HomeMy WebLinkAboutCDC/2007-27
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RESOLUTION NO. CDC/2007-27
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE
AMENDMENT NO.3 TO THE 2005 MEADOWBROOK SINGLE FAMILY
RESIDENTIAL DEVELOPMENT AGREEMENT BY AND BETWEEN THE
AGENCY AND MEADOWBROOK PARK HOMES, INC., AND MAKING
CERTAIN FINDINGS AND DETERMINATIONS RELATED TO SAID
AMENDMENT NO.3 (IVDA REDEVELOPMENT PROJECT AREA)
WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") is a
10 public body, corporate and politic; and
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WHEREAS, on January 10,2005, the Community Development Commission of the City of
12 San Bernardino ("Commission") and the Mayor and Common Council of the City of San
13 Bernardino ("Council") approved and authorized the execution of the 2005 Meadowbrook Single
14 Family Residential Development Agreement ("2005 Agreement") between the Agency and
IS Meadowbrook Park Homes, Inc. ("Developer"), to acquire ten (10) Agency Lots and to develop
16 and sell new single-family homes to income eligible homebuyers to the extent required by the 2005
17 Agreement; and
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WHEREAS, on February 6, 2006, the Commission and the Council approved and
19 authorized the execution of Amendment No. I to the 2005 Agreement; and
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WHEREAS, on January 22, 2007, the Commission and Council approved and authorized
21 the execution of Amendment No.2 to the 2005 Agreement, and Amendment Nos. I, 2 and the
22 2005 Agreement are collectively referred to herein on as the "2005 Agreement"; and
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WHEREAS, the Agency and the Developer seek to amend the 2005 Agreement as follows
24 in the manner as contained in Amendment No.3 to the 2005 Agreement:
1. Transfer to the Developer, the property located at 167 East 2"d Street, San Bernardino,
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California (APN: 0135-291-12) (the "Additional Agency Lot") for a purchase price of
$30,000 for the development of one (I) income and sales price restricted new home ("New
Home"); and
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1 11. Extend the Schedule of Performance from December 31, 2007, to December 31, 2008, to
2 allow the Developer additional time to build and sell the New Home; and
3 111. The Developer shall develop and improve the Additional Agency Lot as transferred to the
4 Developer pursuant to the 2005 Agreement and Amendment No.3 with a New Home, using
5 the design and improvement standards which are consistent with City Development Permit
6 Ill, No. 03-34, as previously approved by the Planning Commission on November 18,2003;
7 and
8 WHEREAS, the Agency has prepared and published a notice of a joint public hearing in the
9 San Bernardino County Sun newspaper on September 3, 2007, and September 10, 2007, regarding
10 the consideration and approval of Amendment No.3 to the 2005 Agreement; and
11 WHEREAS, pursuant to Health and Safety Code Section 33433(c), the Agency may transfer
12 the Additional Agency Lot to the Developer subject to the Council and Commission adopting
13 appropriate Resolutions authorizing the Agency to transfer such Additional Agency Lot in light of
14 the findings set forth herein, pursuant to Health and Safety Code Section 33433; and
15 WHEREAS, the Agency has prepared a Summary Report that describes the salient points of
16 Amendment No.3 to the 2005 Agreement and identifies the cost to the Agency of the disposition of
17 the Additional Agency Lot for development of income and sales price restricted New Home; and
18 WHEREAS, pursuant to Health and Safety Code Section 33334.3G) and in order to comply
19 with the requirements thereof, the Commission, as the governing body of the Agency, is required to
20 make certain findings and determinations based upon substantial evidence as presented to the
21 Commission to the effect that as the result of the increases in the housing prices due to the
22 escalating costs of labor and materials within the City of San Bernardino ("City") since the date of
23 the 2005 Agreement, the Agency has incurred and paid expenditures from the Low- and Moderate-
24 Income Housing Fund of the Agency that exceed 50% of the cost of producing the New Home to be
25 constructed by the Developer upon the Additional Agency Lot and that the Developer has made a
26 good faith attempt but has not been able to obtain commercial or private means of financing for the
27 one (1) New Home at the same level of affordability and quality as required by the Agency in
28 accordance with the terms and provisions of the 2005 Agreement but for the inclusion of the
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1 additional assistance as shall be obtained from the Agency from funds attributable to the Low- and
2 Moderate-Income Housing Fund as hereinafter set forth in this Resolution and in Amendment No.3
3 to the 2005 Agreement.
4 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE
5 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
6 FOLLOWS:
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Section 1.
The Recitals contained in this Resolution are true and correct in all respects.
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Section 2.
On September 17, 2007, the Commission and the Council conducted a full
9 and fair joint public hearing and considered the written Agency Staff Report relating to Amendment
10 No.3 to the 2005 Agreement, the Summary Report and the testimony submitted relating to the
11 disposition and development of the Additional Agency Lot by the Developer pursuant to the terms
12 and conditions of the 2005 Agreement and Amendment No.3. The minutes of the Secretary of the
13 Commission for the September 17, 2007, joint public hearing of the Commission and the Council
14 shall include a record of all communication and testimony submitted to the Commission and the
15 Council at the joint public hearing by interested persons relating to the Summary Report, the sale of
16 the Additional Agency Lot and the approval of Amendment No.3.
This Resolution is adopted in order to satisfy the provisions of Health and
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Section 3.
18 Safety Code Section 33433, as those provisions relate to the disposition of the Additional Agency
19 Lot to the Developer on the terms and conditions set forth in the 2005 Agreement and Amendment
20 No.3. The Commission hereby finds and determines as follows:
21 1. The Summary Report contains the information described in Health and Safety Code Section
22 33433(a)(2)(B);
23 11. The disposition and development of the Additional Agency Lot by the Developer in
24 accordance with the 2005 Agreement and Amendment No. 3 is consistent with the
25 affordable single-family housing supply preservation and expansion programs of the
26 Agency Housing Plan;
27 111. The terms and conditions of the 2005 Agreement and Amendment No.3 contain assurances
28 that the Developer will develop the Additional Agency Lot as a "New Home", as this term
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1 is defined in the 2005 Agreement; and
2 IV. The disposition of the Additional Agency Lot to the Developer on the terms set forth in the
3 2005 Agreement and Amendment No.3 shall assist in the elimination of the conditions of
4 blight in the area adjacent to the Agency Lots as defined in the 2005 Agreement.
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Section 4.
The Commission hereby finds and determines that the environmental review
6 of the approved 2005 Agreement and the Amendment No. 3 as herein approved and the
7 development activities contemplated thereunder are "categorically exempt" and no potentially
8 adverse environmental effects are anticipated to be associated with the development of the
9 Additional Agency Lot, and a Notice of Exemption under the California Environmental Quality Act
10 ("CEQA") relating to the development as defined therein shall be filed with the County Clerk.
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Section 5.
The Commission hereby receives and approves the Summary Report and
12 Amendment No.3 in the form as submitted at this joint public hearing.
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Section 6.
The Commission hereby further finds and determines, pursuant to the
14 requirements of Health and Safety Code Section 33334.3(j) and based upon evidence as presented to
15 the Commission at the joint public hearing referred to herein above in this Resolution in the form of
16 the Agency Staff Report and/or all oral presentations as made by Agency Staff, that as a result of the
17 increases in the housing prices due to the escalating costs of labor and materials within the City of
18 San Bernardino ("City") since the date of the 2005 Agreement, the Agency has incurred and paid
19 expenditures from the Low and Moderate-Income Housing Fund of the Agency that exceed fifty
20 percent (50%) of the cost of producing the affordable new homes to be constructed by the Developer
21 upon the one (1) Additional Agency Lot, and that the Developer, as the owner of the new homes,
22 prior to the sale thereof to qualified homebuyers, subject to the 45 year Regulatory Agreement being
23 included as a condition of each such sale, has made a good faith attempt, but has not been able to,
24 obtain commercial or private means of financing for the one (I) new home upon the Additional
25 Agency Lot at the housing affordability levels as required by the Agency in accordance with the
26 terms and provisions of the 2005 Agreement and Amendment No.3.
The Commission hereby approves the disposition of the Additional Agency
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Section 7.
28 Lot to the Developer on the terms set forth in the 2005 Agreement and Amendment No.3 and
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1 hereby authorizes the Executive Director of the Agency to execute Amendment No.3 on behalf of
2 the Agency, and the Executive Director of the Agency is hereby authorized to make minor
3 corrections, additions, clarifications and interpretations to the Amendment No.3, provided,
4 however, that said changes are not substantive in nature, do not increase the monetary impact to the
5 Agency and are consented to by Agency Counsel.
6 Section 8.
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This Resolution shall take effect upon its adoption and execution.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF THE
CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE AMENDMENT
NO.3 TO THE 2005 MEADOWBROOK SINGLE FAMILY RESIDENTIAL
DEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY AND
MEADOWBROOK PARK HOMES, INC., AND MAKING CERTAIN
FINDINGS AND DETERMINATIONS RELATED TO SAID AMENDMENT
NO.3 (IVDA REDEVELOPMENT PROJECT AREA)
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
Development Commission of the City of San Bernardino at a i oint regular
meeting
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thereof, held on the 17th day of
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Commission Members:
11
ESTRADA
12 BAXTER
13 BRINKER
14 DERRY
15 KELLEY
16 JOHNSON
17 MC CAMMACK
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September
, 2007, by the following vote to wit:
Abstain
Absent
Navs
Aves
-lL
-X-
X
X
--'L
-lL
X
) /;lf~(
Secretary
-
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The foregoing resolution is hereby approved thisc,qy-;V day of
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SeDtember
,2007.
22
~erson
Community Development Commission
of the City of San Bernardino
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25 Approved as to Form:
~: By: \ /;b<.' ~11 J_
- Agen~nn;t;;;:l
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CDC/2007-27
AMENDMENT NO.3
TO THE
2005 MEADOWBROOK SINGLE FAMILY
RESIDENTIAL DEVELOPMENT AGREEMENT
(Meadowbrook Neighborhood Restoration Area)
THIS AMENDMENT NO.3 TO THE 2005 MEADOWBROOK SINGLE FAMILY
RESIDENTIAL DEVELOPMENT AGREEMENT (this "Amendment No.3") is dated as of
September 17, 2007, by and between Meadowbrook Park Homes, Inc., a California corporation
(the "Developer"), and the Redevelopment Agency of the City of San Bernardino (the
"Agency"), a public body, corporate and politic, and is entered into in light of the facts set forth
in the following Recital paragraphs:
-- RECITALS--
A. The Developer and the Agency have previously entered into an agreement entitled
"2005 Meadowbrook Single Family Residential Development Agreement", dated as of January
10, 2005 (the "Agreement"), and as amended by Amendment No.1 dated February 6, 2006 and
Amendment No.2 dated January 22,2007, collectively referred to as the "2005 Agreement".
B. As of the date that this Amendment No.3 becomes effective, the Developer has
acquired fourteen (14) of the "Agency Lots", as this term is defined in Section 1.01(b) of the
2005 Agreement.
C. The Developer and the Agency believe it is appropriate to consider and approve
this Amendment No.3 in order that: (i) the Agency transfer one (I) Agency Lot located at 167
East 2nd Street, San Bernardino, California (APN: 0135-291-12) to the Developer for the
construction of one (I) New Home and (ii) extend certain dates for the time of performance as
provided in Exhibit "G", Schedule of Performance, from December 31,2007, to December 31,
2008, to allow the Developer additional time to build and sell the new single-family home.
D. Pursuant to Health and Safety Code Section 33334.3(]) and in order to comply
with the requirements thereof, the governing body of tlle Agency has made certain findings and
determinations based upon substantial evidence as presented to said governing body as
referenced in the approving Resolution for this Amendment No.3 stating to the effect that as the
result of the increases in the housing prices due to the escalating costs of labor and materials
within the City of San Bernardino ("City") since the date of the Agreement, the Agency has
incurred and paid expenditures from the Low and Moderate-Income Housing Fund of the
Agency that exceed fifty percent (50%) of the cost of producing the New Homes to be
constructed by the Developer upon the additional Type A Agency Lot, and that the Developer, as
the owner of the New Home prior to the sale thereof to Qualified Homebuyer, subject to the
Regulatory Agreement being included as a condition of such sale, has made a good faith attempt
but has not been able to obtain commercial or private means of financing for the New Home to
be built upon the Type A Agency Lot at the same level of affordability and quantity as required
by the Agency in accordance with the terms and provisions of the 2005 Agreement.
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CDC/2007-27
NOW, THEREFORE, THE DEVELOPER AND THE AGENCY DO HEREBY AGREE
AS FOLLOWS:
Section 1. (a) Unless the context of the usage of a term or phrase in this Amendment
No.3 may otherwise require, the meaning of words and phrases in this Amendment No.3, which
are indicated by an initially capitalized letter, shall be the same as set forth in the 2005
Agreement.
(b) The Recitals of this Amendment No.3 are true and correct.
Section 2. This Amendment No. 3 sets forth the terms and conditions of an
amendment to the text of the 2005 Agreement. This Amendment No. 3 integrates all of the
terms and conditions mentioned herein and supercedes all negotiations, discussions and
understandings between the parties with respect to the Project and the 2005 Agreement as hereby
modified by this Amendment No.3, including, but not limited to, all items of financial
assistance, which the Agency shall provide to the Developer under the 2005 Agreement as
modified by this Amendment No.3.
Section 3. The Effective Date of the 2005 Agreement occurred on January 10, 2005,
Amendment No. I became effective on February 6, 2006 and Amendment No. 2 became
effective on January 22, 2007. The parties recognize that the public hearing required pursuant to
Section 1.05(c) of the 2005 Agreement has been duly conducted by the Agency and such
provisions of said Section shall no longer be a condition precedent to the transfer of any of the
Agency Lots to the Developer except with respect to the public hearing conducted by the Agency
for the Additional Agency Lot as added to the 2005 Agreement pursuant to this Amendment No.
3.
Section 4. As of the date that this Amendment No. 3 to the Agreement becomes
effective, the first paragraph ofthe Recitals of the 2005 Agreement is hereby amended to add the
following property which shall be deemed to be an "Additional Agency Lot" within the meaning
as set forth in the 2005 Agreement:
Additional Agency Lot Address
APN
167 East 2nd Street
0135-291-12
SectIon 5. As of the date that this Amendment No.3 to the 2005 Agreement becomes
effective, Sections 2.01(b) of the 2005 Agreement is hereby amended to extend and replace the
date of "December 31,2007," to thus read "December 31, 2008."
Section 6. As of the date that this Amendment No.3 to the 2005 Agreement becomes
effective, Section 2.02(i) of the 2005 Agreement is hereby amended to read as follows:
No Notice of Availability for Transfer of the Agency Lots shall be issued by the Agency
to the Developer after December 31,2008.
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CDC/2007-27
Section 7. As of the date that this Amendment No.3 to the 2005 Agreement becomes
effective, Section 4.08(e) of the 2005 Agreement is hereby amended to read as follows:
Notwithstanding any other provision of this Section 4.08, the Agency shall have no
obligation to fund any Agency Downpayment Assistance loan for a Qualified Homebuyer of a
Completed New Home on any Agency Lot after March 31, 2009.
Section 8. Exhibit "G" as originally attached to the 2005 Agreement is amended as
illustrated in the excerpts therefrom which contain language modified by this Amendment No.3
as set forth in the attachment hereto designated as Exhibit "G" to the 2005 Agreement to be
consistent with the modifications of the dates of performance as amended by this Amendment
No.3 and as set forth herein. A composite Exhibit "G" shall hereafter be prepared illustrating
the changes thereto as approved by this Amendment No.3.
Section 9. Except as modified or amended by this Amendment No.3, all of the
provisions of the 2005 Agreement and Amendment Nos. I and 2 shall remain in full force and
effect following the date that this Amendment No.3 becomes effective.
IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment No.3
to the Agreement as of the date set forth in the introductory paragraph hereof.
AGENCY
1/;'/10'1
!
Redevelopment Agency of the City of San
Bernardino, a public body, corporate and politic
By: " ) 1;? uJe-~
Maggie Pacheco, Executive Director
Date:
Approved as to Form and Legal Content:
By: \ ~L
Agency 0 sel
DEVELOPER
Date: September 26, 2007
Meadowbroo ark Homes, Inc.,
aCalifornia~ 71~T. ~
By: JI Yl
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