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Home My WebLink AboutR02-Economic Development Agency -- ( "- c c o :> ECONOMITCDEVELOPMENTAGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMITSSION/COUNCIL ACTION FROM: BARBARA 1. LINDSElH Acting Director SUBJECT: OSBORNE COLLECTION AT NORTIIP ARK - PHASE II DATE: Novcmber30,I994 -------------------------------------.---------------------------.--.---------------------------------------.-------------------------------- SvnoDsis of Previous CommissiOn/Council/Committee Actlon(s): On November IS, 1994, the Housing Committee approved $200,000 in available FY 1994/95 low-mod housing set-aside funds and recommended forwarding to the Community Development Commission. --------------------.-.--------------------------------------------------------------------------------------------------.------------------- Recommended Motion( s ): (Communltv Development Commission) MOTION A: That the Community Development Conuoission approve $200,000 in available FY 1994-95 low-mod housing set-aside funds, for the express purpose of facilitating construction of seventy-two (72) single-family detached homes in conjunction with the Osborne Collection at Northpark - Phase II and that the Conuounity Development Commission direct Acting Director to negotiate and execute an agreement based upon the deal points as outlined in the staff report. i!kator Ii, b\vc:J~cL'1f BARBARA J. LINDSETH Acting Director Contact Person(s): Barbara 1. Lindseth/Adam B. Eliason Phone: 5081 Project Area(s): State Colleee Ward(s): Five IS) Supporting Data Attached: Staff Reoort FUNDING REQUIREMENTS: Amount:$ 200 000 Source: LowlMod Budget Authority: --------------------------------------------------.---_._----------------------~.--~--~._------------_._------------------------------------- Commission/Council Note.: BJL:ABE:paw:osbrnphs.cdc COMMISSION MEETING AGENDA Meeting Date: 12/05/94 Agenda Item No: :; ,- "- c c c "-"" ~ ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO STAFF REPORT OSBORNE COLLECTION AT NORTHPARK - PHASE II Osborne Development has submitted an unsolicited request for financial assistance to the Economic Development Agency (EDA) to effectuate development of seventy-two (72) high quality single-family detached homes (Osborne Collection at Northpark Phase 11). The proposed development is located within the State College Redevelopment project area, at the intersection of North park Boulevard and Mountain Avenue. This seventy-two (72) home residential tract is contiguous to the forty-five (45) homes also built and sold by Osborne Development with prior assistance of the Economic Development Agency. The Northpark collection, Phase I offorty-five (45) homes, has been very successful with only two (2) homes remaining to be sold. At least twenty (20) families would have been unable to purchase a home in Northpark, but with the assistance of the Economic Development Agency, they were able to purchase a home. In addition, over fifty percent (50%) of all sales were to minority homeowners. The Phase 11 proposed single-family development will consist of 7,200 square foot lots, and will continue to build the existing four models with the following mix: . Eleven (11) . Eighteen (18) . Twenty-one (21) . Twenty-two (22) 1,200 square foot home, 3 bedrooms/2 bathrooms... $119,900 1,350 square foot home, 3 bedrooms/2 bathrooms... $127,900 1,600 square foot home, 4 bedrooms/3 bathrooms... $137,900 1,800 square foot home, 4 bedrooms/3 bathrooms... $146,900 Based on the exterior design elevations, overall appearance and sales prices associated with these homes, it is obvious the developer intends to construct both a high quality home and neighborhood. This project includes a variety of quality amenities including: . Tile Roofs Vaulted Ceilings Ceramic Tile Counter-Tops Oak Cabinets Skylights Side and Rear Yard Fencing Front Yard Landscaping with Automatic Sprinklers . . . . . . BJL:ABE:paw:osbmphs.cdc COMMISSION MEETING AGENDA Meeting Date: 12/05/94 Agenda Item No: d c .~ ....) STAFF REPORT OSBORNE COLLECTION AT NORTHPARK - PHASE II r- November 28, 1994 ......... Page Number - 2- Osborne Development has an extensive background in successful residential development throughout Southern California. This background includes extensive construction of high quality single-family residential tract developments within the Inland Empire. Investigation by Agency staff indicates the developer has financial capability and credit worthiness to complete the proposed project. The existing construction lender has indicated their willingness to provide financing on the proposed development. However, prior to any Agency assistance, a recorded construction loan will be required. Osborne Development is requesting $200,000 in Agency assistance to effectuate development of the seventy- two (72) home residential tract subdivision. The assistance would offset the extraordirnuy costs associated with building homes to meet stricter fife requirements as required by Planning and Building Services. Examples of building code requirements significantly above those required on Phase 1 include sectional steel garage doors, non-combustible fencing and aluminum siding versus wood siding. Furthermore, Agency assistance would also serve to assist frrst time home buyers with down payment and closing costs. The Agency assistance would be provided as follows: c . $75,000 - Towards down payment and closing costs assistance. (10 - $7,500 second trust deeds repaid when a change in the title occurs with 5% accrued interest) . $125,000 - For extraordinary costs associated with fife requirements. Agcncy paymcnts would offset building permit fees, to bc paid directly to the City of San Bernardino. (20 - $6,250 second trust deeds with 10 year affordability covenants) Utilizing this assistance, 42% of the seventy-two (72) homes built, would be guaranteed as "affordable" housing for low-mod income households (under 120% of area median income) for a ten (10) year time period. Funding for this project would be provided from previously approved FY 1994-95 low-mod housing set-aside monies. These funds would be fully repaid within approximately 3.7 years, from tax increment monies generated on the project. Following repayment, the project would then generate approximately $54,000 a year in additional property tax revenues to the Agency. Additionally, the project would generate $864,000 in permits and fees paid directly to the City of San Bernardino by the developer. Market Profiles, a professional residential market feasibility consulting firm, has analyzed the proposed development and has determined that this project would be extremely competitive and would generate an above average absorption rate. Their conclusion is that "the continuation of the existing product line and base pricing structure at Osborne's current development is the most appropriate development scenario for the subject 72 semi-fInished lots." c BJL:ABE:paw:osbrnphs.cdc COMMISSION MEETING AGENDA Meeting Date: 12/05/94 Agenda Item No: :2 c c c c ,-., -...) STAFF REPORT OSBORNE COLLECTION AT NORTIIPARK - PHASE II November 28, 1994 Page Number - 2- If approved for funding, this project would begin construction in JanUlll)' 1995, following the normal entitlement process. However, pro-active sales and marketing efforts, promoting San Bernardino as a viable housing market, would continue through the existing Phase 1 models and sales office. Based upon the significant heretofore mentioned benefits to the surrounding neighborhood and community, and the amount of Agency assistance being requested, Agency staff recommends adoption of the form motion. /1 ~)~ /1.,,&o.tqCV '7)"'- / BARBARA J. LINDSElH, Acting Director Development Department BJL:ABE:paw:osbrnphs.cdc COMMISSION MEETING AGENDA Meeting Date: 12/05/94 Agenda Item No: ?- " ..... ".....,.i r2jtjqr 10 LJ h'\}'UL, j+ VV1 t1 -LA- CC11CVVvL-', ' . ~--u ,J W"-l,/uv,U- t:tu- fU-UAt{,0~'~~sd -~ P;,0--t~Vi/:- ~ ~ i...lCc.'V'"]\""V1...;\;u7 K"- * Yv\...-L- , . '" ''-'''v\''--' .~^,1.i V\^-'L- I _ t~ A .:~ ~ U:...v0\ lV', \ '1-rvulA '--"~/'L.-6 ;,"VLL, . ~ - 1 l I; \. UJ~ - I! -.Y V V '-' . I ' , I " __ ......."''rl' . iC'!'{'i\, V\.;V\..t W}L0..L ~ DII 2J u/'J/fY ~. ........ '....../ 5545 N. Cypress Drive San Bernardino, CA 92407 December 2, 1994 City of San Bernardino To Whom It May Concern: It is has been a wonderful experience to buy a home with the help of the Mortgage Assistance Program (MAP) that San Bernardino city has to offer. I would like to extend my deepest gratitude to those who made it possible for me to buy a home. My son and I were extremely excited in knowing that the city had a way to help fulfill a dream. This program offers the greatest opportunity for others as well. 1 am pleased San Bernardino is able to succor hard working people own a home. Many potential home buyers will find confidence and have great appreciation for a city that lends a helping hand with such a valuable program. Thank you very much. Sincerely, ~~ G~rge~ Oakley() . '- '.,., ... " _.--------- -- - l _._u ~"",'..... ...- --.. ...-- ""'~ '- .............. 01 tJe./lemb<< 1994 CUy 06 San B<<lUVI.di.n.o To IIJhom It Ma.y Conevr.n: LaAt ljetlJl 1 pul(.eha.6ed (l new home n!tom OllbolUte tJe.ve1opme.n.t. ThU wou1.d no.t have. bun po.u.ib.t.e w.ithout .the MAP PMglLam. I th..ink Ijou. 6holLtd /lontinue thU pMglLam liD .that o.thvr. people Ulte m!{t.d6 can get (JJ)JQ.1j 601U!1 !tenting a.nd tab.e pll.i.de .in ou.Jr.6elvu that we CiUl own It new home. N/1n/l/j lIJut 5560 lIJutIAJ,i.nd tJ/f..ive San 8<<naAd.ino, ea. '-- '--" "-' - ~ '- '-' 10 ()JHQr(l tI (flAy CotJceRtJ, rn~ NAME \s LA-r-A ~~r1 luArK/tJS At-Jo A. AM A 0 \\JcRCLD rnDTPf-/Z of 1WD l(OUtJ G BoyS. .f. M1 E-mPLQYED WrTl., \HE tOLhJTI of Sfl~ 8ERtJAQOI~b RS A DePUTY mARsIfAL. I Am Ui2IT~ hJG 11115 LETIrQ 1D t:{PRESS my 5f~ CEQE 1l~ ~K5 foQ ThE mAP f1<l:x:;RArn. BE. CJ\US( of 11-\E mAP P12D6RAm hn! AfY1 'THE PRwo. pwtJtR. of A O<HNO ~ew &AullfuL t-W1E J H((DR 11) 'fHt: RJQ cH AGE Of {TI i. ~Ew ttome .I ~ PR ~ltJ G =1 ~DD.OO {.lQ mONIH J TV ((EM 5D~ Dt-Jt. as[S I-bmc:. (,011 HCXIT (He HeLP of 11ft mAP f12QGRAn'1 11 WCUlD ~AVE- iAk'E'tJ nit 5t~(,QAL C(tAe5 '10 5fNe (~OU Gt\ fY1[)tJE: V foR m:. QyJJ~ PRY mE:~l fY\\/ 6E-LF. 1~1E. mAP Pf<o6~tiYl HR S ALLolJ.(e.{) tY1t, 1l\E. oRJoR 11ItJITY ,D All AI N rn y DRE: Am 1i: Ai2 ~ 5a>tJER.. 11-lR N J- eVer<- 1l-IDJGHT Poss /8Lf-. 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