SELECTION OF BANK TO SERVICE PROGRAM
Staff member Cratty gave staff report as contained
in agenda item stating that San Diego Trust and
Savings Bank had not submitted a proposal for the
Rehabilitation Loan Program servicing. She stated
that she had been in contact with bank representativ
and the feeling was that they could not handle program at this time.
After further discussion Chairperson Mc Coy stated
selection would have to be made between the two
banks that had submitted proposals.
Member Elliott stated that there were a lot of
processing costs associated with the proposal
submitted by Security Pacific Bank.
ELLIOTT
MC COY
MC DERMED
ORENYAK
h \
MINUTES
Rehabilitation Loan Committee PAGE 2 11/7/85 MEMBERS
Member Elliott also stated that there was an
improvement with the Bank of America proposal in
that they were willing to process loans though local
branch.
After questions being raised, discussion held
regarding procedure if there were a default on a
loan. Staff member Cratty stated that the Bank
of America would take money from collateral portion
to bring loan current and would process normal
foreclosure procedures.
Staff member Chris Salomone commented on the work
that would be involved in settling out all the
existing loans at the present time with the Bank of
America.
Discussion held on impact of processing if program
were to go City wide. Question raised if Bank of
America would still have local control if
Residential Rehabilitation Program went City wide.
Staff member Cratty stated that the Bank of
America was aware that the committee was seeking
authority to expand the Residential Rehabilitation
Loan Program City wide.
Discussion held on fund availability. Staff stated
that at the present time there was approximately
$100,000 available (uncommitted) with additional
funds expected in 30 days.
Motion made to continue agreement with Bank of
America to service Rehabilitation Loan Program.
3. EXPANSION/RESIDENTIAL LOAN PROGRAM
Staff member Cratty stated that she had received
correspondence from County regarding the amendment
to the Management and Implementation agreement for
the expansion of the Residential Rehabilitation Loar
Program. Ms. Cratty noted that the amount stated
in the agreement would be $25,000 for maximum amount
of loan instead of $15,000 as written. County
agreed with the change. Program maximum has been
$25,000 but County had not changed original draft.
After further discussion, motion made to notify
County to amend agreement permitting Residential
Rehabilitation Loan Program City wide and to forwarc
proper documents to City Council.
4. LOAN UPDATE
Staff member Cratty gave staff presentation as
contained in packet noting that there were no
delinquent loans at this time.
No action required.
ELLIOTT
MC COY
MC DERMED
ORENYAK
ELLIOTT
MC COY
MC DERMED
ORENYAK
s -
X
X
X
X
X
X
X
X
MINUTES
Rehabilitation Loan Committee PAGE 3 11/7/8
5. COMMERCIAL REHABILITATION LOAN WALKER/GILBERT
Staff report was given by Staff member Cratty,
stating that the owners of Carlsbad Crossings at
417 Elm Avenue (formerly Carlsbad Liquor from the
north east corner of State and Elm) were requesting a commercial rehabilitation loan for a total of
$56,322, $18,622 for work already completed but not
paid and $37,700 for work that remained including
improvements on the right-of-way.
Ms. Cratty stated that this rehabilitation loan
request was being forwarded to the committee for a
preliminary review, Bank of America is currently
processing the application.
Ms. Cratty stated that she has informed the
applicants' architect Robert Royce that the $18,622
for work completed but not paid does not meet
program guidelines since there was no way to
document work done at this point. Cost estimates
prepared for the $37,700 was done by Robert Royce
also and he was notified that two bids need to be
submitted.
Committee members discussed the timing from
application to approval of loans. Ms. Cratty
stated that their Design Review Board application
for a Redevelopment Permit was approved on August
28, 1985. The expenses to rehabilitate the building
were higher then anticipated so they have applied
for a commercial rehabilitation loan.
After further discussion committee felt that they
had no justification on where an additional
$37,700 worth of improvements needed to be done.
Discussion held on whether or not to allow the
first loan of $18,622 for work that has already
been completed. Staff stated that the applicant has
spent $35,293 of their funds to date. Motion made
denying loan on work that has been already done.
Discussion held on additional $37,700 requested.
Committee discussed estimates and outstanding code
violations that existed at site.
Member Orenyak stated the applicant needed to show
two estimates of costs and work that needs to be
done.
Staff stated that landscaping needs to be done as
well as the creation of 5 new parking spaces and
sidewalk improvements.
Motion made to consider loan after information is
received regarding estimates and specifications
detailing work to be done.
ELLIOTT
MC COY
MC DERMED
ORENYAK
ELLIOTT
MC COY MC DERMED ORENYAK
X
X
X
X
X
X
X
X
MINUTES
Rehabilitation Loan Committee PAGE 4 11/7/85
6. OFF AGENDA ITEM
12TH YEAR CDBG RECOMMENDATION
Ms. Cratty stated that the Committee at their last meeting made recommendation to put funds in the commercial and residential loan programs as part of
the 12th Year Community Development Block Grant funding but no amount was given.
Breakdown of available funding was given by staff.
Staff also stated that an ad was being placed in
the local newspapers to assist in getting persons to apply for residential rehabilitation loans.
Ms. Cratty stated that approximately $46,000 will bc available in commercial rehabilitation funds within
30 days.
After further discussion committee voted to recommend that $30,000 be placed in the Residential Rehabilitation Loan Program as part of 12th Year
funding.
By proper motion meeting was adjourned at 9:20 AM.
Respectfully Submitted,
PATRICIA A. CFTY
Administrative Assistant I1
Redevelopment
BIB1 LEAK
Acting Minutes Clerk
Secretary/Redevelopment
MEMBERS ’
ELLIOTT
MC COY
MC DERMED ORENYAK