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HomeMy WebLinkAbout6/2/2004 - STAFF REPORTS (5) DATE: JUNE 2, 2004 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF COMMUNITY& ECONOMIC DEVELOPMENT ACQUISITION OF FIVE SINGLE-FAMILY PARCELS IN THE DESERT HIGHLAND GATEWAY AREA FROM COACHELLA VALLEY HOUSING COALITION FOR THE PURPOSE OF FACILITATING THE DESERT HIGHLAND INFILL PROGRAM RECOMMENDATION: That the Agency approve the Agreement for Purchase and Sale with Coachella Valley Housing Coalition for five parcels the purpose of assembling lots for the Desert Highland Infill Program, at fair market value based on an appraisal conducted by MacKenzie, Wagner& Associates. SUMMARY: 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 will be targeted at moderate-income families recently priced out of the single-family market in Palm Springs. Currently the Agency owns several lots in the neighborhood which were acquired in the past for various reasons, including CVHC's 1996 self-help program in the neighborhood and to abate non-conforming structures. This Agreement allows the Agency to acquire additional lots to add to the program to create more economy of scale for the developer and raise the profile of the program. The purchase of the lots from CVHC is at fair market value, based on an appraisal conducted by MacKenzie, Wagner & Associates on behalf of the Agency as of April 16, 2004 (date of value). The Agency will pay all closing costs. The proposed purchases and trade would increase the number of vacant lots owned by the Agency in the Desert Highland Gateway neighborhood of Palm Springs from five to ten, with anticipated future actions adding at least four or five more. The funds for the purchase frorh CVHC are available in the Agency's Low & Moderate I come H ing Fund - Desert ighland Infill Program. J hn Raymon Dikctgf of Comm ty & Economic Development APPROVED_ tea'fir' City Manager ATTACHMENTS: 1. Resolution 2. Purchase & Sale Agreement c' AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY ("Agreement") is made this_day of June, 2004 ("Effective Date"), by and between Coachella Valley Housing Coalition, a California ("Seller")and the Community Redevelopment Agency of the City of Palm Springs, a California municipal corporation ("Agency"). RECITALS: A. The Seller is the owner of that certain real property and improvements and easements thereon consisting of approximately five single family lots of various sizes located in the Desert Highland Gateway area of the City, more particularly described in Exhibit "A" to this Agreement ("Property"). B. Seller acquired Parcel 669-383-021 on June 30, 1995 by Document No. 213541; acquired Parcel 669-385-002 on April 28, 1995 by Document No. 135821; acquired Parcel 669- 386-004 on April 28, 1995 by Document No. 134239; acquired Parcel 669-395-017 on December 28, 1994 by Document No. 480822; and acquired Parcel 669-383-018 on July 1, 1995 by Document No. 248029. C. The Agency desires to enter a Disposition and Development Agreement ("DDA") with one or more developers for the construction of single family homes in the Desert Highland Infill Housing Program, and wishes to assemble both the Seller's parcels and other Agency-owned parcels for the purposes of entering into a DDA with the developer or developers. D. In order to facilitate the DDA, Agency wishes to purchase the Parcels from Seller and Seller wishes to sell the Parcels pursuant to the terms and conditions of this Agreement. E. The Agency has conducted an MAI appraisal on the Parcels and will pay the appraised value to Seller. The value of the Parcels will be a contribution toward the affordability of the homes constructed under the Infill Housing DDA. NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows: TERMS AND CONDITIONS 1. PURCHASE AND SALE OF PROPERTY. Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration herein set forth, Seller hereby agrees to sell to Agency and Agency hereby agrees to purchase from Seller the Seller's fee interest in that certain real property more specifically described at Exhibit "A", attached hereto and made a part hereof. Purchase Agreement for CVHC Lots.wpd 05/18/4 1 2. PAYMENT OF PURCHASE PRICE. 2.1 Purchase Price. Agency agrees to purchase the Parcels from Seller and Seller agrees to sell the Parcels to Agency for a purchase price ("Purchase Price") determined by "A Complete Appraisal Presented in a Restricted Use Report" prepared by MacKenzie, Wagner & Associates dated April 21, 2004. 2.2 Time of Payment. The entire Purchase Price shall be paid upon the close of escrow between the Agency and the Seller. 3. NO WARRANTIES. 4.1 "AS-IS" Sale. Except as set forth in this Agreement, Agency acknowledges that neither Seller nor any of its employees, agents or representatives has made any representations, warranties or agreements to or with Agency on behalf of Seller as to any matters concerning the Parcels, the physical condition, the present use thereof, the merchantability, or the suitability of Seller's intended use of the Parcels. Agency further acknowledges and agrees that (with the exception of the representations and warranties by Seller herein)the Parcels are to be purchased, conveyed and accepted by Agency in its present"AS-IS" condition. 4.2 Changed Circumstances. If Seller becomes aware of any fact or circumstance which would change or render incorrect, in whole or in part, any representation or warranty made by Seller under this Agreement, whether as of the date given or within four (4) months thereafter and whether or not such representation or warranty was based upon Seller's knowledge and/or belief as of a certain date, Seller will give immediate written notice of such changed fact or circumstance to Agency. Agency shall have ten (10) days from the receipt of any notice by Seller of the material change of any representation or warranty made by Seller hereunder to terminate this Agreement by providing written notice to Seller, and receive return of its Purchase Price and any other sums paid to Seller under this Agreement. 4. MISCELLANEOUS. 4.1 Successors. This Agreement shall be binding upon the parties hereto and their respective heirs, representatives, transferees, successors and assigns. The obligations of Seller under this Agreement shall inure to the benefit of Agency, any purchaser of Agency, and their respective heirs, representatives, transferees, successors and assigns. 4.2 Time of Essence. Time is of the essence in this Agreement and with respect to each covenant and condition hereof. Seller and Agency each specifically agrees to strictly comply and perform its obligations herein in the time and manner specified and waives any and all rights to claim such compliance by mere substantial compliance with the terms of this Agreement. 4.3 Time Period Computations. All periods of time referred to in this Agreement shall include all Saturdays, Sundays and California state or national holidays unless the reference is to business days, in which event such weekends and holidays shall be excluded in the computation of time and provide that if the last date to perform any act or give any notice with respect to this Agreement shall fall on a Saturday, Sunday or California state or national holiday, on J.3 Purchase Agreement for CVHC Lots.wpd 05/18/9 2 such act or notice shall be deemed to have been timely performed or given on the next succeeding day which is not a Saturday, Sunday or California state or national holiday. 4.4 Interpretation: Governing Law. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates. 4.5 No Waiver. No delay or omission by either party hereto in exercising any right or power accruing upon the compliance or failure of performance by the other party hereto under the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either party hereto of a breach of any of the covenants, conditions or agreements hereof to be performed by the other party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof. 4.6 Modifications. Any alteration, change or modification of or to this Agreement, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto. 4.7 Severability. If any term, provision, condition or covenant of this Agreement or the application thereof to any party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 4.8 Merger of Prior Agreements and Understandings. This Agreement, and other documents incorporated herein by reference contain the entire understanding between the parties relating to the transaction contemplated hereby and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein and shall be of no further force or effect. 4.9 Execution in Counterpart. This Agreement and any modifications, amendments or supplements thereto may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart. c' 1 a ,jv Purchase Agreement for CVHC Lots.wpd 05/18/4 3 IN WITNESS WHEREOF, the parties hereto have executed this Agreement of Purchase and Sale of Property as of the date set forth above. "AGENCY" COMMUNITY REDEVELOPMENT AGENCY OF THE Seller OF PALM SPRINGS, a California municipal corporation By: Chairman ATTEST: Assistant Secretary APPROVED AS TO FORM: Agency Counsel "Seller" COACHELLA VALLEY HOUSING COALITION, A CALIFORNIA NON-PROFIT By: Executive Director cry Purchase Agreement for CVHC Lots.wpd 05/18/4 4 EXHIBIT "A" LEGAL DESCRIPTION OF PARCELS The Land is that certain real property located in the Seller of Palm Springs, County of Riverside, State of California, more particularly described as follows: C r'a - C116 EXHIBIT "A" TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY Purchase Agreement for CVHC Lots.wpd 05/19/4 1 EXHIBIT"B" APPRAISED VALUE OF THE PARCELS The Appraised Value of each of the Parcels, as determined by an appraisal completed April 21, 2004 with the effective date of value of April 16, 2004 is described as follows: Property Location APN Value Estimate Lot 183 Palm Vista Drive 669-383-021 $22,000 Lot 187 Palm Vista Drive 669-385-002 $22,000 Lot 117 Palm Vista Drive 669-386-004 $23,000 Lot 224 Las Vegas Road 669-395-017 $23,000 Lot 225 Las Vegas Road 669-383-018 $23,000 C C4. Jftw 7 Purchase Agreement for CVHC Lots.wpd 05/18/4 2 EXHIBIT "C" GRANT DEED RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: CITY OF PALM SPRINGS, CALIFORNIA 3200 East Tahquitz Canyon Way Palm Springs, California 92263 Attn: City Clerk Space Above this Line Reserved for Use by Recorder (EXEMPT FROM RECORDING FEE PER GOV.CODE§6103) GRANT DEED For a valuable consideration, receipt of which is hereby acknowledged, Coachella Valley Housing Coalition, a California Non-Profit Corporation hereby grants to the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a California municipal corporation the following real property in the City of Palm Springs, County of Riverside, State of California, described as follows: APN: 669-383-021 SUBJECT TO ALL EASEMENTS AND RIGHTS OF WAY OF RECORD IF ANY. and described in Exhibit "1" attached hereto and incorporated herein, by reference subject to the existing easements, restrictions and covenants of record thereon (the "Property"). IN WITNESS WHEREOF, the undersigned has executed this Grant Deed on this day of 2004. By: John Mealey By: Notarization on following pages. EXHIBIT"C" TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY Purchase Agreement for CVHC Lots.wpd 05/18/4 1 STATE OF COUNTY OF By: On before me, DATE the undersigned, a Notary Public in and for said County and State, personally appeared proved to me on the basis of satisfactory evidence to be the personally known to me (or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)acted, executed the instrument. WITNESS my hand and official seal. _(Seal) Purchase Agreement for CVHC Lots.wptl 05/18/4 -Z- STATE OF COUNTY OF By: On before me, DATE the undersigned, a Notary Public in and for said County and State, personally appeared proved to me on the basis of satisfactory evidence to be the personally known to me (or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. ^(Seal) CAA dma )& Purchase Agreement for CVHC Lots.wpd 05/18/4 -3- 4. USE OF THE SITE. Participant covenants and agrees that it shall devote the Site to hotel use which is consistent with the Redevelopment Plan, the applicable zoning restrictions, and this Agreement. 5. ENFORCEMENT. 5.1. Events of Default. In the event either party defaults in the performance or observance of any covenant, agreement or obligation set forth in this Agreement, and if such default remains uncured for a period of thirty (30) days after written notice thereof shall have been given by the non-defaulting party, or, in the event said default cannot be cured within said time period, the defaulting party has failed to commence to cure such default within said thirty (30) days and diligently prosecute said cure to completion, then the non-defaulting party shall declare an event of default to have occurred hereunder. 5.2. Remedies. The Agency's sole remedy for Participant's violation of this Agreement shall be termination, in which case Participant shall have no farther rights hereunder. Participant specifically acknowledges that Agency is entering into this Agreement for the purpose of assisting in the redevelopment of the Site and not for the purpose of enabling Participant to speculate with land. 5.3. No Waiver. Waiver by either party of the performance of any covenant, condition or promise shall not invalidate this Agreement, nor shall it be considered a waiver of any other covenant, condition or promise. Waiver by either party of the time for performing any act shall not constitute a waiver of time for performing any other act or an identical act required to be performed at a later time. The delay or forbearance by either party in exercising any remedy or right as to any default shall not operate as a waiver of any other default or of any rights or remedies or to deprive such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 5.4. Rights and Remedies are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by any parry of one or more of its rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by another party. 5.5. Attorneys' Fees. In the event of litigation between the parties arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys' fees and other costs and expenses incurred in addition to whatever other relief to which it may be entitled. A) -6- 1003/012/30897.02 EXHIBIT "1" LEGAL DESCRIPTION OF PARCEL The Reservoir Parcel is located in the City of Palm Springs, County of Riverside, State of California, more particularly described as follows: Purchase Agreement for CVHC Lots.wpd 05/18/4 -4- RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS APPROVING AN AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY WITH COACHELLA VALLEY HOUSING COALITION ON FIVE PARCELS FOR INCLUSION IN THE DESERT HIGHLAND GATEWAY INFILL HOUSING PROGRAM WHEREAS, the Community Redevelopment Agency of the City of Palm Springs (the "Agency") has established an affordable housing setaside fund in accordance with Section 33000 et. seq. of the California Health and Safety Code; and WHEREAS, the funds are earmarked for the acquisition, construction, or rehabilitation of affordable housing to benefit the community; and WHEREAS, the Agency wishes to purchase five vacant properties located owned by Coachella Valley Housing Coalition ("Seller") in the Desert Highland Gateway constituent area of Merged Redevelopment Project Area No. 1, more particularly described in Exhibit "A" to this Resolution ("Property"); and WHEREAS, Seller acquired Parcel 669-383-021 on June 30, 1995 by Document No. 213541; acquired Parcel 669-385-002 on April 28, 1995 by Document No. 135821; acquired Parcel 669- 386-004 on April 28, 1995 by Document No. 134239; acquired Parcel 669-395-017 on December 28, 1994 by Document No. 480822; and acquired Parcel 669-383-018 on July 1, 1995 by Document No. 248029. WHEREAS,the Agency commissioned a fair market appraisal of the Parcels and received a report dated April 21, 2004 and has offered the appraised value; and WHEREAS, the Agency will include the parcels in the moderate-income infill program as a way of writing down the land cost for qualified families; and WHEREAS, funds for the purchase of the Property are available in the Agency's Low/Moderate Income Housing Fund - Desert Highland Infill Program, NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows: SECTION 1. The Agreement for Purchase and Sale of Real Property between the Agency and Coachella Valley Housing Coalition for five Parcels in the Desert Highland Gateway area, more particularly described in Exhibit "A", is hereby approved in a form acceptable to the Agency Counsel. SECTION 2. The purpose of the purchase is the potential inclusion of the property in an infill housing program being developed for the construction of for-sale detached single family homes for lower and moderate income households in the Highland-Gateway constituent area of Merged Project Area No. 1. CCL C1 - b SECTION 3. The purchase is to be funded from the Agency's Low/Moderate Income Housing Fund. SECTION 4. The Executive Director, or his designee, is hereby authorized to execute on behalf of the Agency the necessary documents to complete the approved purchase. ADOPTED this day of 12004. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Executive Director REVIEWED &APPROVED EXHIBIT "A" LEGAL DESCRIPTION OF PARCELS The Land is that certain real property located in the Seller of Palm Springs, County of Riverside, State of California, more particularly described as follows: