PROPOSED METROWALK AMENDMENT #12
September 15, 2023
9/15/2023 12:12 PM
Issue Original DDA (2002) Proposed Amendment (~Oct. 2023) New Benefits to City & Community
Land Conveyance BART to Agency (or to Developer
if directed). City owns Subarea 1.
BART conveys Subareas 2 and 3 to City.
BART retains ability to install wall near
electrical substation; BART obtains access
easement.
Facilitates Surplus Land Act
(SLA) compliance; future
Request for Proposal (RFP)
process provides flexibility.
Land Disposition
Method
Sale of all land to Developer. 99-year Ground Lease for Subarea 1 to Pacific West Communities.
City to issue RFP for future Subareas 2 and 3
phases.
Ground lease provides 99-year
control and retains City
ownership of the site to
maintain affordability.
Land Purchase Price Developer signs no-interest
forgivable note for $900,655.
Ground lease at $1 per year, increasing to
equivalent of 50 percent of annual residual
receipts when Development Loan is repaid.
Increased revenue.
Scope Cultural arts facility, retail,
townhomes over 3 phases with 50
percent sold to moderate-income.
Subarea 1 - 150 affordable units. City and
Developer to use best efforts to secure rent
subsidy and social services funding for
coordinated entry units.
Subareas 2 and 3 - 370 units including at
least 59 affordable units to meet aggregate
SLA requirements. Scope to be determined
by future RFP process.
Change in scope is consistent
with prior proposed
amendment; RFP process
provides flexibility to assure
best development scope, most
appropriate affordable housing
income targeting Subareas 2
and 3 developments.
PROPOSED METROWALK AMENDMENT #12
September 15, 2023
9/15/2023 12:12 PM
Issue Original DDA (2002) Proposed Amendment (~Oct. 2023) New Benefits to City & Community
Successor Agency
Development Loan
$3.8 million in Recognized
Obligation Payment Schedule
(ROPS) funding, allocated among
Subareas.
No interest, unsecured, forgivable
loan.
$2.187 million for subarea 1; potential for up
to additional $1.67 million grant for
supportive housing subsidy reserve.
Residual receipts loan secured by leasehold
deed of trust, 3 percent annual interest.
Completes the Recognized
Obligation Payment Schedule
(ROPS) obligation earlier if all
funds distributed for Subarea 1;
facilitates provision of
supportive housing.
Increased revenue, security
interest. Revenue is distributed
to taxing entities (including
City).
Assessment district
Agency and Developer to ask City
to form assessment district for
parks, etc.
Omitted, consistent with prior proposed
amendment.
Successor Agency
Homebuyer Loans
$2.5 million; homebuyers pay 1
percent of sales price to Agency
over 20 year period
Omitted, consistent with prior proposed
amendment.
ROPS reduction yields more
funds for taxing entities
(including City); repayments
would have required Successor
Agency monitoring over 20
year term and would have been
made to Successor Agency and
distributed to taxing entities.
Additional payment by
Developer
Developer to pay 75 percent of net
sale proceeds within 60 days
following COE for sale of last
phase 2 unit.
Omitted, consistent with prior proposed
amendment.
Payment would have been made
to Successor Agency and
distributed to taxing entities.