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HomeMy WebLinkAboutR32-Economic Development Agency CITY OF SAN BERNARDINO * ECONOMIC DEVELOPMENT AGENCY ORIGINAL FROM: Maggie Pacheco SUBJECT: Joint Public Hearing-Amendment No. I to Executive Director the 2005 401h Street Redevelopment Project Area Single Family Residential Disposition and Development Agreement - TELACU DATE: September 26,2006 Development,LLC --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Synopsis of Previous Commission/Council/Committee Action(s): On August 24, 2006, Redevelopment Committee Members Estrada, Johnson and Baxter unanimously voted to recommend that the Community Development Commission consider this action for approval. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Recommended Motion(s): Open/Close Joint Public Hearing (Mayor and Common Council) A: Resolution of the Mayor and Common Council of the City of San Bernardino consenting to the disposition of certain property located at 267 East 49`h Street(APN: 0154-126-25)by the Redevelopment Agency of the City of San Bernardino ("Agency") pursuant to Amendment No. 1 to the 2005 40`h Street Redevelopment Project Area Single Family Residential Disposition and Development Agreement (TELACU 49th Street New Homes Project) between the Agency and TELACU Development, LLC ("Developer")—40`h Street Redevelopment Project Area (Community Development Commission) B: Resolution of the Community Development Commission of the City of San Bernardino approving Amendment No. 1 to the 2005 40`h Street Redevelopment Project Area Single Family Residential Disposition and Development Agreement (TELACU 49`h Street New Homes Project) ("Amendment No. 1") by and between the Redevelopment Agency of the City of San Bernardino ("Agency") and TELACU Development, LLC ("Developer"); making certain findings thereto and authorizing the Executive Director of the Agency to execute Amendment No. 1 —401h Street Redevelopment Project Area --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Contact Person(s): Maggie Pacheco Phone: (909)663-1044 Project Area(s): 40``'Street RDA Ward(s): 4th Supporting Data Attached: R1 Staff Report 2 Resolution(s) 2 Agreement(s)/Contract(s) ❑ Map(s) ❑Letters FUNDING REQUIREMENTS: Amount: $ Source: Budget Authority: � � . SIGNATURE: Maggie Pa heco,Executive Director Barbara Lindseth,Admin. Services Director ------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------ Commission/Council Notes: 25 aL�-35714 CbC/.;)oo�- :� ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2006\10-02-06 TELACU-Final Amendment No 1 SR.doc COMMISSION MEETING AGENDA Meeting Date: 10/02/2006 JJ�� Agenda Item Number: �OA ECONOMIC DEVELOPMENT AGENCY STAFF REPORT JOINT PUBLIC HEARING - AMENDMENT NO. 1 TO THE 2005 40TH STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT - TELACU DEVELOPMENT, LLC BACKGROUND: On November 21, 2005, the Community Development Commission (the "Commission") approved the 2005 40th Street Redevelopment Project Area Single Family Residential Disposition and Development Agreement between the Redevelopment Agency of the City of San Bernardino (the "Agency") and TELACU Development, LLC (the "Developer") (the "2005 Agreement"). The 2005 Agreement provides for the Agency to convey eleven (11) vacant parcels on 491h Street (the "Site") to the Developer for the development of eleven (11) affordable and market rate single family homes within the 40th Street Redevelopment Project Area (the "Project Area"). The Developer will develop the Site with two (2) design concepts ranging in square footage from 1,407 to 1,500 square feet, two (2) stories, three (3) bedrooms, two and a half(2'/2) baths, and a two (2) car garage (the "Project"). The Developer is providing all the construction financing for the development of the Site, which is in excess of $3 million and they have prepared their working drawings, which are currently being reviewed by the City's Development Services Department. Construction commencement of the eleven (11) single family homes will occur within approximately sixty (60) days with a final construction completion date of fall 2007. CURRENT ISSUE: The four-plex property located at 267 East 49th Street (APN: 0154-126-25) (the "Property") was listed for sale and on March 20, 2006, the Commission authorized the purchase of the Property by the Agency with the intent of transferring the Property to the Developer in furtherance of enhancing the mutual development plans to improve the residential community within the Project Area. Hence, the Property is the subject of a proposed Amendment No. 1 to the 2005 Agreement as follows: • The Agency will convey the Property to the Developer at no cost consistent with the terms of the 2005 Agreement for development of one (1) single affordable home for a buyer earning not more than one hundred twenty percent (120%) of the County median income. This would obligate the Developer to develop a total of six (6) affordable single family homes and six (6) market rate single family homes pursuant to the terms of the 2005 Agreement and the proposed Amendment No.1. The Developer will be required to secure additional financing to construct this additional affordable single family home and obtain all City development approvals as per the provisions of the 2005 Agreement. - ---- --- ----------------------------------------------------------------------------------------------------------------- ----------------------------------------------- P1AgendasTommDevCommission\CDC2006\10-02-06TELACU-Final Amendment No I SR.doc COMMISSION MEETING AGENDA Meeting Date: 10/02/2006 Agenda Item Number: Economic Development Agency Staff Report TELACU Development, LLC—Amendment No. 1 Page 2 ENVIRONMENTAL IMPACT: The proposed Project is exempt from the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), pursuant to § 15332, Class 32, which consists of projects characterized as in-fill development meeting the following conditions: (a) the Project is consistent with the applicable general plan, applicable zoning designation and regulations; (b) the proposed Project occurs within city limits and not more than five (5) acres; (c) the Project site has no value as habitat for endangered, rare or threatened species; (d) the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (e) the Site is adequately served by all required utilities and public services. FISCAL IMPACT: The Agency has expended approximately $596,260 from the Low and Moderate Income Housing Fund ("Housing Fund") for acquisition and demolition of the Property and moving costs associated with the relocation of three (3) families. Given the amount of this expenditure in relation to the production costs of the additional affordable single family home, the Agency must make a specific finding, pursuant to Health and Safety Code Section 33334.30) and said finding is incorporated into the Commission's Resolution. RECOMMENDATION: That the Mayor and Common Council and the Community Development Commission adopt the attached Resolutions. Maggie Pacheco, Executive Director -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- P:\Agendas\Comm Dev Commission\CDC 2006\10-02-06 TELACU-Final Amendment No 1 SR.doc COMMISSION MEETING AGENDA Meeting Date: 10/02/2006 Agenda Item Number: SUMMARY REPORT PURSUANT TO HEALTH AND SAFETY CODE SECTION 33433 OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW— REGARDING THE DEVELOPMENT AND DISPOSITION OF AGENCY PROPERTY LOCATED AT 267 EAST 49TH STREET (APN: 0154-126-25), PURSUANT TO THE TERMS OF AMENDMENT NO. 1 TO THE 2005 40T1l STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT (DDA) BY AND BETWEEN THE REDEVELOPMENT AGENCY AND TELACU DEVELOPMENT, LLC INTRODUCTION This Summary Report (this "Report") has been prepared by the Redevelopment Agency of the City of San Bernardino (the "Agency") in accordance with Health and Safety Code Section 33433. This Report sets forth certain details of Amendment No. 1 ("Amendment No. I") to the 2005 40`" Street Redevelopment Project Area Single Family Residential Disposition and Development Agreement ("DDA") by and between TELACU Development, LLC, (the "Developer") and the Agency. The DDA provides for the transfer of certain Agency-owned land to the Developer for development as new single-family dwelling unit located at 267 East 49`x' Street (APN: 0154-126-25) (the "Property") in the 401" Street Redevelopment Project Area ("Project Area"). The new housing development project, which may be undertaken by the Developer, is referred to in the DDA as the "Project". This Report is prepared for the transfer of the Property. This Report is organized into the following six(6) sections: I. Salient Points of the Proposed Amendment No. 1 to the DDA: This section includes a description of the major responsibilities to be assumed by the Agency and the Developer. H. Cost of the proposed Amendment No. 1 to the DDA to the Agency: This section outlines the proposed costs to the Agency. III. Estimated Value of the Interests to be Conveyed Determined at the Highest and Best Use Permitted Under the Redevelopment Plan: This section summarizes the value of the Property to be conveyed by Amendment No. 1 to the DDA to the Developer at the highest use permitted. IV. Estimated Reuse Value of the Interests Determined at the Required Use and with the Conditions, Covenants and Restrictions Required by the Proposed Amendment No. 1: This section summarizes the sales price to be paid to the Agency, if any. V. Blight Alleviation: This section describes the existing blighting conditions in and around the Project Area, and an explanation of how the proposed sale and development of the Property will assist in alleviating the blighting conditions. VI. Conformance with the AB 1290 Implementation Plan: This section identifies how the proposed Amendment No. 1 to the DDA will result in a development activity that fulfills goals and objectives established in the Agency's AB 1290 Five-Year Implementation Plan. 1. SALIENT POINTS OF THE PROPOSED AMENDMENT NO. 1 TO THE DDA A. Description of the proposed Project • The purpose of Amendment No. l to the DDA is to transfer the Property to the Developer to facilitate the development of one (l) additional single-family home on the Property in the Project Area in addition to those Agency Lots specified in the DDA. If 4814-7311-6672.1 1 P'.\Agendas\Agenda Attachments\Summary Reports\2006\10-02-06 TELACU-Final Amendment No.1 Summary Report.doc needed, all necessary infrastructure improvements such as electricity, sewer, gutter, landscaping will be provided by the Developer. B. Agency Responsibilities • Transfer the Property to the Developer pursuant to the terms of the DDA and Amendment No. 1 to the DDA. C. Developer Responsibilities • Execute and implement Amendment No. I to the DDA with the Agency and agree to accept the Property and develop additional one (1) single-family affordable home per Amendment No. 1 to the DDA, sell the home to a low and moderate-income household and secure the construction/permanent financing required to develop the Property. • Complete the construction and sale of one (1) additional new home per the Schedule of Performance in Amendment No. 1 to the DDA. II. COST OF THE PROPOSED AMENDMENT NO. 1 TO THE DDA TO THE AGENCY The Agency expended an estimated $596,260 for the acquisition, closing costs, demolition and relocation cost from the Low and Moderate-Income Housing Funds for the Property. The Agency will transfer the Property to the Developer at a cost to the Developer of$1.00 for the construction of one (1) new single-family affordable home for a low and moderate-income household. III. ESTIMATED VALUE OF THE INTERESTS TO BE CONVEYED DETERMINED AT THE HIGHEST AND BEST USE PERMITTED UNDER THE REDEVELOPMENT PLAN The value of the interest to be conveyed based upon the restrictions and requirements for the construction of an affordable home on the Property negates any residual land value for the Property. This use as an affordable home is considered to be the highest and best use for the Property permitted as a single-family residential affordable unit under the 401h Street Redevelopment Project Area Plan. IV. ESTIMATED REUSE VALUE OF THE INTERESTS DETERMINED AT THE REQUIRED USE AND WITH THE CONDITIONS, COVENANTS AND RESTRICTIONS REQUIRED BY THE PROPOSED AMENDMENT NO. 1 The estimated fair market value of the interest to be conveyed to the Developer is $1.00 based upon the covenants and restrictions related to the requirement to provide an affordable housing unit pursuant to the terms of Amendment No. 1. The transfer of the Property is necessary to implement the Redevelopment Plan for the Project Area and to provide a new home for a low and moderate- income household. The interest to be conveyed to the Developer has been determined to be the highest and best use (single-family residential) permitted under the 401h Street Redevelopment Plan and such use is consistent with the determination of the reuse value. As required under the Health and Safety Code Section 33334.30), the Agency estimates that more than fifty percent (50%) of the cost of producing the single family affordable housing unit has been expended from the Low and Moderate-Income Housing Fund (estimated construction cost per unit 4814-7311-6672.1 2 P:\Agendas\Agenda Attachments\Summary Reports\2006\10-02-06 TELACU-Final Amendment No.1 Summary Report.doc is $245,000 and fifty percent (50%) of the estimated construction cost is $122,500; the Agency's expenditure from the Low and Moderate Income Housing Funds is $596,260. This expenditure is necessary because there are no other viable resources available to produce the affordable single family housing unit at the level of affordability and quality required under the City's Development Code, and the Agency will record and receive a forty five (45) year Covenants, Conditions and Restrictions on the new home sold to an income restricted household. V. BLIGHT ALLEVIATION The development of the Property will eliminate existing blight, foster the reuse of under utilized property into a new single-family affordable home for the benefit of the low and moderate-income residents of the Project Area and the City, increase property values and return the Property to the tax rolls. VI. CONFORMANCE WITH THE AB 1290 IMPLEMENTATION PLAN The Five-Year Implementation Plan adopted by the Agency contains several broad operational goals and objectives for the Project Area. Among these are the following: • Eliminate blighting influences, including, deteriorating buildings, uneconomic land uses, obsolete structures, and other environmental, economic, and social deficiencies. • To re-plan, redesign, and develop underdeveloped areas that are stagnant or improperly utilized. • To provide housing opportunities. Amendment No. 1 to the DDA will assist the Agency in meeting the objectives and goals of its Five-Year Implementation Plan for the Project Area in the following way: The execution of Amendment No. 1 to the DDA with the Developer will continue redevelopment activities of the Agency by providing low and moderate-income housing within a designated redevelopment project area. Based upon the preceding factors, Amendment No. 1 to the DDA is consistent with the adopted Five- Year Implementation Plan. The interest and land conveyed to the Developer will be developed in conformance with the City's General Plan and Housing Element, Municipal Development Code, and Agency's AB 1290 Implementation Plan. 4814-7311-6672.1 3 P'.\Agendas\Agenda Attachments\Summary Reports\2006\10-02-06 TELACU-Final Amendment No.I Summary Report.doc 1 RESOLUTION NO. COPY 2 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY 3 OF SAN BERNARDINO CONSENTING TO THE DISPOSITION OF CERTAIN PROPERTY LOCATED AT 267 EAST 49T" STREET (APN: 0154- 4 126-25) BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") PURSUANT TO AMENDMENT NO. 1 TO THE 2005 40TH STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT 6 (TELACU 49Th STREET NEW HOMES PROJECT) BETWEEN THE 7 AGENCY AND TELACU DEVELOPMENT, LLC ("DEVELOPER") — 40TH STREET REDEVELOPMENT PROJECT AREA 8 9 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 10 public body, corporate and politic; and 11 WHEREAS, the Agency owns the property located at 267 East 491h Street (APN: 0154-126- 12 25) (the "Property") in the 40`h Street Redevelopment Project Area("Project Area"); and 13 WHEREAS, the Agency acquired the Property using the Low and Moderate-Income 14 Housing Tax Increment Set-Aside Funds; and 15 WHEREAS, the Agency proposes to transfer the Property to TELACU Development, LLC, 16 a California corporation (the "Developer") in accordance with the terms and conditions of an 17 agreement entitled "2005 40`h Street Redevelopment Project Area Single Family Residential 18 Disposition and Development Agreement (TELACU 49`h Street New Homes Project)". (the "2005 19 Agreement") and Amendment No. 1; and 20 WHEREAS, the Agency has prepared and published a notice of joint public hearing in the 21 San Bernardino County Sun Newspaper on September 18 and 25, 2006, regarding the 22 consideration and approval of Amendment No. 1 to the 2005 Agreement; and 23 WHEREAS, pursuant to Health and Safety Code Section 33433, the Agency may transfer 24 the Property to the Developer subject to the Mayor and Common Council ("Council") and the 25 Community Development Commission ("Commission") adopting a Resolution authorizing the 26 Agency to transfer the Property in light of the findings set forth herein; and 27 WHEREAS, the Agency has prepared a Summary Report that describes the salient points 28 of Amendment No. 1 and identifies the cost to the Agency of the disposition of the Property to the 1 P\Aeendas\Resolutions\Resollitl nsQG06\10.02.06 Telacu Amendment No I-Final MCC Reso doc I Developer for development of a single family unit for sale to a low and moderate-income eligible i 2 household: and 3 I WHEREAS, the Agency must find and determine that the environmental review of the 4 approval of the 2005 Agreement and Amendment No. 1 and the development activities 5 contemplated thereunder is a "categorically exempt project" under the California Environmental 6 Quality Act (CEQA), pursuant to § 15332, Class 32. No potentially adverse environmental effects 7 are anticipated to be associated with the development of the Project. NOW, THEREFORE IT IS HEREBY RESOLVED DETERMINED AND ORDERED 8 NO , 9 BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS 10 FOLLOWS: 11 Section 1. The Recitals of this Resolution are true and correct. 12 Section 2. On October 2, 2006, the Council conducted a full and fair joint public 13 hearing with the Commission and considered the written Agency Staff Report relating to 14 Amendment No. 1 to the 2005 Agreement and the testimony submitted relating to the disposition 15 and development of the Project by the Developer pursuant to the terms and conditions of the 2005 16 Agreement and Amendment No. 1. The minutes of the City Clerk for the October 2, 2006, joint 17 public hearing of the Council and the Commission shall include a record of all communication and 18 testimony submitted to the Council and the Commission at the joint public hearing by interested 19 persons relating to the Project and the approval of Amendment No. 1 to the 2005 Agreement. 20 Section 3. This Resolution is adopted in order to satisfy the provisions of Health and 21 Safety Code Section 33433 as those provisions relate to the disposition of the Property by the 22 Agency to the Developer on the terms and conditions set forth in the 2005 Agreement and 23 Amendment No. 1. 24 Section 4. The Council hereby finds and determines that the environmental review of 25 the approval of the 2005 Agreement and Amendment No. 1 and the development activities 26 contemplated thereunder is a "categorically exempt project" under CEQA, pursuant to § 15332, 27 Class 32. No potentially adverse environmental effects are anticipated to be associated with the 28 development of the Project. P\.Agendas\Resolutions\Resolutmns\2006`,10-02.06 Telacu Amendment No I-Final MCC Reso doc 1 Section 5. The Council hereby receives and approves the Summary Report and 2 Amendment No. 1 to the 2005 Agreement in the form as submitted at this joint public hearing. 3 Section 6. The Council hereby approves the disposition of the Property by the Agency 4 to the Developer on the terms set forth in the 2005 Agreement and Amendment No. 1. 5 Section 7. This Resolution shall take effect upon its adoption and execution in the 6 manner as required by the City Charter. 7 8 9 10 12 13 14 15 16 !! 17 18 19 20 21 22 23I 24 I i 25 26 27 28 P'Agendas,Reso luuons\Reso 1.uons'_006`10-0'_-)6 Telacu•-Xmendment No I-Final MCC Res.doc i 1 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO CONSENTING TO THE DISPOSITION OF 2 CERTAIN PROPERTY LOCATED AT 267 EAST 49TH STREET (APN: 0154- 3 126-25) BY THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") PURSUANT TO AMENDMENT NO. 1 TO THE 4 2005 40TH STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT 5 (TELACU 49TH STREET NEW HOMES PROJECT) BETWEEN THE AGENCY AND TELACU DEVELOPMENT, LLC ("DEVELOPER") — 40TH 6 STREET REDEVELOPMENT PROJECT AREA 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 8 Common Council of the City of San Bernardino at a meeting thereof, 9 10 held on the day of , 2006, by the following vote to wit: Council Members: Ayes Nays Abstain Absent 11 ESTRADA 12 BAXTER 13 VACANT 14 DERRY 1, KELLEY 16 JOHNSON 17 MC CAMMACK 18 19 20 Rachel G. Clark, City Clerk 21 The foregoing resolution is hereby approved this day of , 2006. 22 23 Patrick J. Morris, Mayor 24 City of San Bernardino 25 Approved as to Form: 26 By: 27 ,James F. Penman, City Attorney 28 4 P',AgendasUiesolutions,Resoluttoa,s',2006t 10.02.06 Telacu Amendment No 1.Final MCC Reso doc j 1 RESOLUTION NO. C(Upy mow+ 2 3 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AMENDMENT NO. 1 4 TO THE 2005 40fIl STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT 5 AGREEMENT (TELACU 49TH STREET NEW HOMES PROJECT) 6 ("AMENDMENT NO. I") BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND 7 TELACU DEVELOPMENT, LLC ("DEVELOPER"); MAKING CERTAIN FINDINGS THERETO AND AUTHORIZING THE EXECUTIVE 8 DIRECTOR OF THE AGENCY TO EXECUTE AMENDMENT NO. 1 — 40'f; STREET REDEVELOPMENT PROJECT AREA 9 10 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 11 public body, corporate and politic; and 12 WHEREAS, the Agency owns the property located at 267 East 491h Street (APN: 0154-126- 13 25 the "Property") in the 40th Street Redevelopment Project Area ("Project Area" ( P ) • P J ( ` J ); and 14 WHEREAS, the Agency acquired the Property using the Low and Moderate-Income 15 Housma Tax Increment Set-Aside Funds; and 16 WHEREAS, the Agency proposes to transfer the Property to TELACU Development, LLC, 17 a California corporation (the "Developer") in accordance with the terms and conditions of an 18 agreement entitled "2005 40th Street Redevelopment Project Area Single Family Residential 19 Disposition and Development Agreement and Amendment No. 1 (TELACU 491h Street New Home 20 Project)", (the "2005 Agreement"); and 21 22 WHEREAS. the Agency has prepared and published a notice of joint public hearing in The 23 San Bernardino County Sun Newspaper on September 18 and 25, 2006, regarding the 241 consideration and approval of Amendment No. 1 to the 2005 Agreement; and 25 WHEREAS, pursuant to Health and Safety Code Section 33433, the Agency may transfer 26 the Property to the Developer subject to the Mayor and Common Council ("Council") and the 0 27 Community Development Commission ("Commission") adopting a Resolution authorizing the 28 Agency to transfer the Property in light of the findings set forth herein; and P\AgendasJlesoiutmns\Resolutions\.006\10-0?-06 Telacu.Amendment No 1-Final CDC Reso d c - I WHEREAS, the Agency has prepared a Summary Report that describes the salient points 2 ` of Amendment No. 1 and identifies the cost to the Agency of the disposition of the Property to the I 3 Developer for development of a single family unit for sale to a low and moderate-income eligible 4 household; and 5 WHEREAS, pursuant to Health and Safety Code Section 33334.30), the Agency estimates 6 that more than fifty percent (50%) of the cost of producing the single family housing unit will be 7 expended from the Low and Moderate Housing Fund because of the increase in labor and material 8 costs of producing a new home by the Developer on the Property and it is necessary because the 9 Agency has made every effort to seek private financial assistance but was unable to finance the 10 housing unit at the level of affordability and quality. 11 WHEREAS, the Agency finds and determines that the environmental review of the 12 approval of the 2005 Agreement and Amendment No. 1 and the development activities 13 ( contemplated thereunder is a "categorically exempt project" under the California Environmental 14 Quality Act (CEQA), pursuant to § 15332, Class 32. No potentially adverse environmental effects 15 are anticipated to be associated with the development of the Project. 16 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY 17 OF SAN BERNARDINO DOES HEREBY RESOLVE,DETERMINE AND ORDER,AS FOLLOWS: 18 Section 1. The Recitals of this Resolution are true and correct. 19 Section 2. On October 2, 2006, the Commission conducted a frill and fair joint public 20 hearing with the Council and considered the written Agency Staff Report relating to Amendment 21 No. 1 to the 2005 Agreement and the testimony submitted relating to the disposition and 22 development of the Project by the Developer pursuant to the terms and conditions of the 2005 23 Agreement and its Amendment No. 1. The minutes of the Agency Secretary for the October 2, 24 2006, joint public hearing of the Commission and the Council shall include a record of all 25 communication and testimony submitted to the Commission and the Council at the joint public 26 hearing by interested persons relating to the Project and the approval of Amendment No. 1 to the 27 2005 Agreement. 28 2 P\Agendas\Resolutions\Resolutions'1006%10-02-06 Telatu.Amendment No I-Final CDC Reso doc 1 Section 3. This Resolution is adopted in order to satisfy the provisions of Health and 2 Safety Code Section 33433 as those pro%,isions relate to the disposition of the Property by the i 3 Agency to the Developer on the terms and conditions set forth in the 2005 Agreement and 4 Amendment No. 1. The Commission hereby finds and determines as follows: 5 (1) The Summary Report contains the information described in Health and Safety Code 6 Section 33433(a)(2)(B); and pursuant to Health and Safety Code Section 7 33334.30), the Agency estimates that more than fifty percent (50%) of the cost of 8 producing the single family housing unit will be expended in the Low and Moderate 9 Income Housing Fund and it is necessary because the Agency has made every effort 10 to seek private financial assistance but was unable to finance the housing unit at the 11 level of affordability and quality required; 12 (ii) The disposition and development of the Property by the Developer in accordance 13 with the 2005 Agreement and Amendment No. 1 is consistent with the affordable 14 single family housing supply, preservation, and expansion programs of the Agency's 15 Housing Implementation Plan; 16 (iii) The terms and.conditions of the 2005 Agreement and Amendment No. 1 contain 17 assurances that the Property will be developed by the Developer as "New Homes", 18 as this term is defined in the 2005 Agreement; 19 (iv) The disposition of the Property to the Developer on the terms set forth in the 2005 20 Agreement and Amendment No. 1 shall assist in the elimination of conditions of 21 blight on the Property in the Project Area. 22 Section 4. The Commission hereby find and determine that the environmental review of 23 the approval of the 2005 Agreement and Amendment No. 1 'and the development activities 24 contemplated thereunder is a '`categorically exempt project" under CEQA, pursuant to § 15332, 25 Class 32. No potentially adverse environmental effects are anticipated to be associated with the 26 development of the Project. q; 27 Section 5. The Commission hereby receives and approves Amendment No. 1 to the 28 2005 Agreement in the form as submitted at this joint public hearing. The Commission hereby P\Agendas\Resolutions\Resolutions\2006\10-02-06 Telacu Amendment\o I-Final CDC Reso doc I further finds and determines, that the purchase price of $1.00 payable by the Developer to the 2 Agency for the Property to be considered as an Affordable Lot under the 2005 Agreement on "vhich 3 I the New Home shall be constructed and shall be reserved for use and occupancy by persons and 4 ( households of low and moderate income is hereby determined to be derived from the Low and 5 Moderate-Income Housing Set-Aside Funds of the Agency and from no other source. of funds of 6 the Agency. The Executive Director of the Agency is hereby further authorized and directed to 7 modify the Schedule of Performance as attached to the 2005 Agreement as Exhibit "C" and to 8 execute said modified Schedule of Performance on behalf of the Agency to include the Property as 9 added by Amendment No. I and to thus, coordinate the schedules for the close of escrow, site 10 preparation and commencement of construction of the New Homes to recognize the extended 11 period of time for performance by the inclusion of the Property within the 2005 Agreement. 12 Section 6. The Commission hereby approves the disposition of the Property by the 13 Agency to the Developer on the terms set forth in the 2005 Agreement and Amendment No. 1 and . .. 14 hereby authorizes the Executive Director to execute Amendment No. 1 to the 2005 Agreement on 15 behalf of the Agency, to make minor corrections, additions and clarifications to Amendment No. 1, 16 provided such changes are not substantive in nature, do not increase the monetary impact to the 17 Agency and the changes are approved by the Agency Counsel 18 Section 7. This Resolution shall take effect upon its adoption and execution. 19 20 21 ill 22 23 24 25 26 27 28 4 P\Agendas\Resolutions\Resolutions\2006110-02-06 Telacu Amendment No I-Final CDC Reso doc - I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AMENDMENT NO. 1 2 TO THE 2005 40TH STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT 3 AGREEMENT (TELACU 49TH STREET NEW HOMES PROJECT) 4 ("AMENDMENT NO. 1") BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") AND 5 TELACU DEVELOPMENT, LLC ("DEVELOPER"); MAKING CERTAIN FINDINGS THERETO AND AUTHORIZING THE EXECUTIVE 6 DIRECTOR OF THE AGENCY TO EXECUTE AMENDMENT NO. I - 40TH 7 STREET REDEVELOPMENT PROJECT AREA 8 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 9 Development Commission of the City of San Bernardino at a meeting 10 thereof, held on the day of , 2006, by the following vote to wit: 11 Commission Members: Aves Nays Abstain Absent 12 ESTRADA 13 BAXTER 14 VACANT 15 DERRY 16 KELLEY � 17 JOHNSON 18 MC CAMMACK 19 20 Secretary 21 The foregoing resolution is hereby approved this day of 2006. 22 23 24 Patrick J. Morris, Chairperson Community Development Commission 25 of the City of San Bernardino 26 Approved as to Form: 27 By': ` \ 1 28 Agency Coujel 5 P\Agendas\Resolutions\Resolunons�2006\10.02-06 Telacu Amendment No I-Final CDC Reso doc ATMENDMENT NO. 1 TO THE 2005 40`t' STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT THIS AMENDMENT NO. 1 TO THE 2005 40TH STREET REDEVELOPMENT PRO.IECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT (this "Amendment No. 1") is- dated as of October 2, 2006, by and between TELACU Development, LLC, a California limited liability company (the "Developer"), and the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the `Agency"). and is entered into in light of the facts set forth in the following Recital paragraphs: -- RECITALS -- A. The Developer and the Agency have previously entered into an agreement entitled 112005 40th Street Redevelopment Project Area Single Family Residential Disposition and Development Agreement", dated as of November 21, 2005 (the "2005 Agreement"). B. As of the effective date of this Amendment No. 1, the Developer has agreed to acquire eleven (11) of the "Agency Lots", as this term is defined in the Recital 1 of the 2005 Agreement and the Developer intends to commence the mass grading and the commencement of the construction at such time as title to the Property identified in this Amendment No. 1 has been transferred from the Agency to the Developer. C. The Developer and the Agency believe it is appropriate to consider and approve this Amendment No. 1 in order to authorize the Agency to convey the Property located at 267 East 49`h Street (APN: 0154-126-25) (the "Property') in the 401h Street Redevelopment Project Area ("Project Area"), as more particularly described in Exhibit "A", to the Developer as an Affordable Lot for $1.00 for development of one (1) single-family affordable home for a buyer earning not more than one hundred twenty percent (120%) of the county median income. This would obligate the Developer to develop a total of six (6) affordable single-family homes and six (6) market rate single-family homes pursuant to the terms of the 2005 Agreement and this Amendment No. 1. The Developer will be required to secure additional financing to construct this additional affordable single-family home and obtain all City development approvals. D. Pursuant to Health & Safety Code Section 33334.30) and in order to comply with the requirements thereof, the governing body of the Agency has made certain findings and determinations based upon substantial evidence as presented to said governing body as referenced in the approving Resolution for this Amendment No. 1 stating to the effect that as the result of the increases in housing prices due to the escalating costs of labor and materials within the City of San Bernardino since the date of the 2005 Agreement, the Agency has incurred and paid expenditures from the Low and Moderate Income Housing Fund of the Agency that exceed fifty percent (50%) of the cost of producing the New Homes to be constructed by the Developer upon the one (1) additional Agency Lot, under this Amendment No. 1. 1 P\AcendwAgenda Attachments\Agrmts-Amend 2006\I0-02.06 Telacu-Final Amendment No I to the 2005 DDA doc NOW, THEREFORE, THE DEVELOPER AND THE AGENCY DO HEREBY AGREE AS FOLLOWS: Section 1. (a) Unless the context of the usage of a term or phrase in this Amendment No. 1 may otherwise require, the meaning of words and phrases in this Amendment No. 1, which are indicated by an initially capitalized letter, shall be the same as set forth in the 2005 Agreement. (b) The Recitals of this Amendment No. 1 are true and correct. (c) The text of the 2005 Agreement is hereby incorporated into this Amendment No.l by this reference. Section 2. This Amendment No. 1 sets forth the terms and conditions of an amendment to the text of the 2005 Agreement. This Amendment No. 1 integrates all of the terms and conditions mentioned herein and supercedes all negotiations, discussions and understandings between the parties with respect to the Project and the 2005 Agreement as hereby modified by this Amendment No. 1, including all items of assistance, which the Agency shall provide to the Developer under the 2005 Agreement as modified by this Amendment No. 1. Section 3. The Effective Date of the 2005 Agreement occurred on November 21, 2005. The parties recognize that the joint public hearing required pursuant to Section 1.05 of the 2005 Agreement has been duly conducted by the Agency and such provisions of said Section shall no longer be a condition precedent to the transfer of any of the Agency Lots to the Developer. Section 4. The text of the following specified Sections of the 2005 Agreement are hereby amended to include the Property as an additional Agency Lot within the scope of the 2005 Agreement as amended pursuant to this Amendment No. 1. Recital 1. of the 2005 Agreement is amended to include the Property as an identified Agency Lot for all purposes of the 2005 Agreement by the addition of the following text: 267 East 491h Street (Vacant Lot), APN: 0154-126-25" The definition of an "Affordable Lot" in Section 1.01(b) is hereby amended to add the Property as described in this Amendment No. 1 to the definition of an "Affordable Lot" as follows: "(vi) Agency Lot/Affordable Lot, APN: 0154-126-25;" The definition of "Affordable Lot Purchase Price" is hereby amended to change the number "eleven (11)" in the third line to "twelve (12)", and the description of the Property as an Affordable Lot is added to read as follows: "(x) Affordable Lot: APN: 0154-126-25 $1.00." 2 P"Agendas\Agenda Attachments\Agrmts-Amend 2006110-02-06 Telacu•Final Amendment No Ito the 2005 DDA doc All other conforming changes to reflect the additional Affordable Lot as added pursuant to this Amendment No. 1, whether as to the number of Affordable Lots or the number of total Agency Lots included within the 2005 Agreement shall be deemed to be made and are hereby authorized to be made to conform to the 2005 Agreement with this Amendment No. 1. Section 5. Except as modified or amended by this Amendment No. 1, all of the provisions of the 2005 Agreement shall remain in full force and effect following the effective date of this Amendment No. 1. 3 P'Agendas\.Agenda.Attachments\Aennts-Amend 2006.10-02-06 Telacu-Final Amendment No I to the 2005 DDA doc IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment No. 1 to the 2005 Agreement as of the dates set forth below. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Date: By: Maggie Pacheco, Executive Director Approved as to Form and Legal Content: '-� J ( j-&4 Agency ounsel DEVELOPER TELACU Development, LLC, a California limited liability company Date: Bv: Date: BN: 4 P•lAgendaslAgenda Attachments\Agrmts-Amend 2006\I0-02-06 Telacu-Final Amendment No Ito the 2005 DDA doc Order No. 140-749192-66 EXHIBIT "A" THE LAND RFFER.RED TO IN THIS REPORT IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN BERNARDINO AND IS DESCRIBED AS FOLLOWS: LOT 5 BLOCK 19 OF TRACT 1834, IN THE CITY OF SAN BERNARDINO,COUNTY OF SAN bERN.ARDINO,STATE OF CALIFORNIA,AS PE MAP RECORDED IN BOOK 26 PAGE 52 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. AMENDMENT NO. 1 TO THE 2005 40tH STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT THIS AMENDMENT NO. 1 TO THE 2005 40TH STREET REDEVELOPMENT PROJECT AREA SINGLE FAMILY RESIDENTIAL DISPOSITION AND DEVELOPMENT AGREEMENT (this "Amendment No. I") is dated as of October 2, 2006, by and between TELACU Development, LLC, a California limited liability company (the "Developer"), and the Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic (the "Agency"), and is entered into in light of the facts set forth in the following Recital paragraphs: -- RECITALS -- A. The Developer and the Agency have previously entered into an agreement entitled "2005 40t" Street Redevelopment Project Area Single Family Residential Disposition and Development Agreement", dated as of November 21, 2005 (the "2005 Agreement"). B. As of the effective date of this Amendment No. 1, the Developer has agreed to acquire eleven (11) of the "Agency Lots", as this term is defined in the Recital 1 of the 2005 Agreement and the Developer intends to commence the mass grading and the commencement of the construction at such time as title to the Property identified in this Amendment No. 1 has been transferred from the Agency to the Developer. C. The Developer and the Agency believe it is appropriate to consider and approve this Amendment No. 1 in order to authorize the Agency to convey the Property located at 267 East 49t" Street (APN: 0154-126-25) (the "Property') in the 40°i Street Redevelopment Project Area ("Project Area"), as more particularly described in Exhibit "A", to the Developer as an Affordable Lot for $1.00 for development of one (1) single-family affordable home for a buyer earning not more than one hundred twenty percent (120%) of the county median income. This would obligate the Developer to develop a total of six (6) affordable single-family homes and six (6) market rate single-family homes pursuant to the terms of the 2005 Agreement and this Amendment No. 1. The Developer will be required to secure additional financing to construct this additional affordable single-family home and obtain all City development approvals. D. Pursuant to Health & Safety Code Section 33334.3(j) and in order to comply with the requirements thereof, the governing body of the Agency has made certain findings and determinations based upon substantial evidence as presented to said governing body as referenced in the approving Resolution for this Amendment No. 1 stating to the effect that as the result of the increases in housing prices due to the escalating costs of labor and materials within the City of San Bernardino since the date of the 2005 Agreement, the Agency has incurred and paid expenditures from the Low and Moderate Income Housing Fund of the Agency that exceed fifty percent (50%) of the cost of producing the New Homes to be constructed by the Developer upon the one (1) additional Agency Lot, under this Amendment No. 1. 1 P Agendas\Agenda Attachments\Agnnts-Amend 2006\10-02-06 Telacu-Final Amendment No I to the 2005 DDA doc NO«I, THEREFORE, THE DEVELOPER AND THE AGENCY DO HEREBY AGREE Mrr+' AS FOLLOWS: Section 1. (a) Unless the context of the usage of a term or phrase in this Amendment No. 1 may otherwise require, the meaning of words and phrases in this Amendment No. 1, which are indicated by an initially capitalized letter, shall be the same as set forth in the 2005 Agreement. (b) The Recitals of this Amendment No. 1 are true and correct. (c) The text of the 2005 Agreement is hereby incorporated into this Amendment No.l by this reference. Section 2. This Amendment No. l sets forth the terms and conditions of an amendment to the text of the 2005 Agreement. This Amendment No. 1 integrates all of the terms and conditions mentioned herein and supercedes all negotiations, discussions and understandings between the parties with respect to the Project and the 2005 Agreement as hereby modified by this Amendment No. 1, including all items of assistance, which the Agency shall provide to the Developer under the 2005 Agreement as modified by this Amendment No. 1. Section 3. The Effective Date of the 2005 Agreement occurred on November 21, 2005. The parties recognize that the joint public hearing required pursuant to Section 1.05 of the - 2005 Agreement has been duly conducted by the Agency and such provisions of said Section shall no longer be a condition precedent to the transfer of any of the Agency Lots to the Developer. Section 4. The test of the following specified Sections of the 2005 Agreement are hereby amended to include the Property as an additional Agency Lot within the scope of the 2005 Agreement as amended pursuant to this Amendment No. 1. Recital 1. of the 2005 Agreement is amended to include the Property as an identified Agency Lot for all purposes of the 2005 Agreement by the addition of the following text: "267 East 49`h Street (Vacant Lot), APN: 0154-126-25" The definition of an "Affordable Lot" in Section 1.01(b) is hereby amended to add the Property as described in this Amendment No. 1 to the definition of an "Affordable Lot"' as follows: "(vi) Agency Lot/Affordable Lot, APN: 0154-126-25," The definition of "Affordable Lot Purchase Price" is hereby amended to change the number "eleven (11)" in the third line to "twelve (12)", and the description of the Property as an Affordable Lot is added to read as follows: "(x) Affordable Lot: APN: 0154-126-25 $1.00." 2 l ",Aeendas\Agenda Attachments\Awmts-Amend 200600-02-06 Telacu-Final Amendment No I to the 2005 DDA.doc I All other conforming changes to reflect the additional Affordable Lot as added pursuant to this Amendment No. 1, whether as to the number of Affordable Lots or the number of total Agency Lots included within the 2005 Agreement shall be deemed to be made and are hereby authorized to be made to conform to the 2005 Agreement with this Amendment No. 1. Section 5. Except as modified or amended by this Amendment No. 1, all of the provisions of the 2005 Agreement shall remain in full force and effect following the effective date of this Amendment No. 1. 3 P tAgendas\-Agenda Attachments'Agnnts-Amend 2006`,10.02-06 Telacu-Final Amendment No I to the 2005 DDA doc IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment No. 1 to the 2005 Agreement as of the dates set forth below. AGENCY Redevelopment Agency of the City of San Bernardino, a public body, corporate and politic Date: By: Maggie Pacheco, Executive Director Approved as to Form and Legal Content: Agency Counsel DEVELOPER TELACU Development, LLC, a California limited liability company Date: By: Date: By: 4 P IAeendas\.Agenda Attachwents'Agrntts-Amend 100600-02-06 Telacii-Final Amendment No I to the 2005 DDA doc Order No. 140-749192-66 EXHIBIT "A" THE LAND REFERRED 10 IN THIS REPORT IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN BERNARDINO AND IS DESCRIBED AS FOLLOWS: LOT 5 BLOCK 19 OF TRACT 1834, IN T11E CITY OF SAN BERNARDINO,COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PE MAP RECORDED IN BOOK 26 PAGE 52 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.