HomeMy WebLinkAboutR10-Economic Development Agency
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DBVBLOPIIBRr DBPAllrllBRr
OF TIIB crn OF SAIl 1'1!1I1IAIPntBO
JtBOUBST FOil COIMISSIOR/COtIIICIL ACTIOR
From:
KERNETB J. HENDERSON
Executive Director
Subject:
Smu..AC COJlPOItArIOR
- PJtOPOSAL FOil
SIXDD (16) mn:r
SUBDIVISIOR
Date:
December 11, 1991
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SvnoDsis of Previous Cnm.fssion/Cnun~i1/CNftBfttee Action(s):
On November 13 and 26, 1991, the Housing Committee considered this
item and recommended to the Community Development Commission approval
of the Sunlac Corporation request for assistance in an amount not to
exceed $425,000 based upon information and recommendations set forth
in the staff report.
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RecommPnded IIotion(s):
(C-fn Deve]n_Pnt C__fssion)
That the Community Development Commission approve the Sunlac Corporation
request for assistance in an amount not to exceed $425,000 based upon
information and recommendations set forth in the staff report and
authorize and direct Agency Counsel to prepare an appropriate agreement.
<r>
Administrator
OR
Ilzec:utive Dire or
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Contact Person(s): Ken Henderson/Doris Daniels
Phone:
384-5081
Project Area(s):
Mt. Vernon
Ward(s):
Three (3)
Supporting Data Attached:
Staff ReDort
FUNDING REQUIREMENTS:
Amount: $400.000
20X Set-Aside
Source:
Budget Authority:
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Commission/Council Rotes:
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KJH:DAD:paw:02l5q
COIMISSIOR IIDTIBG AGENDA
lIeeting Date: 12/16/91
Agenda Item Ro.
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DBVBLOPII..r DBPARrIlB.r
OF 'lBB CI'l'l' OF SAIl -.lIInIl'O
S'l.U'F RBPOR'l
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S....1.1: COrDOr.tion PrODOSa! for (16) Unit Subdivision
On November 13 and 26, 1991, the Housing Committee considered and reviewed
this item. The following staff report incorporates the concerns discussed
during the meetings with reaard to the loan orisination fee, affordability
covenants, and the repayment of the cost of the land in the amount of
$425,000. The Committee unanimOUSly recommended approval the request and
referred same to the Community Development Commission.
In September, 1991, staff received a proposal from Sunlac Corporation
(See Attachment I) for the development of sixteen (16) single family
homes on approximately 4.5 acres of land located near the northeast
corner of Pepper and Mill Streets in the City of San Bernardino. (See
Exhibit "B".) The single family detached homes range in size from 1350
to 1670 square feet. Bach home will be constructed with a full range of
amenities, such as larse living rooms, kitchen-dining room combinations,
tile counter tops, oak cabinets, 3 and 4 bedrooms, 2 full baths, 2-3
car-sarases and concrete tile roofs. Twelve (12) 1650 square foot homes
(Plan A) will sell for $144,950 and four (4) 1350 square foot homes will
sale for $118,950. The developer should realize a profit of
approximately $15,700 on the twelve homes of Plan A and $5,200 on the
four homes of Plan B.
The proposal seeks assistance from the Department's low and moderate
income housing set-aside fund in the amount of $425,000 to assist in the
acquisition of land. It is proposed that the Department's contribution
will be repaid with interest upon the sale of the homes with the
Department having first call on funds after repayment of the construction
loan and miscellaneous project costs.
Cost of T....... .. reDIII
The cost of the land is $425,000 for approximately 4.5 acres or
approximately $26,500 per lot. The purchase asreement provides that
$212,500 is to be paid to seller within 30 days of approval of the
tentative tract map and the balance due prior to recordation of the Final
Map. The tentative tract map for this project has been approved.
Return of ..... Return on Investaent
The Department's investment will accrue interest at a rate of 2X above Bank
of America prime. The Department will have first call on funds in excess
of the construction loan up to the amount of $425,000 plus accrued
interest.
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KJH:DAD:paw:0215q
COIIIISSIO. IIIftIBG AGDDA
lleetiDa Date: 12/16/91
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DEVELOPMIlft' DBPIuu.ma.L StilT IlBPORr
Sunlac Corp. Proposal for (16) Unit Subdivision
Bovember 26, 1991
Page 1IuIIber - 2 -
Loan Oriafn-tion Fee
There will be a 1.5% Loan Origination Fee.
DeveloDers Bauitv Particioation In the Protect
The developer has approximately $100,000 in equity in the project.
Expenditures to date include engineering costs, ($32,000), City fees
($8,000) and fees for recordation of final tract msp ($60,000).
Furthermore, the developer will utilize personal sssets to secure a $1.5
million construction loan from conventional sources.
Affordabilitv Cft.~~ts
Under Heslth and Safety Code Section 33334.3 (f) (2), the Department is
required to ensure that an owner-occupied single family residence which has
received financial assistance in some form from the Low- and
Moderate-Income Housing Fund will remain available at affordsble housing
costs to persons and families of low or moderate income and very low income
households for at least ten (10) years. The developer has agreed to record
such covenants for the longest feasible time period, obviating the need for
a sliding scale repayment schedule.
Ree~"'''.tiOD.
Staff recommends adoption of the deal points described above based upon
the following:
1. There is a continued need for quality-built affordable homes;
2. The developer is requesting a contribution from the Department for
land acquisition only; and
3) The developer has an established record in providing affordable, as
well as infill housing.
Staff recommends adoption of the form motion.
II, b:ecutlve Director
epart:aent
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KJH:DAD:paw:02l5q
COBIISSIOII IIDTIJIIG AGBlIDA
!!eeting Date: 12/16/91
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Agenda It_ 110.
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ATrACIDlEIIT "I"
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PROFORMA (with RDA Assistance)
(l2)Plan A
1650 S.P
Construction Cost ($35 P.S.F)
Municipal Fee.
Off-Site IMPS
57,750
10,000
15,000
8,000
2,000
Bank Fee. , Interest
Civil Enqineerinq
Miscellaneoua , Debt Service
(RDA Loan)
3.000
* Construction Loan Amount
*$95,750
26,500
Land Cost
Sales Cost
Total Cost Per Plan
7.000
$129,250
*$95,750 x 12 Plan A - $1,149,000
*$82,250 x 4 Plan B _
329..000
* Total construction loan hount $1,478,000
Sales Proceeds
12 x Plan A (1650 s.r.) x $149,950 _ $1,799,400
4 x Plan B (1350 S.F.) x $123,950 _
49S.IlD_Q
$2,295,800
Gross Sale. Proceeds
Cost of Sales
12 x Plan A (1650 s.r.) x $129,250 _ $1,551,000
4 x Plan B (1350 S.F.) x $113,750 _
Estimated Project Cost
455.000
$2,006,000
Estimated Het Profit
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(4)Plan B
1350 SAP..
47,250
9,000
15,000
7,000
2,000
2.000
*$82,250
26,500
5.000
$113,750
$2,295,200
82..006.000
$ 289,200
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· 0 G.V.W. ENGINEERING, ex.
(714) 594-0552
CMl ENGINEENNG - SURVEYING - lAND PlANNING
667 SOUTH DI\EA CANYON ROAD, SUITE 27. WAlNUT. CAlIFORNIA 91789
* Blsed on 16 Lots
. Exhibit -G-
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0 811-1101
8/21/91
ACG
IH2-66
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TRACT 10. 15093
CONSTRUCTION COST ESTIMATE
(Based On Tentatfve Map)
Descrfptfon Quantftl Unft Cost Amount
EARIHWORIC
Clear and Grub 4.1 Ac. $ 1.000.00 $ 4.100.00
Excavatfon 7.598 c.y. 1.25 9.497.50
Substructure Excavation 2.000 c.y. 1.25 2.500.00
Finish Pads 16 Lots 300.00 4.800.00
Fine Grade Lots 16 Lots 400.00 6.400.00
l 27.297.50
STREET IMPROVEMENTS
() 6" Curb & Gutter 1.617 1. f. $ 8.00 $ 12.936.00
6" Curb Only 62 l.f. 7.00 434.00
3" A.C. Paving 28.635 s.f. 0.75 21.476.25
6" Aggreglte 81se 29.191 s.f. 0.25 7.297.75
P.C.C. Cross Gutter 556 s.f. 3.00 1.668.00
P.C.C. Sidewalk (4" Thick) 9.235 s.f. 1.50 13.852.50
Fog Seal 28.635 s. f 0.05 1.431.75
OriyewlY ApprOlch 17 Ea. 600.00 10.200.00
Stop Signs . 1 EI. 150.00 150.00
Street Signs . 1 EI. 300.00 300.00
ReDDye AC 8erm/Curb & Gutter 660 l.f. 5.00 l 3.300.00
73.046.25
SEWER SiSTEM IHPROVEMENTS
8" Sewe.- Main 485 1. f. $ 15.00 S 7.275.00
4" Later-al 497 1. f. 10.00 4.970.00
WYES 16 Ea. 50.00 800.00
Manhole 2 Ea. 1.500.00 3.000.00
Lateral Clean Out 16 Ea. 200.00 3.200.00
l 19.245.00
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Exhibit "G-l"
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Exhibit -0-2-
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811-1101
8/21/91
ACG
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TRAcT 110. 15093
CONSTRUCTION COST ESTIMATE
(Based on Tentative Map)
DescriDtion .9uanti ty Unit Cost Amount
FEES
Final Map Check SI,OOO + S30/Lot x S16 Lots S 1,480.00
Street Improvement Plan Check 3S of $92,291.25 2,76B.74
Street Improvement Inspection 2.5S of $92,291.25 2,307.28
Grading Plan Check Lump Sum 30.00
Grading Inspection . Lump Sum IBO.OO
Electrical Energy Fee 3 Ea. S 420.00 1,260.00
Traffic System Fee 16 Lots $ 132.40 2,118.40
Sewer Inspection Lump Sum 15.84
0 Sewer Connection 16 Lots $ 706.29 11,300.64
Sewer Capacity 16 Lots $ 2,260.00 36,160.00
Storm Drain Surcharge Fee 4.1 Ac. $ 7,337.98 30,085.72
School District Fee 16 Lots $ 2,370.00 37,920.00
Wate~ Plan Check Lump Sum 500.00
Water Inspection 500 1. f. $ 1.00 500.00
Water Acquisition of Service 16 Ea. S 2,700.00 43,200.00
Walls - Plan Check & Inspection 2S of $91,160.00 i 1,823.20
171.640.82
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Exhibit -G-3-
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811-1101
8/21/91
ACG
IH2-68
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TRACT 10. 15093
CONSTRUCTION COST ESTIMATE
(Based on Tentative Map)
ASSUMPTIONS
Earthwork
1. Substructure excavation - I' building pad 75' depth by 45' width.
Street Improyements
2. Street Sections - 3" A.C. over 6" Class 2 Base.
3. Mill Street - Remove A.C. Berm and Jofn existing payement.
4. Poplar Street - Remove Curb & Gueer and Join existing payement.
Sewer System Imllroyements
5. Existing sewer main adjacent to tract fn Poplar Street.
Water System Imllrovements
6. Existing water main adjacent to tract in Poplar Street.
. Miscellaneous
7. Bl.ck wall along entire perimeter of wall.
8." Landscaping and irrigation installed on all 2:1 slopes around peri-
meter of tract. Front yard landscaping & irrigation required by
City not included in estimate - 24.175 s.f. x $4.00 . $96.700.00
9. Retaining wall along west property line _ 0 to 2.5' in height.
Retafning wall at rear of Lots 8-10 _ 0 to 6' in height.
Fees
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10. Electrical Energy Fee of $420.00 based on 5.BOO lumen street light.
11. Sewer Connection Fee based on number of bedrooms.
3 bedroom/house x $235.43 . $706.29
12. School District Fee based on sq. ft. of living area.
$1.58 x 1500 s.f. (Avg. house) . $Z.370.00
Exhibit "G-4"
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