HomeMy WebLinkAboutR12-Redevelopment Agency
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DIVILOPMIBT DIPARTBINT
OF TBI CITY 01' SAIl BlRlWIDIBO
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RlOUlST FOR COMIIISSION/COUllCIL ACTION
From:
KENNETH J. HENDERSON
Executive Director
Subject: SALE OF PROPERTY
LOCATED AT 838
BORTH LUGO TO OPrIOB
HOUSI IBCORPORArlD
Date:
August 12, 1992
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SvnoDsis of Previous Commission/Council/Committee ActionCs):
On August 2, 1982, the Mayor and Common Council approved and
authorized the Mayor to enter into a 30-year lease for a
lease/purchase agreement with Option House, Inc., for the property
located at 838 North Lugo Avenue in the City of San Bernardino.
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Recommended MotionCs):
CMavor And CODIOn Council)
MOTION:
That the Mayor and Common Council approve the sale of the
property to Option House and the Mayor and City Clerk to
execute any and all documents affecting the sale and
transfer of the property located at 838 North Lugo to
Option House, Incorporated.
~tt~~~~
Executive Director
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Contact Person(s):
Ken Henderson/Art Hassel
Phone:
5081
Project Area(s):
N/A
Ward(s):
One(l )
Supporting Data Attached:
Staff ReDort: Exhibits
FUNDING REQUIREMENTS:
Amount: $
N/A
o
Source:
Budget Authority:
N/A
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Commission/Council Notes:
KJH:AJH:lag:0193e
COMIIISSION MBlTIm: AGKBDA
Meeting Date: 8/17/1992
12-
Agenda Item llumber:
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DI()LOPRIBT DIPARTBYBT
01' TIll CITY 01' SO JlIDAm)IlIO
STAn' OPORr
SRR 01' PROPERTY LOCATED AT 838 BORrII LUGO STIlIIT
The Development Department staff has received a written notice from the
Lessee's Board Chairman and a Board Resolution from Option House,
Incorporated exercising its option to purchase the subject property
presently leased by Option House.
On August 2, 1982, the City of San Bernardino entered into a lease/option
agreement with Option House, Incorporated, stating in part...
PURCHASE OPTION: NON-TERMINABILITY
Section 1. Purchase Ootion.
Lessee shall have the option to purchase the subject
property including attached equipment beginning at the end
of the first month of lease payments through the three
hundred sixtieth (360) month of lease payments on this
Lease Agreement. This option is exercised by written
notice from Lessees Board Chairman with a Board Resolution,
to Lessors Executive Vice President and the purchase price
shall be the balance owed and currently due on the lease.
The amount in full shall be made and paid directly to the
lessor within thirty (30) days of this written notice with
no penalty but including a service charge of one hundred
dollars ($100) and related closing costs, provided however
all liabilities owed to the Lessor is paid and current."
On January 15, 1992, Option House received a fully executed copy of an
Emergency Shelter Program (ESP) Standard Agreement #9l-ESP-862 from the
State of California, Department of Housing and Community Development,
Emergency Shelter Program in the amount of $180,548. This grant expires
on March 7, 1993.
Pursuant to the lease option, Option house wishes to use this grant to
purchase the property located at 838 North Lugo Avenue in the City of San
Bernardino. The department needs to open escrow to facilitate sale of
property.
Staff has reviewed Option House's request and finds it meets the
requirements set forth in the Lease/Option Agreement. Further, staff
recommends that the Mayor and Common Council approve the sale of the
property and to the Mayor and City Clerk execute any and all documents
effecting the sale of subject property.
Staff recommends adoption of the form motion.
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lUlilUUirll J. OB, Executive Director
Development De artment
KJH:AJH:lag:0193e
COMIIISSIOB IIIITIBG AGlBDA
Meeting Date: 8/l7/199~
Agenda Item Bumber: f
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Option HOUS6, Inc.
P,O,Box 970/5an Bernardino, Ca, 92402
714-3BI-3471
August 4, 1992
Mr. Arthur J, Hassel
Community DeYelopment Specialist
201 North .eN Street
San 8errmrtlino, Ca, 92401
Mr. H!lRSal'
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Per the lease agreement between Option House. Inc. and the Community Development
Dep&, b ,....111 submit this letter d Intent 10 purchase pmpoertIes at 838 North lugo Street
in San Bernardino, with Bo8rd Resolution attached.
PI0!l8S8 '~a 'hat Option House, Inc, is unable '0 follow through on 'dlrect O')f'> 08ymant In
full shall be made IUXl paid directly 10 the Community Development Oep3r~mant within
thirty days' (Article XII, Section 1). MonIes 10 purchase properties have oeen <Iwsrded
'0 0ptk>fl House, lnc, from the States' ESP IX Prog1<lm in the !'Imount of $' ~).5413 Due
") ihe '''lS''~'' 3mo\!nI'}f '1'1Onies awarded 3gainst the actual ',:ur:ent :Y',,<"!18$e 'JI,.-:e,
-,ecessary negotiations wUl not allow the agency to fulfill this requirement
If there are any questions/concerns, please call me at: 714-386-7820,
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Option HOUS6,
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P,O.Box 970/San Bernardino. Ca, 92402
714-39'-1471
RESOllJ nON
Whereas, OptIon House, Inc., !I I'lOIl-pmfll egetIGY, has been awarded monies from lhe
State of Callfomla. Department of Housing ilncJ C<Jmlllunity Development. Oivision of
Community Maim. Emergency Shelter Program XI and
Whereas monies awarded are for the purchase of propertI9S at 838 North Lugo Street In
!he City of San 8em8rdlno and
Whereas said properties are.::urrently L>wM(J o~ lh.. Community Development
Department, City at San Bernardino and
Per !he lease agreement between Option House. Inc. soothe Community Development
Department specifically states in Artlde XII, Section 1, thai written notIflcatlon with Board
,. Resolution is required upon intent of lessee to purchase said properties and
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NOW THEREFORE, BE IT RESOLVED THAT:
o j , fhe 8o8rd of Directors of Option Houso:l, . rIG h>Jrec>y glV6 no(i~ ot inlent to
purchase properti8fl currently ieaseO through the Communily Development
Departmenl
02. The 8o8rd at Directors at Option House. inc. flavlng authorized Veieata Scott
Executive Director to apply and accept the grant in the amount of $180,548. and
to enter Into a contract and any amendnent thereto with !he Department of Housing
and Community Development to perform any and all responsibilities In relationship
10 such contract
03. Authorizes Veleata Scott. executive Director, to perform any and all responsibilities
In relallonshlp to executing grant with !he Community Development Department,
City of San Bernardino
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STATE OF CALIFORNIA - BUSINESS T
PORTATION AND HOUSING AGENCY
/',,",
PETE WilSON Governor
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DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
DIVISION OF COMMUNITY AFFAIRS
Emergency Shelter Program
1800 TIlIRD STRBBT
P,O BOX 952054
SACRAMENTO, CA 94252-2054
(916) 445,0845 FAX (916) 327_
Ms. Veleata &:011
Executive Director
Option House, Inc.
P.O. Box 970
San Bernardino, California 92402
October 29, 1991
Dear Ms. Scott:
RE: Grant A2reement No, 91-ESP.862
Congratulations on receiving your ESP granl award, ram endosing all of the documenlation which you will
need 10 obtain funds for your program and 10 ""mply with Ihe provisions of Ihe grant agreemcnt These
inClude:
1.
The Slate A2reement (five copies)
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The State Agreement consists of a cover shect (Standard form STO.2); a sct of standard conditions;
and Attachment A, which sets out thc specific requirements for your program. You should review
thc entire Agreement thoroughly and, if necessary, discuss the rcquirements with your legal and
financial advisers and your Board. In Attachment A you should notc particularly the amounts
specified for each activity for which you have becn awarded funds, the amount of sheller (measured
in person.sheller-days or PSDs) which you have committed to provide and the timetable for drawdown
of funds ancJ provision of PSDs,
Oncc you have reviewed and approved the Agrcement, Lhe person designated in Ihe resolution
submitted with your grant application should sign all live copies in Ihe space marked
'CONTRAC,OR' on the lower right hand seelion of the cover sheel of the Agreement. If the
resolulion submitted wilh your applicalion has to be changed to relleet changes in the authorized
signa lOry, the granl amount or your granlcc status (Icad agcncy, participating agency or singic agency),
you should ensure that your Board adopls a new resolulion consistent with the terms of the grant
award, All five si2ned conics, together wilh the new resolution, if needed, must then bc returned to:
Program Manager
Emergcncy Shelter Program
Department of Housing and Community Development
p, 0, Box 952054
Sacramento, CA 94252.2054
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Ms. Veleata Scott
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The State cannot reimburse you for any expenses you may incur before the effective date of the
Agreement, which is the date it is signed by the State's representative. Accordingly, it is in your own
interest to return the signed Agreemcnts as soon as possible so that you may commence your
program, If the signed Agreement is not returned to HCD within forty-five (45) days of the date of
Ihis leller, stale law reauircs us 10 terminate your eran! award and reaUocate your funds 10 anolher
grant applicant. In exceptional circumstances, a )()-day cXlension may be approvcd, If you think you
will nee<J an extension please contact your COnlrael Managcr immediately,
2, Other Forms
We have enclosed a standard forms list with lhe forms and instructions you will need 10 ohlain funds
under the Agrcemcnt, 10 comply with hidding procuremcnt and security requirements and to request
changes in your aulhorize<J activities or hudget. Please make copies of Ihe hlank Quarterly Narralive
Report IQNR) and Request for Disbursement (Rf'D) forms for your future use,
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Progralll Commencement
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Clause Il of the Agreement requirc.s that you commencc vour program no later lhan two (2) months
from the Agreement's effcclive date, Failure 10 do so without good cause is GROUNDS FOR
TERMINATION of thc Agreemcn!, If you havc not alrcady done so. you should immediately start
prcparing to meet any of thc applicahle dishursement conditions sct out in Clausc 25 of the
Agreemcnt. You should be aware that conditions related to the acquisition and/or rehabilitation of
shelters or the procurement of equipment may take a significant amount of time to complete.
You may return any required forms (including RFDs for advance payments and evidence of
completion of pre disburse men I condilions) wilh the signed Agrecmcnts, hut it is nol rcquired that you
lln so, We slrongly recommcnd that 'i!!l!..!!o no' delay Ihe relurn of lhe Agreements while you work
,m tile completion of olher paperwork,
iF YOU HAVE ANY PROBLEMS OR QUESTIONS, you should contact your COnlraCI Mana~er or m.,
i,mmediately, I ':an be reached al the above telephone numher. Your COnlraet Manager, Herman ,ellaefer
':an hcrcachcfJ "I (916) J21.'7~S. We look fOf"\.\l'lrrJ !(l working.vith you on YOur prog(<llT1 ,1.o1d ,wW"~' I:jl.: .Jf):.
::()()pcration '-tnO as~istantc.
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L 'ToITlMon(h~n ~_
Program Manager
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Cr. G"cEE"a1ENT Q..".. ",,".
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, T.o:PAVEA'5 HDf.RAl EW'lOY(R 1[)[lmnCATIOli liUU8[$o
THlSAGREEMENT,m.deandenleredinlolhis 2nd d.yof October .19~, i
I' the Slate of California, by and between Slate of California, through its duly elected or appointed. qualified and acting
.... .i OF OI='FICER ACTI/IfQ FOA STAT( I AGENCY
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DirCClnr
CONTRACTOR'S NAME
Option Hnu.~ ]n~ a nnnprnfit ~q>nr2Iinn . hereafter called the Contractor.
WI1NESSETH: Th.t <he ContrlCtor for ond in colllideration of <he covenants. condition.. acreements. and ,tipulllioru of the Stile h_in.fier expressed,
doe, hereby .gree 10 furni,h to lhe S..le ,ervices ond m.,erial, u follows: IS., forth ..",iu 10 b. "nde,cd by COrol,o<:IO'. amoWII 10 be paid Con"ocIO',
rirn.e fa, perjo'fMn4e 0' cDnlple/;ofl. and DIlQCh plans and specifleDlions, if any.)
A Authority and Purnose. The Emergency Shelter Prognm (herein after "ESP") Is authorized pursuant to Section 50800,
el ~., oC the California Health and Safety Code and Title 24, CaIiCornia Administrative Code Section 7950, ~ ~.,
and Is administered by the State oC California Dcpartment of Housing and Community Development (hereinaftcr
'Statc") for the purposc of a.~sisting entiti~ that are providing shelter for the homcless,
B. Nature of SCrvices, Contractor will perform thosc tasks, services, and activilics specified in Attachment A, which is
attached to and made a part of this Agreement, in accordance with the ContraclOr's application, the representations
contained therein, and any subsequenl written allerations submitted by the Contractor and approved by the State, all
oC which are hereby incorporated into this Agreement by rcfcrence as if set Corth in full. Such tasks, services and
activities are herein referred to as the 'Program".
c.
Grant Amoun!. This Agreement shall not exceed $180,548.
CONTlNUEO ON
SHEETS, EACH BEARING NAME 0' CONTRACTOR AND CONTRACT NUMBER.
IH:eIIVED
~ '; c, 1991
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The provision. on the reverse .ide hereof corullitule . pan of thil IsrecmcnL
rN WITNESS WHEREOF. this asreement hu been e.eculCd by the partie, h,crelo, upon lhe dlle fIrSt above ","lien,
STATE OF CALIFORNIA
'GENCY D f H' d Co . D I
epartmenl 0 oUllng an mmuOlty eve opment
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CONTRACTOR
CllNTIIoOCTOIIJ._.......____.__....1
Upllon HOuse, Inc.. a nonprolll COrporation
aY'AUT~8~E)
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PllJNtiD NA~ ."10 TrTlE PEj:tSOflrl SIGNING
Veleata Iialtt
HlE
Director
'r.&\ox 970, San Bernardino, CA., 92402
,IolOU...T E'lCWilE"lO.... hol\S
OCU"[NT
$ JIDJ4I
Rloq...OVNTE~~8iqEC~OR
lollS CONT~T
PROGRAM~A TEOORY ~OE. ~D .TITlEI
Ulmmunlly Allalrs
: 'U'OEJ:J}..r-
D.p.nm.nt of aen,r.' S,rvlc..
U.. Only
$
(OPTIONAL USE,
2141/41260
"H40-62S.985
FISCAL YEAR
91/92
!7etrpt fro~ OeponftJeftt 01
Got..,..1 SeMc" ..........
:JTAL AMOUNT ENCU"8EAED TO
ATE
$
OIJECT S!I' EllPENOtlIJAE (COOE "'0 TITlE)
701 uranlS
I ", cmrIry upon my """ /WIOMIknowIodge /lie, budgeted lurid. T,... NO
~, .;- "" /lie period end _e 01 tile e.".fldIlure .~ted e~L, ___
ONATURE OF ~ ~~ICER "
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I.R, NO.
J~" 8 - 1992
&A8 2" 1991
o COOl1RACTllII
o 8TATUoeNCY
ODE", 01' GEN, KA.
o COOlTROLLiA
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