HomeMy WebLinkAboutR42-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco, Deputy Director/Director
of Housing & Community Development
SUBJECT:
SAN BERNARDINO MOBILE HOME
PARK CORPORATION AGREEMENT
("TROPICANA & ORANGEWOOD
MOBILE HOME PARKS")
DATE:
July 3, 2002
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Svnopsis ofPrevions Commission/Council/Committee Action(s):
On June 6, 2002, the Redevelopment Committee recommended that the Community Development Commission approve
Amendment No, I to the San Bernardino Mobile Home Park Corporation Agreement dated January 8, 2001.
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MOTION:
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
SAN BERNARDINO APPROVING AND AUTHORIZING THE AGENCY EXECUTIVE
DIRECTOR, OR HlS/HER DESIGNEE, TO EXECUTE AMENDMENT NO, I TO THE 2001
ACQUISITION, WORKING CAPITAL AND HOMEBUYER GRANT ASSISTANCE LOAN
AGREEMENT ("LOAN AGREEMENT') BY AND BETWEEN THE REDEVELOPMENT
AGENCY AND THE SAN BERNARDINO MOBILE HOME PARK CORPORATION
DATED JANUARY 8, 2001.
Contact Person(s): Gary Van OsdellMaggie Pacheco
Project Area(s) N/A
Phone:
Ward(s):
(909) 663-1044
2,3, & 7
Supporting Data Attached: 0 Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 Reports
FUNDING REQUIREMENTS Amount: $
o
Source:
N/A
SIGNATURE:
'~ B.".A_.,
~l' xecutivef:~
Ma gie Pacheco, Deputy Director/Director
Housing & Community Development
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MP:sj6-13-02 Mobile Home Park
COMMISSION MEETING AGENDA
Meeting Date: 07/15/02
Agenda Item Number: 1(4 J.-..
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
San Bernardino Mobile Home Park Corporation Agreement-Amendment No.1
BACKGROUND:
In January 200 I, the Community Development Commission authorized execution of a housing loan
agreement (the "Loan Agreement") in the amount of $550,000 between the Redevelopment Agency
and the San Bernardino Mobile Home Park Corporation (now called California Mobile Home Park
Corporation) (the "Corporation"). The $550,000 loan was a subordinate loan, secured by a second deed
of trust and promissory note repayable with interest to the Agency, which was to be used by the
Corporation (I) to provide $350,000 in operations working capital, and (2) provide $200,000 as down
payment assistance to prospective income qualified homebuyers with down payment grants ("Homebuyer
Grants") as part of their purchase of mobile homes within seven (7) of the eight (8) mobile home parks
owned by the Corporation (Sequoia, Orangewood, Hillside, Rancho Meridian, Glen Aire, 9th Street,
Pacific Palms and Orangewood Estates).
CURRENT ISSUE:
During the past year, the Corporation has been working diligently in upgrading and renovating Tropicana
and Orangewood Mobile Home Parks. Tropicana requires the most extensive renovation before the park
can realize full occupancy. Currently the park has a 51 % occupancy rate. Improvements that have been
completed in Tropicana include, but are not limited to: demolition of 75 spaces, (rehabilitation takes place
as each home is placed on that space); removal and relocation of 2 mobile homes to allow for the
construction of a basketball court; which included the acquisition of a nearby building which was
demolished to allow for construction of a new clubhouse. Rehabilitation items that remain to be
completed are: construction of a full basketball court, construction of a new clubhouse and laundry
facility, installation of landscaping and electric entrance gates, entry streets and construction of a new
pool. The Corporation will complete the remaining improvements with their own resources and
completion of the improvements should occur by December 2002.
In addition, the Corporation has completed the following improvements at the Orangewood Mobile Home
Park: relocation of 13 homes that were encroaching on railroad property; construction of clubhouse
parking spaces, office and maintenance storage; renovation of existing clubhouse, demolition and
reconfiguration of 38 spaces (rehabilitation work will be completed as each home is placed in the park).
Rehabilitation items that will be completed by August 2002 include: construction of a new basketball
court to include fencing and lighting; installation of new playground equipment; remodeling of a laundry
facility and construction of a car wash facility.
The Corporation is committed to insuring that the remaining improvements to both mobile home parks
will be completed in the timeframes noted above. Moreover, as a result of the refinances recently
completed by the Corporation for six (6) of the mobile home parks, the Corporation now has the financial
wherewithal to complete the remaining improvements in both Mobile Home Parks mentioned above. As
such, in an effort to continue the Corporation's emphasis of increasing cash flow by filling the vacant
mobile home park spaces, the Corporation has requested approval from the Agency to transfer the
remaining working capital funds of $55,000 from the original $350,000 line item to Mobile Home Grant
Program line item of $200,000.
MP:sj6-13-02 Mobile Home Park
COMMISSION MEETING AGENDA
Meeting Date: 07/15/02
Agenda Item Number: It!.. 9 J...
Mobile Home Park-Amendment No.1
July 1,2002
Page 2
Since approval of the Loan Agreement, the Corporation has assisted 37 income eligible families under the
Homebuyer Grant Program by providing direct grants to the families to use as a down payment in the
purchase of their mobile home. Currently, an eligible buyer is allowed up to $4,000 of from the Agency
Loan Home Buyer Grant line item, the buyer is required to contribute not less than $2,000 of their own
funds, and the Corporation contributes up to $2,000 on behalf of each buyer.
To date, Homebuyers have purchased homes in parks such as Pacific Palms, Santiago Hillside,
Orangewood Estates and Glen Aire. Forty-Nine (49%) of the 37 families have purchased a home in
Sequoia Park. The Corporation has focused their energy on filling the vacancies in all of the mobile
home parks owned by it, except for Tropicana because of the extensive improvements that are underway.
Thus, the Corporation has done an excellent job at filling the vacant spaces in seven (7) of the eight (8)
parks. The occupancy rate for the eight (8) mobile home parks is as follows:
OCCUPANCY
PARK SPACES OCCUPIED VACANCY PERCENTAGE
Rancho Meridian 143 143 0 100%
Pacific Palms 142 138 4 99%
Glen Aire 131 130 I 96%
Sequoia 242 227 15 94%
Hillside 84 81 3 97%
Orangewood 151 124 27 82%
Ninth Street 108 89 19 82%
Tropicana 145 74 71 51%
The Corporation has placed emphasis on improving those parks that require the least amount of
improvements and disruption for the existing owners thereby allowing the Corporation to fill any
remaining vacancies expeditiously. The sooner the Corporation is able to lease the vacant spaces to
maximum occupancy level, the greater the resources available to the Corporation to complete the
refinancing plan presented to the Agency. Based on the recent Staff Report presented to the Mayor and
Common Council on May 6, 2002, the Corporation anticipates completing their refinancing program,
specifically, for Tropicana Park, by September 2003. At the completion of the refinancing program, it is
anticipated that the Agency will be repaid approximately $2 million of the original investment of $4.1
million while the parks where in the ownership and control ofthe Agency.
Accordingly, Staff recommends approval of the Corporation's request to transfer the remaining $55,000
in the working capital fund line item to the Homebuyer Grant Assistance line item. The existing balance
in the Homebuyer Grant line item is about $37,500. An additional $55,000 would increase the
Homebuyer Grant category to $92,300, thus allowing for an additional 22 home buyer grants.
ENVIRONMENTAL IMPACT:
Not applicable.
FISCAL IMPACT:
The initial loan amount of $5 50,000 to the Corporation will not increase. This loan is secured by a deed of
MP:sj6-13-D2 Mobile Home Park
COMMISSION MEETING AGENDA
Meeting Date: 07/15/02
Agenda Item Number: Jf'1:J....-
Mobile Home Park-Amendment No.1
July 1,2002
Page 2
trust and promissory note in favor of the Agency. The Amendment No. I will only result in a
transfer of $55,000 from the construction/working capital line item to the Home Buyer Grant line item.
Amendment No. I will also enable the Executive Director, or his/her designee, to make minor additions,
corrections and clarifications to the Regulatory Agreement related to the affordable housing units in the
Parks, if necessary.
RECOMMENDATIONS:
~'u" D,?" Comm;~;oo ""'~", "'"h,d R=]m;oo.
Maggie Pacheco, Deputy Directorillirector
Housing & Community Development
MP:sj6-13-D2 Mobile Home Park:
COMMISSION MEETING AGENDA
Meeting Date: 07/15/02
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Agenda Item Number: /1 'tfJ.
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RESOLUTION NO.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF
THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE
AGENCY EXECUTIVE DIRECTOR OR HISIHER DESIGNEE TO EXECUTE
AMENDMENT NO.1 TO THE 2001 ACQUISITION, WORKING CAPITAL AND
HOMEBUYER GRANT ASSISTANCE LOAN AGREEMENT ("LOAN
AGREEMENT") BY AND BETWEEN THE REDEVELOPMENT AGENCY AND
THE SAN BERNARDINO MOBILE HOME PARK CORPORATION DATED
JANUARY 8, 2001
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WHEREAS, the Redevelopment Agency of the City of San Bernardino ("Agency") and
the San Bernardino Mobile Home Park Corporation, a California Non-Profit Corporation (the
"Borrower") have previously entered into an Agreement dated January 8, 2001 (2001 Loan
Agreement) for the purpose of providing financing for the rehabilitation of two (2) mobile home
parks which it owns, located at 721 East Ninth Street, San Bernardino, ("Tropicana") and 2160
West Rialto Avenue, San Bernardino ("Orangewood") collectively herein called "Parks," and for
the purpose of providing a working capital funds and homebuyer down payment assistance for
the benefit of qualifying households and persons of low and moderate income households who
purchase mobile homes in the Parks owned by the Borrower; and
WHEREAS, the Borrower's use of the 200 I Loan Agreement proceeds have resulted
in the preservation, improvement and expansion of affordable housing units, exclusively
reserved for households earning 120% or less, of the median household income for San
Bernardino County and further assist the Agency in the accomplishment of its affordable
homeownership goals pursuant to Redevelopment Law; and
WHEREAS, the Borrower has identified additional resources to enable Borrower to
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complete the necessary improvements in the Parks, and as such, wishes for the Agency to
transfer the remaining funds in the working capital line item to the homebuyer grant
assistance line item.
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NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
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Section 1. The Community Development Commission hereby approves Amendment
No. I to the 2001 Acquisition, Working Capital and Homebuyer Grant Assistance Loan
Agreement dated January 8, 2001 (the "2001 Loan Agreement"). Specifically Section 2, 3 (e)
(i) and (ii), and Section 5 as reflected in the Staff Report dated July 15,2002.
Section 2. The Executive Director of the Redevelopment Agency, or his/her designee,
(the "Director"), is hereby authorized to execute Amendment No.1 to the "2001 Loan
Agreement".
Section 3. The Director, or his/her designee, is hereby authorized to make minor
corrections, additions and clarifications, including but not limited to, moving budget line
items to the 2001 Loan Agreement and Amendment No.1, provided said changes are not
substantive in nature and do not increase the monetary impact to the Agency pursuant to the
2001 Loan Agreement.
Section 4. The Agency Agreement is hereby amended to acknowledge that the San
Bernardino Mobile Home Park Corporation, a California Non-Profit Corporation has
modified their name as stated in their Articles ofIncorporation, Article 1, to read as follows:
The name ofthis corporation is California Mobile Home Park Corporation.
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RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION
OF THE CITY OF SAN BERNARDINO APPROVING AND
AUTHORIZING THE AGENCY EXECUTIVE DIRECTOR OR HISIHER
DESIGNEE TO EXECUTE AMENDMENT NO. 1 TO THE 2001
ACQUISITION, WORKING CAPITAL AND HOMEBUYER GRANT
ASSISTANCE LOAN AGREEMENT. ("LOAN AGREEMENT") BY AND
BETWEEN THE REDEVELOPMENT AGENCY AND THE SAN
BERNARDINO MOBILE HOME PARK CORPORATION DATED
JANUARY 8, 2001
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Section 5. This Resolution shall become effective immediately upon its adoption.
I HEREBY CERTIFY that the foregoing resolution was duly adopted by Community
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Development Commission of the City of San Bernardino at a
meeting
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day of
, 2002 by the following vote,
thereof, held on
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to wit:
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13 COMMISSION MEMBERS: AYES NAYS ABSTAIN ABSENT
14 ESTRADA
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16 MCGINNIS
17 DERRY
18 SUAREZ
19 ANDERSON
20 MC CAMMACK
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22 Secretary
23 The foregoing resolution is hereby approved this day of
,2002.
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25 Judith Valles, Chairperson
Community Development
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AMENDMENT NO.1
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THIS AMENDMENT NO. I TO THE JANUARY 8, 2001 ACQUISITION, WORKING
CAPITAL AND HOMEBUYER GRANT ASSISTANCE LOAN AGREEMENT is dated July IS,
2002 (the "Amendment No.1") by and between the San Bernardino Mobile Home Park Corporation,
a California non-profit corporation (the "Borrower") and the Redevelopment Agency of the City of
San Bernardino, a public body, corporate and politic (the "Agency").
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RECITALS
WHEREAS, on January 8, 2001, the Community Development Commission of the City of San
Bernardino, as the governing board of the Agency, approved the 2001 Acquisition, Working Capital
and Homebuyer Grant Assistance Loan Agreement (the "Agreement") in the amount of $550,000 (the
"200 I Agency Loan") for the purpose of providing working capital loan financing for the operations
of mobile home parks, owned by the Borrower, located at 721 East Ninth Street, San Bernardino
CTropicana") and 2160 West Rialto Avenue, San Bernardino ("Orangewood") collectively herein
called "Parks" and for the purpose of providing homebuyer down payment assistance for the benefit
of qualifying households who purchase mobile homes in the Parks owned by the Borrower; and
WHEREAS, the Borrower's use of the 2001 Agency Loan Agreement proceeds have resulted
in the preservation, improvement and expansion of affordable housing units, exclusively reserved for
households earning 120% or less, of the median household income for San Bernardino County and
further assist the Agency in the accomplishment of its affordable homeownership goals pursuant to
Redevelopment Law; and
WHEREAS, the Borrower has identified additional resources to enable Borrower to complete
the necessary improvements in the Parks, and as such, wishes for the Agency to transfer the remaining
funds in the working capital/construction line item to the homebuyer grant assistance line item; and
WHEREAS, the Borrower and the Agency mutually acknowledge and agree that as of
approval of this Amendment No. I by the governing board of the Agency, no default exists under the
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P;\Clcri<:al Ser.'icc5 0qltISlCpllanic\Agcnd;l\Agwncms\7.15.l12 AMENDMENT NO I MOBILE HOME BOARD CORP,doc
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Agreement, nor is either party aware of any fact, with the givIng of notice and the passage of time,
would constitute a default under the Agreement or the Amendment No. I.
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES AND
COVENANTS AS SET FORTH HEREIN, THE AGENCY AND BORROWER HEREBY
AGREE AS FOLLOWS:
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Section 1.
The Agency hereby amends the definition of the words "Home Grant
Program", which appears in Section 2, of the Agreement, to read as follows:
"The words "Home Grant Program" mean and refer to an affordable housing grant program
administered by the Borrower. The Borrower may use and apply a portion of the proceeds of the Loan
in an aggregate amount not to exceed two hundred fifty-five thousand ($255,000) to originate
Affordable Housing Grants to homebuyers."
Section 2. The Agency hereby amends Section 3 (e) of the Agreement, to read as follows:
"The Borrower shall use the proceeds of the Loan solely for the following purposes:
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an amount not to exceed the sum of Two Hundred Ninety-Five Thousand Dollars
($295,000) for the payment of the affordable rental housing operational costs of the
Borrower, including its obligations under the 1999 Housing Authority Loan Agreement
at the times and in the amounts set forth in Exhibit "B" and Section 5(b) of the
Agreement; and
an amount which in the aggregate shall not exceed two hundred fifty-five thousand
($255,000) for the purpose of assisting the Borrowers origination of "Affordable Home
Grants" to qualifying home buyers under the Home Grant Program, as set forth in
Exhibit "G" and Section 5 (c) of the Agreement."
Section 3. The Agency hereby amends Section 5, Conditions Precedent to the Loan &
Disbursement of advances (a), where ever applicable, to reflect the new fund amounts noted in Section
2 above, and Section 3, of the Agreement as amended by this Amendment No. I.
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P:\CIerlc:aI Scn'kes DepI\Step~&enCA\"~7.1~.ul A.t.lENDMENT NO I MOBILE HOME BOARDCORP,doc
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IN WITNESS WHEREOF, the parties have caused this Amendment No. I to the Agreement to be
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executed as of the day and year first written above.
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BY:
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BY:
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Approved as to Form
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Agency Special Counsel
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P:\ClerIaI ~ices Dcpl\Stcpllanie\Accnda\AJRCIIlCNS\1.1'~2 AMENDMENT NO I MOBILE HOME BOARD CORP,doc
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AGENCY
Redevelopment Agency of the
City of San Bernardino
Executive Director
BORROWER
San Bernardino Mobile Home Park
Corporation, a California non-profit
corporation, (AKA: San Bernardino
Mobile Home Park Corporation)
President
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** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): f)-I 5 -0;;; Item #
Vote: Ayes 1-'1 Nays.e:r
Change to motion to amend original documents:-
(C4.:L
Abstain
Reso. # On Attachments:- Contract term:
Note on Resolution of Attachment stored separately: -==
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
Date Sent to Mayor: '}- IG, -O:;r
Date of Mayor's Signature: f')-n "d?-
Date ofClerklCDC Signature: 'i-n-oJ.-
Resolution # (! a::/Za:Q-;)J')
.(?
Absent -e-
NullNoid After: -
By:
Reso. Log Updated: V
Seal Impressed: ,./
Date Memo/Letter Sent for Signature: t. '\) /Jr
60 Day Reminder Letter Sent on 30th day:
90 Day Reminder Letter Sent on 45th day:
See Attached: - Date Returned: 1(- fo -() if
See Attached:
See Attached:
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433,10584,10585,12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234,655,92-389):
Copies Distributed to:
City Attorney Code Compliance
Dev. Services
Parks & Rec.
Police
Public Services
Water
Notes:
YesL No
Yes No~
Yes No ~
Yes No ~
Yes No /'
EDA ,-/
MIS
Finance
Others:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: (Y'I;\
Date: 1(- b 0..:-
Revised 01/12/01