1983-26 CRA - Laserfiche WebLink

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for denial of the appeal of Green's Furniture to receive additional funds for relocation assistance. . The Assistant Director following statement: of Redevelopmen t then read the "In August 1982, we received a assistance from Mr. Richard L. Green's Furniture in the amount of of the claim is in your packet. Attorney Riemer's request to each claim and reasons for our denial," claim for relocation Riemer represen ting $237,170.00. A copy We have responded to of the issues in the . "Several years agc the Redevelopment Agency began planning for the development of the Second Street Mall. This effort resul ted from concepts prov ided by Bissell and August in their 1976 plan for the redevelopment of the Downtown. Beginning in approximately 1976-77, the Agency staff began discussions wi th Mr. Billy Greenberg regarding the rehabilitation of the Grand Central building which would face the southern half of the mall. 'lt1ese discussions led to the actual drafting of an agreement between the Agency and Billy. Subsequently, we found that the property was actually owned by Harry and Evelyn Greenberg, the parents of Billy Greenberg. In 1979, the Agency proceeded to construct the Second Street Mall and formulated a Major Commercial Rehabilitation Loan Program with Wells Fargo. In addition, Agency staff proceeded to assist Mr. and Mrs. Greenberg in getting a 312 HUD loan in the amount of $250,000 to add to the Wells Fargo loan of approximately $650,000. The major impediment to the Greenberg's moving ahead with their planned rehabili- tation of the Grand Central building was a long-term lease wi th the ir son, Billy, which called for a low rate of return which would not sustain the debt serv ice on the cost of rehabilitation. In order to make the mcnthly payments on the new loans, Billy would have to pay a higher monthly rent than his lease called for or vacate the portion of the Grand Central building which he occupied so that it could be reoccupied by a tenant who was willing to pay a higher rent. We felt this was a matter between the father and son who we had worked with for several years on this project and left it as str ictly a family matter, In December of 1980, the Greenbergs decided to proceed with the rehabilitation of the building with loan funds provided from Wells Fargo Bank and HUD." "Because Federal funds were available from HUD for a portion of the project, the residential tenants in the twenty-nine (29) apartments upstairs were eligible for relocation benefits. In addition, staff determined that the commercial tenants downstairs may be eligible for certain relocation benefits. D.>r ing the several years we discussed this rehabilitation project with the Greenbergs, the question of relocation benefits to Billy was explored with him. Agency staff determined that he should receive $4,000.00 for moving expenses on what he was moving out of the Grand Central building into the Green's Furniture building next door, In addition, staff authorized a payment of $2,100.00 for the relocation of a sign on the Broadway side of the building to the First Street side of the building, as well as a payment of $600.00 for the moving and reinstalling of shelving. Mr. Riemer, the attorney for Mr, Greenberg has stated that we did not properly advise Mr. Greenberg of his relocation rights by not . 3. A,,") '6 6A