1994 ADJ MIN DEC 7 - Laserfiche WebLink

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have 114 mobile homes left absolutely debt free, this results in a significant income producing asset. At this point, staff will come before the Agency with options to either take the income stream which is a significant $40/$50 thousand per month or to refinance it conventionally which is 70/80 percent to value or to sell to a 501C3 which are already in existence, this would generate about $3.5 million. These options would require a study session involving all the participants. Councilmember Sandoval asked for confirmation that if necessary, the Agency does have contingencies or alternatives that would grant the revenues to the City in a timely fashion. Mr. London said there is no doubt that the revenue will be achieved and they are prepared to come back to present the contingencies in detail along with the third parties that make up the actualities of the contingencies. Director Gabriel said he too had been in contact with the third party gentlemen that Mr. London has mentioned and is also confident the revenue will become a reality. Mayor Fulp stated he did not buy that moral consideration, saying that if the break even point is at 140, then the profit is alot of gravy. He asked if the project was intentionally designed to produce alot of gravy or to provide affordable housing. If RDA low -mod funds were used, should not the intent be to provide affordable housing or to put the profit back into an RDA project. Does the City have the right to take the money and put it into the General Fund. Mr. London replied that after all is said and done, what you get back is the low -mod originally put into the project. There is not one cent of gravy from the sale. The end result is reimbursement of money originally invested. Mr. London said only vacant homes will be sold by the Agency. The distribution of the profit of $22,000 per home is a policy decision of the Agency. Councilmember Beltran suggested forming a committee to look at the future sale of other mobile home parks. We need to address the deficit and direct staff to curtail the deficit. Following discussion on Councilmember Beltran's suggestion to address and direct staff regarding the deficit, it was moved by Councilmember Beltran, seconded by Councilmember Bennett, to set an Adjourned Council Meeting date of December 19, 1994 at 5:00 p.m. and to direct City Manager/staff to present a plan on this date, to eliminate $500,000 per month overspending. Motion unanimously passed. ITEM 3. WARRANTS: Mayor Fulp questioned the warrants listed on the Agenda saying the numbers did not correlate to the material received. Mayor Fulp read a list of concerns and asked that an explanatory response be provided in writing. Finance Director Chamberlain, assisted by Acting Purchasing Manager Milroy responded to the various specific 00-1 warrant questions asked by Mayor Fulp. 3 DEC I ` , 19%