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HomeMy WebLinkAbout2019-03-26; City Council; ; Acquisition of 6218 Liberty Place, an affordable housing resale unit, and appropriation of community development block grant funds in the amount of $210,000 for said purcCA Review ~ CITY COUNCIL ~ Staff Report Meeting Date: To: From: Staff Contact: Subject: March 26, 2019 Mayor and City Council Scott Chadwick, City Manager Debbie Fountain, Community & Economic Development Director debbie.fountain@carlsbadca.gov or 760-434-2935 Acquisition of 6218 Liberty Place, an affordable housing resale unit, and appropriation of community development block grant funds in the amount of $210,000 for said purchase of real property. Recommended Action Adopt a Resolution authorizing the City Manager to execute all required documents to complete acquisition of 6218 Liberty Place, an affordable housing resale unit, appropriating community development block grant funds in the amount of $210,000 and authorizing the Administrative Services Director to appropriate and disburse said funds to complete said acquisition of real property. Executive Summary As part of the City of Carlsbad's loan documents for homes purchased through the city's lnclusionary Housing Program, the city entered into a Resale Restriction and Option to Purchase Agreement ("Agreement") on May 1, 2006 with the owner of property at 6218 Liberty Place. This agreement allows the city the option to purchase the property at a restricted price at the time the owner provides notice of intent to sell or transfer ownership of the property du ring the 30-year term of the Agreement. On March 13, 2018 (Resolution No. 2018-037), the City Council amended its Community Development Block Grant (CDBG) Program Action Plan allowing for the city to exercise its option to purchase affordable housing resales at a restricted price and authorizing the use of CDBG funds for this acquisition. The owner of the property at 6218 Liberty Place provided notice to the city of the intent to sell on January 14, 2019, and the city subsequently notified the owner on the same day of its intent to exercise its option to purchase the property at a restricted price calculated to be $187,300. The city and owner subsequently entered into a purchase agreement, and escrow has been opened with the intent of completing the property acquisition by April 12, 2019, as required in the Agreement. At this time, staff is recommending that the City Council authorize the City Manager to execute all required documents to complete the purchase of the subject property, which includes Acceptance of the Grant Deed, and authorize the appropriation and expenditure of federal community development block grant funds to complete said acquisition; staff is recommending an appropriation of $210,000 to cover the purchase price and all related escrow and other processing fees. March 26, 2019 Item #1 Page 1 of 14 The Carlsbad Municipal Code does not provide authority to city staff to proceed with acquisition of property, or accept the Grant Deed for transfer of property ownership, without prior approval by the City Council. This action by the City Council to approve the acquisition and appropriate the CDBG funds for this acquisition will allow for completion of the acquisition process for the subject affordable housing resale unit; the city will own the property at the end of this transaction and intends to resell it at a later date to an eligible low-income buyer. Discussion In 1993, the city adopted an inclusionary housing ordinance that requires all residential development to include 15% of the total number of homes to be affordable to low income households. The residential developer has the option to produce rental or ownership product to satisfy the inclusionary requirements. The Bressi Ranch developer produced ownership product to satisfy its inclusionary housing obligation; a total of 100 condomin iums were developed and sold to low income buyers. As part of this sale, the developer transfered its financial subsidy (difference between market value of the home and restricted low-income price) to the City of Carlsbad; the city then recorded a silent second loan agreement (in the amount of subsidy) and a Resale Restriction and Option to Purchase Agreement against the property to ensure that the property remains affordable for a 30-year term, as required by the city's inclusionary ordinance. At the time an owner of a restricted condominium decides to sell the home, the city has the first option to purchase the home at a restricted price (based on low income maximums at the time of the notice to sell). On March 13, 2018, the City Council approved an amendment to its Community Development Block Grant (CDBG) Program Action Plan authorizing city staff to respond with the city's intent to exercise its option to purchase resales of affordable, restricted price homes as they become available on the market, and to utilize CDBG funds to purchase these resale units. This action would allow the city to recapture an affordable home and then resell it to an eligible low-income buyer. As the owner, the city will be able to place additional restrictions on the property and/or resale at a lower price, if necessary, to create more affordable housing opportunities; this effort will also assist with implementation of the Homeless Response Plan and the city's goals to create more affordable housing opportunities for rehousing purposes. The owner of the affordable, restricted condominium at 6218 Liberty Place provided notice to the city of intent to sell the unit on January 14, 2019. On January 14, 2019 the city responded with its intent to exercise its option to purchase the home. The restricted sales price was calculated at $187,300 and a purchase agreement was executed by the city and the owner and deposited into escrow. Per the requirements of the Resale Restriction and Option to Purchase Agreement, the city indicated its intent to complete acquisition of the resale unit within 90 days of the city's notice of intent to exercise its purchase option, as required per the Agreement. To proceed with the subject acquisition, the City Council is being asked to authorize the City Manager to execute all acquisition documents, including the Grant Deed, and to authorize the Administrative Services Director to appropriate and expend CDBG funds in an amount not to exceed $210,000 for purchase of the affordable, restricted home and related acquisition costs. March 26, 2019 Item #1 Page 2 of 14 Fiscal Analysis The homeowner purchased the home at Mulberry, Bressi Ranch in 2006 at the restricted, subsidized price of $148,600. As set forth in the Resale Restriction and Option to Purchase Agreement, the restricted price for the city to purchase the affordable residential property from the homeowner at 6218 Liberty Place in 2019 is $187,300, based on a 26% increase in low income levels over the past 13 years. It is anticipated that there will be additional acquisition costs including escrow fees. Staff is requesting that the City Council approve a total appropriation of federal CDBG funds in the amount of $210,000 to cover all acquisition costs for the subject property; the City Council has approved a set-aside of $750,000 to date in CDBG funds for this purpose. The Resale Restriction and Option to Purchase Agreement states that the 6% real estate agent fee ($11,238) is to be paid to the City of Carlsbad at close of escrow, since the city acts as the real estate agent for the purposes of this sales transaction. These funds will be deposited to the CDBG fund to allow for additional purchases of these resale homes in the future. Next Steps All acquisition documents will be executed by the City Manager, and the city will complete the purchase of the subject affordable, restricted home and subsequently record the Grant Deed to transfer ownership of the home to the City of Carlsbad by no later than April 12, 2019. The home will then be resold to another low income household at a later date. Environmental Evaluation (CEQA) Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the meaning of CEQA in that it has no potential to cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, and therefore, does not require environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. City Council Resolution 2. Form of Grant Deed March 26, 2019 Item #1 Page 3 of 14 RESOLUTION NO. 2019-037 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO EXECUTE ALL REQUIRED DOCUMENTS TO COMPLETE ACQUISITION OF 6218 LIBERTY PLACE, CARLSBAD, CALIFORNIA, AN AFFORDABLE HOUSING RESALE UNIT, APPROPRIATING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS IN THE AMOUNT OF $210,000 AND AUTHORIZING THE CITY'S ADMINISTRATIVE SERVICES DIRECTOR TO APPROPRIATE AND DISBURSE SAID FUNDS TO COMPLETE PURCHASE OF THE REAL PROPERTY. WHEREAS, the City Council of the City of Carlsbad, California has determined that it desires to exercise its option to purchase an affordable housing resale unit located at 6218 Liberty Place, Carlsbad, California as set forth in the Resale Restriction and Option to Purchase Agreement executed between the city and property owner on May 1, 2006; and WHEREAS, the property owner for 6218 Liberty Place provided notice to the city on January 14, 2019 indicating the owner's intent to sell or transfer ownership of the restricted affordable housing unit at the noted location; and WHEREAS, the city responded to the property owner of the restricted affordable housing unit on January 14, 2019 indicating its intent to exercise its option to purchase the property at 6218 Liberty Place; and WHEREAS, the City Council approved a change in policy on March 13, 2018 (Resolution No. 2018-037) and amended its Community Development Block Grant (CDBG) Program Action Plan authorizing city staff to respond with the city's intent to exercise its option to purchase resales of affordable, restricted price homes as they become available on the market, and to utilize CDBG funds to purchase these resale units; and WHEREAS, the purchase approval by City Council allows for the city to recapture an affordable home and extend its affordability for an indefinite period of time, if so desired, and to resell it to an eligible buyer at a lower price, if necessary, to implement the city's affordable housing goals and policies; and WHEREAS, the purchase approval by City Council will also assist with implementation of the city's Homeless Response Plan and the city's goals to create more affordable housing opportunities. March 26, 2019 Item #1 Page 4 of 14 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. That the City Council hereby authorizes the City Manager to execute all acquisition documents, including the Acceptance of the Grant Deed (Attachment A), for the purchase of the affordable housing unit located at 6218 Liberty Place, Carlsbad, California at the restricted purchase price of $187,300. 3. That the City Council hereby authorizes the city's Administrative Services Director to appropriate and expend Community Development Block Grant funds in an amount not to exceed $210,000 for purchase of the affordable, restricted home and related acquisition costs for the property located at 6218 Liberty Place, Carlsbad, California. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 26th day of March 2019, by the following vote, to wit: AYES: NOES: ABSENT: Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton None. None. (SEAL) March 26, 2019 Item #1 Page 5 of 14 RECORDING REQUESTED BY: Chicago Title Company When Recorded Mail Document and Tax Statement To: Debbie Fountain The City of Carlsbad, a municipal corporation 1200 Carlsbad Village Drive, Attn: Homebuyer Program Carlsbad, CA 92008 Escrow Order No.: 73719000557 APN/Parcel ID(s): 213-190-05-48 The undersigned grantor(s) declare(s) DOC# 2019-0113851 1111111111111111111111111111111111111111111111111111111111111111111111 Mar 29, 2019 04:06 PM OFFICIAL RECORDS Ernest J. Dronenburg, Jr., SAN DIEGO COUNTY RECORDER FEES: $0.00 (SB2 Atkins: $0.00) PCOR: YES PAGES: 6 SPACE ABOVE THIS LINE FOR RECORDER'S USE Exempt from fee per GC 27388.1 (a) (2); recorded in connection with a transfer of real property that is a residential dwelllng to an owner-occupier. GRANT DEED 0 This transfer is exempt from the documentary transfer tax. This Grant Deed is recorded at the Request and for the Benefit of the City of Carlsbad, and is exempt from the Payment of a recordign fee pursuant to Government Code Section, 6103,27383 and 27388.1, and is exempt from the payment of documentary transfer tax pursuant to Revenue and Taxation Code Section 11922. □ The documentary transfer tax is$ D, ct> and is computed on: □ the full value of the interest or property conveyed. □ the full value less the liens or encumbrances remaining thereon at the time of sale. The property is located in 0 the City of Carlsbad. FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Richard Peterson and Sachiko . Peterson, husband and wife as joint tenants hereby GRANT(S) to The City of Carlsbad, a municipal corporation the following described real property in the City of Carlsbad, County of San Diego, State of California: For APN/Parcel ID(s): 213-190-05-48 Parcel 1: An undivided fractional interest as tenant in common in and to the Common Area of Phase 4 as described on The Mulberry at Bressi Ranch Condominium Plan, a more complete legal description attached hereto and made a part hereof marked as Exhibit A. Grant Deed SCA0000129.doc / Updated: 11.20.17 Printed: 02.28. 19 @ 12:44 PM CA-CT-FWD0-02180.055824-73719000557 March 26, 2019 Item #1 Page 6 of 14 APN/Parcel ID(s): 213-190-05-48 Dated: January 18, 2019 GRANT DEED (continued) IN WITNESS WHEREOF, the ;rersigned have executed this document on the date(s) set forth below. ~L Richard Peterson Sachiko Peterson A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of ~ County of ( \ Xci.ct~ On j -= 2 Lf-2 0 \ q before m c~Notary Public, personally appeared tl Y ~Ov--) , who 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. 0~ I certify under PENAL TY OF PERJURY under the laws of the State of Califarl"lia that the foregoing paragraph is true and correct. (Seal) Grant Deed SCA0000129.doc I Updated: 11.20.17 OFFICIAL STAMP SHIRLEY O SCOTT DEWOLF NOTA,,Y PUBLIC-OREGON COMMISSION NO. 9•6655 MY COMMISSION EXPIRES JANUARY 24, 2020 Printed: 01.18.19 @ 10:05 AM CA-CT-FWDQ-02180.055824-73719000557 March 26, 2019 Item #1 Page 7 of 14 CERTIFICATE OF ACCEPTANCE (Pursuant to Government Code 27281) This is to certify that the interest in real property conveyed by the Grant Deed from RICHARD AND SACHIRO PETERSON to the City of Carlsbad, a municipal corporation (the "City"), is hereby accepted on MARCH 27, 2019, by the undersigned officer or agent on behalf of the City pursuant to authority conferred by resolution of the City Council adopted on MARCH 26, 2019, and the City Council consents to the recordation of said document in the Office oft ecorder of San Diego County, State of California. Name: SCOTT CHADWICK Its: CITY MANAGER March 26, 2019 Item #1 Page 8 of 14 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of San Diego · On ...... tv\__,_~-'-r_Lh __ A_i_._,_i_o_\9 __ before me, Mo~gen Fry, Notary Public (insert name ar:,d title of the officer) personally appeared _~ __ ott __ C_~_c\_w_·_, ct.-------"--------' who proved to me on the basis of satisfactory evidence to be the person~ whose name~) is/ai:e subscribed to the within instrument and acknowledged to me that he}~lielthey executed the same in his/i>ler,t#teir authorized capacity~, and that by his/b~r/their signature(sl on the instrument the person~. or the entity upon behalf of which the person~ acted, executed the instrument. I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature \_,~~ (Seal) March 26, 2019 Item #1 Page 9 of 14 NOTARY SEAL CERTIFICATION ( Government Code 2 73 61. 7) I CERTIFY UNDER PENAL TY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: Commission Number: JJ&;¾{o(l5 Date Commission Expires:~J- County Where Bond is Filed: ~n Dr Manufacturer or Vendor Number: _ __._A)_tJ_ ....... A-------+-J ________ _ (Located on both I ts of the nota Place of Execution: San Diego Date: J I df 1_19_ March 26, 2019 Item #1 Page 10 of 14 EXHIBIT A Order No.: 73719000557 For APN/Parcel ID(s): 213-190-05-48 A condominium unit composed of: PARCEL 1 (Common Area Interest): An undivided fractional interest as tenant in common in and to the Common Area of Phase 4 as described on the MULBERRY AT BRESSI RANCH CONDOMINIUM PLAN (the "Condominium Plan") recorded on February 11, 2005, as Document No. 2005-0117224, in the Office of the County Recorder of San Diego County, California, being a portion of Lot 1 of CARLSBAD TRACT MAP CT 03-03, in the City of Carlsbad, County of San Diego, State of California, according to Map thereof No. 14800 filed in the Office of the County Recorder of San Diego County on May 21, 2004. The undivided fractional interest hereby conveyed is the reciprocal of the number of Living Units shown on the Condominium Plan as being within Phase 4 of the Condominium Plan. EXCEPTING THEREFROM all Living Units shown on the Condominium Plan. ALSO EXCEPTING THEREFROM all oil, oil rights, minerals, mineral rights, natural gas rights and other hydrocarbons by whatsoever name known, geothermal steam and all products derived from any of the foregoing, that may be within or under the above described land ("Land"), together with the perpetual right of drilling, mining, exploring and operating therefor and storing in and removing the same from said Land or any other land, including the right to whipstock or directionally drill and mine from lands other than the Land, oil or gas wells, tunnels and shafts into, through or across the subsurface of the Land, and to bottom such whipstocked to directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines without, however, the right to drill, mine, store, explore or operate through the surface or the upper 500 feet of the subsurface of the Land as reserved by Bressi Gardenlane, LLC, by deed recorded January 25, 2005 as File No. 2005-0061440, of Official Records. PARCEL 2 (Living Unit): Living Unit No. 38 , as shown upon the Condominium Plan. PARCEL 3 (Exclusive Use Areas): The exclusive right to use any Exclusive Use Area shown on the Condominium Plan as being appurtenant to the Living Unit described in Parcel 2 above. PARCEL 4 (Easement Over Association Property): A non-exclusive easement for use and enjoyment of and access over the Association Property ("Association Property" is defined in the Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Mulberry at Bressi Ranch described below), excepting any Exclusive Use Area. The easement hereby reserved, which is appurtenant to the Living Unit described above, is for access and use of the Association Property, subject to the provisions of the Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Mulberry at Bressi Ranch and the rules and regulations of the MULBERRY AT BRESSI RANCH HOMEOWNERS ASSOCIATION, a California nonprofit mutual benefit corporation. March 26, 2019 Item #1 Page 11 of 14 To the members of the: . CIT'( COUNCIL : ACM _i.. CA _L CC _j_ f>~te ."3(:z_c.,{ 1q : CM _L COO . / March 26, 2019 To: From: Via: Council Memorandum bers of the City Council · {cityof Carlsbad Re: Honorable Mayor Hall an Elaine Lu key, Chief Oper Scott Chadwick, City Ma a Responses to Questions March 25, 2018 City ~ouncil Briefings Agenda Item No. 1-Acquisition of 6218 Liberty Place, an Affordable Housing Resale Unit Question: What are the specifications for this unit? Answer: This unit is 879 square feet, 2 bedrooms, 1 bath. Agenda Item No. 3 -Revision to Existing Full Time Job Classification and Amending the Part- Time Salary Schedule Question: Can you provide the job specification for the Open Water Lifeguard II position? Answer: The job classification for Open Water Lifegua rd 1/11 is attached (Attachment 1) and is summarized below: Open Water Lifeguard I: Safeguards an assigned area of the beach and provides preventive actions such as giving safety warnings and monitoring for safety hazards; performs safety interventions and effects rescues. in surf, open ocean, river/streams; harbor and boating areas and roadways; administers first aid and CPR when necessary; participates in drills and training courses; operates and maintains lifeguarding and rescue equipment, vehicles and watercraft; checks oxygen tanks, first aid kits and rescue tubes; performs preventive maintenance and repairs; utilizes proper resources to _ensure personal and public safety. Open Water Lifeguard II: In addition to all the duties of an Open Water Lifeguard ·r, the Open Water Lifeguard II serves as tower dispatcher by dispatching and leading a group of seasonal lifeguards engaged in lifesaving activities; requests resources as needed for rescues, medical aids, enforcement action and public service via radio; communicates and coordinates with other Public Safety resources including responding fire departments, law enforcement, adjacent lifeguard agencies and State Parks; operates the lifeguard vehicle safely and per policy in crowded beach environments; inspects equipment vehicles for serviceability and makes appropriate contacts for replacement resou.rces; oversees removal of hazards and debris from beaches and ocean; implements beach closures per policy; advises the general public of laws, rules, regulations, and safety practices governing beach use. · City Manager's Office City Hall 1200 Carlsbad Village Drive I Carlsbad, CA 92008 I 760-434-4820 t March 26, 2019 Item #1 Page 12 of 14 Honorable Mayor Hall and Members of the City Council March 26, 2019 Page 2 By adding the classification of Open Water Lifeguard II, the city will be able to provide some depth in the ability to supervise the beach or lagoon on an immediate need in the event our full-time staff is away at other calls, or if they are unavailable (breaks, lunch). The Open Water Lifeguard II will have no supervisory responsibilities, but will be able to respond, direct, and take immediate action to calls at the beach or lagoons since they are required to be certified as Emergency Medical Technicians (EMT's), a higher-level certification than required for the Open Water Lifeguard I. Agenda Item No. 4-Award an Agreement for Parks Maintenance Services to Terracare Associates, LLC. Question: What information about the best value bid process can you provide? Answer: Please see Attachment 2. Agenda Item No. 6-Advertise for Bids for Street Lighting Replacement Program Phase 1, CIP Project No. 6062 Question: What is the 15% energy savings estimated worth in dollars? Answer: Approximately $8,000 annually. Agenda Item No. 7 -Advertise for Bids for Rectangular Rapid Flashing Beacons, CIP Project No. 6070 Question 1: Can we add in flashing lights to the pavement along the crosswalks? Answer 1: The City does not currently use in-pavement lights at crosswalks. However, we can revisit their performance and effectiveness as compared to Rectangular Rapid Flashing Beacons (RRFB's) and if appropriate, supplement the improvements in the future. As of now we can report that nationwide results and effectiveness of using in-pavement lights as an added safety measure at crosswalks have been mixed. Question 2: When did requests for crosswalks at Armada Drive come in, and from where? How do we prioritize crosswalk requests? Is prioritization related to funding? Answer 2: The City has been receiving input from the public over the past seven years regarding pedestrian access across Armada Drive. Among the requesters have been a resident of Carlsbad that walks and drives on Armada Drive in the vicinity ofthe Grand Pacific Resort and Legoland and an employee at the National Association of Music Merchants who has difficulty crossing Armada Drive at Fleet Street North, Fleet Street South and the Grand Pacific Resort driveway. Based on these and other past pedestrian requests, staff analyzed marked uncontrolled crosswalks throughout the city in 2015 to determine which locations would benefitfrom the implementation of a Rectangular Rapid Flashing Beacon system. Staff looked at factors such as vehicle speed and volumes, proximity to schools, distance to closest controlled crossing, roadway width and number of lanes, pedestrian activity and collision March 26, 2019 Item #1 Page 13 of 14 Honorable Mayor Hall and Members of the City Council March 26, 2019 Page 3 history. Based on the results of this analysis, the crosswalks on Armada Drive at Fleet Street North, Fleet Street South and the Grand Pacific Resort driveway were identified as excellent candidates for RRFB enhancements. We are currently able to pursue improvements based on the results of the engineering analysis rather than having to rank them against one another due to constraints related to funding availability. Agenda Item No. 8 -Nominate a Carlsbad Resident and One Alternate for Appointment to the Palomar Airport Advisory Committee Question: As of March 12, 2019, some Carlsbad residents have already applied and been appointed to the PAAC. Please provide this information. Answer: The County of San Diego recently made the following appointments to the PAAC: • Charles Collins • Jim Swain • Dan Frazee • John O'Reilly Based on those appointments, the following individuals have not been appointed: • Ronald Lovick • Shirley Anderson • Chuck Hunter • Winthrop Cramer Attachments: Attacl=lm9Rt l = Jgb Chu;i;ificatigR for Open Water Lifeg1:1ard II A~eh111e11t 2 -Parki; MiiRtliRiiilRCQ Service ~id PmGQii infocroatiao cc: Celia Brewer, City Attorney Gary Barberio, Deputy City Manager Paz Gomez, Deputy City Manager Julie Clark, Human Resources Director Debbie Fountain, Community & Economic Development Director Chris Hazeltine, Parks & Recreation Director Marshall Plantz, Transportation Director March 26, 2019 Item #1 Page 14 of 14