HomeMy WebLinkAboutR61-Economic Development
CITY OF SAN BERNARDINO 0 R I 61 NA L
ECONOMIC DEVELOPMENT AGENCY
FROM: Emil A. Marzullo
Interim Executive Director
SUBJECT:
TELACU Housing - San Bernardino IV, Inc. -
Amendment No. I to the 2008 HOME Funds
Loan and Grant Development Agreement
(IVDA Redevelopment Project Area)
DATE:
June 11,2009
SvnoDsis of Previous Commission/Council/Committee Action(s):
On June 4, 2009, Redevelopment Committee Members Johnson, Baxter and Brinker unanimously voted to recommend that the
Mayor and Common Council and/or the Community Development Commission consider this action for approval.
Recommended Motion(s):
Open/Close Joint Puhlic Hearing
(Mavor and Common Council)
Resolution of the Mayor and Common Council of the City of San Bernardino approving an amendment to the
City's 2005-2010 Consolidated Plan and the 2008-2009 Action Plan and allocating $902,476 in Federal HOME
and CHDO Grant Funds to TELACU Housing - San Bernardino IV, Inc., a California non-profit public benefit
corporation ("Developer") (lVDA Redevelopment Project Area)
(Communitv Develonment Commission)
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. I to the 2008 HOME Funds Loan and Grant Development Agreement
by and between the Agency and TELACU Housing - San Bernardino IV, Inc., a California non-profit public
benefit corporation ("Developer") (lVDA Redevelopment Project Area)
Contact Person(s):
Project Area(s):
Musibau Arogundade
IVDA Redevelopment Project Area
Phone:
(909) 663-1044
Ward(s):
4th
Supporting Data Attached:
o Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Letter(s)
Funding Requirements:
Amount: $ $902,476
Source:
HOME and CHDO Grant Program Funds
Fiscal Year 2008-2009 Budget
Budget Authority:
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. uss eJesus<
'interim Administrative Services Director
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Signature:
Emil A. Marzullo, Interim Executive Director
P\Agendas\Comm Dev CommissionlCDC 2009\07-06-09 rELACU Senior Housing IV - Amendment No I SRdoc
COMMISSION MEETING AGENDA
Meeting Date: 07/06/2009
Agenda Item Numher: _p-{gf
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
TELACU HOUSING - SAN BERNARDINO IV, INC. - AMENDMENT NO. I TO THE
2008 HOME FUNDS LOAN AND GRANT DEVELOPMENT AGREEMENT
(IVDA REDEVELOPMENT PROJECT AREA)
BACKGROUND:
TELACU Housing - San Bernardino IV, Inc. ("TELACU"), is a non-profit community development
corporation founded in the late 1960's to promote community and economic development activity. For
the past 20 years, TELACU has participated in the U.S. Department of Housing and Urban Development
("HUD") Section 202 Program ("Program"). TELACU has developed senior housing throughout many
communities in California such as Baldwin Park, EI Monte, Alhambra and Monterey Park. The Program
provides grants to qualified non-profits to finance the construction and management of affordable rental
housing for seniors. TELACU presently has three senior housing projects through the Program, with two
located in downtown San Bernardino ("City") and one on East Commercial Road east of Waterman
Avenue (225 units).
In November 2006, TELACU applied for a HUD Section 202 Grant ("202 Grant") and received an award
notification for $12.97 million (approximately $12.2 million of these funds can be used for construction
costs only). This amount includes an additional $929,393 ofHUD funds received through an amendment
process in March 2008 to construct and operate 90 units for seniors 62 years of age and older on the
property located on the southeast corner of Highland and Central Avenues consisting of approximately
3.4 acres (the "Site"). Please see the aerial map ofthe site attached as Exhibit "A."
The Site will be developed with a 90-unit, three-story senior citizen housing complex with a community
center of which 89 of the units will be one-bedroom with a living room, kitchen, and bathroom containing
approximately 540 square feet. There will also be a two-bedroom manager's unit on the premises
("Project"). The Project will contain plush and ample landscaping around the building with a water
fountain at the corner of Highland and Central Avenues. It will also contain a common multi-purpose
kitchen, library, laundry room, storage space, an attractive lobby/foyer and offices. The Site Plan
prepared by Gregory Villanueva Architects is attached as Exhibit "B."
CURRENT ISSUE:
The original Project budget was estimated at $15.5 million. The budget includes land costs, construction
costs, development and architectural fees, and off-site improvements, which are not covered by the 202
Grant. Through several consultation meetings with the City Engineer, it was understood that as a
condition of development approval, TELACU will be required to mitigate the on- and off-site drainage
and off-site traffic signal issues affecting the Site at a cost of approximately $2.2 million. The City would
contribute $200,000 from the 2007-2012 budgeted CIP for the off-site improvements.
On February 19, 2008, the Mayor and Common Council of the City of San Bernardino ("Council") and
the Community Development Commission of the City of San Bernardino ("Commission") approved the
$3.2 million HOME Funds loan with a forgiveness provision for the Project in the 2008 HOME Funds
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P:\AgendasIComm Dev Commission\CDC 2009\07-06-09 TELACU Senior Housing IV - Amendment No 1 SR,doc
COMMISSION MEETING AGENDA
Meeting Date: 07/06/2009
A2enda Item Nnmber: ~("
Economic Development Agency Staff Report
TELACU IV Senior Housing Amendment No.1
Page 2
Loan and Grant Development Agreement ("2008 Loan and Grant Agreement"). Since the approval of the
2008 Loan and Grant Agreement, the Developer has completed site investigations and has been made
aware by the City that utilities would be required to be relocated from Highland Avenue to Central
Avenue and be installed underground; and the City's impact and permit fee increase went into effect in
January 2009, all at an additional cost estimated at $2,868,244. The original Project estimated cost was
$15.5 million. The estimated new Project cost is $17,294,444. In order to meet this funding gap, the
Developer is allocating $136,375 in deferred Developer fees for the Project and requested an additional
$1,829,393 in HUD Section 202 funds leaving a gap of $902,476. This is the same dollar amount of
additional funds that the Developer is requesting from the Agency and the subject of Amendment No. 1 to
the 2008 Loan and Grant Agreement. Please refer to the revised budget table attached as Exhibit "C."
In order to accommodate this Project proposal, Agency Staff must prepare an Amendment to the City's
2005-2010 Consolidated Plan and 2008-2009 Annual Action Plan to reflect the change in the HOME
Program Project amount. In compliance with the City's approved Citizens Participation Plan and
CDBGIHOME regulation under 24 CFR 570.302 and 24 CFR 91.105, on June 5, 2009, and on July 3,
2009, the required public notice of this Amendment to the 2005-2010 Consolidated Plan and the 2008-
2009 Action Plan was published in the San Bernardino County Sun, inviting and requesting citizens to
provide written and/or oral comments with regards to this Amendment at this meeting.
Separately, on February 18, 2009, the Planning Commission approved the Development Code
Amendment No. 08-01 and Conditional Use Permit No. 08-28, to move the Project forward to
development. On April 20, 2009, the Mayor and Common Council approved the Planning Commission's
recommendation to approve the Development Code Amendment by amending Chapter 19.06 of the
Development Code relative to Senior Housing and Congregate care housing.
ENVIRONMENT AL IMPACT:
The Project is exempt from the National Environmental Policy Act ("NEPA") under 24 CFR 58.35 and
the California Environmental Quality Act ("CEQA"), pursuant to Section 15332, in-fill development, and
no further environmental document is required pursuant to Section 15168 of the CEQA guidelines.
FISCAL IMPACT:
The $902,476 obligation will be funded from the Agency's general HOME and CHDO Grant Program
Funds approved in the 2008-2009 Budget and as shall be authorized by this proposed action.
RECOMMENDATION:
That the Mayor and Common Council and the Community Development Commission adopt the attached
Resolutions.
~
Emil A. Marzullo, Interim Executive Director
P:\Agcndas\Comm Dev Commissioll\CDC 2009\07-06-09 TELACU Senior Housing IV _ Amendment No.1 SR.doc
COMMISSION MEETING AGENDA
Meeting Date: 07/06/2009
Agenda Item Number: fLCll
JUL -13-2DEJ9 12: 42 FRClI"'1:
TO: 96632294
P.l
2009-263
1 WHEREAS, on March 3, 2008, the Community Development Commission of the City of
2 San Bernardino ("Commission") approved the 2008 HOME Funds Loan and Grant Development
i
3 Agreement ("HOME Agreement") between Ihe Agency and the Developer; and
4 WHEREAS. the Agency deems that the senior housing development undertaken by the
5 Developer herein is consistent with and supportive of the Agency's Housing Program and HOME
6 Program Regulations; and
7 WHEREAS. the Agency deems it desirable to enter into this Amendment 10 the HOME
8 Agreement ("Amendment No. I") with the Developer to provide an additional $902,476 in Federal
9 HOME and CHDO funds to pay for the increase in reYl.lired City development impact fees and the
10 costs associated with City required under-grounding and relocation of overhead utilities; and
11 WHEREAS, the Council desires to amend the Consolidated Plans and allocate $902,476 of
12 Federal HOME and CIIDO Grants to the Developer; and
13 WHEREAS, Ihe Project is exempt from the National Environmental Policy Act ("NEPA")
14 under 24 CFR 58.35 and the California Environmental Quality Act ("CEQA"). pursuant to Section
15 15332, in-fill development.
16 NOW, THEREFORE, IT IS HEREBY RESOLVED. DETERMINED AND ORDERED BY
17 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SA},; BERNARDINO, AS
18 FOLLOWS:
19
Section 1.
The Council hereby approves the amendment to both the (i) 2005-2010
20 Consolidated Plan and the (ii) 2008-2009 Action Plan of the City. Such amendment is with respect
21 to the allocation of an additional amount not to exceed $902,476 in Federal HOME and CHDO
22 Program Funds to the Developcr. Such allocation of funds is subject to approval of the
23 Amcndmcnt No. I to the HOME Agrecmcnt as may bc approved by the Community Development
24 Commission of the City of San Bernardino ("Commission") together with such amendment to the
25 (i) 2005-2010 Consulidated Plan and the (ii) 2008-2009 Action Plan and the Amendment No.1 to
26 the HOME Agre~ment as resented to the Commission and as attached to this Resolutio~
AI the Joint Public hearing of the Councilan Ol11mlSSlon conducted on this date, oral and
27
28\
written comments were considered before the adoption of this Resolution.
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P \Ag~nda;;\Resoll1l."ns\Reso\.111.ln<;\2(,:.J9\07.06-09 IFLACl' IV Arlcndmem:-;o 1 \K'C' R~o doc
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1 WHEREAS, on March 3, 2008, the Community Development Commission of the City of
2 San Bernardino ("Commission") approved the 2008 HOME Funds Loan and Grant Development
3 Agreement ("HOME Agreement") between the Agency and the Developer; and
4 WHEREAS, the Agency deems that the senior housing development undertaken by the
5 Developer herein is consistent with and supportive of the Agency's Housing Program and HOME
6 Program Regulations; and
7 WHEREAS, the Agency deems it desirable to enter into this Amendment to the HOME
8 Agreement ("Amendment No. I") with the Developer to provide an additional $902,476 in Federal
9 HOME and CHDO funds to pay for the increase in required City development impact fees and the
10 costs associated with City required under-grounding and relocation of overhead utilities; and
11 WHEREAS, the Council desires to amend the Consolidated Plans and allocate $902,476 of
12 Federal HOME and CHDO Grants to the Developer; and
13 WHEREAS, the Project is exempt from the National Environmental Policy Act ("NEPA")
14 under 24 CFR 58.35 and the California Environmental Quality Act ("CEQA"), pursuant to Section
15 15332, in-fill development.
16 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
17 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
18 FOLLOWS:
19
Section 1.
The Council hereby approves the amendment to both the (i) 2005-2010
20 Consolidated Plan and the (ii) 2008-2009 Action Plan of the City. Such amendment is with respect
21 to the allocation of an additional amount not to exceed $902,476 in Federal HOME and CHDO
22 Program Funds to the Developer. Such allocation of funds is subject to approval of the
23 Amendment No. I to the HOME Agreement as may be approved by the Community Development
24 Commission of the City of San Bernardino ("Commission") together with such amendment to the
25 (i) 2005-2010 Consolidated Plan and the (ii) 2008-2009 Action Plan and the Amendment No. I to
26 the HOME Agreem
.
27
o he Council and Commission conducted on this date, oral and
28 written comments were considered before the adoption of this Resolution.
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P:\Agendas\Rcsolulions\Resollllions\2009\07_06_09 TELACU IV Amendment No, ] MCC ReSQ,doe
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RESOLUTION NO.
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING AN AMENDMENT TO THE CITY'S
2005-2010 CONSOLIDATED PLAN AND THE 2008-2009 ACTION PLAN
AND ALLOCATING $902,476 IN FEDERAL HOME AND CHDO GRANT
FUNDS TO TELACU HOUSING - SAN BERNARDINO IV, INC., A
CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION
("DEVELOPER") (IVDA REDEVELOPMENT PROJECT AREA)
WHEREAS, the City of San Bernardino (the "City") is an entitlement jurisdiction and
9 annually receives certain federal funds under the HOME Investment Partnership Act (the "HOME
10 Program") from the United States Department of Housing and Urban Development ("BUD"), in
11 order to carry out eligible affordable housing activities within the City in accordance with the
12 HOME Program Regulations set forth in Title 24 Code of Federal Regulations Part 92, et seq. (24
13 CFR Part 92); and
14
WHEREAS, on May IS, 2008, the Mayor and Common Council of the City of San
15 Bernardino ("Council") approved the City's 2005-2010 Consolidated Plan and the 2008-2009
16 Action Plan; and
17
WHEREAS, III compliance with the City's approved Citizens Participation Plan and
18 CDBG/HOME regulation under 24 CFR 570.302 and 24 CFR 91.105, on June 5, 2009 and, July 3,
19 2009, the required public notice of this amendment to the 2005-2010 Consolidated Plan and the
20 2008-2009 Action Plan was published in the San Bernardino County Sun newspaper, inviting and
21 requesting citizens to provide written and or oral comments with regards to this amendment at this
22 meeting, and as of this date, Agency Staff has not received any oral or written comments regarding
23 this amendment; and
24
WHEREAS, TELACU Housing - San Bernardino IV, Inc., a California non-profit
25 public benefit corporation ("Developer"), is a regional and locally certified, approved and
26 experienced non-profit housing organization that obtained approval from the United States
27 Department of Housing and Urban Development ("HUD") Section 202 Grant ("HUD Grant") for
28 the construction and operation of a 90-unit senior housing facility (the "Project"); and
I
P:\AgcndasIRCIoOI1IIioll$\Rcwlulions\2009\01..{)6...Q9 TELACU IV Amendmenl No. I MCC Reso.doc
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f{ 6/
1 WHEREAS, on March 3, 2008, the Community Development Commission of the City of
2 San Bernardino ("Commission") approved the 2008 HOME Funds Loan and Grant Development
3 Agreement ("HOME Agreement") between the Agency and the Developer; and
4 WHEREAS, the Agency deems that the senior housing development undertaken by the
5 Developer herein is consistent with and supportive of the Agency's Housing Program and HOME
6 Program Regulations; and
7 WHEREAS, the Agency deems it desirable to enter into this Amendment to the HOME
8 Agreement ("Amendment No. I") with the Developer to provide an additional $902,476 in Federal
9 HOME and CHDO funds to pay for the increase in required City development impact fees and the
10 costs associated with City required under-grounding and relocation of overhead utilities; and
.11 WHEREAS, the Council desires to amend the Consolidated Plans and allocate $902,476 of
12 Federal HOME and CHDO Grants to the Developer; and
13 WHEREAS, the Project is exempt from the National Environmental Policy Act ("NEPA")
14 under 24 CFR 58.35 and the California Environmental Quality Act ("CEQA"), pursuant to Section
15 15332, in-fill development.
16 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
17 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
18 FOLLOWS:
19
Section 1.
The Council hereby approves the amendment to both the (i) 2005-2010
20 Consolidated Plan and the (ii) 2008-2009 Action Plan of the City. Such amendment is with respect
21 to the allocation of an additional amount not to exceed $902,476 in Federal HOME and CHDO
22 Program Funds to the Developer. Such allocation of funds is subject to approval of the
23 Amendment No. I to the HOME Agreement as may be approved by the Community Development
24 Commission of the City of San Bernardino ("Commission") together with such amendment to the
25 (i) 2005-2010 Consolidated Plan and the (ii) 2008-2009 Action Plan and the Amendment No. I to
26 the HOME Agreement as presented to the Commission and as attached to this Resolution" \
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27 At the Joint Public hearing of the Council and Commission conducted on this date, oral and
28 written comments were considered before the adoption of this Resolution.
2
P \Agcndas\Resolulions\Resolulions\2009\07-06-09 TELACU IV Amendment "'0 I Mec Rc:sodoc
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Section 2.
The Commission makes a finding that the Project is exempt from NEPA
2 under 24 CFR 58.35 and CEQA, pursuant to Section 15332 of the CEQA guidelines, constitutes an
3 in-fill development, and no further environmental document is required pursuant to Section 15168
4 of the CEQA guidelines.
5
Section 3.
This Resolution shall take effect upon its adoption and execution in the
6 manner as required by the City Charter.
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P\Al!cnda5\Resolutions\Resolulions\2009\07_06_09 TELACL' IV Amendment No.1 Mec Reso.doc
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING AN AMENDMENT TO THE CITY'S
2005-2010 CONSOLIDATED PLAN AND THE 2008-2009 ACTION PLAN
AND ALLOCATING $902,476 IN FEDERAL HOME AND CHDO GRANT
FUNDS TO TELACU HOUSING - SAN BERNARDINO IV, INC., A
CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION
("DEVELOPER") (IVDA REDEVELOPMENT PROJECT AREA)
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
7 Common Council of the City of San Bernardino at a
8 thereof, held on the
9 Council Members:
10 ESTRADA
11 BAXTER
12 BRlNKER
13 SHORETT
14 KELLEY
15 JOHNSON
16 MC CAMMACK
17
18
19
meeting
day of
,2009, by the following vote to wit:
Aves
Navs
Abstain
Absent
Rachel G. Clark, City Clerk
21
20 The foregoing Resolution is hereby approved this
22
23
24
25 Appro
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By:_
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28
day of
,2009.
C 11 --( A .oCT 0 ~ /-1"i
.p f) NO T J I G.-f'J.
Patrick J. Morris, Mayor
City of San Bernardino
P:\Ago:ndas"
ATTACHMENT 1
AMENDMENT NO.1
TO THE
2008 HOME FUNDS LOAN AND GRANT AGREEMENT
BY AND BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND
TELACU HOUSING - SAN BERNARDINO IV, INC.
This Amendment No. I to the 2008 HOME Funds Loan and Grant Agreement (this
"Amendment No. I") is entered into on July 6, 2009, by and between the Redevelopment Agency of
the City of San Bernardino (the "Agency"), a public body, corporate and politic, and TELACU
Housing- San Bernardino IV, Inc., a California nonprofit public benefit corporation (the "Developer"),
and is entered into in consideration of the facts set forth in the following Recital paragraphs:
-RECIT ALS-
A. The Developer and the Agency have previously entered into an agreement entitled
"2008 HOME Funds Loan and Grant Development Agreement", dated as of March 17, 2008 (the
"HOME Agreement").
B. As of the effective date of this Amendment No.1, the Developer received from the
United States Department of Housing and Urban Development ("HUD") Section 202 Capital Advance
Program Funding for the Project in the amount of $11,226,200, a rental assistance contract in the
amount of $434,900 and a budget contract in the amount of $1,304,700. The Developer has also
secured an additional $1,829,393 in HUD 202 Amendment money to cover portions of the Project cost.
C The Agency is desirous of assisting the Developer in the construction of the Project and
has previously provided $1,300,000 in HOME Loan pursuant to the HOME Agreement for the
acquisition of the Site with the loan repayment amounts then being utilized to provide certain
additional grant funds in addition to $1,900,000 in grant for a total grant of $3,200,000 pursuant to the
HOME Agreement for off-site and adjacent public improvements within street rights-of-way, including
street roadways, sidewalks, curb and gutter, street lighting, undergrounding of overhead utilities and
installation of signal lights ("Off-Site Improvements") and exterior amenities upgrades. However, due
to increases in the City of San Bernardino development impact fees and permit fees, applicable to the
City required under-grounding and relocation of overhead utilities, the Developer has requested
additional assistance in the amount of $902,476 under this Amendment No. I for a total of $4,102,476
in Agency Federal HOME Funds, to cover the increase in City development impact fees and permit
fees and costs associated with City required under-grounding and relocation of overhead utilities.
D. The Agency has determined that the development of the Site pursuant to the HOME
Agreement and this Amendment No. I and the fulfillment generally of the purposes of the HOME
Agreement are in the vital and best interests of the City and the Agency.
P:\Agendas\Agenda AnaehmenUlAgenda AttKhmentslAgenda Anachmcnl5\Agmm_Amc:nd 2009\01-01:Hl9 TELACU IV.. Amendment No. 110 HOME Agreement,do<:
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NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS
FOLLOWS:
Section 1. References to the HOME Al!reement: Defined Terms. (a) Unless the context
of the usage of a term or phrase in this Amendment No. I may otherwise require, the meaning of
words and phrases as contained in this Amendment No. I, which are indicated by an initially
capitalized letter, shall be the same as set forth in the HOME Agreement.
(b) The information contained in the Recitals as set forth in this Amendment No. I is true and
correct in all respects.
Section 2. Specific Amendments to the 2008 HOME A!!reement. (a) The HOME
Agreement is hereby amended by this Amendment No. I in the manner as indicated in this Section 2
and which changes and amendments shall be effective from and after the date of approval of this
Amendment No. I by the Developer and the Agency and execution hereof by the parties.
(b) Section 402 of the HOME Agreement is hereby amended by substituting the following
chart in place of that as is presently provided in the HOME Agreement:
Construction and Permanent Financing:
Amount of Section 202 Capital Advance
Amount of Section 202 Amendment money
Amount of deferred Developer fees
Amount of Agency HOME Grant
Total Development Cost
$11,226,200
$ 1,829,393
$ 136,375
$ 4,102.476
$17,294,444
(c) The term "Agency Grant" as defined and as used in the HOME Agreement shall be in an
amount equal to $4, I 02,4 76 pursuant to this Amendment No. I.
(d) Section 404 of the HOME Agreement is amended by adding the word "City development
impact and permit fees and cost associated with City required under-grounding and relocation of
overhead utilities" into the penultimate sentence of said Section.
Section 3. Effect of Amendment No.1. Except as modified or amended by this
Amendment No. I, all of the provisions of the HOME Agreement shall remain in full force and effect
following the effective date of this Amendment No. I.
/II
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P:\AgendaslAgenda AttachmentslAgenda AttachmenlSlAgenda AnachmenlslAgrrnts-Amend 2009\07_06-09 TELACl: IV _ Amendment No. 110 HOME Agreementdoc:
IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this
Amendment No. I upon the terms and conditions and with the provisions as set forth above and as of
the date fust written above.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Date:
By:
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content:
By: (/~~~
Agency 0 el
DEVELOPER
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P:'.Agendas\.'\\!enda Attachmenn\Agenda Attachmcms\Agenda Attachmcnts\Agnnts_Amcnd 2009\07-06-09 TELACL' IV _ Arr,cndmcnt No.1 to HOME AgTeemcnldoc
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RESOLUTION NO.
t(Q)[P
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 2008 HOME FUNDS LOAN AND
GRANT DEVELOPMENT AGREEMENT BY AND BETWEEN THE
AGENCY AND TELACU HOUSING - SAN BERNARDINO IV, INC., A
CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION (IVDA
REDEVELOPMENT PROJECT AREA)
WHEREAS, rELACU Housing - San Bernardino IV, Inc., a California non-profit public
9
benefit corporation ("Developer"), is a regional and locally certified, approved and experienced non-
to
profit housing organization that obtained approval from the United States Department of Housing
11
and Urban Development ("HUD") Section 202 Grant ('"HUD Grant") for the construction and
13
12
operation of a 90-unit senior housing facility (the "Project"); and
WHEREAS, on March 3, 2008, the Community Development Commission of the City of
14
San Bernardino ("Commission") approved the 2008 HOME Funds Loan and Grant Development
15
Agreement ("HOME Agreement") between the Agency and the Developer; and
16
17
Developer herein is consistent with and supportive of the Agency's Housing Program and HOME
WHEREAS, the Agency deems that the senior housing development undertaken by the
18
Program Regulations; and
19
WHEREAS, the Agency deems it desirable to enter into Amendment No. I to the HOME
20
Agreement ("Amendment No. I") on the form as attached hereto as Exhibit "A"with the Developer
21
to provide an additional $902,476 in Federal HOME and CHDO funds to pay for the increase in
22
required City development impact fees and the costs associated with City required under-grounding
24
23
and relocation of overhead utilities; and
WHEREAS, the Project is exempt from the National Environmental Policy Act ("NEPA")
25
under 24 CFR 58.35 and the California Environmental Quality Act ("CEQA"), pursuant to Section
26
15332, in-fill development, and no further environmental document is required pursuant to Section
27
15168 of the CEQA guidelines.
28 / / /
I
P\Agendas'Resolutions'Resollllions\2009\07_06-09 TELACV IV Amendment No I COC Resodoc
1 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
2 OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS FOLLOWS:
3
Section 1.
The Commission authorizes an additional appropriation in an amount not to
4 exceed $902,476 from the Federal HOME and CHDO Program Funds budgeted in the Agency's
5 fiscal year 2008-2009 budget for the Developer and the Interim Executive Director of the
6 Redevelopment Agency of the City of San Bernardino ("Agency") or designee, are authorized to
7 execute Amendment No. I and execute any such other documents as may be necessary to implement
8 the HOME Agreement and Amendment No. I and to make any necessary non-substantive changes
9 as may be approved by Agency Counsel, provided such changes do not increase the Agency's
10 financial contribution to the Project.
'11
Section 2.
The Commission makes a finding that the Project is exempt from NEPA
12 under 24 CFR 58.35 and CEQA, pursuant to Section 15332 of the CEQA Guidelines, constitutes an
13 in-fill development, and no further environmental document is required pursuant to Section 15168
14 of the CEQA guidelines, and the Commission further authorizes and directs that the necessary
15 Notices of Determination and Exemption be filed with HUD and the County Clerk.
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18 / / /
19 / / /
Section 3.
The Resolution shall become effective immediately upon its adoption.
2
PlAgendas\Resolulions\Resolutions\2009\07_06_09 TELACU IV Amendment 1'00 1 CDC Reso.doc
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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 2008 HOME FUNDS LOAN AND
GRANT DEVELOPMENT AGREEMENT BY AND BETWEEN THE
AGENCY AND TELACU HOUSING - SAN BERNARDINO IV, INC., A
CALIFORNIA NON-PROFIT PUBLIC BENEFIT CORPORATION (IVDA
REDEVELOPMENT PROJECT AREA)
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
8 Development Commission of the City of San Bernardino at a
,2009, by the following vote to wit:
The foregoing Resolution is hereby approved this
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meeting
Navs
Abstain
Absent
-,--
Secretary
day of
,2009.
Patrick J. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
25 Approved as to Form:
~: By: ( f::!r~
Agency ou~~
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P\Agendas\Resolutions\Resolutions\2()()QI07_06_09 TELACl: IV Amendment No.1 Coe Reso.doc
AMENDMENT NO.1
TO THE
2008 HOME FUNDS LOAN AND GRANT AGREEMENT
BY AND BETWEEN
THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO
AND
TELACU HOUSING - SAN BERNARDINO IV, INC.
This Amendment No. I to the 2008 HOME Funds Loan and Grant Agreement (this
"Amendment No. I") is entered into on July 6, 2009, by and between the Redevelopment Agency of
the City of San Bernardino (the "Agency"), a public body, corporate and politic, and TELACU
Housing- San Bernardino IV, Inc., a California nonprofit public benefit corporation (the "Developer"),
and is entered into in consideration of the facts set forth in the following Recital paragraphs:
-RECITALS-
A. The Developer and the Agency have previously entered into an agreement entitled
"2008 HOME Funds Loan and Grant Development Agreement", dated as of March 17, 2008 (the
"HOME Agreement").
B. As of the effective date of this Amendment No. I, the Developer received from the
United States Department of Housing and Urban Development ("HUD") Section 202 Capital Advance
Program Funding for the Project in the amount of $11,226,200, a rental assistance contract in the
amount of $434,900 and a budget contract in the amount of $1,304,700. The Developer has also
secured an additional $1,829,393 in HUD 202 Amendment money to cover portions of the Project cost.
C The Agency is desirous of assisting the Developer in the construction of the Project and
has previously provided $1,300,000 in HOME Loan pursuant to the HOME Agreement for the
acquisition of the Site with the loan repayment amounts then being utilized to provide certain
additional grant funds in addition to $1,900,000 in grant for a total grant of $3,200,000 pursuant to the
HOME Agreement for off-site and adjacent public improvements within street rights-of-way, including
street roadways, sidewalks, curb and gutter, street lighting, undergrounding of overhead utilities and
installation of signal lights ("Off-Site Improvements") and exterior amenities upgrades. However, due
to increases in the City of San Bernardino development impact fees and permit fees, applicable to the
City required under-grounding and relocation of overhead utilities, the Developer has requested
additional assistance in the amount of $902,476 under this Amendment No. I for a total of $4, I 02,476
in Agency Federal HOME Funds, to cover the increase in City development impact fees and permit
fees and costs associated with City required under-grounding and relocation of overhead utilities.
D. The Agency has determined that the development of the Site pursuant to the HOME
Agreement and this Amendment No. I and the fulfillment generally of the purposes of the HOME
Agreement are in the vital and best interests of the City and the Agency.
I
P\Ageooas\Agenda Attachments\Agenda AttachmentslAgenda Anachments\Agrmts-Amend 2009\07-06-09TELACU IV _ Amendment No 110 HOME Agrecmenldoc
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND
CONDITIONS CONTAINED HEREIN, THE AGENCY AND THE DEVELOPER AGREE AS
FOLLOWS:
Section 1. References to the HOME A2reement: Defined Terms, (a) Unless the context
of the usage of a term or phrase in this Amendment No. I may otherwise require, the meaning of
words and phrases as contained in this Amendment No. I, which are indicated by an initially
capitalized letter, shall be the same as set forth in the HOME Agreement.
(b) The information contained in the Recitals as set forth in this Amendment No. I is true and
correct in all respects.
Section 2. Snecific Amendments to the 2008 HOME A2reement. (a) The HOME
Agreement is hereby amended by this Amendment No. I in the manner as indicated in this Section 2
and which changes and amendments shall be effective from and after the date of approval of this
Amendment No. I by the Developer and the Agency and execution hereof by the parties.
(b) Section 402 of the HOME Agreement is hereby amended by substituting the following
chart in place of that as is presently provided in the HOME Agreement:
Construction and Permanent Financing:
Amount of Section 202 Capital Advance
Amount of Section 202 Amendment money
Amount of deferred Developer fees
Amount of Agency HOME Grant
Total Development Cost
$11,226,200
$ 1,829,393
$ 136,375
$ 4.102.476
$17,294,444
(c) The term "Agency Grant" as defined and as used in the HOME Agreement shall be in an
amount equal to $4,102,476 pursuant to this Amendment No.1.
(d) Section 404 of the HOME Agreement is amended by adding the word "City development
impact and permit fees and cost associated with City required under-grounding and relocation of
overhead utilities" into the penultimate sentence of said Section.
Section 3. Effect of Amendment No.!. Except as modified or amended by this
Amendment No. I, all of the provisions of the HOME Agreement shall remain in full force and effect
following the effective date of this Amendment No. I.
//1
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P:\Agendas\Agenda AltachmenlslAgenda AttachmentslAgenda AnachmentslAgrmn-Amend 2009\01-06-09 TELACU IV _ Amendment No. 110 HOME Agreemenldoc
IN WITNESS WHEREOF, the parties hereto have accepted and made and executed this
Amendment No. I upon the terms and conditions and with the provisions as set forth above and as of
the date first written above.
AGENCY
Redevelopment Agency of the City of San Bernardino,
a public body, corporate and politic
Date:
By:
Emil A. Marzullo, Interim Executive Director
Approved as to Form and Legal Content:
By: C/~~~J-
Agency ou el
DEVELOPER
TELACU Housing - San Bernardino IV, Inc.,
a California nonprofit public benefit corporation
Date:
By:
Title:
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P\AgendaslAgenda Attachments\..o\genda Allachmcnl!i\Agenda Attachmcnts'Agrmts-Amend 2009\07.06_09 TELACU IV _ Amendment No 110 HOME Agreement doc