November 18, 2009 > Mid-Peninsula Housing financial plan approved
Mid-Peninsula Housing financial plan approved
By Shavon Walker
Union City Council approved the Mid-Peninsula Housing financial plan via the redevelopment agency (RDA) on November 10.
The RDA entered into a disposition and development agreement (DDA) with Mid-Peninsula Housing Coalition to build mixed-use, affordable housing. One of the DDA's conditions was to create a financial plan for the project and gain approval from the RDA to begin construction.
Total cost of the project is $66.5M. Secured funding has been in the form of bank loans, tax credit investor proceeds, RDA loans and the RDA's purchase of 75 parking stalls for public use. Nevertheless, there is still a $7M funding gap. Additional monies will come from construction cost savings and a deferred fee for Mid-Peninsula.
The RDA Board also recommends a loan to Mid-Peninsula be increased to $7M. This would fiscally impact several projects in the five-year capital plan by delaying them. Such projects include building Loop Road in the Station District and a contribution for the new library. In total, $38.4M of projects would be put on hold.
However, the RDA is appealing a ruling requiring the agency to pay $9.3M to the Supplemental Education Revenue Augmentation Fund. If the RDA wins, the money set aside for the fee can fund some of these projects. In turn, this will help generate more income, which will help close the gap.
The newest parking plan has a ratio of 1 space per unit for a total of 157 parking spaces. Ten more would be included for tenants of the commercial space. Mid-Peninsula Housing residents with more than one car, retail tenants and retail employees, would pay a quarterly permit fee of $120. Mid-Peninsula residents and tenants who leave their vehicles on 11th Street and Cheeves Way would pay an hourly parking fee.
The city and building trades are attempting to negotiate employment opportunities for 25 at-risk Union City youth. They would be selected through the city's Youth & Family Services Program which will help screen likely candidates and provide support services during the construction project.
Barry Swenson, general contractor for the Intermodal Station District project, is willing to participate in the Youth & Family Services Program. An update will be given on the negotiations at a later date. The fiscal impact will be analyzed once negotiations are complete.