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Home My WebLink AboutR6-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO . REQUEST FOR COMMISSIONICOUNCIL ACTION ~(Q)~W FROM: TIMOTHY C. STEINHAUS Agency Administrator SUBJECT: AUTHORIZATION TO SELL MOBILEHOME PARKS TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION DATE: July 16, 1997 ------------------------------------------------------------------------------------------------------------------------------ Synopsis nfPreviolls Commission/Council/Committee Actinn(.s); ---------------------------------------------.-------------------------------------------------------------------------------------- Reenmmended Motion(..1;): OPEN PUBLIC HEARING CLOSE PUBLIC HEARING (Mayor and Common Council) . MOTION A: RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF ORANGEWOOD MOBILE ESTATES FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. (Motions Continued on Next Page) TIMOT . STEINHAUS Agency Administrator ------------------------------------------------------------------------------------------------------------------------------ Contact Person(s): Timothy C Steinhaus Phone: _____-5fiSL Project Area(s): ~ Ward(s): __~___ Supporting Data Attached: Staff Report;-Resolutions FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A Budget Authority: None ------------------------------------------------------------------------------------------------------------------------------- C..nmmi"ion/ConDr.iI Note~: RiP It- Res 97- ;l J..?J Rf.,8 - Res 97- :;.~'i e IZ~C - Res 97- ;,;.~ (1.(PD~ Res 97- .J ;). (p R(P E - Res 97- ;).1).1 COMMISSION MEETING AGENDA MEETING DATE: 07121/1997 Agenda Item Number: g ~O . . . ECONOMIC DEVELOPMENT AGENCY Request for Commission/Council Action July 16, 1997 Page 2 ---------------------------------------------------------------------------------------------------------------------.- Recommended Motion(s) Continued: MOTION B: MOTION C: MOTION D: MOTION E: (Mayor and Common Council) RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF FRIENDLY VILLAGE MOBILEHOME PARK FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF PACIFIC PALMS MOBILEHOME PARK FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF NINTH STREET MOBILEHOME PARK FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF TROPICANA MOBILE ESTATES FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. -------------------------------------------------------------------------------------------------------- TCS:lmp:slmblhm.cd COMMISSION MEETING AGENDA MEETING DATE: 07/21/1997 \0 Agenda Item Number: . . . ECONOMIC DEVELOPMENT AGENCY Request for Commission/Council Action July 16, 1997 Page 3 MOTION F: MOTION G: MOTION H: MOTION I: MOTION J: TCS:Imp:sImblhm.cd (Cnmmunity Development Commission) RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF ORANGEWOOD MOBILE ESTATES FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF FRIENDLY VILLAGE MOBILEHOME PARK FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF PACIFIC PALMS MOBILEHOME PARK FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF NINTH STREET MOBILEHOME PARK FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, APPROVING THE TRANSFER OF TROPICANA MOBILE ESTATES FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO TO THE SAN BERNARDINO MOBILEHOME PARK CORPORATION. COMMISSION MEETING AGENDA MEETING DATE: 07/21/1997 ~ Agenda Item Number: e e e ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Allthori711tion to Sell Mohilehome Parks to IheBanJkmardino Mohilehome PJlrkCmpmation BACKGROlJND Pacific Palms Mohilehome Park The Pacific Palms Mobilehome Park ("Pacific Palms") was acquired by the Agency on December 19,1995. Pacific Palms is located at 2727 East Pacific Street in the City of San Bernardino, California and consists of 142 mobilehome spaces. Pacific Palms was financed with the proceeds of the $3,375,000 San Bernardino Joint Powers Financing Authority, Multifamily Housing Revenue Bonds (Pacific Palms Mobilehome Park Project) Series 1995, and previously approved funds received pursuant to the HOME Investment Partnerships Program established under the HOME Investment Partnerships Act (42 USC Section 12701, e1 seq., 24 CFR Part 92) ("HOME Funds"). The amenities at Pacific Palms include two recreation buildings, two heated swimming pools, a spa, barbeque and tot lot. Friendly Village Mohilehome Park The Friendly Village Mobilehome Park ("Friendly Village") was acquired by the Agency on June 27,1995. Friendly Village is located at 2121 W. Rialto Avenue in the City of San Bernardino, California, and consists of 85 mobilehome spaces. Friendly Village was financed with the proceeds of the $2,220,000 San Bernardino Joint Powers Financing Authority, Multifamily Housing Revenue Bonds (Friendly Village Project) Series 1995, and previously approved HOME Funds. The amenities at Friendly Village include a clubhouse, pool, basketball court and tot lot. Orangewood Mohile Estates Orangewood Mobile Estates ("Orangewood") was acquired by the Agency on June 29, 1995. Orangewood is located at 2160 W. Rialto Avenue in San Bernardino and consists of 156 mobilehome spaces. Orangewood was financed with the proceeds of the $3,255,000 San Bernardino Joint Powers Financing Authority, Multifamily Housing Revenue Bonds (Orangewood Estates Project) Series 1995, and previously approved HOME Funds. The amenities at Orangewood include a clubhouse, pool, laundry/restroom building, picnic area and tot lot. TCS:lmp:slmblhm.cd COMMISSION MEETING AGENDA MEETING DATE: 07121/1997 ~ Agenda Item Number: e e e Economic Development Agency Staff Report Request to Sell Mobilehome Parks July 16, 1997 Page 2 ------------------------------------------------------------------------------------------------------------------------- Tropicana Mohile E~tate~ Tropicana Mobile Estates ("Tropicana") was acquired by the Agency on June 6, 1995. Tropicana is located at 721 E. 9th Street in San Bernardino and consists of 146 mobilehome spaces. Tropicana was financed by the Agency with the proceeds of the $3,175,000 San Bernardino Joint Powers Financing Authority, Multifamily Housing Revenue Bonds (Tropicana Mobile Estates Project) Series 1995A and the $100,000 San Bernardino Joint Powers Financing Authority, Subordinate Multifamily Housing Revenue Bond (Tropicana Mobile Estates Project) Series 1995B and previously approved HOME Funds. The amenities at Tropicana include a heated pool, indoor spa and picnic area. Ninth Street Mohilehome Park The Ninth Street Mobilehome Park ("Ninth Street") was acquired by the Agency on February 27, 1996. Ninth Street is located at 780 East 9th Street in San Bernardino and consists of 108 mobilehome spaces. Ninth Street was financed by the Agency with the $1,350,000 Redevelopment Agency of the City of San Bernardino, Multifamily Housing Revenue Notes (Ninth Street Mobile Home Park Project) Series 1996, and previously approved HOME Funds. The amenities at Ninth Street include laundry facilities and a playground. TRANSFER OF MORTLEHOMEl'ARKS The Mobilehome Park Conversion Program (the "Program") as adopted by the Mayor and Common Council and the Community Development Commission in December 1993, was established by the Agency to increase the availability of housing within the City of San Bernardino to low- and moderate-income persons. It was originally contemplated that the Agency would acquire mobilehome parks in San Bernardino from private owners with title vesting in the name of the Agency for an initial period of time. The Agency would hold title until the necessary filings and approvals could be obtained for eventual ownership of the mobilehome parks by the nonprofit corporation formed for each park. Pursuant to the Program, the Agency has formed The San Bernardino Mobilehome Park Corporation (the "Corporation"), a California nonprofit corporation organized pursuant to Articles of Incorporation filed with the California Office of the Secretary of State on May 2, 1996. The Corporation oversees the operations of the individual California nonprofit corporations which have been formed for each of the mobilehome parks pursuant to Articles of Incorporation filed with the California Secretary of State in 1996. ------------------------------------------------------------------------------------------------------------------ TCS:lmp:slmblhm.cd COMMISSION MEETING AGENDA MEETING DATE: 0712111997 \0 Agenda Item Number: e e e Economic Development Agency Staff Report Request to Sell Mobilehome Parks July 16, 1997 Page 3 Title to the parks will remain with the Corporation until such time as each mobilehome park completes its rehabilitation program and the individual nonprofit corporations formed for each park establish governing boards to manage the operations of their park. At such time, the mobilehome parks may be transferred by the Corporation to the nonprofit corporation formed for each park. While the Corporation holds title to the mobilehome parks, the Corporation will retain control over the parks' operations including the financial transactions of the parks and decisions regarding the expenditure of funds for capital improvements. DETERMINATION OF TRANSEER PRICE Appraisals of each of the mobilehome parks have been conducted by Anderson & Brabant, Inc. Updated appraisal reports will be obtained prior to the transfer of each mobilehome park to the non-profit corporation formed for each park. The appraisal reports analyze the current resale value of each mobilehome park on the basis on current market conditions, cash flows for the mobilehome park and the added funds invested by the Agency both in capital improvements and operating capital. The estimated transfer price of each park has been calculated by adding: (i) the unpaid principal balance of debt assumed by the Agency, plus (ii) an approximation of the total expenses incurred by the Agency during the Agency's ownership of the park (the "Unreimbursed Expenses"), plus (iii) the total fee to Brooks M. London (the "Conversion Consultant"). The transfer price of Pacific Palms is estimated at $4,181,077. The transfer price of Friendly Village is estimated at $2,546,575. The transfer price of Orangewood is estimated at $3,758,625. The transfer price of Tropicana is estimated at $3,753,775. The transfer price of Ninth Street is estimated at $1,765,275. The final transfer price of each of the mobilehome parks will be adjusted by calculating: (i) the unpaid principal balance of the debt assumed by the Agency, plus (ii) the actual amount of Unreirnbursed Expenses, plus (iii) amounts actually paid by the Agency to Brooks M. London (the "Conversion Consultant"). A promissory note evidencing payment of the actual amount of Unreimbursed Expenses incurred by the Agency and the amounts paid by the Agency to the Conversion Consultant will be executed by the Corporation in favor of the Agency for each park. The promissory notes will be secured by deeds of trust encumbering the mobilehome parks. The final transfer price of each park will be adjusted by an amount that relates dollar for dollar to the costs incurred by the Agency from the date of initial acquisition of each park to the date of transfer to the Corporation. TCS:lmp:slmblhm.cd COMMISSION MEETING AGENDA MEETING DATE: 0712111997 ~ Agenda Item Number: . . . Economic Development Agency Staff Report Request to Sell Mobilehome Parks July 16, 1997 Page 4 COMMl JNITY.REDEVELOI'MIlliILAWCONSIDERATIONS Pursuant to Health and Safety Code Section 33431, California redevelopment agencies are required to conduct a public hearing prior to the sale of real property. Notices of a joint public hearing of the Mayor and Common Council and the Commission have been duly published. It is necessary for the Commission to conduct the required public hearing, and on the basis of public input, the Mayor and Common Council and the Commission will then consider the approval of the transfer of Pacific Palms, Friendly Village, Tropicana, Orangewood and Ninth Street mobilehome parks to the Corporation. After Agency staff has received authorization and approval from the Commission to transfer the parks to the Corporation and to execute the final purchase and sale agreements between the Agency and the Corporation, the Agency will be in a position to complete the transfer of each of the mobilehome parks to the Corporation. RECOMMENDATlON Staff recommends adoption of the attached Resolutions of the Mayor and Common Council and the Commission to authorize the Agency's transfer to the Corporation of Pacific Palms at an estimated transfer price of$4,181,077, Friendly Village at an estimated transfer price of $2,546,575, Orangewood at an estimated transfer price of $3,758,625, Ninth Street at an estimated transfer price of $1,765,275 and Tropicana at an estimated transfer price of $3,753,775, based upon final determination and assumption by the Corporation of the existing bonded indebtedness, reimbursements to the Agency and assumption of the other obligations as set forth in . s staff report. TIMO . STEINHAUS Agency Administrator ------------------------------------------------------------------------------------------------------------------ TCS:lmp:slmblhm.cd COMMISSION MEETING AGENDA MEETING DATE: 0712111997 Agenda Item Number: \...0