CITY OF CRESCENT CITY
Mayor Isaiah Wright
Council Member Raymond Altman
MINUTES
SPECIAL CITY COUNCIL MEETING
WASTEWATER TREATMENT PLANT CONFERENCE ROOM
210 BATTERY STREET
CRESCENT CITY, CA 95531
MONDAY OCTOBER 30, 2023 6:30 P.M.
OPEN SESSION
Call to order Mayor Wright called the meeting to order at 6:31 p.m.
Roll call Council Members present: Council Member Ray Altman, Council Member Kelly Schellong, Mayor Pro Tem Blake Inscore, and Mayor Isaiah Wright Council Member absent at roll call: Council Member Jason Greenough (arrived at 6:32 during the consent calendar motion)
Staff members present: City Manager Eric Wier, City Attorney Martha Rice, City Clerk/Administrative Analyst Robin Altman, Public Works Director Dave Yeager, Human Resources Manager Sunny Gonzales (via Zoom), Housing Authority Executive Director Megan Miller (via Zoom), Finance Director Linda Leaver, and Police Chief Richard Griffin Pledge of Allegiance led by Mayor Wright
CONSENT CALENDAR
1. Purchase of Two F-450 Utility Trucks
• Recommendation: Approve the purchase of two F-450 Public Works utility trucks with utility beds and cranes and authorize the City Manager to sign all documents necessary for the purchase and transfer of the vehicles
2. Budget Amendment to 20-CDBG-12012 Family Resource Center Food Pantry Services Subrecipient and Grant Agreement
• Recommendation: Approve and authorize the City Manager to execute a contract amendment between the City of Crescent City and the California Department of Housing and Community Development for grant number 20-CDBG-12012 to transfer the remaining general administration funds to the project budget • Approve and authorize the City Manager to execute, contingent upon execution of the amendment to the HCD grant agreement, Amendment No. 2 to the Subrecipient Agreement between the City of Crescent City and the Family Resource Center of the Redwoods for Food Pantry Services to increase the project budget There were no comments from the public.
Council Member Schellong asked for confirmation that the trucks were in fact gasoline powered, not diesel; Director Yeager stated that they were gasoline trucks. 1 | Page
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On a motion by Mayor Pro Tem Inscore, seconded by Council Member Altman, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City adopted the consent calendar consisting of items 1-2 as presented.
NEW BUSINESS
3. Award of LMIHAF Dollars as a Loan for Affordable Housing Project Recommendation: Hear staff report
. Technical questions from the Council
• Receive public comment
• Further Council discussion
• Approve the award of a $300,000 loan from the Low - and Moderate-Income Housing Fund to GreenShoots Communities, LLC/GS Valhalla, LP as detailed in the draft award letter and authorize the City Manager to sign said award letter City Attorney Rice reported to the Council that this project came to fruition from the 2012 Redevelopment Agency (RDA) dissolution, the housing assets and affordable housing functions vere transferred to the City. Earlier this year in the Spring, the City issued an RFP for use o non-competitive Permanent Local Housing Allocation Program (PLHA) funds. The City received two responses from viable affordable housing projects. Unfortunately, the City was subsequently notified that it would not receive the PLA funds after all due to the City's Housing Element not being in substantial compliance. Therefore, no PLHA funds were awarded to either project. At this point, City staff began discussing the possibility of utilizing LMIHF dollars in place of the PLHA funds. A Notice of Funding Availability for LMIHF was developed, reviewed and advertised. At the close of the application period, the City received two applications. One was deemed incomplete and the other was reviewed and scored by staff. This loan would be given to GreenShoots Communities for $300k and will be a 20-year loan at 3.0% annual simple interest, with payments due from 50% of the residual receipts. GreenShoots is in the process of acquiring Valhalla Townhomes (911 Pacific) from Synergy Valhalla, LL/Synergy Development Corporation. City Attorney Rice went over how many units there are and the household income sectioning. This project is much like the DANCO project wherein it has been awarded California State tax exempt bonds, federal low-income housing tax credits, and California state certificated low-income housing tax credits. City Attorney Rice stated that it is anticipated that the loan will be paid in full by Spring of 2024. Mayor Pro Tem Inscore asked if funds were awarded, if it is mandatory they pay the loan off once they are received; City Attorney Rice answered in the affirmative. City Manager Wier stated that there is also an option for the City to acquire the property and to work with a developer. Raymond Junior, of GreenShoots, spoke to the Council and gave his background as an affordable housing developer. He gave a description on the project and stated he will be doing a $62k a door renovation on the property, which comes to $3.5million. He saic that this will be a mix of affordable and workforce housing. Council Member Schellong asked what the timeline for the project was; Mr. Junior stated it would be either the end of November to early December 2024. Bill Rice of Synergy stated that the two housing projects currently underway will knock the Housing Element out of the park.
There were no comments from the public.
On a motion by Council Member Schellong, seconded by Mayor Pro Tem Inscore, and carried unanimously on a 5-0 polled vote, the City Council of the City of Crescent City approved the awara of a $300,000 loan from the Low - and - Moderate - Income Housing Fund to GreenShoots Communities, LLC/GS Valhalla, LP as detailed in the draft award letter and authorize the City Manager to sign said award letter.
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CITY COUNCIL ITEMS
> Legislative Matters - None
> CoMe Report and Cy Con Directives - City Manager Wier reported to the Council that the DANCO project is working through the process and is close to get the tax credit award. City staff had a good meeting with HCD staff and the Housing Element approval will be done by November 13th.
ADJOURNMENT
There being no further business to come before the Council, Mayor Wright adjourned the meeting at 6:54 p.m. to the regular meeting of the City Council of the City of Crescent City on Monday, November 6, 2023, at 6:00 p.m. at the Flynn Center, 981 H Street, Crescent City, CA 95531.
ATTEST:
Robin Altman
City Clerk/Administrative Analyst
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