HomeMy WebLinkAboutOrdinances 1908 11/16/1992,.
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.. ,,DAL 1 6 X92
ORDINANCE NO. 190'8 N.C.S.
Introduced by Councilmember Seconded by Councilmember
Vice Mayor Cavanagh Bonnie Nelson
AN ORDINANCE AUTHORIZING EDEN HOUSING, INC. TO EXERCISE ITS
OPTION TO ACQUIRE THE CORONA RANCH AFFORDABLE HOUSING SITE,
APN 137-060-58 (PTN)
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
FOLLOWS:
24 Section 1. The Petaluma City Council, via Development .Agreements, required certain
25 developers of the Corona Ely Specific Plan Area to fulfill their General Plan obligations, as
26 defined in Policy 10, Program 11 of the Housing Element, by dedicating land to the City
27 of Petaluma for affordable housing construction.
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29 Section 2. Sonoma Parkway Company and Cherry Lane Associates fulfilled their
30 affordable housing obligation by dedicating. the five plus acre "Corona Ranch" site, APN
31 137-060-58 (PTN), which legal description is attached as Exhibit A.
32
33 Section 3. Sonoma Parkway Company and Cherry Lane Associates selected the nonprofit
34 development company, Eden Housing, Inc., to develop the affordable housing complex, as
35 defined by the Development Agreement.
36
37 Section 4. On February 26, 1992 The City of Petaluma anal Eden Housing Inc. entered into
38 an Option Agreement, allowing the transfer of the Corona Ranch site to Eden Housing on
39 or before December 31, 1992 on the stipulation that Eden develop the site for affordable
40 housing.
41
42 Section 5. With due diligence, Eden has secured all necessary planning approvals and
43 financial backing and has filed its five day notice to exercise its option to acquire the site.
1
Ord. 1908 NCS
J
~1
1
2 Section 6. The real property located at the intersection of Sonoma Mountain Parkway and
3 Ely Road North, known as Corona Ranch and described in Exhibit A, is hereby authorized
4 to be acquired by Eden Housing Inc., or its affiliate, for the express purpose of providing
5 affordable housing under the terms and conditions set forth in the agreement entitled,
6 "Option Agreement," attached hereto as Exhibit B.
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IF ANY SECTION, subsection, sentence, clause or phrase or word of this ordinance is for
any reason held to be unconstitutional by a court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions of this ordinance. The City Council of
the City of Petaluma hereby declares that it would have passed and adopted this ordinance
and each and all provisions thereof irrespective of the fact that any one or more of said
provisions be declared unconstitutional.
INTRODUCED and ordered Posted/Published this 2nd day of November
19 92
ADOPTED this 16th day of November _ , 19~~, by the following vote:
AYES: Read, Davis, Nelson, Vice Mayor Cavanagh, Mayor Hilligoss
NOES: None
ABSENT: Woolsey, Sobel
ABSTAIN:
ATTEST•
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ity er
edenord / bg-9
Ord. 1908 NCS
2
~.
CORONA RANCH..
CORONA CRESCENT
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F~ A.
ZESCENT
SALE
iES
ONA
CH
RENTAL
~TMENT:
SONOMA MOUNTAIN PARKWAY
Ord. 1908 NCS
. ~
RECORDING REQUE ~D BY &
WF?EN RECORDED Mr,_i, T0:
-~oas53 3
.3-10-~~
Cf i~Y CL=R4~C
~1T'r GF ~~ALUyIA
P. O. 30X 5 ~
~'~TALUMA. C.A 8.953
OPTION AGREEMENT
~(1tIBlT
THIS OPTION AGREEMENT is made as of February ~( , 1992, by
and between Eden Housing, Inc., a California nonprofit public ~ ~~
benefit corporation ("Eden") as the Optionee and the City of ~`-'-~J
Petaluma, a municipal corporation (the "Cit " 1
y ) as the Optionor. c-j
A. Eden is a California nonprofit public benefit r _._,
~r~~_=
corporation organized for the purpose of developing affordable ~ ~~~-}
housing for very low, low and moderate income households. ~ }
B. The City has acquired by dedication all that real ~' ~'
property in the City of Petaluma, County of Sonoma, more ~;:~,
particularly described in Exhibit "A" attached (the "Property").'=-=:V;
l~~ _'~
C. Eden desires to obtain, and the City agrees to grant to~°
Eden, an option. to acquire the Property on the terms and
conditions set forth below.
-~~
NOW, THEREFORE, for valuable consideration, the receipt and
sufficiency of which~is hereby acknowledged, the parties agree as~
follows:
1. GRANT OF OPTION. The Cit hereb
Y y grants to Eden the
exclusive right and option (the "Option") to acquire the
Property subject to the terms and conditions set forth herein.
2. CONSIDERATION FOR GRANT OF OPTION. The Option is
granted in consideration of the agreement by Eden that Eden or an
entity controlled by Eden and approved by the City shall
construct on the Property approximately ninety (90) units of
affordable housing, of which approximately 74 units will be
rented to families and approximately 16 townhouse units will be
sold to owner-occupants.
3. LOT. SPLIT. The parties contemplate that the Property
will be divided into two legal parcels, one for the development
of rental housing units and the other for the development~of
owner-occupied townhouses. Upon the completion of the lot split,
this Option Agreement shall be applicable to both parcels.. The
Option may be exercised for each parcel separately or together.
4.TERM OF OPTION AND MANNER OF EXERCISE. Eden may
exercise the Option at any time between the date of this Option
Agreement and December 31, 1992. To exercise the Option, Eden
shall deliver to the City a five-day written notice that it
intends to exercise the Option. Upon the City's receipt of
20g:EdenPet.OPT 1
(2/25/92)
OR.1D lQp~ JCS
~~~~
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Eden's notice to exercise the Option, the Cit s
escrow an 'executed and notarized Grant Deed in thelfodeliver
hereto as. Exhibit "B". rm attachedo
Eden:
5.
condition
Eden shall
following
TERMS OF TRANSFER. Upon exercise of the Option by
5.1 Condition of Closin and Purchase Price, As a
of the transfer of the Property from the City to Eden
execute, deliver and, if applicable record, all of the
documents::
Option Agreement°sha11Obelin theeformtattachedrhef the City. The
Exhibit "C~~ , reto as
b• A Promissory Note in the amount of One Million
and No/100th Dollars: ($1,000,00-0:00
for the purchase price of
the parcel upon which the rental units will be developed. The
indebtedness evidenced by the Promissory Note shall be nonrecour
and shall bear interest. on the outstanding principal balance at ae~
rate not less than the applicable federal rate.
interest shall be payable annually only from, andPtontheaextent
that the development generates, su
paid from surplus cash shall be deferredcuntil the maturits date
which shall be forty (40) years from the close of escrow. y
Note and include°a nonrecourse provision,sandlshacure the above
to the deeds of trust securing any predeyelopmentllconstuctionnated
and/or permanent loans for the Pro ert
following conditions are satisfiedpin their~entiretly if, the
proceeds of the loans shall be used only for costs and e1)ense
related to the Property, (ii) the loans bear interest ata es
not greater than the prevailing rate for similar loans for rate
similar types of developments; and
principal are payable in full at thelmaturitylofethetloans.
d° A Promissory Note in the amount of Two Hundred
.Thousand and No/100th Dollars ($2Oq,0o0.00) for the
price of the parcel upon .which the townhouse units wPllcbese
developed: The indebtedness evidenced by the Promisso
shall be nonrecourse, and shall bear no interest. Partialote
payments of principal shall be due and
townhouse unit is sold... The amount of payable when each
upon the sale of each townhouse unit shallnbepcomputed bypaid
dividing the total loan by the number of townhouse units built.
In order to keep the purchase
affordable., the Cit ma Price of the townhouse units
subordinate deed ofytrusttfromathelpurchaseroof each tnd a
unit in lieu of being repaid at the time of initial sale ofueac
unit. h
e• A Deed of Trust which shall secure the above
Note and include a nonrecourse provision, and shall be
20g:EdenPet.OPT
2
ODD l aO8 1J G5
(2/26/92)
subordinated to the deeds of trust securing any predevelopment
and constuction loans for the Property, if, and only if, the
following conditions are satisfied in their entirety: (i) the
proceeds of the loans shall be used. only for costs and expenses
related to the Property; (ii) the loans bear interest at a rate
not greater than the prevailing rate for similar loans for
similar types of developments; and (iii) all interest and
principal are ,payable in full at the maturity of the loans.
Partial reconveyances of this Deed of Trust shall be recorded
upon the sale of each townhouse unit to the owner-occupant.
5.2 Title.. Eden shall take title to the Property
subject to all liens and encumbrances then encumbering the
Property. During the term of the Option, the City shall not
record or permit any lien or encumbrances to be recorded on the
Property without the prior written approval of Eden.
5.3 Escrow. The sale of the Property shall be
consummated through an escrow established with a title company
chosen by Eden. The closing date for the escrow shall be no
later than thirty (30) days after Eden delivers its notice~to
exercise the Option.
5.4 Closin Costs. Eden shall pay all closing costs
and fees incurred~in connection with the sale and transfer of the
Property.
6. NOTICES,. All notices
shall be either hand-delivered
addressed to the other. party as
If to Eden:
Eden Housing,. Inc.
Attn: Executive Director
22941 Atherton St., Ste. D
Hayward, CA 94541
required by this Option Agreement
or sent by United States mail
follows:
If to the City:
City of Petaluma
Attn: Community Development
& Planning Director
11 English Street
Post Office Box 61
Petaluma, CA 94953
Notces.shall be deemed delivered when either hand-delivered
or three (3) days after the postmark.
7. ASSIGNMENT;. Eden shall not assign its rights under
this Option Agreement without the prior written approval of the
City. Notwithstanding the preceding sentence, Eden may assign
its rghts•under•ths Option Agreement to (i) a limited
partnership in which -Eden or a nonprofit corporation wholly-owned
or controlled by Eden is the general partner, and/or (ii) a
nonprofit corporation wholly-owned or controlled by Eden.
8. ATTORNEYS' FEES. If it becomes necessary for either
party to take legal action to enforce any of the terms of 'this
Option Agreement, the prevailing party shall be entitled to
reasonable attorneys' fees and costs.
20g:EdenPet.OPT 3
(2/26/92)
b-2~1gog~IGs
P
above.
Eden using, Inc.., a Cal or is
nonprt~public~ ~~nefit o ration
Approvet~'~ as to form:
Ctty ~,ftorney
:OP8POF8~-TE ACKRfl®W~.~DCWAE~T
ty
State of ~j~~ ~- ~ F/'kT/S~-~` On•this the ~'~day of F~~~ u ~k t/ 1g~ before me,
ss, lam. L`l~ c~ ~ U ~T, 5 l-G ~~ ~~
County of ~ ~T' ~' ' C~ ~4
the undersigned Notary Public,. personalty appeared
ORO lqp~ t~GS
' ~` OFFICIAL NOTARY SEAL
® BEVERLY„! STOVEfi
.~,~ ., NgcaryPUfyic-CaliforTtia
A~AMEDA'CQU
~9 TN ~,,~ irVE ~ . ~~ ~7Qs c~~~ -
personally known to me
p proved to me on the basis of satisfactory evidence '
to be the personf,~ who executed the within instrument as
c X C C U T~ !iE /7 i P = C' T C f? or on behalf of the corporation therein
named, and acknowledged to me that the corporation executed it.
WETNESS my'hand and official seal.
Na. zoz
f ., ._ NTY
~yComm: Espre3 SEP`p3,1g94 ~ ~ J '
Notary's Signature
-~
ATTENTION NOTARY: Although-the inttxmaGOn requested bebw 6 OPTIONAL, it cotdd prevent fraudulent attachment of thrs certificate to another document.
Title or Type of Document ~~i ~GN i'G~ET~ly'E,!?
THIS CERTIRCATE
MUST 8E ATTACHED Number of Pages Date of Document ^ "°~U ' ~ ~'
TO THE DOCUMENT ~
.DESCRIBED AT RIGHT: Signer(sy Other Than Named Above ~' .. r '` ~~ ~ ~~-i~tc~ ~Z=~C.i.~~ :•~. ;
J ~. J
BY~ i
Catherin .'Merschel
Executive Director
City of Petaluma., a~ nicipal
corporation
BY ~ ,ate
This Agreement is executed as of the date first wri
. -
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