Mayor Roger Hernandez called a special meeting for tonight at 4 p.m. to reconsider the approval of an owner participation agreement with the West Covina Senior Villas for the development of an affordable senior housing project.
This is the property that was abandoned because the previous property owner who was building a bunch of condos said he can no longer afford it. The property now will be developed by Telacu, which is connected with Pacifici Development, owned by Hank Attina.
According to a story that ran on May 6:
On Tuesday, the West Covina Community Redevelopment Commission approved a deal that allows TELACU Industries, which specializes in building low-income housing, to purchase the property and to receive a subsidy from the city.
TELACU is buying the property for $3.5 million, and will be receiving an $8.6 million loan – which does not have to be paid if the developer continues providing low-income housing for the next 99 years – from the housing set-aside reserve fund from the city to cover the cost of the land and construction
Hernandez alleges that the council is gifting public funds to developer Attina because the city failed to appraise the land, a requirement by state law in any redevelopment deal. The city on May 5 approved the sale at $3.5 million, but Hernandez alleges that the property is only worth half that. He will attempt to stall the deal on Thursday, one day before the deal closes escrow.
We will see if any of this pans out later in the day.