Report to Housing Authority
Wednesday, June 08, 2016
Consent
SUBJECT:
Title
CONSIDER ADOPTING RESOLUTION NO. 16-13-CHA APPROVING THE THIRD AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE CARSON HOUSING AUTHORITY AND CITYVIEW 616 EAST CARSON, LLC IN CONNECTION TO THE DEVELOPMENT OF THE PROPERTY LOCATED AT 616 EAST CARSON STREET (HOUSING AUTHORITY)
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I. SUMMARY
CityView 616 East Carson, LLC (Developer) desires to amend the Disposition and Development Agreement (DDA) with the Carson Housing Authority (Authority), dated February 16, 2011, for development of the 9.57-acres of land formerly owned by the Authority and located at 616, 542, and 550 E. Carson Street (Site) (Exhibit No. 1). The site is being developed as a mixed-use commercial/retail and residential project (Project) and is over 90% complete with two restaurants already open for business. The completion deadline was set to May 31, 2016, but due to construction and sales market conditions during build-out, the actual timeframe is slightly longer than the original estimate.
The Third Amendment (Amendment) (Exhibit No. 2) would extend the Developer’s date of completion to August 31, 2016. Adoption of Resolution No. 16-13-CHA (Exhibit No. 3) will authorize the Amendment.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE further reading and ADOPT Resolution No. 16-13-CHA, “A RESOLUTION OF THE CARSON HOUSING AUTHORITY APPROVING THE THIRD AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE CARSON HOUSING AUTHORITY AND CITYVIEW 616 EAST CARSON, LLC RELATING TO THE DEVELOPMENT OF THE 9.57-ACRE PROPERTY LOCATED AT 550, 542 AND 616 EAST CARSON STREET, CARSON, CALIFORNIA.”
2. AUTHORIZE the Authority Chairman to execute the Third Amendment to the Disposition and Development Agreement following approval as to form by the Authority Counsel.
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III. ALTERNATIVES
TAKE another action the Authority Board deems appropriate.
IV. BACKGROUND
The Developer and the Authority entered into a DDA in 2011. Under the DDA the Authority sold the Site to the Developer for development of a mixed-use Project that includes 152 for-sale homes and 13,000 square feet of ground floor retail. Escrow closed on April 17, 2013 and the Developer began construction soon thereafter. The Project is over 90% complete with 104 homes having received certificates of occupancy. The Developer has also received certificates of occupancy for the community recreation center, and 6,300 square feet of retail shell. Seventy-six homes have been sold and are occupied, and two restaurants are open for business. A lease has also been signed with the UPS Store which is projected to open before the end of the year.
Construction of the remaining 48 homes and 6,700 square feet of retail shell is nearing completion and the remaining buildings are scheduled to receive their certificates of occupancy this summer. In addition, 45 of the 48 homes under construction have been pre-sold.
The Project is over 90% complete, but certificates of occupancy for the remaining buildings, which are required, will not be issued prior to the completion deadline of May 31, 2016. Therefore, the Developer is requesting an extension of the completion date to August 31, 2016. Because the Project is over 90% complete and quality retail tenants are already open for business the Developer is expected to complete the Project by the extended deadline, therefore approval of the Amendment is recommended.
V. FISCAL IMPACT
No fiscal impact.
VI. EXHIBITS
1. Vicinity Map. (pg. 3)
2. Third Amendment to DDA. (pgs. 4-6)
3. Resolution No. 16-13-CHA. (pgs. 7-8)
Prepared by: Amelia Soto, Project Manager