HomeMy WebLinkAboutR39-Economic Development Agency
CITY OF SAN BERNARDINO
ECONOMIC DEVELOPMENT AGENCY
DATE:
March 26, 2007
SUBJECT: Single Family Inclusionary Housing Owner
Participation Agreement witb GFC Enterprises,
LLC, regarding Lynwood Housing Development
(IVDA Redevelopment Project Area)
FROM: Maggie Pacheco
Executive Director
SvnoDsis of Previous Commission/Council/Committee Actionls):
On March 8, 2007, Redevelopment Committce Members Estrada, Jolmson and Baxter unanimously voted to recommend that
the Community Development Commission consider this action for approval.
Recommended Motionls):
{~i",
lCommunitv DeveloDment Commission)
Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing
the Executive Director of the Redevelopment Agency of the City of San Bernardino ("Agency") to execute (I) a
Redevelopment Cooperation Agreement by and between the Agency and Inland Valley Development Agency
("IVDA") and (2) a Single Family Inclusionary Housing Owner Participation Agreement ("OPA") by and between
the Agency and GFC Enterprises, LLC, for the development of Lynwood Housing Development (IVDA
Redevelopment Project Area)
Contact Person(s):
Maggie Pacheco
Phone:
(909) 663-1044
Project Area(s):
IVDA Redevelopment Project Area
Ward(s):
7
Supporting Data Attached:
It:! Staff Report It:! Resolution(s) It! Agreement(s)/Contract(s) It! Map(s) 0 Letter(s)
FUNDING REQUIREMENTS:
Amount: $ 270.000
Source:
RDA Low/Mod Housing Funds
SIGNATURE:
OJ}/] f}~''-''
Maggie Pacheco, Executive Director
2006-2007 RDA Budget
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Commission/Council Notes:
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PlAaendulCornn DevCommission\COC 2007\()4..0::!-Oi GFC Entel'pl'iscs. LLC . OPA SRdoc
COMMISSION MEETING AGENDA.
Meeting Date: 5-7-07
Agenda Item Number: r:<. 39
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
SINGLE FAMILY INCLUSIONARY HOUSING OWNER PARTICIPATION AGREEMENT
WITH GFC ENTERPRISES, LLC, REGARDING L YNWOOD HOUSING DEVELOPMENT
(IVDA REDEVELOPMENT PROJECT AREA)
BACKGROUND:
GFR Enterprises, Inc., is a local developer (the "Developer") with a main office located at 343 North
Second Street, Upland, California, and has over 30 years of experience in real estate development
comprising in excess of 7,000 residential properties built and sold during that time. The Developer
recently completed the Paraiso Estates development of 54 elegant and luxury single-family homes off
of Belmont Avenue, in the Verdemont Area of the City of San Bernardino (the "City"). The
Developer has been developing up-scale and luxury homes in the City for decades and 3 years ago, the
Developer, Century Crowell and the Redevelopment Agency of the City of San Bernardino (the
"Agency") embarked upon the development of approximately 30 acres of land previously owned by
the Agency in order to pave the way for development of a new 107 single-family home subdivision
and 5-acre park along the area of Palm and Irvington Avenues within the Verdemont Area.
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The Developer (dba GFC Enterprises, LLC) owns 7.7 acres of vacant land (APN: 01191-231-40 and
41) located on the east side of Lynwood Way between Byron and Amanda Streets (See Attached Site
Plan), in the Inland Valley Development Agency (IVDA) Redevelopment Project Area ("Project
Area"). On September 19, 2006, the Planning Commission approved Tentative Tract Map No. 17793
(Subdivision No. 05-48), Variance No. 06-02, and Development Permit Type 3 No. 06-03) to develop
18 single-family detached residential homes (the "Project"). In compliance with the California
Environmental Quality Act ("CEQA"), the Planning Commission also made an environmental finding
and adopted a mitigated negative declaration for the Project.
The Developer is proposing 3 models with 2 different exterior styles and exterior treatments. Each
model will have 4 bedrooms, 3 bathrooms, 2-car garage, porch, stucco siding and concrete-tile roof,
ranging in size from 2,399 to 3,195 square feet. Architectural treatments include cultured stone or rock
on front elevations, alternating hip-style and gable roofs, multi"planed roofs, porches and various
window styles. The Project development is estimated to cost $7.5 million and the homes are proposed
to be sold at a price ranging from $389,990 to $439,990. Construction will commence within 30 days
from approval of the proposed Single Family Inclusionary Housing Owner Participation Agreement
("OPA") and is to be completed within 12 months.
CURRENT ISSUE:
On February 3, 2003, the Community Development Commission of the City of San Bernardino
("Commission") agreed to assume the responsibility for the IVDA in implementing, administering and
managing their inclusionary and replacement housing requirements as required per Section 33413 of
the Califomia Redevelopment Law (CRL). Specifically, Section 33413, requires redevelopment
agencies to ensure that at least 15% of all new and substantially rehabilitated dwelling units developed
P IAlendas\Comm [lev Commiuion\CDC 2007\04.02-07 GFC Enterprises.LLC _ OPA SR doc
COMMISSION MEETING AGENDA
Meeting Date: 04101/1007
Agenda Item Number: R3:J...
Economic Development Agency Staff Report
GFC Enterprises, LLC - OPA
Page 2
within a project area by public or private entities or persons other than the Agency will be available at
affordable housing cost to, and occupied by, persons and families of low- or moderate-income, and not
less than 40% of said units shall be made available to very low-income households. A moderate-
income household is considered to be a household that earns less than 120% of the area median income
for the County of San Bernardino ("County"). The County's income ranges from $48,300 for a family
size of I and $91,100 for a family size of 8. These income limits are modified annually by HUD and
State HCD.
Furthermore, on January 22, 2007, the Commission approved the Agency Housing Implementation
Plan ("Plan") which incorporated the CRL requirements related to NDA's responsibility noted above
and the number of units that needed to be produced within the NDA Project Area during the 10-year
term of the Plan. In addition, IVDA adopted a policy allowing member jurisdictions to undertake
redevelopment activities within the Project Area pursuant to a generic Cooperation Agreement adopted
by the IVDA Board.
The Developer's Project is located within the Project Area, and as such the Inclusionary Housing
Requirements apply to its proposed Project, and Staff and the Developer have agreed to the following
points, which have been incorporated into an OPA:
. Developer will construct the 18 units approved by the Planning Commission and will set
aside and sell 3 of the units to households earning up to 120% of the area median income at
affordable housing costs; and
. Agency will reserve and allocate the sum of not more than $270,000 from the Agency's
Housing Fund to assist 3 eligible homebuyers with down payment assistance
(approximately $90,000 per buyer) and in return, the Agency will receive a 45-year
affordable aI).d maintenance covenant (CC&R's) on each of the properties. The CC&R is
required by CRL on all newly constructed or substantially rehabilitated housing units; and
. Developer shall provide any additional downpayment assistance or obtain affordable
primary mortgage financing for the new eligible homebuyers to qualify and purchase the
affordable new homes as necessary to ensure that the costs to the 3 eligible homebuyers do
not exceed the affordable housing costs; and
. Alternatively, the Developer may elect to provide the 3 affordable units to eligible
homebuyers by I) building up to 3 new housing units on in-fill lots in other locations within
the Project Area and/or 2) acquire vacant single-family homes and substantially rehabilitate
and sell them to eligible homebuyers. The Developer will initially focus its attempts to buy
single-family homes within the Project Area, but more specifically in the area referred to as
the "Operation Phoenix Area" located generally north of Baseline Road, west of Waterman
Avenue east of Sierra Way and south of 16th Street; and
"\A&endu\COrml [)CV ComminionlCDC 2007\04-0Z-07 OFC EnIerpUn. LLC. OPA SRdoc::
COMMISSION MEETING AGENDA
Meeting Date: 04/0212007
Agenda Item Number: R.J;J..
Economic Development Agency Staff Report
GFC Enterprises, LLC - OPA
Page 3 .
. The Agency and IVDA will enter into a Redevelopment Cooperation Agreement to receive
the NDA's share of the tax increment generated from the Project to assist the Agency with
its financial obligations under the prop~sed OP A.
ENVIRONMENTAL IMPACT:
On September 19, 2006, the Planning Commission approved a Mitigated Negative Declaration for the
Project in compliance with the CEQA and its requirements under Section 21081.6 and adopted a
monitoring and or reporting program designated to ensure compliance during the Project
implementation. The Agency will rely on these environmental findings in order to consider approval of
the proposed OP A.
FISCAL IMPACT:
$270,000 will be set aside from the Agency's 2006-2007 Housing Fund for this Project.
RECOMMENDATION:
That the Community Development Commission adopt the attached Resolution.
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Maggie Pacheco, Executive Director
P\Alendas\Conwn On CorrmiuionlCOC 2007\04-0:-07 GFC Emapriscs. LtC. or.... SR.,doc
COMMISSION MEETING AGENDA
Meeting Date: 0410211007
Agenda Item Number: ~
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. RESOLUTION NO.
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE (1) A
REDEVELOPMENT COOPERATION AGREEMENT BY AND BETWEEN
THE AGENCY AND INLAND VALLEY DEVELOPMENT AGENCY
("IVDA") AND (2) A SINGLE FAMILY INCLUSIONARY HOUSING
OWNER PARTICIPATION AGREEMENT ("OPA") BY AND BETWEEN
THE AGENCY AND GFC ENTERPRISES, LLC FOR THE
DEVELOPMENT OF L YNWOOD HOUSING DEVELOPMENT (IVDA
REDEVELOPMENT PROJECT AREA)
WHEREAS, the Developer owns 7.7 acres of vacant land (APN: 01191-231-40 and 41)
located on the east side of Lynwood Way between Byron and Amanda Streets ( See Site Plan), in
11
the Inland Valley Development Agency (IVDA) Redevelopment Project Area ("Project Area");
12
13
14
and
WHEREAS, on September 19, 2006, the Planning Commission approved Tentative Tract
Map No. 17793 (Subdivision No. 05-48), Variance No. 06-02, and Development Permit Type 3
15
No. 06-03) to develop 18 single-family detached residential homes (the "Project") consisting of 3
16
models with 2 different exterior styles and exterior treatments; and
17
18
WHEREAS, on February 3, 2003, the Community Development Commission of the City 0
San Bernardino ("Commission") agreed to assume the responsibility for implementing,
19
administering and managing the IVDA Project Area inclusionary and replacement housing
20
requirements as required per Section 33413 of the California Redevelopment Law ("CRL");
21
specifically, Section 33413, requires redevelopment agencies to ensure that at least 15% of all new
22
and substantially rehabilitated dwelling units developed within a project area by public or private
23
entities or persons other than the Agency be made available at affordable housing cost to, and
24
occupied by, persons and families of low- or moderate-income, and not less than 40% of said units
25
shall be made available to very low-income households; and
26
27
WHEREAS, a moderate-income household is considered to be a household that eams less
than 120% of the area median income for the County of San Bernardino ("County"), and the
28
County's income ranges from $48,300 for a family size of I and $91,100 for a family size of 8
I.
P\Alcnd;u\RcsoI1,lIions\Rnolulions~OO7\04.0Z.(l7 GFC Entcrprise5 CDC Rnodoc
1 which income limits are modified annually by HUD and State HCD; and
2 WHEREAS, on October 8, 2003, the IVDA Board adopted a policy allowing member
3 jurisdictions to undertake redevelopment activities within the Project Area pursuant to a generic
4 Cooperation Agreement adopted through Resolution 2003-11; and
5 WHEREAS, the Developer's Project is located within the Project Area, and as such, the
6 Inclusionary Housing Requirements apply and the Developer will construct 18 units and will set
7 aside and sell 3 of the units to households earning up to 120% of the area median income or
8 alternatively as permitted under the Owner Participation Agreement ("OP A"); and
9 WHEREAS, the Agency will reserve and allocate the sum of $270,000 from the Agency's
10 Housing Fund to assist 3 eligible homebuyers with down payment assistance and in return, the
11 Agency will receive a 45-year affordable and maintenance covenant (CC&R's) on the each of the 3
12 properties; and
13 WHEREAS, the Developer shall provide additional downpayment assistance or obtain
, 14 affordable primary mortgage financing for new homebuyers to qualify and purchase the new homes;
15 and
16 WHEREAS, the Developer may provide additional downpayment assistance funds to the
17 Agency to assist eligible homebuyers or reduce the sales prices of affordable new homes to eligible
18 low and moderate income households; and
19 WHEREAS, the Agency and IVDA will enter into a Redevelopment Cooperation
20 Agreement to receive the IVDA's share of the tax increment generated from the Project to assist the
21 Agency with its financial obligations under the OP A; and
22 WHEREAS, on January 22, 2007, the Commission approved the Agency Housing
23 Implementation Plan (the "Plan") which incorporated the CRL requirements related to IVDA's
24 responsibility noted above and the number of units that needed to be produced within the IVDA
25 Project Area during the lO-year term of the Plan; and
26 WHEREAS, on September 19, 2006, the Planning Commission approved a Mitigated
27 Negative Declaration for the Project in compliance with the California Environmental QualityAct
28 ("CEQA") and its requirements under Section 21081.6 and adopted a monitoring and or reporting
2
P \A1C1ldas\Re50lulionsIResolulionsIJOO1l04-02-07 GFC Enterprises CDC RdO doc
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1 program designated to ensure compliance during the Project implementation, and the Agency will
2 rely on these environmental findings in order to consider approval of the OPA; and
3 WHEREAS, it is appropriate for the Commission to take action with respect to the OP A
4 and the Cooperation Agreement.
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY
OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMlNE AND ORDER, AS FOLLOWS:
Section 1. The Commission hereby approves (I) the Redevelopment Cooperation
Agreement by and between the Agency and the IVDA and (2) the OPA by and between the Agency
and the Developer in the form as presented at the meeting of the Commission at which this
Resolution is adopted, and the Commission further authorizes the Executive Director of the Agency
to execute said agreements and to take all actions set forth in the agreements and make such
technical and conforming changes as may be approved by the Agency Counsel.
Section 2. The Commission hereby finds and relies on the September 19, 2006,
Planning Commission approved Mitigated Negative Declaration for approval of the Project in
compliance with CEQA and its requirements under Section 2108\.6, and the Notice of
Determination will be prepared and filed with the County Clerk within 5 days from the date of the
action of the Commission to approve this Resolution.
Section 3. The Resolution shall become effective immediately upon its adoption.
19 III
20 III
21 1/1
22 III
23 III
24 /II
25 III
26 III
27 II/
28 III
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING
THE EXECUTIVE DIRECTOR OF THE REDEVELOPMENT AGENCY OF
THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE (1) A
REDEVELOPMENT COOPERATION AGREEMENT BY AND BETWEEN
THE AGENCY AND INLAND VALLEY DEVELOPMENT AGENCY
("IVDA") AND (2) A SINGLE FAMILY INCLUSIONARY HOUSING
OWNER PARTICIPATION AGREEMENT ("OPA") BY AND BETWEEN
THE AGENCY AND GFC ENTERPRISES, LLC, FOR THE
DEVELOPMENT OF L YNWOOD HOUSING DEVELOPMENT (IVDA
REDEVELOPMENT PROJECT AREA)
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community
9 Development Commission of the City of San Bernardino at a
10 thereof, held on the day of
11 Commission Members: Aves
12 ESTRADA
13 BAXTER
14 BRINKER
15 DERRY
16 KELLEY
17 JOHNSON
18 MC CAMMACK
19
20
21
22
23
24
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meeting
,2007, by the following vote to wit:
Navs
Abstain
Absent
Secretary
The foregoing Resolution is hereby approved this
,2007.
day of
Patrick 1. Morris, Chairperson
Community Development Commission
of the City of San Bernardino
26 Approved as tO~Form.
27 By: (~_~
28 Agency unsel
4
P \AimdasI.ResolulionsIResolulions\JOO7\04.02.o7 GFC Enlerprises CD(' Reso doc