October 27, 2006 Agenda Item No. 4 ( b )
118-67506-002 Meeting of November 7, 2006
MEMORANDUM
TO: Agency Commissioners
FROM: Marcia Rosen
Executive Director
SUBJECT: Authorizing a Fourth Amendment to the Personal Services Contract with Elizabeth H. Haughey, a sole proprietor, to increase the contract in an amount not to exceed $17,500, for a total aggregate amount not to exceed $63,500, and to extend the contract term to June 30, 2007, to provide services in connection with the Single Room Occupancy Hotel Rehabilitation Loan Program, South of Market Redevelopment Project Area.
EXECUTIVE SUMMARY
On February 25, 2003, the Commission authorized the Single Room Occupancy (“SRO”) Hotel Rehabilitation Loan Program (“Program”). The Program is intended to improve the quality of life of tenants living in SROs along the Sixth Street corridor. Under the Program, the Agency provides below market rate loans to owners of SRO hotels to subsidize physical improvements of properties on the Sixth Street corridor in exchange for affordability restrictions. The Program extends the useful life of SROs, prevents displacement and gentrification through long-term affordability requirements, and alleviates blight in the South of Market Earthquake Recovery Redevelopment Project Area (“Project Area”). When the Program was authorized, staff recommended contracting a third party consultant to assist with the implementation and administration of the Program. On February 15, 2004, the Agency entered into a Personal Services Contract with Elizabeth H. Haughey to finalize and implement underwriting, documentation and monitoring tools for this new Program.
Demand for Program loans has been lower than anticipated (see attached Informational Memorandum for the meeting of September 20, 2005.) In an effort to determine the demand for the Program, staff recommended increased outreach to the hotel owners, the potential borrowers. To expand outreach, the Mayor’s Office of Community Development (“MOCD”) has engaged Urban Solutions as part of a larger contract terminating on June 30, 2007. In order to maintain Ms. Haughey’s underwriting services for the Program during the same period as the Urban Solutions contract, staff recommends extending Ms. Haughey’s contract through June 30, 2007, for an amount not to exceed $17,500. Prior to June 30, 2007, staff will assess the level of activity and interest from hotel owners to determine whether or not to continue the Program. If the Program is continued at that time, staff will recommend issuing an RFP for the underwriting services currently being provided by Ms. Haughey.
Staff recommends approving a Fourth Amendment to the Personal Services Contract with Elizabeth H. Haughey, in an amount not to exceed $17,500, for a cumulative total not to exceed $63,500, to provide services in connection with the Single Room Occupancy Hotel Rehabilitation Loan Program, South of Market Redevelopment Project Area.
DISCUSSION
SRO Hotel Rehabilitation Loan Program
One of the Agency’s goals is to preserve and improve affordable housing on Sixth Street. In spite of the Agency’s housing activities on Sixth Street, many privately owned buildings still need physical improvement. Building owners and the South of Market Project Area Committee (“SOMPAC”) requested financial assistance from the Agency to make physical improvements to SROs along the corridor, and the Agency responded by offering the Program. In a collaborative process with the hotel owners, SOMPAC and other stakeholders, staff developed the Program intended to be used by as many hotel owners as possible. The owner of a hotel may borrow up to $100,000 for certain improvements, as defined by the Program, for a term of between 15 and 25 years in exchange for affordability restrictions for the same term. The Program complements other Agency efforts to revitalize the Sixth Street corridor, and, specifically, will improve the quality of life of Sixth Street SRO hotel residents.
To date, four Program loans have been approved:
- Sharon Hotel, 226 Sixth Street for up to $30,000 in electrical upgrades;
- Shree Ganeshai Hotel, 226 Sixth Street for $25,200 for electrical upgrades;
- Alder Hotel, 169 Sixth Street for $100,000 in electrical upgrades; and
- Hillsdale Hotel, 57 Sixth Street for $100,000 for elevator rehabilitation.
During the Program’s development with the hotel owners and the SOMPAC, staff had anticipated greater demand for the Program loans because of the high level of involvement from the hotel owners during the Program’s development. Many of the Sixth Street hotel owners supported such a Program and subsequently submitted applications. However, completing the application process and closing loans has proven difficult for many of the owners since the Program was adopted.
Staff recently reviewed the Program to determine how to increase demand for Program loans. Based upon that review, staff sought to expand outreach to hotel owners. To assist in expanding outreach services, the Mayor’s Office of Community Development (“MOCD” has engaged Urban Solutions through a Letter Agreement, which will terminate on June 30, 2007. The outreach services are one component of a larger contract MOCD has with Urban Solutions. Urban Solutions has started working closely with staff and Ms. Haughey. Urban Solutions has a proven track record and established relationships with business and property owners on Sixth Street.
Personal Services Contract
During the Program’s development, it was anticipated that a consultant would be required to provide start-up, underwriting and administrative services for the Program’s implementation. After a limited Request for Proposal process it was determined that Ms. Haughey’s experience working with loan programs, including those targeted to SRO hotel owners, and skill set offered the best services at the start-up phase.
On February 14, 2004, the Agency entered into a Personal Services Contract (“Contract”) for a three year term for an amount not to exceed $46,000. Ms. Haughey has met or exceeded the provisions of the Contract and has delivered a variety of documents that now serve as Program templates, ensuring consistency throughout the Program’s administration. Ms. Haughey also provides ongoing services such as loan underwriting, limited technical assistance, and annual monitoring of each loan after its first year. The Agency will provide default monitoring of each loan after the first year. Since the Program was new and the extent of Program administration and underwriting was somewhat uncertain, Ms. Haughey’s contract was subsequently amended to reflect scope of services revisions, but the cumulative amount was not changed. To make her contract term consistent with the term of the Urban Solutions contract and to provide uninterrupted underwriting services to the Program, staff recommends extending Ms. Haughey’s contract through June 30, 2007.
The Agency’s Contract Compliance division was in agreement with the selection of Ms. Haughey and supports the proposed Fourth Amendment. Prior to the expiration of both the Urban Solution’s and Ms. Haughey’s contract, staff will assess interest in the Program, and recommend its continuation or its termination. If the Program is continued, a Request For Proposals will issued for the underwriting services Ms. Haughey is currently providing.
Staff recommends approving a Fourth Amendment to the Personal Services Contract with Elizabeth H. Haughey, in an amount not to exceed $17,500, for a cumulative total not to exceed $63,500, to provide services in connection with the Single Room Occupancy Hotel Rehabilitation Loan Program, South of Market Redevelopment Project Area
(Originated by Jeff White, Development Specialist)
Marcia Rosen
Executive Director
Attachment: Informational Memorandum for the meeting of September 20, 2005
SRO Rehabilitation Loan Program: Description and Guidelines May 2005
RESOLUTION NO. 142-2006
AUTHORIZING A FOURTH AMENDMENT TO THE PERSONAL SERVICES CONTRACT WITH ELIZABETH H. HAUGHEY, A SOLE PROPRIETOR, TO INCREASE THE CONTRACT IN AN AMOUNT NOT TO EXCEED $17,500, FOR A TOTAL AGGREGATE AMOUNT NOT TO EXCEED $63,500, AND TO EXTEND THE CONTRACT TERM TO JUNE 30, 2007, TO PROVIDE SERVICES IN CONNECTION WITH THE SINGLE ROOM OCCUPANCY HOTEL REHABILITATION LOAN PROGRAM; SOUTH OF MARKET REDEVELOPMENT PROJECT AREA
BASIS FOR RESOLUTION
1. The South of Market Earthquake Recovery Redevelopment Plan was adopted in 1990 to address the damage from the 1989 Loma Prieta earthquake and to develop and preserve affordable and market rate housing.
2. To accomplish the goal of preserving affordable housing, the Redevelopment Agency of the City and County of San Francisco’s (“Agency”) staff worked with the City Attorney’s Office, the South of Market Project Area Committee (“SOMPAC”), the Department of Building Inspection, the Single Room Occupancy (“SRO”) Task Force, the Indian Hotel Owners Association, the Tenderloin Housing Clinic, tenant representatives, and the San Francisco Rent Board to design a loan program to provide below market rate loans to owners of hotels to subsidize physical improvements of properties on the Sixth Street corridor in exchange for affordability restrictions.
3. On February 25, 2003, the Agency Commission adopted the program known as the SRO Hotel Rehabilitation Loan Program (“Program”) by Resolution 28-2003. The Program’s goals are to improve tenant quality of life, extend the useful life of SROs, alleviate blight, and prevent displacement and gentrification through long-term affordability (“Program Goals”).
4. The Program is part of the Agency’s affordable housing efforts on Sixth Street
located within the South of Market Redevelopment Project Area (“Project Area”). The Program’s budget totals $1.9 million and includes: $200,000 from the Agency’s 2002-2003 Housing Budget; $500,000 from the Agency’s 2003-2004 Housing Budget; $700,000 from the Agency’s 2004-2005 Housing Budget; and $500,000 from the Agency’s 2005-2006 Housing Budget.
- On February 15, 2004, the Agency entered into a Personal Services Contract (the “Contract”) with Elizabeth H. Haughey for a three-year term in an amount not to exceed $46,000.
- Due to lower than expected demand since the Program’s adoption, Urban Solutions is now providing expanded outreach services to Sixth Street hotel owners through June 30, 2007 to help publicize and potentially increase the use of the Program.
- In order to match Urban Solutions contract term and to continue to provide uninterrupted underwriting services from Elizabeth H. Haughey, it is necessary, and consistent with the Agency's affordable housing program for the Project Area and the Programs Goals, to amend the Contract in an amount not to exceed $17,500, for a total aggregate amount not to exceed $63,500, and to extend the Contract term to June 30, 2007.
RESOLUTION
Accordingly, it is resolved by the Redevelopment Agency of the City
and County of San Francisco that the Executive Director is authorized to execute a
Fourth Amendment to the Personal Services Contract with Elizabeth H. Haughey, a
sole proprietor, in an amount not to exceed $17,500, for a total aggregate amount not
to exceed $63,500, and to extend the term of the Contract to June 30, 2007, to provide
services in connection with the Single Room Occupancy Hotel Rehabilitation Loan
Program, for the South of Market Redevelopment Project Area, substantially in the
form lodged with the Agency General Counsel.
APPROVED AS TO FORM:
118-66906-002 Agenda Item No. 4 ( c, d, e, f )
October 25, 2006 Meeting of November 7, 2006
MEMORANDUM
TO: Agency Commissioners
FROM: Marcia Rosen, Executive Director
SUBJECT: Design Workshop for Mercy Housing California, a California nonprofit public benefit corporation, and San Francisco Medical Center Outpatient Improvement Program, Inc., (commonly known as the South of Market Health Center), a California nonprofit public benefit corporation, for 49 very low income family rental units and a new medical clinic at 227-255 Seventh Street; South of Market Redevelopment Project Area.
Authorizing a Second Amendment to a Tax Increment Loan Agreement with Mercy Housing California, a California nonprofit public benefit corporation, to increase the loan amount by $931,380 for a total aggregate amount not to exceed $6,206, 894, for the predevelopment, and construction of approximately 49 very low income family rental units at 227-255 Seventh Street; South of Market Redevelopment Project Area.
Authorizing a Second Amendment to a tax increment Grant Agreement with San Francisco Medical Center Outpatient Improvement Programs, Inc. (commonly known as the South of Market Health Center), a California nonprofit public benefit corporation, to increase the predevelopment grant amount by $588,061 for additional predevelopment expenses, for a total aggregate amount not to exceed $2,008,978, and to extend the contract period from June 30, 2005 to December 31, 2007, for the construction of a health clinic facility at 227-255 Seventh Street; South of Market Redevelopment Project Area.
Approving the naming of a very low income family rental and medical clinic development at 227-255 Seventh Street in honor of Ms. Elouise Westbrook, a long-time community activist; South of Market Redevelopment Project Area.
EXECUTIVE SUMMARY
On March 18, 2003 the Commission approved a loan, in an amount not to exceed $5,275,414 (the “Loan”), to Mercy Housing California (“MHC” or “Borrower”) and a grant, in an amount not to exceed $1,420,917 (the “Grant”), to the San Francisco Medical Center Outpatient Improvement Programs, Inc., commonly known as the South of Market Health Center
(“SOMHC”). These funds were committed for the acquisition and predevelopment costs of an affordable family housing development with a ground floor 20,000 square foot health clinic (the “Project”) at 227-255 Seventh Street (the “Site” or “Property”) on the western end of the South of Market Redevelopment Project Area. Since the acquisition of the Site, MHC and SOMHC (the “Partnership”) have been working to refine the development concept for the Project and is requesting additional loan and grant funds to pay for the remaining predevelopment costs that will be incurred prior to construction of the Project. Staff is also presenting a workshop on the design of the Project so the Commission can provide comments to the development team. The Commission’s comments will be forwarded to the Planning Commission which will vote on whether to entitle the Project in early 2007. The Partnership has requested that the Project be named Westbrook Plaza, in honor of Elouise Westbrook, one of the original founders of the South of Market Health Center and life long advocate of healthcare services for low income residents of San Francisco.
Staff recommends authorization of a Second Amendment to the Tax Increment Loan Agreement with Mercy Housing California to increase the loan amount by $931,380 for a total aggregate amount not to exceed $6,206,894, for additional predevelopment costs associated with the development of 49 very low income family rental units at 227-255 Seventh Street; South of Market Redevelopment Project Area.
Staff recommends authorization of a Second Amendment to the Grant Agreement with San Francisco Medical Center Outpatient Improvement Program, Inc., a California nonprofit public benefit corporation, (commonly known as South of Market Health Center), to extend the contract period from June 30, 2005 to December 31, 2007, and to increase the predevelopment grant amount by $588,061 for a total aggregate amount not to exceed $2,008,978 for additional predevelopment costs associated with the construction of 20,000 square foot health clinic at 227-255 Seventh Street, South of Market Redevelopment Project Area.
Staff recommends approval of the naming of the mixed-use development at 227-255 Seventh Street as “Westbrook Plaza” in honor of Elouise Westbrook; South of Market Redevelopment Project Area.
Background
On March 18, 2003 the Commission authorized a loan agreement in an amount not to exceed $5,275,414 (the “Loan”), to Mercy Housing California (“MHC”) and a grant agreement in an amount not to exceed $1,420,917 (the “Grant”), to the San Francisco Medical Center Outpatient Improvement Programs, Inc., commonly known as the South of Market Health Center, (“SOMHC”, or “Grantee” or the “Health Center”). These funds were authorized to pay for acquisition and predevelopment expenses related to developing a very low income family rental housing development and a new health clinic (the “Project”) at 227-225 Seventh Street (the “Site”), between Howard and Folsom Streets in the South of Market Redevelopment Project Area. On November 18, 2003, the Agency Commission authorized a First Amendment to the Grant Agreement with the Health Center and a First Amendment to the Loan Agreement with MHC to require the Partnership to jointly manage the Site prior to start construction of the Site.
Design Workshop
The T-shaped Site is approximately 154 feet long by 150 feet wide and fronts both 7th and Moss Streets, a narrow alley. After acquiring the Site, the Partnership undertook an extensive community design process including conducting community workshops to solicit input from neighborhood residents and business owners on the development plan for the Site. Three different design concepts were presented during a series of neighborhood meetings. The neighbors present at these meetings supported the current design. As proposed, the new construction mixed-use development will consist of a five-story, 50 foot building on 7th Street with three levels of housing over a two-level health center, to be owned and operated by SOMHC, at the street level. The rental housing for very low-income families will be owned and operated by MHC and will be located above the health clinic and in a four story building fronting on Moss Street.
The entry to the double-height lobby of the Health Center marks the center of the 7th Street facade. Large, inset storefront windows, polished granite cladding, and awnings over the principal entrances create an active, pedestrian friendly streetscape. The upper levels of the building are finished in stucco with metal-clad bay windows and sunshades. The main residential entry, to the left, leads to a circulation axis that connects the 7th Street lobby, the community room, the mid-block courtyard and the lobby of the four-story 40 foot residential building proposed on Moss Street. This building is clad in horizontal siding and is articulated into a series of vertical masses in order to mimic the predominantly small-scale, residential character on Moss, typical of many South of Market alleys. The mid-block courtyard includes plantings, seating areas, and play equipment for the residents. There is subsurface parking under the entire lot, accessed from 7th Street. The program for the Project includes:
- A 20,000 square foot community health clinic for the Health Center
- Subsurface parking with 47 parking spaces to be shared by the Health Center and the housing. Twenty-four spaces will be available to the residents. The other twenty-three will be available to the Health Center during business hours and available to the residents after business hours.
- A small pharmacy on 7th Street associated with the Health Center.
- A small community room for the residents of the housing.
The schematic design has been reviewed by Agency staff as well as the staff in the City’s Planning Department. At the request of the Planning Department, the Project’s lead architect has provided additional detail on the buildings’ fenestration and exterior finishes and has enlarged a light court on the north side of the Moss Building in order to bring more light to an adjacent building. Staff anticipates that the Project will be entitled by the Planning Commission in early 2007. Therefore, the architect is soliciting the Commission’s comments on the design at this time.
Financing Plan
The total development costs for the Project are estimated at $41.3 million, requiring a subsidy of $18.3 million from the Agency. The Project’s higher development costs are largely attributable to poor soils conditions and the high acquisition costs of the Site purchased at a time when the market was extremely strong. To achieve the most cost effective design, the Partnership studied and priced a number of alternative design concepts and related foundations systems, including alternatives that limit the development of the Site to only affordable housing or only a health center. After careful evaluation, the development team and Agency staff concur that the Project’s proposed joint housing and clinic configuration mitigates the poor soils conditions by incorporating the most cost effective foundation system into the design.
To develop the financing plan for this mixed use development, costs have been split between the housing and the Health Center based on square footages attributable to each use. Based on current cost projections, the total development costs of the housing is $27.5 million. Nine percent tax credit financing structure is proposed for the housing with $12.3 million of the development costs to be paid for with tax credit equity. A total Agency subsidy of $14.2 million will be required to fund the housing portion of the development. The balance of the financing for the housing will be provided through a small permanent loan and a grant from the Federal Home Loan Bank’s Affordable Housing Program. The housing will serve low- income families earning 45% to 50% of San Francisco median income.
The complete development and build out of the Health Center is currently estimated at $13.8 million. In addition to the Agency’s commitment, three major funding sources have been identified for the Health Center. These sources include over $1 million in cash reserves, mortgage financing from Wells Fargo Bank and a private fundraising campaign. The private fundraising goal for this project is $7.3 million. The amount raised to-date is $1.37 million. Pending requests for capital funding for this year include a federal appropriations request, and requests to the Gellert Foundation, the Hearst Foundation and California Pacific Medical Center, all totaling $2,025,000. Additionally SOMHC is launching its first community wide grass roots campaign to increase the Project’s visibility and the level of giving from local donors.
The Current Request
The Partnership is requesting financing for the remaining predevelopment expenses to be incurred prior to the start of construction. SOMHC is requesting that the Agency extend the period of the Grant Agreement by 30 months (from June 30, 2005 to December 31, 2007) and provide additional funds in the amount of $588,061 to complete the construction documents, support the work of the capital campaign consultants, and pay for additional legal and administrative fees. With the approval of SOMHC’s request, a total of 2,008,978 in Agency funds will be committed to the Health Center, $1,204,350 for acquisition costs and $804,628 for predevelopment expenses. The proposed scope of work is attached as Attachment “A.” Funding for this grant request is available in the Agency’s Fiscal Year 2006-07 budget and the proposed use of the funds is detailed as follows.
|
Clinic Development Line Items |
Approved Predevelopment Budget |
Current Request |
Proposed Revised Predevelopment Budget |
|
Acquisition Prorated share |
$1,204,350 |
-0- |
$1,204,350 |
|
Architectural and Engineering Fees |
$70,419 |
$303,984 |
$374,403 |
|
Business Plan Consultant |
$99,981 |
$233,301 |
$333,282 |
|
Administration |
$38,667 |
25,776 |
$64,443 |
|
Legal Services |
$7,500 |
$25,000 |
$32,500 |
|
Grant Total Predevelopment Costs |
$1,420,917 |
$588,061 |
$2,008,978 |
To further advance the housing portion of the development, MHC is requesting that the existing loan of $5,275,514 be increased by $931,380, for a total aggregate loan amount not to exceed $6,206,894. As detailed in the table, the additional financing will be used primarily for architectural services, as well as legal expenses, permit processing, construction supervision and project administration.
|
|
Approved |
Current |
Proposed |
|
Housing |
Predevelopment Budget |
Request |
Revised Predev. |
|
Development Line Items |
|
|
Budget |
|
ACQUISITION |
|
|
|
|
Property Acquisition |
$ 4,365,388 |
$ - |
$ 4,365,388 |
|
Land Title and Recording |
$ 9,063 |
$ - |
$ 9,063 |
|
Total Acquisition Cost |
$ 4,374,451 |
$ - |
$ 4,374,451 |
|
ARCHITECTURAL FEES |
|
|
|
|
Design |
$400,000 |
$707,447 |
$ 1,107,447 |
|
Total Architectural Costs |
$400,000 |
$707,447 |
$1,107,447 |
|
SURVEY AND ENGINEERING |
|
|
|
|
Survey – pre-acquisition |
$8,764 |
$ - |
$ 8,764 |
|
Geotechnical Soils Report |
$41,261 |
$8,933 |
$ 50,194 |
|
Environmental Review studies/fees |
$43,134 |
$ - |
$ 43,134 |
|
TOTAL SURVEY & ENGINEERING |
$93,159 |
$8,933 |
$102,092 |
|
LEGAL FEES |
|
|
|
|
Land Use Attorney |
$15,000 |
$0 |
$ 15,000 |
|
Corporate attorney |
$5,000 |
$5,000 |
$ 10,000 |
|
Real estate |
$5,000 |
$5,000 |
$ 10,000 |
|
Total Attorney Costs |
$25,000 |
$10,000 |
$35,000 |
|
OTHER |
|
|
|
|
Financial Consultant |
$40,000 |
$0 |
$ 40,000 |
|
Permit Processing Fees |
|
$5,000 |
$ 5,000 |
|
Community Design Process |
$5,000 |
$0 |
$ 5,000 |
|
Relocation Expenses |
$6,900 |
$0 |
$ 6,900 |
|
Construction Supervision |
$25,000 |
$50,000 |
$ 75,000 |
|
Financing Related |
$5,000 |
$0 |
$ 5,000 |
|
Soft Cost Contingency |
$51,004 |
$0 |
$ 51,004 |
|
Total Other Costs |
$132,904 |
$55,000 |
$187,904 |
|
DEVELOPER COSTS |
|
|
|
|
Developer Overhead/Profit |
|
|
|
|
Project Administration |
$250,000 |
$150,000 |
$ 400,000 |
|
Other (specify) Audit & Tax Returns |
|
|
|
|
Total Developer Costs |
$250,000 |
$150,000 |
$400,000 |
|
GRAND TOTAL DVLPM'T COSTS |
$ 5,275,514 |
$931,380 |
$ 6,206,894 |
Project Name
Ms. Elouise Westbrook is known for her tireless effort to bring quality health care services to the residents of City of San Francisco. Ms. Westbrook was born on April 20, 1915 in Gatesville, Texas. She moved to San Francisco by way of Waco, Texas in the 1940s, making the South of Market community her home. Early in her career, she became known as the peoples’ advocate; working to bring better housing and healthcare to the residents of Bayview Hunter’s Point, South of Market Area, and other vulnerable residents throughout San Francisco.
Ms. Westbrook’s commitment to community service is deeply rooted. She has served as the President of the San Francisco Housing Authority Commission, and the Bayview-Hunter’s Point Joint Housing Commission. She was a member of the Mayor’s Committee for Community Development, the Golden Gate Transportation Advisory Board, and the Board of Regents of Lone Mountain College.
Ms. Westbrook was active in the development of ambulatory health care services at San Francisco General Hospital and Medical Center, where she worked as the Director of Patient Advocate Multi-Cultural Program. She was one of the original organizers and a past president of the South of Market Health Center, where she continues to remain active as a current board member. She was president of the Western Association of Community Health Center and a member of the American Hospital Association.
In 1987 she was awarded the “Certificate of Merit for Outstanding Black Women” from Congresswoman Shirley Chisholm. She was given the honor of traveling to Abidjan, Africa (Ivory Coast) as a member of the United States Delegation and a representative of the City of San Francisco. In 1976, 1977, 1980 and 1988, Ms. Westbrook was listed in the “Who’s Who among Black Americans”.
A partial list of awards received includes:
1965 First Community Service Award
1968 Sun Reporter newspaper, Woman of the Year Award; the Ridgepoint Senior Citizen Award
1971 Certificate of Appreciation from the Bayview-Hunter’s Point Community
1974 “Living Legend Award”; and the “Black Women Organized for Action” Award
1976 Christian Social Welfare Award
1977 John Gilbert Award from the National Association of Community Health Centers
Never in the history of San Francisco has a community health center been newly constructed as a state of the art facility. Not only will the Project provide much needed affordable housing for low income families, the new health center will service twice as many patients as SOMHC does today. By responding to the urgent need for primary and family health care services in San Francisco, Westbrook Plaza will serve as lasting tribute the tireless work of Elouise Westbrook.
South of Market Project Area Committee
On September 18, 2006, the South of Market Project Area Committee (“SOMPAC”) reviewed the design of the Project and funding requests for additional predevelopment costs for both SOMHC and MHC and recommended Commission approval of the design and funding requests.
Citywide Affordable Housing Loan Committee
On August 18, 2006 the Citywide Affordable Housing Loan Committee reviewed MHC’s request to increase the existing predevelopment loan by $931,380 and recommended Commission approval of this increase.
Next Steps
Prior to the start of construction, the Site will be subdivided into two air rights parcels, one for the Health Center and one for the housing. Staff will return to the Commission to request a permanent funding commitment for the Project and to seek Commission approval to execute two separate ground leases with MHC and SOMHC prior to the start of construction, currently scheduled for the fall of 2007.
(Originated by Vanessa Dandridge, Development Specialist
and
Isabella Wong, Development Specialist)
Marcia Rosen
Executive Director
Attachments: Attachment “A” South of Market Health Center Scope of Work
Attachment “B” Loan Committee Evaluation
ATTACHMENT “A”
South of Market Health Center (Grantee)
SCOPE OF WORK
The amount indicated for each task includes the original ($216,567) and the proposed additional grant amount ($588,061).
Task I - Architecture and Engineering Services ($374,403)
- Between April 2003 and May 2003, Grantee will hire a construction manager to develop a scope of work and solicit proposals from licensed architecture and engineering firms to develop schematic drawings and construction documents for the new health center.
- By June 2003, Grantee will select an architecture/engineering team and will enter into contracts with selected architecture/engineering team.
- Between July 2003 and through September 2006, Grantee shall work with the architecture/engineering team to produce schematic drawings of the New Clinic and submit to the Agency’s Architectural Division for review and approval.
- Between September 2006 and May 2007, Grantee shall work with the architecture/engineering team to produce design and development and construction drawings and documents for the New Clinic for Agency review and approval.
- Between May 2007 and December 2007, Grantee shall work with the architecture/engineering team to produce final construction documents for the building and tenant improvements and submit to the Department of Building Inspection for a building permit.
Task II - Business Plan and Financing Consulting Services ($333,282)
a) Between April 1, 2003 and December 31, 2007, Grantee shall hire Thomas Lauderbach, a real estate development consultant, in an amount not to exceed $109,937.25 to provide a full range of project management services. These services will include assistance with selection of project team, review of architecture and engineering reports, periodic meetings with project team members, review and assessment of project elevations, schematic designs, tenant improvements and space planning, and other related architectural options. The consultant will also provide consultation to the Grantee on project budgets and cost estimates; participate in preparing responses for due diligence, entitlements and other regulatory requirements.
- Between April 1, 2003 and December 31, 2007, Grantee shall hire Christine H. Dohrmann in an amount not to exceed $157,945 as its fundraising and development consultant for financing the New Clinic.
- Between April 1, 2003 and December 31, 2007, Grantee shall hire Capital Link and/or Capital Incubator in an amount not to exceed $49,400 as its business planning consultant to assist with identifying and selecting debt financing options and developing related financial documents required for capital grants and short term and long term mortgage financing.
- The activities of each consultant will include cross coordination and planning with other project consultants and team members, including but not limited to, architecture and engineering, business planning and the fundraising campaign.
Task III - Project Administration ($64,443)
Mr. Charles Range ($12,889) (Executive Director of the South of Market Health Center (“SMHC”), Ms. Marilyn Griffin ($38,665) (Director of Planning of SMHC), and Ramon Ferrer ($12,889) (Controller of SMHC) will be responsible for coordinating all predevelopment and development activities related to this Agreement.
Task IV Legal Services ($32,500)
Between April 1, 2003 and through December 31, 2007, Grantee shall hire Victor M. Marquez of Marquez Gonzales & Associates, LLP, to review contracts and other documents related to the predevelopment and acquisition of the New Clinic Site.
RESOLUTION NO. 143-2006
AUTHORIZING A SECOND AMENDMENT TO A TAX INCREMENT LOAN AGREEMENT WITH MERCY HOUSING CALIFORNIA, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION, TO INCREASE THE LOAN AMOUNT BY $931,380, FOR A TOTAL AGGREGATE AMOUNT NOT TO EXCEED $6,206,894, FOR THE PREDEVELOPMENT, AND CONSTRUCTION OF APPROXIMATELY 49 VERY LOW INCOME FAMILY RENTAL UNITS AT 227-255 SEVENTH STREET; SOUTH OF MARKET REDEVELOPMENT PROJECT AREA
BASIS FOR RESOLUTION
- et seq., (the “Law”), the Redevelopment Agency of the City and County of San Francisco (the “Agency”) undertakes programs for the reconstruction and rehabilitation of slums and blighted areas in the City and County of San Francisco (the “City”).
2. Pursuant to the Law, the Board of Supervisors of the City established the South of Market Earthquake Recovery Redevelopment Project Area (the “Project Area”) and adopted the South of Market Earthquake Recovery Redevelopment Plan (as amended, the “Redevelopment Plan”).
- The Agency is authorized pursuant to the Law to increase and maintain the affordability of the housing stock in the City for affordability by very-low, low and moderate-income households and to develop commercial, public or other structures or spaces as may be appropriate or necessary in the interest of the general welfare.
- Mercy Housing California, a California nonprofit public benefit corporation (“MHC” or “Borrower”), and the South of Market Health Center, a California nonprofit public benefit corporation (“SOMHC”), plan to develop approximately 49 units of affordable family housing and a 20,000 square foot neighborhood health clinic (the “Project”) at 227-255 Seventh Street (the “Site”) within the Project Area.
- On March 18, 2003, by Resolution Number 39-2003, the Agency Commission authorized a Tax Increment Affordable Housing Program Loan of $5,275,514 (the “Agency Loan” or “Agreement”) to MHC for acquisition and predevelopment costs related to developing affordable housing at the Site.
- On November 18, 2003, by Resolution Number 174-2003, the Agency Commission authorized a First Amendment to modify certain terms of the Agreement.
- MHC has requested that the Agency increase the Agency Loan by $931,380, for a total aggregate amount not to exceed $6,206,894, to pay for architectural expenses and other related predevelopment costs related to developing housing at the Site.
- The Agency now desires to amend the Agency Loan and the Promissory Note as requested by the Borrower.
RESOLUTION
ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to enter into a Second Amendment to the Tax Increment Loan Agreement with Mercy Housing California, a California nonprofit public benefit corporation, to increase the loan amount by $931,380, for a total aggregate amount not to exceed $6,206,894, for the acquisition, predevelopment, and construction of approximately 49 very low income family rental units at 227-255 Seventh Street, in the South of Market Redevelopment Project Area, substantially in the form lodged with the Agency General Counsel.
APPROVED AS TO FORM:
_________________________
James B. Morales
Agency General Counsel
RESOLUTION NO. 144-2006
AUTHORIZING A SECOND AMENDMENT TO A TAX INCREMENT GRANT AGREEMENT WITH SAN FRANCISCO MEDICAL CENTER OUTPATIENT IMPROVEMENT PROGRAMS, INC. (COMMONLY KNOWN AS THE SOUTH OF MARKET HEALTH CENTER), A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION, TO INCREASE THE PREDEVELOPMENT GRANT AMOUNT BY $588,061 FOR ADDITIONAL PREDEVELOPMENT EXPENSES, FOR A TOTAL AGGREGATE AMOUNT NOT TO EXCEED $2,008,978, AND TO EXTEND THE CONTRACT PERIOD FROM JUNE 30, 2005 TO DECEMBER 31, 2007, FOR THE CONSTRUCTION OF A HEALTH CLINIC FACILITY AT 227-255 SEVENTH STREET; SOUTH OF MARKET REDEVELOPMENT PROJECT AREA
BASIS FOR RESOLUTION
1. On March 18, 2003, by Resolution No. 40-2003, the Redevelopment Agency of the City and County of San Francisco’s (the “Agency”) Commission authorized a Grant Agreement to San Francisco Medical Center Outpatient Improvement Programs, Inc. (commonly known as the South of Market Health Center), a California nonprofit public benefit corporation (the “Health Center” or the “Grantee”), for a predevelopment grant in the amount of $216,567 and an acquisition grant in the amount of $1,204,350 for a total aggregate amount not to exceed $1,420,917 (the “Grant Amount”). The Grant was intended to enable Grantee to pay for its prorated share of the acquisition costs of the site at 227-255 Seventh Street (the “Site”) for a new medical clinic and for professional fees associated with architectural and engineering services, business plan and financing consultant services, legal services and administrative expenses to assist the Grantee in raising the necessary funds to complete the construction and tenant improvements of the new medical clinic (the “New Clinic”) at the Site, in the South of Market Redevelopment Project Area, and operate the New Clinic once it has been completed.
2. On November 18, 2003, by Resolution No. 175-2003, the Agency Commission authorized a First Amendment to the Grant Agreement to require the Grantee and Mercy Housing California, a California nonprofit public benefit corporation (“MHC”), its nonprofit housing partner, to jointly manage the Site prior to the start of construction.
3. The initial term of the Grant Agreement expired on June 30, 2005. Grantee has raised over $1,370,925 in capital funding and has $1,000,000 in equity to be used for construction and tenant improvements of the New Clinic.
- Grantee has requested the Agency to extend the period of the Grant Agreement by 30 months to December 31, 2007, and to provide additional funds in the amount of $588,061 to Grantee to complete the architectural and engineering construction documents, pay for planning and financing consultants to raise additional construction and tenant improvement funds, and pay for additional legal and administrative fees.
- On September 18, 2006, the South of Market Project Area Committee (“SOMPAC”) reviewed the funding request and recommended Agency Commission approval of such request.
RESOLUTION
ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the Executive Director is authorized to enter into a Second Amendment to a Tax Increment Grant Agreement with San Francisco Medical Center Outpatient Improvement Programs, Inc. (commonly known as the South of Market Health Center), a California nonprofit public benefit corporation, to increase the predevelopment grant amount by $588,061 for additional predevelopment expenses, for a total aggregate amount not to exceed $2,008,978, and to extend the contract period from June 30, 2005 to December 31, 2007, for the construction of a health clinic facility at 227-255 Seventh Street, in the South of Market Redevelopment Project Area, substantially in the form lodged with the Agency General Counsel.
APPROVED AS TO FORM:
_________________________
James B. Morales
Agency General Counsel
RESOLUTION NO. 145-2006
APPROVING THE NAMING OF A VERY LOW INCOME FAMILY RENTAL AND MEDICAL CLINIC DEVELOPMENT AT 227-255 SEVENTH STREET IN HONOR OF MS. ELOUISE WESTBROOK, A LONG-TIME COMMUNITY ACTIVIST; SOUTH OF MARKET REDEVELOPMENT PROJECT AREA
BASIS FOR RESOLUTION
- Mercy Housing California, a California nonprofit public benefit corporation (“MHC”), and the San Francisco Medical Center Outpatient Improvement Programs, Inc., a California nonprofit public benefit corporation, commonly known as South of Market Health Center (“SOMHC”), plan to develop approximately 49 units of affordable family housing and a 20,000 square foot neighborhood health clinic (the “Project”) at 227-255 Seventh Street (the “Site”), within the South of Market Redevelopment Project Area.
- The Project will contain apartments affordable to very low income families and San Francisco’s first newly constructed state of the art community health center which will allow SOMHC to double the number of patients it currently serves.
- Ms. Elouise Westbrook, the co-founder and past president of SOMHC, has a long history of community activism and organizing. She has worked tirelessly to promote better housing and quality healthcare services for low-income families. Throughout her life, Ms. Westbrook has made significant contributions to the South of Market community, the City and County of San Francisco, as well as the nation.
- Always a community advocate, Ms. Westbrook served and volunteered on a broad array of organizations. Her civic activities include serving as a member of the Mayor’s Committee for Community Development, president of the Western Association of Community Health Centers, and president of the San Francisco Housing Authority Commission.
- In addition to her numerous volunteer positions, Ms. Westbrook served as a dedicated public servant for San Francisco through her tenure as the Director of the Patient Advocate Multi-Cultural Program at San Francisco General Hospital and Medical Center, where she was active in the development of ambulatory health care services at the hospital.
6. In 1999, Ms. Westbrook received the National Association of Community Health Centers Lifetime Achievement Award. In recognition of her tireless efforts and reputation as an outstanding citizen of the City of San Francisco, in 1983 Mayor Dianne Feinstein declared July 16th as
Elouise Westbrook Day. In 1987, she was awarded the Certificate of Merit of Outstanding Black Women from Congresswomen Shirley Chisholm.
7. MHC and the SOMHC, the developers of the Project, have requested the Project be named as “Westbrook Plaza.”
8. Elouise Westbrook, a woman of compassion, drive and tenacity passionately committed to meeting the needs of San Francisco’s most vulnerable residents, will have a lasting legacy in the naming of the Project at 227-255 Seventh Street as Westbrook Plaza.
RESOLUTION
ACCORDINGLY, IT IS RESOLVED by the Redevelopment Agency of the City and County of San Francisco that the very low income family rental and medical clinic development at 227-255 Seventh Street in the South of Market Redevelopment Project Area is designated as Westbrook Plaza in honor of
Ms. Elouise Westbrook, a long-time community activist.
APPROVED AS TO FORM:
_________________________
James B. Morales
Agency General Counsel
__________________________
James B. Morales
Agency General Counsel