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HomeMy WebLinkAboutCDC/2006-43 , , '. , '. 1 2 3 4 5 6 7 8 9 10 RESOLUTION NO. CDC/2006-43 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AMENDMENT NO.1 TO THE 2005 40TH STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT (TELACU 49TH STREET NEW HOMES PROJECT) ("AMENDMENT NO.1") BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND TELACU DEVELOPMENT, LLC ("DEVELOPER"); MAKING CERTAIN FINDINGS THERETO AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE AGENCY TO EXECUTE AMENDMENT NO. 1- 40TH STREET REDEVELOPMENT PROJECT AREA WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 11 public body, corporate and politic; and 12 WHEREAS, the Agency owns the property located at 267 East 49th Street (APN: 0154-126- 13 25) (the "Property") in the 40th Street Redevelopment Project Area ("Project Area"); and 14 WHEREAS, the Agency acquired the Property using the Low and Moderate-Income 15 Housing Tax Increment Set-Aside Funds; and 16 WHEREAS, the Agency proposes to transfer the Property to TELACU Development, LLC, 17 a California corporation (the "Developer") in accordance with the terms and conditions of an 18 agreement entitled "2005 40th Street Redevelopment Project Area Single Family Residential 19 Disposition and Development Agreement and Amendment No. I (TELACU 49th Street New Home 20 Project)", (the "2005 Agreement"); and 21 22 WHEREAS, the Agency has prepared and published a notice of joint public hearing in The San Bernardino County Sun Newspaper on September 18 and 25, 2006, regarding the 23 consideration and approval of Amendment No. I to the 2005 Agreement; and 24 25 26 27 28 WHEREAS, pursuant to Health and Safety Code Section 33433, the Agency may transfer the Property to the Developer subject to the Mayor and Common Council ("Council") and the Community Development Commission ("Commission") adopting a Resolution authorizing the Agency to transfer the Property in light of the findings set forth herein; and I P:\Agendas\Resolutions\Resolutions\2006\IO-02-06 Telacu Amendment No.1. Final CDC Resodoc ',' " ,', " CDCj2006-43 1 WHEREAS, the Agency has prepared a Summary Report that describes the salient points 2 of Amendment No. 1 and identifies the cost to the Agency of the disposition of the Property to the 3 Developer for development of a single family unit for sale to a low and moderate-income eligible 4 household;and 5 WHEREAS, pursuant to Health and Safety Code Section 33334.3(j), the Agency estimates 6 that more than fifty percent (50%) of the cost of producing the single family housing unit will be 7 expended from the Low and Moderate Housing Fund because of the increase in labor and material 8 costs of producing a new home by the Developer on the Property and it is necessary because the 9 Agency has made every effort to seek private financial assistance but was unable to finance the 10 housing unit at the level of affordability and quality. 11 WHEREAS, the Agency finds and determines that the environmental review of the 12 approval of the 2005 Agreement and Amendment No. 1 and the development activities 13 contemplated thereunder is a "categorically exempt project" under the California Environmental 14 Quality Act (CEQA), pursuant to S 15332, Class 32. No potentially adverse environmental effects 15 are anticipated to be associated with the development of the Project. 16 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY 17 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS: 18 19 Section 1. The Recitals of this Resolution are true and correct. Section 2. On October 2, 2006, the Commission conducted a full and fair joint public 20 hearing with the Council and considered the written Agency Staff Report relating to Amendment 21 No. 1 to the 2005 Agreement and the testimony submitted relating to the disposition and 22 development of the Project by the Developer pursuant to the terms and conditions of the 2005 23 Agreement and its Amendment No. 1. The minutes of the Agency Secretary for the October 2, 24 2006, joint public hearing of the Commission and the Council shall include a record of all 25 communication and testimony submitted to the Commission and the Council at the joint public 26 hearing by interested persons relating to the Project and the approval of Amendment No. 1 to the 27 2005 Agreement. 28 2 P:\Agcndas\Resolutions\Resolutions\2006\IO-02-06 Telacu Amendment No.1 - Final CDC Reso.doc .,. , CDC/2006-43 1 Section 3, This Resolution is adopted in order to satisfy the provisions of Health and 2 Safety Code Section 33433 as those provisions relate to the disposition of the Property by the 3 Agency to the Developer on the terms and conditions set forth in the 2005 Agreement and 4 Amendment No. I. The Commission hereby finds and determines as follows: 5 6 (i) The Summary Report contains the information described in Health and Safety Code 7 Section 33433(a)(2)(B); and pursuant to Health and Safety Code Section 33334.3(j), the Agency estimates that more than fifty percent (50%) of the cost of producing the single family housing unit will be expended in the Low and Moderate Income Housing Fund and it is necessary because the Agency has made every effort 8 9 10 11 to seek private financial assistance but was unable to finance the housing unit at the level of affordability and quality required; 12 13 14 15 16 The disposition and development of the Property by the Developer in accordance with the 2005 Agreement and Amendment No. I is consistent with the affordable single family housing supply, preservation, and expansion programs ofthe Agency's Housing Implementation Plan; (iii) The terms and conditions of the 2005 Agreement and Amendment No. I contain (ii) 17 assurances that the Property will be developed by the Developer as "New Homes", 18 19 20 21 22 as this term is defined in the 2005 Agreement; (iv) The disposition of the Property to the Developer on the terms set forth in the 2005 Agreement and Amendment No. I shall assist in the elimination of conditions of blight on the Property in the Project Area. Section 4. The Commission hereby find and determine that the environmental review of 23 the approval of the 2005 Agreement and Amendment No. I and the development activities 24 contemplated thereunder is a "categorically exempt project" under CEQA, pursuant to 9 15332, 25 Class 32. No potentially adverse environmental effects are anticipated to be associated with the 26 development ofthe Project. 27 Section 5, The Commission hereby receives and approves Amendment No. I to the 28 2005 Agreement in the form as submitted at this joint public hearing. The Commission hereby 3 P\Agendas\Resolutions\Resolutions\2006\1O-02-06 Telacu Amendment No. ] _ Final CDC Reso.doc ',' '. 1'. CDC/2006-43 1 further finds and determines, that the purchase price of $1.00 payable by the Developer to the 2 Agency for the Property to be considered as an Affordable Lot under the 2005 Agreement on which 3 the New Home shall be constructed and shall be reserved for use and occupancy by persons and 4 households of low and moderate income is hereby determined to be derived from the Low and 5 Moderate-Income Housing Set-Aside Funds of the Agency and from no other source of funds of 6 the Agency. The Executive Director of the Agency is hereby further authorized and directed to 7 modify the Schedule of Performance as attached to the 2005 Agreement as Exhibit "c" and to 8 execute said modified Schedule of Performance on behalf of the Agency to include the Property as 9 added by Amendment No. I and to thus, coordinate the schedules for the close of escrow, site 10 preparation and commencement of construction of the New Homes to recognize the extended 11 period of time for performance by the inclusion of the Property within the 2005 Agreement. 12 Section 6. The Commission hereby approves the disposition of the Property by the 13 Agency to the Developer on the terms set forth in the 2005 Agreement and Amendment No. I and 14 hereby authorizes the Executive Director to execute Amendment No.1 to the 2005 Agreement on 15 behalf of the Agency, to make minor corrections, additions and clarifications to Amendment No.1, 16 provided such changes are not substantive in nature, do not increase the monetary impact to the 17 Agency and the changes are approved by the Agency Counsel. 18 Section 7. 19 1/1 20 11/ 21 1/1 22 1/1 23 1/1 24 1/1 25 1/1 26 1/1 27 1/1 28 1/1 This Resolution shall take effect upon its adoption and execution. 4 P:\Agendas\Resolutions\Resolutions\2006\IO-02-06 Telacu Amendment No_ I . Final CDC Reso.doc ',' 1 2 3 4 5 6 7 8 ,', CDCj2006-43 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AMENDMENT NO.1 TO THE 2005 40TH STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT (TELACU 49TH STREET NEW HOMES PROJECT) ("AMENDMENT NO. I") BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND TELACU DEVELOPMENT, LLC ("DEVELOPER"); MAKING CERTAIN FINDINGS THERETO AND AUTHORIZING THE EXECUTIVE DIRECTOR OF THE AGENCY TO EXECUTE AMENDMENT NO. 1- 40TH STREET REDEVELOPMENT PROJECT AREA I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 9 Development Commission of the City of San Bernardino at a j oint regular 10 thereof, held on the 2nd day of October ,2006, by the following vote to wit: 11 Commission Members: 12 ESTRADA 13 BAXTER 14 VACANT 15 DERRY 16 KELLEY 17 JOHNSON 18 MC CAMMACK 19 20 - rp~ ~ 21 ~ The foregoing resolution is hereby approved this 4. day of October 22 23 24 25 meeting Aves X Navs Abstain Absent x -1L ---.L ----1L x ,2006. . atrick Morris, erson 'ty Development Commission of the City of San Bernardino 26 Approved as to Form: 27 28 By: 1)........- . (~i,:J U r,-^.Ix, Agency Cou~l 5 P:\Agendas\Resolutions\Resolutions\2006\IO-02-06 Telacu Amendment No.1. Final CDC Reso.doc CDC/2006-43 AMENDMENT NO.1 TO THE 2005 40th STREET REDEVELOPMENT PROJECT AREA SINGLE F AMIL Y RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT THIS AMENDMENT NO. I TO THE 2005 40TH STREET REDEVELOPMENT PROJECT AREA SINGLE F AMIL Y RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT (this "Amendment No. I") is dated as of October 2, 2006, by and between TELACU Development, LLC, a California limited liability company (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 40th Street Redevelopment Project Area Single Family Residential Disposition and Development Agreement", dated as of November 21, 2005 (the "2005 Agreement"). B. As of the effective date of this Amendment No. I, the Developer has agreed to acquire eleven (II) of the "Agency Lots", as this term is defined in the Recital I of the 2005 Agreement and the Developer intends to commence the mass grading and the commencement of the construction at such time as title to the Property identified in this Amendment No. I has been transferred from the Agency to the Developer. C. The Developer and the Agency believe it is appropriate to consider and approve this Amendment No. I in order to authorize the Agency to convey the Property located at 267 East 49th Street (APN: 0154-126-25) (the "Property") in the 40th Street Redevelopment Project Area ("Project Area"), as more particularly described in Exhibit "A", to the Developer as an Affordable Lot for $1.00 for development of one (I) single-family affordable home for a buyer earning not more than one hundred twenty percent (120%) of the county median income. This would obligate the Developer to develop a total of six (6) affordable single-family homes and six (6) market rate single-family homes pursuant to the terms of the 2005 Agreement and this Amendment No. I. The Developer will be required to secure additional financing to construct this additional affordable single-family home and obtain all City development approvals. 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 No. I 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 2005 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 one (I) additional Agency Lot, under this Amendment No.1. I P:\Agendas\Agenda Attachments\Agrmts-Amend 2006\10-02-06 Telacu. Final Amendment No_ ] 10 the 2005 DDAdoc CDCj2006-43 NOW, THEREFORE, THE DEVELOPER AND THE AGENCY DO HEREBY AGREE AS FOLLOWS: Section 1. (a) Unless the context of the usage ofa term or phrase in this Amendment No. I may otherwise require, the meaning of words and phrases in this Amendment No. I, which are indicated by an initially capitalized letter, shall be the same as set forth in the 2005 Agreement. (b) The Recitals of this Amendment No.1 are true and correct. (c) The text of the 2005 Agreement is hereby incorporated into this Amendment No.1 by this reference. Section 2. This Amendment No. 1 sets forth the terms and conditions of an amendment to the text of the 2005 Agreement. This Amendment No.1 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 2005 Agreement as hereby modified by this Amendment No.1, including all items of assistance, which the Agency shall provide to the Developer under the 2005 Agreement as modified by this Amendment No.1. Section 3. The Effective Date of the 2005 Agreement occurred on November 21, 2005. The parties recognize that the joint public hearing required pursuant to Section 1.05 of the 2005 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 the following specified Sections of the 2005 Agreement are hereby amended to include the Property as an additional Agency Lot within the scope of the 2005 Agreement as amended pursuant to this Amendment No.1. Recital I. of the 2005 Agreement is amended to include the Property as an identified Agency Lot for all purposes of the 2005 Agreement by the addition of the following text: "267 East 49th Street (Vacant Lot), APN: 0154-126-25" The definition of an "Affordable Lot" in Section 1.0 I (b) is hereby amended to add the Property as described in this Amendment No. I to the definition of an "Affordable Lot" as follows: "(vi) Agency Lot/Affordable Lot, APN: 0154-126-25;" The definition of "Affordable Lot Purchase Price" is hereby amended to change the number "eleven (II)" in the third line to "twelve (12)", and the description of the Property as an Affordable Lot is added to read as follows: "(x) Affordable Lot: APN: 0154-126-25 $1.00." 2 P,\Agendas\Agenda Attachments\Agrmts-Amend 2006\10.02.06 Telacu - Final Amendment No. 110 the 2005 DDA.doc CDCj2006-43 All other conforming changes to reflect the additional Affordable Lot as added pursuant to this Amendment No.1, whether as to the number of Affordable Lots or the number of total Agency Lots included within the 2005 Agreement shall be deemed to be made and are hereby authorized to be made to conform to the 2005 Agreement with this Amendment No.1. Section S. Except as modified or amended by this Amendment No.1, all of the provisions of the 2005 Agreement shall remain in full force and effect following the effective date of this Amendment No.1. 1/1 1/1 /II 1/1 /II /II 1/1 1/1 1/1 /II 1/1 1/1 /II /II /II /II 1/1 1/1 1/1 3 PIAgendas\Agenda Attachments\Agrmts-Amend 2006\10-02.06 Telacu - Final Amendment NO.1 to the 2005 DDA.doc IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment No. 1 to the 2005 Agreement as of the dates set forth below. AGENCY Date: !fJ //1/tJ~ I ( By: Approved as to Form and Legal Content: ~~ Agency Coun el DEVELOPER D,"'-40! ~C, By: Date: By: 4 C:\Documents and SettingsWlemandez\Local Settings\Temporary Internet Fiks\OLK1\IO-02-06 TeJacu - Final Amendment No I to the 2005 DDA.doc CDC/2006-43 Order No. 140-749192"-66 EXHIBIT "A" THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN BERNARDINO AND IS DESCRIBED AS FOLLOWS: LOT 5 BLOCK 19 OF TRACT 1834, IN THE CITY OF SAN BERNARDINO, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PE MAP RECORDED IN BOOK 26 PAGE 52 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.