HomeMy WebLinkAbout2005-05-27; City Council; 18135; Acquistion of Property 6480 El Camino Real1
AB# 18.135
MTG. 05/27/2005
CITY OF CARLSBAD
AGENDA BILL
TITLE:
ACQUISITION OF PROPERTY
6480 EL CAMINO REAL
DEPT. HlRED I
RECOMMENDED ACTION:
That the City Council ADOPT Resolution No. 2005 -162 APPROVING an
appropriation of funds and acceptance of the Grant Deed for the City bf Carlsbad’s acquisition of
property located at 6480 El Camino Real for affordable housing purposes.
ITEM EXP LANATl ON :
On March 15, 2005, the City Council approved the assignment of real estate agreement from Affirmed
Housing Group for property consisting of approximately 2.63 acres and located within the City of
Carlsbad at El Camino Real and Cassia Street. This assignment allowed Affirmed Housing Group to
transfer their purchase contract dated September 24, 2001 to the City of Carlsbad for the subject
property. The City Manager was authorized to execute said Assignment and any related documents to
complete the purchase.
Staff has completed all appropriate actions to proceed with said acquisition. At this time, the
appropriation of funds for the acquisition must be approved and the City Clerk instructed to accept the
Deed.
General Plan Consistency:
On May 4, 2005, the Planning Commission made a determination that the purchase of the subject
property is consistent with the goals, objectives and policies of the City of Carlsbad’s General Plan in
that it provides a special needs affordable housing development for very low and extremely low income
family households.
Environmental Review:
The action to acquire the subject property is exempt from environmental review under CEQA. The
property is being acquired for the purpose of construction of affordable housing. Therefore, the
acquisition is exempt from environmental review pursuant to Section 15326 of the State CEQA
Guidelines.
On August 10, 2004, the City Council adopted a Negative Declaration for the development of the future
affordable housing project on the property.
Because the purchase of the property will ultimately involve the use of federal HOME and CDBG funds,
a review under the National Environmental Protection Act (NEPA) must also be completed. This review
will be completed separately for the project subsequent to this action but prior to the commitment of,
and/or release of, any federal funding for the project related costs such as the property acquisition, pre-
development expenses and/or off-site improvements.
FISCAL IMPACT:
The contract price for the property is $1,330,000. With the appraisal, ALTA Survey, taxes, escrow and
recording fee, the total cost of the acquisition is estimated to be $1,355,000. The property is being
purchased under no threat of condemnation.
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Page 2 of AB# 18,135
Funding is currently available from the Housing Trust Fund to fund the acquisition. Funding from the
Federal Community Development Block Grant (CDBG) Program, and the Federal Home Investment
Partnership Program Fund (HOME) Program will be used at a later date to reimburse the Housing Trust
Fund. Staff is requesting an appropriation of $1,355,000 to complete the transaction. Initially, this
funding will come from the Housing Trust Fund. Once the NEPA environmental review is complete and
the US Department of Housing and Urban Development has issued its release of funds, a total of
$446,977 in CDBG funds and $25,596 in HOME funds will be drawn down from HUD and used to
reimburse the Housing Trust Fund for a portion of the purchase price. To date a $10,000 deposit from
the Housing Trust Fund has been placed into escrow. Prior to the close of escrow, the City will wire the
balance of the purchase price ($1,320,000) to the escrow holder. The funds will be released to the
seller upon execution of the Certificate of Acceptance for the Deed by the City Clerk.
EXHl BITS:
1.
2. Grant Deed City Council Resolution No. 2005 - 162
d
CITY COUNCIL RESOLUTION 2005-162
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING AN APPROPRIATION OF
FUNDING FOR ACQUISITION OF PROPERTY AT 6480 EL CAMINO
REAL BY THE CITY OF CARLSBAD TO DEVELOP HOUSING FOR
LOWER INCOME AFFORDABLE HOUSING PURPOSES
WHEREAS, the City of Carlsbad has a significant need for affordable housing
oughout the community as set forth in both its Housing Element of the General Plan and the
y’s federally-required Consolidated Plan;
WHEREAS, the City Council previously approved the assignment of a real estate
ase contract from the Affirmed Housing Group to the City of Carlsbad to purchase property
te the appropriate documents; and
t 6480 El Camino Real for affordable housing purposes and authorized the City Manager to
WHEREAS, City has completed all appropriate reviews of the acquisition and is
repared to proceed with the acquisition of the property at 6480 El Camino Real, without threat
f condemnation and at a fair market value, for the purpose of developing affordable housing
unities for lower income households; and
WHEREAS, the Planning Commission, based on the facts presented to it found that the
cquisition of the subject property is consistent with the General Plan; and
WHEREAS, based on the facts presented to the City Council, the council has determined
g Element of the General Plan; and
WHEREAS, acquisition of the subject site and the ultimate development of an affordable
at the acquisition of the subject property is consistent with the goals and objectives of the
project will increase affordable housing inventory within the City of Carlsbad.
WHEREAS, per Section 15326 of the State CEQA Guidelines, the acquisition of the
roperty is exempt from environmental review under CEQA because the acquisition is for the
urpose of developing affordable housing; and
WHEREAS, the City Council adopted a Negative Declaration for the future affordable
development on August 10,2004.
WHEREAS, an Environmental Assessment required by 24 CFR 58, Section 58.36 of the
ational Environmental Protection Act will be completed separately for the project subsequent to
action but prior to the release of any federal funding for the project.
NOW, THEREFORE, BE IT HEREBY RESOLVED, by the City Council of the City
as follows:
1. The above recitations are true and correct. 26
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The City Council previously authorized the City Manager to execute the Assignment of
Real Estate Purchase contract to acquire the property at 6480 El Camino Real for
affordable housing purposes.
The City Council hereby APPROVES the appropriation of fbnding in the amount of one
million three hundred fifty-five thousand dollars ($1,355,000) from the Housing. Trust
Fund for the purpose of acquiring property to be used to develop affordable housing to
serve lower income households, subject to all terms and conditions set forth in the
previously executed purchase agreement and related escrow instructions.
The City Council hereby APPROVES the use of twenty-five thousand five hundred and
ninety-six dollars ($25,596) in Federal Home Investment Partnership Program Funds
(HOME) and four hundred forty-six thousand nine hundred and seventy-seven dollars
($446,977) in Community Development Block Grant Funds (CDBG) to reimburse the
City of Carlsbad’s Housing Trust Fund for a portion of the purchase price to finance the
acquisition of the subject property for lower income affordable housing purposes upon
completion of the required NEPA review and approval of the release of funds by the U.S.
Department of Housing and Urban Development.
The Finance Director is hereby authorized to forward the appropriate funding to the
escrow holder to complete the City of Carlsbad’s acquisition of the property located at
6480 El Camino Real.
The City Council authorizes the City Manager to execute all appropriate acquisition
documents as deemed appropriate and subject to prior approval of the City Attorney.
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7. The City Council authorizes the City Clerk to execute the Certificate of Acceptance of the
Deed for the subject property, upon preparation by the Escrow Officer and on behalf of
the City of Carlsbad.
PASSED, APPROVED, AND ADOPTED at a Special meeting of the City
ouncil of the City of Carlsbad, California, held on the 27th day of May , 2005 by the
Illowing vote, to wit:
AYES: Council Members Hall, Kulchin, Packard, Sigafoose
NOES: None
ABSENT: Council Member Lewis
ABSTAIN: None
MATT HALL, Mayor Pro-Tern
TTEST:
Laren R. Kundtz, Asyistant City Clerk
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May 26 2005 2:47PM City of Carlsbad ____._ - 760 720 2037
06/26/2006 13:64 FAX 6tB 544 6229 CHICAGO TITLE MI ESCROW
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2965 ROO36VELT STRERT, SUITE B
CARLSBAD, CA 92000-2369
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05/26/2006 15:14 FAX 618 514 6229
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CEICACO TITLE C&I ESCROW
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LEQAL DES~IPTIOH gXHIBIT
W 215-021-27
BEaI"INl3 AT TEE NDRTHZA&l%RLY CORNER OF BOtRli 10 ACRES 01;' SAID FRACTIONAL
DlORTBEAI3T QUARTER OF TEE SO-T QUARTER1 TELEIICE &lOW TEIE 1;MRTflEICLY LINE OF SAID
1800-1, AS DE6CRIBED IN A DBED TO THZ COUNTY OF BAN DIMK), R8(:ORDm DE- 113, 1969
ROAD SmtVBY NO. 1800-1 TO AN INTBBSBCTION WITH THE Sozfia LXPJE OF SAXD SOW 10 ACRES;
TEiENCE ISASTBIRLY SAID SOUTB LINB: TO THE BAST LINE OF SAIL1 NORTHEAST QuARnUt OF
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AS Frm NO. a3oasa OF OFFTCIA~ RECORDS; mnm SO~~LY ALOWA EASTE:IZLY LINE 017 SAID
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CERTIFICATION FOR ACCEPTANCE OF GRANT DEED
This is to certify that the interest in real property conveyed by the
Grant Deed dated May 26,2005, from Anthony Bons and Dicky Bons and
Anthony Bons and Dicky Bons, as Trustees of the Bons Charitable
Remainder Unitrust, U/D/T November 23, 1998, to the City of Carlsbad, a
Municipal Corporation, is hereby accepted by the City Council of the City of
Carlsbad, California, pursuant to Resolution 2005 -162, adopted on May
27, 2005, and the grantee consents to the recordation thereof by its duly
authorized officer.
DATED: May 27,2005
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kdn R.Wnjdz, C
Assistant City Clew
(SEAL)
1200 Carlsbad Village Drive 0 Carlsbad, CA 92008-1989 0 (760) 434-2808 @