HomeMy WebLinkAboutR37-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco, Director
Housing and Community Development
SUBJECT:
AMENDMENT TO THE SAN
BERNARDINO SENIOR HOUSING,
INC. A CALIFORNIA NON PROFIT
CORPORATION DISPOSITION AND
DEVELOPMENT AGREEMENT
DATE:
February 7, 2001
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SvnoDsis of Previous Commission/Council/Committee Action(s):
On January 25, 2001, the Redevelopment Committee approved this item and recommended that it be sent to the
Community Development Commission for approval.
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Recommended Motion(s):
(Community DeveloDment Commission)
MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION APPROVING THE
AMENDMENT NO. I TO THE AFFORDABLE SENIOR CITIZEN RENTAL HOUSING
DISPOSITION AND DEVELOPMENT AGREEMENT (THE "AMENDMENT") BY AND
BETWEEN THE REDEVELOPMENT AGENCY AND SAN BERNARDINO SENIOR HOUSING,
INe., A CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION INCREASING THE
AGENCY GRANT TO $224,000 FOR THE 75 UNIT SENIOR HOUSING COMPLEX LOCATED
AT 1530 BASELINE STREET, SAN BERNARDINO; AND AUTHORIZING AND APPROVING
THE AGENCY CHAIRPERSON AND SECRETARY TO EXECUTE THE AMENDMENT ON
BEHALF OF THE AGENCY - NORTHWEST PROJECT AREA
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Contact Person(s): Gary Van Osdel/Maggie Pacheco
Project Area(s) Northwest Project Area
Phone:
663-1044
Ward(s):
Six (6)
Supporting Data Attached: iii Staff Report iii Resolution(s) iii Agreement(s)/Contract(s) 0 Map(s) iii Letter/Memo
SIGNATURE:
$
Source:
HOME Federal Funds
2000-2001 EDA Budget
IVJ. (f~
Maggie Pacheco, Director
Housing and Community Development
Commission/Council Notes:
____________________w______________________________________________________________.____________.~~.._..____--------------------------------
GVO:MP:lag:02-20-0 I Senior Hsg
COMMISSION MEETING AGENDA
Meeting Date: 02/20/2001
Agenda Item Number: .B.31.-
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Amendment to the San Bernardino Senior Housinl!. Inc. A California Non Profit
CorDoration DisDosition and Development Al!reement -
1530 W. Baseline Street- Northwest Proiect Area
BACKGROUND
On October 2, 2000, the Community Development Commission approved the Affordable Senior
Citizen Rental Housing Disposition and Development Agreement (DDA) between the
Redevelopment Agency and San Bernardino Senior Housing, Inc., a California non-profit
organization (Developer) for development of the 75 unit senior housing complex to be located at
1530 West Baseline Street in the Northwest Project Area. The major deal points in the approved
DDA are as follows:
Developer is required to purchase the entire 5.5 acre site at Baseline from the Agency at
an appraised value of $275,000 despite the fact that the Developer only needs 2-3 acres to
develop a 75 unit complex;
Developer is required to develop the entire 5.5 acres and has specifically designed 8
separate single story buildings containing between 6 and 14 units, an office, reception
area, board room, storage, laundry, common restroom, kitchen and community room and
on-site parking. The 75 unit complex will have extensive landscaping in order to make
use of the full acreage; thus, the project being developed exceeds what a traditional 202
Senior Housing Project would look like and would cost;
The Developer was awarded $6,195,900 from the U.S. Department of Housing & Urban
Development (HUD) for the land acquisition, development and the construction
component of the 75-unit complex. The HUD 202 program will not pay for off-site
improvements or for design upgrades or amenities.
Agency to contribute $140,000 towards the total project costs, which was estimated at
$6.4 million at the time the DDA was approved.
Developer to complete plans, specifications and commence construction of the project by
August 2001.
GYO:MP:lag:02-20-0 I Senior Hsg
COMMISSION MEETING AGENDA
Meeting Date: 02/20/2001
Agenda Item Number: f?J 7
Economic Development Agency Staff Report
SB Senior Housing-I 530 W Baseline
February 7, 2001
Page Number -2-
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CURRENT ISSUE
When the DDA was approved by the Community Development Commission, the project costs
referenced in the staff report of $6.4 million were based on preliminary estimates by the
Developer's Architect, taking into consideration past projects developed in other cities by the
Developer. Although the Developer had submitted plans and specifications to the City, they had
not been approved nor had the project actually been placed out to bid. In recent meetings and
discussions with the Developer and Architect, the bids for the project have come in and the
project costs are in excess of what originally was estimated by the sum of approximately $84,000
(see attached letter and budget). As such, the Developer is asking the Agency to increase their
level of assistance to the project from the original amount of$140,000 to $224,000.
The new total project costs are $6.5 million. The Developer has agreed that should the costs
increase beyond this amount, they will make up any project shortfalls, if necessary. Based on the
scope of the project and the size of the site, the Agency's contribution of $224,000 equates to
under $3000 per unit and Staff believes that this contribution is reasonable and a very cost-
effective investment for new one bedroom apartments that will be affordable to very low income
seniors with incomes of less than $16,000 a year (seniors will not be required to pay more than
30% of their income for rent); moreover, the housing affordability restriction will apply to the
project for a period of not less than 55 years. The Agency will also apply the 75 units as credit
towards their obligation to provide inclusionary or replacement housing as a result of any
redevelopment project activity.
Accordingly, staff recommends approval of the additional assistance and recommends approval
of the attached Amendment No. I to the DDA.
ENVIRONMENTAL
All environmental findings have been concluded in a negative declaration that was filed for the
project on June 20, 2000.
FISCAL IMPACT
The Amendment No. I will result in an additional expenditure of Agency housing (HOME
federal funds) of $84,000, for a total HOME expenditure of $224,000.
GVO:MP:lag:02-20-0 I Senior Hsg
COMMISSION MEETING AGENDA
Meeting Date: 02/20/2001
Agenda Item Number: .J5:J2......
Economic Development Agency Staff Report
SB Senior Housing-I 530 W Baseline
February 7, 2001
Page Number -2-
RECOMMENDATION
That the Community Development Commission adopt the attached Resolution.
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Maggie Pacheco, Director
Housing and Community Development
GVO:MP:lag:02-20-01 Senior Hsg
COMMISSION MEETING AGENDA
Meeting Date: 02/20/2001
Agenda Item Number: R37
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RESOLUTION NO:
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RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION APPROVING THE AMENDMENT NO. 1 TO THE
AFFORDABLE SENIOR CITIZEN RENTAL HOUSING DISPOSITION
AND DEVELOPMENT AGREEMENT (THE "AMENDMENT") BY AND
BETWEEN THE REDEVELOPMENT AGENCY AND SAN
BERNARDINO SENIOR HOUSING, INC., A CALIFORNIA NON-
PROFIT PUBLIC BENEFIT CORPORATION INCREASING THE
AGENCY GRANT TO $224,000 FOR THE 7S UNIT SENIOR HOUSING
COMPLEX LOCATED AT 1530 BASELINE STREET, SAN
BERNARDINO; AND AUTHORIZING AND APPROVING THE
AGENCY CHAIRPERSON AND SECRETARY TO EXECUTE THE
AMENDMENT ON BEHALF OF THE AGENCY - NORTHWEST
PROJECT AREA
THE COMMUNITY DEVELOPMENT COMMISSION ACTING ON BEHALF
OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
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SECTION I.
On October 2, 2000, the Community Development Commission
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Approved the Affordable Senior Citizen Rental Housing Disposition and Development
Agreement (the "DDA"), per Resolution Number CDC 2000-35 between the Redevelopment
Agency of the City of San Bernardino (the "Agency") for development of a 75 unit senior
complex to be located at 1530 Baseline, San Bernardino, California (the "Project").
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SECTION 2.
Pursuant to said DDA the Agency authorized an Agency Grant in
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the amount of $140,000 to reimburse the Developer for the cost of certain design, construction
and installation of certain project-related improvements acceptable to the Agency that would not
otherwise qualify as permitted development costs under the HUD Capital Advance Documents.
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SECTION 3.
The Developer has now completed final plans for the Project and
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the cost of the Project is in excess of the original cost estimate of $6.4 million, prepared in
October 2000, by approximately $84,000 thereby resulting in the need for additional financial
assistance from the Agency and amendment to the DDA (the "Amendment").
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SECTION 4.
The Agency hereby approves the Amendment No. I to the DDA
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increasing the Agency Grant from $140,000 to $224,000 and authorizes execution of the
Amendment by the Agency Chairperson and Secretary
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SECTION 5.
The authorization to execute the above referenced Amendment
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No.1 is rescinded if the parties to the Amendment No. I fail to execute it within sixty (60) days
of the passage of this Resolution.
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04/20/01 Amendment -Senior H8g
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RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION APPROVING THE AMENDMENT NO. 1 TO THE
AFFORDABLE SENIOR CITIZEN RENTAL HOUSING DISPOSITION
AND DEVELOPMENT AGREEMENT (THE "AMENDMENT") BY AND
BETWEEN THE REDEVELOPMENT AGENCY AND SAN
BERNARDINO SENIOR HOUSING, INC., A CALIFORNIA NON-
PROFIT PUBLIC BENEFIT CORPORATION INCREASING THE
AGENCY GRANT TO $224,000 FOR THE 75 UNIT SENIOR HOUSING
COMPLEX LOCATED AT 1530 BASELINE STREET, SAN
BERNARDINO; AND AUTHORIZING AND APPROVING THE
AGENCY CHAIRPERSON AND SECRETARY TO EXECUTE THE
AMENDMENT ON BEHALF OF THE AGENCY - NORTHWEST
PROJECT AREA
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I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community
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Development Commission of the City of San Bernardino at a
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meeting
thereof, held on day of
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to wit:
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COMMISSION MEMBERS: AYES
C"4 ESTRADA
"i5
LIEN
16 MCGINNIS
SCHNETZ
17 SUAREZ
18 ANDERSON
MCCAMMACK
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,2001 by the following vote,
NAYS
ABSTAIN
ABSENT
Secretary
The foregoing resolution is hereby approved this _ day of
,2001.
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(...
....8 By:
Judith Valles, Chairperson
Community Development Commission
02/20{01 Amendment -Senior 8_9
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AMENDMENT NO. 1 to the
2000 AFFORDABLE SENIOR CITIZEN RENTAL HOUSING
DISPOSITION AND DEVELOPMENT AGREEMENT
(San Bernardino Senior Housing, Inc.)
'"
THIS AMENDMENT NO. 1 ("Amendment No.1") is dated as of
February 20, 2001 by and between San Bernardino Senior Housing,
Inc., a California nonprofit public benefit corporation (the
"Developer") and the Redevelopment. Agency of the City of San
Bernardino, a public body corporate and politic (the "Agency").
This Amendment No. 1 is entered into in light of the facts set
forth in the Recitals below:
RECITALS --
c:
The Developer and the Agency have previously entered into that
certain agreement entitled "2000 Affordable Senior Citizen Rental
Housing Disposition and Development Agreement", dated as of October
2, 2000 (the "Agreement") and the Developer is completing the
preparation and submission of all of the improvement plans for the
"Project" and the "HUD Capital Advance Documents", as these terms
are defined in the Agreement, to the Secretary of the United States
Department of Housing and Urban Development.
Based upon the preparation of the final plans and
specifications for the Project and the submission of the HUD
Capital Advance Documents for approval and execution by the
Secretary of the United States Department of Housing and Urban
Development, it now appears appropriate for the Agency to increase
the amount of the "Agency Grant", as this term is defined in the
Agreement, as shall be made available to the Project by the Agency,
from a sum not to exceed One Hundred Forty Thousand Dollars
($140,000.00) for specific design and improvement elements which
will not be paid for from the proceeds of the HUD Capital Advance
to a figure not to exceed Two Hundred Twenty Four Thousand Dollars
($224,000.00) .
NOW THEREFORE THE DEVELOPER AND THE AGENCY AGREE AS FOLLOWS:
Section 1. Unless the context of the usage of a particular
term or phrase in this Amendment No. 1 may otherwise require, the
meaning of defined terms and phrases as used here shall be the same
('...
,.-
882001:3325.1
1
.# as set forth in the Agreement. The text of the Agreement is hereby
... incorporated by reference into this Amendment No.1.
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Section 2. The parties hereby acknowledge and agree that
as of the date of execution of this Amendment No. 1 by authorized
officers of each of them, no default exists under the Agreement and
that neither party is aware of any facts which, with the giving of
notice and the passage of time, would otherwise give rise to a
default under the Agreement.
Section 3. Section 1.1 of the Agreement is hereby amended
by this Amendment No.1 to read as follows:
"1.1 Agency Grant. The term "Agency Grant" refers to a
sum not to exceed Two Hundred Twenty Four Thousand
Dollars ($224,000.00) which the Developer may use and
apply during the course of the improvement of the Project
to pay for costs not included within the HUD Capital
Advance as provided in Section 4.9."
Section 4. Section 4.9 (a) of the Agreement is hereby amended by
this Amendment No. 1 to read as follows:
"4.9 Agency Grant.
(a) The Agency hereby reserves a sum of Two Hundred
and Twenty Four Thousand Dollars ($224,000.00) to be used
and applied to reimburse the Developer for the cost of
the design, construction and installation of certain
Project-related improvements acceptable to the Agency
which otherwise may not qualify as permitted development
costs under the HUD Capital Advance Documents.
Improvements which may be paid for, in whole or in part,
using the proceeds of the Agency Grant included
additional on-site exterior architectural design
amenities, additional landscape treatments and the like.
Such additional improvements shall be constructed by the
Developer in accordance with a plan of design and
improvement acceptable to the Agency. The Developer
shall construct and install such improvements
concurrently with the improvement of the Project. Prior
to the Close of the Escrow the Developer and the
Executive Director shall jointly approve a list of
Project-related cost items which the proceeds of the
Agency Grant may be used and applied by the Developer."
5B2001:3325.1
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Section 5. Except as provided in Section 3 and Section 4
'" of this Amendment No.1, all other provisions of the Agreement
remain in full force and effect.
Section 6. The execution of this Amendment NO.1 by the
authorized officers of the parties shall be deemed to include an
affirmation by the respective party of each representation and
warranty of such party as originally set forth in the Agreement.
IN WITNESS WHEREOF the Agency a~d Developer have executed this
Amendment No. 1 to the Agreement as of the date indicated next to
the authorized signature of the officers of each of them.
DEVELOPER
San Bernardino Senior Housing, Inc.,
a California non-profit public
benefit corporation
Dated:
, 2001
By:
Its:
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By:
Its:
AGENCY
Redevelopment Agency of the City of
San Bernardino, a body corporate
and politic
Dated:
, 2001
By:
Judith Valles,
Chairperson of the Community
Development Commission of"the
City of San Bernardino
Approval As To Form:
By:
Agency Secretary
Agency Special Counsel
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882001,3325.1
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): L. --z..e:rO\ Item # R..~ r"j Resolution #
Vote: Ayes: - 'I Nays -e- Abstain €I
Change to motion to amend original documents:
('{)C_j'?.0)\ - 10
Absent -A-
Reso. # On Attachments: .-
Contract term:
NulVVoid After: 1- 2.3"01
Note on Resolution of Attachment stored separately: -=--
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY Date:
-
See Attached: _
Date Sent to Mayor: 'L--2..\-() 1
Date of Mayor's Signature: 2- 1.'2-0\
Date ofClerk/CDC Signature: 1_-2 C, -01
Reso. Log Updated:
Seal Impressed:
./
Date Merno/Letter Sent for Signatnre~...._
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached:
----
Date Returned:
hed:
See Attached:
Request for Council Action & Staff Report Attached: Yes 1
Updated Prior Resolutions (Other Than Below): Yes
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634): Yes
Updated CDC Personnel Folders (5557): Yes
Updated Traffic Folders (3985, 8234, 655, 92-389): Yes
No By
No ~ By
No~ By
NO..1r- By
No I By
Copies Distributed to:
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Notes:
(:;OR flf'irn.ll\ftA/c. ,r::/c..^II'I'TuRc;:S.
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUfURE REFERENCE (Contract Term. etc.)
Ready to File: M...
Date: 3-d .-o(