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Home My WebLink About08- Development Department D $ V E T 0 P M E N T D E P A R T M E N T THE CITY OF SAN BERNAR.DINO ` REQUEST FOR COMMISSION/COUNCIL ACTIOft From: KENNETH J. HENDERSON Subject: THE MILLENNIUM Executive Director SENIOR HOUSING PROJECT Date: August 25, 1993 ------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On March 7, 1992, the Community Development Commission approved $200,000 in bond proceeds for bridge demolition and removal. The Commission subsequently approved an additional $100,000 for certain cost overruns and conditions imposed by various City Departments. On June 1, 1992, the Community Development Commission authorized $1,543,220 to finance a multi-family senior citizen oriented housing complex (Millenium Manor/Cliff Carel-Developer) . On May 24, 1993, the Community Development Commission authorized execution of a loan agreement with Cliff Carel and Associates and Escrow Funding Service in an amount not to exceed $1,543,220. ------------------------------------------------------------------------------- Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission approve a Satisfaction and Termination Agreement between the Redevelopment Agency, Cliff Carel and Associates and Escrow Funding Service, reimburse Cliff Carel and Associates the original $10,000 dollar "good faith" development deposit plus interest in the amount of $6,600 for a total of $16,600.00 and authorize the Chairman and Executive Director to execute any documents necessary to effecuate said transaction. Admi strator KENNETH J. REND RSON Executive Director ------------------------------------------------------------------------------- Contact Person(s) : Kenneth Henderson/Ed Flores Phone: 5081 Project Area(s): Central City Project Ward(s): One (1) Supporting Data Attached: Staff Report FUNDING REQUIREMENTS: Amount: $ 16,600,00 Source: Low/Mod Funds Budget Authority: Approved June 1, 1992 ------------------------------------------------------------------------------- Commission/Council Notes: ------------------------------------------------------------------------------- KJH:DRE:ELF:2550B COMMISSION MEETING AGENDA Meeting Date: 09/07/93 Agenda Item Number: D E V E O P M E N T D E P A R T M E F J CITY OF SAN BERNARDINO STAFF REPORT Millennium Senior Housing SATISFACTION AND TERMINATION AGREEMENT On June 1, 1992, at the specific recommendation of the Housing Committee, the Community Development Commission authorized $1,543,220 in Agency monies to finance a multi-family senior citizen oriented housing complex. Following this action on May 24, 1993, the Community Development Commission executed a loan Agreement between the Redevelopment Agency, Cliff Carel and Associates and Escrow Funding Service for financial assistance necessary to facilitate the construction of a forty-five (45) unit senior citizen oriented housing complex. On August 24, 1993, Mr. Cliff Carel requested that EDA Staff prepare a Satisfaction and Termination Agreement to be executed by all parties relative to the termination of the previous Disposition Development Agreements (DDA) and amendments to same, as well as the current Loan Agreement for construction of the Millennium Senior Citizen Housing Project. These activities are the result of deteriorating economic conditions which have negatively impacted the feasibility of the Millennium Project. In conjuction with satisfaction and termination of the DDA and Loan Agreement, the Agency deems it appropriate to reimburse Mr. Carel an amount equal to Sixteen-Thousand, six-hundred Dollars ($16,600.00) which represents the Ten-Thousand Dollar ($10,000.00) "Good Faith" development deposit previously submitted to the Agency and all accrued interest (6%). Upon execution of the Satisfaction and Termination Agreement, all parties agree not to pursue any of the rights or remedies otherwise entitled to them under default provisions, and the Loan Agreement shall hereby be deemed terminated. Based upon current economic conditions which have negatively impacted the feasibility of this development, and because all parties agree to terminate the DDA and the Loan Agreement, staff recommends adoption of the form motion. MW 611p, - - KENNETH J. HE4DERSON, Executive Director Development D partment ------------------------------------------------------------------------------- KJH:DRE:ELF:2550B COMMISSION MEETING AGENDA Meeting Date: 09/07/93 Agenda Item Number: i RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) SABO & GREEN ) A PROFESSIONAL CORPORATION ) 6320 Canoga Avenue, Suite 400 ) Woodland Hills, CA. 91367 ) (Space Above for Recorder's Use) SATISFACTION AND TERMINATION AGREEMENT BY AND AMONG E REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, AND CLIFF R. CAREL & ASSOCIATES a California Limited Partnership AND ESCROW FUNDING SERVICE, a California Corporation 4 i I II I I i f SATISFACTION AND TERMINATION AGREEMENT THIS SATISFACTION AND TERMINATION AGREEMENT (the "Termination Agreement") is entered into this day of 1993, by and among the REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO, a public body, corporate and politic, duly organized and existing pursuant to the Community Redevelopment Law of the State of California (the "Agency") and CLIFF R. CAREL & ASSOCIATES, a California Limited Partnership ("Carel") and ESCROW FUNDING SERVICE ("EFS") , a California Corporation. R E C I T A L S WHEREAS, in furtherance of the objectives of the Community Redevelopment Law, pursuant to Ordinance No. 3571 of the City of San Bernardino, California (the "City") , adopted May 3, 1976, the City and the Agency have previously approved and adopted the Redevelopment Plan for the Central City Project (the "Redevelopment Plan") ; and WHEREAS, on December 20, 1982, the Agency entered into a Disposition and Joint Development Agreement (the "Disposition and Joint Development Agreement") with Carel for the sale to and the development by Carel of certain property located within the Project Area subject to the Redevelopment Plan, as more fully described in the Disposition and Joint Development Agreement; and -1- Om WHEREAS, a First Amendment to the Disposition and Joint Development Agreement between the Agency and Carel was executed on March 4, 1983 (the "First Amendment to the Disposition and Joint Development Agreement") ; and WHEREAS, a Second Amendment to the Disposition and Joint Development Agreement between the Agency and Carel was executed on February 5, 1985 (the "Second Amendment to the Disposition and Joint Development Agreement") (the Disposition and Joint Development Agreement, together with the First Amendment to the Disposition and Joint Development Agreement and the Second Amendment to the Disposition and Joint Development Agreement, shall be collectively hereinafter referred to as the "DDA") ; and WHEREAS, the Agency, Carel and EFS further executed a certain Loan Agreement (Millennium Manor Senior Housing Project) dated August 4, 1993 (the "Loan Agreement") which by its terms superseded in its entirety the DDA; and WHEREAS, at the present time economic conditions have negatively impacted the feasibility of development of the Millennium Manor Project, as defined in the Loan Agreement, and to date Carel has not commenced the construction or development of the Millennium Manor Project; and -2- .00,*Nb WHSREAs, Carol has -requested that because of the impracticability of undertaking the Millennium Xanor project at this time that the Agency, EFS and Carol terminate the Loan Agreement and doom the conditions therein Satisf iod and/or forgiven in full; and WHEREAS, in addition to the termination of the Loan Agreement, Carol and the Agency deem it desirable to terminate the DDA and consider the obligations of the Parties under all DDA's completely satisfied and/or forgiven; and WHEREAS, in order to cause the satisfaction and termination of the DDA and the Loan Agreement, the Agency deems it appropriate to reimburse Carol, an amount equal to sixteen Thousand Six Hundred Dollars ($16,600) which amount represents the Ten Thousand Dollar ($io,000) deposit as previously submitted to the Agency by Carol in accordance with the DDA, With all accrued interest thereon; and WHEREAS, EFS, as a party to the Loan Agreement, had agreed to perform certain functions thereunder and therefore it would be appropriate that all of the obligations to be performed by EFe under the Loan Agreement be deemed fully satisfied and/or forgiven. -3- NOW, THEREFORE, in consideration for their mutual covenants and provisions set forth hereinafter, the Agency, Carel and EFS hereby agree as follows: Section 1. Upon payment by the Agency of the sum of $16, 600.00, representing the deposit previously received by the Agency from Carel under the DDA, with accrued interest, Carel shall be deemed to have satisfied all of its obligations and duties under the DDA and the Loan Agreement and shall be excused from any further performance under the terms of the DDA or the Loan Agreement. Section 2. Upon the satisfaction of the conditions set forth in Section 1 hereof, EFS shall be deemed to have fully satisfied all of its duties and obligations under the Loan Agreement and shall be excused from any further performance under the terms of the Loan Agreement. Section 3 . The Parties hereby agree that upon the satisfaction of the requirements of Section 1 hereinabove and in consideration therefore, the Parties shall not pursue any of the rights or remedies that they may otherwise be entitled to under default provisions contained in the DDA or in the Loan Agreement and the DDA and the Loan Agreement shall be deemed terminated and of no further force or effect. -4- 0 ti The terms used herein unless otherwise de-fined shall have the same meaning as in the Loan Agreement. section 5. The terms covenants, conditions and restrictions of this Agreement shall extend to and shall be binding upon and inure to the benefit of the hairs, executors, administrators, successors and assigns of Carol, the Agency and SFS. section G. it is agreed by the Parties that Parcel No. APNf 135-181-66 as previously transferred by the Agency to Carol in accordance with the terms of the DDA shall not revert to the Agency as may be otherwise provided for under the DDA. -5- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. "AGENCY" REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By Executive Director APPROVED Aa TO FORM LEGAL CONTENT: By. �- Special Counsel to the Agency "CLIFF R. CAREL & ASSOCIATES" a California Limited Partnership 6 ' By: � Cliff Carel Presid n� By: Secretary "ESCROW FUNDING SERVICE" a California Corporation By: SBE0/0=-591D0Cn05 8/13/93 QO -6- STATE OF C ORN A ) COUNTY O� �iis�ii/�/i�, ) On before me; '��,�/��;� c/ l ./�/ (here i s t me d title of the office ) , personally appeared (or proved to me on the basis of satisfactory evidence) to be the person(-e j' whose name(aT is/ax-e-subscribed to the within instrument. and acknowledged to me that he/n'� 'ter executed the same n his/hem authorized capacity(ieei , and that by his/herytheir,signature(-�on the instrument the persons}-, or the entity upon behalf of which the persons-)- acted, executed the instrument. WITNESS my hand /and official seal. Signatur l! (Seal) JACQUEUNE M.ARNOLD COMM.#976440 Notary Public—Cafifomia SAN BERNARDINO COUNTY MY Comm.Expires NOV 1,1996 i STATE OF CALIFORNIA ) COUNTY OF ) On before me, (here insert name and title of the officer) , personally appeared ' personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) , and that by his/her/their signature(s) on the instrument the person(s) , or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) d STATE OF CALIFORNIA ) COUNTY OF ) On before me, (here insert name and title of the officer) , personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies) , and that by his/her/their signatures) on the instrument the person(s) , or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) E