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HomeMy WebLinkAbout6/29/2005 - STAFF REPORTS (6) y u u « �, + "41O1ITFD\ww C'441POSa�P � CRA Staff Report DATE: June 29, 2005 CONSENT CALENDAR SUBJECT: THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING THE TRANSFER OF PALO VERDES VILLAS, A 98-UNIT RESIDENTIAL APARTMENT COMPLEX, WITHIN THE NORTH PALM CANYON PROJECT AREA TO COURTYARD PARTNERS - PALM SPRINGS, L.P. FROM:. David H. Ready, Executive Director BY: Community & Economic Development Department ' SUMMARY The Community Redevelopment Agency received a request to approve the transfer of Palo Verdes Villas, a 98-unit residential apartment complex, within the Merged Project Area#1 to Courtyard Partners - Palm Springs, L.P. RECOMMENDATION: Adopt Resolution No. "OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING THE TRANSFER OF PALO VERDES VILLAS, A 98-UNIT RESIDENTIAL APARTMENT COMPLEX, WITHIN THE NORTH PALM CANYON PROJECT AREA TO COURTYARD PARTNERS - PALM SPRINGS, L.P." STAFF ANALYSIS: On February 2, 1992, the Community Redevelopment Agency of the City of Palm Springs j ("Agency") approved an Owner Participation Agreement ("OPA") by Resolution No. 849 with Palos Verdes Villas, Inc. ("Participant") for the construction of a 98-unit apartment complex at Camino Monte and Stevens Roads. The OPA, as amended, pledged a financial subsidy in an amount not to exceed $1,468,635.00 in exchange for the dedication of twenty (20) units to be set aside for low income persons, for a period of twenty (20) years to be available to households at 50% of median income. The Agency on May 7, 2003 approved by Resolution No. 1213 a Transfer Ownership to the to the Donia Family Trust, Steven Donia and Corinna Everson, Three Bears Partners, L.P. and Jeanne S. Nigh Trust, all as tenants-in-common, and on June 14, 2005, this owner formally requested from the Agency approve of the sale/transfer identifying the tentative Item No. RA2. CRA Staff Report June 29, 2005—Page 2 of 2 Palos Verdes Villas Transfer Ownership vesting buyer, Courtyard Partners- Palm Springs, L.P.,which is one of the current tenants- in-common. The OPA between the Agency and the Participant and the Covenants, Conditions and Restrictions ("CC&Rs"), requires that the Agency authorize the Executive Director, or his designee, to forward a letter to the Participant approving the Transfer of Ownership, in accordance with Section 5.2 of the February 19, 1992 OPA. All Participants have been operating under the OPA and the CC&Rs appropriately since 1992 in accordance with all applicable laws. Staff has also verified with the respective City Departments (i.e., Fire, Building, Police and Risk) that this property is in compliance and is being maintained in a good health and safety manner reflecting capacity to operate this property. Therefore, the Participant requests and Staff recommends that the Agency allow the property's transfer. FISCAL IMPACT: No fiscal impact: i JOHNS RA`�MOND DALE E. COOK, JR. Di e of �J Community Development Community & conomic Development Administrator DAVID H. READY Executive Director Attachment: Resolution Da IeC/Redev/PalosVdsVillasStaffRepdCRA.Ju nO5 RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING THE TRANSFER OF PALO VERDES VILLAS, A 98-UNIT RESIDENTIAL APARTMENT COMPLEX, WITHIN THE NORTH PALM CANYON PROJECT AREA TO COURTYARD PARTNERS - PALM SPRINGS, L.P. WHEREAS, the Community Redevelopment Agency of the City of Palm Springs ("AGENCY") has established an affordable housing set-aside fund in accordance with Section 33000 et. Seq. of the California Health and Safety Code; and WHEREAS, the AGENCY is engaged in activities necessary to execute and implement the Redevelopment Plan for the North Palm Canyon Redevelopment project areas which was adopted by Ordinance No. 1227 of the City Council of the City of Palm Springs on September 19, 1984 and amended by Ordinance No. 1498 on December 21, 1994, Ordinance 1576 on December 15, 1999, Ordinance No. 1584 on May 31, 2000, and Ordinance 1623 on February 19, 2003; and WHEREAS, by Resolution No. 849 dated February 19, 1992, the Agency approved an Owner Participation Agreement ("OPA") with Palos Verdes Villas, Inc. ('PARTICIPANT") for the development of ninety-eight (98) unit apartment complex and setting twenty (20) units for persons of low income; and WHEREAS, the Agency entered a Regulatory Agreement and Declaration of Covenants, Conditions and Restrictions with the Participant on January 19, 1994: and WHEREAS, the Participant, Agency and the California Housing Finance Agency ("CHFA") entered a Subordination Agreement on January 30, 1995, whereby the Agency agreed to subordinate its Use Restrictions to the CFHA Deed of Trust and the CHFA Regulatory Agreement, in accordance with California Health and Safety Code Section 51335 (e), and amended by Resolution No. 1102 dated June 14, 2000; and WHEREAS, by Resolution No. 1213 dated May 7, 2003, the Agency approved the Transfer Ownership to the Donia Family Trust, Steven Donia and Corinna Everson, Three Bears Partners, L.P. and Jeanne S. Nigh Trust, all as tenants in common; and WHEREAS, the Participant has requested Agency approval to Transfer Ownership to the Courtyard Partners - Palm Springs, L.P.; and WHEREAS, in order to effectuate the purposes of the OPA and the preserve redevelopment of the Project Area and in particular this development, the Agency has determined that it is of benefit to the project area to approve this transfer of ownership; and Resolution No. Page 2 of 2 NOW, THEREFORE, be it resolved that the Community Redevelopment Agency of the City of Palm Springs, California, does hereby approve the following: SECTION 1. The Agency hereby determines that the project is of benefit to the project area and is necessary to effectuate the purposes of the Redevelopment Plan. SECTION 2. The Executive Director, or his designee, is authorized to forward a letter to the Participant on behalf of the Agency approving the Transfer of Ownership, in accordance with Section 5.2 of the February 19, 1992 OPA, to the Courtyard Partners - Palm Springs, L.P. Adopted this _ day of June 2005. ATTEST: COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Chairman REVIEWED AND APPROVED CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. _ is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California DaIeC/Redev/PalosVdsVillasResCRA Jun05