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HomeMy WebLinkAboutCDC/2009-25 I 2 3 4 5 6 7 8 RESOLUTION NO. CDC/2009-25 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING THE FORGIVENESS OF $30,000 PER PARCEL SALES PRICE ON THREE AGENCY-OWNED PARCELS PURSUANT TO THE TERMS OF THE 2005 MEADOWBROOK SINGLE FAMILY RESIDENTIAL DEVELOPMENT AGREEMENT AND ITS SUBSEQUENT AMENDMENT NOS. I, 2 AND 3 WITH MEADOWBROOK PARK HOMES, INC. (IVDA REDEVELOPMENT PROJECT AREA) WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a 9 public body, corporate and politic; and 10 WHEREAS, on January 10,2005, the Community Development Commission of the City of 11 San Bernardino CCommission") and the Mayor and Common Council of the City of San 12 Bernardino CCouncil") approved and authorized the execution of the 2005 Meadowbrook Single 13 Family Residential Development Agreement ("2005 Agreement") between the Agency and 14 Meadowbrook Park Homes, Inc. (the "Developer"), to acquire ten (10) Agency Lots and to develop IS and sell new single-family homes to income eligible homebuyers to the extent required by the 2005 16 Agreement; and 17 WHEREAS, on February 6, 2006, the Commission and the Council approved and 18 authorized the execution of Amendment No. I to the 2005 Agreement; and 19 WHEREAS, on January 22, 2007, the Commission and Council approved and authorized 20 the execution of Amendment No.2 to the 2005 Agreement; and 21 WHEREAS, on November 17, 2007, the Commission and Council approved and authorized 22 the execution of Amendment No.3 to the 2005 Agreement, and Amendment Nos. I, 2, 3 and the 23 2005 Agreement are collectively referred to herein as the "2005 Agreement"; and 24 WHEREAS, under the terms of the 2005 Agreement, three (3) remaining Agency parcels 25 located at 163 and 171 North Allen Street and 167 2nd Street were developed with single-family 26 homes by the Developer with a construction loan of $750,000 from Pomona First Federal Bank and 27 Trust CPFF") ; and 28 I P:'v\gendas'.Resolutions\Resolulions\2009\06_01_09 Meadowbrook Parks Home - Loan Forgiveness COC Rese.doc CDC/Z009-Z5 1 WHEREAS, the Developer initially estimated the sales price of each single family home to 2 be $397,000, as an amount sufficient to pay-off the construction loans, Agency parcel purchase 3 price and to realize some dollar amount of profits to the Developer; and 4 WHEREAS, the current economic downturn has made it unfeasible to sell the homes at the 5 initially estimated $397,000 sales price and the Developer has reached an agreement with PFF to 6 sell each home at a sales price of $190,000 and together with a forgiveness of the remaining 7 outstanding construction loan balance; and 8 WHEREAS, the Agency's parcel purchase price of $30,000 each is subordinate to the 9 construction loan, and after the sale at the current real estate market prices there will be no funds 10 remaining after the construction loans are paid-off to repay the Agency loans; and 11 WHEREAS, the Agency's 45-year Covenant, Conditions and Restrictions (CC&R) will be 12 recorded on each parcel to enable the Agency to receive credit towards affordable housing 13 production in compliance with the Community Redevelopment Law Section 33334.2 and 33334.3 14 and the other requirements of the Inland Valley Development Agency ("IVDA") Redevelopment 15 Project Area wherein the three (3) Agency parcels are located; and 16 WHEREAS, the requested action is exempt under the California Environmental Quality Act 17 ("CEQA"), Class 6, Section 15306 because the requested action will not result in the disturbance to 18 any environmental resources. 19 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 20 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS 21 FOLLOWS: 22 Section 1. The Commission hereby approves the forgiveness of the sales pnce of 23 $30,000 per parcel on the three Agency-owned parcels pursuant to the terms of the 2005 Agreement 24 with Meadowbrook Park Homes, Inc. 25 26 / / / 27 / / / 28 1/1 Section 2. This Resolution shall take effect upon its adoption and execution. 2 P'\Agcndas\Rcwlutions\Resolutions\1009\06_01_09 Meadowbrook Parks Home _ Loan Forgiven", eve Rew,doc CDC/2009-25 1 2 3 4 5 6 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING THE FORGIVENESS OF $30,000 PER PARCEL SALES PRICE ON THREE AGENCY-OWNED PARCELS PURSUANT TO THE TERMS OF THE 2005 MEADOWBROOK SINGLE FAMILY RESIDENTIAL DEVELOPMENT AGREEMENT AND ITS SUBSEQUENT AMENDMENT NOS. 1, 2 AND 3 WITH MEADOWBROOK PARK HOMES, INC. (IVDA REDEVELOPMENT PROJECT AREA) 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a j oint regular meeting ,2009, by the following vote to wit: Navs Abstain Absent x /~ (.~ ;~ 19 Secretary 20 The foregoing resolution is hereby approved this [) ~ day of June ,2009. 21 22 23 24 25 ~~erson ommunity Development Commission of the City of San Bernardino Approved as to Form: 26 By: \~Mwl. 27 Agen CJ~sel 28 3 P:\Al!endas\Resolutjons'ReSQlution,\200~\06_01.09 Meadowbrook Park< Home. Loan Forgiveness CDC Re,o.doc