HomeMy WebLinkAbout06- Development Department DE ._— LOPMENT DEPARTMENT
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENNETH J. HENDERSON SUBJECT: ARROW VISTA
Executive Director PROJECT - CHRONOLOGY OF
EVENTS
DATE: October 28, 1993
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Svnopsis of Previous Commission/Councit/Committee Action(s):
The Commission, since September, 1989,has taken numerous actions relating to the Arrow Vista project. Most
recently, the Commission on October 21, 1993 continued the matter relating to the Arrow Vista housing project
to November 1, 1993.
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Recommended Motion(s):
(Community Development Commission)
MOTION: That the Community Development Commission receive and file the attached
staff report and Chronology of Events related to the Arrow Vista Project.
Administrator KENNE H J. HE ERSON
Executive Directo
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Contact Person(s): Kenneth J. Henderson Phone: 5081
Project Area(s): Ward(s):
Supporting Data Attached: Staff Report, Chronology of Events
FUNDING REQUIREMENTS: Amount: $ N/A Source: N/A
Budget Authority: N/A
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Commission/Council Notes:
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KJH:lag:arochron.cdc COMMISSION MEETING AGENDA
MEETING DATE: 11/01/1993
Agenda Item Number:
DEVE _ OPMENT DEPARTME _. T
STAFF REPORT
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Arrow Vista Proiect Chronolo2v of Events
On September 20, 1993 in closed session and on October 21, 1993 in open session, the
Community Development Commission considered certain actions in connection with the
Agency's delinquent loans with Dukes-Dukes and Associates concerning the Arrow Vista
housing project. On October 21, 1993, after discussion, the Commission took action
continuing to November 1, 1993 the matter relating to the Arrow Vista housing project.
Elsewhere in this agenda packet is an item requesting the Commission to consider
recommendations made by its Redevelopment Committee. As a result of this request, the
Chairman of the Commission requested staff to develop and submit the attached chronology
of events related to the Arrow Vista transaction.
Based upon the foregoing, staff recommends adoption of the form motion.
I
M
KENNETH J. HE DERSON, Executive Director
Development Dep rtment
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KJH:1ag:arochron.cdc COMMISSION MEETING AGENDA
MEETING DATE: 11/0111993�
Agenda Item Number: �-4'
ARROW VISTA
CHRONOLOGY OF EVENTS
04/20/90 DDA WAS ADOPTED TO CONSTRUCT 114 SINGLE FAMILY HOUSES
• One hundred percent (100%) construction loan financing for the
construction of 114 single-family dwelling units.
• Interest rate on construction loan at Bank of America - prime plus 1.5%.
• Interest-free construction loan for construction of three (3) models in the
amount of$275,000.
• Sale by Agency to Dukes of seventy-six (76) 7,200 square foot lots with
streets, curb, gutter, sidewalk and utilities already installed at $25,000
per lot.
• Models repayed on pro-rata basis over remaining 111 homes
• Ten percent (10%) of construction draws retained in lieu of the posting
by developer of a completion bond.
07/19/91 FIRST AMENDMENT TO DDA
• Changed phases, making Phase II Phase III, and Phase III Phase H.
• Removed time er
eriods for form
p performance.
04/22/92 SECOND AMENDMENT TO DDA
• Allowed Dukes to sell or encumber three (3) models immediately rather
than at end of project. This allowed Dukes to supplement company's
cash-flow.
• The construction loan of Phases IIA and IIB was converted from
interest bearing to a non-interest bearing g
• Amended construction draw procedure.
• Provided Dues a $250.000 business reorganization loan secured by
Dorjil Estates, Phases I and II
• Provided prospective homebuyers a closing cost loan up to $5,000 to be
paid from $25,000 per lot Dukes owes to A encv
• The Agencv subordinated its DDA on the Dukes-owned thirty eight(38)
lot parcel to allow Dukes to secure a line of credit
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ARROW VISTA
CHRONOLOGY OF EVENTS
10/20/92 $5,000 Second Trust Deed converted to Grant
12/1992 Dukes-Dukes the Agency and Pridemark Homes entered into a Marketing and
Maintenance Agreement to dispose of the existing 30 house inventory.
03/01/93 AGENCY PURCHASES PHASE III
• Thirty-eight (38) lots Phase III.
• Purchase price $700,000.
06/1993 Expiration of Agreement with Pridemark Homes with no houses sold. SBA
Lien was filed against Arrow Vista restricting ability to perfect title to homes,
cancelling any further sales activity.
07/1993 Agency staff met with Councilman Hernandez on Dukes-Dukes and Associates
REIT.
REIT proposal submitted from Dukes-Dukes and Associates.
Keyser-Marston & Associates completes its review/analysis of the Arrow Vista
REIT proposal.
Development Department Housing Division provided Dukes-Dukes and
Associates with a comprehensive listing of Agency issues and concerns
surrounding the REIT.
10/28/93 CURRENT STATUS OF THE PROJECT
• Fifty-one (51) homes built; twenty-two (22) homes sold; thirty (30)
homes remain unsold.
• Outstanding Encumbrances (including interest):
Sewer Capacity $166,568
Business Reorganization $314,143
Land Acquisition $1,814,464
Construction Loans $3,304,937
TOTAL $5,600,112
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