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HomeMy WebLinkAboutR29-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ORIGINAL DATE: January 31,2006 SUBJECT: Joint Public Hearing - Amendment to the 2005 Meadowbrook Single-Family Residential Development Agreement with Meadowbrook Park Homes, Inc, (Central City East Redevelopment Project Area) FROM: Maggie Pacheco Interim Executive Director ___________....________________________________________________n________________________________________________________________________________dd_______________________ Svnopsis of Previous Commission/CounciVCommittee Action(s): On December 20, 2005, Redevelopment Committee Members Estrada and McGinnis unanimously voted to recommend that the Mayor and Common Council and Community Development Commission consider this action for approval. ._______________________________________d__________________________________._._______________________________------------------------------------------------------------ Recommended Motion(s): Open/Close Joint Public Hearing (Mavor and Common Council) A: Resolution of the Mayor and Common Council of the City of San Bernardino approving an Amendment to the 2005 Meadowbrook Single-Family Residential Development Agreement by and between the Redevelopment Agency of the City of San Bernardino and Meadowbrook Park Homes, Inc. (Central City East Redevelopment Project Area) (Communitv Development Commission) B: Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino to execute an Amendment to the 2005 Meadowbrook Single-Family Residential Development Agreement by and between the Agency and Meadowbrook Park Homes, Inc., and making certain findings and determinations (Central City East Redevelopment Project Area) Contact Person(s): Maggie Pacheco Central City East Redevelopment Project Area Phone: (909) 663-1044 Project Area(s): Ward(s): Supporting Data Attached: (;'] Staff Report (;'] Resolution(s) (;'] Agreement(s)/Contract(s) 0 Map(s) 0 Letters SIGNATURE: $ N/A Source: N/A N/A FUNDING REQUIREMENT . Budget Authority: . I)~ &M" -J::/'~ 7-1{ trarbara Lindseth, Admin. Services Director Commission/Council Notes: :;'oot,-~G @) J / :; (!Dc.l d1JVf.; -h ( ~ t P:\Agendas\Comm Dev Commissioll\CDC 2006\02.06-06 Meadowbrook Park Amelldmellt SR,doc COMMISSION MEETING AGENDA Meeting Date: 02/06/2006 Agenda Item Numberf<d. Cj ECONOMIC DEVELOPMENT AGENCY STAFF REPORT JOINT PUBLIC HEARING - AMENDMENT TO THE 2005 MEADOWBROOK SINGLE- F AMIL Y RESIDENTIAL DEVELOPMENT AGREEMENT WITH MEADOWBROOK PARK HOMES, INC. (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) BACKGROUND: In February 2003, the Community Development Commission (the "Commission") approved the Meadowbrook Single Family Residential Grant Development Agreement (the "2003 Agreement") with ANR Industries, Inc., in order to revitalize the Meadowbrook Neighborhood. The 2003 Agreement focused on the development of twenty-three (23) new single-family homes. These new homes were constructed on twenty-two (22) parcels owned by ANR Industries, Inc., and one (I) parcel owned by the Agency within the area bounded by 2nd Street on the north, Rialto Avenue on the south, Sierra Way on the west and Allen Street on the east. Development of the new homes under the 2003 Agreement is referred to as the "Meadowbrook Phase I Project" or the "Phase I Project". All twenty-three (23) new homes were built and sold to eligible homebuyers per the 2003 Agreement. On January 10, 2005, the Commission approved the 2005 Meadowbrook Single Family Residential Development Agreement (Meadowbrook neighborhood Restoration Area) (the "2005 Agreement") with Meadowbrook Park Homes, Inc. (Developer) an affiliate of ANR Industries, Inc. The 2005 Agreement provided that eight (8) Agency Lots be sold to the Developer for the development of five (5) affordable new homes for households earning up to 120% of County median income, one (I) new home for a household earning up to 80% of County median income and two (2) unrestricted market- rate new homes. Two (2) additional Agency lots were added later for a total of ten (10) lots to be developed (8 affordable and 2 market rate homes). All of the lots will be developed similar to the ones built and sold in Phase 1 and are about 75% completed. The 2005 Agreement also allocated $500,000 in downpayment assistance to the Developer to be used to assist Qualified Homebuyers in the purchase of a new home as described in the 2005 Agreement. CURRENT ISSUE: The attached proposed Amendment to the 2005 Agreement is being prompted by the escalating home prices over the past year, averaging in excess of $340,000 in San Bernardino/Riverside County, and under the 2005 Agreement, the Developer is required to insure that eight (8) of the previously transferred Agency Lots are sold to Qualified Homebuyers, as defined above, at affordable housing costs in accordance with California Redevelopment Law. At the present time, the Developer is offering the new homes at prices in the range of $355,000 to $380,000 which is consistent with the neighborhood housing market and at these price ranges, a Qualified Homebuyer earning not less than 80% ($44,000 for a family of 4) and not more than 120% ($66,800 for a family of 4) of the County median income will need downpayment assistance of up to $125,000. Under the 2005 Agreement, the Agency allocated $500,000 to the Developer's project to provide 20% downpayment assistance to each of the 8 Qualified Homebuyers; however, for reasons stated above, the 20% downpayment is insufficient to make the new homes affordable for the Qualified Homebuyers. Consequently, in order to address the insufficient downpayment assistance and to insure that the 8 affordable new homes are ._..._n.._uu_Uhn__nn_..nn____u___________n_____u_u_n__u_________n.._____u___n_n______________n________n_._________n________n__n__UU_nn_________n_____n____________.__.__.n____h P \A!!,endas\Comm De\l Commission\CDC 2006\02-06-06 Meadov.brook Park Amendment SR doc COMMISSION MEETING AGENDA Meeting Date: 02/0612006 Agenda Item Number: Economic Development Agency Staff Report Amendment to 2005 Meadowbrook Agreement Page 2 sold to Qualified Homebuyers at affordable housing costs pursuant to the 2005 Agreement and State Law, it is proposed to make several changes to the 2005 Agreement as follows: I. To apportion the $500,000 already allocated in the 2005 Agreement in an amount not to exceed $62,500 per Qualified Homebuyer for each of the eight (8) affordable new homes (Type A and B Agency Lots); and 11. To provide additional down payment assistance to the Qualified Homebuyer for the Agency Lots referenced in (i) above in order to make the price of the home available to the Qualified Homebuyer affordable at affordable housing costs and said additional downpayment assistance will be funded from the potential Project sale profits. If it becomes necessary, additional downpayment assistance may also be funded from the deferral of the Agency Lots Purchase Price owed by the Developer to the Agency as provided in Section 6 of the Amendment. If the $500,000, plus the proceeds of the sale profits are insufficient for the necessary downpayment assistance to make the New Homes affordable to the Qualified Buyer, the Developer will bear all and any other costs. After all the eight (8) affordable New Homes have been sold to Qualified Homebuyers, and the Agency Lots Purchase Price have been paid by the Developer, any remaining profits (Developer profit allowance is (10%) of the gross sales price of the Completed New Home), will be split 50/50 between the Agency and Developer; and 111. The Agency will transfer the Type BLot (80% of median income Agency Lot) to the Developer for $100 for the development of New Home for sale to Qualified Low Income Homebuyer rather than using the complicated formula set forth in the 2005 Agreement; IV. The Agency will transfer to the Developer the property located at 214 East 4th Street, San Bernardino, California (APN: 0135-142-19) ("Agency Type C Lot") at the fair market sales price of $90,000 for the development of an unrestricted market sales price and the Amendment will also extend the Neighborhood Restoration Area boundaries to include this Agency Type CLot; In closing, prior to the proposed sale of the Agency Type C Lot to the Developer, the Mayor and Common Council and Community Development Commission are required to conduct a joint public hearing in accordance with Health and Safety Code Sections 33431 and 33433. The attached Summary Report identifies the salient points of the disposition of the Agency Type C Lot pursuant to the Amendment, the purchase price of the Agency Type C Lot and the estimated value of the interest conveyed, determined at the highest and best use permitted based on the restricted reuse value per the Amendment. As required, under the Health and Safety Code Section 33433, a public notice of this joint public hearing was also published. ENVIRONMENTAL IMP ACT: A Notice of Exemption for the development of the Agency Type C Lot will be prepared in accordance with the California Environmental Quality Act (CEQA) and will be filed with the San Bernardino County Clerk. ~~~_'d_n__________.__._nn___'_h____________________.__.______n_n_____n_________nU_______nn____u_____n______uhn___n__nn_n__h_n__n_h____._____h__.n___n______h_____n________u_.nn P \Agendas\Comm Dc.... Commission\CDC 2006\02-06-06 Meadowbrook Park Amendment SR doc COMMISSION MEETING AGENDA Meeting Date: 02/06/2006 Agenda Item Number: Economic Development Agency Staff Report Amendment to 2005 Meadowbrook Agreement Page 3 FISCAL IMPACT: There are no additional fiscal obligations imposed upon the Agency per the Amendment as the additional downpayment assistance described above will be derived from the sale profits of the new homes; Moreover, the Agency will receive $90,000 in sales proceeds for the disposition of the Agency Type C Lot to the Developer which will be used to off-set the Agency costs associated with the purchase of the Agency Type C Lot as further described in the Summary Report. RECOMMENDATION: That the Mayor and Common Council and the Community Development Commission adopt the attached Resolutions. _____n__n____U~____n______________n._n_nd~_.._.__d________n___._u.____________n_n_______UuU____n.____n_nn____nnn__________________nn__hh__U__n_n________n_______n________h__n P,Agendas\Comm De\' Commissionl.CDC 2006\02-06-06 Meadowbrook Park Amendmenl SR doc COMMISSION MEETING AGENDA Meeting Date: 02/06/2006 Agenda Item Number: SUMMARY REPORT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433 OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW ON THE DEVELOPMENT AND DISPOSITION OF CERTAIN AGENCY LOT PURSUANT TO THE AMENDMENT TO THE 2005 MEADOWBROOK SINGLE-FAMILY RESIDENTIAL DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND MEADOWBROOK PARK HOMES, INC. (MEADOWBROOK NEIGHBORHOOD RESTORATION AREA) - CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA INTRODUCTION This Summary Report has been prepared by the Redevelopment Agency of the City of San Bernardino (the "Agency") in accordance with Health and Safety Code Section 33433. This Report sets forth certain details of the amendment to the 2005 Meadowbrook Single Family Residential Development Agreement ("Amendment to the 2005 Agreement") by and between the Agency and Meadowbrook Park Homes, Inc., a California corporation (the "Developer"). The Amendment to the 2005 Agreement provides for the disposition of an Agency Lot to the Developer for development of a new single-family market rate home. This Summary Report is organized into the following six (6) sections: I. Salient Points of the Proposed Amendment to the 2005 Al!:reement: This section includes a description of the major responsibilities to be assumed by the Agency and the Developer. II. Cost of the Amendment to the 2005 Al!:reement to the Al!:encv: This section outlines the proposed Amendment to the 2005 Agreement costs to the Agency. III. Estimated Value of the Interests to be Conveyed Determined at the Hil!:hest and Best Use Permitted Under the Redevelopment Plan: This section summarizes the value of the Agency Lot to be conveyed by the Amendment to the 2005 Agreement to the Developer at the highest use permitted. IV. Estimated Reuse Value of the Interests Determined at the Required Use and with the Conditions. Covenants and Development Costs Required bv the Proposed Al!:reement: This section summarizes the sale price to be paid to the Agency. The sales price is not less than the fair market value of the interest to be sold, determined at the highest and best use consistent with the redevelopment plan. V. Blil!:ht Alleviation: This section describes the existing blighting conditions in and around the Project Area, and an explanation of how the proposed sale and development of the Agency Lot will assist in alleviating the blighting conditions. VI. Conformance with the AB 1290 Implementation Plan: This section identifies how the proposed Amendment to the 2005 Agreement will result in a development activity that fulfills goals and objectives established in the Agency's AB 1290 Five-Year Implementation Plan. 4814-7311-6672.1 r AgcndaslAgenda AUachl1lenls.$lImlTlarV Repons\200602-06-06 Meadov.brook Amendment Summary Repon duc I. SALIENT POINTS OF THE AMENDMENT TO THE 2005 AGREEMENT A. Description of the proposed Proiect . The purpose of the Amendment to the 2005 Agreement is to facilitate the development and sale of a single-family market rate home at 214 East 4th Street, San Bernardino, California (APN: 0135-142-19) (the "Agency Lot") in the Central City East Redevelopment Project Area. If needed, all necessary infrastructure improvements such as electricity, sewer, gutter, landscaping will be provided by the Developer. B. Agency Responsibilities . Execute and implement the Amendment to the 2005 Agreement with Meadowbrook Park Homes, Inc. for the transfer and development of a market rate single-family home on Agency Lot (Type C) per the terms of the Amendment to the 2005 Agreement. C. Developer Responsibilities · Execute and implement the Amendment to the 2005 Agreement with the Agency and agree to buy the Agency Lot at the fair market price of $90,000 and develop a market rate single-family home ("Market Rate New Home") per the Amendment to the 2005 Agreement and secure the construction/permanent financing required to develop the Agency Lot. · Complete the Market Rate New Home per the Schedule of Performance in the 2005 Agreement. II. COST OF THE PROJECT AND/OR THE AMENDMENT TO THE 2005 AGREEMENT TO THE AGENCY The Agency expended an estimated $500 for the acqUIsItion and closing costs, value of $90,000, and $6,500 in demolition cost from unrestricted other Agency funds (non-Low and Moderate Income Housing Funds) for the Agency Lot. The Agency will transfer the Agency Lot to the Developer for the construction of a new single-family home at the fair market price. III. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED BY THE AGENCY DETERMINED AT THE HIGHEST AND BEST USES PERMITTED UNDER THE REDEVELOPMENT PLAN: The appraised fair market value of the interest to be conveyed based upon comparable sales of similar lots in the area over the past six (6) months and an appraisal letter dated January 26, 2006 is $90,000. This value is considered to be the highest and best use for the Agency Lot permitted as single-family residential under the Central City East Redevelopment Project Area Plan. 4814-7311-6672.1 2 P \Age:ldas\'\ger.da Allachments\SUllun,H\" Repons\2006\02.06-06 \ieado....brook Amendment Summary Report doc IV. ESTIMATED VALUE OF THE INTEREST TO BE CONVEYED BASED ON THE REQUIRED REUSE AND WITH THE CONDITIONS. COVENANTS AND RESTRICTIONS REQUIRED: The estimated fair market value of the interest to be conveyed to the Developer is $90,000. The sale of the Agency Lot is necessary to implement the Redevelopment Plan for the Central City East Redevelopment Project Area and to provide a New Market Rate Home for area residents. In conclusion, the interest to be conveyed to the Developer has been determined to be the highest and best use (single-family residential) permitted under the Central City East Redevelopment Plan and holds true for the reuse value. V. BLIGHT ALLEVIATION: The development of the Agency Lot will eliminate existing blight, foster the reuse of under utilized property into a new single-family home for the benefit of the residents of Central City East Redevelopment Project Area and City residents, increase property values and place the Agency Lot back on the tax rolls. VI. CONFORMANCE WITH THE AB 1290 IMPLEMENTATION PLAN: The Five-Year Implementation Plan adopted by the Agency contains several broad operational goals and objectives for the Central City East Redevelopment Project Area. Among these are the following: · Eliminate blighting influences, including, deteriorating buildings, uneconomic land uses, obsolete structures, and other environmental, economic, and social deficiencies. · To re-plan, redesign, and develop underdeveloped areas that are stagnant or improperly utilized. . To provide housing opportunities. The proposed Amendment to the 2005 Agreement will assist the Agency in meeting the objectives and goals of its Five- Year Implementation Plan for the Central City East Redevelopment Project Area in the following way: The execution of the Amendment to the 2005 Agreement with the Developer will continue redevelopment activities of the Agency by providing market rate housing within a designated redevelopment project area. Based upon the preceding factors, the proposed Amendment to the 2005 Agreement is consistent with the adopted Five- Year Implementation Plan. The interest and land conveyed to the Developer will be developed in conformance with the City's General Plan and Housing Element, Municipal Development Code, and Agency's AB 1290 Implementation Plan. ~Sl~-7311-66'72.1 3 i' -\'-;('l\dd~"A~enda Attachments' Summar\ Repon~\~O()6'.O~-O()-06 ~leado",brook Amendment Summar) Repon doc RESOLUTION NO. 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AN AMENDMENT TO THE 2005 MEADOWBROOK SINGLE-FAMILY RESIDENTIAL DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND MEADOWBROOK PARK HOMES, INC. (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) 3 4 5 6 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a 8 public body, corporate and politic; and WHEREAS, on January 10, 2005, the Mayor and Common Council and the Community 9 10 Development Commission approved and authorized the execution of the 2005 Meadowbrook II Single Family Residential Development Agreement (the "2005 Agreement") between the 12 Agency and Meadowbrook Park Homes, Inc. ("Developer"), to sell ten (10) Agency Lots to the 13 Developer for the development and sale of eight (8) new single family homes to Qualified Homebuyers and two (2) new single family homes to market rate buyers as defined in the 2005 ]4 Agreement; and 15 16 WHEREAS, the Agency and the Developer seek to amend the 2005 Agreement 17 ("Amendment") to accommodate several modifications and objectives, including, but not limited to. the sale of the property located at 214 East 4th Street, San Bernardino, California 18 (APN: 0135-142-19) (the "Agency Lot") within the Central City East Redevelopment Project 19 Area ("Project Area") at not less than the fair market value determined at its highest and best 20 use ("Market Value") in accordance with the Project Area Redevelopment Plan ("Plan"); and WHEREAS, the Developer shall develop and construct on the Agency Lot a singl 21 '/ family home in accordance with the development standards and requirements pursuant to th l' -j 2005 Agreement; and 24 WHEREAS, in accordance with Section 33431 and 33433 (a) (I) of the Health an 25 Safety Code, the Agency has prepared and published a notice of public hearing in The Sa 4815-9755-5968.1 -1- r \Agenda,'Resolulions'.ResoIU\l{Jns'200O\02.0o.06 Meado....hrool.. Park Homes MCC Reso doc 2 Bernardino County Sun Newspaper on January 23 and 30, 2006, regarding the consideration an approval of the sale of the Agency Lot in accordance with the provisions of the Amendment t California Environmental Quality Act ("CEQA"). 3 the 2005 Agreement; and WHEREAS, pursuant to Health and Safety Code Section 33431, the Agency may transfe the Agency Lot to the Developer subject to the Mayor and Common Council adopting Resolution authorizing the Agency to transfer the Agency Lot in light of the findings set fort herein, pursuant to Health and Safety Code Section 33433; and WHEREAS, the Agency has prepared a Summary Report that describes the salient point of the Amendment to the 2005 Agreement and identifies the cost of the Amendment to th Agency in accordance with Health and Safety Code Section 33433; and WHEREAS, development of the Agency Lot pursuant to the Amendment and the 200 4 5 6 7 8 9 10 11 12 Agreement is "categorically exempt" in accordance with Section 15332, Class 32 of th 13 ]4 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERE BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: 15 16 Section 1. The Recitals of this Resolution are true and correct. 17 Section 2. On February 6, 2006, the Mayor and Common Council and Communit 18 Development Commission conducted a full and fair joint public hearing and considered th written Agency staff report relating to the Amendment to the 2005 Agreement, the Summar Report and the testimony, if any, submitted relating to the disposition and development of th 19 20 21 Agency Lot by the Developer in accordance with the Amendment. The minutes of the Cit Clerk for the February 6, 2006, joint public hearing of the Mayor and Common Council an 22 13 Community Development Commission shall include a record of all communication an 24 testimony submitted to the Mayor and Common Council and the Community Developmen Commission at the joint public hearing by interested persons relating to this transaction. 25 4815-9755-59681 -2- P \Agendas\ResolulIons .Resolutlons\2006\02-06-06 Mcado",brook Park Homes MeC Reso doc Section 3. This Resolution is adopted in order to satisfy the provisions of Health an 2 Safety Code Section 33433 (a) (1) and (2) (B) (1) related to the disposition of the Agency Lot t the Developer in accordance with the Amendment to the 2005 Agreement. Common Council hereby find and determine as follows: (i) The Summary Report contains the information described in Health and Safety Cod Section 33433(a)(2) (b) wherein the Agency Lot is being sold to the Developer at th purchase price of NINETY THOUSAND DOLLARS ($90,000) for the developmen 3 4 5 6 7 8 of a single family market rate home ("New Market Rate Home") which sai consideration is not less than the fair market value determined at its highest and bes 9 10 use in accordance with the Redevelopment Plan and the consideration is not les II than the fair reuse value at the use and with the covenants, conditions an 12 development costs authorized by the sale pursuant to the terms and conditions of th Amendment. ]3 Section 4. The Mayor and Common Council hereby find and determine that th 14 development of the Agency Lot is consistent with the environmental review completed for th IS approved 2005 Agreement and the Amendment and that said development is "categoricall. 16 exempt" and no potentially adverse environmental effects are anticipated to be associated wit ]7 the development of the Agency Lot and a Notice of Exemption under CEQA relating to th 18 development of the Agency will be filed with the County Clerk. 19 Section 5. The Mayor and Common Council hereby receIves and approves th 20 Summary Report and the Amendment to the 2005 Agreement in the form as submitted at thi 21 joint public hearing. 22 Section 6. The Mayor and Common Council hereby approves the disposition of th 23 Agency Lot to the Developer on the terms set forth in the Amendment to the 2005 Agreement. 24 Section 7. The City is not a party to the 2005 Agreement and the Amendment, an 25 nothing in this Resolution shall be deemed to constitute an approval by the City of an application for a development permit or approval which the Developer may hereafter be require 4815-9755-5968 I -3- P \Ag.endas'-ResolulIom\Resolulions\2006\02.06.06 Meadowbrook Park Homes MCC Reso doc to obtain from the City as a condition precedent to the performance of the Developer's obligatio 2 under the Amendment with respect to the development of the Agency Lot andlor the constructio 3 of any New Market Rate Home on the Agency Lot. The City hereby reserves its discretion unde 4 all applicable laws to approve or reject, and to impose any appropriate condition of its appro va 5 on such development permit application as the Developer may hereafter submit to the City i Section 8. This Resolution shall take effect upon its adoption and execution in th 6 connection with the Agency Lot. 7 8 manner as required by the City Charter. 9 /II 10 1/1 11 /II 12 /II 13 III 14 /II /II 15 /II 16 /II 17 1/1 18 II! 19 /II 20 /II 21 /II 22 /II )' -.) /II 24 /II 25 /II 4815-9755-5968.1 -4- P \Agendas-Resolulions\Resolutions\2006\02-06-06 Meadowbrook Park Homes MCC Reso doc 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AN AMENDMENT TO THE 2005 MEADOWBROOK SINGLE-FAMILY RESIDENTIAL DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND MEADOWBROOK PARK HOMES, INC. (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) 3 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor an 7 Common Council of the City of San Bernardino at a meeting thereof held on the day of 8 Council Members: Ayes 9 ESTRADA 10 LONGVILLE II MCGINNIS 12 DERRY 13 KELLEY ]4 JOHNSON 15 MC CAMMACK 16 17 , 2006, by the following vote to wit: Nays Abstain Absent Rachel G. Clark, City Clerk 18 19 The foregoing resolution is hereby approved this day of ,2006. 20 21 22 Judith Valles, Mayor City of San Bernardino Approved as to form and Legal Content: " ~.) 24 By: 25 4815-9755-5968.2 -5- P \Agendas',Resolution,\Resolutlons\2006\02-06-06 Meadowbrook Park Homes MeC Reso doc RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO EXECUTE AN AMENDMENT TO THE 2005 MEADOWBROOK SINGLE-FAMILY RESIDENTIAL DEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY AND MEADOWBROOK PARK HOMES, INC., AND MAKING CERTAIN FINDINGS AND DETERMINATIONS (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) 3 4 5 6 7 8 WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a 9 public body, corporate and politic; and WHEREAS, on January 10, 2005, the Community Development Commission and the Mayor and Common Council approved and authorized the execution of the 2005 Meadowbrook Single Family Residential Development Agreement ("2005 Agreement") between the Agency and Meadowbrook Park Homes, Inc. ("Developer") to acquire eight (8) Agency Lots, develop 10 Ii 12 13 and sell new single family homes to income eligible households; and 14 WHEREAS, the Agency and the Developer seek to amend the 2005 Agreement as 15 follows in the manner as contained in the Amendment to the 2005 Agreement: 16 1. The allocation of downpayment assistance in favor of a particular 17 homebuyer shall not exceed $62,500 to be applied to the payment of a portion of th 18 purchase price of a New Home to a Qualified Homebuyer (the "Agenc 19 Downpayment Assistance") and which shall be funded from the Agency approve 20 Low and Moderate Income Housing Funds in the total aggregate amount not t 21 exceed $500,000; 22 11. An additional allocation of downpayment assistance may be needed to aSSlS I' _J particular Qualified Homebuyers in excess of the amounts available in item i. abov 24 and shall be funded from the potential profits of the New Homes (the "Additiona 25 Agency Purchase Assistance") in an aggregate amount that is necessary to allow ~815-9755-59681 -1- P ",Agendas\ResoJutions\.ResolullOns\2006\02-06-06 Meadowbrook Park Humes CDC Resol doc Qualified Homebuyer, at either 120% or 80% of the County median income, a 2 applicable, to qualify for the Completed New Home purchase price payable by an. Qualified Homebuyer and meet the housing affordability costs requirements a 3 4 required under California Redevelopment Law; Transfer to the Developer the property located at 214 East 4th Street, San Bernardino 5 111. 6 California (APN: 135-142-19) (the "Agency Lot") for a purchase price of $90,000 fo 7 the development of an unrestricted market rate new home; 8 IV. Make other modifications to the 2005 Agreement related to the mechanics of th distribution of the "New Home Profit", if any, as the term is defined in the 2005 10 Agreement; and II WHEREAS, the Developer shall develop and improve the Agency Lot as transferred t 12 the Developer pursuant to the 2005 Agreement and the Amendment with a New Home, using th 13 design and improvement standards which are consistent with City Development Permit III No. 14 03-34, as previously approved by the Planning Commission on November 18,2003; and IS WHEREAS, the Agency has prepared and published a notice of a joint public hearing i 16 The San Bernardino County Sun Newspaper on January 23 and 30, 2006, regarding th 17 consideration and approval of the Amendment to the 2005 Agreement; and 18 WHEREAS, pursuant to Health and Safety Code Section 33433(c), the Agency ma 19 transfer the Agency Lot to the Developer subject to the Mayor and Common Council an 20 Community Development Commission adopting a Resolution authorizing the Agency to transfe 21 such Agency Lot in light of the findings set forth herein, pursuant to Health and Safety Cod 22 Section 33433; and 7' ~j WHEREAS, the Agency has prepared a Summary Report that describes the salient point of the Amendment to the 2005 Agreement and identifies the cost to the Agency of the dispositio 24 25 of the Agency Lot for development of an unrestricted market rate New Home; and 4R 15.9755.5968.1 -2- P \Agendas'.Resolutions',Resolutions\2006\02_06_06 Meado.....brook Park Homes CDC Reso I doc WHEREAS, pursuant to Health and Safety Code Section 33334.3(j) and in order t 2 3 comply with the requirements thereof, the Community Development Commission as th governing body of the Agency is required to make certain findings and determinations base upon substantial evidence as presented to the Community Development Commission to the effec that as the result of the increases in housing prices due to the escalating costs of labor an 4 5 6 materials within the City of San Bernardino since the date of the 2005 Agreement, the Agency 7 has incurred and paid expenditures from the Low and Moderate Income Housing Fund of th 8 Agency that exceed fifty percent (50%) of the cost of producing the New Homes to b constructed by the Developer upon the seven (7) Type A Agency Lots and the one (I) Type B 9 10 Agency Lot, and that the Developer has made a good faith attempt but has not been able t obtain commercial or private means of financing for the eight (8) New Homes upon the Type Agency Lots and the Type B Agency Lot at the same level of affordability and quantity a II 12 13 required by the Agency in accordance with the terms and provisions of the 2005 Agreement bu for the inclusion of the additional assistance as shaIl be obtained from the Agency from fund 14 attributable to the Low and Moderate Income Housing Fund as hereinafter set forth in thi 15 Resolution and in the Amendment to the 2005 Agreement. 16 17 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 18 FOLLOWS: 19 Section 1. 20 respects. 2] Section 2. The Recitals contained III this Resolution are true and correct III al 22 On February 6, 2006, the Community Development Commission and th Mayor and Common Council conducted a fuIl and fair joint public hearing and considered th l' ~~ written Agency Staff Report relating to the Amendment to the 2005 Agreement, the Summar Report and the testimony submitted relating to the disposition and development of the Agenc Lot by the Developer pursuant to the terms and conditions of the 2005 Agreement and th Amendment. The minutes of the City Clerk for the February 6, 2006, joint public hearing of th 24 25 4815-9755.5968.1 -3- P \Agendas\Resolutions ResoJulions\2006\02-06.06 Meado....brook Park I lames CDC Resol doc Community Development Commission and the Mayor and Common Council shall include 2 record of all communication and testimony submitted to the Community Developmen 6 Section 3. This Resolution is adopted in order to satisfy the provisions of Health an 3 Commission and the Mayor and Common Council at the joint public hearing by intereste 4 persons relating to the Summary Report, the sale of the Agency Lot and the approval of th 5 Amendment to the 2005 Agreement. 7 Safety Code Section 33433 as those provisions relate to the disposition of the Agency Lot to th 8 Developer on the terms and conditions set forth in the 2005 Agreement and the Amendment. The Community Development Commission hereby finds and determines as follows: 9 10 (i) The Summary Report contains the information described in Health and Safet II Code Section 33433(a)(2)(B); (ii) The disposition and development of the Agency Lot by the Developer i 12 accordance with the 2005 Agreement and the Amendment is consistent with th 13 affordable single family housing supply preservation and expansion programs 0 14 the Agency Housing Implementation Plan; 15 (iii) The terms and conditions of the 2005 Agreement and the Amendment contai 17 assurances that the Agency Lot will be developed by the Developer as a "Ne Home", as this term is defined in the 2005 Agreement and the Amendment; and 16 18 (iv) The disposition of Agency Lot to the Developer on the terms set forth in the 2005 19 Agreement and the Amendment shall assist in the elimination of the conditions 0 20 blight and in the area adjacent to the Agency Lot. 21 Section 4. The Community Development Commission hereby finds and determine 22 that the environmental review of the approved 2005 Agreement, the Amendment to the 2005 )' _J Agreement and the development activities contemplated thereunder are "categorically exempt' and no potentially adverse environmental effects are anticipated to be associated with th development of the Agency Lot, and a Notice of Exemption under California Environmenta 24 25 ~815-q755-5968 I -4- I' .\l!eIlJh'_Re~oluIIO'h Resolutlons':::006,02-06-06 Meaduwbrook Park Homes (DC Reml doc Quality Act ("CEQA") relating to the development as defined therein will be filed with th 2 County Clerk. 3 Section 5. The Community Development Commission hereby receives and approve 4 the Summary Report and the Amendment to the 2005 Agreement in the form as submitted at thi 5 joint public hearing. Section 6. The Community Development Commission hereby further finds an 6 7 determines, pursuant to the requirements of Health and Safety Code Section 33334.3(j) an 8 based upon evidence as presented to the Community Development Commission at the join 9 public hearing referred to hereinabove in this Resolution in the form of the Agency Staff Repo 10 and/or all oral presentations as made by Agency Staff, that as the result of the increases i II housing prices due to the escalating costs of labor and materials within the City of Sa 12 Bernardino since the date of the 2005 Agreement, the Agency has incurred and paid expenditure from the Low and Moderate Income Housing Fund of the Agency that exceed fifty percen (50%) of the cost of producing the affordable New Homes to be constructed by the Develope 13 14 upon the seven (7) Type A Agency Lots and the one (1) Type B Agency Lot ("Agency Lots") 15 and that the Developer as the owner of the New Homes, prior to the sale thereof to Qualifie 16 Homebuyers, subject to the 45 year Regulatory Agreement being included as a condition of eac 17 such sale, has made a good faith attempt, but has not been able to, obtain commercial or privat 18 means of financing for the eight (8) New Homes upon the Agency Lots at the housin 19 affordability levels as required by the Agency in accordance with the terms and provisions of th 20 2005 Agreement and the Amendment. 21 Section 7. The Community Development Commission hereby approves th 22 disposition of the Agency Lot to the Developer on the terms set forth in the 2005 Agreement an 7' _J the Amendment to the 2005 Agreement and hereby authorize the Interim Executive Director t 24 execute the Amendment to the 2005 Agreement on behalf of the Agency, and the Interi 25 Executive Director of the Agency is hereby authorized to make minor corrections, additions clarifications and interpretations to the Agreement, provided, however, that said changes are no 4815-9755-5968 I -5- I I' AgcnJas ResolUlion, Resolutions ~006 1)~-0t>-06 \leadllv.brook Parl... Homes rDC Resol doc substantive in nature, do not increase the monetary impact to the Agency and are consented to b 2 Agency Counsel. 3 Section 8. 4 /II 5 /II 6 /II 7 /II 8 /II /II 9 /1/ 10 /1/ 11 /1/ 12 /11 13 //1 14 /11 ] 5 /11 ]6 II/ 17 /1/ 18 //1 19 /1/ 20 /1/ 21 /1/ 22 //1 7' /11 _J 24 25 4815-9755-5968 ] This Resolution shall take effect upon its adoption and execution. P '.Agendas\ResolulionsResolullons\2006\02-06-06 Meado"brook Park Homes coe Resol doc -6- 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO EXECUTE AN AMENDMENT TO THE 2005 MEADOWBROOK SINGLE-FAMILY RESIDENTIAL DEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY AND MEADOWBROOK PARK HOMES, INC., AND MAKING CERTAIN FINDINGS AND DETERMINATIONS (CENTRAL CITY EAST REDEVELOPMENT PROJECT AREA) 3 4 5 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Communit 7 Development Commission of the City of San Bernardino at a meetin 8 thereof, held on the day of , 2006, by the following vote to wit: 9 Commission Members: Ayes Nays Abstain Absent 10 ESTRADA LONGVILLE MCGINNIS DERRY KELLEY JOHNSON MC CAMMACK 11 12 13 14 15 16 17 18 Secretary 19 The foregoing resolution is hereby approved this day of ,2006. 20 21 22 Judith Valles, Chairperson Community Development Commission of the City of San Bernardino 23 Approved as to form and Legal Content: 24 By: 25 4815-9755-5968 I -7- P \Agelldas\R(:solulions\Resolutlons\2006\02-06-06 Meadowbrool.; Park Homes CDC Resol doc AMENDMENT TO THE 2005 MEADOWBROOK SINGLE FAMILY RESIDENTIAL DEVELOPMENT AGREEMENT (Meadowbrook Neighborhood Restoration Area) THIS AMENDMENT TO THE 2005 MEADOWBROOK SINGLE FAMILY RESIDENTIAL DEVELOPMENT AGREEMENT (this "Amendment") is dated as of February 6, 2006, by and between Meadowbrook Park Homes, Inc., a California corporation (the "Developer"), and the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Agency"), and is entered into in light of the facts set forth in the following Recital paragraphs: -- RECITALS -- A. The Developer and the Agency have previously entered into an agreement entitled "2005 Meadowbrook Single Family Residential Development Agreement", dated as of January 10, 2005 (the "Agreement"). B. As of the effective date of this Amendment, the Developer has acquired ten (10) of the "Agency Lots", as this term is defined in the Section 1.01(b) of the Agreement. C. The Developer and the Agency believe it is appropriate to consider and approve this Amendment in order that: (i) the Agency has provided a program of secondary mortgage loan assistance in the form of the Agency Downpayment Assistance to Qualified Homebuyers of Completed New Homes in the Project whose income levels do not exceed one hundred and twenty percent (120%) of County median income for the seven (7) New Homes to be built upon the Type A Agency Lots as defined in the Agreement and eighty percent (80%) of County median income for the one (I) New Home to be built upon the Type B Agency Lot as defined in the Agreement; (ii) in addition to the Agency Downpayment Assistance and in order to make certain other modifications to the Agreement as the same relate to the mechanics for the distribution of the "New Home Profit", if any, as said term is defined in the Agreement between the Developer and the Agency and the use of the potential New Home Profit for purposes of funding either in whole or in part the Additional Agency Purchase Assistance; and (iii) to include within the scope of the Agreement one (I) additional Agency parcel ofIand as a Type C Agency Lot as defined in the Agreement. D. Pursuant to Health & Safety Code Section 33334.3(j) and in order to comply with the requirements thereof, the governing body of the Agency has made certain findings and determinations based upon substantial evidence as presented to said governing body as referenced in the approving Resolution for this Amendment stating to the effect that as the result of the increases in housing prices due to the escalating costs of labor and materials within the City of San Bernardino since the date of the Agreement, the Agency has incurred and paid expenditures from the Low and Moderate Income Housing Fund of the Agency that exceed fifty percent (50%) of the cost of producing the New Homes to be constructed by the Developer upon the seven (7) Type A Agency Lots and the one (I) Type B Agency Lot, and that the Developer as the owner of the New Homes prior to the sale thereof to Qualified Homebuyers, subject to the I 4828-6909-95201- 9/19/05jmm P \AgendaslAgenda AuachmenlslAgrmls-Amend 2006\02-06-06 Amendment !o Meadowbrook DDA doc Regulatory Agreement being included as a condition of each such sale, has made a good faith attempt but has not been able to obtain commercial or private means of financing for the eight (8) New Homes upon the Type A Agency Lots and the Type B Agency Lot at the same level of affordability and quantity as required by the Agency in accordance with the terms and provisions of the 2005 Agreement. NOW. THEREFORE, THE DEVELOPER AND THE AGENCY DO HEREBY AGREE AS FOLLOWS: Section 1. (a) Unless the context of the usage of a term or phrase in this Amendment may otherwise require, the meaning of words and phrases in this Amendment, which are indicated by an initially capitalized letter, shall be the same as set forth in the Agreement. (b) The Recitals of this Amendment are true and correct. (c) reference. The text of the Agreement is hereby incorporated into this Amendment by this Section 2. This Amendment sets forth the terms and conditions of an amendment to the text of the Agreement. This Amendment integrates all of the terms and conditions mentioned herein and supercedes all negotiations, discussions, and understandings between the parties with respect to the Project and the Agreement as hereby modified by this Amendment, including all items of assistance, which the Agency shall provide to the Developer under the Agreement as moditted by this Amendment. Section 3. The Effective Date of the Agreement occurred on January 10, 2005. The parties recognize that the public hearing required pursuant to Section 1.05(c) of the Agreement has been duly conducted by the Agency and such provisions of said Section shall no longer be a condition precedent to the transfer of any of the Agency Lots to the Developer. Section 4. The text of Section 1.0 I (b) of the Agreement is hereby modified to add new defined terms for "Additional Agency Purchase Assistance" and "Effective Date of the Amendment to the Agreement" and the other modifications as set forth below to the other previously defined terms as set forth in the Agreement: "Additional Agency Purchase Assistance. The words "Additional Agency Purchase Assistance" mean and refer to that amount of additional subsidy to be provided by the Agency in addition to the Agency Downpayment Assistance in the manner and subject to the terms and provisions as provided in this Amendment. It is anticipated that the Additional Agency Purchase Assistance for each New Home to be sold to a Qualified Homebuyer for purposes of maintaining the affordability housing costs covenants for the New Homes, whose income does not exceed either 120% or 80% of County median income, as applicable, will be funded first from the potential New Home Profit from each sale of a New Home to the extent needed and then from a deferral of the Agency Lot Purchase Price, if and to the extent required, and in the manner as provided in Section 4.08. In the event additional downpayment assistance amounts are still required after the application of the sources of funds specified in the preceding sentence, the Developer 4828-6909-9520.1- 9119/05 jmm P \Agendas\Agenda A1l3chments\Agrnus-Amend 2006\02-06-06 Amendment to Meadowbrook DDA doc 2 shall have the sole obligation to provide such other financing as may be legally permissible under the circumstances to accomplish the sale of the New Homes to Qualified Homebuyers." Agency Downpayment Assistance, second sentence shall read as follows: 'The amount of such Agency Downpayment Assistance in favor of a particular Qualified Homebuyer shall not exceed $62,500 for that portion as shall be funded from the Agency Low and Moderate Income Housing Fund plus such additional amounts to be funded from the deferral of the Agency Lot Purchase Price as provided in Section 4.08(d) and the potential profits of the New Homes in an aggregate amount that is necessary to provide downpayment assistance to allow a Qualified Homebuyer to qualify at either 120% or 80% of County median income, as applicable, based upon the Completed New Home purchase price payable by any Qualified Homebuyer in order to assure compliance with the affordability covenants relative to the purchase price of the Completed New Homes." Agency Lot Purchase Price shall be amended by the addition of a new subparagraph (iv) to read as follows: "(iv) for a Type C Agency Lot as added pursuant to this Amendment, the Agency Lot Purchase Price shall be equal to $90,000; such additional Type C Agency Lot is located at 214 East 4th Street, San Bernardino, California (APN: 0135-142-19). "Effective Date of the Amendment to the Agreement. The words "Effective Date of the Amendment to the Agreement"' mean and refer to the date on which the Amendment, as approved by the governing board of the Agency on February 6, 2006, has been fully executed by the officers or representatives of the parties." Neighborhood Restoration Area shall be amended to read as follows: 'The words "Neighborhood Restoration Area" mean and refer to the areas within the City of San Bernardino within which the Agency has designated for purposes of revitalizing and restoring the housing stock thereof which for purposes of this Amendment includes the lands identified in the vicinity map attached to this Amendment as Exhibit "A" and the property located at 214 East 4th Street, San Bernardino, California (APN: 0135-142- 19)."' New Home Sales Costs shall be amended as follows: "(I) the Additional Agency Purchase Assistance and the Agency Lot Purchase Price, whether or not there has been a deferral of the actual payment thereof as authorized by Section 4.08(d) hereof, plus the actual and reasonable escrow and title insurance costs paid by the Developer for the purchase of the Agency Lot through the Agency Lot Transfer Escrow;" "(9) a Developer overhead fee of five percent (5%) of the cost items under (2), (3), (5) and (6), above, provided that the construction lender may allow either a fixed dollar amount or a lesser percentage amount to be funded from the proceeds of a construction loan for the New Homes; in such case the final calculation of the Developer overhead fee 4828-6909-9520.1- 9119/05 jmm P \Agendas\Agenda Auachmems\Agrmts-Amend 2006\02-Q6-0tl Amendmenllo Meadowbrook DDA doc 3 shall be reconciled at the time and in the manner as set forth in Section 4.10 hereof so that said fee is equal to an amount not greater than said five percent (5%) figure; and" "( I 0) a Developer profit allowance of ten percent (10%) of the gross sales price of the Completed New Home on the Agency Lot; provided, however, that upon the sale of each such Completed New Home, no Developer profit allowance shall be paid in cash to the Developer upon the sale and close of escrow only if either the Agency has deferred any portion of the Agency Lot Purchase Price or there remains any unpaid balance of the Agency Lot Purchase Price that is then secured by a deed of trust on the Type C Agency Lot, and the final determination of said Developer profit allowance shall be calculated at the time and in the manner as set forth in Section 4.10 hereof upon the Release Date." Section 5. The parties agree that the Type B Agency Lot shall be sold to the Developer for a consideration equal to $100 payable upon the Effective Date of the Amendment to the Agreement. The parties recognize that the fee title transfer from the Agency to the Developer of the Type B Agency Lot has previously occurred, and, upon payment of the $100 consideration amount, the Agency shall release the promissory note and reconvey any security interests in the Type B Agency Lot to the Developer. All provisions of Section 2.15( c) and Section 2.17 shall be deemed to be automatically amended to conform with the intent hereof to eliminate the requirement for any promissory note, deed of trust or any formula for the calculation of a greater purchase price for the Type B Agency Lot. The parties shall mutually prepare a Memorandum of Understanding that shall contain a composite recitation of the remaining provisions of Sections 2.15( c) and 2.17 that shall continue to be applicable to the use and subsequent transfer of the Type B Agency Lot to a Qualified Homebuyer. Such Memorandum of Understanding shall also set forth any other references contained elsewhere in the Agreement that additionally shall be deemed modified by the intent hereof. Section 6. As of the Effective Date of the Amendment to the Agreement, Sections 4.08(c), (d) and (e) of the Agreement are hereby amended to read as follows: "Section 4.08. Agency Downpayment Assistance and Additional Agency Purchase Assistance to Qualified Homebuvers. (c) The amount of the Agency Downpayment Assistance, to be provided from the $500,000 amount as made available by the Agency from the Agency Low and Moderate Income Housing Fund shall not exceed $62,500 for each of the eight (8) combined Type A Agency Lots and the Type B Agency Lot subject to further provisions contained in (d) below; (d) The Agency has the discretion to provide, or make available additional sums to pay for the Agency Downpayment Assistance or other amounts, in addition to the amounts as specifically referred to and set aside under Section 4.08(a) above. Such additional sums as committed by the Agency pursuant to this Amendment shall include the Additional Agency Purchase Assistance as provided herein; however, the total amount of down payment assistance of which a portion shall be funded from the potential profits of the sale of the New Homes, when added to the above set forth dollar amount of the Agency Downpayment Assistance as allocated for each New Home shall not exceed that amount of the combined Agency Downpayment Assistance and the 4828-6909-9520.1- 9/19105 jmm p 'Agendas\Agenda Anachments\A~rmts-Amend 2006\O:!-06.06 Amendment to Meado.....brook DDA doc 4 Additional Agency Purchase Assistance which is required to be provided to one or more Qualified Homebuyers to qualify at 120% or 80% of County median income, as applicable, and subject to compliance with the applicable affordability housing costs covenant based upon the Completed New Home purchase price payable by any Qualified Homebuyer, and all such amounts shall be disbursed for the account of such Qualified Homebuyer through the applicable New Home Escrow. Additionally, the Developer may request that the Interim Executive Director consider and approve the deferral of the payment of any Agency Lot Purchase Price for funding additional shortfall amounts as Additional Agency Purchase Assistance in addition to the required Agency Downpayment Assistance for the sale of a particular New Home to a Qualified Homebuyer if it is demonstrated in writing to the sole satisfaction of the Interim Executive Director that the portion of the Agency Lot Purchase Price as thus requested to be deferred will be secured as to the repayment thereof by the deeds of trust on the Type C Agency Lots. Such deferred amounts, if any, as included within the Additional Agency Purchase Assistance shall be jointly and severally secured by each of the Type C Agency Lots as then owned by the Developer and shall be paid as to principal and interest upon the earlier to occur of (i) the sale of the first of the Type C Agency Lots with a New Home or (ii) one hundred twenty (120) calendar days from the date of such deferred amount, unless a prepayment has been remitted to the Agency at the option of the Developer. Any payment of such deferred amount upon the sale of the first of the Type C Agency Lots or any prepayment of the amounts owed to the Agency as such deferral amount shall include the principal amount and accrued and unpaid interest thereon calculated from and after one hundred twenty (120) calendar days from the date of such deferred amount to the date of such payment or prepayment at the annual rate of interest equal to six percent (6.0%) per annum. (e) Notwithstanding any other provlSlon of this Section 4.08, the Agency shall have no obligation to fund any Additional Agency Purchase Assistance or any Agency Downpayment Assistance loan for a Qualified Homebuyer of a Completed New Home on any Developer Lot after March 31, 2007." Section 7. As of the Effective Date of the Amendment to the Agreement, Sections 4.09(b), (c), and (d) of the Agreement is hereby amended to read as follows: "Section 4.09. Agency Participation in New Home Profit. (b) The Developer hereby agrees to pay to the Agency fifty percent (50%) of the New Home Profit realized by the Developer upon the completion of the sale of the entire eight (8) New Homes on the Type A Agency Lots and the Type B Agency Lot in the manner and at the time as provided in Section 4.10. The New Home Profit payment by the Developer to the Agency shall be an amount, which is in addition to the sum payable by the Developer to the Agency as the Agency Lot Purchase Price or any deferral thereof as set forth in Section 4.08( d). (c) The Developer shall pay the Agency the applicable amount of the New Home Profit at the time set forth in Section 4.10. 4828-6909-9520 1- 9/19105 jmm p ',Agendas\Agenda A1l3chlllents\Agrmts-Amend ZOU6\02.06.06 Amcndmenl to Meadowbrook DDA doc 5 (d) The Developer shall prepare and deliver to the Agency its New Home Sales Costs Certificate for all eight (8) of the Completed New Homes within sixty (60) days following the close of the New Home Escrow for the last of the eight (8) Completed New Homes as set forth in Section 4.10. The Agency shall have the right to conduct and complete a financial audit of the information presented in such New Home Sales Costs Certificate at the expense of the Agency in accordance with generally accepted accounting principles as provided in Section 4.07 at anytime either prior to the Release Date and for a period of time not to exceed sixty (60) calendar days after the Release Date. The Developer shall cooperate with the Agency and its agents in the conduct of any such audit of the financial information set forth in the New Home Sales Costs Certificate, including the delivery to the Agency upon request of underlying construction or service contracts and invoices for services performed or products delivered to the Developer by third parties relating to the Project." Section 8. As of the Effective Date of the Amendment to the Agreement, the Agreement is hereby modified to add a new Section 4.10, which reads as follows: "Section 4.10. Distribution of New Home Profit Upon the Release Date. (a) Subject to the provisions of Sections 4.09(d) and 5.05, the obligations of the Developer as arise in favor of the Agency under Article III and Article IV of this Amendment shall terminate thirty (30) days after the date on which each of the following has occurred and it is anticipated that each of the following items which are under the sole control and direction of the Developer will occur within sixty (60) days after the completion and sale of the last of the eight (8) New Homes on the Type A Agency Lots and the Type B Agency Lot: (i) the Developer has completed the construction of all of the New Homes on each of the Type A Agency Lots and the Type B Agency Lot and has caused each Completed New Home to be sold to a Qualified Homebuyer; (ii) the New Home Escrow Holder has delivered to the Agency final copies of both the buyer's and the seller's escrow settlement statements for each of the New Home Escrows for the New Homes described in (i) above; (iii) the Agency has received from the Developer a New Home Sales Costs Certificate for the Completed New Homes identified in (i) above and the Developer has prepared a suitably detailed reconciliation of the amounts of the New Home Profit and setting forth as the actual amount of the New Home Profit available for distribution to the Developer and the Agency on the Release Date; such New Home Sales Costs Certificate shall also set forth the amounts actually received by the Developer as the Developer overhead fee as item (9) of the definition of New Home Sales Costs, the amount of the profit received by the Developer as item (10) of the definition of New Home Sales Costs, the amount of the Additional Agency Purchase Assistance and any deferral of the Agency Lot Purchase Price; 4828-6909-95201- 9119105 jmm P ',Agendas\Agenda Attachments\Agrmu-Amend 2006\02-06.06 Amendment to Meadowbrook DDA doc 6 (iv) the Developer has delivered to the Agency a check in the amount of the New Home Profit as calculated by the Developer in accordance with Section 4.08; for purposes of such calculation, the Developer shall assume that the Agency Lot Purchase Price has been paid at the time of the sale of the applicable New Home for any deferral of the Agency Lot Purchase Price that is then secured as to the repayment thereof by the Type C Agency Lots; the Developer shall also assume that the Additional Agency Purchase Assistance is an expense item as set forth in the item (1) of the definition of New Home Sales Costs for purposes of calculating the New Home Profit; and (v) the Developer is not in material default under this Amendment. (b) The "Release Date" as this term is used in Section 4.09 and Section 4.10(c) shall occur when the provisions of Section 4.10(a) have been satisfied. On or before sixty (60) calendar days from and after the Release Date on which the Agency has received the New Home Sales Costs Certificate under subparagraph (iii) and the check for the amount of the New Home Profit pursuant to subparagraph (iv), the Agency shall have the right to conduct such independent audit or review of the Developer's financial records of the Project as the Agency may in its discretion undertake in accordance with Section 4.07. (c) Prior to the Release Date, no portion of the New Home Profit, if any, as may be payable to the Developer, shall be distributed to any partner, member, manager, shareholder, affiliate or employee of the Developer. The Agency shall receive as a priority distribution of the amount of any deferred Agency Lot Purchase Price that was deferred in the manner provided in Section 4.08(d), plus interest from the date which is one hundred twenty (120) calendar days after the deferral of the Agency Lot Purchase Price to the payment date to the Agency in whole of said deferred amount, with such priority payment to be made from the sale of the first of the Type C Agency Lots. The Developer shall be entitled to the Developer profit allowance as provided in the definition of New Home Sales Costs item (10) provided that there are no deferrals of the Agency Lot Purchase Price or all such deferrals of the Agency Lot Purchase Price have been repaid in whole and thereafter the profits, if any, payable to the Agency and the Developer shall be calculated upon the Release Date in the manner as set forth in Section 4.09 as the New Home Profits," Section 9. Except as modified or amended by this Amendment, all of the provisions of the Agreement shall remain in full force and effect following the Effective Date of this Amendment. / / / !Ii Ii! !Ii 4828-6909-9520 1- 9/19/05 jmm P \A!;endas\Agenda AnachmentslAgrmts-Amend 1006\02-06.06 Amendment 10 Meadowbrool..: DDA doc 7 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment to the Agreement as of the dates set forth below. AGENCY Redevelopment Agency of the City of San Bernardino, a public body corporate and politic Date: By: Maggie Pacheco, Interim Executive Director APPROVED AS TO FORM: ;(!)ULt/i1;/ (2/{tll/~ Agency Cot} sel DEVELOPER Meadowbrook Park Homes, Inc., a California corporation Date: By: 4828-6909-9520 1- 9/19/05 jmm P \Agendas'Agenda AllacnmCllIs'.Agrmts-Amend 2006\m-06-06 Amendmenllo Meadowbrook DDA doc 8 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment to the Agreement as of the dates set forth below. AGENCY Redevelopment Agency of the City of San Bernardino, a public body corporate and politic Date: By: Maggie Pacheco, Interim Executive Director APPROVED AS TO FORM: Agency Counsel DEVELOPER Meadowbrook Park Homes, Inc., a California corporation Date: By: 4828.6909-9520.1- 9/J 9/05 jrnrn P \AgendaslAgenda Allichments\Agrmts-Amend 2006\02.06-06 Amendment to Meadowbrook DDA doc 8 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment to the Agreement as of the dates set forth below. AGENCY Redevelopment Agency of the City of San Bernardino, a public body corporate and politic Date: By: Maggie Pacheco, Interim Executive Director APPROVED AS TO FORM: Agency Counsel DEVELOPER Meadowbrook Park Homes, Inc., a California corporation Date: By: 4828-6909-9520.1- 9119/05 jmm P \Agendas\Agenda AUachmems',Agrmts-Amend 2006\02.06-06 Amendmem to Meadowbrook DDA doc 8 EXHIBIT "A" Legal Description and Vicinity Maps LEGAL DeSCRIPTION Real property in the Oty of San Bernardino, County of San Bernardino, State of California, described as follows: Lot 3, Block "A", Cypress Tract, in the County of San Bernardino, State of California, as per plllt recorded in book 3 of maps, page (5) 85, records. of said county. APN: 0135-142-19-0-00 il3H1S N311V I --.J 30N3^V NVWHllVM - - II> "" ~ a.. @ @ @ @ @ @ @ @ @ e c @ g e ~ @ e @ G @ e @ e @ e @ <3 @ 0 @ @ @ @ @ .... ... ... a: .... VI o z o u ... VI ... .. 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I I - on - I - J ' , I J __ -' 1-- -0 --]~H*, -- -- -- - -- -- - -- -- -+ - -- -- - - - -- --itB7~HIIt-.. , J ' , , I '"' ;t ;;l; ;!; I .. I H II I I I <> r ,_ -= __ -lffiH- -- -- - - -- - -- __..l -{l-lHW -- -- -- -- ~H.tJlm= -- _...J I H II ..!. ... 0:' " @ ~ II H. ..~ N ~@.., ------------- " ~ ;;; @ N @ ~ 0 @ N ~ - L j N @ ~ ~ @ N @ ~ :! @ N @ m ( ) :::: @ N ~ :!! @ N " ------------- @ :;: ~ @ ;:; :;! @ ------------- @ N :;:! @ ~ ------------- " ~ :::! @ ~ " :J; @ @ " @~ ~@ -- ~ @~ ~@ o ~ @~ m@ o ~ .. r" .. @N ~0 o ~ @m ( ) ~@ o ~ ~ @~ ~0 " o ~ @o ~@ o ~ @-- ~@ o ~ @N N@ o ~ " @~ -@ o ~ '" , '" J ;!: T ::r; :;;; f I '@ d, T t""! ~ o ~ ~ o . . c j ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** RESOLUTION AGENDA ITEM TRACKING FORM M~"", Tho' (D" AId'.;' . b - 0), !<m # I< 'J- q Ii ",,,to""" . Vote: Ayes Nays _ Abstain Change to motion to amend original documents 0 Companion Resolutions !}tJOh ~ 3 ro Absent ~ 7 NulVVoid After: days / Resolution # On Attachments: 0 Note on Resolution of attachment stored separately: 0 PUBLISH 0 POST 0 RECORD W/COUNTY 0 By: Date Sent to Mayor: 'J J '7, (9 it Date of Mayor's Signature: '). 'g ,0 t-. Date of ClerklCDC Signature: r;r,- Cj' 0 fc. Reso. Log Updated: JLY:- Seal Impressed: jzr' /' Reso. # on Staff Report 6 Date Memo/Letter Sent for Signature: I" Reminder Letter Sent: Date Returned: 2nd Reminder Letter Sent: Not Returned: 0 Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413,6429,6433,10584, 10585, 12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985, 8234, 655, 92-389): yes/ No By_ No~'BY_ No ~. By ----,-, NO~~ No_ By_ Yes Yes Yes Yes Copies Distributed to: ~ Animal Control 0 EDA Information Services 0 City Administrator V Facilities 0 Parks & Recreation 0 City Attorney Finance 0 Police Department 0 Code Compliance 0 Fire Department 0 Public Services 0 Development Services 0 Human Resources 0 Water Department 0 Others: Notes: / ,/ V Ready to File: _ J-'O ,/;70 Date. ( Revised 12/18/03 ** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT ** Meeting Date (Date AdopLC: Vote: Ayes RESOLUTION AGENDA ITEM TRACKING FORM I a.-f,/00 Item # R,)1 8 Resolution~~b- 0 Absent ~ 7 Nays Abstain Change to motion to amend original documents 0 Companion Resolutions NulVVoid After: days / Resolution # On Attachments: 0 Note on Resolution of attachment stored separately: 0 PUBLISH 0 POST 0 RECORD W/COUNTY 0 By: Reso. Log Updated: 0 Seal Impressed: 0 Reso. # on Staff Report 0 Date Sent to Mayor: Date of Mayor's Signature: Date of ClerklCDC Signature: Date Memo/Letter Sent for Signature: I" Reminder Letter Sent: Date Returned: 2nd Reminder Letter Sent: Not Returned: 0 Request for Council Action & Staff Report Attached: Updated Prior Resolutions (Other Than Below): Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634): Updated CDC Personnel Folders (5557): Updated Traffic Folders (3985,8234,655,92-389): Yes No By_ Yes No By_ Yes No By_ Yes No By_ Yes No By_ Copies Distributed to: ~ Animal Control 0 EDA Information Services 0 City Administrator 0 Facilities 0 Parks & Recreation 0 City Attorney 0 Finance 0 Police Department 0 Code Compliance 0 Fire Department 0 Public Services 0 Development Services 0 Human Resources 0 Water Department 0 Others: Notes: Ready to File: _ Date: Revised 12/18/03 City of San Bernardino ECONOMIC DEVELOPMENT AGENCY Redevelopment. Communffy Development. Housing. Business: RScnJitment, Retention, Revitalization. Main Street. Inc. ON February 14, 2006 Meadowbrook Park Homes, Inc. Attention: George Jordan or Agustin Rodriguez 10702 Hathaway Drive, Suite 1 Santa Fe Springs, California 90670 RE: Amendment - 2005 Meadowbrook Single Family Residential Development Agreement Dear Mr. Jordan or Mr. Rodriguez: Enclosed for your records is the fully executed Amendment as referenced above that was approved by the Community Development Commission of the City of San Bernardino on February 6, 2006 (Resolution CDC/2006-6). ould you have any questions regarding this matter, please feel free to call me at (909) 663-1044. S Wasana A. Chantha Secretary cc: Ji('arbara Lindseth (with Original Executed Amendment) /Eileen Gomez (with Original Executed Amendment) Musibau Arogundade (with Copy of Executed Amendment) 201 North E Street, Sune 301 . San Bernardino. California 92401-1507 . (909) 663-1044 . Fax /909) 888-9413 www.sanbemardino-eda.org.