CITY OF OAKLAND

MEMORANDUM
TO: Broadway/MacArthur/San Pablo PAC Members
FROM: Kathy Kleinbaum, Redevelopment Staff and
Mare !ladman, C"#A $ousin #evelopment Manaer
DATE: %ebruary &&, &''(
SUBJECT: Grove Park Land Acquii!ion " PAC Action Item
Back#round
At the )anuary &''( PAC meetin, Mare !ladman from the C"#A $ousin #ivision
department ave a presentation to the PAC about the status of the !rove Par* pro+ect, -he
development team for that pro+ect made a determination that they can not proceed with the
affordable ownership pro+ect proposed on the site and need to sell the corner property at .('/0
.('1 M2K to pay off a ban* loan, -he C"#A $ousin #evelopment #ivision is proposin to
purchase the property usin funds borrowed from the Broadway/MacArthur/San Pablo 2and
Ac3uisition %und, 4t is anticipated that up to 516',''' may be re3uired to complete this
transaction, -he funds will be paid bac* to the redevelopment area, with interest, from once a
new affordable housin developer is identified for the site and re3uests money throuh the
annual 78%A,
-he PAC did not have a 3uorum in )anuary and therefore was not able to ta*e formal action on
this item, All /' of the PAC members in attendance stated their support for this item, Staff plans
to o to City Council to et permission to purchase the property in April, As a result, the item is
bein brouht bac* to the PAC for a formal motion of support,
$e% Conidera!ion
-he City owns the ad+acent parcel at .(&. M2K and has a loan, that is due on .(&9 on the other
side of the City0owned parcel, -hese two parcels are too small to develop as a pro+ect on their
own but would allow for a feasible pro+ect if combined with .('/0.('1 M2K, C"#A $ousin
#evelopment staff intends to prepare a Re3uest for Proposals :R%P; and mar*et the combined
sites to other non0profit affordable housin developer for family rental affordable housin,
<nder State Redevelopment 2aw, /=> of all the units developed in a Pro+ect Area after the
adoption of a redevelopment plan are re3uired to be affordable, -his includes new housin
pro+ects that are built privately without any redevelopment assistance, -o date, .91 new units of
mar*et0rate housin have been built :or are currently under construction; in the Broadway/
MacArthur/San Pablo Redevelopment Pro+ect Area, all without Aency subsidy, 7o affordable
housin units have been developed to date, As a result, the Pro+ect Area currently has a deficit of
?' affordable units, -his total does not include all of the pro+ects that have been approved by the
plannin department but have not yet started construction,
/
!iven the limited availability of ood0si@ed development parcels in the Broadway/MacArthur/
San Pablo Pro+ect Area, staff believes that consolidatin the three sites :.('/0'1 M2K, .(&.
M2K and .(&9 M2K; and maintainin them as a larer affordable housin site is critical in
order to meet our re3uired affordable housin obliation under redevelopment law,
-he only fundin source currently available to purchase .9'/0.('1 is the -areted 2and
Ac3uisition funds set0aside by the PAC from the recent bond issue in the Broadway/MacArthur/
San Pablo Redevelopment Pro+ect Area, -he funds will be paid bac* to the redevelopment area
with interest once a new affordable housin pro+ect for the site receives is funded,
Ac!ion Reque!ed o& !'e PAC
-he PAC needs to ma*e a motion reardin whether or not the PAC supports loanin
approAimately 516',''' of the -areted 2and Ac3uisition %unds to the C"#A $ousin
#ivision to retain ownership of .('/0.('1 M2K,
&