DATE: October 17, 2023
TO: Paul Buddenhagen, City Manager
FROM: Chadrick Smalley, Community Development Director
SUBJECT: Resolution Of The City Council Of The City Of Emeryville Appropriating $734,329 From The Affordable Housing Impact Fee Fund (Fund 239) To The Operating Budget For Fiscal Year 2023-2024 For Loans To Developers (Account 239-88120) For The Nellie Hannon Gateway Project
RECOMMENDATION
Staff recommends that the City Council adopt the above-entitled resolution appropriating $734,329 from the Affordable Housing Impact Fee Fund (Fund No. 239) to the Operating Budget for Fiscal Year 2023-2024 to support the previously-approved loan for the Nellie Hannon Gateway Project.
BACKGROUND
On March 2, 2021, the City Council adopted Resolution No. 21-13 approving the Affordable Housing Bond Administration and Expenditure Plan (the “Expenditure Plan”). The Expenditure Plan guides the City’s allocation of Measure C General Obligation Affordable Housing Bond proceeds as well as additional resources available to the City to support affordable housing. The Expenditure Plan includes the City Council’s commitment of $14,747,486 to the Nellie Hannon Gateway Project, located at 3600, 3610 and 3620 San Pablo Avenue (the “Project”), by programming $5,920,760 from the Low and Moderate Income Housing Fund (Fund 298), $4,562,506 from the Affordable Housing Fund (Fund 299), $734,329 from the Affordable Housing Impact Fund (Fund 239), and $3,529,891 from Measure C bond proceeds to the Project.
On April 18, 2023, the City Council adopted Resolution No. 23-49 authorizing the City Manager to execute an amended and restated development loan agreement in an amount not to exceed $16,747,486 to support the development of the Project, and Resolution No. 23-48 appropriating funding from the Low and Moderate Income Housing Fund (Fund 298), the Affordable Housing Fund (Fund 299), and the Affordable Housing Impact Fee Fund (Fund 239) to the Fiscal Year 2022-2023 operating budget to allow for execution of the amended and restated development loan agreement in advance of the receipt of Measure C bond proceeds.
On June 6, 2023, the City Council adopted the Operating Budget For Fiscal Years 2023-2024 and 2024-2025.
DISCUSSION
The Affordable Housing Impact Fee Funds (Fund 239) committed to the 3600 San Pablo Avenue Project totaled $734,329 and were budgeted for Fiscal Year 2023 pursuant to Resolution No. 23-28 but were not expended in Fiscal Year 2023. Due to an oversight, these unexpended funds did not get re-budgeted in Fiscal Year 2023-2024. A budget amendment is necessary to appropriate $734,329 to the Fiscal Year 2024 Operating Budget for the Project.
Fund
Description
Operating Expenses
(Adopted)
Operating Expenses
(Proposed)
239
Affordable Housing Impact Fees
$0
$734,329
FISCAL IMPACT
The recommended action will appropriate $734,329 in available fund balance from the Affordable Housing Impact Fee Fund (Fund 239) to the Fiscal Year 2023-2024 Operating Budget for Loans to Developers (Account 239-88120) for expenditure in support of the Nellie Hannon Gateway Project as originally contemplated and approved by the City Council in April 2023. The proposed budget appropriation is required for the City to fulfill its commitments under the Amended and Restated Loan Agreement for the Project and is consistent with the Expenditure Plan.
Staff Communication with the Public
None.
CONFLICT OF INTEREST
None.
Conclusion
Staff recommends that the City Council approve the attached resolution authorizing the aforementioned modification of the Fiscal Year 2023-2024 Operating Budget.
PREPARED BY: Valerie Bernardo, Community & Economic Development Coordinator II Approved and Forwarded to the
City Council of the City of Emeryville
Paul Buddenhagen, City Manager
Attachments
Draft Resolution
Housing Impact Fee Fund Appropriation – Nellie Hannon Gateway City Council Meeting | October 17, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM