Meeting_Body
PLANNING AND PROGRAMMING COMMITTEE
OCTOBER 18, 2023
Subject
SUBJECT: TAYLOR YARD SENIOR HOUSING - GROUND LEASE TERM EXTENSION
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATIONS
Title
CONSIDER:
A. AUTHORIZING the Chief Executive Officer, or designee, to amend an existing ground lease with Taylor Yard Senior Housing, L.P. ("TYSH") to extend the 68-year term of the existing ground lease up to seven (7) additional years for a total term of up to 75 years to meet the lending requirements of the State of California Department of Housing and Community Development ("HCD").
B. FINDING that the recommended amendment to the ground lease is exempt from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3); and
C. AUTHORIZING the CEO or her designee to file a Notice of Exemption with the County Clerk and the State Clearinghouse.
Issue
ISSUE
Metro and TYSH are parties to a long-term ground lease that has provided for TYSH's construction and operation of a joint development project containing 107 affordable apartments for seniors and 8,290 square feet of commercial space (the "Senior Housing Project") on 1.8 acres of Metro property. The ground lease commenced on December 3, 2014, and has a Board-approved term of 68 years that will expire in approximately 59 years on December 2, 2082. The ground lease does not contain any options to extend.
TYSH is attempting to refinance the project's construction debt with new permanent financing, including a $2.5 million loan from HCD. Current HCD lending regulations require the ground lease to have a remaining term of at least 65 years (approximately six years longer than the remaining ground lease term). The recommended action will allow Metro and TYSH to extend the ground lease term to accommodate TYSH's access to HCD financing.
Background
BACKGROUND
The Senior Housing Project was completed in the summer of 2017 and has provided affordable apartments to 1...
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