HomeMy WebLinkAboutAgenda Report - July 16, 1986 (59)CITY CDUNCIL MELTING
JULY 16, 1986
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RES. NO. 86-108 Following introduction of the matter by City Manager
Peterson, Cammnity Development Director Schroeder advised
CC76 the Council that the renovation of the Hotel Lodi is a
0C=55 $3,555,000 public-private partnership project, utilizing
$110,000 of Lodi's CDBG funds allocated for F.Y. 1986-87.
Other funding sources include State HCD and conventional
loans, as well as limited partnership investment.
However, proposed changes in tax law particularly
investment tax credits (ITC), may reduce the
attractiveness of the syndication to prispective investors.
Further, Mr. Schroeder provided the following information
pertaining to the Housing Development Grant Program:
1. Additional loans fran the federal government are
available which will serve to maintain the desired
return on the limited partners investment.
2. HUD is presently accepting applications for grants
under HUD's Housing Development Grant Programs. This
grant application must be initiated through the local
unit of government (City of Lodi).
3. Grant funds awarded under the program are to be used to
support the construction of substantial rehabilitation
of residential rental, cooperative, or mutual housing
in wfiich at least 20 percent of the units will be
occupied by lower income families.
4. HUD indicated the program's current funding level is 79
million, and will not be affected by congressional
budget reductions.
5. Applicatio., selections will be made and funds are to be
obligated by September 30, 1936. The application
deadline is July 21, 1986. The proposed -grant amc1nt
to be requested by the City of Lodi is $715,000.
A lengthy discussion followed with questions being directed
::o Staff .
Mr. harry Redman, 325 East Locust Street, Lodi, addressed
the Council asking if any input regarding this proposed
project had been received from the senior citizens of this
community.
Mr. Charles Duncan, 1214 West Lodi Avenue, Lodi, also
indicated t- it he felt that senior citizens of this
community shuald have input in the matter. Mr. Dunc,n
further stated that he felt the project was doomed for
failure from the beginning and urged the Council not to act
of the matter at this meeting.
Further, questions were directed by the Council to those
who had addressed the Council on the matter and to Staff.
On motion of Council Member Pinkerton, Olson second,
Council adopted Resolution.No. 86-108 authorizing the City
of Lodi to apply for a Housing Development Grant to be made
available exclusively for the Hotel Lodi Renovation
project. The motion carried by the following vote:
Ayes: Council Members - Olson, Pinkerton, S.dder,
and Reid (Mayor)
Noes: Council kkmbers - Hinchron
Absent: Council Mknbers - None
Further, on motion of Mayor Reid, Olson second, Council set
a Public Hearing at 7:30 p.m., August 6, 1986, to receive
public input regarding the proposed Hotel Lodi Renovation
Project. The motion carried by the following vote:
Ayes: Council Members - Olson, Pinkerton, Snider,
and Reid (Mayor)
Noes: Council Members - Hi.nchman