HomeMy WebLinkAboutMINUTES - 04191994 - 1.179 HOUSING AUTHOR/TY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Richard J. Martinez, Executive Director
DATE: April 19, 1994
SUBJECT: PITTSBURG SENIOR HOUSING/COLUMBIA PARK MANOR: AUTHORIZING THE EXECUTIVE DIRECTOR
TO EXECUTE 1) A PURCHASE AGREEMENT TO SELL A PORTION OF HOUSING AUTHORITY OWNED
LAND TO COLUMBIA PARK MANOR FOR THE DEVELOPMENT OF LOW INCOME SENIOR HOUSING;AND
2)A FUNDING AND REGULATORY AGREEMENT WITH COLUMBIA PARK MANOR FOR THE PROJECT;AND
RESCINDING PREVIOUS AUTHORIZATION TO ENTER INTO OPTION TO PURCHASE
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
1. RECOMMENDED ACTION
A. AUTHORIZE the Executive Director to execute 1) a Purchase Agreement to sell a portion (Parcel "B") of Housing
Authority owned property located at the end of Chester Drive in Pittsburg,CA to Columbia Park Manor (CPM),a non-profit
corporation,for the development of low income senior housing;and 2) a Funding and Regulatory Agreement with Columbia
Park Manor for the project. This authorization is subject to the review and approval as to form of all documents by County
Counsel.
B. RESCIND a portion of prior Board action of February 15, 1994 which authorized the Executive Director to enter into a
purchase option with CPM.
H. FINANCIAL IMPACT:
The purchase price for Parcel "B" shall be $300,000. The Housing Authority has been asked to contribute $200,000 of that
sum to CPM for development funding for this project. If the agreement for funding is approved by the Board of
Commissioners, the resulting potential net gain to the Housing Authority will be $100,000.
III. REASONS FOR RECOMMENDATION/BACKGROUND
The Housing Authority has been working with Pittsburg Preschool Coordinating Council and Satellite Senior Homes Inc.(Co-
Sponsors)and Columbia Park Manor(CPM),the non-profit corporation formed by the Co-Sponsors,to develop the Pittsburg
Senior Housing Development,now called Columbia Park Manor. The Co-Sponsors have advised the Housing Authority that
the Co-Sponsors received an award of$5.9 million in HUD 202 funding for the 79 unit senior housing project. However,
because of anticipated development costs which are not eligible for funding under the Section 202 program, CPM is also
applying for funding under the Small Cities Grant Program with the City of Pittsburg and the Affordable Housing Program
with Citibank. These applications require acceptable site control by the applicant. At this point, CPM is requesting that
the Housing Authority enter into a Purchase Agreement for Parcel "B" as proof that CPM has an acceptable form of site
control for these funding programs. The Purchase Agreement is intended to take the place of the option originally approved
by.the Board on February 15, 1994 and,accordingly,the previous authorization to enter into the option should be rescinded.
The major deal points of the Purchase Agreement are:
1. CPM's right to purchase Parcel "B" shall remain in effect from the date of execution of the agreement until September
30, 1996.
CONTINUED ON ATTACHMENT: YES SIGNATURE � a�1 YY1c v
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S) :
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS
/ I HEREBY CERTIFY THAT THIS IS A
V/ UNANIMOUS (ABSENT = 1 TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE SHOWN.
ATTESTED 19 _ 19 9 4 .
PAL BATC�HF OR, CLERK OF
THE BOARD OF COMMISSIONERS
AND nCOUNTY ADMINISTRATOR
BY ,_l e, ,. 4� , DEPUTY
2. The total purchase price for the parcel shall be$300,000 and shall be paid in full at escrow closing for the HUD Section
202 funds and sale of the land.
3. Before title can be conveyed to CPM, CPM must comply with all Federal, State, and local requirements relative to the
development of senior housing on this site.
4. As required by Government Code section 50572, there must be a public hearing at which the transfer of the property is
approved by the Board of Commissioners. The public hearing held on April 19,1994,in connection with the approval of this
purchase agreement, is intended to be the public hearing required by Government Code section 50572.
5. The deed conveying the property shall include the findings, determinations, deed restrictions and reversionary language
required by Health and Safety Code section 34315.7 and Government Code section 50570. The deed shall also contain
additional restrictions intended to limit the use of the property to the construction, development and operation of low and
moderate income senior housing, including the requirements that if the project is not completed within five years after the
property is conveyed, or if the property ever ceases to be used for a senior housing facility for elderly persons of low and
moderate income,the property will revert to the Housing Authority. These additional restrictions shall be subordinate only
to the HUD's Section 202 regulatory and grant agreements.
6. Easements shall be executed and recorded 1) by CPM, for a storm drain for the remaining portion of the Housing
Authority's land; 2) by CPM, for the Housing Authority's and its lessee's access across Parcel "B" to Parcel "A"; and 3) by
the Authority, for CPM's access across that portion to Parcel "B".
7. The property to be conveyed is currently subject to a lease to Pittsburg Preschool Coordinating Council, Inc. which is
intended to remain in effect until the site is conveyed to CPM or,if the site is not conveyed to CPM,through April 30,2034.
CPM has also requested that the Housing Authority enter into a Funding and Regulatory Agreement with CPM, pursuant
to Health and Safety Code section 343123,to provide$200,000 for development funding for the project. The agreement shall
state that the Purchase Price for Parcel "B"shall be the sole funding source for this grant and that the Housing Authority
shall have no obligation to use any of its general funds to pay this grant nor any obligation to pay the grant if the Purchase
Price is less than$300,000. The agreement shall further state that the grant is to be paid from the Purchase Price through
the Escrow at the funding of the HUD Section 202 Capital Advance for the project. The primary purpose of this grant is
to cover those costs related to the project which are not eligible for inclusion in the HUD Section 202 Capital Advance.
CPM has advised the Authority that,with the execution of these two agreements, the applications can proceed to the next
step for the Small Cities Grant Program and the Affordable Housing Program selection processes.
IV. CONSEQUENCES OF NEGATIVE ACTION;
Should the Board of Commissioners elect not to authorize these actions,the Co-Sponsors and Columbia Park Manor would
have to seek additional funds from other sources and potentially jeopardize the HUD 202 funding for this project.
�Gt+in„
Recorded at the request of:
The Housing Authority of the
County of Contra Costa
Return to:
The Housing Authority of the
County of Contra Costa
3133 Estudillo Street
P.O. Box 2759
Martinez, CA 94553
FUNDING AND REGULATORY-AGREEMENT
BETWEEN.
THE HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
AND COLUMBIA PARK. MANOR
FOR THE DEVELOPMENT OF SENIOR HOUSING
This Funding and Regulatory Agreement ("Agreement"), dated April 19, 1994, is
made and entered into.by and between the Housing Authority of the County of Contra
Costa, a public body corporate and politic (the "Authority") and Columbia Park Manor, a
California nonprofit public benefit corporation (the "Developer").
RECITALS
A. Developer intends to become the owner of approximately 2.99 acres of
vacant land located at Chester Drive in Pittsburg, California (the"Property"), described as
follows-
Approximately 2.99 acres of vacant land, the westerly portion
of assessors parcel 073-140-415 at Chester Drive, Pittsburg,
California, shown as Parcel "B" on-Exhibit "A," and described
in Exhibit "B" attached hereto and made a part hereof.
B. The Property is currently owned by the Authority. The Developer intends
purchase the Property from the Authority pursuant to a Purchase Agreement, which is to be
executed prior to or concurrently herewith, for the purchase price of THREE HUNDRED
THOUSAND AND NO/100 DOLLARS ($300,000) (the "Purchase Price"). The sale of the
Property must be approved by the Board of Commissioners of the Housing Authority of the
County of Contra Costa following a public hearing, as required by Government Code
section 50572. Nothing contained in this Agreement is intended to predetermine the
outcome of said hearing. If approved by the Board of Commissioners, the sale and
• • -. i -- .- ?fi'''r
purchase of the Property is to be consummated through an escrow at a title company (the
"Escrow").
C. The Developer will construct and operate on the Property a 79-unit senior
housing facility for people of low or moderate income, as defined by Health and Safety
Code section 50093 (the "Project").
D. The primary funding for the Project will be obtained through a capital
advance from the Department of Housing and Urban Development ("HUD Capital
Advance") pursuant to Section 202 of the Housing Act of 1959.
E. The Developer has applied to the Authority for financial assistance in the
amount of TWO HUNDRED THOUSAND AND NO/100 DOLLARS ($200,000) for the
development of the Project on the Property pursuant to California Health and Safety Code
section 34312.3 (the "Grant").
F. The purpose of this Agreement is to set forth the terms and conditions under
which the Grant may be provided. It is the intention and agreement of the parties that the
Purchase Price shall be the sole and exclusive funding source for the Grant and that
Housing Authority shall have no obligation whatsoever to use any of its general funds or
any other funds whatsoever to pay the Grant). The Grant is to be paid from the Purchase
Price through the Escrow. Under no circumstances will the Grant be paid to the Developer
before the Purchase Price is paid to the Authority.
G. As a material inducement for the Authority to provide financial assistance to
the Developer pursuant to this Agreement, the Developer agrees to be bound and abide by
the requirements of Health and Safety Code section 34312.3 with respect to the Project
and the financial assistance to be provided by the Authority.
H. This Agreement is not intended to alter or amend the'Purchase Agreement.
This Agreement shall not be effective until the date of approval by the Board of
Commissioners.
The foregoing recitals are part of this Agreement.
NOW THEREFORE, in consideration of the mutual covenants and understandings
set forth herein, Authority and Developer agree as follows:
2
AGREEMENT
1. CONDITIONS PRECEDENT TO PAYMENT OF-GRANT: . The Developer
agrees and acknowledges that the sole source of funding for the Grant is the Purchase Price.
Developer acknowledges and agrees that Authority has no obligation whatsoever to devote
any of its general funds or any funds other than the Purchase Price to fund the Grant.
Developer further acknowledges and agrees that the Authority shall have no obligation to
pay the Grant or any portion thereof unless all three of the following conditions are met:
(i)-the Developer purchases the Property from the Authority for THREE HUNDRED
THOUSAND AND NO/100 DOLLARS_ ($300,000), without deduction.therefrom, pursuant
to the terms and conditions of the Purchase Agreement; and (ii) the Grant can be wholly
paid from the balance of the Purchase Price over and above the first ONE HUNDRED
THOUSAND AND N0/100 DOLLARS ($100,000) of the Purchase Price, which is to be
retained by the Authority; and (iii) the Grant and this Regulatory Agreement are first
approved by the Department of Housing and Urban Development (HUD).
2. NO DEFAULT: As an additional condition.precedent to the Authority's
obligation to pay the Grant, Developer must not be in default under this Agreement, under
the Purchase Agreement or under any other contract, agreement, order, loan or funding
agreement relating to the Project..
;. GRANT: Subject to the terms and conditions of this Agreement, and only to
the extent that funds in excess of ONE HUNDRED THOUSAND AND N0/100
DOLLARS ($100,000) are available from the Purchase Price, Authority agrees to grant to
Developer the sum of TWO HUNDRED THOUSAND AND NO/100 DOLLARS
($200,000) to be used for Project related development and predevelopment expenses. The
primary purpose of this Grant is to cover those costs related to the project which are not
eligible for inclusion in the HUD Capital Advance or for costs in excess of those approved
by HUD under the HUD Capital Advance. Such costs may include, but are not necessarily
limited to, reimbursement to the Developer for expenses such as construction and
architectural costs, engineering fees, legal and consulting expenses, planning, building and
municipal fees.
4. PAYMENT OF GRANT: The Grant will be paid from Escrow, following
payment of the Purchase Price to the Authority, at the time of the closing of the HUD
Capital Advance.
5. COMPLIANCE WITH STATUTES, RULES AND REGULATIONS: The
Developer covenants and agrees as a condition of acceptance of this Grant that at all times
the acts of the Developer will be in conformity with all statutes, rules and regulations
relating to the Project and that, specifically, the Project will always be operated in
accordance with the provisions of Section 202 of the Housing Act of 1959, the
administrative regulations implementing that legislation (CFR 885.1 et seq.), the provisions
3
of HUD Handbook 4571.5, other supporting materials governing the Section 202,,program, .
and the requirements of California Health and Safety Code section 34312.3,.which is
incorporated herein by reference as though fully set forth, or.its successor.
6. DEVELOPERS OBLIGATIONS CONCERNING TENANT SELECTION:
a. The Developer shall fully comply with the percentage requirements of
Health and Safety Code section 34312.3(c).
b. The Developer shall select as tenants, on the same basis as all other
prospective tenants, in the units reserved for very low income households, any very low
income households who are recipients of federal certificates for rent subsidies pursuant to
the existing program under Section 8 of the United States Housing Act of 1937 (42 U.S.C.
Sec. 1437f), or its successor. A selection criteria shall not be applied to Section 8
certificate holders that is any more burdensome than the criteria applied to all other
prospective tenants.
C. No resident of the Project shall be denied continued occupancy or
ownership because, after admission, the resident's family income increases to exceed the
eligibility level. However Developer shall ensure that percentage requirements of this
section shall continue to be met by requiring that the next available unit or units are
provided to persons of low income or by taking other actions to satisfy the percentage
requirements of Health and Safety Code section 34312.3(c).
7. COVENANT RUNNING WITH THE LAND: The Developer specifically
understands and agrees that subsection (i) of Health and Safety Code section 3-43.12.3 shall
apply to this Agreement. That portion of the statute provides:
" Notwithstanding Section 1461 of the Civil Code, the
provisions of this section shall run with the land and may be
enforced either in law or in equity by any resident, local
agency, entity, or by any other person adversely affected by an
owner's failure to comply with the provisions of this section."
8. REPRESENTATIONS AND WARRANTIES OF DEVELOPER: As a
material inducement to the Authority to enter into this Agreement, Developer hereby makes
the warranties and representations set forth herein, all of which shall be in addition to any
and all warranties and representations set forth in the Purchase Agreement, shall be true and
accurate as of the date of execution hereof and shall continue during the term of this
Agreement and shall survive the termination of this Agreement In the event Developer
should discover at any time that any representation or warranty set forth in this Section is
untrue, Developer shall immediately notify Authority in writing.
4 _
a. Developer is a nonprofit corporation, formed under or subject to the
provisions of Part 2 (commencing with Section 5110) of Division 2.of Title 1 of the
Corporation Code, whose articles of incorporation provide that the corporation has been
organized exclusively to.provide housing facilities for elderly persons and families of low
or moderate income, as defined by Health and Safety Code section 50093. There is no
breach of, violation of or default with respect to any term or provision of the articles of
incorporation or bylaws and the execution, delivery, performance of, or compliance with
this Agreement will not result in any such violation or be in conflict with or constitute a
default under any such term or provision.
b. All financial statements of the Developer furnished or to be
furnished by. the Developer to the Authority, to HUD, to any other funding source or
otherwise furnished in connection with the Project are and shall be true and correct and
fairly and accurately represent the financial condition of the Developer and of the project.
C. There are no.actions, suits or proceedings pending or known to be
threatened against or affecting Developer or the Project, at law or in equity, or before any
court or governmental department, commission, board, bureau, agency or instrumentality
which might adversely affect the ability of the Developer to construct or manage the Project
upon completion for the purposes intended.
d. The work required to construct the Project will not conflict with,
violate or result in the violation of any applicable law.
9. NO ASSIGNMENT OF AGREEMENT OR GRANT PROCEEDS: Neither
this Agreement nor any of the proceeds of the Grant may be assigned or otherwise
transferred in whole or in part by Developer without the prior written consent of the
Authority which consent may be withheld at Authority's sole discretion and any attempted
assignment hereunder without the prior written consent of the Authority shall be a default
of this Agreement and shall be of no force or effect.
10. TERMINA"TION OF AGREEMENT: If title to the Property is not conveyed
to the Developer on or before September 30, 1996, this Agreement shall termirtatev'_If,
following the transfer of title to.the Property to the Developer, title to the Property reverts
to the Authority, this Agreement shall terminate and be of no further force or effect. Upon
termination of this Agreement, neither Developer nor Authority shall have any further rights
or claims against the other, except as otherwise provided herein. The agreements contained
in this section shall survive the assignment, expiration or termination of this Agreement.
11. INDEMNITY AND HOLD HARMLESS: Developer agrees to indemnify,
protect, defend, save and hold harmless Authority from and against any and all losses,
liabilities, judgments claims, costs and expenses (including attorneys fees and
disbursements), actions or proceedings to attack, set aside, void, abrogate or annul this
5
Agreement, the Grant or any act or approval of Authority related thereto: Developer.further
agrees to indemnify, protect, defend, save and hold harmless Authority from and against
any and all losses, liabilities, suits, obligations, damages, judgments, claims, costs and
expenses (including attorneys fees and disbursements), actions or proceedings caused by or
arising from or in connection with this Agreement, the Grant, or any act of the Authority or
the Developer related thereto, save and except claims or litigation arising through the sole
willful misconduct of Authority, its officers or employees.
The obligations of the GRANTEE to indemnify, protect and defend the
AUTHORITY under this paragraph shall be limited solely to the assets of the GRANTEE,
its heirs, successors and assigns and shall not be a personal liability.of any officer, director,
member, trustee or employee of GRANTEE nor shall it be binding upon any corporation
affiliated with GRANTEE. However the obligations of the GRANTEE to hold the
AUTHORITY harmless from all of the demands, liabilities, losses, damages, claims, costs,
expenses, litigation, actions and/or proceedings described by this section shall extend not
only to GRANTEE but also to its officers, directors, members, trustees, employees and
affiliated corporations and GRANTEE makes the promises to hold harmless set forth in this
section on behalf of itself and on behalf of the aforementioned officers, directors, members,
trustees, employees and affiliated corporations.
12. NO JOINT VENTURE: Nothing in this Agreement shall ever be construed
as creating a joint venture between Developer and Authority. Neither.Developer nor
anyone else shall have any authority to or power to incur any liability or obligation which
would be binding on Authority other than the specific provisions contained in this
Agreement. --
13. WRITTEN AGREEMENT; NO THIRD PARTY BENEFICIARIES: Neither
party has relied on any promise or representation not contained in this Agreement. All
previous conversations, negotiations and understandings are of no further force or effect.
This Agreement may be modified only by a writing signed by both parties. The headings
of the. paragraphs are for convenience only and are not part of this Agreement, nor shall
they be considered in construing the intent of this Agreement. Except as otherwise
specifically provided herein, nothing in this Agreement is intended or shall be construed to
.create rights in any third person not a party to this Agreement.
6
r ,
14. RECORDING: This Agreement shall be placed into Escrow. This
Agreement shall be recorded in the Official Records of Contra Costa County by the title
company and indexed to the name of the Developer.
SIGNATURES
AUTHORITY DEVELOPER
HOUSING AUTHORITY OF THE COLUMBIA PARK MANOR
COUNTY OF CONTRA COSTA, a non-profit corporation for a
public body, corporate and politic, senior hou Ing,
By: By:
Richard J. Martinez, Executive Director game, Title
APPROVED AS TO FORM: By:
Victor J. Westman, County Counsel Name, Title
q4
y ou Counsel
APPROVED:
Department of Housing and Urban
Development --
By:
Name, Title
7
STATE OF (AWEOMP, }
COUNTY OF ( 1 A M" }
On this day of in the year 1994, before me
personally
appearedGP 0\wA-T , personally known to me (or
proved to me on the basis of satisfactory evidence) to be the person(,?) whose name is/9fe
subscribed to the within instrument and.acknowledged to me that he/s)fe/ti 6y executed the
same in his*r/thair authorized capacity(, and that by his/lpf/tWir signature(pf on the
instrument the person(/ or the entity upon behalf of which the person(A acted, executed the
instrument.
WITNESS my hand and official seal
E °
DJ. L E
U Comm.#984324 Notary Public
OTARY PUBLIC
COUNTY CALIFORNIA"
C 0 State of CAL i FORA)l A
c oa Comm.Expires Feb.7,1997 j
(Seal)
STATE OF
COUNTY OF_��+Yan
. i
this day of 1! , in the year 1994, bd6re me
Y►'l1 (� r personally
appeared III IL, 0A Cts- , personally known to me (or
proved to rn on the basis of satisfactory evidence) to be the person(s) whose name 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.
WITNESS my hand and official seal
Notary Public
OFFICIAL SEAL State of C-44
MIMI 6RADDONVALKER
NOTARY PUBLIC-CALIFORNIA
(Seal(Seal) CONTRA COSTA COUNTY
) My Comm.Ease.May 6, 1994
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HOUSING .AUTHORITY
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16`45'.00" W 95.73
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PLAT TO ACCOMPANY DECAL DESCRIPTION
T.P. Luk, Milani & Associates
1646.N. Califarnta Blvd. Lan EnglnaeNrrp
nd Sulk 206, Walnut Crook Land.
Canfamlo 94595
510 935-9140
APRIL 14, 1994 FILE N0: 30094-50/PLAT
MT
APRIL 13, 1994
JOB NO. 30094-50
EXHIBIT if Fl
ALL THAT REAL PROPERTY SITUATE IN THE CITY OF PITTSBURG, COUNTY OF
CONTRA COSTA, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
ALL THAT PORTION OF. PARCEL "B" AS SAID PARCEL IS SHOWN AND SO
DESIGNATED ON PARCEL MAP MS 3-6 . FILED IN THE OFFICE OF THE COUNTY
RECORDER OF CONTRA COSTA COUNTY IN BOOK_ 11 OF PARCEL MAPS AT PAGE
19, `DESCRIBED AS FOLLOWS :
BEGINNING AT A POINT ON THE NORTHERN LINE OF SAID PARCEL "B" , BEING
ALSO A SOUTHERN LINE OF TRACT 2399 AS SAID LINE IS SHOWN .-AND SO
DESIGNATED ON THE OFFICIAL MAP OF SAID TRACT 2399 FILED IN SAID
OFFICE OF THE COUNTY RECORDER IN BOOK 64 OF MAPS AT PAGE 30, SAID
POINT BEING ALSO ON THE EASTERN LINE OF LOT 94 AS SAID LOT IS SHOWN
AND SO DESIGNATED ON THE OFFICIAL MAP OF SUBDIVISION 5945 FILED IN
:SAID OFFICE OF THE COUNTY RECORDER IN BOOK 253 OF MAPS AT PAGE 42;
THENCE, FROM SAID POINT OF BEGINNING, EASTERLY ALONG SAID NORTHERN
LINE OF PARCEL "B" SOUTH 73015'00" EAST 358.98 FEET; THENCE,
LEAVING SAID NORTHERN LINE SOUTH 16°45'00" WEST 81 . 00 FEET; THENCE,
SOUTH 26031 '13" WEST 95 . 73 FEET; THENCE, SOUTH 16029 '02" WEST
199 . 32 FEET TO A POINT ON A NORTHERN BOUNDARY LINE OF SAID
SUBDIVISION 5945 (253 M 42) ; THENCE, WESTERLY ALONG . SAID NORTHERN
LINE NORTH 73015100" WEST 343. 66 FEET TO THE HEREINABOVE- NAMED
EASTERN LINE OF LOT 94 (253 M 42) ; THENCE, NORTHERLY ALONG SAID
EASTERN LINE NORTH 16045 '00" EAST 374. 66 FEET MORE OR LESS TO THE
POINT OF BEGINNING AND CONTAINING 3. 00 ACRES OF LAND, MORE OR LESS.
END OF DESCRIPTION -arv4"`'�
\ R
Z
PREPARED BY : 6�1MICHAEL E.
MICHAEL E. MILANI tea. •31-sr :;1
L.S. 5 311 KIP. 311
EXPIRES 12/31/95
/wp/legal /3009450/exh . a
PURCHASE AGREEMENT'
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
to
COLUMBIA PARK MANOR, INC.
Approximately 2.99 Acres of Vacant Land
Chester Drive, Pittsburg, California
1. PARTIES AND PREMISES: Effective April 15, 1994, and in consideration of
the terms, conditions and agreements made herein, the HOUSING AUTHORITY OF THE
COUNTY OF CONTRA COSTA, a public body corporate and politic, hereinafter called
"AUTHORITY," does hereby agree to convey to COLUMBIA PARK MANOR, a non-profit
corporation formed to provide senior housing to people of low and moderate income,
hereinafter called "GRANTEE," on the terms and conditions set forth in this Purchase
Agreement ("Agreement"), title as an estate in fee simple subject to a condition subsequent
(power of termination) to the following described land situated in the County of Contra Costa,
State of California (hereinafter called the "property"), described as follows:
Approximately 2.99,acres of vacant land,the westerly portion of assessors parcel
073-140-015 at Chester Drive, Pittsburg, California, shown as Parcel "B" on
Exhibit "A,"..and described in Exhibit "B" attached hereto and made a part
hereof,
2. PURPOSE: The property is conveyed for' the sole purpose of allowing
GRANTEE to construct and operate a senior housing facility for people of low or moderate
income on the property, as defined by Health and Safety Code section 50093 ("senior housing
facility"). As a material inducement for AUTHORITY to enter into this Agreement,
GRANTEE promises and agrees that the property will never be used for any purpose other than
as a senior housing facility. GRANTEE further promises and agrees that for so long as the
property is encumbered by the deed of trust and regulatory agreement in favor of the United
States of America, acting by and through the Secretary of Housing and Urban Development,
referenced in Section I I of this Agreement, that the development will be operated in full
compliance with the statutes, rules, regulations and policies relating to Section 202 of the
Housing Act of 1959. Construction of the facility shall not commence until after title to the
property is conveyed to GRANTEE. Itis understood that GRANTEE shall be responsible for
obtaining any permits and approvals from any agency having jurisdiction and. that this
Agreement does not constitute governmental approval by the Housing Authority of the'County
of Contra Costa or by Contra Costa County of such use.
As a material inducement for AUTHORITY to enter into this Agreement, GRANTEE
guarantees and warrants to AUTHORITY that it is a nonprofit corporation, formed under or
subject to the provisions of Part 2 (commencing with Section 5110) of Division 2 of Title. 1
of the Corporation Code, whose articles of incorporation provide that the corporation has been
organized exclusively to provide housing facilities for elderly persons and families of low or
moderate income, as defined above.
AL
3. TERM: The GRANTEE's right to purchase the property pursuant to this
Purchase Agreement shall commence on April 15, 1994, and end on September 30, 1996. If
the property which is the subject of this Agreement is not conveyed to GRANTEE on or before
September 30, 1996, this Agreement shall terminate. Upon such termination, AUTHORITY
shall be under no obligation to convey the property to GRANTEE, and neither GRANTEE nor
AUTHORITY shall have any further rights or claims against the other, except as otherwise
provided herein., The agreements contained in this section shall survive the assignment,
expiration or termination of this Agreement.
4. PURCHASE PRICE: The total purchase price for the said property, without any
deduction therefrom, shall be the sum of THREE HUNDRED THOUSAND AND NO/100
DOLLARS ($300,000.00). The purchase price shall be paid in full at the time of closing.
5. CONDITIONS PRECEDENT TO TRANSFER OF TITLE: Before title to the
property will be conveyed to GRANTEE, and as additional consideration for this Agreement,
GRANTEE shall complete all of the following; actions,
a. The property is part of a larger parcel of a five-acre undivided property owned
by the AUTHORITY, known as assessors parcel 073-140-015. If, following
consultations with the City of Pittsburg, it is determined that compliance with the
Subdivision Map Act is required by law, then before title is conveyed to GRANTEE,
GRANTEE shall comply with applicable local requirements and the Subdivision Map
Act (Gov. Code § 66410 et sec{.) regarding the creation of the parcel to be conveyed
to GRANTEE. In addition to the foregoing, prior to conveyance of title to GRANTEE,
GRANTEE shall determine and comply with all building, planning and zoning
regulations relative to the property and the uses to which it can be put and shall obtain
all necessary approvals from the City of Pittsburg and other interested governmental
agencies, including but not limited to, conformance with the City's General Plan and
zoning of the property for use as a senior housing facility for people of low or moderate
income. GRANTEE shall take all actions necessary to comply with the California
Environmental Quality Act. Any costs incurred in obtaining the foregoing approvals
shall be borne by solely by GRANTEE.
b. The sale is subject to approval by the Board of Commissioners of the Housing
Authority of the County of Contra Co$ta. This Purchase Agreement.shall not be
� effective until the date of approval by the Board of Commissioners. There must be a
2
public hearing at which the transfer of the property is approved, as required by
Government Code section 50572. Nothing contained in this Agreement is intended to
predetermine the outcome of said hearing.
6. ESCROW: The sale shall be consummated through an escrow at a title company
selected by GRANTEE and approved by AUTHORITY. GRANTEE shall prepare escrow
inructions which shall be approved in writing by AUTHORITY prior to filing with said title
cogipany. GRANTEE shall pay all escrow and recording fees incurred in the transaction and,
if title insurance is desired by GRANTEE, the premium charged therefor. Escrow shall be
closed on or before ONE HUNDRED TWENTY (120) days from the date escrow is opened,
unless the date of closing is extended by prior written agreement of the AUTHORITY and the
GRANTEE. Escrow 'shall be deemed to be closed and the property shall be deemed to be
conveyed on the date the deed to GRANTEE is recorded.
7. USE OF PROPERTY PRIOR TO CONVEYANCE OF TITLE: GRANTEE
acknowledges that there_is a current lease on the property covered by this Agreement to the
PITTSBURG PRESCHOOL COORDINATING COUNCIL,INC.(hereinafter"PRESCHOOL"),
which expires on April 30, 2034, or upon conveyance of title to GRANTEE, whichever shall
first occur. GRANTEE understands and agrees that PRESCHOOL shall retain the use of the
property covered by this Agreement until such time as the property is conveyed to
GRANTEE. It shall be the sole responsibility of GRANTEE, at GRANTEE's sole cost and
expense to take any legal or other action necessary to remove PRESCHOOL from the property
following conveyance of title to GRANTEE or, if necessary, to clear the title to the property.
8. RIGHT OF ENTRY: Prior to entering upon the property for the purposes of
surveying, or for.the purposes of making any soils tests or engineering or other studies, or for
any other purpose, GRANTEE shall first obtain a right of entry from PRESCHOOL. -Said right
shall be at GRANTEE's own peril and risk with no liability incurred by-AUTHORITY.
GRANTEE shall restore the property to substantially the same condition as exists on the date
hereof to the extent such restoration is necessary due to GRANTEE's actions.
9. INSURANCE: Prior to entering upon the property for any purpose, GRANTEE
shall provide AUTHORITY with a Certificate of Insurance certifying that it has Comprehensive
General Liability or Commercial General Liability insurance covering bodily injury (including
death), personal injury and property damage with limits in an amount of not less than one
million dollars ($1,000,000)per occurrence and two million dollars ($2,000,000)aggregate, if
applicable. Such insurance shall name the Housing Authority of the County of Contra Costa,.
its officers, agents and employees, individually and collectively, as additional insureds and shall
contain a special provision for thirty (30) days prior written notice of any cancellation or
reduction in coverage to be sent to the AUTHORITY. Such insurance shall apply asprimary
insurance, and any other insurance maintained by AUTHORITY shall be excess only'and not
contributing with the inslorance required under this section. Said insurance shall be maintained
in full force and effect throughout the term of this Agreement.
3
+. J
10. TITLE CONVEYED: The title to be conveyed to GRANTEE pursuant to this
Agreement is an estate in fee simple subject to a condition subsequent(power of termination),
as further described in Section 11 of this Agreement. The right, title and interest in the`property
to be sold shall not exceed that vested in the AUTHORITY and said property shall be sold
subject to all existing easements, covenants, conditions, restrictions, reservations, leases and
all other encumbrances, whether the same be recorded or unrecorded.
11. DEED RESTRICTIONS: This conveyance is made subject to the following
conditions which shall be included in the deed:
a. The property is conveyed on the express condition that it shall be developed and
forever used solely for the construction and operation of a senior housing facility for
elderly individuals with low or low and moderate income, as defined by Health and
Safety Code section 50093, and for no other purpose. Should the property ever not be
used for such purpose, then the AUTHORITY, its heirs, successors or assigns shall
reserve the right to re-enter and forfeit GRANTEE's title and the property shall revert
to AUTHORITY. The power of termination described in this subparagraph shall be
stayed and shall not be exercised for so long as the property is encumbered by both the
Deed of Trust dated __ , 199_, in favor of the United States of
America acting by and through the Secretary of Housing and Urban Development
("HUD"), recorded as Instrument No. , on , 199_, in
the official records of Contra Costa County ("HUD Deed.of Trust"), and the Regulatory
Agreement dated , 199 , executed by and between GRANTEE
and HUD, recorded as Instrument No. , on ,
199 , in said official records ("HUD Regulatory Agreement")or during such period
as title to the property is held by HUD. The parties expressly agree that should a
breach of this restriction occur during such time as the property is encumbered by the
HUD Deed of Trust and the HUD Regulatory Agreement or title to the property is held
by HUD, any obligation the AUTHORITY might otherwise have to exercise of the
power of termination within five years after the breach, or such other time period as
may be provided by Civil Code section 885.050 or any successor legislation, is waived.
This deed is deemed by the parties to be the recorded waiver or extension required by
Civil Code section 885.050.
b. This property is conveyed on the express condition that GRANTEE shall obtain
a certificate of occupancy for a senior housing facility within five years of the date the
deed to GRANTEE is recorded. Should GRANTEE fail to obtain said certificate of
occupancy within five years following recordation of the deed, then the AUTHORITY,
its heirs, successors or assigns shall reserve the right to re-enter and forfeit GRANTEE's
title and the property shall revert to AUTHORITY. The power of term i nation'described
in this subparagraph shall be stayed and shall not be exercised for so long as the
property is encu!rnbered by both the HUD Deed of Trust and the HUD Regulatory
e ffi..
Agreement or during such period as title to the property is held by HUD. The parties
4
expressly agree that should a breach of this restriction occur during such time as the
property is encumbered by the HUD Deed of Trust and the HUD Regulatory Agreement
or title to the property is held by HUD, any obligation the AUTHORITY might
otherwise have to exercise of the power of termination within five years after the
breach, or such other time period as may be provided by Civil Code section 885.050
or any successor legislation, is waived. This deed is deemed by the parties to be the
recorded waiver or extension required by Civil Code section 885.050. "
C. Pursuant to Government Code section 50570, should the ownership of the land
no longer be composed of a majority of the nonprofit sponsor, then AUTHORITY, its
heirs, successor`s or assigns shall reserve the right to re-enter and forfeit GRANTEE's
title and the property shall revert to AUTHORITY.
d. The deed to GRANTEE shall contain a recital that the AUTHORITY has made
the finding required by Government Code section 50570 and such recital shall be
conclusive in favor of purchasers or encumbrancers for value. The deed shall also
contain the findings and determinations required by Health and Safety Code section
34315.7.
12, PROPERTY TO BE CONVEYED IN "AS IS"CONDITION: The property shall
be conveyed in an "as is" physical condition with no warranty, guarantee, representation or
liability, express or implied, on the part of AUTHORITY as to the physical condition of the
property, including, but not limited to the condition and/or possible uses of the land or any
improvements thereon, the condition of the soil or the geology of the soil, the condition of the
air, surface water or groundwater, the presence of known and unknown faults, the presence
of any Hazardous Substances (as defined below), materials, or other kinds of contamination
or pollutants of any kind in the air, soil, groundwater or surface water,or the.suitability of the
property for the construction and use of the improvements thereon. It shall be the sole
responsibility of GRANTEE, at its sole cost and expense, to investigate and determine the
suitability of the soil, air,water, geologic, environmental and seismic conditions of the property
for the intended development contemplated herein, and to determine and comply,;with all
building, planning and zoning regulations relative to the property and the uses to which it can
be Out. GRANTEE relies solely on GRANTERs own judgment, experience and investigations
as to the present and future condition of the property or its suitability for GRANTEE's intended
use. AUTHORITY assumes no responsibility. for the conformance to codes or permit
regulations of the city, county or State in which the property is located.
13. INDEMNITY AND HOLD HARMLESS: GRANTEE shall indemnify, defend,
save protect and hold harmless, AUTHORITY, its officers and employees (hereinafter
collectively referred to as "AUTHORITY"), from and against any and all loss;'damage;
liability, expense, claims or demands, of whatever character, to persons or'property, direct or
conpequential, directly or indirectly contributed or caused by GRANTEE's operations or acts
5
ri
or omissions pursuant to this Agreement, save and except claims or litigation arising through
the sole willful misconduct of AUTHORITY, its officers or employees.
GRANTEE further agrees to defend, indemnify, save, protect and hold harmless,
AUTHORITY from any and all claims, costs, actions or proceedings to attack, set aside, void,
abrogate or annul this Agreement or any act or approval of AUTHORITY related thereto.
GRANTEE shall also indemnify, protect, defend, save and hold harmless AUTHORITY
from and against any and all Indemnified Costs arising directly or indirectly out of or resulting
from any Hazardous Substance being present or released in, on or around any part of the
Property, or in the soil,, groundwater or soil vapor on or under the Property at any time, either
before or after this Purchase Agreement is executed, whether such Indemnified Costs are
discovered before or after the conveyance of the Property
roperty to GRANTEE.
As used herein, "Hazardous Substance" means any substance, material or waste
(including petroleum and petroleum products) which is or becomes designated, classified or
regulated as being "toxic" or "hazardous" or a "pollutant," or which is or becomes similarly
designated, classified or regulated, under any federal, state or local law, regulation or
ordinance.
As used herein "Indemnified Costs" means all actual or threatened liabilities, claims,
actions, causes of action,judgments, orders, damages(including foreseeable and unforeseeable
consequential damages, costs, expenses, fines, penalties and losses (including sums paid in
settlement of claims and all consultant, expert and legal fees and expenses of any counsel
retained by AUTHORITY)including those incurred in connection with any investigation of site
conditions or any clean-up, remedial, removal or restoration work (whether of the subject
property or any other property), or any resulting damages, harm or injuries to the person or
property of any third parties or to any natural resources, and also including any and all liability
under the Comprehensive Environmental Response, Compensation and Liability Act
("CERCLA")42 U.S.C. §9601 elseq., the Resource Conservation and Recovery Act("RCRA")
42 U.S.C. §6901 et seq., and the California Hazardous Waste Control Law ("HWCL") Health
and Safety Code §25100 el seq., or any successor legislation to the foregoing.
The obligations contained in this section shall include, but shall not be limited to, the
burden of defending all claims, suits, or administrative proceedings with counsel approved by
AUTHORITY, even if such claims, suits or proceedings are groundless,false or fraudulent, and
the burden of conducting all negotiations of any description, and paying and discharging, when
the same become due, any and all judgments,-penalties, costs or other sums due against
AUTHORITY. AUTHORITY, at its sole expense, may employ additional counsel of its choice
to associate with counsel representing GRANTEE.
,v. The obligations bf the GRANTEE to indemnify, protect and defend the AUTHORITY
under this paragraph shall be limited solely to the assets of the GRANTEE, its heirs, successors
6
and assigns,and shall not be a personal liability of any officer, director, member, trustee or
employee of GRANTEE nor shall it be binding upon any corporation affiliated with
GRANTEE. However the obligations of the GRANTEE to hold the AUTHORITY harmless
from all of the demands, liabilities, losses, damages, claims, costs (including but not limited
to Indemnified Costs),expenses, litigation, actions and/or proceedings described by this section
shall, extend not only to GRANTEE but also, to its officers, directors, members, trustees,
em!�oyees and affiliated corporations and GRANTEE makes the promises to hold harmless set
fort I l�in this section on behalf of itself and on behalf of the aforementioned officers, directors,
members, trustees, employees and affiliated corporations,
The obligations contained in this section shall survive the assignment, expiration or
termination of this Agreement
14. STORM DRAIN EASEMENT: GRANTEE shall execute and deposit into
escrow an easement to AUTHORITY, in a form and at a location to be determined and
approved by AUTHORITY in its sole discretion, for storm water drainage from Parcel "A."
15. ACCESS EASEMENTS-.
a. Access to Parcel A: GRANTEE shall execute and deposit into escrow a
nonexclusive appurtenant easement to AUTHORITY, in a form and at a location.to be
determined and approved by AUTHORITY in its sole discretion, for access to Parcel
A.
b Access to Parcel B: AUTHORITY shall execute and deposit into escrow a
nonexclusive appurtenant easement to GRANTEE for access to Parcel "B" in a form
and at a location to be determined and approved by AUTHORITY in its sole discretion.
The easement shall not be conveyed to GRANTEE unless and until the GRANTEE also
obtains a license from PRESCHOOL permitting the GRANTEE to use the property for
access. The grant of easement shall provide that the easement will terminate in the
event Parcel "B" reverts to AUTHORITY.
16. SUCCESSORS AND ASSIGNS: This Agreement may not be assigned or
transferred by GRANTEE without the prior written consent of AUTHORITY being first had
and obtained, which consent may be withheld by the Authority at the Authority's sole
discretion. Any assignment, transfer or sale of this Agreement, directly or indirectly, without
the prior consent of the AUTHORITY shall automatically terminate this Agreement and all
fights of GRANTEE under this Agreement. With that limitation, the terms and provisions of
this Agreement shall extend to and be binding upon the heirs, successors and'assigns of the
respective parties hereto..
7
17, WRITTEN AGREEMENT: Neither party has relied on any promise or
representation not contained in this Agreement. All previous conversations, negotiations and
understandings are of no further force or effect. This Agreement may be modified only by a
writing signed by both parties. The headings of the paragraphs are for convenience only and
are not part of this Agreement, nor shall they be considered in construing the intent of this
Agreement.
,A
18. RELATIONSHIP OF THE PARTIES: Nothing in this Agreement shall ever be
construed as creating a joint venture between GRANTEE and AUTHORITY, or any
relationship other than,that of Grantor and Grantee. Neither GRANTEE nor anyone else shall
have any authority tojor power to incur any liability or obligation other than the specific
provisions contained in this Agreement, which would be binding on AUTHORITY.
19. TIME IS OF THE ESSENCE of each and all of the terms and provisions of this
Agreement.
SIGNATURES
AUTHORITY GRANTEE
HOUSING AUTHORITY OF THE COLUMBIA PARK MANOR
COUNTY OF CONTRA COSTA, a non-profit corporation for
a public body, corporate and politic, senior housing, I
By: By:
Richard J. Martinez, Executive Director ame, Title
�2
RECOMMENDED FOR APPROVAL: By.
Name, Title
By:
County Lease Manager
APPROVED AS TO FORM:
Victor J. Westman, County Counsel
By:
sW\a:.4
\pt'irch agtxpm
'
8
[ ] DENOTES MEASURED DIMENSION PER FIELD SURVEY.
C
�GPLE
CONTRA COSTA COUNTY
HOUSING AUTHORITY
7275 O.R. 731
(S 2?2,9'06- w
81.00, S 26.31. ]
16'45'04" W 9$ 13" W 199.32'
[,S 17'41'53" W] 73 S 16'29'02" W
[S 17'25'55" W 199.62]
a
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00 to
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o LOT 1 c, o
Lo 130,684 sq. ft. o Go M
r. LO
3.00 acres o
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POINT OF
BEGINNING N 16`45'00" E 374,66'
[N 17'41'53" E 374.95']
BUBB. 959(495
PLAT TO ACCOMPANY LEGAL DESCRIPTION
Luk, Milani & Associates C" Engbwrinp
1646 N. California Blvd. Land Planning
Sulu 266, Walnut Crwk Land SurvWng
California 94596
$10 933-9140
APRIL 14, 1994 FILE N0: 30094-50/PLAT
APRIL 13, 1994
JOB NO. 30094-50
EXHIBIT
ALL THAT REAL PROPERTY SITUATE IN THE CITY OF PITTSBURG, COUNTY OF
4TRA COSTA, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS:
ALL THAT PORTION OF PARCEL "B" AS SAID . PARCEL IS SHOWN AND SO
DESIGNATED ON PARCEL MAP MS 3-6 FILED IN THE OFFICE OF THE COUNTY
RECORDER OF CONTRA COSTA COUNTY IN BOOK 11 OF PARCEL MAPS AT PAGE
19, DESCRIBED AS FOLLOWS:
BEGINNING AT A POINT ON THE NORTHERN LINE OF SAID PARCEL "B", BEING
ALSO A SOUTHERN . LINE OF TRACT 2399 AS SAID LINE, IS SHOWN AND SO
DESIGNATED ON THE OFFICIAL MAP OF SAID TRACT 2399 FILED IN SAID
'OFFICE OF THE COUNTY RECORDER IN BOOK 64 OF MAPS AT PAGE 30, SAID
4 POINT BEING ALSO ON THE EASTERN LINE OF LOT 94 AS SAID LOT IS SHOWN
AND SO DESIGNATED ON THE OFFICIAL MAP OF SUBDIVISION 5945 FILED IN
`SAID OFFICE OF THE COUNTY RECORDER IN BOOK 253 OF :MAPS AT PAGE 42;
THENCE, FROM SAID POINT OF BEGINNING, EASTERLY ALONG SAID NORTHERN
`tiN`E 'OF PARCEL "B" SOUTH 73015'00" EAST 358.98 FEET.-; THENCE,
LEAVING SAID NORTHERN LINE SOUTH 16045'00" WEST 81.00 .FEET; THENCE,
SOUTH 26031 '13" WEST 95. 73 FEET; THENCE, SOUTH 16029'02" WEST
199. 32 FEET TO A POINT ON A NORTHERN BOUNDARY LINE OF SAID
SUBDIVISION 5945 (253 M 42) ; THENCE, WESTERLY ALONG SAID NORTHERN
LINE NORTH . 73015'00" WEST 343. 66 FEET TO THE HEREINABOVE ; NAMED
EASTERN LINE OF LOT 94 (253 M 42) ; THENCE, NORTHERLY ACOftG ' SAID
EASTERN LINE NORTH 16045'00" EAST 374. 66 FEET MORE OR LESS TO THE
POINT OF BEGINNING AND CONTAINING 3.00 ACRES OF LAND,, MORE OR LESS.
END OF DESCRIPTION
o�
PREPARED BY: MICHAEL E.Fd1L4�di
MICHAEL E. MILANI + Exp.
M„ L.S. 5311 NO.5311
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EXPIRES 12/31/95
cr_
/wp/legal /3009450/exh . a
�. •, Qty�E COUryTy J
1, 0 � � from
y � -N, MARGE L. GLADMAN
GTN O � HOUSING DEVELOPMENT OFFICER
MEM011,dd Housing Authority of Contra Costa County
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• HOUSING AL',' ORITY OF THE COUNTY OF C(,. RA COSTA rt.
TO:, BOARD OF COMMISSIONERS
FROM: Richard J. Martinez, Executive Director
DATE: April 19, 1994
SUBJECT: PITTSBURG SENIOR HOUSING/COLUMBIA PARK MANOR: AUTHORIZING THE EXECUTIVE DIRECTOR
TO EXECUTE 1) A PURCHASE AGREEMENT TO SELL A PORTION OF HOUSING AUTHORITY OWNED
LAND TO COLUMBIA PARK MANOR FOR THE DEVELOPMENT OF LOW INCOME SENIOR HOUSING;AND
2)A FUNDING AND REGULATORY AGREEMENT WITH COLUMBIA PARK MANOR FOR THE PROJECT;AND
RESCINDING PREVIOUS AUTHORIZATION TO ENTER INTO OPTION TO PURCHASE
SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION
1. RECOMMENDED ACTION
A. AUTHORIZE the Executive Director to execute 1) a Purchase Agreement to sell a portion (Parcel "B') of Housing
Authority owned property located at the end of Chester Drive in Pittsburg,CA to Columbia Park Manor (CPM),a non-profit
corporation, for the development of low income senior housing; and 2) a Funding and Regulatory Agreement with Columbia
Park Manor for the project. This authorization is subject to the review and approval as to form of all documents by County
Counsel.
B. RESCIND a portion of prior Board action of February 15, 1994 which authorized the Executive Director to enter into a
purchase option with CPM.
II. FINANCIAL IMPACT:
The purchase price for Parcel "B" shall be $300,000. The Housing Authority has been asked to contribute $200,000 of that
sum to CPM for development funding for this project. If the agreement for funding is approved by the Board of
Commissioners, the resulting potential net gain to the Housing Authority will be $100,000.
III. REASONS FOR RECOMMENDATION/BACKGROUND
The:Housing Authority has been working with Pittsburg Preschool Coordinating Council and Satellite Senior Homes Inc.(Co-
Sponsors) and Columbia Park Manor(CPM),the non-profit corporation formed by the Co-Sponsors,to develop the Pittsburg
Senior Housing Development, now called Columbia Park Manor. The Co-Sponsors have advised the Housing Authority that
the Co-Sponsors received an award of$5.9 million in HUD 202 funding for the 79 unit senior housing project. However,
because of anticipated development costs which are not eligible for funding under the Section 202 program, CPM is also
applying for funding under the Small Cities Grant Program with the City of Pittsburg and the Affordable Housing Program
with Citibank. These applications require acceptable site control by the applicant. At this point, CPM is requesting that
the Housing Authority enter into a Purchase Agreement for Parcel "B" as proof that CPM has an acceptable form of site
control for these funding programs. The Purchase Agreement is intended to take the place of the option originally approved
by.the Board on February 15, 1994 and, accordingly, the previous authorization to enter into the option should be rescinded.
The major deal points of the Purchase Agreement are:
1. CPM's right to purchase Parcel "B" shall remain in effect from the date of execution of the agreement until September
30, 1996.
CONTINUED ON ATTACHMENT.: YES SIGNATURE �
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S ) :
ACTION OF BOARD ON MPROV: D AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT 1 TRUE AND CORRECT COPY OF AN
AYES: NOES : ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE SHOWN.
ATTESTED
PHIL BATCHELOR, CLERK OF
THE BOARD Or COMMISSIONERS
AND COUNTY ADMINISTRATOR
BY , DEPUTY
'2. The total purchase price for the parcel shall be $300,000 and shall be paid In full at escrow closing for the HUD Section' ' r
202 funds and sale of the land.
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3. Before title can be conveyed to CPM, CPM must comply with all Federal, State, and local requirements relative to the
development of senior housing on this site.
4. As required by Government Code section 50572, there must be a public hearing at which the transfer of the property Is
approved by the Board of Commissioners. The public hearing held on April 19, 1994,in connection with the approval of this
purchase_agreement, is Intended to be the public hearing required by Government Code section 50572. `
S. The deed conveying the property shall include the findings, determinations,-deed restrictions and reversionary language
required by Health and Safety Code section 34315.7 and Government Code section 50570. The deed shall also contain
additional restrictions intended to limit the use of the property to the construction, development and operation of low and
moderate Income senior housing, including the requirements that if the project is not completed within five years after the
property Is conveyed, or if the property ever ceases to be used for a senior housing facility for elderly persons of low`and
moderate income, the property will revert to the Housing Authority. These additional restrictions shall be subordinate only
to the HUD's Section 202 regulatory and grant agreements.
6. Easements shall be executed and recorded 1) by CPM, for a storm drain for the remaining portion of the Housing
Authority's land; 2) by CPM, for the Housing Authority's and its lessee's access across Parcel "B" to Parcel'"A";and 3) by
the Authority, for CPM's access across that portion to Parcel "B". }
7. The property to be conveyed is currently subject to a.lease to Pittsburg Preschool Coordinating Council;Ince which Is
intended to remain in effect until the site is conveyed to CPM or,if the site is not conveyed to CPM, through-April 30,2034.
CPM has also requested that the Housing Authority enter into a Funding and Regulatory Agreement with CPM,'pursuant I
to Health and Safety Code section 34312.3, to provide$200,000 for development funding for the project. The agreement shall
state that the Purchase Price for Parcel "B shall be the sole funding source for this grant and that the Housing-Authority
shall have no obligation to use any of its general funds to pay this grant nor any obligation to pay the grant If the Purchase .
Price is less than $300,000. -The agreement shall further state that the grant is to be paid from the Purchase Price through
the Escrow at the funding of the HUD Section 202 Capital Advance for the project. The primary purpose of this grant is
to cover those costs related to the project which are not eligible for inclusion in the HUD Section.202 Capital Advance'. f.
CPM has advised the Authority that, with the execution of these two agreements, the applications can proceed to the'next
step for the Small Cities Grant Program and the Affordable Housing Program selection processes.
IV. CONSEQUENCES OF NEGATWE ACTION: '
Should the Board of Commissioners elect not to authorize these actions, the Co-Sponsors and Columbia Park Manor would
have to seek additional funds from other sources and potentially jeopardize the HUD 202 funding for this project. -
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