For Economic Development Committee Meeting (January 30, 2019)
TO: Honorable Economic Development Committee Members
APPROVAL: Sean Grayson, Interim City Administrator/Executive Director
FROM: Robb Steel, Assistant City Administrator/Development Services Director
Title
Request the Economic Development Committee consider recommending to the City Council and RHA Board approval of 1) Rialto Metrolink South Housing Partners' time extension to approve Amendment #2 to develop an affordable housing project of 38 units on the north side of Bonnie View Drive, just west of Riverside Avenue, and 2) Affordable Housing Agreement and Purchase Sales Agreement with LaBarge Industries to develop an affordable housing project of 10 units on the northeast corner of Jackson Street and Willow Avenue.
(ACTION)
Body
BACKGROUND:
Bonnie View Housing Project
On December 12, 2017, the City Council/RHA Board approved the First Amendment (Exhibit A) to the Affordable Housing, Financing and Disposition and Development Agreement by and between the Rialto Housing Authority (RHA) and the Rialto Metrolink South Housing Partners (the developer is a partnership of National Community Renaissance, Related California, and LaBarge Industries; further known as "RMSHP") on the north side of Bonnie View Drive and just west of Riverside Avenue. The First Amendment reduced the site area from 2.56 acres to1.59 acres and the project scope from 65 units to 38 units. The City is currently constructing parking for the Metrolink Station on the balance (0.97 acres) of the original site. The site map is attached hereto as Exhibit B.
The First Amendment increased the loan amount from the RHA to RMSHP from $250,000 to $450,000 for predevelopment cost reimbursement. The total amount from RHA as a loan to the RMSHP was $5,500,000 (using former Redevelopment Agency housing bonds), consisting of the site purchase ($950,000 previously expended), the development cost amount ($4,300,000, of which $200,000 has be...
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