HomeMy WebLinkAbout12/7/2005 - STAFF REPORTS (8) i
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STAFF REPORT
I DATE: December 7, 2005 Joint Public Hearing
SUBJECT: JOINT PUBLIC HEARING TO APPROVE AMENDMENT NO. 1 TO A
DISPOSITION AND DEVELOPMENT AGREEMENT ("DDA") BETWEEN
CENTURY CROWELL COMMUNITIES, LP D/B/A MOUNTAIN GATE II
PALM SPRINGS VENTURE, LLC, AND THE COMMUNITY
REDEVELOPMENT AGENCY, ADJUSTING THE ALLOWED
MODERATE INCOME SALES PRICE BASED ON THE MARCH, 2005
HUD INCOME GUIDELINES FOR 5 SINGLE FAMILY INFILL HOMES
FOR MODERATE INCOME HOUSEHOLDS IN THE DESERT HIGHLAND
GATEWAY AREA OF MERGED PROJECT AREA#1
FROM: David H. Ready, Executive Director
BY: Community & Economic Development
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SUMMARY
This action approves an amendment to a Disposition and Development Agreement
("DDA") between Century Crowell Communities, LP d/b/a Mountain Gate II Palm
Springs Venture, LLC, and the Community Redevelopment Agency of the City of Palm
Springs, adjusting the allowed Moderate Income sales price based on the March, 2005
HUD income guidelines for 5 single family infill homes for moderate income households
in the Desert Highland Gateway area of the city, north of Las Vegas Road.
RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE CITY OF PALM
SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING
AMENDMENT NO. 1 TO, A DISPOSITION AND DEVELOPMENT AGREEMENT
("DDA") BETWEEN CENTURY CROWELL COMMUNITIES, LP D/B/A
MOUNTAIN GATE II PALM SPRINGS VENTURE, LLC AND THE COMMUNITY
REDEVELOPMENT AGENCY, ADJUSTING THE ALLOWED MODERATE
INCOME SALES PRICE BASED ON THE MARCH, 2005 HUD INCOME
GUIDELINES FOR 5 SINGLE FAMILY INFILL HOMES FOR MODERATE
Item No. RQ I .
INCOME HOUSEHOLDS IN THE DESERT HIGHLAND GATEWAY
AREAMERGED AREA #1
2. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, CONCURRING WITH THE
COMMUNITY REDEVELOPMENT AGENCY REGARDING THE APPROVAL OF
A AMENDMENT NO. 1 TO A DISPOSITION AND DEVELOPMENT
AGREEMENT WITH CENTURY CROWELL COMMUNITIES, LP D/B/A
MOUNTAIN GATE II PALM SPRINGS VENTURE, LLC ADJUSTING THE
ALLOWED MODERATE INCOME SALES PRICE ON FIVE MODERATE
INCOME HOMES IN THE DESERT HIGHLAND AREA OF MERGED AREA #1
3. AUTHORIZE THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO EXECUTE
ALL DOCUMENTS RELATED TO THE AGREEMENT
STAFF ANALYSIS:
The Community Redevelopment Agency established a Desert Highland Infill
program in 2002 with the issuance of an RFP to builders interested in
constructing single-family homes in the neighborhood on Agency-owned parcels.
These properties were targeted at moderate-income families priced out of the
single-family market in Palm Springs. The Agency approved a DDA with
Mountain Gate II Palm Springs Venture, LLC, an affiliate of Century Homes, in
January 2005 for the construction of 5 single family homes in the Desert
Highland area for moderate-income families on Agency-owned lots, APNs 669-
353-001, 669-413-019, 669-394-004, 669-394-005 and 669-394-006.
Staff used the Century DDA as a model for other homes to be constructed in the
neighborhood on the additional lots, and the Agency approved one other DDA for
several lots and staff is working with two other builders to develop a similar
package as the Century DDA.
Century is nearing completion on five (5) of their Model 102 homes (1,400 s.f.)
and they are working with Agency staff on joint marketing of the homes. The
DDA set the sales price for the homes at $229,000 based on the affordable
housing guidelines for moderate income households and the amount of buyer
assistance proposed by the Agency. The DDA also anticipates that the annual
allowable sales price would allow per the HUD-issued income guidelines for
Riverside and San Bernardino Counties, issued in March of each year.
Therefore, under the terms of the DDA, a buyer reselling the home would be able
to sell it to another qualified buyer for the price of $235,900 and still be within the
terms of the DDA. However, the DDA failed to anticipate that the Developer
I would be the holder of the property during the annual price adjustment. Given
the rising costs for materials all builders are faced with today, plus some of the
extraordinary challenges Century has faced in building these infill homes, staff
has supported their request for a DDA amendment increasing the sales price to
$235,900.
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FISCAL IMPACT: IFinance Director Review:
No additional subsidy is anticipated, since the adjustment is based on a rise in
median household income in the county.
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J HN S.*MND THOMAS J. 1#VILSON
Di ecto oy & Assistant City Manager-
Ec mic Development Development Services
DAVID H. READY ���
Executive Director
ATTACHMENTS:
1. Agency & City Resolutions
2. Public Hearing Notice
3. Amendment No. 1 to Disposition and Development Agreement
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NOTICE OF JOINT PUBLIC HEARING
NOTICE IS HEREBY GIVEN, that the Community Redevelopment Agency of the City of
Palm Springs and the City of Palm Springs will hold a Joint Public Hearing in the City Council
Chambers, located at 3200 Tahquitz Canyon Way, Palm Springs, California 92262, beginning at
6:00 p.m., Wednesday, December 7, 2005, to consider the following:
Amendment No. 1 to a Disposition and Development Agreement("DDA") between Century
Crowell Communities, LP and the Community Redevelopment Agency of the City of Palm
Springs, adjusting the allowed Moderate Income sales price based on the March,2005 HUD
income guidelines for 5 single family infill homes for moderate income households in the
Desert Highland Gateway area of the city, north of Las Vegas Road, Palm Springs,
California 92262.
The Community Redevelopment Agency of the City of Palm Springs ("Agency') entered a
DDA with Century Crowell Communities, LP in January, 2005 for the purpose of developing five(5)
moderate income single family homes in the Desert Highland Gateway area of the city. All of the
homes are Century's Model 102 of approximately 1,400 s.f. The homes would be located on
Jiminez Circle, El Dorado Boulevard,Avenida Cerca,and Bon Air Drive. The Agency shall make the
homes available for moderate income households, with mortgages affordable to households at
110% of area median income. The homes are subject to affordability restrictions contained in a
Regulatory Agreement; the Agency will provide a subsidy to the homeowners to make the homes
affordable. Such subsidy shall be repayable subject to the terms contained in a Promissory Note
and Deed of Trust.
The original DDA allows for an annual adjustment in allowable Moderate Income sales price
based on HUD's income guidelines for the Riverside and San Bernardino Counties. However, the
adjustment is specifically allowed for a reseller of the property and does not provide for an increase
in allowed price by the Developer if the annual readjustment,which occurs in March,occurs during
the construction of the homes. The Developer has nearly completed the 5 homes and has asked
that the DDA be amended to account for the higher allowed sales price ($235,900 vs. $229,000).
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I All interested persons are invited to attend the Public Hearing and express opinions on the
item listed above. If you challenge the nature of the proposed action in court,you may be limited to
raising only those issues you or someone else raised at the Public Hearing described in this notice,
or in written correspondence delivered to the City Clerk, at the address listed above,at or priorto the
I Public Hearing.
Members of the public may view this document and all referenced documents in the
I Community Redevelopment Department, City Hall,and submit written comments to the Community
Redevelopment Agency at or prior to the Community Redevelopment Agency Meeting at or prior to
the public hearing described in this notice.
Further information, including a copy of the DDA Amendment and Resolution, prepared in
accordance with Health and Safety Code Section 33433, is available in the Office of the City Clerk,
at the above address.
a/fies Thompson
ssistant Secretary
PROOF OF PUBLICATION This isVe 4rarQUM,?,Clerks Filing stamp
(2015.5.C.C.P)
STATE OF CALIFORNIA
County of Riverside
Nc. 4265
NOTICE OF JOINT PUBLIC HEARING
NOTICE IS HEREBY GIVEN,that the Community
Redevelopment Agency of the City of Palm
Springs and the City of Palm Springs will halm a
Joint Public Hearingg T the City Council Cham-
, Palm
I am a CItIZCO Of the United States and a resident OF hers,located at 32o0 iahqulezlnningoat 6.0 pain•
the County aforesaid; I am over the age of eighteen Spprings, CallfDecemberr 7, 2do5, to consider the
'' Wednestlay,
years,and not a party to or interested in the following.
Develop-
above-entitled matter.I am the principal clerk of a Amendment No. 1 to a„Dbetweednce no ecrlew-
rinter of the,DESERT SUN PUBLISHING meat Agreement("DDA)
p ell Communities,ofpthe and the
of Springs. ad-
COMPANY a newspaper of general circulation, element Agency uide-
g nmi the allowed Moderate Income sales prove
printed and published in the city of Palm Springs, base on the March nos HUD Income g
lines for 5 slngle familyinfill homes Or
moderate
County of Riverside,and Which newspaper has been income households In the Desert Wghland Gate-
Road,
way area of the city, north of Las Vegas Road,
adjudged a newspaper of general circulation by the palm Springs, California 92262.
Superior Court of the County oFRiverside,State of The Community Redevelopment Agency of the
Clt of Palm Springs (Agency) entered a DDA
California under the date of March 24,1988.Case wit Penn crowellll enmmuI las, LP m January.
Number 191236;that the notice,of which the Zoos for the purpose of developing five (s) mod'
state mocma single family homes in the Desert
annexed is a printed copy(set in type not smaller Highland Gateway area of the city. PII of the
homes are Century's Model 102 of approximately
than non pariel,has been published in each regular 1poa sar The homes would be located on Jlml-
nez Circle, EI Dorado Boulevard, Avenida Cerca,
and entire issue ot'said newspaper and not in any and Ban Air Drive 1 he Agency shall make thc.
e
supplement thereof on the following dates,to wit: wan morigaagals afradeblerio householdsust iilo
of area median Income.The homes are subject to
i 1 fh affordabtlity restrictions contained in a Regulatory
November 22'i,29 ,200$ Agreement; the Aggency will provide a Subsidy to
_____________________________________________________________ the homeowners tc make the homes affordable.
Such subsidy shall be repayable subject to the
terms contained in a Promissory Note and Deed
of Trust.
---------------------------------------------------------------
The original DDA allows for an annual adjustmentcbased
All in the year 2005 o allowable Moderate Income sales prise, based
an HDD's Income guidelines for the r, t .idelIaad
n-
San Bernardino Counties edHr ea eraa llleraol ilia
ment Is specifically
I certify(or declare)under penalty of perjury that the property and doeF not provide for an increase In
rice,b the Develo er If th o.cursaldur og
foregoing is true and correct. n �t
lustmen, whit occurs In arch,
the co/nstrucpttion of the homes.The Developer as
ih . ne.r the,DOAted the
mendedntos an a ccuntJfors the
D this-----30 ,----da son vs.
hi9 her allowed sales price
of--------- No tuber--'---- -= 2005 y $2 in )
Dated aY Palm Californiaa i
All interested persons are invited attend the
Public Hearing and exppress opinionss on the item
listed above.,if you ch all
enou may at lllmltedt to
propose d ac4on m court, y
--- - ________ __)___ ________ __________ raising only those issues you or,someone else
� _ raised aJ the,Public Hearing descnbed it this no-
Si nature tice,ar in written correspondence del Neat oro roar
g City Clerk,at the address Ilsted above, P
to the Public Hearing.
end all rreferenced udocumentsi m thesCommunityt
Redevelopment Department,City Hall,and submit
written
Agency attortprioreto the Comm Ra eve Y Rede-
velopment Agancy Meeting at or prior to t e pub-
(/ llc hearing descnbed in this notice.
(�' ✓7 Further information, Including a copy of the DDA
Amendment and Resolution, prepared in accor
S -
\ dance with Health and Safety Code y Clerk,
at the'ahove ladderelrsthe Office of the City Clerk,
James Thompson
Assistant Secretary
PUBLISHED: November 22, 29, 2005
RESOLUTION NO.
OF THE CITY OF PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY
APPROVING AMENDMENT NO. 1 TO, A
DISPOSITION AND DEVELOPMENT
AGREEMENT ("DDA") BETWEEN CENTURY
CROWELL COMMUNITIES, LP D/B/A
MOUNTAIN GATE II PALM SPRINGS
VENTURE, LLC AND THE COMMUNITY
REDEVELOPMENT AGENCY, ADJUSTING
THE ALLOWED MODERATE INCOME SALES
PRICE BASED ON THE MARCH, 2005 HUD
INCOME GUIDELINES FOR 5 SINGLE
FAMILY INFILL HOMES FOR MODERATE
INCOME HOUSEHOLDS IN THE DESERT
HIGHLAND GATEWAY AREAMERGED AREA
#1 AND AUTHORIZE THE EXECUTIVE
DIRECTOR TO EXECUTE ALL DOCUMENTS
RELATED TO THE AGREEMENT
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of
Palm Springs that Amendment No. 1 to a Disposition and Development Agreement with Century
Crowell Communities, LP d/b/a Mountain Gate II Palm Springs Venture, LLC adjusting the
allowed moderate income sales price based on the March, 2005 HUD income guidelines for five
single family infill homes homes for moderate income households in the Desert Highland area of
Merged Area #1 is hereby approved and the Executive Director or his designee is hereby
authorized to execute all documents related to the Agreement.
ADOPTED this day of 2005.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED & APPROVED AS TO FORM
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA,
CONCURRING WITH THE COMMUNITY
REDEVELOPMENT AGENCY REGARDING
THE APPROVAL OF A AMENDMENT NO. 1
TO A DISPOSITION AND DEVELOPMENT
AGREEMENT WITH CENTURY CROWELL
COMMUNITIES, LP D/B/A MOUNTAIN GATE II
PALM SPRINGS VENTURE, LLC ADJUSTING
THE ALLOWED MODERATE INCOME SALES
PRICE ON FIVE MODERATE INCOME
HOMES IN THE DESERT HIGHLAND AREA
OF MERGED AREA #1
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs
that it concurs with the action of the Community Redevelopment Agency regarding the
approval of a Amendment No. 1 to a Disposition and Development Agreement with
Century Crowell Communities, LP d/b/a Mountain Gate II Palm Springs Venture, LLC
adjusting the allowed moderate income sales price on five moderate-income homes in
the Desert Highland area of Merged Area #1.
ADOPTED this day of 2005.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
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REVIEWED & APPROVED AS TO FORM
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FIRST AMENDMENT
TO
DISPOSITION AND DEVELOPMENT AGREEMENT
between
COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS
a public body, corporate and politic
and
MOUNTAIN GATE II PALM SPRINGS VENTURE, LLC
a Delaware limited liability company
[Dated as of September 30, 2005 for reference purposes only]
RVPUB\KKRW01138.1
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This First Amendment to the Disposition and Development Agreement ("First
Amendment") entered into between PALM SPRINGS COMMUNITY DEVELOPMENT
AGENCY ("Agency"), a public body, corporate and politic and MOUNTAIN GATE II PALM
SPRINGS VENTURES ("Developer"), a Delaware limited liability company, and is dated as of
September 30, 2005 for reference purposes only. The Agency and Developer are sometimes
referred to as "Party" or"Parties".
RECITALS
A. The Agency and the Developer have previously entered into that certain
"Disposition and Development Agreement" which was executed by the Agency and became
effective on March 9, 2005 ("Original Agreement"). The Original Agreement was made with
respect to certain real property designated in the Original Agreement as the "Site", a legal
description of which is attached to this First Amendment as Exhibit A. The Original Agreement
provided for the Developer's acquisition of the Site from the Agency and Developer's
subsequent development thereon of affordable housing units, all as more specifically described
in the Original Agreement.
B. As established by the Original Agreement, the Site consists of five (5) non-
contiguous parcels ("Original Parcels") of land in the City of Patin Springs ("City") located
within the Desert Highland Gateway neighborhood and owned by the Agency. Subject to the
terms and conditions of the Original Agreement, the Developer is to acquire the Site from the
Agency and develop five (5) single family detached affordable housing units on the Site.
C. The Agency and the Developer desire to amend the Original Agreement in certain
particulars concerning the determination of the price at which the Developer may sell the
completed homes to Qualified Purchasers (as defined in the Original Agreement).
NOW, THEREFORE, for good and sufficient consideration, the receipt of which is
acknowledged, the Agency and the Developer agree as follows:
Section 1. Effect Upon Original al Agreement. The Agency and the Developer
represent, covenant, and agree with each other as follows:
1. Other than this First Amendment, there have been no oral or written
amendments or other modifications to the Original Agreement and the Original Agreement
remains in full force and effect in accordance with its terms. The Agency and the Developer
ratify and reaffirm each and every term and provision of the Original Agreement, except to the
extent as they may be amended by this First Amendment.
2. Neither the Agency nor the Developer are in material uncured default of
the Original Agreement and there have been no events that, with the passage of time, the giving
of notice, or both, would constitute an event of material uncured default by either Party under the
Original Agreement.
3. From and after the Effective Date of this First Amendment, wherever the
term "Agreement" appears in the Original Agreement, it shall be read and understood to mean
the Original Agreement as amended by this First Amendment.
RVPUB\KKR\701138.5
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4. All initially capitalized terms not otherwise defined in this First
Amendment shall have the meaning ascribed to such terms in the Original Agreement.
Section 2. Amendment of Section 4020) of the Original Agreement. The last
sentence of Section 402 (Agency Assistance) (1) (Purchase Price) of the Original Agreement is
amended to read as follows:
"Developer shall sell each completed house on a Parcel of the Site to a
Qualified Purchaser for a sales price which does not exceed an "affordable
housing cost" for such home. The term "affordable housing cost" shall
have the meaning set forth in Health and Safety Code Section 50052.5.
The Parties agree that as of the date of this First Amendment, the
maximum sales price of one of the units to be built on the Site is Two
Hundred Thirty Five Thousand Nine Hundred Dollars ($235,900), subject
to adjustment at the time of sale based on changes in area median income
and other affordable housing cost components as published by the United
States Department of Housing and Urban Development ("HUD"), the
State Department of Housing and Community Development ("HCD"), and
the County of Riverside ("County"). The Agency's Executive Director
shall, without need for Agency governing board approval, establish the
sales price of each home at an amount which is the affordable housing cost
for such home upon written request by the Developer made at the time of
sale, based upon the requirements of Health and Safety Code Section
50052.5 and the then-current area median income and housing costs
information published by HUD, HCD, and the County."
[Signatures on following pages]
RVPUB\KKR\701138 5
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SIGNATURE PAGE
TO
FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT
AGENCY:
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, a public body
corporate and politic
Dated: By:
Executive Director
ATTEST:
Agency Secretary
APPROVED AS TO LEGAL FORM:
WOODRUFF SPRADLIN & SMART
Douglas C. Holland
Agency Counsel
RVPOBAKKRV70108.1
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SIGNATURE PAGE
TO
FIST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT
DEVELOPER:
MOUNTAIN GATE I1 PALM SPRINGS VENTURES,
LLC, a Delaware limited liability company
By: Troxler Residential Ventures XX, LLC,
a Delaware limited liability company
its Managing Member
By: Troxler Venture Partners, Inc.,
a California corporation
its Operating Member
Dated: By: l�
Bryan P. T> xler
President
RVPUB\KKR\701138 5
EXHIBIT A
TO
FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT
Legal Description of Original Parcels
Lots 50, 94, 95, 96 and 117 of the Desert Highland Estates, in the City of Pahn Springs, as
shown by Map on file in Book 24, Page(s) 53 and 54 of Maps, in the Office of the County
Recorder of Riverside County, California.
EXHIBIT A
RVPUB\KKR\701138.5