HomeMy WebLinkAboutR29- Economic Development Agency 'CDC/99-7
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Ronald E.Winkler,Director SUBJECT: ARROW VISTA PROPOSAL
Development Department
DATE: February 5, 1999
Synopsis of Previous Commission/CounciVCommittee Action(s):
On August 3, 1998,the Community Development Commission asked staff to develop and circulate a Request for
Proposals for the Arrow Vista property and to obtain input from the Northwest Project Area Committee.
On January 28, 1999,the Redevelopment Committee recommended approval of the Exclusive Right to Negotiate
agreement with Century Crowell Communities by the Community Development Commission.
Recommended Motion(s):
(Community Development Commission)
MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN
BERNARDINO APPROVING A CERTAIN AGREEMENT FOR THE EXCLUSIVE RIGHT TO
NEGOTIATE FOR PROPERTY ACQUISITION AND DEVELOPMENT ASSISTANCE BY AND
BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND
CENTURY CROWELL COMMUNITIES,LP
Contact Person(s): Gary Van OsdeVR Winkler/J.Hoeger Phone: 5081
Project Area(s) Northwest(NW) Ward(s): Six(6)
Supporting Data Attached: ❑O Staff Report®Resolution(s)®Agreement(s)/Contract(s)❑Map(s)❑Letter/Memo
FUNDING REQUIREMENTS Amount: $ N/A Source: N/A
Budget Authority: N/A
SIGNATURE:
Gary s e,Executiv vector onald E.\ inkler,Director
Eco mic Development gency Development Department
Commission/Council Notes: ---
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. JBH:lag:99-02-15 Arrow Vista Proposal COMMISSION MEETING AGENDA
Meeting Date: 02/15/1999
Agenda Item Number: ow
CDC/99-7
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
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Arrow Vista Proposal
The Agency owns 14.68 acres of residential land remaining from the Arrow Vista development
of Dukes and Dukes. Improvements in the local economy and lowering interest rates have
created the opportunity to develop this property.
As directed by the Community Development Commission, staff circulated requests for proposals
for the purchase and development of the land. Three responses were obtained. In alphabetical
order they were from:
A. Century Crowell Communities, LP (Century)
B. Garfield Financial Corporation(Garfield)
C. So. Calif. Housing Development Corp. (California)
All three are experienced developers in this area and all indicate they have the ability to bring
private financing to the project.
Century is a merger of Century Vintage Homes (John Pavelak) and Crowell/Leventhall Builders
(Harry Crowell). Both have been active in the area for more than 20 years. Collectively the
principals have built 11,000 housing units and 1,000,000 square feet of commercial and
industrial space. Local developments include Whispering Glen and Cimmaron Ranch in San
Bernardino and Del Rey at Los Colinas in Rialto. Century is based in the City of San
Bernardino.
Garfield is a family owned corporation with offices in Montebello. Recent experience includes 9
single-family units in Fontana and a 25-unit project in El Monte. Garfield owns 34 units adjacent
to the Arrow Vista property and proposes to include their development in the project. Michael
Minasian, President of Garfield, has built 171 housing units and has 8 currently under
construction. His development team includes an experienced builder, Wayne Simonian who has
been active in Southern California for 30 years (total units were not completely identified but
include numerous single-family housing projects in the 1980s and 1990's).
California is a 501(c)3 non-profit founded in 1992. It has rehabilitated and manages 2,500 multi-
family units. It proposes to contract with INCO Homes for this single-family project. INCO is a
well-established builder of affordable single-family houses in the Inland Empire. Ira Norris, who
had been a corporate vice president with Kaufinan and Broad for 8 % years and was an
independent builder before that, formed INCO in 1976. He and INCO have received numerous
awards from the industry.
JBH:lag:99-02-15 Arrow Vista Proposal COMMISSION MEETING AGENDA
Meeting Date: 02/15/19999
Agenda Item Number: �/
CDC/99-7
Economic Development Agency Staff Report
Arrow Vista Proposal
February 4, 1999
Page Number-2-
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RETAIL PRICING
A significant difference in pricing is illustrated by the following chart. At any given price level,
the Century and Garfield homes are smaller than those of California (SCHCD). The $101,999
California home is 368 square feet
PRICE VS. SIZE larger than the $106,990 Century
home which is equivalent to adding
$140,000 a 15 X 25 room to the house.
There are, however, some
$130,000 differences in features as discussed
�t....t ,t„•t1r.
$120,000 in the next section.
CENTURY GAREIEID....;:
$110,000 This pricing is due partly to
$100,000 - -- differences in Agency assistance.
California is asking for more
$90,000 Agency assistance than Century
1000 1500 P000 and apparently is applying it to
reduce the price of the homes.
Garfield, however, is asking for even more assistance than California but it does not translate
into a lower price.
Another way of measuring this same effect is to examine the price per square foot of each
builder. Each of the three builders has a model close to 1500 square feet. Based upon those
models (and again with some differences in features) the price per square foot for California is
$65 per square foot as compared to $78 for Century and Garfield.
Producing a cheaper house has the advantage of increasing the pool of potential buyers and
reducing the need for mortgage assistance. It may have the disadvantage of lowering the value
of neighboring houses.
STANDARD AND OPTIONAL FEATURES
All three builders are building the same basic single family house. These are detached, single
story, slab on grade houses with stucco exteriors and concrete tile roofs on existing 7200 square
foot lots. They all contain code-required features such as two car garages, smoke alarms,
landscaped front yards, and a variety of street front treatments. Century and Garfield propose 9
different street elevations. California proposes 4 different elevations with two color variations.
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JBH:lag:99-02-15 Arrow Vista Proposal COMMISSION MEETING AGENDA
Meeting Date: 02/15/19999
Agenda Item Number: Z 7
CDC/99-7
Economic Development Agency Staff Report
Arrow Vista Proposal
February 4, 1999
Page Number-3-
Despite the same basic product
there are differences in STANDARD FEATURES
standard features. The „
x m9 �
following chart summarizes g E a E m s
most of these. A "Y" $ N w a U 2 B a
indicates that the feature is Prica $ize E @ _ $
standard. A dash indicates Floor Plan (e a O's) (SF) I _ E
CENTURY -1 $107 1200 200 3 2 Y LL Y - Y - Y Y Y
that the feature is either CENTURY -2 $117 1500 200 3 2 Y Y Y Y Y - - Y Y
optional or not offered. One CENTURY -3 $124 1700 200 3 2 Y Y Y Y Y Y Y Y Y
distinction is that the Century CENTURY -4 $131 2010 300 4 3 Y Y Y Y Y Y Y Y Y
GARFIELD -1 $115 1505 200 4 2 Y Y Y - - Y Y Y -
and Garfield homes both have GARFIELD -2 $122 1599 200 4 2 Y Y Y - - Y Y Y -
3-car garages compared 10 2- GARFIELD -3 $128 1909 200 5 2 Y Y Y - - Y Y Y -
CALIF -1 $92 1298 - 4 2 1 - I - I - - Y -
car garages for California. CALIF-2 $102 1568 - 4 2 - Y Y - - Y - Y -
However, the bedroom counts
and liven s claimed for NOTE: The total bedroom counts include the "bonus" room for Century a
g space Garfield and the "play" room for SCHDC.
these houses requires counting
the third garage space as a bedroom, thus the "standard" is 2-car garages for all homes. It
appears that this "bonus" space is not fully finished in the standard package and that the extra
bedroom will require paint, flooring and ceiling finishes to be fully complete. On the other hand,
there is some money in the pro formas to provide accommodations to buyers and it is likely that
these finishes can be negotiated on an individual basis.
A number of options are noted in the development proposals. Fireplaces can be added where
they are not standard. Finishes and appliances can be upgraded. Decorator items (mirrored
closet doors, etc) can be obtained. In general, Century comes with the most upgrades already
included in the standard price(hand finished cabinets, upgraded lighting fixtures,plant shelves,
masonry fencing, etc). These details,however, can probably be changed as part of the
negotiations of a development agreement. Larger upgrades, such as swimming pools,would
remain as optional extras.
AGENCY ASSISTANCE
Century is asking for the least Agency assistance. Century proposes to pay the Agency$7,000
per lot which totals $434,000 for the 62 lots. The "assistance"takes the form of deferring these
payments to the close of the retail escrows. No mention is made of mortgage assistance program
payments.
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SBH:lag:99-02-15 Arrow Vista Proposal COMMISSION MEETING AGENDA
Meeting Date: 02/15/19999
Agenda Item Number: '22Y
CDC/99-7
Economic Development Agency Staff Report
Arrow Vista Proposal
February 4, 1999
Page Number-4-
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FISCAL IMPACT
The fiscal impact of executing the Exclusive Right to Negotiate agreement would be in
committing staff time and legal fees towards negotiations of an Disposition and Development
Agreement.
California is asking for both land and cash contributions. They propose that the Agency convey
the land at no cost to the developer. In addition they ask that the City "write down" its fees by
$314,000. Assuming the Agency paid the City for this waiver, it would mean a cash cost to the
Agency of$314,000 in addition to donating the land. It is phased so that the Agency only
donates the existing improved lots for the first 24 units and then pays for the fees along with
donating the land for the second 38 units. No direct mention is made of mortgage assistance
program payments.
Garfield appears to be asking for the greatest level of assistance by asking for$37,500 per unit
for the 62 Agency lots plus an additional $37,500 per unit for 34 lots already owned by Garfield
(this totals$3,600,000 of assistance). This assistance, however, includes mortgage assistance
program payments so that not all of the assistance is directly to the developer. In addition,it
imputes value to the Agency owned property so that contributing the land would reduce the cash
assistance required. Staff calculates that proposal values the Agency's property at$1,660,000 so
that the remaining cash cost of the assistance is $1,930,000. As mentioned this includes some
level of mortgage assistance that goes to buyers in the form of soft seconds. In an earlier letter
the developer suggested he would need $750,000 in direct assistance for his 34 lots, which is
$22,000 per lot. At that rate a$458,000 cash contribution would be needed in addition to the
land contribution for the development. In addition,there would be $1,482,000 current cash cost
for mortgage assistance which might eventually by recovered through"soft seconds".
All of the above are subject to negotiation of a development agreement and mortgage assistance
is likely to become a part of any of the above proposals.
CURRENT ISSUE
The attached 180-day Exclusive right to Negotiate agreement will allow for a period of mutual
planning and negotiation of a Disposition and Development Agreement to be brought back to the
Council and Commission at an advertised joint public hearing.
IBH:lag:99-02-15 Arrow Vista Proposal COMMISSION MEETING AGENDA
Meeting Date: 02/15/1999
Agenda Item Number: R2 9
CDC/99-7
Economic Development Agency Staff Report
Arrow Vista Proposal
February 4, 1999
Page Number-5-
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NORTHWEST PAC RECOMMENDATION
Staff met with the new Northwest PAC officers on Saturday,January 23, 1999. These officers
were elected at the preceding PAC meeting and met for the first time on Saturday to review this
project. Based upon this review they plan to suggest that the PAC adopt a recommendation
during its next meeting (February 8 ) in favor of Century Homes. Staff will have a verbal report
on the action taken by the PAC.
While discussing the project,the PAC officers pointed out several concerns. First they pointed
out, and staff agrees,that it is very important for the surrounding neighborhood to present well to
prospective buyers. It will be difficult to attract new residents if the neighborhood looks run
down. Also,there are some items in the general area, such as the fence on the west side of
California Avenue,that need repair and restoration.
Secondly,there were concerns over the risk of creating more vacant housing if 62 houses were
built and did not sell. The staff reviewed the probable phasing of construction(starting with no
more than 6 to 12 units initially) and some of the expected provisions of the development
agreement regarding the time of transfer of the property (simultaneous with building permits for
individual phases).
STAFF RECOMMENDATION
Based upon the above, staff recommends that the Community Development Commission adopt
the attached Resolution to authorize the execution of an Exclusive Right to Negotiate Agreement
with Century Crowell Communities.
onald EAVinkler, Director
Development Department
------ ----------------------------------------------------------------------------------------------------------- ---------------------
JBH:lag:99-02-15 Arrow Vista Proposal COMMISSION MEETING AGENDA
Meeting Date: 02/15/1999
Agenda Item Number: —9,2L
RESOLUTION NO.
2
3 RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO
4 APPROVING A CERTAIN AGREEMENT FOR THE
EXCLUSIVE RIGHT TO NEGOTIATE FOR PROPERTY
5 ACQUISITION AND DEVELOPMENT ASSISTANCE BY AND
BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY
6 OF SAN BERNARDINO AND CENTURY CROWELL
COMMUNITIES, LP
7
8 WHEREAS, the Community Development Commission of the City
9 of San Bernardino (the "Commission") is the governing body of the
10 Redevelopment Agency of the City of San Bernardino (the "Agency") ,
11 a public body of the State of California, organized and existing
12 pursuant to the Community Redevelopment Law (Health and Safety Code
13 Section 33000, gL1 aeq• ) ; and
4
15 WHEREAS, the Agency desires to enter into that certain
16 Exclusive Right to Negotiate for Property Acquisition and
17 Redevelopment Assistance (the "Agreement") with Century Crowell
18 Communities, LP, a California limited partnership (the "Developer")
19 for the coordination of mutual planning and consideration of the
20 acquisition, reuse and redevelopment of certain real property
21 presently under the control of the Agency, as more fully described
22 therein (the "Site") ; and
23
24 WHEREAS, the Site is situated in the redevelopment
25 project area of the Northwest Redevelopment Project Area and
26 consists of an assembly of lands including approximately fourteen
27 and sixty eight hundredths (14 . 68) acres; and
28 - 1 -
I WHEREAS, the Developer and the Agency believe that
2 consideration of the final logistical details of the disposition of
3 the Site by the Agency to the Developer is necessary and
4 appropriate at this time.
5
6 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION
7 ACTING ON BEHALF OF THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
8 BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS :
9
10 section 1 . The Agreement with the Developer in the form
11 attached hereto as Exhibit "A" and incorporated herein by this
12 reference is hereby approved.
13
'4 Section 2 . The Executive Director of the Agency is
15 hereby authorized to execute the Agreement on behalf of the Agency
16 in substantially the form attached hereto, together with such
17 changes therein as may be approved by Agency Special Counsel . The
18 Executive Director or such other designated representative of the
19 Agency is further authorized to do any and all things and take any
20 and all actions as may be deemed necessary or advisable to
21 effectuate the purposes of the Agreement.
22
23
24
25
26
?7
28 - 2 -
I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO APPROVING A CERTAIN AGREEMENT FOR THE EXCLUSIVE
2 RIGHT TO NEGOTIATE FOR PROPERTY ACQUISITION AND DEVELOPMENT
ASSISTANCE BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
3 SAN BERNARDINO AND CENTURY CROWELL COMMUNITIES, LP
4
5 Section 3 . This Resolution shall take effect upon the
6 date of its adoption.
7
8 I HEREBY CERTIFY that the foregoing Resolution was duly
9 adopted by the Community Development Commission of the City of
10 San Bernardino at a meeting thereof, held on
11 the day of February, 1999, by the following vote, to wit :
12 Commission Members : BYES NAYS ABSTAIN ABSENT
13 ESTRADA
LIEN
'4 McGINNIS
SCHNETZ
15 DEVLIN
ANDERSON
16 MILLER
17
18 Secretary
19 The foregoing Resolution is hereby approved this
day of 1999 •
20
21 Judith Valles, Chairperson
Community Development Commission
22 of the City of San Bernardino
23 Approved �fo form apd e a content:
24 By:
Agency Counsel
25
SBEO/0001/DOC/3999
26 2/5/99 1000 Ct
�7
28 - 3 -
CDC/99-7
EXCLUSIVE RIGHT TO NEGOTIATE
FOR PROPERTY ACQUISITION AND REDEVELOPMENT ASSISTANCE
BETWEEN CENTURY CROWELL COMMUNITIES, LP AND
THE REDEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO
THIS EXCLUSIVE RIGHT TO NEGOTIATE FOR PROPERTY
ACQUISITION AND REDEVELOPMENT ASSISTANCE, is dated as of February
1999 (the "Agreement") and entered into by and between Century
Crowell Communities, LP, a California limited partnership (the
"Developer") and the Redevelopment Agency of the City of San
Bernardino (the "Agency") with respect to the coordination of
mutual planning and consideration of the acquisition, reuse and
redevelopment of certain real property presently under the control
of the Agency (the "Site") , as more fully described below, upon the
following terms and conditions :
-- RECITALS --
The Site is situated in the redevelopment project area of
the Northwest Redevelopment Project Area and consists of an
assembly of lands including approximately fourteen and sixty eight
hundredths (14 . 68) acres, more or less .
The Developer and the Agency believe that consideration
of the final logistical details of the disposition of the Site by
the Agency to the Developer on the terms outlined in the Agency
Staff memorandum dated January 28 , 1999 (the "Agency Staff
Memorandum") is necessary and appropriate .
A plot plan showing the general location of the Site in
relation to surrounding lands, together with a legal description of
the Site is attached hereto as Exhibit "A."
THEREFORE, IN VIEW OF THE GOALS AND OBJECTIVES OF THE
AGENCY RELATING TO THE IMPLEMENTATION OF THE REDEVELOPMENT PLAN FOR
THE NORTHWEST REDEVELOPMENT PROJECT AND THE COVENANTS AND PROMISES
OF THE PARTIES RELATING TO THE SITE AS SET FORTH HEREIN THE
DEVELOPER AND THE AGENCY AGREE AS FOLLOWS :
1 . Developer Receipt of Agency Staff Memorandum. The
Developer hereby acknowledges its receipt from the Agency Executive
Director of the Agency Staff Memorandum, which relate to the
general economic terms on which the Developer may hereafter acquire
the Site from the Agency. The Developer further acknowledges and
agrees that no provision of the Agency Staff Memorandum shall be
SBEO/0001/DOC/3447
2/4/99 420 ct 1
Exhibit "A"
r /o. ..CDC/99-7
deemed to be an offer by the Agency to convey any interest in the
Site to the Developer. Each of the various studies relating to the
Site which may be undertaken by the Developer in its discretion
with respect to any matter relating to the Agency Staff Memorandum
shall be the sole responsibility of the Developer and no such study
shall be deemed to have been undertaken for the benefit of the
Agency.
2 . Term of Agreement . The rights and duties of the
parties established by this Agreement shall commence within seven
(7) calendar days . following the date of approval of the Agreement
by the Agency upon the acceptance of this Agreement by the
Developer as provided in Paragraph 22, and thereafter this
Agreement shall terminate and be of no further force or effect one
hundred and eighty (180) days after such date, unless prior to that
time:
(i) the parties execute a separate disposition and
development agreement (the "Site DDA") for a specific
program of disposition, reuse and redevelopment of the
Site to be undertaken by the Developer in accordance
with the terms of the Agency Staff Memorandum, the
other relevant affordable housing development community
redevelopment covenants acceptable to the Agency and
such other terms and conditions acceptable to the
parties; or
(ii) the parties each agree to further extend the term of
this Agreement to a specific date, subject to the
Agency first making a finding that satisfactory
progress is being made to complete the logistical
details of the acquisition of the Site on terms which
are acceptable to the Agency in its sole and absolute
discretion.
The initial term of this Agreement (and all extensions
of time approved by the Agency) is referred to in this Agreement as
the "Negotiation Period. "
3 . Exclusive Right to Negotiate Charge Payable by the
Developer to the Agency.
a. By a date no later than 4 : 30 p.m. on the seventh
(7th) calendar day following the date of approval of this
Agreement by the Agency, the Developer shall deliver to the Agency
the sum of Ten Thousand Dollars ($10, 000) (the "Exclusive Right to
Negotiate Charge") which sum shall upon receipt be the property of
SBEO/0001/DOC/3447
2/4/99 420 ct 2.
Exhibit "A"
CDC/99-7
the Agency. The Agency shall use and apply the Exclusive Right to
Negotiate Charge as provided under either Paragraph 3 (b) or
Paragraph 3 (c) , below.
b. Provided that the draft Site DDA which has been
executed by the Developer and submitted to the Agency Executive
Director prior to the expiration of the Negotiation Period, and
thereafter the Site DDA is accepted and approved by a resolution
duly adopted by the Agency, in its sole and absolute discretion,
the Exclusive Right to Negotiate Charge shall be applied as a
credit purchase price payable by the Developer to the Agency for
the acquisition of the Site.
c. Provided that the Developer has negotiated
diligently and in good faith to carry out its obligations
hereunder, and thereafter the Agency may fail to approve the final
form of the Site DDA before the end of the Negotiation Period, then
in such an event, the Exclusive Right to Negotiate Charge shall be
returned by the Agency to Developer promptly following written
request from the Developer.
d. THE PARTIES AGREE THAT IT WOULD BE IMPRACTICAL OR
EXTREMELY DIFFICULT TO DETERMINE PRIOR TO THE EXECUTION OF THIS
AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED BY THE AGENCY
IF THE DEVELOPER FAILS TO PERFORM ITS OBLIGATIONS UNDER THIS
AGREEMENT AFTER THE DATE OF ACCEPTANCE BY THE DEVELOPER.
THEREFORE, EXCEPT AS PROVIDED IN PARAGRAPH 3 (c) , UPON THE DATE OF
ACCEPTANCE OF THIS AGREEMENT BY THE DEVELOPER, THE AGENCY SHALL BE
ENTITLED TO THE REMEDY OF LIQUIDATED DAMAGES IN THE AMOUNT OF TEN
THOUSAND DOLLARS ($10, 000) AND UPON PAYMENT OF SUCH SUM TO THE
AGENCY, THE DEVELOPER SHALL BE RELEASED FROM ANY FURTHER LIABILITY
TO THE AGENCY EXCEPT AS TO THE INDEMNITY COVENANTS OF THE DEVELOPER
IN FAVOR OF THE AGENCY AS MAY ARISE UNDER PARAGRAPH 7 (b) OF THIS
AGREEMENT.
Initials of Developer Initials of Agency
4 . The Project. The Developer hereby agrees to take
all reasonable actions required or necessary for determining the
j feasibility of the reuse and redevelopment of the Site for the
development of affordable single family housing (the "Project") at
its sole cost and expense. A .conceptual description of the Project
is set forth in the Agency Staff Memorandum. It is the
responsibility of the Developer during the Negotiation Period to
present further refinement of this general description of the
SBEO/0001/DOC/3447
2/4/99 420 ct 3
Exhibit "A"
CDC/99-7
Project to the Agency for its review and consideration. In this
respect the parties each acknowledge that the task of further
refinement of the general description of the Project is in the
nature of an iterative process which involves a number of different
factors . The parties further acknowledge that the completion of
this iterative process as it relates to the Site and the Project
may require that the parties consider various alternate structures
for the payment of the purchase price to the Agency for the Site in
order to promote the affordable single family housing budget goals
for the Project on terms which are economically feasible and
mutually satisfactory to the parties .
5 . Obligations of the Developer. During the
Negotiation Period, the Developer shall proceed diligently and in
good faith to:
a. Review, comment on and submit to the Agency
Executive Director an executed copy of the draft Site DDA by a date
no later than one hundred eighty (180) days after the approval of
this Agreement by the Agency (or such later date which corresponds
with an authorized extension of the Negotiation Period under
Paragraph 2 (ii) ) , which incorporates the relevant provisions of the
Agency Staff Memorandum and such other terms and conditions
acceptable to the Developer and the Agency staff (in the sole and
absolute discretion of the parties, and which is subject to no
conditions or contingencies on the part of the Developer except
final approval by the governing board of the Agency and the
completion of the customary due diligence investigations and the
delivery of a policy of title insurance by the Agency in favor of
the Developer with respect to the Site;
b. Prepare and complete reuse and redevelopment
marketing. plans and feasibility studies as the Developer may, in
its discretion, believe are indicated;
c. Keep the Agency advised as to the progress of the
matters noted above on a regular basis .
6. Agency Not To Negotiate With Others . The Agency
acknowledges that it deems the disposition and reuse and
redevelopment of the Site to be necessary and that the Developer
appears to be well qualified to undertake the task of finalizing
the logistical details relating to the acquisition, reuse and
redevelopment of the Site in a manner which is compatible with the
redevelopment objectives of the Redevelopment Plan.
SBEO/0001/DOC/3447
2/4/99 420 ct 4
Exhibit "A"
CDC/99-7
During the Negotiation Period, the Agency shall not
negotiate with any other person or entity for the purpose of
considering either the disposition of the Site or considering the
reuse and redevelopment of the Project on the Site . The term
"negotiate" as used herein shall be deemed to preclude the Agency
from accepting any other proposal from third parties to either
acquire any interest in the Site (in whole or in part) or from
accepting any other development proposal affecting the Site from
persons or entities other than the Developer, and from discussing
other reuse and redevelopment plans for the Site with third persons
or entities; provided however, any person may submit and the Agency
may consider any proposal for the disposition and/or redevelopment
of any lands adjacent to the Site.
During the Negotiation Period, the Agency shall not be
precluded, however, from furnishing to other persons or entities
unrelated to the Developer information in the possession of the
Agency relating to the Redevelopment Plan for the Northwest
Redevelopment Project, and the implementation of the Redevelopment
Plan, shall remain within the sole and exclusive purview of the
Agency to administer. The Agency may also provide any other
information in its possession which would customarily be furnished
to persons requesting information from the Agency concerning its
activities, goals, and matters of a similar nature.
7 . Agency Cooperation. During the Negotiation Period
the Agency shall use its best efforts to:
a . Assemble at the request of the Developer written
materials and documents relating to the Site which are in the
possession or reasonably available to the Agency and provide
appropriate comment to the Developer with respect to one or more
conceptual development plans as may be proposed by the Developer
for the Project and the reuse and redevelopment of the Site,
including but not limited to conceptual plans or studies of
vacation, realignment or abandonment of public property and
facilities, the installation and improvement of public improvements
and the completion of all required environmental evaluation of the
Project .
b. Provide the Developer with limited access to the
Site during the Negotiation Period for the purpose of conducting
customary due diligence investigations thereon, including
environmental investigations of the subsurface or any structure
thereon, subject to the customary terms and conditions of an
environmental investigation and inspection license agreement which
SBEO/0001/DOC/3447
2/4/99 420 ct 5
Exhibit "A"
CDC/99-7
protect the interests of the Agency in a form approved by the
Executive Director.
8 . Neap is ; on of Site DDA. During the Negotiation
Period the Agency and Developer shall negotiate diligently and in
good faith to prepare and enter into the Site DDA and each of the
parties shall exert best efforts to complete discussions relating
to the final logistical terms and conditions of a draft Site DDA
and such other matters as may be mutually acceptable to the parties
for the reuse and redevelopment of the Site and the Project.
9 . Consideration for Agreement and Reservation of
Rights . In consideration for the Agency' s entering into this
Agreement, the Developer will, on a best efforts and good faith
basis, undertake its obligations pursuant to this Agreement. The
parties agree that in the event this Agreement may terminate or
that the Agency may fail to extend the Negotiation Period or in the
event that a Site DDA may not be finally approved by the Agency for
any reason, neither party shall be under any further obligation to
the other, except as may arise under Paragraph 7 (b) .
10 . Planninc and Design - Related Acknowledaments
of the Parties . Development standards and design controls for the
Project shall be established between the Developer and the Agency,
and it is understood that the Project and the reuse of the Site
shall conform Agency development and architectural standards and to
the objectives and controls established in the Redevelopment Plan.
Drawings, plans and specifications for the Project shall be subject
to the approval of the Agency, which approval shall not be
unreasonably withheld. The Agency shall fully cooperate with the
Developer' s professional associates in providing information and
assistance in connection with the Developer' s preparation of
drawings, plans and specifications .
11 . Developer Financial Disclosures . The Developer
acknowledges that it may be requested to make certain confidential
financial disclosures to the Agency, its staff or legal counsel as
part of the financial due diligence investigations of the Agency
relating to the acquisition of the Site on the terms designated by
the Developer. The parties recognize that such financial
disclosures may contain sensitive information relating to other
business transactions of the Developer and that the disclosure of
such information to third parties could impose commercially
unreasonable and/or anticompetitive burdens on the Developer, and
correspondingly diminish the value or fiscal benefit which may
accrue to the Agency upon the disposition of the Site.
Accordingly, the Agency agrees to maintain the confidentiality of
SBEO/0001/DOC/3447
2/4/99 420 ct p
Exhibit "A"
CDC/99-7
any business records described in Government Code Section 6254 . 15
as may be provided by the Developer to the Agency and its
consultants to the maximum extent permitted by law. The Agency
shall not provide a copy of any business record protected from
disclosure under Government Code Section 6254 . 15 to a third party
unless the Developer has first consented to such a disclosure in
writing or unless a court of competent jurisdiction has compelled
such a disclosure.
12 . Developer Aca ,ires No Tnt-ereat in property—
in the Site from the Agency. The Developer hereby acknowledges
that it has not acquired, pursuant to this Agreement, any legal or
equitable interest in real property or in the Site from the Agency.
13 . Nondiscrimination. The Developer shall not
discriminate against nor segregate any person, or group of persons
on account of race, color, creed, religion, sex, marital status,
handicap, national origin or ancestry in the sale, lease, sublease,
transfer, use, occupancy, tenure or enjoyment of the Site or the
Project nor shall the Developer establish or permit any such
practice of discrimination or segregation with selection, location,
number, use, or occupancy of tenants, lessees, subleases,
subtenants, or vendees of the land.
14 . Default .
a. Failure or delay by either party to perform any
material term or provision of this Agreement shall constitute a
default under this Agreement; provided however, that if the party
who is otherwise claimed to be in default by the other party
commences to cure, correct or remedy the alleged default within
fifteen (15) calendar days after receipt of written notice
specifying such default and shall diligently complete such cure,
correction or remedy, such party shall not be deemed to be in
default hereunder.
The party which may claim that a default has occurred
shall give written notice of default to the party in default,
specifying the alleged default. Delay in giving such notice shall
not constitute a waiver of any default nor shall it change the time
of default; provided, however, the injured party shall have no
right to exercise any remedy for a default hereunder without
delivering the written default notice as specified herein.
Any failure to delay by a party in asserting any of its
rights and remedies as to any default shall not operate as a waiver
of any default or of any rights or remedies associated with a
SBEO/0001/DOC/3447
2/4/99 420 ct 7
Exhibit "A"
CDC/99-7
default . Except with respect to rights and remedies expressly
declared to be exclusive in this Agreement, the rights and remedies
of the parties are cumulative and the exercise by either party of
one or more of such rights or remedies shall not preclude the
exercise by it, at the same or different times, of any other rights
or remedies for the same default or any other default by the other
party.
In the event that a default of either party may remain
uncured for more than fifteen (15) calendar days following written
notice, as provided above, a "breach" shall be deemed to have
occurred. In the event of a breach, the party who is not in
default shall be entitled to terminate this Agreement .
15 . (RESERVED -- NO TEXT1 .
16. Compliance with Law. The Developer
acknowledges that under the Site DDA it shall be required (among
other things) to carry out the construction of certain improvements
in conformity with all applicable laws, including all applicable
planning and zoning laws, environmental planning and safety laws
and federal and state labor standards .
17 . No Assianment Assignment of Agreement . This Agreement
shall not be assigned by the Developer (except to a new or successor
entity in which the principals of the Developer have an ownership
interest and management control) without prior written approval of
the Agency, which the Agency may grant or refuse at its sole
discretion.
18 . Agency Support. The Agency shall cooperate in
providing Developer with appropriate information in its possession
as it relates to the Site provided that the Agency shall not be
obligated to incur any cost or expense therefor.
19 . Reauired Approvals . No Site DDA between the
parties shall have any force or effect nor shall the Agency be
deemed to be a party to any arrangement for the disposition of land
to the Developer until the terms and conditions of the Site DDA
have been considered and approved by the Agency following the
conclusion of a public hearing as required by law.
20 . Press Releases . The Developer agrees to
discuss any press releases it may propose relating to the Site with
a designated Agency representative prior to publication in order to
assure accuracy and consistency of the information.
SBEO/0001/DOC/3447
2/4/99 420 ct 8
Exhibit "A"
CDC/99-7
21 . Notice All notices required hereunder shall
be presented in person or by FAX and confirmed by First Class
United States mail with return receipt requested. Notice shall be
deemed confirmed by United States mail effective the second
business day after deposit with the United States postal service.
Notice by personal service shall be deemed effective upon receipt.
Either party may change their address for receipt of notice by
notifying the other party.
TO DEVELOPER: Century Crowell Communities, LP
1535 South "D" Street, Suite 200
San Bernardino, California 92408
Attn: John Pavelak, President
(909) 381-6007
TO AGENCY: Redevelopment Agency of the City
of San Bernardino
201 North "E" Street, Suite 301
San Bernardino, California 92401
Attn: Executive Director
(909) 384-5081
22 . Acceptance of Agreement by the Developer. The
Developer shall acknowledge its acceptance of this Agreement by
delivering the Exclusive Right to Negotiate Charge in cash or
available funds to the Agency by no later than 4 : 30 p.m. on the
seventh (7th) calendar day following the approval of the Agreement
by the Agency, together with two (2) counterpart executed copies of
this Agreement siged by an authorized officer of the Developer.
23 . Authority. Each signatory to this Agreement
represents and warrants that he or she has the authority to execute
this Agreement on behalf of the principal who he or she represents .
This Agreement may be executed by the parties in counterpart.
SBEO/0001/DOC/3447
2/4/99 420 ct 9
Exhibit "A"
CDC/99-7
IN WITNESS WHEREOF, the undersigned have executed this
Agreement on the dates indicated next to each of their signatures
as appear below.
DEVELOPER
Date : Century Crowell Communities, LP
a California limited
partnership
By:
AGENCY
Redevelopment Agency of the City
of San Bernardino
Date : By:
Gary Van Osdel
Executive Director
APPROV aAS FORM:
1 - 4 •4°1
Ag ncy Special Counsel
SBEO/0001/DOC/3447
2/4/99 420 ct 10
Exhibit "A"
CDC/99-7
1 COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO
2
3
AGENDA
4
5 February 15, 1999
6
7 Item: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING A CERTAIN
8 AGREEMENT FOR THE EXCLUSIVE RIGHT TO NEGOTIATE FOR
PROPERTY ACQUISITION AND DEVELOPMENT ASSISTANCE BY
9 AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF
SAN BERNARDINO AND CENTURY CROWELL COMMUNITIES, LP
10
11 Action to be
Taken: Adopt Exhibit "A" to Resolution; Adopt Resolution
12
13
14 Certified copy of Resolution and executed Exclusive Right to
Negotiate Agreement to be returned to Sabo & Green.
15
16
17
18
19
20
21
22
23
24 �/
25
26
27 SBEO/0001/DOC/3999
28
C I T Y OF S A N B E R N A R D I N O
INTEROFFICE MEMORANDUM
CITY CLERK'S OFFICE
DATE: February 17, 1999
TO: Barbara Lindseth, EDA,
FROM: Josie Alvarez, Clerk III/Liens
SUBJECT: Transmittal for signatures to return to City Clerk for
filing with Resolution No. CDC/99-7
COPIES: file
Attached are the following:
Two original Exclusive Right to Negotiate for Property Acquistion
to be filed with Res. CEDC/99-7 to be executed by Gary Van Osdel,
Executive Director and Century Crowell Communities, PD a California
limited partnership.
Please obtain signatures on all documents and return one (1) fully
executed original to the City Clerk' s office for filing with said
resolution.
If you have any questions, please do not hesitate to call the
undersigned at 5102 . Thank you.
Josie Alvarez,
Account Clerk III
I hereby aqAnowle dge receipt of the above mentioned documents.
i
DateEr..
ja
enclosures