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HomeMy WebLinkAbout5/1/2002 - STAFF REPORTS DATE: MAY 1, 2002 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT CANCEL AN OWNER PARTICIPATION AGREEMENT, APPROVED BY COMMUNITY REDEVELOPMENT AGENCY RESOLUTION 1157 RECOMMENDATION: It is recommended that the Community Redevelopment Agency cancel an Owner Participation Agreement (OPA), previously approved by Resolution No. 1157 on December 19, 2001. BACKGROUND: The Agency approved an Owner Participation Agreement with PS Apartments LLC on December 19, 2001, agreeing to provide $150,000 in Agency assistance through its Low/Mod Fund for a 16-unit apartment project, in return for rent restrictions on 15 oil'the units. The OPA has not been fully executed at this date and therefore is not in effect; the Owners instead have opted to sell the property to a buyer that will rehabilitate the units without Agency assistance. This frees up $150,000 of Low/Mod funds to be used for other worthwhile projects. In order for the agreement to be cleared out of the City Clerk's system, the Agency must vote to cancel the agreement. Consequently, the proposed ,,resolution attached cancels th)OPA which was never executed. JOHN S. AYMO Directo of Com �nD ity & Economic; Development AP PROVED Executive Director F ATTACHMENTS: 1. Resolution REVIEWED BY DEPT. OF FINANCE -. r V CQU -«-- RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, CANCELLING AN OWNER PARTICIPATION AGREEMENT WITH PS APARTMENTS, LLC ON A PARCEL AT 555 & 585 COTTONWOOD ROAD AND 556 & 594 CHUCKWALI-A ROAD (MERGED PROJECT AREA #1, FORMERLY PROJECT AREA 9-13) APPROVED BY AGENCY RESOLUTION NO. 1157 - - - - - - - - -- - - - - - WHEREAS, on December 19, 2001, the Agency approved Resolution No. 1157 setting forth approval to enter into an Owner Participation Agreement with PS Apartments, LLC, for the rehab of a 16-unit apartment complex at 555 & 585 East Cottonwood Road and 556 & 594 East Chuckwalla Road, in Merged Project Area #1, formerly Project Area 9-B; and WHEREAS the Owners have determined that their best course of action is to sell the property rather than participating with the Agency on the rehab; NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, California, that the Owner Participation Agreement approved by Resolution No. 1157 on December 19, 2001, is hereby cancelled. ADOPTED this day of_ , 2002. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF CITY OF PALM SPRINGS By: Assistant Secretary Executive Director REVIEWED AND APPROVED: Cf - �--�