HomeMy WebLinkAbout11/19/2003 - STAFF REPORTS (2) DATE: NOVEMBER 19, 2003
TO: COMMUNITY REDEVELOPMENT AGENCY & CITY COUNCIL
FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT
JOINT PUBLIC HEARING APPROVING AMENDMENT NO. 1 TO A DISPOSITION AND
DEVELOPMENT AGREEMENT WITH VISTA SUNRISE APARTMENTS, LP AND MBA
DEVELOPMENT CORP. TO CLARIFY DEEDS OF TRUST AND AMEND OTHER ITEMS
FOR THE PURPOSE OF OBTAINING PROJECT FINANCING FOR THE
CONSTRUCTION OF THE DESERT AIDS PROJECT HIV/AIDS HOUSING PROJECT
AND THE PALM SPRINGS FAMILY CARE CENTER LOCATED WEST OF SUNRISE
WAY SOUTH OF VISTA CHINO ROAD
RECOMMENDATION:
It is recommended that the City and Agency approve Amendment No. 1 to a
Disposition and Development Agreement with Vista Sunrise Apartments, LP and
MBA Development Corp.. The DDA provided up to $1,300,000 (One Million Three
Hundred Dollars) in Agency financial assistance and the contribution of 1.23 acres
of City-owned land (via the Agency) for the construction of an 85-unit low-income,
special needs apartment complex serving persons with HIV/AIDS, referred to as
the DAP HIV/AIDS Apartments, and the development of the Palm Springs Family
Care Center, west of Sunrise Way and south of Vista Chino Road.
SUMMARY:
This resolution approves Amendment No. 1 to a Disposition and Development
Agreement with the developers of the Desert AIDS Project (DAP) HIV/AIDS
Housing Project. The DDA provides Agency assistance in the amount of
$1,300,000, and contributes a 1.23 acre parcel of City-owned land (valued at
$205,000) to the project, with the Agency to reimburse the City at a future date, to
assist the project with the Low Income Housing Tax Credit application process.
The DDA Amendments clarify a number of terms in the Deed of Trust which were
left open at time of the original approval because of the ongoing discussions
between the Developer and Desert Healthcare District, which was contributing the
bulk of the land. In addition, the Amendment allows for changes in the Deeds of
Trust (one Deed for the financing assistance, one for the land) to allow for the
application and use of other financing sources, such as state Multifamily Housing
Program (MHP)funds,which require different loan structures from the subordinate
financing sources such as the Agency.
BACKGROUND:
Agency members are familiar with the project as proposed by Desert AIDS Project
and McCormack Baron Salazar, Inc., which was approved by the City Council in
July 2003 along with the original DDA. The project consists of a County-run Family
Care Center and 85-units of special needs housing restricted to residents with
HIV/AIDS.
The project has a variety of different-size apartments, from studios to 1- and 2-
bedrooms, with the majority of units 1-bedroom. a /t
Agency financial participation in the project made the developer's LIHTC
application much stronger and make the project more likely to be built. In the July
round,the project received a perfect score from the California Tax Credit Allocation
Commission, but because of the weighting in that round toward projects in Los
Angeles County, did not receive an allocation of tax credits. The developer has
since received an MHP commitment which would allow the project to go forward in
the near future without needing to reapply for tax credits. The deal remains
structured with the financial assistance and the land contribution flowing to the
partnership (Vista Sunrise Apartments, LP); in addition, the partnership has a
separate agreement with the Desert Healthcare District for a long-term lease of the
bulk of the project site. Finally, the County of Riverside has committed $1,500,000
in HOME funds to close the financial gap in the project.
Most of the terms of the DDA remain the same, though language specific to the
Low Income Housing Tax Credit Program will be broadened to include other
financing programs. Once the project receives its financing, the Agency will Grant
Deed the property to the partnership. The Agency will retain reverter rights if the
Developer fails to proceed or complete the project and record a Deed of Trust
against the property to ensure compliance with the terms of the amended DDA.
The project has not changed and the Developer commits to building the project as
proposed, including the architectural upgrades, noise buffering, quality
landscaping, and other components. The project shall remain restricted to
residents with HIV/AIDS; the case management services shall be provided by
Desert AIDS Project. A Regulatory Agreement with the Agency will assure that the
units will count towards the ity's low and moderate income housing goals.
J HN S RAYM D
D ec of Comm nnity & Economic Development
APPROVED '�>
Executive Director --
ATTACHMENTS:
1. Resolution
2. Amendment No. 1 to a Disposition and Development Agreement
3. Public Hearing Notice
REVIEWED BY DEPI OF FINANCE
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A464C Amendment 1
AMENDMENT NO. 1 TO A DISPOSITION AND
DEVELOPMENT AGREEMENT WITH VISTA SUNRISE
APARTMENTS, LP TO EFFECTUATE THE DEVELOPMENT
OF LOW-INCOME HIV/AIDS APARTMENT COMPLEX AND
FAMILY CARE FACILITY WEST OF SUNRISE WAY, SOUTH
OF VISTA CHINO ROAD
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, DAP HIV/AIDS Housing Project, proposed for low-income persons with HIV/AIDS,
and Family Care Center, operated by the County of Riverside, was approved on July 16, 2003
by the Palm Springs City Council; and
WHEREAS, the property developers, McCormack Baron Salazar, Inc. and Vista Sunrise
Apartments, LP, sought Agency financial assistance to cover a portion of the development cost;
and
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs, at its July 16,
2003 meeting, conducted a joint public hearing and approved a Disposition and Development
Agreement with McCormack Baron Salazar, Inc. and Vista Sunrise Apartments, LP; and
WHEREAS, the property developers submitted a Low Income Housing Tax Credit (LIHTC)
application to the California Tax Credit Allocation Committee for the July 24, 2003 application
round and requested Agency assistance to strengthen the application, but were unsuccessful in
receiving a LIHTC commitment; and
WHEREAS, the property developers have applied for state Multifamily Housing Program funds
for the development of the project, which requires minor modifications to the Agency financing
structure; and
WHEREAS, Section 33430 of the Community Redevelopment Law allows that an agency may,
"for purposes of redevelopment, sell, lease, for a period not to exceed 99 years, exchange,
subdivide, transfer, assign, pledge, encumber by mortgage, deed of trust, or otherwise, or
otherwise dispose of any real or personal property or any interest in property;" and
WHEREAS, the owners still agree to restrict, though a Regulatory Agreement approved as an
attachment to the Disposition and Development Agreement, the rents on 49% of the proposed
units (42)to levels affordable to families with incomes no more than 60% of Area Median Income
(AMI).
NOW THEREFORE, the Parties mutually desire to amend the Disposition and Development
Agreement as follows:
1. That the Agency Property Note securing the Agency-contributed property in the
amount of its fair market value is hereby added.
J0002. That Attachment No. 5, the Grant Deed, is hereby added. 1
c,OA- a.)
3. That the Rider to Property Deed of Trust and Assignment of Rents is hereby added.
IN WITNESS WHEREOF, the parties have executed and entered into this Amendment as of the
date stated below.
DATED this day of 2003.
THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS,
a public body, corporate and politic
ATTEST:
By:
Assistant Secretary Executive Director
REVIEWED AND APPROVED
Aleshire &Wynder, LLP
By:
Agency Counsel
Vista Sunrise Apartments, LP
By:
Its:
AGENCY PROPERTY NOTE
$205,000 Palm Springs, California
FOR VALUE RECEIVED, VISTA SUNRISE APARTMENTS, L.P., a California
limited partnership ("Maker"), promises to pay the COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic ("Holder")
at 3200 E. Tahquitz Canyon Way, Palm Springs, California 92262, or at such other address as
Holder may direct from time to time in writing, the sum of Two Hundred and Five Thousand
Dollars ($205,000.00) (the "Note Amount'), pursuant to the terms set forth herein. All sums
payable hereunder shall be payable in lawfiil money of the United States of America. This
Promissory Note ("Agency Property Note") is made in comiection with the provision by the
Holder of funds equal to the Agency Property Note pursuant to that certain Disposition and
Development Agreement by and among Maker and Holder, dated as of , 2003 (the
"Agreement').
1. Interest Rate. Simple interest shall accrue on the Note Amount from the date of
disbursement at the rate of three percent (3%)per annum, or as determined necessary to
maximize the tax credit equity,but in no event greater than the maximum interest rate permitted
by law.
2. Tenn. The term of this Agency Property Note shall be concurrent with the fifty-
five year covenants in the Regulatory Agreement and Declaration of Covenants and Restrictions
attached as Attachment No. 9 to the Agreement.
3. Repaa vent. The principal amount of the Note Amount, plus all interest then
accrued upon the Note Amount, shall be immediately due and payable upon (i) any default of the
Agreement, which is not cured within the time set forth in Section 801 of the Agreement.
However, in the event that each of the following conditions have been satisfied: (i) the
Maker has operated or has caused the Restricted Units to be rented at Affordable Rent to
Qualified Tenants and has provided Certificates of Continuing Program Compliance
substantially in conformity with the Agreement for the fifty-five (55) year period commencing
with the issuance of a Certificate of Completion for the rental mots; and (ii) the Maker (or a
Permissive Transferor) is, as of such fifty-fifth anniversary (the "Fiftieth Anniversary"),
currently in compliance with all provisions of the Agreement, including the Attachments thereto
and this Agency Property Note, then as of each anniversary of the issuance of Certificate of
Completion, the amounts then outstanding on this Agency Property Note shall be reduced as
follows: the Agency shall determine (i) the amount then outstanding on this Agency Property
Note (the "Computation Base"), and (ii) such amounts ("Adjustment Credit Amounts") as would
fully amortize such Computation Base, together with such additional interest as may continue to
accrue at the Interest Rate, over the,remaining years of the tern of this Agency Property Note.
The amount payable to the Agency pursuant to this Agency Property Note shall be reduced and
forgiven by the amount of the Adjustment Credit Amount for each calendar year that the rental
miits are rented at Affordable Rent to Qualified Tenants in conformity with the Agreement,
including without limitation the provision of Certificates of Continuing Program Compliance.
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In the event the rental units are operated in conformity with the Agreement throughout
the fifty-five (55) year period commencing with the completion of the rental units, the Holder
shall cancel and return the Note, and shall execute and deliver to the Maker for recordation a
request for full release and reconveyance of the "Property Deed of Trust."
4. Prepayment of Agency Property Note Amount. Maker may prepay to Holder the
frill Note Amount, together with all accrued and unpaid interest thereon at the rate set forth in
Section 1 hereof, at any time prior to the due date of the Note Amount without penalty.
5. Application of Payments. Each payment hereunder shall be credited first to
interest then accrued and the remainder, if any, to principal. Interest shall cease to accrue upon
principal so credited.
6. Security. This Agency Property Note is secured by a deed of trust by and
between Maker, as truster and Holder, as beneficiary (the "Deed of Trust" Attachment No. 7 to
the Agreement).
7. Holder May Assign. Holder may, at its option, assign its right to receive payment
under this Agency Property Note without necessity of obtaining the consent of the Maker.
8. Maker Assignment Prohibited. In no event shall Maker assign or transfer any
portion of this Agency Property Note without the prior express written consent of the Holder,
which consent may be given or withheld in the Holder's sole discretion.
9. Attorneys' Fees and Costs. In the event that any action is instituted with respect
to this Agency Property Note, the non-prevailing party promises to pay such sums as a court may
fix for court costs and reasonable attorneys' fees. Holder's right to such fees shall not be limited
to or by its representation by staff counsel, and such representation shall be valued at customary
and reasonable rates for private sector legal services.
10. Non-Waiver. Failure or delay in giving any notice required hereunder shall not
constitute a waiver of any default or late payment, nor shall it change the time for any default or
payment.
11. Successors Bound. This Agency Property Note shall be binding upon the parties
hereto and their respective heirs, successors and assigns.
12. Definitions. Any terms not separately defined herein shall have the same
meanings as set forth in the Agreement.
13. Non-Recourse. Notwithstanding anything to the contrary herein contained, (i) the
liability of Maker shall be limited to its interest in the Site and any rents, issues, and profits
arising from the Site and, in addition, with respect to any obligation to hold and apply insurance
proceeds, proceeds of condemnation or other monies hereunder, any such monies received by it
to the extent not so applied in accordance with the terms of this Agency Property Note; (ii) no
other assets of Maker shall be affected by or subject to being applied to the satisfaction of any
liability which Maker may have to Holder or to another person by reason of this Agency
Property Note; and (iii) any judgment, order, decree or other award in favor of Holder shall be
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collectible only out of, or enforceable in accordance with, the terms of this Agency Properly
Note by termination or other extinguishment of Maker's interest in the Site. Notwithstanding the
foregoing, it is expressly understood and agreed that the aforesaid limitation on liability shall in
no way restrict or abridge Maker's continued personal liability for: (A) fraud or willful or grossly
negligent misrepresentation made by Maker in connection with this Agency Property Note or
any of the Agency Agreements; (B) misapplication of (a) proceeds of insurance and
condemnation or (b) rent received by Maker under rental agreements entered into for any portion
of the Site after default of the Note; (C) the retention by Maker of all advance rentals and
security deposits of tenants not refunded to or forfeited by such tenants; or (D) the
indemnification undertakings of Maker under the Agency Agreements.
"MAKER"
VISTA SUNRISE APARTMENTS, L.P.
a California limited partnership
BY: MBA Development Corp.
Its General Partner
Date Name:
Title:
"HOLDER"
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM
SPRINGS,
a public body, corporate and politic
Date Chairman
ATTEST:
Agency Secretary
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ATTACHMENT NO. 5
VISTA SUNRISE DDA
FREE RECORDING REQUESTED BY AND
AFTER RECORDATION RETURN TO:
Community Redevelopment Agency
of the City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Attn: Executive Director
(Space Above This Line For Recorder's Office Use Only)
GRANT DEED
For valuable consideration, the receipt of which is hereby aclaiowledged,
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS, a public body, corporate and politic, of the State of California ("Grantor"), acting to
carry out the Redevelopment Plan for the merged area No. 1 Palm Springs Redevelopment
Project ("Redevelopment Plan"), under the Community Redevelopment Law of the State of
California, hereby grants to VISTA SUNRISE APARTMENTS, L.P., a California limited
partnership ("Grantee"), the real property ("Property") legally described in Exhibit "A" attached
hereto and incorporated herein by this reference.
Unless stated otherwise, all capitalized terns herein shall have the same meaning as set
out in the DDA(described in Section 1 herein below).
Section 1. Uses.
For a period commencing upon [date of recording of Gant Deed] and expiring fifty five
years from occupancy of the Restricted Units (the "Affordability Period"), the Property may only
be used for the construction and residential use of housing subject to the terms of, that certain
Disposition and Development Agreement dated as of , 2003 between Grantor and Grantee
(the "DDA"), a copy of which is on file with the Agency as public record and is incorporated
herein by reference, and the Redevelopment Plan.
Section 2. Obligation to Refrain from Discrimination.
The Developer covenants by and for itself, and any successors in interest, that there shall
be no discrimination against or segregation of any person, or group of persons, on account of
sex, race, color, religion, creed, marital status, ancestry or national origin of any person. All
such deeds, leases or contracts shall contain or be subject to substantially the following
nondiscrimination or non-segregation clauses:
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(A) In deeds: "The grantee herein covenants by and for himself, his heirs,
executors, administrators and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of, any person or
group of persons on account of sex, race, color, creed, religion, marital status,
handicap, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee
himself or any person claiming under or through him, establish or permit any such
practice or practices of discrimination of segregation with reference to the
selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessees or vendees in the land herein conveyed. The foregoing covenants shall
nm with the land."
(B) In leases: "The lessee herein covenants by and for himself, his heirs,
executors, administrators and assigns, and all persons claiming under or through
him, and this lease is made and accepted upon and subject to the following
conditions:
That there shall be no discrimination against or segregation of any person
or group of persons on account of sex, race, color, creed, national origin or
ancestry, in the leasing, subleasing, transferring, use, or enjoyment of the land
herein leased nor shall the lessee himself, or any person claiming under or through
him, establish or permit any such practice or practices of discrimination or
segregation with reference to the selection, location, number, use or occupancy, of
tenants, lessees, sublessees, subtenants or vendees in the land herein leased."
(C) In contracts: "There shall be no discrimination against or segregation of, any
person, or group of persons on account of sex, race, color, creed, religion, marital
status, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure or enjoyment of the land, nor shall the transferee himself or
any person claiming under or through him, establish or permit any such practice
or practices of discrimination or segregation with reference to the selection,
location, number, use or occupancy of tenants, lessees, subtenants, sublessees or
vendees of the land."
Section 3. Effect and Duration of Covenants.
Grantee, and any successor to Grantee, shall only be responsible for and liable for the
performance of the provisions of Sections 1, 2, and 7 during such period of time as it shall be the
owner of the Property. The Covenant concerning the right to repurchase and revest in Section 7
shall be effective up until such time as the issuance of the Certificate of Completion for the
Project and thereafter shall have no more force and effect.
Section 4. Covenants for the Benefit of Grantor.
All covenants set forth in Sections 1, 2, 3, 9, and 10 of this Deed without regard to
technical classification or designation shall be binding for the benefit of the Grantor, and such
covenants shall nm in favor of the Grantor for the entire period during which such covenants
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shall be in force and effect, without regard to whether the Grantor is or remains an owner of any
land or interest therein to which such covenants relate. The Grantor, in the event of any breach
of any such covenants, shall have the right to exercise all the rights and remedies and to maintain
any actions at law or suits in equity or other proper proceedings to enforce the curing of such
breach.
Section 5. Mortgage Protection.
No violation or breach of the covenants, conditions, restrictions, provisions or limitations
contained in this Grant Deed shall defeat or render invalid or in any way impair the lien or
charge of any mortgage or deed of trust, provided, however, that any subsequent owner of the
Property shall be bound by such remaining covenants, conditions, restrictions, limitations and
provisions, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure,
trustee's sale or otherwise.
Section 6. Amendments.
Both Grantor, its successors and assigns, and Grantee and the successors and assigns of
Grantee in and to all or any party of the fee title to the Property shall have the right to consent
and agree to changes in, or to eliminate in whole or in party, any of the covenants, easements or
restrictions contained in this Grant Deed without the consent of any tenant, lessee, easement
holder, licensee, mortgagee, trustee, beneficiary under a deed of trust or any other person or
entity having any interest less than a fee in the Property. The covenants contained in this
Grantee Deed, without regard to technical classification shall not benefit or be enforceable by
any owner of any other real property. Any amendments to the Redevelopment Plan which
change the uses or development pennitted on the Property, or otherwise change any of the
restrictions or controls that apply to the Property, shall require the written consent of Grantee or
the successors and assigns of Grantee in and to all or any party of the fee title to the Property, but
any such amendment shall not require the consent of any tenant, lessee, easement holder,
licensee, mortgagee, trustee, beneficiary under a deed of trust or any other person or entity
having any interest less that a fee in the Property.
Section 7. Right to Repurchase and Re-Vest Title to Property.
The Agency has the additional right, at its option, to reenter and take possession of the
Property, with all Improvements thereon, and terminate and revest in the Agency the estate
conveyed to the Developer, if the Developer (or its successors in the interest) shall:
1. Fail to start the construction of the hmprovements as required by this Agreement
for a period of ninety(90) days after written notice thereof from the Agency; or
2. Abandon or substantially suspend construction of the Improvements required by
this Agreement for a period of ninety (90) days after written notice thereof from
the Agency; or
3. Transfer or suffer any involuntary transfer of the Property, or any part thereof, in
violation of this Agreement and said violation is not cured within one hundred
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and twenty (120) days after the date of receipt of the written notice thereof to
Developer.
Such right to reenter, terminate and revest shall be subject to and be limited by and shall
not defeat, render invalid or limit:
1. Any mortgage or deed of mist pennitted by this Agreement; or
2. Any rights or interests provided in this Agreement for the protection of the
holders of such mortgages or deed of trust.
Upon the reverting in the Agency of title to the Property, the Agency may, but is not
required, to use its best efforts to resell the Property as soon and in such manner as the Agency
shall find feasible and consistent with the objectives of the state redevelopment law and of the
Redevelopment Plan, as it may be amended, to a qualified and responsible party or parties (as
determined by the Agency) who will assume the obligation of making or completing the
hmprovements, or such other improvements in their stead as shall be satisfactory to the Agency
or who will assume the ownership, management, and operation of the Site(s) all in accordance
with the uses specified herein and specified for the Site(s) or party thereof in the Redevelopment
Plan. Upon such resale of the Site(s), the proceeds thereof shall be applied:
1. First, to reimburse the Agency, on its own behalf or on behalf of the City, for all
costs and expenses incurred by the Agency, including, but not limited to, any
expenditures by the Agency or the City in comnection with the recapture,
management and resale of the applicable Site or party thereof (but less any
income derived by the Agency from the applicable Site or party thereof in
connection with such management); all taxes, assessments and water or sewer
charges with respect to such site or part thereof which the Developer has not aid
(or, in the event the Site is exempt from taxation or assessment or such charges
during the period of ownership thereof by the Agency, an amount, if paid, equal
to such taxes, assessments, or charges as would have been payable if such area
were not so exempt); any payments made or necessary to be made to discharge
any encumbrances or liens existing on the Site or part thereof at the time of
revesting of title thereto in the Agency, or to discharge or prevent from attaching
or being made any subsequent encumbrances or liens due to obligations, defaults
or acts of the Developer, its successors or transferees; any expenditures made or
obligations incurred with respect to the making or completion or operation and
management of the Improvements or any part thereof on the Site, or any thereof;
and any amounts otherwise owing the Agency, the Developer and its successor or
transferee; and
2. in the event additional proceeds are thereafter available, then; Second, to
reimburse the Developer, its successor or transferee, up to the amount equal to the
sum of: (a) the Purchase Price paid to the Agency by the Developer for the Site;
and (b) the costs incurred by the Developer for the development of the Site, and
for the Improvements existing on the Site at the time of the reentry and
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repossession, less, (c) any gains or income withdrawn or made by the Developer
from the Site or the Improvements thereon.
Any balance remaining after such reimbursements shall be retained by the Agency as its
sole property.
The rights established in this Section 8 are to be interpreted in light of the fact that the
Agency conveyed the Property to the Developer for development of housing available at an
affordable housing cost, to persons and families of low-to moderate-income, and not for
speculation in undeveloped land.
Section 8. Sales Transfer of Property.
Grantee covenants that he shall not make any sale, transfer, conveyance or assignment of
the Property or any part thereof or any interest therein without the prior written consent of
Grantor, in accordance with the DDA.
Section 9. Subordination.
Notwithstanding anything to the contrary contained herein, the terms and conditions
contained in this Grant Deed will be subordinated to the liens securing any financing permitted
under the DDA.
IN WITNESS WHEREOF, the Grantor and Grantee have caused this instrument to be
executed on their behalf by their respective officers thereunto duly authorized, this day of
12003.
"GRANTOR"
THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM
SPRINGS,
a public body corporate and politic
By:
Chairman
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
David J. Aleshire
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RIDER TO PROPERTY DEED OF TRUST WITH ASSIGNMENT OF RENTS
THIS RIDER TO PROPERTY DEED OF TRUST WITH ASSIGNMENT OF RENTS
("Rider") is executed this clay of , 2003, by VISTA SUNRISE
APARTMENTS, L.P., a California limited partnership, herein "Trustor," in favor of the
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public
body, corporate and politic, herein the "Beneficiary,") the same parties to that certain form
Property Deed of Trust With Assignment of Rents, of even date hereto, to which this Rider is
attached. This Rider is made a part of and is incorporated into said Property Deed of Trust. This
Rider shall supersede any conflicting term or provision of the form Property Deed of Trust to
which it is attached.
Reference is made to the following agreements and documents: (i) Agency Property Note
by and between Trustor and Beneficiary, dated on or about the date set forth above, the
repayment of which by Trustor is secured by this Property Deed of Trust (the "Agency Property
Note"); (ii) Disposition and Development Agreement by and between Trustor, and Beneficiary,
dated , 2003, providing for Trustor's development of the Property; and (iii)Regulatory
Agreement Declaration of Covenants and Restrictions, dated , 2003, by and between
Trustor and Beneficiary, providing for the use, operation, and maintenance of the Property
("Agreement Containing Covenants").
The parties hereto agree:
1. Properly. The estate subject to this Property Deed of Trust is Trustor's fee estate
in the real property legally described in the Property Deed of Trust(the "Property"). In addition,
Trustor grants to beneficiary a security interest in all of Trustor's rights, title, and interest in and
to the following:
(a) All present and future inventory and equipment, as those terms are defined
in the California Commercial Code, and all other present and future personal property of any
kind or nature whatsoever, now or hereafter located at, upon or about the Property or used or to
be used in connection with or relating or arising with respect to the Property and/or the use
thereof or any improvements thereto, including without limitation all present and future
furniture, furnishings, fixtures, goods, tools, machinery, plumbing and plumbing material and
supplies, concrete, lumber, hardware, electrical wiring and electrical material and supplies,
heating and air conditioning material and supplies, roofing material and supplies, window
material and supplies, doors, paint, drywall, insulation, cabinets, ceramic material and supplies,
flooring, carpeting, appliances, fencing, landscaping and all other materials, supplies and
property of every kind and nature.
(b) All present and future accounts, general intangibles, chattel paper, contract
rights, deposit accounts, instruments and documents as those terms are defined in the California
Commercial Code,now or hereafter relating or arising with respect to the Property and/or the use
thereof or any improvements thereto, including without limitation: (i) all rights to the payment of
money, including escrow proceeds arising out of the sale or other disposition of all or any
portion of the Property; (ii) all architectural, engineering, design and other plans, specifications
and drawings relating to the development of the Property and/or any construction thereon; (iii)
all use permits, occupancy permits, construction and building permits, and all other permits and
approvals required by any governmental or quasi-governmental authority in connection with the
development, construction, use, occupancy or operation of the Property; (iv) any and all
agreements relating to the development, constriction, use, occupancy and/or operation of the
Property between Trustor and any contractor, subcontractor, project manager or supervisor,
architect, engineer, laborer or supplier of materials; (v) all lease, rental or occupancy agreements
and payments received thereunder; (vi) all names raider which the Property is now or hereafter
known and all rights to carry on business under any such names or any variant thereof; (vii) all
trademarks relating to the Property and/or the development, construction, use, occupancy or
operation thereof; (viii) all goodwill relating to the Property and/or the development,
constriction, use, occupancy or operation thereof, (ix) all insurance proceeds and condemnation
awards arising out of or incidental to the ownership, development, construction, use, occupancy
or operation of the Property; (x) all reserves, deferred payments, deposits, refunds, cost savings,
bonds, insurance policies and payments of any kind relating to the Property; (xi) all loan
commitments issued to Trustor in connection with any sale or financing of the Property; (xii) all
water stock, if any, relating to any Property and all shares of stock or other evidence of
ownership of any part of or interest in any Property that is owned by Trustor in common with
others; and(xiii)all supplements, modifications and amendments to the foregoing.
(c) All fixtures located upon or within the Property or now or hereafter
attached to, installed in, or used or intended for use in connection with the Property, including
without limitation any and all partitions, generators, screens, awnings, boilers, furnaces, pipes,
plumbing, elevators, cleaning, call and sprinkler systems, fire extinguishing apparatus and
equipment, water tanks, heating ventilating, air conditioning and air cooling equipment, and gas
and electric machinery and equipment.
(d) All present and fuuture accessories, additions, attachments, replacements
and substitutions of or to any or all of the foregoing.
(e) All cash and noncash proceeds and products of any and all of the
foregoing, including without limitation all monies, deposit accounts, insurance proceeds and
other tangible or intangible property received upon a sale or other disposition of any of the
foregoing.
2. Obligations Secured. Trustor makes this grant and assignment for the purpose of
securing the following obligations ("Secured Obligations"):
(a) Property Payment to Beneficiary of all indebtedness at any time owing
under the terms of the Agency Property Note;
(b) Property Payment and performance of all obligations of Trustor unnder this
Property Deed of Trust, the Disposition and Development Agreement, and the Agreement
Containing Covenants;
(c) Payment and performance of all future advances and other obligations of
Trustor or any other person, firm, or entity with the approval of Trustor, may agree to pay and/or
perform (whether as principal, surety or guarantor) for the benefit of Beneficiary, when the
1003l013127$690 2
obligation is evidenced by a writing which recites that it is secured by this Property Deed of
Trust; and
(d) All modifications, extensions and renewals of any of the obligations
secured hereby,however evidenced.
3. Obligations. The term "obligations" is used herein in its broadest and most
comprehensive sense and shall be deemed to include, without limitation, all interest and charges,
prepayment charges, late charges and fees at any time accruing or assessed on any of the Secured
Obligations.
4, Incorporation. All terms of the Agency Property Note and the Secured
Obligations are incorporated herein by this reference. All persons who may have or acquire an
interest in the Property shall be deemed to have notice of the terms of all of the foregoing
documents.
5. Mortgagee-in-Possession. Neither the assignment of rents set forth in the
Property Deed of Trust nor the exercise by Beneficiary of any of its rights or remedies hereunder
shall be deemed to make Beneficiary a "mortgagee-in-possession" or otherwise liable in any
manner with respect to the Property, unless Beneficiary, in person or by agent, assumes actual
possession thereof. Nor shall appointment of a receiver for the Property by any court at the
request of Beneficiary or by agreement with Trustor, or the entering into possession of the
Property by such receiver, be deemed to make Beneficiary a "mortgagee-in-possession" or
otherwise liable in any manner with respect to the Property.
6. No Cure. In the event Beneficiary collects and receives any rents under the
Property Deed of Trust upon any default hereof, such collection or receipt shall in no way
constitute a curing of the default.
7. Opportunity to Cure. Trustor's failure or delay to perform any term or provision
of this Property Deed of Trust constitutes a default under this Property Deed of Trust; however,
Trustor shall not be deemed to be in default if (i) Trustor cures, corrects, or remedies such
default within thirty (30) days after receipt of a notice specifying such failure or delay, or (ii) for
such defaults that cannot reasonably be cured, corrected, or remedied within thirty (30) clays, if
Trustor commences to cure, correct, or remedy such failure or delay within thirty (30) days after
receipt of a written notice specifying such failure or delay, and diligently prosecutes such cure,
correction or remedy to completion.
Beneficiary shall give written notice of default to Trustor, specifying the default
complained of by Trustor. Copies of any notice of default given to Trustor shall also be
delivered to any permitted lender and the limited partner of Trustor, if they have requested in
writing to receive such notice. Beneficiary may not institute proceedings against Trustor until
thirty (30) days after giving such notice or such longer period of time as may be provided herein.
In no event shall Beneficiary be precluded from exercising remedies if its security becomes or is
about to become materially jeopardized by any failure to cure a default or the default is not cured
within sixty(60) days after the first notice of default is given.
1003/013/27869v1 3
Except as otherwise expressly provided in this Property Deed of Trust, any failure or
delay in giving such notice or in asserting any of its rights and remedies as to any default shall
not constitute a waiver of any default, nor shall it change the time of default, nor shall it deprive
either parry of its rights to institute and maintain any actions or proceedings which it may deem
necessary to protect, assert or enforce any such rights or remedies.
In the event of any inconsistency in the terms of this Rider and the provisions set forth in
the standard Property Deed of Trust recorded in the Recorder's Office of the County of
Riverside, the terms of this Rider shall control.
8. Possession Upon Default. Subject to Section 7 above, upon the occurrence of a
default, and after delivery of notice and the expiration of all applicable cure periods, Beneficiary
may, at its option, without any action on its part being required and without in any way waiving
such default, take possession of the Property and have, hold, manage, lease and operate the salve,
on such terms and for such period of time as Beneficiary may deem proper, and may collect and
receive all rents and profits, with full power to make, from time to time, all alterations,
renovations, repairs or replacements thereto as may seem proper to Beneficiary, and to apply
such rents and profits to the payment of(a) the cost of all such alterations, renovations, repairs
and replacements, and all costs and expenses incident to taking and retaining possession of the
Property, and the management and operation thereof, and keeping the same properly insured; (b)
all taxes, charges, claims, assessments, and any other liens which may be prior in lien or payment
of the Note, and premiums for insurance, with interest on all such items; and(c)the indebtedness
secured hereby, together with all costs and attorney's fees, in such order or priority as to any of
such items as Beneficiary in its sole discretion may determine, any statute, law, custom or use to
the contrary notwithstanding. Any amounts received by Trustor or its agents in the performance
of any acts prohibited by the terns of this assignment, including, but not limited to, any amounts
received in connection with any cancellation,modification or amendment of any lease prohibited
by the terns of this assignment and any rents and profits received by Trustor after the occurrence
of a default shall be held by Trustor as trustee for Beneficiary and all such amounts shall be
accounted for to Beneficiary and shall not be commingled with other funds of the Trustor. Any
person receiving any portion of such trust funds shall receive the same in trust for Beneficiary as
if such person had actual or constructive notice that such funds were impressed with a trust in
accordance therewith.
9. Receiver. In addition to any and all other remedies of Beneficiary set forth under
this Property Deed of Trust or permitted at law or in equity, if a default shall have occurred,
Beneficiary, to the extent permitted by law and without regard to the value, adequacy or
occupancy of the security for the Agency Property Note and other sums secured hereby, shall be
entitled as a matter of right if it so elects to the appointment of a receiver to enter upon and take
possession of the Property and to collect all rents and profits and apply the same as the court may
direct, and such receiver may be appointed by any court of competent jurisdiction by ex parte
application and without notice, notice of hearing being hereby expressly waived. The expenses,
including receiver's fees, attorneys' fees, costs and agent's compensation, incurred pursuant to the
power herein contained shall be secured by this Property Deed of Trust.
10. Security Agreement. This Property Deed of Trust also constitutes a Security
Agreement with respect to all personal property in which Beneficiary is granted a security
1003/013/27869v1 4
interest hereunder, and Beneficiary shall have all of the rights and remedies of a secured parry
under the Uniform Commercial Code as enacted in California (the "California Uniform
Commercial Code") as well as all other rights and remedies available at law or in equity. Trustor
hereby agrees to execute and deliver on demand and hereby irrevocably constitutes and appoints
Beneficiary the attorney-in-fact of Trustor, to execute, deliver and, if appropriate, to file with the
appropriate filing officer or office such security agreements, financing statements, continuation
statements or other instruments as Beneficiary may request or require in order to impose, perfect
or continue the perfection of, the lien or security interest created hereby. Trustor and Beneficiary
agree that the filing of a financing statement in the record normally having to do with personal
property shall never be construed as in any way derogating from or impairing the lien of this
Property Deed of Trust and the intention of Trustor and Beneficiary that everything used in
connection with the operation or occupancy of the Property is and at all times and for all
purposes and in all proceedings, both legal and equitable, shall be regarded as real property or
goods which are or are to become fixtures, irrespective of whether(i) any such item is physically
attached to the buildings and improvements on the Property; (ii) serial numbers are used for the
better identification of certain equipment items capable of being filed by the Beneficiary; or (iii)
any such item is referred to or reflected in any such financing statement so filed at any time.
Such mention in the financing statements is declared to be for the protection of the Beneficiary in
the event any court or judge shall at any time hold that notice of Beneficiary's priority of interest
must be filed in the California Commercial Code records to be effective against a particular class
of persons, including, but not limited to, the federal government and any subdivision or entity of
the federal government. Trustor covenants and agrees to reimburse Beneficiary for any costs
incurred in filing such financing statement and any continuation statements.
Upon the occurrence of default hereunder, and after delivery of notice and the expiration
of all applicable cure periods, Beneficiary shall have the right to cause any of the Property which
is personal property and subject to the security interest of Beneficiary hereunder to be sold at any
one or more public or private sales as permitted by applicable law, and Beneficiary shall further
have all other rights and remedies, whether at law, in equity, or by statute, as are available to
secured creditors under applicable law, specifically including without limitation the right to
proceed as to both the real property and the personal property contained within the Property as
permitted by Uniform Commercial Code Section 9501(4), including conducting a unified sale
thereof. Any such disposition may be conducted by an employee or agent of Beneficiary or
Trustee. Any person, including both Trustee and Beneficiary, shall be eligible to purchase any
part or all of such property at any such disposition.
This Property Deed of Trust constitutes a fixture filing under Sections 9313 and 9402(6)
of the California Uniform Commercial Code, as amended or recodified from time to time.
11. Notices, Demands, and Communications. Formal notices, demands, and
communications between Trustor and Beneficiary shall be given either by (i) personal service,
(ii) delivery by reputable document delivery service such as Federal Express that provides a
receipt showing date and time of delivery, or (iii) mailing in the United States mail, certified
mail,postage prepaid, return receipt requested, addressed to:
1003/013/27869vl 5
To Beneficiary: Community Redevelopment Agency
of the City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
Attn: Executive Director
With a copy to: Aleshire & Wynder, LLP
18881 Von Karman Avenue, Suite 400
Irvine, California 92612
Attn: David J. Aleshire,Esq.
To Trustor: VISTA SUNRISE APARTMENTS, L.P.,
a California limited partnership
c/o McCormack Baron Salazar
1401 E. I" Street, 2nd Floor
Los Angeles, CA 90033
Attn: General Partner
Notices personally delivered or delivered by document delivery service shall be deemed
effective upon receipt. Notices mailed shall be deemed effective on the second business day
following deposit in the United States mail. Such written notices, demands, and communications
shall be sent in the same manner to such other addresses as either parry may from time to time
designate by mail.
[SIGNATURES TO FOLLOW]
1 0 03/0 1 3127 8 69v1 6
IN WITNESS WHEREOF, Trustor has executed this Rider on the date of Trustor's
acknowledgment hereinbelow, to be effective for all purposes as of the day and year first set
forth above,
TRUSTOR:
VISTA SUNRISE APARTMENTS,L.P.,
a California limited partnership
By: MBA Development Corp.
Its General Partner
By:
Its
10031013/27869vl 7
EXHIBIT "A"
LEGAL DESCRIPTION
Real property located in the City of Palm Springs, County of Riverside, State of
California, legally described as:
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
7:00 p.m., Wednesday, November 19, 2003, to consider the following:
Amendment No. 1 to a Disposition and Development Agreement ("DDA") between Vista
Sunrise, L.P. and the Community Redevelopment Agency to the City of Palm Springs,
for a project located on the south side of
Vista Chino Road near Sunrise Way
Palm Springs, California 92262
The Community Redevelopment Agency of the City of Palm Springs ("Agency")
proposes to amend a DDA with Vista Sunrise, L.P. for the purpose of developing an 85-unit low-
income, special needs apartment complex adjacent to the Desert AIDS Project offices and a
County-run Family Medical Center on Sunrise Way. The nature of the amendments are to
restructure the promissory note for the $1,300,000 in Agency Low Income Housing Setaside
funds to conform to the requirements of the primary financing program, California's Multifamily
Housing Program (MHP), as well as more clearly defining the nature of the Agency contribution
of the 1.23 acre Agency-owned parcel to project. The latter is necessary because of the long-
term lease of a portion of the project site with the Desert Healthcare District and the necessity of
adjusting lot lines.
The general partner in the project is McCormack Baron Salazar, Inc., a housing
developer located in Los Angeles. The limited partner is Desert AIDS Project, which is
contributing land to the project and will provide case management services for the residents of
the housing development.
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 prior to the Public Hearing.
Members of the public may view this document and all referenced documents in the
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 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.
PATRICIA A. SANDERS, City Clerk
PUBLISHED: November 4 and November 11, 2003
Proof of Publication
In Newspaper
STATE OF CALIFORNIA
County of Riverside
Jacquelin K. Welch says:
1. 1 am a citizen of the United States, a NOTICE OF JOINT PUBLIC HEARING
resident of the City of Desert Hot NOTICE IS HEREBY GIVEN, that the Community
State of Redevelopment Agency of the City of Palm Springs and the Springs, County of Riverside
City of Palm Springs will held a Joint Public Hearing In the City
California, and over the age of 18 years. Council Chambers, located at 3200 Tahgwlz Canyon Way,
Palm Springs, Califomia 92262 beginning at 7:00 pm,
2. 1 am the Research & Production Wednesday, November 19, 2(1 to consider the following
a Amendment No. 1 to a Disposition and Development Assistant of The Public Record
Agreement ("DDA") between Vista Sunrise, L.P. and the
newspaper of general circulation printed Community Redevelopment Agency to the City of Palm
_ SPrings,.fOLa project located on the south side of Vista Chine
and published in the City of Palm Read near Sunrise Way,Palm Springs,California 92262
Springs, Count of Riverside State of The Community Redevelopment Agency of the City of
y Palm Springs('Agency')proposes to amend a DDA with Vista
California. Said The Public Record is a Sunrise, L P. for the purpose of developing an 65.umt law-
income, special needs apartment complex adjacent to the
newspaper of general circulation as that Desert AIDS Project offices and a County-run Family Medical
Code Center on Sunrise Way.The nature of the amendments are to
term is defined in Government restructure the promissory note for the$1,300.000 in Agency
section 6000, its status as such having Low Income Housing Setaside funds to conform Io the regulre-
ments of the primary financing program,Caldomia's Multifamily
been established by judicial decree of the Housing Program(MHP),as well as more clearly defining the
Superior Court of the State of California in nature of the Agency contribution of the 1.23 acre Agency-
parcel arcel to project The latter is necessary because of the
and for the County of Riverside in long-term lease of a portion of the project site with the Desert
Healthcare District and the necessity of adjusting lot lines.
Proceeding No. Indio 49271 , dated The general partner in the project is McCormack Baran
March 31 1987 entered in Judgment SIkeemlnc.,a housing developer located in Los Angeles The
Palmer
limited is Desert AIDS Project, which is contributing
Book No. 129, page 355, on March 31 , land to the project and will provide casemanagement services
for the residents of the housing development.
1987. An interested persons are invited to attend the Public
3. The Public Record is a newspaper of Hearing and express opinions on the item listed above.If you
challeng athe nature of the proposed action in court,you may
general circulation ascertained and be limited to raising only those issues you or someone else
raised at the Public Hearing described in this notice,or in will-
established inthe City of Palm Springs in ten correspondence delivered to the City Clerk,at the address
the County of Riverside, State of shed above,at or prior to the Public Hearing
Members of the public may view this document and all
California, Case No. RIC 358286, Filed referenced documents in the Community Redevelopment
Department, City Hall, and submit written comments to the
June 8, 2001. Community Redevelopment Agency at ar prior to the
4. The notice of which the annexed is a Community Redevelopment Agency Meeting at or prior to the
Public hearing described In this notice
true printed copy, was published in the Furtherinformation,including a copy of the Amendment
and Resolution,prepared in accordance with Health and Safety
newspaper on the following publication Code Section 33433,is available in the Office of the City Clerk,
dates to wit: at the above address
/s/PATRICIA A SANDERS,
November 4, 2003 November 4,11,2003 City Clerk
November 11, 2003
certify under penalty of perjury that the -
above is true and correct.
Dated at Palm Springs, California,
this 11TH day of November 2003.
Jacquelin K. Welch
Research & Production Assistant
+� L 6
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING
AMENDMENT NO. 'I TO A DISPOSITION AND
DEVELOPMENT AGREEMENT WITH VISTA SUNRISE
APARTMENTS, LP TO EFFECTUATE THE DEVELOPMENT
OFA LOW-INCOME HIV/AIDS APARTMENT COMPLEXAND
FAMILY CARE FACILITY WEST OF SUNRISE WAY,SOUTH
OF VISTA CHINO ROAD
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, DAP HIV/AIDS Housing Project, proposed for low-income persons with HIV/AIDS,
and Family Care Center, operated by the County of Riverside, was approved on July 16, 2003
by the Palm Springs City Council; and
WHEREAS, the property developers, McCormack Baron Salazar, Inc, and Vista Sunrise
Apartments, LP, sought Agency financial assistance to cover a portion of the development cost;
and
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs, at its July 16,
2003 meeting, conducted a joint public hearing and approved a Disposition and Development
Agreement with McCormack Baron Salazar, Inc. and Vista Sunrise Apartments, LP; and
WHEREAS, the property developers submitted a Low Income Housing Tax Credit (LIHTC)
application to the California Tax Credit Allocation Committee for the July 24, 2003 application
round and requested Agency assistance to strengthen the application, but were unsuccessful in
receiving a LIHTC commitment; and
WHEREAS, the property developers have applied for state Multifamily Housing Program funds
for the development of the project, which requires minor modifications to the Agency financing
structure; and
WHEREAS, Section 33430 of the Community Redevelopment Law allows that an agency may,
"for purposes of redevelopment, sell, lease, for a period not to exceed 99 years, exchange,
subdivide, transfer, assign, pledge, encumber by mortgage, deed of trust, or otherwise, or
otherwise dispose of any real or personal property or any interest in property;" and
WHEREAS, the owners still agree to restrict, though a Regulatory Agreement approved as an
attachment to the Disposition and Development Agreement, the rents on 49% of the proposed
units (42)to levels affordable to families with incomes no more than 60% of Area Median Income
(AMI); and
WHEREAS, a Notice of Public Hearing concerning the Amendment No. 1 to the Disposition and
Development Agreement was published in accordance with applicable law; and
(f ��
WHEREAS, the City Council and Agency have considered the staff report, and all the
information, testimony and evidence provided during the public hearing on November 19, 2003.
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of
Palm Springs, as follows:
SECTION 1. The above recitals are true and correct and incorporated herein.
SECTION 2. Pursuant to the California Environmental Quality Act (CEQA), the
Community Redevelopment Agency finds as follows:
a) The City Council adopted a Mitigated Negative Declaration for the
project based on the preparation of an Initial Study and the
recommendation of the Planning Commission. Mitigation
measures are included in the project design and adopted as part
of the Conditions of Approval for the Project.
b) The Agency finds that the Planning Commission adequately
discussed the potential significant environmental effects of the
proposed project (land use, traffic/circulation, parking, air quality,
noise, aesthetics, geology/soils, water quality, drainage, public
utilities, public services, archaeological/historic resources, public
controversy, and light and glare). The Community Redevelopment
Agency further finds that the Mitigated Negative Declaration
reflects its independent judgment.
SECTION 3. The Agency does hereby find and determine as follows:
a) The project was originally approved by the City Council on July 16,
2003, In June, 2003 the Developers requested Community
Redevelopment Agency assistance.
b) The parcel was acquired by the Community Redevelopment
Agency for the purposes of providing low- and moderate-income
housing on it in 1976. A portion of the acquired parcel was used
for the development of Vista Serena Co-op and Vista Del Monte
Co-op. Redevelopment Law prohibits an Agency from holding land
acquired for affordable housing for longer than five years; hence,
it was sold to the City of Palm Springs in October, 2001.
c) The Developer applied unsuccessfully for 9% tax credits (LIHTC),
but has received a commitment in County HOME funds in the
amount of $1,500,000 and a commitment of state MHP funds
sufficient to develop the project. Agency financial participation in
the project is still required to ensure the project will be built.
d) The DDA effectuates the purposes of the Community
Redevelopment Law by assisting in the development of housing
affordable to families with incomes below 60% of Area Median
Income and preserving the affordability of that housing for a period
of 55 years.
f) The DDA effectuates the purposes of the Community
Redevelopment Law as it is intended to eliminate blight and
promote the health, safety and general welfare of the people of
Palm Springs.
SECTION 4. The proposed project is consistent with the Amended and Restated
Redevelopment Plan for Merged Project Area #1, the Five Year
Implementation Plan and Housing Compliance Plan for the Palm Springs
Community Redevelopment Agency, insofar as this project will provide
additional housing for persons of low- or moderate income within the City
of Palm Springs.
SECTION 5. Based on foregoing reasons, this Amendment No. 1 to the Disposition and
Development Agreement with Vista Sunrise Apartments, LP, is hereby
approved and incorporated herein by this reference.
SECTION 6. The Executive Director, or his designee, is hereby authorized to execute
on behalf of the Agency the Disposition and Development Agreement and
other documents necessary to the Agreement, and make minor changes
as may be deemed necessary, in a form approved by Agency Counsel.
ADOPTED this day of 2003.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Chairman
REVIEWED & APPROVED AS TO FORM
lj ��r /� • I r� J
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA,CONCURRING WITH THE
COMMUNITY REDEVELOPMENT AGENCY
REGARDING THE APPROVAL OF AMENDMENT
NO. 1 TO DISPOSITION AND DEVELOPMENT
AGREEMENT WITH VISTA SUNRISE
APARTMENTS, LP
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 in the matter of approving
Amendment No. 1 to a Disposition and Development Agreement with Vista Sunrise, LP.
ADOPTED this day of 2003.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM