HomeMy WebLinkAboutCDC/2008-25
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RESOLUTION NO. cDc/2008-25
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE
AMENDMENT NO.1 TO THE 2006 AFFORDABLE SINGLE-FAMILY
DISPOSITION AND DEVELOPMENT AGREEMENT (HOME FUNDS-FOUR
AGENCY LOTS), BY AND AMONG THE AGENCY, ARROYO VALLEY
COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, AND
INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES (IVDA
REDEVELOPMENT PROJECT AREA)
9 WHEREAS, on November 20,2006, the Community Development Commission of the City
10 of San Bernardino ("Commission") approved and authorized the execution of the 2006 Affordable
11 Single-Family Disposition and Development Agreement (HOME Funds - Four Agency Lots)
12 ("2006 DDA") by and among the Redevelopment Agency of the City of San Bernardino
13 ("Agency"), Arroyo Valley Community Economic Development Corporation ("Arroyo"), and the
14 Inland Empire Concerned African American Churches ("Churches"); and
15 WHEREAS, the Agency, Arroyo and the Churches mutually agreed to amend the 2006 DDA
16 to provide the following:
17 1. Transfer three (3) lots for housing development and the fourth (4th) lot for community garden
18 because of the City's set-back requirements that made the corner lot (APN: 0144-123-46)
19 un-developable (See attached Map);
20 2. Reduce the number of homes to be developed from four (4) to three (3) throughout the
21 Agreement;
22 3. Reduce the downpayment assistance from $240,000 for four (4) homebuyers to $180,000 for
23 three (3) homebuyers;
24 4. Revise the schedule of performance to provide additional time to complete the project;
25 5. Incorporate the updated construction financial commitment letter from Arrowhead Credit
26 Union dated May 15,2008;
27 6. Add a construction manager task to oversee the plans approval and project construction
28 phases;
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CDC/2008-25
1 7. Revise the Affordability Covenants and Restrictions ("AC&R") to reduce the number of
2 homes to be built from four (4) to three (3); and
3 8. Dedicate the corner lot (APN: 0144-123-46) as a community garden subject to Agency
4 approval of the community garden site plan, development budget and operations and
5 maintenance plan.; and
6 WHEREAS, the Project is exempt under the National Environmental Protection Act
7 ("NEPA") per 24 CFR 58.35(a) and the California Environmental Quality Act ("CEQA") pursuant
8 to Section 15332, Class 32.
9 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
10 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS
11 FOLLOWS:
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Section 1.
13 authorize the Interim Executive Director of the Agency to execute Amendment No. 1 to the 2006
The Commission hereby approves Amendment No. 1 to the 2006 DDA and
14 DDA and to make changes provided said changes are not substantive in nature and do not increase
15 the Agency's fmancial contribution to the Project, and as approved by Agency Counsel.
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Section 2.
17 review of Amendment No.1 to the 2006 DDA is necessary, at this time, under CEQA and NEP A.
The Commission hereby fmds and determines that no further environmental
18 Section 3.
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This Resolution shall become effective immediately upon its adoption.
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CDC/2008-25
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE
AMENDMENT NO.1 TO THE 2006 AFFORDABLE SINGLE-FAMILY
DISPOSITION AND DEVELOPMENT AGREEMENT (HOME FUNDS-FOUR
AGENCY LOTS), BY AND AMONG THE AGENCY, ARROYO VALLEY
COMMUNITY ECONOMIC DEVELOPMENT CORPORATION, AND
INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES (IVDA
REDEVELOPMENT PROJECT AREA)
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
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Development Commission of the City of San Bernardino at a j oint regular
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thereof, held on the 7th day of July
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Commission Members: Aves Navs
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ESTRADA x
-
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BAXTER x
-
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BRINKER x
-
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DERRY x
-
15
KELLEY x
-
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JOHNSON x
-
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MC CAMMACK X
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meeting
, 2008, by the following vote to wit:
Abstain
Absent
~
20 The foregoing resolution is hereby approved this 97N day of July
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,2008.
~.
I .~
Patri k J. Morris, ~rson
umty Development CommiSSIOn
of the City of San Bernardino
24 Approved as to FOi+brm:
25 By: ~0~-
26 Agency Co el
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P:\Agendas\Rcsolutions\Reso/utions\2008\07-07-08 Arroyo & Chur<:hes Amend. No. I to DDA CDC Rcso.doe
CDC/2008-25
AMENDMENT NO.1 TO THE
2006 AFFORDABLE SINGLE-FAMILY DISPOSITION AND DEVELOPMENT
AGREEMENT (HOME FUNDS - FOUR AGENCY LOTS)
BY AND AMONG
REDEVELOP~NT AGENCY OF THE CITY OF SAN BERNARDINO,
A PUBLIC BODY, CORPORATE AND POLITIC
AND
ARROYO VALLEY COMMUNITY ECONOMIC DEVELOPMENT CORPORATION,
A CALIFORNIA NON-PROFIT BENEFIT CORPORATION
AND
INLAND EMPIRE CONCERNED AFRICAN AMERICAN CHURCHES, A
CALIFORNIA NON-PROFIT CORPORATION
This Amendment No.1 (this "Amendment") is dated as of July 7, 2008, by and among
the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic
(the "Agency"), Arroyo Valley Community Development Corporation, a California non-profit
benefit corporation (the "Developer"), and Inland Empire Concerned African American
Churches, a California non-profit corporation (the "Participant"), and is an amendment to the
Disposition and Development Agreement (the "Agreement") by and among the Agency, the
Developer and the Participant, dated November 20, 2006. The Agreement is for the jurchase
and sale of Agency owned property generally located at 16th and Harris Streets and 17 and "J"
Streets within San Bernardino, California and referred to as Assessor's Parcel Numbers ("APN")
0144-131-21,0144-131-36,0144-123-03 and 0144-123-46 (the "Property").
This Amendment is entered into in consideration of the facts set forth in the following
Recital Paragraphs.'
RECITALS
WHEREAS, the Redevelopment Plan for the Inland Valley Redevelopment Project Area
("Redevelopment Plan") provides for the purchase and redevelopment of certain unimproved
lands by private parties such as the Developer and the Participant for purpose of and with the
intent to revitalize and redevelop areas that are adversely affected by blight; and
WHEREAS, the Agency, the Developer and the Participant desire to redevelop and
improve the Property, and to construct three (3) affordable single-family housing units as a
project with each New Home consisting of not to exceed approximately 1,300 square foot homes
with three (3) bedrooms, two (2) bathrooms, a 400 square feet attached two (2) car garage, and
landscaping as further detailed in the definition of "Project" in the Agreement, to be sold to
income eligible households; and
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WHEREAS, the Agency, the Developer and the Participant seek to make the following
modifications to the Agreement: update the definition of the "Project" as contained in Section 1
of the Agreement; reduce the number of New Homes to be produced from four (4) to three (3);
reduce the down payment assistance from Two Hundred Forty Thousand Dollars ($240,000.00)
for four (4) homebuyers to One Hundred Eighty Thousand Dollars ($180,000.00) for three (3)
homebuyers; modify the schedule of performance set forth in Exhibit "B" to the Agreement;
incorporate the Arrowhead Credit Union construction financial commitment letter, dated May
15,2008, into the Agreement and this Amendment; add a construction manager to oversee the
planning, approval, and construction phases of the Project; and revise the affordability covenants
and restrictions ("AC&Rs") to reduce the number of New Homes to be built from four (4) to
three (3).
NOW, THEREFORE, THE AGENCY, THE DEVELOPER AND THE
PARTICIPANT AMEND THE AGREEMENT AS FOLLOWS:
1. The definition of the term "Project" contained in the Agreement shall be replaced
with the following:
Project. The term "Project" shall mean and refer to all of the work of investigation,
design, construction, improvement, modification and fmancing necessary in order for the
Developer and the Participant to acquire the Site from the Agency as joint tenants and for
the Developer and the Participant to construct three (3) affordable single-family housing
units as a project with each New Home consisting of not to exceed approximately 1,300
square foot homes with three (3) bedrooms, two (2) bathrooms and a 400 square feet
attached two (2) car garage to be sold to income eligible households. The Project also
includes all related landscaping, driveways, utilities and any improvements which may be
required by the City within the public rights-of-way adjacent to the Site. This general
description of the New Homes is that which the Developer and the Participant presently
intend to construct upon the Agency Lots subject to the precise size and other design
details being such as may be finally approved by the City through the site development
approval process. The functional elements of the Project are more particularly described
in the Scope of Development and Site Improvement Plan Concept in Section 4.1 (the
"Scope of Development").
2. The number of New Homes shall be reduced from four (4) to three (3). All
references to the number of New Homes in the Agreement shall be deemed to refer to three (3)
New Homes instead of four (4).
3. The downpayment assistance shall be reduced from Two Hundred Forty
Thousand Dollars ($240,000.00) for four (4) homebuyers to One Hundred Eighty Thousand
Dollars ($180,000.00) for three (3) homebuyers. Accordingly, the definition of "Agency
Downpayment Assistance" contained in the Agreement shall be replaced with the following:
Agency Downpayment Assistance. The term "Agency Downpayment Assistance" shall
mean and refer to the purchase money fmancial assistance, which the Agency may
provide to Qualified Homebuyers of New Homes constructed on Agency Lots. The
amount of such Agency Downpayment Assistance in favor of a particular Qualified
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Homebuyer to purchase a New Home shall not exceed Sixty Thousand Dollars
($60,000.00), and shall not exceed One Hundred Eighty Thousand Dollars ($180,000.00),
in the aggregate, in connection with the purchase by each Qualified Homebuyer of the
three (3) New Homes. Nothing contained herein shall preclude the Developer and/or the
Participant from requesting of the Agency such additional dollar amounts of the Agency
Downpayment Assistance on a case-by-case basis which additional amounts of assistance
mayor may not be granted by the Agency at its sole discretion.
4. The Schedule of Performance shall be modified to provide additional time for the
completion of the Project. Accordingly, Exhibit B (Schedule of Performance) to the Agreement
shall be replaced with the modified Schedule of Performance attached as Exhibit "A" to this
Amendment.
5. The Arrowhead Credit Union construction loan financial commitment letter, dated
May 15, 2008, shall be incorporated into the Agreement and this Amendment as iffully set forth
therein and herein. A copy of the Arrowhead Credit Union construction loan financial
commitment letter is attached to this Amendment as Exhibit "B."
6. A construction manager shall be retained by Agency to oversee the planning,
approval, and construction phases of the Project as more fully described in the Construction
Manager Scope of Services attached to this Amendment as Exhibit "C." The Developer and the
Participant by their approval and execution of this Amendment hereby consent to the retention of
the Construction Manager by the Agency and agree to cooperate with the Construction Manager
and to assist as may reasonably be required for the successful implementation of all elements as
set forth in the Construction Manager Scope of Work.
7. Prior to any recordation, the AC&R shall be revised to reduce the number of New
Homes to be built from four (4) to three (3); provided, however, that the Developer and the
Participant shall provide for APN: 0144-123-46, which shall be acquired by the Developer
and/or the Participant in fee title from the Agency, to used solely as a community garden by the
general public with such use covenant being recorded as to such APN: 0144-123-46 with right of
repurchase of said APN in favor of the Agency for failure by either the Developer and/or the
Participant to comply with such use covenant. The Developer and the Participant shall call8e
said APN: 0144-123-46 to be rough graded for such intended use as a community garden at such
time as the Developer and the Participant grade the site for the construction of a New Home on
APN: 0144-123-03 and the necessary street improvements, sidewalk, curb and gutter are
installed on 17th Street and "J" Street by the Developer and/or the Participant. Nothing contained
herein shall require either the Developer or the Participant to make any other improvements to
APN: 0144-123-46 other than the rough grading of said APN and the construction and
installation of the street improvements, sidewalk, curb and gutter as may be required by the City
of San Bernardino.
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CDC/2008-25
IN WITNESS WHEREOF, the parties have signed this Amendment as of the date first
set forth below.
AGENCY
Redevelopment Agency of the City of San
Bernardino, a public body, corporate and politic
Date: 1J -/8- ct
By:
Emil A. Marzullo,
xecutive Director
Approved as to Form and Legal Content:
BY:c../~
Agency 0 el
DEVELOPER
Arroyo Valley Community Economic Development
Corporation,
a California non-profit benefit corporation
Date: 7-1 ~ - C>~
By:
Title: j'ej~d0-t
PARTICIPANT
Inland Empire Concerned African AmericijJl
Churches, a California non-profit corporation
Date:
7 ;; ~ /t/8
I {
~ hC~
By: ~ ,,(~-
V'
Title: r~r=: P~d~
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EXHIBIT" A"
Revised Schedule of Performance
(Exhibit "B" to the Agreement)
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EXHIBIT "A"
SCHEDULE OF PERFORMANCE
Execution of Amendment to Agreement
Agreement shall be authorized, executed
and delivered by the Developer and the
Participant
to the Agency.
Ooening of Escrow
The Agency, the Developer and the
Participant shall open the Escrow with the
Title Company
Evidencing of Financing
The Developer shall provide the Agency
with financing for the Project unless
extended pursuant to the Agreement.
Design
The Developer shall prepare all plans and
specifications and obtain all required
permits.
Evidence of Insurance
The Developer shall furnish to the Agency,
certificate of insurance as set forth in
Section 4.1 of the Agreement.
On or before July 30, 2008.
On or before July 30, 2008.
On or before July 30, 2008.
No later than August 15,2008.
Prior to the Developer and the Participant
or their agents commencing construction at
the Site or having access to the Agency
Lots but not later than September 30, 2008.
Closing of Escrow On or before September 30, 2008.
The Agency, the Developer and the
Participant shall Close Escrow
Commencement of Construction
The Developer shall commence
construction of the improvements of the
Site pursuant to Section 4.1.
ComDletion of Construction
All improvements on the Site as well as
off-site improvements shall be completed
and prospective homebuyer pre-qualified.
Upon the Close of Escrow but not later ,
,
than October 30, 2008.
No later than April 30, 2009.
It is understood that this Schedule of Performance is subject to all of the terms and
conditions of the text of the Agreement. The summary of the items in this Schedule of
Performance is not intended to supersede or modify the more complete description in the
text; in the event of any conflict of or inconsistency between this Schedule of
Performance and the text ofthe Agreement, the text of the Agreement shall govern. The
Developer of Agency can amend this Schedule of Performance.
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CDC/2008-25
EXHIBIT "B"
Arrowhead Credit Union construction loan
rmancial commitment letter, dated May 15, 2008
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EXHIBIT "B"
.+.AAAOWHEAD
.
O.dicDl.d 10 helpi", mem"_,.. bUIld ....,m
CREDiT UNION
May 15,200&
Mr. Raymond Turner, Chainnan
Inland Empire Concerned African-American Churches
P.O. Box 70036
San Bernardino, CA 92411
RE: Construction Loan for the Westside Homes Project (Four Residential Units)
Dear Mr. Turner:
We are pleased to inform you that we have approved your request for the above-referenced loan,
which is summarized below:
Loan Amount:
Notto exceed $1,005,411.00.
Term:
Maximum of 14 months. The required interest payments shall be
reserved in the proceeds of this transaction. Principal and any accrued
interest shall be due and payable at maturity.
Variable rate based upon the prevailing Wall Street Journal Prime Rate
(West Coast Edition), plus 1.00%. The current Wall Street Journal Prime
Rate is 5.00%.
Rate:
Points:
1.00% of the loan amount
Loan Advance:
Maximum of 75% of the value of the existing land plus the construction
costs of the new building, based upon values provided by an appraisal.
The appraisal is 10 be commissioned, directed, and reviewed by us prior
to loan approval.
"
Prepayment Penalty: None.
Costs: Borrower 10 pay for all processing costs 10 include, but not limited 10 the
following (amounts are estimates): appraisal $4,500, environmental
report $2,500, title report(s) $2,500, Lender's lep! review S3,000, loan
documentation SI,5oo, and funds control/inspections $6,500.
Appraisal and environmental fees are payable upffont. Actual cost to be
determined at the time of enPlement.
Funds Control:
To be performed by an outside disb_ment company as selected by the
Lender. The estimate of cosl(s) shall be provided at a later date, after
receipt of all of the required inlbrmatioll. lor the constructioll. project.
Post Office: Box 735 . San Bernardino. CA 92402
CDC/2008-25
Assumable:
No.
Guarantors:
Arroyo Valley Community Economic Development Corporation.
Conditions:
To include, but not limited to the following:
. Appraisal of the project bued OD a maximum loan-to-value (LTV) of 75% of the
laDd value aDd construction cost, all determiaed by aD appraisal. The appral8a1 is to
be ordered, reviewed, and approved hy LeDder.
. Satisfactory Phase I EDviroDmental SIte AuessmeDt (ESA) report.
. FUDds coDtrol and inspectiolls to be performed by all ontslde compaDY.
. ConstructIoD loaD documeDtatloD to be prepared by HighlaDd Law Corporation
(Robodocs), at LeDder's request.
. Title InsuraDce to cover lint trust deed positloD with CODStruCtiOD endonements.
. Property "all risk coune of construCtiOD" InsuraDce policy.
Documents Required:
. CPA compUed nDaDelal statemeDt of the IDlaDd Empire Concerned AfricaD
American Churches ("IECAAC") for the year eDdinllZ/3II2007.
. Most receDt quarter eDdlDg IDterim nnaDclalstatemeDt ofIECAAC.
. A more curreDt (Copy OD me is dated slDce %006) aDd signed Aft'ordahle Single-
Family DlspositloD alld DevelopmeDt AcreemeDt betweeD the RedevelopmeDt
AceDey aDd the Arroyo Valley CommuDity EcoDomic DevelopmeDt CorporatioD
("Developer") aDd/or any AmeDdmeDts.
Arrowhead Central Credit Union reserves the right in its sole discretion to cancel its commitment
to make available the loan described in this letter and to tenninate its obli,alions hereunder upon
the occurrence of any material adverse changes in the financial condition of the Borrower,
Guarantor, or in the event that loan documents satisfactory to us are not executed on or before
August 13,2008.
This commitment letter is provided to Borrower solely for the purpose described herein and may
not be disclosed to, or relied upon by, any other party without the written consent of Arrowhead
Central Credit Union.
,.
Jon arks
Vice President/Sales Manllller
cc: Mr. Antonio F. Dupre, President
Arroyo Valley CEDC
CDC/2008-25
Acknowledged and accepted for:
The Inland Empire African American
[cONSTRUCl'ION LOAN CHECKLIS1j
- Feasibility Study/Projections.
- Project summary.
- Plans and Specs.
- Cost BreakdownlBudget.
- Soils Report.
- Environmental Assessment Report(s) (phase I, etc.).
- General contractor's resume, copy of contractor's license, financial
statements, worker's compensation insurance.
- Copy of the construction contract (preferably under the American
Institute of Architect's Document AlOl-1997)
- Copy of the architect's contract/agreement.
Builders all risk course of construction insurance policy naming
lender as "loss payee".
"
CDC/2008-25
EXHIBIT "C"
Construction Manager Scope of Services
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EXHIBIT "C"
SCOPE OF SERVICES
The Project consists of the Agency conveying and transferring fee simple title to four (4) Agency lots
to a partnership consisting of Arroyo Valley Community Economic Development Corporation and the
Inland Empire Concerned African American Churches (collectively, the "Developer"). This transfer of
land will allow the Developer to construct up to three (3) homes with three (3) bedrooms and two (2)
bathrooms. Each home will be not less than approximately 1,300 square feet and a 400 square foot
attached two (2) car garage. After the homes have been constructed, the Developer will sell these
homes to income eligible low- and moderate-income households.
Following is a list of services the Construction Manager ("Consultant") will provide to the Agency per
the terms of this Scope of Services. Each item is a separate task and will be applied to the Project if, in
the determination of Agency staff, the service is relevant and necessary to ensure a positive outcome.
1. If, by the time the Agreement between Consultant and the Agency is executed and the
Developer has not obtained final approval of Project plans from the City, Consultant will assist
the Developer in complying with City's design requirements to ensure design plans are
approved and required Project development permits are issued.
Approximate Time and Cost: 6.79 hrs@$110.00=$747.00
2. Prior to the construction phase, in the event the Developer is unsuccessful in securing a
construction loan for the Project and the Agency deems it necessary to provide such financing
and approval is authorized for it, Consultant will review and verify the cost estimate prepared
by the Developer for the Project. Consultant will submit any recommended changes in the cost
estimate to the Agency that seem necessary in light of Developer's submittal. The estimate will
be in tabular form showing item description, quantities, material cost, labor cost and total cost.
Approximate Time and Cost: 11.31 hrs @ $110.00 = $1,245.00
3. During construction phase Consultant will work with and confirm that the Developer is
complying with approved plans to ensure that a City construction inspector signs off on all on-
site and off-site improvements.
Approximate Time and Cost: 181.09 hrs @ $110.00 = $19,920.00
4. In the event the Agency must provide the construction fmancing, Consultant will review and
recommend approval of all invoices and any change orders.
Approximate Time and Cost: 2.26 hrs @ $110.00 = $249.00
5. Consultant will provide bi-weekly Project progress reports to ensure that the Project IS
progressing towards completion as scheduled.
Approximate Time and Cost: 22.63 hrs @ $110.00 = $2,490.00
6. Should it be necessary, coordinate meetings with the Developer and the Agency to resolve any
Project related issues that may arise that cannot be resolved by Consultant and the Developer.
Approximate Time and Cost: 2.26 hrs @ $110.00 = $249.00
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7. Consultant will provide the Agency with the required insurance coverage as described more
fully in Exhibit "C" of this Consultant Agreement.
The cost for these services will be a fixed hourly fee of $110.00 with a not-to-exceed dollar figure of
Twenty Four Thousand Nine-Hundred Dollars ($24,900.00) (the "Maximum Contract Amount"). In
addition, a fixed unit not to exceed fee will be applied for each item 1 through 6 listed above. At the
discretion of Agency staff identified in Exhibit "B", the dollar amounts for each item 1 through 6
above may be transferred to other items as may be directed by Agency staff. These fixed unit fees will
be paid if, in the determination of the Agency, they are required for the successful completion of the
overall Project. All compensation payable under this Contract shall be payable monthly in arrears and
in proportion to services performed on the total Contract for the immediately preceding month, and all
compensation payable hereunder to the Consultant shall not exceed the Maximum Contract Amount.
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