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COUNTY OF SAN MATEOInter-Departmental Correspondence |
Human Services Agency |
DATE: |
January 23, 2002 |
BOARD MEETING DATE: |
January 29, 2002 |
TO: |
Honorable Board of Supervisors |
FROM: |
Maureen Borland, Director, Human Services Agency
Steve Cervantes, Director, Office of Housing |
SUBJECT: |
RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT FOR A LOAN WITH FAMILY SERVICE AGENCY TO ASSIST IN THE PURCHASE OF REAL PROPERTY |
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Recommendation |
Adopt a Resolution authorizing the execution of an agreement for a loan with Family Service Agency (FSA) to assist in the purchase of real property. |
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Background |
On September 11, 2001, the Board of Supervisors approved a Real Property Loan Program for Non-Profit Agencies to assist in the purchasing of real properties in which to locate their administrative offices and/or to provide their services. |
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Family Service Agency provides a number of services in the County including child care programs, job training and placement, family counseling and low interest loans to low income households. In 2001 FSA received an 82% rent increase on the lease of their offices in Burlingame with a month-to-month lease ending September 2002. They are currently leasing approximately 7,865 square feet. In addition, they occupy approximately 2,210 square feet in leased premises in Burlingame for a childcare center and 2,932 square feet in their Redwood City office. The total space of the current leased properties is approximately 13,007 square feet. |
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Discussion |
This Agreement provides a loan of $725,000 to FSA to assist with the acquisition of an 18,232 square feet building in San Mateo in which they propose to consolidate their operations. Approximately 1,975 square feet is under lease to a dry cleaners, leaving 3,250 square feet available to lease out to another non-profit agency until FSA need to expand their operations. |
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The funds would be provided in the form of a 15-year mortgage with interest pegged at one-half of the annualized net earnings of the County investment pool holding general fund reserves. The County funds will leverage over $5,000,000 provided by FSA and a conventional mortgage lender to cover the balance of the purchase price plus closing costs and renovations to adapt the property to their specific uses is estimated at $5,742,000. The County loan will represent 12.6% of the total cost. |
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This agreement has been approved by the County Counsel's Office as to form. Risk Management has reviewed and approved the contractor's insurance coverage. |
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Fiscal Impact |
The total County obligation under this Agreement is $725,000, to be funded out of the County's General Fund Reserves set aside for this program. The Program was funded in FY 2001/02 for a total of $1,000,000. Of this amount $275,000 was lent to Women's Recovery Association. This loan utilizes all remaining funds. |