CITY OF OAKLAND

Inter-Office Memorandum
TO: Sean Rogan, Marge Gladman
FROM: Jeff Angell
DATE September 3, 201
RE: Grove Park background n!or"a#on
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!"e bac#ground information $ou re%ue&ted for t"e Gro'e (ar# pro)ect i& belo*+
Gro'e (ar# i& a propo&ed ,--unit affordable "ou&ing de'elopment, *"ic" *a& to
ab&orb a more limited 1.-unit propo&al t"at *a& preliminaril$ funded *it" a /0AR(
loan+ !"e 1.-unit pro)ect *a& t"oug"t to be fea&ible, but de'eloper A+1+ 2'an&3
preference *a& for t"e ,--unit 'er&ion, to be funded t"roug" t"e 4O1A, and to
include ad)acent lot& o*ned b$ t"e 5it$, 565O, and O50I+ 4o 4O1A funding *a&
appro'ed, but t"e de'eloper i& &till obligated under /0AR( to de'elop t"e 1.-unit
pro)ect+ 5it$ affordabilit$ re&triction& are recorded on t"e /0AR( parcel&+
1+ Map of t"e &ite, &"o*ing o*ner&"ip7 !"e map from t"e original 4O1A
application, color-coded for o*ner&"ip, i& attac"ed+
2+ Amount of t"e 5it$ loan to A+1+2'an& for t"e t*o corner parcel&, and current
balance7 !"e /0AR( loan, a 8ero intere&t loan, began and remain& at 9-00,000,
all of *"ic" *a& di&bur&ed in e&cro* to t"e &eller+ !"ere *a& al&o a pri'ate
ac%ui&ition loan of 9:1,000; *e don3t #no* t"e current balance+
3+ Amount of loan to 565O, and current balance7 Original Site Ac%ui&ition (rogram
loan amount *a& 9,2,000+ <+1.= &imple intere&t "a& added nearl$ anot"er
922,000+ 5it$ affordabilit$ re&triction& are recorded on t"e parcel+
+ Statu& of O50I building at 3-33-3: M>? and loan7 !"e building i&
unin"abitable+ !"ere i& no 5it$ or Agenc$ mone$ in'ol'ed+
@AMA, t"e "older of t"e 9,00,000 purc"a&e mone$ loan, "a& been remar#abl$
unre&pon&i'e, con&idering t"e loan i& at lea&t eig"t mont"& delin%uent+ Amount
no* due mu&t be about 9<00,000+ 5ollection notice& "a'e been recei'ed, but no
4otice of 6efault+ O50IB50654R effort& to di&cu&& "a'e been generall$
ignored+ A re%ue&t to &tart a deed-in-lieu proce&& *a& an&*ered *it" a &tandard
pac#age for a &ingle-famil$ "omeo*ner+
A+1+2'an& al&o loaned O50I roug"l$ 9,0,000, a& a &ecured loan, for eCpen&e&
related to t"e building+
,+ !"e O50I building and lot are for &ale, but t"ereD& onl$ been *ea# intere&t,
including t*o offer& of around 9300,000 and 900,000+ E!"e lo*er offer *a& from
Mr+ 5on&o&, former o*ner of t"e 2'an&3 /0AR( parcel, and current o*ner of t"e
neCt parcel nort"+F An$ &ale *ould re%uire @AMAD& agreement to accept a lo&& of
*ell o'er 9100,000, but again, t"e$3'e been almo&t completel$ unre&pon&i'e to
effort& to communicate, muc" le&& to negotiate+
<+ Goning and General (lan7 5-10 and 4eig"bor"ood 5ommercial+ !"e Gro'e (ar#
de&ign *ould re%uire a 5A(, and po&&ibl$ a 'ariance, but all indication& *ere
t"o&e *ouldn3t be difficult to obtain+