Board removes contingency on Measure A funds for Coliseum Connections to avoid construction delay

The Alameda County Board of Supervisors voted 5–0 on Jan. 23 to remove a contingency that had restricted access to Measure A housing-bond funds for the Coliseum Connections project in East Oakland, enabling the developer to access lender funds needed to meet an imminent modular production payment.

The board considered a two-part staff recommendation to reconsider a previous October action that had conditioned Measure A disbursements on bond issuance. County staff told the board the project had closed construction financing in September but could not use the bulk of its construction lender and tax-credit investor funds until the county contingency was removed. County staff said Measure A would not be disbursed immediately but would be available to reimburse the county when permanent financing closed.

Developer Michael Johnson told supervisors the project is approximately 40 percent complete and faces a $6 million modular-company payment due in the coming weeks; without the payment the project would lose its production slot and face significant delay. Johnson said the project assembled multiple funding sources, including a $12,000,000 city commitment that has already been spent, about $2,000,000 from state sources and a $1,200,000 nonprofit lender contribution. He said $29,000,000 from Chase Bank and $10,000,000 from the tax-credit investor remain contingent on bond issuance unless the board acts.

Supervisor questions focused on what county staff had told the developer about bond timing and whether any written assurances existed. Staff said schedule uncertainty stemmed from delays selecting a financial adviser and bond counsel, and that staff had repeatedly sought a definitive issuance date but had not received a binding written promise. Staff noted an adopted reimbursement resolution that would let the county recover any brief early expenditures of A1 funds.

Supervisor Wyler moved to remove the contingency for the Coliseum Connections item and the motion was seconded and approved with five ayes. The action, described by staff as consistent with earlier contingency removals for four other projects, is intended to allow the developer to access lender funds and keep construction moving while Measure A funds remain subject to final permanent-financing conditions.

The board did not identify a new timeline for disbursement beyond the standard process that requires permanent financing close-out before permanent A1 funds are paid.

The board also heard staff assurances that the two-part approach to the item was designed to narrowly identify distinctions between the Coliseum Connections request and prior contingency removals so the county could limit repeat requests going forward.