The URL can be used to link to this page

Home My WebLink About12- Economic Development Agency DEVELOPMENT DEPARTMENT OF THE CITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY REQUEST FOR COMMISSION/COUNCIL ACTION FROM: KENNETH J.HENDERSON SUBJECT: ARROW VISTA HOUSING Executive Director DEVELOPMENT PROJECT DATE: May 11,1994 Synopsis of Previous Commission/Council/Committee Action(s): During the months of September and October 1993,the Community Development Commission and Redevelopment Committee considered various delinquent Agency notes with Dukes-Dukes and Associates. On October 7,1993,the Committee submitted two(2)recommendations to the Community Development Commission regarding this project. On November 1, 1993,the Community Development Commission agreed to continued consideration of this development project for sixty(60)days. Synopsis Continued to Next Page- ---------------------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION A: That the Community Development Commission approve the utilization of Pridemark Homes to provide various contractor services in conjunction with the Arrow Vista Housing Development Project,allocate the utilization of$300,000 in low to moderate income housing funds and authorize the Chairman and Executive Director to execute any documents necessary to effectuate implementation of said contractor services. 1-61) Administrator KENNETH J.HENDERSON Executive Dir*dor Contact Person(s): K erh T I-Imderson/David Edear Phone: 5081 Project Area(s): Northwest(NW) Ward(s): Six(6) Supporting Data Attached: Staff Report, FUNDING REQUIItEMENTS: Amount: $375.000 Source: 20%Set-Aside Budget Authority: Requested ---------------------—----—---------------------------------------------- Commission/Cound Notes: - -- ------ -- ------------------------------------------------------------------------------- KJH:DRE:lag:05-02-03.cdc COMMISSION MEETING AGENDA MEETING DATE: 05/16/1994 Agenda Item Number: /-1 Request for Commission/Co�rrcil Action Arrow Vista Housing Development Project May 11, 1994 Page Number-2- ------------------------------------------------------------------------------------------------------------------ Synopsis of Previous Commission/Council/Committee Action(s) Continued: On January 10, 1994, the Community Development Commission discussed the current status of the marketing and sales activity regarding Arrow Vista Phase I and Phase IIA standing inventory. On January 24, 1994, the Community Development Commission authorized staff to develop a formal agreement based on the previously executed "Agreement in Principle" regarding disposition of the Arrow Vista housing development standing inventory. On February 16, 1994, the Community Development Commission considered disposition of the Arrow Vista Housing Development Project. During these discussions a motion to terminate the Joint Development Agreement and to take all necessary legal actions to obtain clear title to the Arrow Vista Standing Inventory and three(3)models was denied. On April 4, 1994, the Community Development Commission approved implementation of the agreement for termination of obligations pertaining to the Arrow Vista Housing Development, authorized the utilization of$120,000 in available low income housing monies and authorized the Chairman and Executive Director to execute any documents necessary to effectuate said implementation. Recommended Motion(s) Continued: (Community Development Commission) MOTION B: That the Community Development Commission approve the utilization of Inland Cities to provide marketing services in conjunction with the Arrow Vista Housing Development Project, allocate the utilization of$75,000 in low to moderate income housing funds and authorize the Chairman and Executive Director to execute any documents necessary to effectuate implementation of said marketing services. ------------------------------------------------------------------------------------------------------------------ KJH:DRE:lag:05-02-03.cdc COMMISSION MEETING AGENDA MEETING DATE: 05/16/1994 Agenda Item Number: DEvELOPMENT DEPARTMENT STAFF REPORT ---------------------------------------------------------------------------------------------------------------- Arrow Vista Housing Development Project On April 4, 1994, the Community Development Commission approved implementation of an agreement for termination of obligations pertaining to the Arrow Vista Housing Development Project. As previously documented, the existing project standing inventory consisting of thirty (30)homes and three (3)models represents a significant expenditure of Agency resources (approximately $4,000,000)which when sold could be utilized towards other worthwhile housing projects. In an effort to expeditiously facilitate final disposition of the Arrow Vista Project standing inventory, staff is requesting Commission designation and implementation of specific builder(contractor) and marketing consultant services. As indicated within the April 4, 1994, Arrow Vista Project staff report, staff is proposing that Pridemark Homes be retained to provide specific contractor services. Builder related services to be provided by Pridemark Homes in conjunction with the existing Arrow Vista Standing inventory include the following four(4)major components: Phase I Phase I consists of a comprehensive inspection (interior and exterior)of each home and property. A copy of this inspection report will be provided to Agency staff as a permanent record regarding the existing condition of the thirty(30) standing inventory homes. Phase II This Phase addresses all repairs/improvements necessary to restore each home to a "marketable" condition for potential home buyers. Phase III This phase provides restoration of each home to a "move-in" condition and includes a through "walk-thru" of each property with the homeowner prior to occupation. Phase IV Phase IV consists of a twelve(12)month warranty program, which begins upon date of occupation. During this warranty period, Pridemark homes will provide all customer service necessary to address specific problems which may arise. ------------------------------------------------------------------------------------------------------------------ KJH:DRE:Iag:05-02-03.cdc COMMISSION MEETING AGENDA MEETING DATE: 05/1611994 Agenda Item Number: DEVELOPMENT DEPARTMENT STAFF REPORT Arrow Vista Housing Development Project May 11, 1994 Page Number-2- In conjunction with this four(4)phase program, Pridemark Homes will also be responsible for coordinating monthly security activities and for landscape maintenance on all standing inventory homes. Pridemark Homes was selected over another interested builder(Trade Temps, Inc.)based upon its substantial prior experience with regard to the existing standing inventory. In addition, Pridemark Homes was the only builder to submit both a written("formal") and "fixed price" (vs "range")bid proposal on the required contractor services. The total cost associated with required contractor services(including the twelve month warranty period)will not exceed $10,000/home or $300,000. Having only two interested builders is not entirely suprising given the building community is general unwillingness to take-over "another" builder's project and to accept liability/customer service responsibility for "another" builder's workmanship. In addition to the requirement for specific builder/contractor services, the April 4, 1994 Arrow Vista staff report also addressed the need to expeditiously retain a marketing firm to formally market and sell the existing standing inventory and three(3) models. Subsequent to the Commission meeting, Agency staff has interviewed and requested proposals from several prominent marketing firms. After thoroughly reviewing the formal proposals submitted by Inland Cities, R.H. Hooker Company and the Mitchell Company, staff recommends utilization of Inland Cities to provide specific marketing and sales services in conjunction with the Arrow Vista Standing Inventory. This selection is based upon the following factors: (1) PRIOR EXPERIENCE Inland Cities has substantial marketing and sales experience in conjunction with residential tract development throughout the Inland Empire. (2) MARKETING APPROACH Inland Cities is proposing a comprehensive approach to aggressively advertise and market the Arrow Vista Development. This approach includes print media, radio advertising, conducting a grand re-opening and utilization of the multiple listing services (MIS). ------------------------------------------------------------------------------------------------------------------ KJH:DRE:lag:05-02-03.cdc COMMISSION MEETING AGENDA MEETING DATE: 05/16/1994 Agenda Item Number: " o DEVELOPMENT DEPARYMENT STAFF REPORT Arrow Vista Housing Development Project May 11, 1994 Page Number-3- (3) COST The cost associated with the Inland Cities marketing proposal shall not exceed $75,000 (plus 21/6 per home sales commission fee-paid at close of escrow). (4) SCHEDULE OF PERFORMANCE Inland Cities has provided a schedule of performance which provides for "sale" of the existing standing inventory within a ten (10) month timeframe. (5) RELATIONSHIP WITH LENDER Inland Cities has an extremely cooperative working relationship with California Financial Funding. The partnership will be working jointly to provide financing for prospective home purchases from the existing model facilities. Implementation of both the Pridemark Homes contractor services proposal and the Inland Cities marketing services proposal beginning June 1, 1994, will ensure expeditious sale of the standing inventory and the repayment of substantial Agency monies. It is important to note, that recapture of Agency resources will represent a significant component of the proposed FY94/95 Housing Division Budget. Based upon the heretofore mentioned reasons, staff recommends adoption of the form motions. Aoftfe I KENNIETH J. IfIENDERSON,Executive Director Development Department ---------------------------------------------------------------------------------------------------------------- KJH:DRE:lag:05-02-03.cdc COMMISSION MEETING AGENDA MEETING DATE: 05116/1994 Agenda Item Number: