HomeMy WebLinkAbout2026-06-09; City Council; Resolution 2026-107Exhibit 1 RESOLUTION NO. 2026-107
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE ALL REQUIRED
DOCUMENTS NECESSARY TO COMPLETE THE SALE AND PROPERTY
TRANSFER OF 945 CHESTNUT AVENUE TO THE CHESTNUT APARTMENTS, LP,
THROUGH A CARRYBACK LOAN FOR THE APPRAISED VALUE
WHEREAS, on Dec. 24, 2014, the City of Carlsbad executed a loan of $2,646,000 from the city’s
Housing Trust Fund to Solutions Chestnut, LLC, a subsidiary of Solutions for Change, Inc. (collectively
Solutions for Change), to acquire Chestnut Apartments, a 16-unit apartment complex at 945 Chestnut
Avenue, to provide affordable housing for homeless families; and
WHEREAS, Solutions for Change could not fulfill the obligations identified in the 2014 loan
documents recorded against the Property and decided to turn the property over to the City of Carlsbad
in lieu of loan repayment; and
WHEREAS, on May 21, 2024, the City Council adopted Resolution No. 2024-111, authorizing the
City Manager to execute all documents necessary to complete the city’s acquisition of the property;
and
WHEREAS, on May 21, 2024, the City Council adopted Resolution No. 2024-113, declaring the
property to be exempt surplus land pursuant to California Government Code Section 54221(f)(1)(A) as
property planned to be purchased and transferred pursuant to California Government Code Section
37364; and
WHEREAS, on Sept. 23, 2025, the City Council adopted Resolution No. 2025-219, authorizing
Kingdom BP LLC, a subsidiary of Kingdom Development, Inc. to manage and operate the Chestnut
Apartments at 945 Chestnut Avenue; and
WHEREAS, on Sept. 23, 2025, the City Council adopted Resolution No. 2025-220, authorizing a
forgivable loan not to exceed $500,000 in Community Development Block Grant funds to Kingdom BP
LLC, as operator of the Chestnut Apartments, to make immediate repairs at the Chestnut Apartments
affordable housing project; and
WHEREAS, the city wishes to sell the Chestnut Apartments, located at 945 Chestnut Avenue,
Carlsbad, CA, 92008, to a subsidiary of Kingdom Development, Inc. at the appraised value of the
property. The city desires to lend the proceeds necessary to acquire the property from the City of
Carlsbad. The loan will be secured by a deed of trust recorded on the property; and
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WHEREAS, the use of the property will be restricted by a regulatory agreement recorded against
the property for a period of 55 years to uses that exceed the minimum affordability requirements
pursuant to California Government Code Section 37364; and
WHEREAS, Kingdom Development, Inc. has created a limited partnership, The Chestnut
Apartments, LP, that will be the legal entity to borrow the funding and acquire and operate the
property.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2.The proposed action is categorically exempt from environmental review under
California Environmental Quality Act, or CEQA, Guidelines Section 15301 because it
involves the leasing, operation, maintenance and minor alteration of existing facilities
with negligible or no expansion of the existing or former use. No exceptions to the
categorical exemption as set forth in CEQA Guidelines Section 15300.2 or Carlsbad
Municipal Code Section 19.04.070(C) apply.
3.That the City Manager, or designee, is authorized to execute and record all required
documents, to the satisfaction of the City Attorney, necessary to complete the sale and
property transfer of 945 Chestnut Avenue for the current appraised value to The
Chestnut Apartments, LP, a limited partnership created and managed by Kingdom
Development, Inc.
4.That the City Manager, or designee, is authorized to execute and record all required loan
documents, to the satisfaction of the City Attorney, necessary to complete a carryback
loan in the amount of the current appraised value to The Chestnut Apartments, LP for
the acquisition of 945 Chestnut Avenue.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 9th day of June, 2026, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
______________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
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