HomeMy WebLinkAbout05- Economic Development DEVELOPMENT DEPARTi.. ENT
OF THE CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
FROM: KENNETH J. HENDERSON SUBJECT: ARROW VISTA HOUSING
Executive Director DEVELOPMENT PROJECT
DATE: January 5, 1994
---------------------------------------------------------------------------------------------------------------------------------------------
Synonsis of Previous Commission/Council/Committee Action(s):
On September 20, 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 reconsider disposition of this development
project in sixty (60) days.
---------------------------------------------------------------------------------------------------------------------------------------------
Recommended Motion(s):
(COMMUNITY DEVELOPMENT COMMISSION)
MOTION: That the Community Development Commission consider disposition of the Arrow Vista Housing
Development Phase I and Phase IIA standing inventory.
11�1
Administrator KENN TH J. HE PERSON
Executive Directo
---------------------------------------------------------------------------------------------------------------------------------------------
Contact Person(s):Kenneth J. Henderson/David R. Edgar Phone: 5081
Project Area(s): Northwest (NW) Ward(s): Six (6)
Supporting Data Attached: Staff Report
FUNDING REQUIREMENTS: Amount:$ N/A Source: N/A
Budget Authority: N/A
---------------------------------------------------------------------------------------------------------------------------------------------
Commission/Council Notes:
----------------------------------------------------------------------
KJH:DRE:paw:arowvsta.cdc COMMISSION MEETING AGENDA
Meeting Date: 01/10/94
Agenda Item No: S
DEVELOPMENT DEPARTMEi. f
STAFF REPORT
-------------------------------------------------------------------------------------------------------------------------------
ARROW VISTA HOUSING DEVELOPMENT PROJECT
On Thursday, September 30, 1993, Agency staff met with the Mayor, three members of the
Council and Dukes-Dukes and Associates to discuss disposition of Phase I and Phase IIA of the
Arrow Vista housing development project. As previously documented, these thirty homes and
three models represent a significant expenditure of Agency resources (approximately
$4,000,000), which when sold could be utilized towards other worthwhile housing projects.
Absent any recent sales activity, however, Agency resources remain both "tied-up" and solely
dependent on performance by the developer for ultimate recapture and re-use within the
community.
At the Redevelopment Committee meeting conducted on Thursday, October 7, 1993, discussion
regarding disposition of the Arrow Vista Housing Development project standing inventory
included the following important issues:
* Councilwoman Pope-Ludlam indicated her commitment and desire to work directly
with staff, Dukes-Dukes and Associates and the Small Business Administration
(SBA) for the purpose of removing the existing lien recorded against this project.
* Mary McGinnis, President of the Orangewood Estates Homeowners Association,
expressed her desire to utilize the existing list of potential home buyers developed
by San Bernardino Community Hospital and to keep Dukes-Dukes and Associates
in the project until final completion.
Following the October 7, 1993 meeting discussions, the Redevelopment Committee
recommended consideration of the following motions by the Community Development
Commission on November 1, 1993:
Motion A: That the Community Development Commission authorize Councilwoman
Pope-Ludlam to work with the Agency Administrator and Dukes-Dukes and
Associates for the purpose of removing the existing Small Business
Administration (SBA) lien recorded against the Arrow Vista project.
Motion B: That the Community Development Commission allow Dukes-Dukes and
Associates to remain as a principal in the Arrow Vista project and to proceed
expeditiously with marketing and sale of existing Arrow Vista project
standing inventory.
-----------------------------------------------------------------------
KJH:DRE:paw:arowvsta.cdc COMMISSION MEETING AGENDA
Meeting Date: 01/10/94
Agenda Item No:
DEVELOPMENT DEPARTMENT STAFF REPORT
ARROW VISTA HOUSING DEVELOPMENT PROJECT
January 4, 1994
Page - 2 -
---------------------------------------------------------------------------------------------------------------------------
Motion C: That staff and Dukes-Dukes and Associates utilize the San Bernardino
Community Hospital list of interested employees as a point of departure in the
marketing and sale of the existing Arrow Vista project standing inventory.
On November 1, 1993 the Community Development Commission discussed the Arrow Vista
Housing development project and the marketing and sale of existing Phase I and Phase II standing
inventory. The decision of the Commission, at that time, was to permit Duke-Dukes and
Associates to remain as a principal in the Arrow-Vista project and to proceed expeditiously with
marketing and sale of existing Arrow Vista project standing inventory for a period of sixty (60)
days. Following the sixty (60) day period, the Community Development Commission would then
re-evaluate impact on the Agency and sales activity on the project based upon its financial
condition.
In anticipation of the reconsideration of this project by the Commission on January 10, 1994, the
Development Department Housing Division provided Dukes-Dukes and Associates with a formal
request for information on December 23, 1993. Information requested included a listing of
pending sales currently in escrow, mortgage information/credit reports or applicants and weekly
traffic counts/sales performance information (Please see attached correspondence). The requested
information was to be provided to the Housing Division no later than January 7, 1994.
In response to the Housing Division correspondence, Continental Lawyers Title Company
subsequently submitted information on eight (8) existing Arrow Vista project escrows. The
current escrow information includes the following:
ADDRESS BUYER DATE DATE ESCROW SALES PRICE
SOLD OPENED
1729 Susie Lane Lee 11/06/93 12/06/93 $130,000
1772 Pennsylvania Peterson 11/30/93 12/06/93 $125,000
1773 Susie Lane Wells 11/29/93 12/06/93 $130,000
1728 Pennsylvania Walker 11/17/93 12/06/93 $130,000
1751 Susie Lane Roseborough 12/05/93 12/06/93 $123,000
1729 Pennsylvania Chambers 12/20/93 01/03/94 $125,000
1595 Clyde Street Thong 12/14/93 01/03/94 $135,000
1585 Clyde Street Boyd 10/29/93 01/03/94 $130,000
----------------------------------------------------------------------
KJH:DRE:paw:arowvsta.cdc COMMISSION MEETING AGENDA
Meeting Date: 01/10/94
Agenda Item No:
DEVELOPMENT DEPAKTMENT STAFF REPORT
ARROW VISTA HOUSING DEVELOPMENT PROJECT
January 4, 1994
Page - 3 -
---------------------------------------------------------------------------------------------------------------------------
In addition, based on information received from the Northridge Management Group there are also
three (3) active escrows (through Spring Mountain Escrow) and three (3) additional sales
reservations which have occurred.
ADDRESS BUYER DATE DATE SALES PRICE
SOLD ESCROW
OPENED
1584 Clyde Street Green 10/16/93 11/04/93 $125,000
1684 Susie Lane Hussien 10/23/93 11/04/93 $125,000
1685 Pennsylvania Ellis 11/04/93 $132,990
1925 Gilbert Street Howard Reservation Reservation $120,000
1695 Susie Lane Fulcher Reservation Reservation $123,000
1751 Pennsylvania Hobbs Reservation Reservation $123,000
After thoroughly reviewing information submitted on behalf of the Arrow Vista Housing
development through Dukes-Dukes and Associates, Agency staff have surfaced the following
issues and/or concerns:
• Dukes-Dukes and Associates has not successfully consummated an Arrow Vista project
sale since November 1992.
• The Development Department Housing Division has not received any demand statements
for repayment of the Agency loan proceeds for any of the properties currently listed as
being in escrow. Typically, when a loan is about to fund, the Agency receives a demand
statement from the affected escrow services company.
• Dukes-Dukes and Associates has lowered the sales price on all three (3) Arrow Vista
models by approximately $10,000 per home. This reduction raises serious issues regarding
the availability of sales proceeds necessary to adequately repay all existing Agency debt on
this project. The developer has not yet provided any per house payout projections which
demonstrate sufficient available resources with which to lower sales prices.
----------------------------------------------------------------------
KJH:DRE:paw:arowvsta.cdc COMMISSION MEETING AGENDA
Meeting Date: 01/10/94
Agenda Item No: G
DEVELOPMENT DEPARTMENT STAFF REPORT
ARROW VISTA HOUSING DEVELOPMENT PROJECT
January 4, 1994
Page - 4 -
---------------------------------------------------------------------------------------------------------------------------
• Dukes-Dukes and Associates has not indicated how the Federal Small Business
Administration (SBA) encumbrance (estimated at approximately $223,000) is to be
satisfied. Without adequate resolution of this issue, clear title to each individual property
cannot be obtained and escrow cannot, therefore, be consummated.
Successful resolution of these issues by the developer will to a large extent dictate sale of the
Arrow Vista project standing inventory. Absent resolution of these issues, there remains
serious questions regarding successful consummation of sales information as provided. In the
short-term, this means the Agency will continue to incur security and maintenance costs which
approximate $17 - $20,000 per month. It is important to note these costs significantly impact
the Development Department Housing Division FY 93-94 budget and its ability to carry out
Commission approved goals and objectives.
For the heretofore mentioned reasons, staff recommends adoption of the form motion.
KENN TH J. HE DERSON, Executive Director
Development Department
----------------------------------------------------------------------
KJH:DRE:paw:arowvsta.cdc COMMISSION MEETING AGENDA
Meeting Date: 01/10/94
Agenda Item No: G
J
r�F SAN BE*,V
'°-, City of San Bernardino Economic Development Agency
e ° Kenneth J.Henderson
V 2 DEVELOPMENT DEPARTMENT Executive Director
�
° .
AMENT 1)
December 23, 1993
Mr. John Dukes
DUKES-DUKES AND ASSOCIATES
1875 West Highland Avenue
San Bernardino, California 92405
RE: Arrow-Vista Housing Development Marketing Plan
Dear John:
On October 15, 1993 the Community Development Commission met to discuss the
Arrow-Vista Housing Development Project and the marketing and sale of existing Phase I and
Phase II inventory. The decision of the Commission at that time was to permit Dukes-Dukes
and Associates to remain as a principal in the Arrow-Vista project and to proceed
expeditiously with marketing and sale of existing Arrow-Vista project standing inventory, for
a period of sixty (60) days. At the end of the sixty day period the Community Development
Commission will then re-evaluate sales activity on this project.
In order for the Commission to reconsider this project, the Development Department Housing
Division is requesting the following information:
• Certified list of pending sales that are currently in escrow as of
December 31, 1993.
• Letters from Mortgage lenders and credit reports certifying the
existence and status of home purchases and loans.
• Weekly traffic count from the project sales office, projected sales
prices of all houses and a schedule of sales performance
delineating length of time necessary to consummate sales and
repay the Agency's outstanding debt.
MR. JOHN DUKES
December 23, 1993
Page Number -2-
This information is urgently necessary for the Commission to consider future direction/action
regarding this project at their meeting on January 10, 1994. Since the Agency will be
preparing a staff report on the status of the Arrow-Vista project prior to the Commission
meeting, the Agency is hereby requesting that this information be provided no later than
January 4, 1994.
John, please be assured that the Development Department's Housing Division remains fully
committed to the successful completion of this housing project. To that end, we look forward
to receiving this information and working with you during the upcoming year.
If your have any question regarding this matter please contact myself at (909) 384-5081 or
Robert Lemley, Housing Development Specialist at (909) 793-9390 (home).
^� 'ncerely,
6s, 7
\ r
DAVID R. EDGAR, Housing Division Manager
Development Department
S
JAN-04-94 TUE 15:08 S B "CROW DEPT. FAX NO. 909'462189 P. 02
CONTINENTAL LAWYERS TITLE COMPANY
1845 Business Center Drive, ##200
San Bernaxdi no, CA 92408
(909) 386-2181
January 4, 1994
David R. Edgar
Housing Development Manager
City of San Bernardino
Faxcmic Development Agency
201 N. "E" Street
San Bernardino, CA 92401
RE:: Arrow Vista Project, _Tracts 11261-and-.11259
Dear Mr. Edgar:
Pursuant to your request, you will find Listed below the lot numbers which
are currently in escrow at this office:
1) Escrow No. 3864-3, Buyer: 10B, Purchase Price $130,000.00
Lot 3, Tr. 11261/Open 12-6-93, Close 1-6-94
2) E.s=ow No. 3865-3, Buyer: Peterscn, Purchase Price $125,000.00
Lot 44, Tr. 11261/Open 12--6-93, C1oee 1--31-94
3) Escrow No. 3866-3, Buyer: Wells, Purchase Price $130,000.00
lot 5, Tr. 11261/0pen 12-6-93, Close 2-1-94
4) Escrow No. 3867-3, Buyer: walker, Purchase Price $130,000.00
Lot 46, Tr. 11261/Open 12-6-93, Close 1-18-94
Lender: Sunland Mortgage, 10945 S. Street, Cerritos, CA
5) Escrow No. 3868-3, Buyer: Roseborough, Purchase price $123,000.00
Lot 4, Tr. 11261/0pen 12-6-93, Close 2-5-94
6) Escrow No. 3917-3, Buyer: Chambers, Pur ham Price $125,000.00
Jot 23, Tr. 11261/Open 1-3-94, Close 3-4-94
7) mow No. 3918-3, Buyer: Thong, Purchase Price $135,000.00
Lot: 26, Tr. 11259/Open 1-3-94, Close 3-4-94
8) Escrow No. 3919-3, Buyer: Boyd, purchase Price $130,000.00
Lot 27, Tr. 11259/Open 1-3-94, Close 3-4-94
Currently, our office has only been notified of a new lender for Lot 46 of
Traot 11261 as mterl above.
if there is anyttvng further that you need, please feel free to contact the
undersigned.
Sincerely,
CONTINENTAL IAWYERS,,TITLE COMPANY
FF'Lir°1 Pr i de-rn, r-I<. Horner-Z, PHI-it IE rJO. : 941 112 F F-1
VSPWNG
MOUNTAIN
ESCROW
( ear0RATICh
January 3, 1994
Dukes-Dukes and Associates
1875 W. Highland Avenue
San Bernardino, CA 92411
ATTN: JOHN DUKES
Re: Arrow Vista Tract
'tract Nos. 11259 and 11261
Dear Mr. Dukes:
This letter i$ to sate that there are three escrows we are currently handling
on the above-mentioned trac:t.s , as follows:
Lot #/Tract # Buxers names
20/11261 Ellis
24/11259 Green
19/11261 Hussein
Please contact me if you have any further questions.
Sincerely,
Debie Hall , for
Holly King,
Senior Escrow Officer
S
1
3 1 M M M M M M M M
O I 10 1 I I I I f` 111 I I I
�1 O I d' W dl V' W l0 �' ct' t` U) (`
Uz I 011 H io k0 kO 0o H Q0 �D
N I 0 m 0) W 00 CO o 0 0) co CO
W H M M Cl) M M H H M d M
M
3rO 1 O rnrn rnrnrn rnrn rn rn O
U O v I \\\ \\\ \\ \ \ \
1) p C I
fo U N I coo 000 O O O O O
Q fn ¢, 1 \\\ \\\ \\ \ \ \
W 0 1 H H H N N N H H H N N
I
H 0 0 HHH Hr-I O H H
I M M M Cl M M M M M M M
1 01 Q dl Ol Ol d> 6l dl Q O1 0
N N 1 \\\ W \\\ \\ \W \ \
H 4-1 1 lO d' m > 0 U1 M M N O 'J O 1,
(a ((7 1 HHN GOON NO N (x M
U) Q 1 \\\ W \\\ \\ \W \ \
1 ONO CO HNH OH NU) H H
i H H H W H H H H H H W H H
a a
0 0 00 0
H H H H H H CJ
ra b)Q. i mv� m mom mm mm U) x
14 0 00 a 0 0 < �a0 o Q
O U I U H H U H U H U H U H H Z
U U H U H 0 H Hu U r�
a W Wa WaW as aW w
QQa Q Q Q Q m
to coo 0000 00 00 0 0
0 1 0 0 0 0 0 0 0 0 99 99 0 0
.1i : o o 000 0000 00 00 O O
f4 I O 000 0000 061 00 O O
a 1 0 000 0 0 0 0 o m 00 0 0
N I O 111 U1O MoMO 111N Ln1 U7 O
O I N N M f"1 N M N M N Cl N N N M
H I H H H H H H H H H H H H H H
ro I
U) I
I W
I WHPHEiH �C � � �C � FC � � FCRC AFC
fA I a W W W W W H H H H H H H H H H H H H H
viHua�iHHHHaaaaaaaaa > aa > a > > aa >
zs 1 wwwwwwwwwwwwwwwwwrncncnmrnlnmrnmmcnmmm
] QQ >4Q >4MM W cHi� v HimvHivHicncMMZZzzzzzzzzzzzz
1 H a a a a a Q Q :D Q Q Q Q �D �D �D Q W W W w w W W W W W W W W W
IC7000UVmmMMWMMWWmmaaaaaaaaaaaaaa
1
111 -IT d' U) 111 U1 U) U1 O1 H M N O c0 V' �' d' U1 1I'1 to Ol H M U1 C N O N d' V' N
N I0 W M M Q 0 M (N 111 h 1` M N O M M 0 M O N 111 1- M O� r` 111 N O Ol M
1 01 U1 0 M U1 Ul k0 0 h 1\ ll 1` 1\ 1` n Q Q lD Q 1\ h r r` 1\ 1` n r n h 10 Q
I H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H H
U] 1
w x
w 0 w w c°n a
zrn >4 i z0 x Wm Hm mm a w
Hw x l W zQ u W �-1 U) H CO W x
z C[1 1 3 W 0 �H �4wma Ula Cl H .4
HO 10 a x 0 x W 0 W x x0 w <
x U I x c7HW waas x W u a 3
W Ul 9 O I31 I M M N 0 M M 0) M M M M M O1 M M M N M M M N M M M M N M M M N M
a N H �4 M 1 0 n 1\ M U) U1 M n 0 1` M 1` to h n r` M M r f` M 1- U1 t`
—Z f0 J-) 1 00 0 l0 00 W 00 00 U1 00 U1 00 U1 00 U1 CO U1 Q U) W 00 lO U1 Ib U1 U) 0 U1 of U1 lO U1
�o a � 0 1 - _ _ - _ _ _ _ _ _ _ _ - . . . . . . . . . . . . . .
0 IT O H H H H H H H H H H H H H H H H H H H H H H H
N W a H
U) W 1
H H Ol
V] 61 I M M N M M M M H M H M H M H M H N H M M N H M H H N H M H N H
U) U] H (6 O 1
rtr -4 z 1
x -M I
wa0 I
z >4
-H ( .♦,.) • 1 M N d' 0 r� M H N M d' lf) d' In lO f' 00 M O H N M d' U1 Q M -P U1 0 f- of 01
Q ry' O O I H N N N N N H H H H H H N N N N N N N d' d'
P U) ID I 1
LO Cli H N
r4 r-1Z <
> HHa r7 I H N
w al 1
0 0 0 x 0 6 1 cwn U) C
S4 14 114 U) a l x x �•J
E-4 HU) 4 1 a a