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HomeMy Public PortalAboutWhitepaper - Plaza, Anderson Pacific PropertyPlaza Parcel, Anderson Pacific Property Plaza Parcel, Anderson Pacific Property - 1 Common Name Plaza Parcel, Anderson Pacific Property APN 098-0289-019-00 Address Railroad Avenue Funding Source  City Affordable Housing Fees (F611) Type of Transaction Loan from City to former-RDA Principal Amount Expended Est. Share of the Anderson Pacific Property Total $920,315* *share of $9,203,149 book value in 2013 for the Anderson Pacific Property Use of Funds  Property Acquisition  Closing Costs City, and RDA Staff Reports April 25, 2005 – City approves a loan of up to $8,000,000, in Affordable Housing Fees from the City to Livermore Village LLC for Livermore Village LLC to acquire the Depot Shopping Center. (Resolution 2005-099) May 12, 2008 – City approves a Purchase and Sale Agreement for the City to acquire the Livermore Village parcel, project plans, and entitlements from Livermore Village I LLC for $2,100,000 in Affordable Housing Fees, and appropriating up to an additional $100,000 in Affordable Housing Fees for costs related to the purchase. (Resolution 2008-106) August 4, 2008 – City and former-RDA approve the transfer of the property from the City to the former-RDA and execution of a Cooperation and Repayment Agreement in the amount of $10,969,743. (Resolutions 2008-171, and RA 2008-12) Oversight Board Staff Reports June 6, 2012 – Oversight Board approves transfer of the property from the former-RDA to the City as a governmental purpose property. October 17, 2012 – Oversight Board confirms its approval on June 6, 2012 to transfer the property from the former-RDA to the City as governmental purpose property. (Resolution OB-003) June 5, 2013 – Oversight Board confirms its approval for the transfer of the property from the former-RDA to the City as a governmental purpose property for use in the development of affordable housing; and approving the Livermore Successor Agency’s Housing Asset Transfer Report filed with the California Department of Finance on August 1, 2013, to transfer the property to the City as a housing asset for use in the development of affordable housing. (Resolution OB-008) December 16, 2015 – Oversight Board approves final adjustments to the Livermore Successor Agency’s Long Range Property Management Plan to transfer this property as a housing asset. (Resolution OB-033) Plaza Parcel, Anderson Pacific Property Plaza Parcel, Anderson Pacific Property - 2 City, and RDA Staff Reports (cont.) January 9, 2012 – City elects to become the successor to the former-RDA’s housing assets and functions. (Resolution 2012-06) September 23, 2013 – Livermore Successor Agency approves Long Range Property Management Plan to use the property as plaza for the regional theater. (Resolution LSA 2013-02) December 14, 2015 – Livermore Successor Agency approves final adjustments to its Long Range Property Management Plan to revert the use the property to expand affordable housing and to develop the property into affordable rental housing. (Resolution LSA 2015-02) City Resolutions 2005-099 2008-106 2008-171 2012-06 RDA Resolutions RA 2008-12 LSA Resolutions LSA 2013-02 LSA 2015-02 Oversight Board Resolutions OB-003 OB-008 OB-033 Agreements August 4, 2008 Cooperation and Repayment Agreement  “The Agency agrees to reimburse to the City the cost of the property in the amount of $10,969.743. This amount includes $8,000,000 originally loaned for the acquisition plus $3.5% interest ($869,743) for three years that would have been earned on the funds in the Affordable Housing Fund, plus the $2,100,000 in additional principal for acquiring the site from Livermore Village, LLC.”  “It is anticipated that the Agency will enter into a Disposition and Development Agreement with a developer which will construct a mixed-use development consisting of retail space, a variety of housing types, including live-work and flex units, and potentially a regional performing arts theater.” Other Documents December 28, 2015 Department of Finance Approval of the Long Range Property Management Plan “Pursuant to [California Health & Safety Code] section 34191.3(a) the approved [Long Range Property Management Plan] shall govern, and supersede all other provisions relating to, the disposition and use of the real property assets of the former redevelopment agency.” Note: The California Department of Finance did not recognize the Disposition and Development Agreement for the development of this property as a regional performing arts theater, and that agreement was formally terminated. Plaza Parcel, Anderson Pacific Property Plaza Parcel, Anderson Pacific Property - 3 Following the termination of the Disposition and Development Agreement for the regional performing arts theater, the California Department of Finance recognized that the property reverted back to its affordable housing status and authorized the transfer of this property to the City as a housing asset in light of the City Affordable Housing Fees that were used to acquire the property. EXCERPTS REFLECTING PROPOSED USE Proposed Use – City Affordable Housing Fees Loan to Livermore Village LLC (April 25, 2005) “The Depot Shopping Center, located at 2009-2111 Railroad Avenue, is identified in the Downtown Specific Plan as a key redevelopment project. Jim Anderson of Anderson Pacific has requested $8,000,000 in short-term financing from the City to purchase the site. If acquired by Jim Anderson of Livermore Village, LLC, this site will be developed into a mixture of housing, parking, public open space, artist workspace, and retail uses.” “The cost of the site is $9 million. Livermore Village, LLC will provide a $1 million deposit and is requesting an $8 million short-term acquisition loan from Housing In-Lieu Funds to complete the purchase.” “During the term of this loan, the City will seek out additional low-cost financing from the State and private banks. This money would substituted for City funds with any difference in interest rates going towards project amenities, increases in affordability, and/or the City’s In-Lieu Fund.” “Per the Downtown Specific Plan, the proposed project will offer a range of ownership housing types, including condominiums, townhouses, artist studios, and live/work lofts.” “The City’s financial involvement in the development will ensure the City’s goals for the project, including affordability levels, are maximized.” Proposed Use – City Acquisition (May 12, 2008) “Staff recommends the City Council adopt a resolution allowing the City Manager to enter into a Purchase and Sale Agreement between James Anderson of Livermore Village I, LLC and the City of Livermore to transfer ownership of the Livermore Village Project at 2093 Railroad Avenue from Anderson to the City of Livermore.” “Anderson Pacific has developed plans and designs for a 281 unit attached housing development with an affordable housing component, an artist community center and approximately 7,000 square feet of retail and office space.” “Market conditions have changed dramatically since the project received its entitlements. Sales of attached housing units have declined throughout the nation and specifically in the Bay Area. Due mainly to this downturn in the market, Anderson Pacific has been unable to secure construction financing for the Livermore Village Project.” ‘Without funds for construction, Anderson Pacific has been unable to proceed with the development of the project and thus is unable to repay the outstanding City loan by its due date. As a result, on February 27, 2008, Anderson Pacific requested that in lieu of default of the City note, the City purchase his remaining interest in the site and take ownership of the property, project plans and entitlement. If approved, the City would purchase the remaining ownership interests in the project for $2,100,000 in lieu of it going into foreclosure. As holder of the project’s first note, the City would assume the $8,000,000 note, along with the $2,237,812 in accrued interest. An additional $100,000 in funds is being requested to cover City costs of transferring the project (title insurance, escrow and outstanding property taxes).” Plaza Parcel, Anderson Pacific Property Plaza Parcel, Anderson Pacific Property - 4 “Upon transfer of the site to the City, staff will prepare a request for proposals that will be used to identify potential new developers. Priority will be given to those developers with the best overall experience in developing a project that will meet the goals of the Downtown Specific Plan, would return the highest amount of tax increment as quickly as possible, and would be able to pay off the outstanding City loans and move forward with construction of the project.” Proposed Use - Transfer of Property from City to the former-RDA (August 4, 2008) “It is anticipated that the Redevelopment Agency will enter into a Disposition and Development Agreement with a new developer which will construct a mixed-use development consisting of retail space, a variety of housing types, including live-work and flex units, and potentially a regional performing arts theater.” Proposed Use – Approving Transfer to the City as a Governmental Purpose Property (June 6, 2012) “This site consists of approximately 0.5 acres that was originally purchased as part of the Livermore Village project using non-redevelopment funds. No tax increment money was used in the acquisition of the site. The site is planned to be developed into a public plaza consisting of green space, fountains, and public walkways. Designs for the plaza have been developed and are entitled. In addition, the project has been awarded $2,500,000 from the Metropolitan Transportation Commission for its design and construction. Approximately $150,000 from non-redevelopment sources have already been spent on the development of this parcel. This parcel is currently in the name of the RDA and if approved will be transferred to the City.” Proposed Use - Long Range Property Management Plan (September 23, 2013) “Under the Long Range Property Management Plan goals the site should continue to be developed by LVPAC into a Plaza under the terms and conditions of the DDA entered into by the City, the Former- RDA, and LVPAC. If the site is no longer needed for the development of a plaza it should go back to its original purpose of developing the site into a mixed-use, high density residential project.” “Per the LRPMP and the goals established for the downtown under the Downtown Specific Plan and the RDA 5 Year Plan, the site will be transferred from the LSA to the City where by it will be combined with the adjacent site for use in the development of a Regional Performing Arts Theater. If a theater is not developed on the site, the parcel will revert back to a housing site for use in the development of a high density, mixed-income, residential project.” Proposed Use - Long Range Property Management Plan (December 14, 2015) “The Long Range Property Management goal for this site is for the site to be recombined with the Livermore Village site and revert back to its original purpose of development into a mixed-use, high density residential project.” “Under the dissolution legislation, all properties purchased by the former-RDA for use in the development of affordable housing shall remain with the identified housing successor agency in order to be developed into affordable housing. Because this property was originally acquired using local housing trust funds provided by the City, this property is a Housing Asset and should be transferred to the City, as the Housing Successor Agency, for development of affordable housing as originally proposed at the time of acquisition. This site did not receive funding from the former-RDA housing set aside funds. Per the Long Range Property Management Plan goals and the goals established for the downtown under the Downtown Specific Plan and the RDA 5 Year Plan, the site will be transferred to the City where by it will be combined with the adjacent sites for use in the development of a high density mixed income residential project.”