HomeMy WebLinkAbout20896 - RESOLUTIONS - 4/7/2004 RESOLUTION NO. 20896
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA CONCERNING THE SUNRISE
NORTE NEIGHBORHOOD APPROVING CHANGES TO
THE LEASES, AUTHORIZING SALES OF PARCELS
TO THE TENANTS FOR FAIR MARKET VALUE, AND
PROVIDING FOR THE PROPER ADMINISTRATION OF
SUCH PROGRAM.
WHEREAS, the City of Palm Springs approved that certain Lease Agreement No. 1779 with
Fredricks Development Corporation, a California Corporation, dated March 1, 1982 for the
development of 60 acres of land located at the northwest corner of Sunrise Way and San Rafael
Drive, a memorandum of which was recorded on March 22, 1982 as Instrument No. 47803 of
the Official Record of the Riverside County Recorder; and
WHEREAS, the Parties made a Declaration of Covenants, Conditions and Restrictions
("Declaration") and subsequently recorded the Declaration on October 22, 1982 as Instrument
No. 182722 of the Official Records of the Riverside County Recorder; and
WHEREAS, on February 8, 1983, the City entered an Agreement Re Enforcement of Lease
Number 1779 with the State of California Department of Housing and Community Development
to facilitate the State making California Homeownership Assistance Program ("CHAP") loans to
eligible households, recorded on February 15, 1983 as Instrument No. 28930 of the Official
Record of the Riverside County Recorder; and
WHEREAS, the parties entered an Amendment to Lease Agreement on February 23, 1983 as
Instrument No. 37067 of the Official Record of the Riverside County Recorder, for the purpose
of assisting the Lessee obtain Federal Housing Administration Insurance for the loans taken by
purchasers which were to be secured by the lots into which the Property was to be subdivided
and improvements constructed thereon; and
WHEREAS Lessee subdivided and sold homes in the Tract as described in the Legal
Description shown as Exhibit 'W' to the Resolution, subject to the terms of subleases executed
by Lessee and Sublessee; and
WHEREAS Lessee Executed a Quitclaim Deed on December 12, 1991, recorded on December
27, 1991 as Instrument No. 446363 of the Official Record of the Riverside County Recorder;
terminating and cancelling the Lease Agreement by and between City and Lessee, as well as
the Lessee's interest in the Covenants, Conditions and Restrictions (the "Declaration"); and
WHEREAS, with the execution of the Quitclaim Deed by the Lessee and acceptance by the
City, the City's real property interest merged with the Lessee's interest for the purpose of the
subleases with the individual subleases; and
WHEREAS, on November 19, 2003 the City Council approved a Lease Amendment creating a
new sixty (60) year term for the existing leases, but not changing any other term.
Resolution 20896
Page 2
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs,
that:
SECTION 1. Recitals. All recitals above are deemed true and correct. The programs
enacted hereunder shall be known as the "Sunrise Norte Homeownership
Program."
SECTION 2. Sale. The City shall offer the existing developed parcels in Sunrise Norte
for sale to the owners of the property improvements, at fair market value,
pursuant to an Agreement in a form acceptable to the City Attorney.
Owners shall provide their own financing for the purchase.
SECTION 3. Sale Price. Until July 1, 2005, the price shall be $11,350.00 based upon
the current appraised fair market value. Annually thereafter the price
shall be adjusted by changes in the published Consumer Price Index
(CPI) for Urban Wage Earners and Clerical Workers, All Items, for the
Riverside/San Bernardino Metropolitan Statistical Area occurring
cumulatively since the date of the appraisal. The Finance Department
shall calculate these increases and the resulting sale price. The City shall
have an appraisal performed by an MAI appraiser to establish the land
value as of the five-year anniversary date, commencing July 1, 2005 and
thereafter as of July 1, 2010, 2015, etc. After each five-year adjustment,
the annual CPI changes shall be determined against the new appraised
value.
SECTION 4. Transfer costs. The City shall determine if an escrow shall be used for
the land transfer. The City shall pay for all standard costs which would be
borne by seller while buyer will pay those paid by buyer.
SECTION 5. Lease Amendment. The City Council on November 19, 2003 approved
extending the leases in the Sunrise Norte until January 1, 2064. At City's
sole expense, City will prepare such lease amendments. The lease
amendment will include a specific notification concerning the buyout
program and the resale restrictions in the recorded covenants and
conditions.
SECTION 6. Covenant Agreement. City may require recordation of a "Memorandum of
Covenant Restrictions" which in simple terms makes buyers and sellers
and their brokers aware of the lease, the covenant restrictions on sale,
and the right of purchase of the leasehold interest. Upon sale of the
leasehold interest pursuant hereto, a release of covenant restrictions shall
be recorded.
SECTION 7. Lease Otherwise Unaffected. For property owners who choose not to
purchase, except as expressly set forth herein, the terms of the Lease
and Sublease, as amended, shall remain unaffected and unimpaired by
reason of the foregoing amendments, and the Lease and Sublease, as
amended, shall remain in full force and effect and binding on all parties
hereto.
Resolution 20896
Page 3
SECTION 8. Use of Proceeds. All proceeds from the sale of the parcels shall be
deposited in the City's Community Development Block Grant fund for the
development of new affordable housing units, and for improvements of
the Sunrise Norte Tract at or near the interface with the adjacent Coyote
Run Apartment project.
SECTION 9. Administration. The City Manager shall prescribe in writing rules for the
orderly administration of the Program.
SECTION 10. Execution of Documents. The City Manager or his designee is authorized
to execute an amendment to the Lease(s) and any agreements, letters,
documents, deeds, easements to facilitate this transaction in such form
as shall be prescribed by the City Attorney.
ADOPTED this 7" day of April, 2004.
AYES: Members Foat, McCulloch, Mills, Pougnet and Mayor Oden
NOES: None
ABSENT: None
ATTEST: THE CITY OF PALM SPRINGS, CALIFORNIA
City rk City Manager
REVIEWED &APPROVED AS TO FORM