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HomeMy WebLinkAbout2017 CON HA Park Villas Pointe LLC - Eta Street and Bucky Lane Purple Cow - Exclusive Negotiating AgreementEXCLUSIVE NEGOTIATING AGREEMENT (Park Villas Pointe, LLC/ -Purple Cow -North Highland) This Exclusive Negotiating Agreement ("Agreement") is dated as of the 20th day of June, 2017, by and between the Community Development Commission -Housing Authority of the City of National City ("CDC -HA") and Park Villas Pointe, LLC, a California limited liability corporation "Developer"). RECITALS A. The CDC -HA owns that certain approximately 1.3-acre parcel of real property located on North Highland Avenue between Eta Street and Bucky Lane in the City of National City, County of San Diego, California, which is sometimes referred to as the "Purple Cow" and is more particularly described on Exhibit A, attached hereto and incorporated herein ("Property"). B. Developer desires to develop the Property, generally, as set forth in that certain letter, dated as of May 1, 2017, on behalf of the Developer, to Alfredo Ybarra, Housing Director of the City of National City, a copy of which is attached hereto to as Exhibit B ("Developer Proposal"). The CDC -HA and Developer desire to negotiate any and all agreements reasonably necessary for the CDC -HA to ground lease the Property to the Developer and as generally set forth in the Developer Proposal ("Project"). C. The purpose of this Agreement is to establish a period during which Developer shall have the right to exclusively negotiate with the CDC -HA the terms of the Project with respect to the Property. NOW, THEREFORE, Developer and the CDC -HA, hereby agree as follows: 1. Negotiating Period. The CDC -HA agrees to exclusively negotiate with Developer and Developer agrees to exclusively negotiate with the CDC -HA regarding the terms of any and all agreements reasonably necessary respect to the Project for a one-year (1-year) period from the date first set forth above ("Negotiating Period"). The CDC -HA and Developer shall negotiate diligently and in good faith to carry out the obligations of this Agreement during the Negotiating Period. 2. Site Control. The Property is currently owned by the CDC -HA. 3. Costs and Expenses. Upon the execution and delivery of this Agreement, the Developer shall pay the CDC -HA $25,000.00, to partially pay the CDC-HA's anticipated costs with respect to the Project. Unless, otherwise, indicated herein, Developer shall have no additional payment obligations to CDC -HA during the Negotiating Period. In addition, if, both, the CDC -HA and Developer are satisfied with the proposed Project, and enter into a ground lease or other mutually acceptable written agreement(s) necessary for the development and construction of the Property, then, the Developer shall pay the CDC -HA an additional $25,000.00, to partially pay the CDC- HA's costs with respect to the Project. Except as otherwise set forth herein, each party shall be 1 responsible for its own costs and expenses in connection with any activities and negotiations undertaken in connection with the performance of its obligations under this Agreement. 4. Developer Submissions. Developer agrees that, within 90 days of the execution hereof, or on or before a date as mutually determined by the parties hereto, Developer shall submit to the CDC -HA for review, a proposal for development of the Property and the Project, with supporting documents. In addition, Developer will provide the CDC -HA with the following documents, reports and information prior to the expiration of this Agreement: (a) Basic floor area ratios or a potential unit mix by number of bedrooms, proposed income targeting, proposed construction work with preliminary cost estimates, and site amenities, with a schedule for implementation. (b) A proposed schedule for development of the Project. (c) A financial pro forma which contains: (i) a projected development budget for the Project, (ii) a projected sources and uses analysis, (iii) a 15-year cash flow analysis, (iv) a proposed rent schedule and utility allowance schedule, and (v) a projected operating budget for the Project. (d) Preliminary evidence of conventional construction and permanent financing options. (e) The name and qualifications of the architect which Developer proposes to use, if any. The CDC -HA will approve or disapprove the proposed architect in its sole and absolute discretion. (f) The name and qualifications of the management agent that Developer proposes to use. The CDC -HA will approve or disapprove the proposed management agent in its sole and absolute discretion. 5. Approval and Negotiation of Agreements. If after the completion of the required and agreed upon due diligence necessary to determine the viability of the development of the Property, and, both, the CDC -HA and Developer approve of the proposed Project, the CDC -HA and Developer shall seek in good faith to negotiate and draft any and all mutually acceptable agreements reasonably necessary for the Project. However, by entering into this Agreement, the parties are not contractually bound to enter into any further agreements. 6. Termination/Expiration of Agreement. Except as provided in Section 10 below, or if this Agreement is extended or amended by mutual written agreement of the parties, if at the end of the Negotiating Period, the CDC -HA and Developer have not agreed upon mutually acceptable agreements reasonably necessary for the development of the Project, then this Agreement shall terminate. 7. Cooperation. The CDC -HA agrees to cooperate with Developer in supplying financial institutions with appropriate information, if available and not otherwise privileged, to facilitate the Developer's financing for the Project. The CDC -HA shall also cooperate with Developer's 2 professional consultants and associates in providing them with any information and assistance reasonably within the capacity of the CDC -HA to provide in connection with the proposed Project. 8. Nondiscrimination. Developer shall not discriminate against nor segregate, any person, or group or persons on account of sex, race, color, marital status, religion, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Project, nor shall Developer establish or permit any such practice or practices of discrimination or segregation in the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Project. 9. Environmental Requirements. Certain state and local environmental requirements (including, but without limitation, the California Environmental Quality Act of 1970, Public Resources Code Section 21000, et seq.) may be applicable to the proposed Project. Pursuant to such requirements, certain environmental documents may be required to be prepared and certified for the proposed Project. 10. Inspection of the Property. Developer and its agents, representatives, consultants and contractors may enter upon the Property, upon not less than forty-eight (48) hours' prior written notice (including electronic mail communication) to the CDC -HA, solely for the purpose of conducting visual, non-invasive inspections of the Property. If the Developer desires to do any invasive testing at the Property, the Developer may do so only after obtaining the City's prior written consent to the same, which consent may be withheld or granted on conditions in the City's sole and absolute discretion. The Developer shall provide the City with a complete set of plans, drawings and specifications ("Invasive Testing Plans") that define to the sole satisfaction of the City the invasive testing to be performed on the Property and the names of all environmental and other consultants, contractors and subcontractors who will be performing such invasive testing (collectively "Developer's Consultants"). The Developer shall deliver the names of the Developer's Consultants and the Invasive Testing Plans to the City concurrently with its request to the City that the Developer desires to perform invasive testing. The Developer shall promptly restore the Property to the condition the Property was in immediately prior to any such tests, at the Developer's sole cost and expense. (a) If the City consents to any Invasive Testing Plans, the Developer, the Developer's Consultants, and each of their agents, representatives, consultants and contractors entering the Property, shall maintain commercial general liability insurance covering such entry, in the amounts of Two Million Dollars ($2,000,000.00) combined single limit for each occurrence or Four Million Dollars ($4,000,000.00) general aggregate for bodily injury, personal injury and property damage including contractual liability. If no Invasive Testing Plans are required under this Agreement, the Developer shall maintain commercial general liability insurance covering such entry, in the amounts of One Million Dollars ($1,000,000.00) combined single limit for each occurrence or Two Million Dollars ($2,000,000.00) general aggregate for bodily injury, personal injury and property damage including contractual liability. (b) Prior to entering upon the Property, the Developer (and if required by Section 10(a), above, the Developer's agents, representatives, consultants and contractors) shall provide, additional insured endorsements naming the City and its officers, officials, agents, employees, and 3 volunteers as additional insureds. Such separate additional insured endorsement shall be provided to the City. (1) The certificate holder for all policies of insurance required by this Agreement shall be: City of National City c/o Risk Manager 1243 National City Boulevard National City, CA 91950-4397 (2) Insurance shall be written with only insurers authorized to conduct business in California that hold a current policy holder's alphabetic and financial size category rating of not less than A:VII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. In the event coverage is provided by non - admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. (3) The Developer (including the Developer's Consultants) shall not enter upon the Property until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the City's Risk Manager. (4) The aforesaid policies shall constitute primary insurance as to the City, its officers, officials, employees, and volunteers, so that any other policies held by the City shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the City's Risk Manager, at the address listed in subsection (1) above, of cancellation or material change. (5) If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the Developer shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. (6) All deductibles and self -insured retentions in excess of $ 10,000 must be disclosed to and approved by the City. (7) If the Developer maintains broader coverage or higher limits (or both) than the minimum limits shown in subsection (a) above, the City requires and shall be entitled to the broader coverage or higher limits (or both) maintained by the Developer. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage in subsection (a) shall be available to the City. (c) The Developer shall indemnify and defend the City, its officers, officials, agents, employees and volunteers and the Property from and against, and shall hold the City, its officers, officials, agents, employees and volunteers and the Property harmless from, any actions, losses, costs, damages, claims, suits, demands, proceedings and/or liabilities, including but not limited to, 4 mechanics' and materialmen's liens and reasonable attorneys' fees, and defense costs, of any kind or nature, including worker's compensation claims, of or by anyone whomsoever, resulting from or arising out of the actions of Developer and/or its agents, representatives, consultants and contractors upon the Property; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers, employees or volunteers. City will cooperate reasonably in the defense of any action, and Developer shall employ competent counsel, reasonably acceptable to the City Attorney. The indemnity, defense and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement. (d) The Developer shall repair any damage caused to the Property by the Developer or its agents, representatives, consultants and contractors. The Developer shall not permit any mechanic's, materialman's, contractor's, subcontractor's or other lien arising from any work done by the Developer or its agents, representatives, consultants and contractors pursuant to this Agreement to stand against the Property. If any such lien shall be filed against the Property, the Developer shall cause the same to be discharged or bonded within ten (10) days after actual notice of such filing, by payment, deposit, bond or otherwise. The Developer's obligations under this Section 10 shall survive the termination or expiration of this Agreement. 11. Address for Notices. Any notices pursuant to this Agreement shall be sent to the following addresses: To CDC -HA: Copy to: To Developer: Community Development Commission - Housing Authority of the City of National City 1243 National City Blvd. National City, California 91950 Attn: Executive Director Christensen & Spath LLP 550 West C Street, Suite 1660 San Diego, CA 92101 Attn. Walter F. Spath, Esq. Larry Gough Manager Park Villas Pointe, LLC 1800 Stevens Avenue Louisville, Kentucky 40205 12. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. 5 13. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the CDC -HA and Developer. 14. Future Agreements to Supersede this Agreement. This Agreement will be superseded, if and when the Developer and CDC -HA approve and execute all mutually acceptable agreements reasonably necessary for the development of the Project. 15. Assignment Prohibited. In no event shall Developer assign or transfer any portion of Developer's rights or obligations under this Agreement without the prior express written consent of the CDC -HA, which consent may be withheld in the CDC-HA's sole and absolute discretion. 16. Time of Essence. Time is of the essence of every portion of this Agreement in which time is a material part. 17. Signature Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the CDC -HA that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. 18. No -Shop. CDC -HA agrees that during the Negotiating Period it will not market, sell, convey, option or, otherwise, dispose of or transfer title to or its interest in any part of the Property or to engage in any related disposition, development or discussions about the Property with any other third party or public or private sector entities, unless, first, obtaining the prior approval of the Developer. 6 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. CDC -HA: Community Development Commission -Housing Authority of the City of National City Leslie Deese, Executive Director APPROVED AS TO FORM: APPROVED AS TO FORM: ANGIL P. MORRIS-JONES Attorpey, By: Rob M. Contreras Deputy City Attorney [SIGNATURES CONTINUED ON FOLLOWING PAGE] 7 DEVEL�PER: Park Vil s Pointe, L By: Print Name: Larry Its: Manager behalf of Park Villas Pointe, LLC and Urban -West Development) 8 EXHIBIT A PROPERTY LEGAL DESCRIPTION Real property in the City of National City, County of San Diego, State of California, described as follows: PARCEL 1: (APN: PORTION 551-470-43) THAT PORTION OF LOT 69 OF THE EX -MISSION LANDS OF SAN DIEGO (COMMONLY KNOWN AS HORTON'S PURCHASE), IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 283, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 9, 1878, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE EASTERLY LINE OF THE PUEBLO OF SAN DIEGO THAT IS 59.50 RODS SOUTH AND 73.80 RODS WEST OF THE NORTHEAST CORNER OF SAID LOT 69; THENCE NORTH 89°40'00" EAST 379.60 FEET TO THE SOUTHEAST CORNER OF LAND DESCRIBED IN DEED FROM CHARLES O. POWERS TO E.F. MCCORMICK RECORDED MAY 2, 1922 IN BOOK 876, PAGE 465 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY; THENCE ALONG THE EAST LINE OF MCCORMICK LAND, NORTH 15°33'00" WEST, 289.00 FEET TO THE MOST NORTHERLY CORNER THEREOF; THENCE ALONG THE NORTH LINE OF SAID LAND, SOUTH 73°27'00" WEST, 76.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE AT RIGHT ANGLES, NORTH 16°33'00" WEST, 48.00 FEET; THENCE SOUTH 73°27'00" WEST, PARALLEL WITH THE NORTH LINE OF SAID MCCORMICK LAND, 295.00 FEET, MORE OR LESS, TO THE EAST LINE OF PUEBLO LANDS OF SAN DIEGO; THENCE ALONG SAID PUEBLO LANDS LINE SOUTH 16°57'00" EAST, 48.00 FEET, TO THE NORTH LINE OF SAID MCCORMICK LAND; THENCE ALONG SAID NORTH LINE NORTH 73°27'00" EAST, 295.00 FEET TO THE TRUE POINT OF BEGINNING. PARCEL 2: (APN: PORTION 551-470-43) THE NORTHWESTERLY 12 FEET OF THE SOUTHWESTERLY 295 FEET OF ALL THAT PORTION OF LOT 69 OF A PORTION OF THE EX -MISSION LANDS OF SAN DIEGO (COMMONLY KNOWN AS HORTON'S PURCHASE), IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 283, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 9, 1878, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WESTERLY LINE OF SAID LOT 69, SOUTH 981.75 FEET AND WEST 1,217.70 FEET FROM THE NORTHEAST CORNER OF SAID LOT; THENCE NORTH 89°40'00" EAST, 379.60 FEET; THENCE NORTH 15°33'00" WEST, 289.00 FEET; THENCE SOUTH 73°27'00" WEST, 371.00 FEET TO A POINT IN SAID WESTERLY LINE; THENCE SOUTH 16°57'00" EAST, ALONG SAID WESTERLY LINE, 182.20 FEET TO THE POINT OF BEGINNING. 9 PARCEL 3: (APN: 551-470-15, 551-470-17, 551-470-18, 551-470-19 AND 551-470-48) THAT PORTION OF LOT 69 OF A PORTION OF THE EX -MISSION LANDS OF SAN DIEGO (COMMONLY KNOWN AS HORTON'S PURCHASE), IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 283, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 9, 1878, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE EASTERLY LINE OF THE PUEBLO OF SAN DIEGO THAT IS 59.50 RODS SOUTH AND 73.80 RODS WEST OF THE NORTHEAST CORNER OF SAID LOT 69; THENCE NORTH 89°40' EAST 379.60 FEET TO THE SOUTHEAST CORNER OF LAND DESCRIBED IN DEED FROM CHARLES O. POWERS TO E.F. MCCORMICK RECORDED MAY 2, 1922 IN BOOK 876, PAGE 465 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY; THENCE ALONG THE EAST LINE OF SAID MCCORMICK LAND, NORTH 15°33' WEST, 289.0 FEET TO THE MOST NORTHERLY CORNER THEREOF; THENCE ALONG THE NORTH LINE OF SAID LAND, SOUTH 73°27' WEST, 76.00 FEET; THENCE AT RIGHT ANGLES, NORTH 16°33' WEST 48.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 16°33' WEST TO THE NORTH LINE OF LAND DESCRIBED IN DEED FROM JAMES W, POWERS ET UX TO CHARLES O. POWERS RECORDED NOVEMBER 5, 1921 IN BOOK 855, PAGE 428 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY; THENCE WEST ALONG THE NORTH LINE OF LAND SO DESCRIBED IN SAID DEED TO THE NORTHWEST CORNER THEREOF, BEING A POINT IN THE EAST LINE OF THE PUEBLO OF SAN DIEGO; THENCE ALONG SAID PUEBLO LINE SOUTH 16°57' EAST TO INTERSECTION WITH A LINE BEARING SOUTH 73°27. WEST FROM THE TRUE POINT OF BEGINNING; THENCE NORTH 73°27' EAST 295.00 FEET TO THE TRUE POINT OF BEGINNING. 10 EXHIBIT B Letter (and enclosures) from Larry Gough, Managing Member of Park Villa Pointe, LLC to Alfredo Ybarra, Director of Housing and Economic Development of the City of National City, dated as of May 1, 2017. (see attached) 11 Exhibit B Via Overnight Courier and Electronic Mail May 1, 2017 Alfredo Ybarra Community Development Manager Housing, Grants & Asset Management Department City of National City MLK Jr. Community Center 140 E. 12th Street, Suite B National City, CA 91950 Subject: North Highland Avenue and Eta Street, National City, California Development Dear Alfredo, As a follow-up to our February 15t meeting and on behalf of Park Villas Pointe, LLC and Urban -West Development (collectively, "Developer"), I am writing to formally request approval to (i) restart the development process of the site located at North Highland Avenue and Eta Street, National City, California (formerly, the Purple Cow Dairy site) ("Development Site") and (ii) to initiate the process for City of National City ("City") approval of an Exclusive Negotiating Agreement necessary to accomplish such development efforts. Development of the Development Site would be accomplished concurrently with development of the adjacent one -acre, vacant parcel of land, which is part of the Park Villas Apartments property. Park Villas Pointe, LLC, owners of the Park Villas Apartments and developers -managers of affordable housing developments in many areas of the country, proposes to master plan and develop both sites, in partnership with Urban -West Development, a local development and consulting firm, the principals of which have been involved in affordable housing and commercial development throughout San Diego County. As you know, the members of Urban -West development were involved with the previous effort to develop the Development Site when La Maestra Community Health Centers decided last February to withdraw from the project. The development of the two aforementioned, adjacent sites will be planned and designed as a coordinated development. The preliminary development concept is similar to the previous Exhibit B plan — that is, affordable housing with medical and related services. The Development Site will feature a Senior PACE Center ("PACE Center"), operated by San Ysidro Health Center, which operates 11 health clinics. The new PACE Center will include 20,000 square feet of space for a coordinated health and social services program for the senior population. The San Ysidro Health Center's PACE Program will provide social services, personal care, physical -occupational and speech therapy, meals and snacks, and group and individual recreational activities. The PACE Center will also provide on -site adult primary medical care for clients including doctor exams, medical specialty care services, nursing care, behavioral health services including psychiatry, dental services, prescription medications, emergency services, laboratory/x-ray services, physical therapy, and nutritional counseling, as well as off -site home care, hospital care and nursing home care. The development will include a 4,000-square foot child care center, to be operated by the current child care provider, Episcopal Community Services ("ECS"). ECS currently operates a "Head Start" program at Park Villas Apartments, using two of the apartments. The new facility will allow ECS to more than double the space and the number of children served. The proposed development will also include approximately 24 one- and two -bedroom apartments for seniors and families with incomes approximately 60% to 80% of area median income, and 70 apartments at 100% of area median income. Parking for tenants, staff and visitors will primarily be in one level underground parking garages, with additional short term drop-off parking for clients of the PACE Center on the ground level. The proposed development will be financed in part by New Markets Tax Credits ("NMTC") Program. The New Markets Tax Credit Program was established as part of the Community Renewal Tax Relief Act of 2000. The goal of the program is to spur revitalization efforts of certain communities across the United States. The NMTC Program provides tax credit incentives to investors for equity investments in certified Community Development Entities ("CDE"), which invest in low-income communities. Civic San Diego's CDE is interested in allocating the tax credits for this development, in conjunction with another CDE, likely a major bank. Total cost for the project is approximately $37,000,000. There are major banks interested in buying the $37,000,000 of NMTC, as well as providing the related leverage loan of approximately $23,700,000. It is anticipated that the NMTC Program will generate approximately $8,750,000 in loan/equity funds for the project. I have included drafts of various site plan aspects, which continue to evolve as we refine the project development. Exhibit B We look forward to restarting this development effort and bringing needed affordable housing and child care, along with senior medical and support services, to this northern portion of National City. Sincerely, Larry Gough Manager Park Villas Pointe, LLC enclosures cc: Carlos Aguirre, Program Manager, caguirre@nationalcityca.gov Richard Juarez, Urban -West Development 3 MXC-1 ZONE 0 .... ..'"'" - ........."- ... ...-^* . - ...../ - ...../ ------<:—;'':------r:),---f:---i ........-."----- _,...-• - - vook6040 ---' -..---__-:.--„---<--, '• ...4.--- U-I ----"r— ___. -----,-:- -1=---- • ------ NW ---- \ ...„---;-:"'----:'"-- -- ...„,52,...-_--- e/ ' Ellat I _-------:- t\-- \P ..-----_ ..... ----- SCALE T - W PIORTFI _..-- - • ARCHITECTURAL SITE PLAN PODIUM LEVEL PLAN 0 10 26 e1.1 - RODRIGUEZ ASSOCIATES Arl ARCHITECTS & PLANNERS, INC -sg..1.4$4•Dtkr...."‘" i1/9 SNOT WO 1.11141,91 SITE DATA FirACE CENTER SITE NET WM AREA 64146 / 147 ACRES PROPERTY ZONE MXC RESIDENTIAL UNIT MIX ONE BR UNIT& 412 82. TWO BR uwra WS, ▪ SYS • 13 43% TOTAL NUMBP_R OF moms RESIDENTIAL COMMUNITY SPACES 022)0234 COMMUNITY CENTER CC/AMER:1AL SPACES: PACE CENTER • 42 120% 000142 0091012. PARKING REOUIRECt ONE 1 TWO BR (2T& 42 X 1.0 = 42 SPACES COMMEROAL 041000 SF) 5 FTR 1630 • 100 SPACES TOTAL SPACES REQUIRED • 142 SPAC23 PARKING PROVIDED: ISAFUGE RESIDENTIAL PARAIND BARAGE COMMERCIAL PARKIND OPEN COMMERCIAL PARKIND • 42 = ea TOTAL SPACES PROVICIF_D: • 144 PARK VILLA SITE NET SITE AREA 41.611 8, / 706 ACRES PROPERTY ZONE MXC FESIDENTIM. MR MIX OIE 11R UNTT8 5621F 39 T9 1 MP OR WATS *17 SF • II 27 TOTAL NUMBER OF UNITS RES/DENDAL COMMUNITY SPACES COMMON INTERIOR AREA COMMERCIAL SPACES TWO STORY BUiLDING PARKING RFOLIIRED ONE 1 TWO BR UNITS: 45 X tO COMMERCIAL 01.000 SF) 3 PER IOW • 46 VON = use sr • NOW SF • M SPACES • 33 SPACES TOT. SPACES REQUIRED • 18 SPACES PARKIHO enovtoccr. WAAGE RESIDENIIAL PARKIND 6112400E COMMERCIAL PARKIN@ • 3. 46 34 TOTAL SPACES PROVIDED • 10 NORTH HIGHLAN▪ D SITE INVESTMENT PROPERTY ADIVSORS ,TFVFN, )O)l4VIt, 80447*7 ARCHITECTURAL SITE PLAN FOR REMY 01 OAF 1:104,1•11. • I .1. WA 31. 2017 I 01 1-- Hag S,IEET AS1.1 MXC-1 ZONE / �- r ,�----'',lid • • C9. ARCHITECTURAL SITE PLAN SUBTERRANEAN GARAGE LEVEL PLAN e NORTH SCALE f • 20 3NALL I• - 20' EARODRIGUEZ ASSOCIATES ARCHITECTS & PLANNERS, INC. M• MMARA•1>AMI�09.1MA 0 1 IMO N••MMF • SITE DATA r PACE CENTER SITE NET BITE ARF_/c 64148 8F. / 147 ACRES PROPERTY ZONE AMC RESIDENTIAL UNIT MIX. ONE BR W8T3 462 SF, TWO BR UNITS 6218E a 24 62 • 18 4314 TOTAL NUMBER OF UNITS + 42 100. RESIDENTIAL COMMUNITY SPACES OFFICES 8 COMMUNT' CENTER 2000 SF COMMERCIAL SPACES PACE CENTER + 28000 BF. PARKING REOUIREII ORE 8 TWO BR UNITS 42 K TO = 42 SPACES COMMERCIAL (20000 SF) ! PER IOW • 100 SPACES TOTAL SPACES REQUIRED + 142 SPACES PARKING PROVIDED GARAGE RESIDENTIAL PARKING GARAGE COMMERCIAL PARKING OPEN COABAEMIA4 PARKING a 42 = 88 TOTAL SPACES PROVIDED + TM PARK VILLA SITE NET SITE AREA: 46311 SF PROPERTY ZONE M%C RESIDENTIAL UNIT AGA ONE BR LINTS .62 SF TWO 811 LINTS KT SF. 1.06 ACRES = 33 T3 • 12 27 TOTAL NUMBER OF UNITS RESID0TIAL COMMUNITY SPACES COMMON INTERIOR AREA COMMERCIAL SPACES TWO STORY BUILDING PARKING REQUIRED ONE 8 TWO 8R UNITS. 46 K TO COMMERCIAL 0 000 SF) I PRR DSO a 46 =T. LR00 SF. = T10008F. TOTAL SPACES REWIRED PARKING PROVIDED 46 SPACES 39 SPACES TS SPACES GARAGE RESIDENT. PARKING • 46 GARAGE COMMERCIAL PARKING • 38 TOTAL SPACES PROVIDED 88 NORTH HIGHLAND S1T'E INVESTMENT PROPERTY ADIVSORS avi STEVENS 1.OLISYI LE, KT 4J33 ARCHITECTURAL SITE PLAN I4'N INN 31, X17 AS 1.0 RESOLUTION NO. 2017 — 54 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN EXCLUSIVE NEGOTIATING AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY AND PARK VILLAS POINTE, LLC FOR THE DEVELOPMENT OF A 1.47 ACRE PROPERTY LOCATED BETWEEN ETA STREET AND BUCKY LANE ON NORTH HIGHLAND AVENUE IN NATIONAL CITY WHEREAS, , the Community Development Commission -Housing Authority of the City of National City ("CDC -HA") owns a 1.47 acre parcel of real property (the "Property") located on North Highland Avenue between Eta Street and Bucky Lane in the City of National City, County of San Diego, California, which is sometimes referred to as the "Purple Cow"; and WHEREAS, Park Villas Pointe, LLC, desires to develop a mixed -used project on the Property that includes approximately 94 units of rental housing, medical service center, and a childcare facility; and WHEREAS, the CDC -HA and Park Villas Pointe desire to exclusively negotiate any and all agreements reasonably necessary for the CDC -HA to ground lease the Property to Park Villas Pointe; and WHEREAS, upon the execution and delivery of the Exclusive Negotiating Agreement, the Developer shall pay the CDC -HA $25,000.00, to partially pay the CDC-HA's anticipated costs with respect to the Project; and WHEREAS, if both the CDC -HA and Park Villas Pointe are satisfied with the proposed Project, and enter into a ground lease or other mutually acceptable agreements necessary for the construction at the Property, then Park Villas Pointe shall pay the CDC -HA an additional $25,000.00, to partially pay the CDC-HA's costs with respect to the Project. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission -Housing Authority of the City of National City hereby authorizes the Executive Director to execute an Exclusive Negotiating Agreement by and between the Community Development Commission -Housing Authority of the City of National City and Park Villas Pointe, LLC, for the development of a 1.47 acre property located between Eta Street and Bucky Lane on North Highland Avenue in National City. The Exclusive Negotiating Agreement is on file in the office of the City Clerk. ATTEST: PASSED and ADOPTED this 20th day of June, Leslie Deese, Secretary n Morrison, Chairman APPROV D AS TO FORM: <� p �°`' . Morris -Jones eral Counsel Passed and adopted by the Community Development Commission — Housing Authority of the City of National City, California, on June 20, 2017 by the following vote, to -wit: Ayes: Boardmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Chairman, Housing Authority Secretary, Housing Authority By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2017-54 of the Community Development Commission — Housing Authority of the City of National City, California, passed and adopted on June 20, 2017. Secretary, Housing Authority By: Deputy MEETING DATE: June 20, 2017 CITY OF NATIONAL CITY, CALIFORNIA COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY COUNCIL AGENDA STATEMENT q0Lf_I_6/C3ef yat3-_ AGENDA ITEM Na 49 ITEM TITLE: Resolution of the Community Development Commission -Housing Authority of the City of National City authorizing the Executive Director to execute an Exclusive Negotiating Agreement by and between the Community Development Commission -Housing Authority of the City of National City and Park Villas Pointe, LLC for the development of a 1.47 acre property located between Eta Street and Bucky Lane on North Highland Avenue in National City. PREPARED BY: 'Carlos Aguirre, Housing & Econ. Dev. Mgr. DEPARTMENT: H PHONE: 619-336-4391 EXPLANATION: APPROV ing & Economic elopme1 t On May 1, 2017 Park Villas Pointe, LLC ("Developer") presented a e pro.osal to the Community Development Commission -Housing Authority of the City of National City ("Housing Authority") proposing to develop a mixed -use project ("Project") on a vacant Housing Authority -owned parcels, collectively known as the Purple Cow ("Purple Cow"), on North Highland Avenue. The Developer has site control of a parcel south of the Purple Cow and proposes a joint development with the Purple Cow parcels. The Project is proposed to include 16 rental units for households at or below 50% AMI and 78 rental units at market rate. The site would contain a PACE medical services center operated by San Ysidro Health Center serving low-income seniors and a Head Start child care facility. The Developer has already received a recommendation to fund the Project with New Markets Tax Credits ("NMTC") on May 19, 2017 from the Civic San Diego Economic Growth and Investment Fund. r=INANCIAL STATEMENT: APPROVED: rnance Developer will pay $25,000 to the Housing Authority when the APPROVED: MIS ENA is executed to partially pay for Housing Authority costs and pay an additional $25,000 upon execution of a ground lease or other mutually acceptable agreements necessary for construction at the Property. ACCOUNT NO. ENVIRONMENTAL REVIEW: The action is not considered a project as defined by the California Environmental Quality Act (CEQA), and is therefore not subject to CEQA review. ORDINANCE•• INTRODUCTION: FINAL ADOPTION: STAFF RECOMMENDATION: Adopt the resolution. BOARD / COMMISSION RECOMMENDATION: IN/AI ^\TTACHMENTS: Exclusive Negotiating Agreement 2. Resolution �Eso�v\\Z1.1 moo• r;001 • S�j Attachment No. 1 EXCLUSIVE NEGOTIATING AGREEMENT (Park Villas Pointe, LLC/ -Purple Cow -North Highland) This Exclusive Negotiating Agreement ("Agreement") is dated as of the 20th day of June, 2017, by and between the Community Development Commission -Housing Authority of the City of National City ("CDC -HA") and Park Villas Pointe, LLC, a California limited liability corporation "Developer"). RECITALS A. The CDC -HA owns that certain approximately 1.3-acre parcel of real property located on North Highland Avenue between Eta Street and Bucky Lane in the City of National City, County of San Diego, California, which is sometimes referred to as the "Purple Cow" and is more particularly described on Exhibit A, attached hereto and incorporated herein ("Property"). B. Developer desires to develop the Property, generally, as set forth in that certain letter, dated as of May 1, 2017, on behalf of the Developer, to Alfredo Ybarra, Housing Director of the City of National City, a copy of which is attached hereto to as Exhibit B ("Developer Proposal"). The CDC -HA and Developer desire to negotiate any and all agreements reasonably necessary for the CDC -HA to ground lease the Property to the Developer and as generally set forth in the Developer Proposal ("Project"). C. The purpose of this Agreement is to establish a period during which Developer shall have the right to exclusively negotiate with the CDC -HA the terms of the Project with respect to the Property. NOW, THEREFORE, Developer and the CDC -HA, hereby agree as follows: 1. Negotiating Period. The CDC -HA agrees to exclusively negotiate with Developer and Developer agrees to exclusively negotiate with the CDC -HA regarding the terms of any and all agreements reasonably necessary respect to the Project for a one-year (1-year) period from the date first set forth above ("Negotiating Period"). The CDC -HA and Developer shall negotiate diligently and in good faith to carry out the obligations of this Agreement during the Negotiating Period. 2. Site Control. The Property is currently owned by the CDC -HA. 3. Costs and Expenses. Upon the execution and delivery of this Agreement, the Developer shall pay the CDC -HA $25,000.00, to partially pay the CDC -HA' s anticipated costs with respect to the Project. Unless, otherwise, indicated herein, Developer shall have no additional payment obligations to CDC -HA during the Negotiating Period. In addition, if, both, the CDC -HA and Developer are satisfied with the proposed Project, and enter into a ground lease or other mutually acceptable written agreement(s) necessary for the development and construction of the Property, then, the Developer shall pay the CDC -HA an additional $25,000.00, to partially pay the CDC- HA's costs with respect to the Project. Except as otherwise set forth herein, each party shall be 1 Attachment No. 1 responsible for its own costs and expenses in connection with any activities and negotiations undertaken in connection with the performance of its obligations under this Agreement. 4. Developer Submissions. Developer agrees that, within 90 days of the execution hereof, or on or before a date as mutually determined by the parties hereto, Developer shall submit to the CDC -HA for review, a proposal for development of the Property and the Project, with supporting documents. In addition, Developer will provide the CDC -HA with the following documents, reports and information prior to the expiration of this Agreement: (a) Basic floor area ratios or a potential unit mix by number of bedrooms, proposed income targeting, proposed construction work with preliminary cost estimates, and site amenities, with a schedule for implementation. (b) A proposed schedule for development of the Project. (c) A financial pro forma which contains: (i) a projected development budget for the Project, (ii) a projected sources and uses analysis, (iii) a 15-year cash flow analysis, (iv) a proposed rent schedule and utility allowance schedule, and (v) a projected operating budget for the Project. (d) Preliminary evidence of conventional construction and permanent financing options. (e) The name and qualifications of the architect which Developer proposes to use, if any. The CDC -HA will approve or disapprove the proposed architect in its sole and absolute discretion. (f) The name and qualifications of the management agent that Developer proposes to use. The CDC -HA will approve or disapprove the proposed management agent in its sole and absolute discretion. 5. Approval and Negotiation of Agreements. If after the completion of the required and agreed upon due diligence necessary to determine the viability of the development of the Property, and, both, the CDC -HA and Developer approve of the proposed Project, the CDC -HA and Developer shall seek in good faith to negotiate and draft any and all mutually acceptable agreements reasonably necessary for the Project. However, by entering into this Agreement, the parties are not contractually bound to enter into any further agreements. 6. Termination/Expiration of Agreement. Except as provided in Section 10 below, or if this Agreement is extended or amended by mutual written agreement of the parties, if at the end of the Negotiating Period, the CDC -HA and Developer have not agreed upon mutually acceptable agreements reasonably necessary for the development of the Project, then this Agreement shall terminate. 7. Cooperation. The CDC -HA agrees to cooperate with Developer in supplying financial institutions with appropriate information, if available and not otherwise privileged, to facilitate the Developer's financing for the Project. The CDC -HA shall also cooperate with Developer's 2 Attachment No. 1 professional consultants and associates in providing them with any information and assistance reasonably within the capacity of the CDC -HA to provide in connection with the proposed Project. 8. Nondiscrimination. Developer shall not discriminate against nor segregate, any person, or group or persons on account of sex, race, color, marital status, religion, creed, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Project, nor shall Developer establish or permit any such practice or practices of discrimination or segregation in the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the Project. 9. Environmental Requirements. Certain state and local environmental requirements (including, but without limitation, the California Environmental Quality Act of 1970, Public Resources Code Section 21000, et seq.) may be applicable to the proposed Project. Pursuant to such requirements, certain environmental documents may be required to be prepared and certified for the proposed Project. 10. Inspection of the Property. Developer and its agents, representatives, consultants and contractors may enter upon the Property, upon not less than forty-eight (48) hours' prior written notice (including electronic mail communication) to the CDC -HA, solely for the purpose of conducting visual, non-invasive inspections of the Property. If the Developer desires to do any invasive testing at the Property, the Developer may do so only after obtaining the City's prior written consent to the same, which consent may be withheld or granted on conditions in the City's sole and absolute discretion. The Developer shall provide the City with a complete set of plans, drawings and specifications ("Invasive Testing Plans") that define to the sole satisfaction of the City the invasive testing to be performed on the Property and the names of all environmental and other consultants, contractors and subcontractors who will be performing such invasive testing (collectively "Developer's Consultants"). The Developer shall deliver the names of the Developer's Consultants and the Invasive Testing Plans to the City concurrently with its request to the City that the Developer desires to perform invasive testing. The Developer shall promptly restore the Property to the condition the Property was in immediately prior to any such tests, at the Developer's sole cost and expense. (a) If the City consents to any Invasive Testing Plans, the Developer, the Developer's Consultants, and each of their agents, representatives, consultants and contractors entering the Property, shall maintain commercial general liability insurance covering such entry, in the amounts of Two Million Dollars ($2,000,000.00) combined single limit for each occurrence or Four Million Dollars ($4,000,000.00) general aggregate for bodily injury, personal injury and property damage including contractual liability. If no Invasive Testing Plans are required under this Agreement, the Developer shall maintain commercial general liability insurance covering such entry, in the amounts of One Million Dollars ($1,000,000.00) combined single limit for each occurrence or Two Million Dollars ($2,000,000.00) general aggregate for bodily injury, personal injury and property damage including contractual liability. (b) Prior to entering upon the Property, the Developer (and if required by Section 10(a), above, the Developer's agents, representatives, consultants and contractors) shall provide, additional insured endorsements naming the City and its officers, officials, agents, employees, and 3 Attachment No. 1 volunteers as additional insureds. Such separate additional insured endorsement shall be provided to the City. (1) The certificate holder for all policies of insurance required by this Agreement shall be: City of National City c/o Risk Manager 1243 National City Boulevard National City, CA 91950-4397 (2) Insurance shall be written with only insurers authorized to conduct business in California that hold a current policy holder's alphabetic and financial size category rating of not less than A:VII according to the current Best's Key Rating Guide, or a company equal financial stability that is approved by the City's Risk Manager. In the event coverage is provided by non - admitted "surplus lines" carriers, they must be included on the most recent California List of Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements. (3) The Developer (including the Developer's Consultants) shall not enter upon the Property until certificate(s) or other sufficient proof that these insurance provisions have been complied with, are filed with and approved by the City's Risk Manager. (4) The aforesaid policies shall constitute primary insurance as to the City, its officers, officials, employees, and volunteers, so that any other policies held by the City shall not contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior written notice to the City's Risk Manager, at the address listed in subsection (1) above, of cancellation or material change. (5) If required insurance coverage is provided on a "claims made" rather than "occurrence" form, the Developer shall maintain such insurance coverage for three years after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date must be on or before the date of this Agreement. (6) All deductibles and self -insured retentions in excess of $10,000 must be disclosed to and approved by the City. (7) If the Developer maintains broader coverage or higher limits (or both) than the minimum limits shown in subsection (a) above, the City requires and shall be entitled to the broader coverage or higher limits (or both) maintained by the Developer. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage in subsection (a) shall be available to the City. (c) The Developer shall indemnify and defend the City, its officers, officials, agents, employees and volunteers and the Property from and against, and shall hold the City, its officers, officials, agents, employees and volunteers and the Property harmless from, any actions, losses, costs, damages, claims, suits, demands, proceedings and/or liabilities, including but not limited to, 4 Attachment No. 1 mechanics' and materialmen's liens and reasonable attorneys' fees, and defense costs, of any kind or nature, including worker's compensation claims, of or by anyone whomsoever, resulting from or arising out of the actions of Developer and/or its agents, representatives, consultants and contractors upon the Property; provided, however, that this indemnification and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of the City, its agents, officers, employees or volunteers. City will cooperate reasonably in the defense of any action, and Developer shall employ competent counsel, reasonably acceptable to the City Attorney. The indemnity, defense and hold harmless obligations contained herein shall survive the termination of this Agreement for any alleged or actual omission, act, or negligence under this Agreement that occurred during the term of this Agreement. (d) The Developer shall repair any damage caused to the Property by the Developer or its agents, representatives, consultants and contractors. The Developer shall not permit any mechanic's, materialman's, contractor's, subcontractor's or other lien arising from any work done by the Developer or its agents, representatives, consultants and contractors pursuant to this Agreement to stand against the Property. If any such lien shall be filed against the Property, the Developer shall cause the same to be discharged or bonded within ten (10) days after actual notice of such filing, by payment, deposit, bond or otherwise. The Developer's obligations under this Section 10 shall survive the termination or expiration of this Agreement. 11. Address for Notices. Any notices pursuant to this Agreement shall be sent to the following addresses: To CDC -HA: Copy to: To Developer: Community Development Commission - Housing Authority of the City of National City 1243 National City Blvd. National City, California 91950 Attn: Executive Director Christensen & Spath LLP 550 West C Street, Suite 1660 San Diego, CA 92101 Attn. Walter F. Spath, Esq. Larry Gough Manager Park Villas Pointe, LLC 1800 Stevens Avenue Louisville, Kentucky 40205 12. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties, integrates all of the terms and conditions mentioned herein or incidental hereto, and supersedes all negotiations or previous agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof. 5 Attachment No. 1 13. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the CDC -HA and Developer. 14. Future Agreements to Supersede this Agreement. This Agreement will be superseded, if and when the Developer and CDC -HA approve and execute all mutually acceptable agreements reasonably necessary for the development of the Project. 15. Assignment Prohibited. In no event shall Developer assign or transfer any portion of Developer's rights or obligations under this Agreement without the prior express written consent of the CDC -HA, which consent may be withheld in the CDC-HA's sole and absolute discretion. 16. Time of Essence. Time is of the essence of every portion of this Agreement in which time is a material part. 17. Signature Authority. All individuals signing this Agreement for a party which is a corporation, limited liability company, partnership or other legal entity, or signing under a power of attorney, or as a trustee, guardian, conservator, or in any other legal capacity, covenant to the CDC -HA that they have the necessary capacity and authority to act for, sign and bind the respective entity or principal on whose behalf they are signing. 18. No -Shop. CDC -HA agrees that during the Negotiating Period it will not market, sell, convey, option or, otherwise, dispose of or transfer title to or its interest in any part of the Property or to engage in any related disposition, development or discussions about the Property with any other third party or public or private sector entities, unless, first, obtaining the prior approval of the Developer. 6 Attachment No. 1 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written. CDC -HA: Community Development Commission -Housing Authority of the City of National City By: Leslie Deese, Executive Director APPROVED AS TO FORM: Christensen & Spath LLP By: Walter F. Spath III Special Counsel to the CDC -HA [SIGNATURES CONTINUED ON FOLLOWING PAGE] 7 Attachment No. 1 DEVELOPER; Park Villas Pointe, L E3y: Print Na Its: Manager 8 Attachment No. 1 EXHIBIT A PROPERTY LEGAL DESCRIPTION Real property in the City of National City, County of San Diego, State of California, described as follows: PARCEL 1: (APN: PORTION 551-470-43) THAT PORTION OF LOT 69 OF THE EX -MISSION LANDS OF SAN DIEGO (COMMONLY KNOWN AS HORTON'S PURCHASE), IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 283, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 9, 1878, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE EASTERLY LINE OF THE PUEBLO OF SAN DIEGO THAT IS 59.50 RODS SOUTH AND 73.80 RODS WEST OF THE NORTHEAST CORNER OF SAID LOT 69; THENCE NORTH 89°40'00" EAST 379.60 FEET TO THE SOUTHEAST CORNER OF LAND DESCRIBED IN DEED FROM CHARLES O. POWERS TO E.F. MCCORMICK RECORDED MAY 2, 1922 IN BOOK 876, PAGE 465 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY; THENCE ALONG THE EAST LINE OF MCCORMICK LAND, NORTH 15°33'00" WEST, 289.00 FEET TO THE MOST NORTHERLY CORNER THEREOF; THENCE ALONG THE NORTH LINE OF SAID LAND, SOUTH 73°27'00" WEST, 76.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE AT RIGHT ANGLES, NORTH 16°33'00" WEST, 48.00 FEET; THENCE SOUTH 73°27'00" WEST, PARALLEL WITH THE NORTH LINE OF SAID MCCORMICK LAND, 295.00 FEET, MORE OR LESS, TO THE EAST LINE OF PUEBLO LANDS OF SAN DIEGO; THENCE ALONG SAID PUEBLO LANDS LINE SOUTH 16°57'00" EAST, 48.00 FEET, TO THE NORTH LINE OF SAID MCCORMICK LAND; THENCE ALONG SAID NORTH LINE NORTH 73°27'00" EAST, 295.00 FEET TO THE TRUE POINT OF BEGINNING. PARCEL 2: (APN: PORTION 551-470-43) THE NORTHWESTERLY 12 FEET OF THE SOUTHWESTERLY 295 FEET OF ALL THAT PORTION OF LOT 69 OF A PORTION OF THE EX -MISSION LANDS OF SAN DIEGO (COMMONLY KNOWN AS HORTON'S PURCHASE), IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 283, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 9, 1878, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WESTERLY LINE OF SAID LOT 69, SOUTH 981.75 FEET AND WEST 1,217.70 FEET FROM THE NORTHEAST CORNER OF SAID LOT; THENCE NORTH 89°40'00" EAST, 379.60 FEET; THENCE NORTH 15°33'00" WEST, 289.00 FEET; THENCE SOUTH 73°27'00" WEST, 371.00 FEET TO A POINT IN SAID WESTERLY LINE; THENCE SOUTH 16°57'00" EAST, ALONG SAID WESTERLY LINE, 182.20 FEET TO THE POINT OF BEGINNING. 9 Attachment No. 1 PARCEL 3: (APN: 551-470-15, 551-470-17, 551-470-18, 551-470-19 AND 551-470-48) THAT PORTION OF LOT 69 OF A PORTION OF THE EX -MISSION LANDS OF SAN DIEGO (COMMONLY KNOWN AS HORTON'S PURCHASE), IN THE CITY OF NATIONAL CITY, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 283, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, MARCH 9, 1878, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT IN THE EASTERLY LINE OF THE PUEBLO OF SAN DIEGO THAT IS 59.50 RODS SOUTH AND 73.80 RODS WEST OF THE NORTHEAST CORNER OF SAID LOT 69; THENCE NORTH 89°40' EAST 379.60 FEET TO THE SOUTHEAST CORNER OF LAND DESCRIBED IN DEED FROM CHARLES O. POWERS TO E.F. MCCORMICK RECORDED MAY 2, 1922 IN BOOK 876, PAGE 465 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY; THENCE ALONG THE EAST LINE OF SAID MCCORMICK LAND, NORTH 15°33' WEST, 289.0 FEET TO THE MOST NORTHERLY CORNER THEREOF; THENCE ALONG THE NORTH LINE OF SAID LAND, SOUTH 73°27' WEST, 76.00 FEET; THENCE AT RIGHT ANGLES, NORTH 16°33' WEST 48.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING NORTH 16°33' WEST TO THE NORTH LINE OF LAND DESCRIBED IN DEED FROM JAMES W, POWERS ET UX TO CHARLES O. POWERS RECORDED NOVEMBER 5, 1921 IN BOOK 855, PAGE 428 OF DEEDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY; THENCE WEST ALONG THE NORTH LINE OF LAND SO DESCRIBED IN SAID DEED TO THE NORTHWEST CORNER THEREOF, BEING A POINT IN THE EAST LINE OF THE PUEBLO OF SAN DIEGO; THENCE ALONG SAID PUEBLO LINE SOUTH 16°57' EAST TO INTERSECTION WITH A LINE BEARING SOUTH 73°27. WEST FROM THE TRUE POINT OF BEGINNING; THENCE NORTH 73°27' EAST 295.00 FEET TO THE TRUE POINT OF BEGINNING. 10 Attachment No. 1 EXHIBIT B Letter (and enclosures) from Larry Gough, Managing Member of Park Villa Pointe, LLC to Alfredo Ybarra, Director of Housing and Economic Development of the City of National City, dated as of May 1, 2017. (see attached) 11 Attachment No. 1 Via Overnight Courier and Electronic Mail May I. 2017 Alfredo Ybarra Community Development Manager Housing, Grants & Asset Management Department City of National City MLK Jr. Community Center 140 E. 12th Street, Suite B National City, CA 91950 Subject: North Highland Avenue and Eta Street, National City, California Development Dear Alfredo, As a follow-up to our February 15th meeting and on behalf of Park Villas Pointe, LLC and Urban -West Development (collectively, "Developer"), I am writing to formally request approval to (i) restart the development process of the site located at North Highland Avenue and Eta Street, National City, California (formerly, the Purple Cow Dairy site) ("Development Site") and (ii) to initiate the process for City of National City ("City") approval of an Exclusive Negotiating Agreement necessary to accomplish such development efforts. Development of the Development Site would be accomplished concurrently with development of the adjacent one -acre, vacant parcel of land, which is part of the Park Villas Apartments property. Park Villas Pointe, LLC, owners of the Park Villas Apartments and developers -managers of affordable housing developments in many areas of the country, proposes to master plan and develop both sites, in partnership with Urban -West Development, a local development and consulting firm, the principals of which have been involved in affordable housing and commercial development throughout San Diego County. As you know, the members of Urban -West development were involved with the previous effort to develop the Development Site when La Maestra Community Health Centers decided last February to withdraw from the project. The development of the two aforementioned, adjacent sites will be planned and designed as a coordinated development. The preliminary development concept is similar to the previous Attachment No. 1 plan — that is, affordable housing with medical and related services. The Development Site will feature a Senior PACE Center ("PACE Center"), operated by San Ysidro Health Center, which operates 11 health clinics. The new PACE Center will include 20,000 square feet of space for a coordinated health and social services program for the senior population. The San Ysidro Health Center's PACE Program will provide social services, personal care, physical -occupational and speech therapy, meals and snacks, and group and individual recreational activities. The PACE Center will also provide on -site adult primary medical care for clients including doctor exams, medical specialty care services, nursing care, behavioral health services including psychiatry, dental services, prescription medications, emergency services, laboratory/x-ray services, physical therapy, and nutritional counseling, as well as off -site home care, hospital care and nursing home care. The development will include a 4,000-square foot child care center, to be operated by the current child care provider, Episcopal Community Services ("ECS"). ECS currently operates a "Head Start" program at Park Villas Apartments, using two of the apartments. The new facility will allow ECS to more than double the space and the number of children served. The proposed development will also include approximately 24 one- and two -bedroom apartments for seniors and families with incomes approximately 60% to 80% of area median income, and 70 apartments at 100% of area median income. Parking for tenants, staff and visitors will primarily be in one level underground parking garages, with additional short term drop-off parking for clients of the PACE Center on the ground level. The proposed development will be financed in part by New Markets Tax Credits ("NMTC") Program. The New Markets Tax Credit Program was established as part of the Community Renewal Tax Relief Act of 2000. The goal of the program is to spur revitalization efforts of certain communities across the United States. The NMTC Program provides tax credit incentives to investors for equity investments in certified Community Development Entities ("CDE"), which invest in low-income communities. Civic San Diego's CDE is interested in allocating the tax credits for this development, in conjunction with another CDE, likely a major bank. Total cost for the project is approximately $37,000,000. There are major banks interested in buying the $37,000,000 of NMTC, as well as providing the related leverage loan of approximately $23,700,000. It is anticipated that the NMTC Program will generate approximately $8,750,000 in loan/equity funds for the project. I have included drafts of various site plan aspects, which continue to evolve as we refine the project development. Attachment No. 1 We look forward to restarting this development effort and bringing needed affordable housing and child care, along with senior medical and support services, to this northern portion of National City. Sincerely, • 2Z. ) 4,tiel Larry Gough Manager Park Villas Pointe, TLL C enclosures cc: Carlos Aguirre, Program Manager, caguirre@nationalcityca.gov Richard Juarez, Urban -West Development 3 Atbashmwat-No.a Z 0 N IV W CC MXC-1 ZONE RM-2 ZONE ARCHITECTURAL SITE PLAN PODIUM LEVEL PLAN / / / ' / •..-"/��/��T/-� art/�� \ • o:. NORM BCAI. V . 20 0 10 20 S0t2£ f _ 20' RODRIGUEZ ASSOCIATES E ARCHITECTS a PLANNERS, INC i; ..N.l.a.aS6�us Ia..al •......w ■ ■ �� 7 SITE DATA PACE CENTER SITE NET SITE AREA 60AA• 8F. / 147 ACRES PROPERTY ZONE MXC RESIDENTIAL UNIT MIS ONE 0R UNITS 662 SF. TWO BR UNITS 627 SF. = 2R 67 1 H •81 TOTAL NUMBER OF UNITS • 42 KRIS RESIDENTIAL COMMUNITY SPACES OFFICES • COMMUNITY CENTER • 2.060 SF. COMMERCIAL SPACES PACE CENTER • 20000 SF. PARKING REQUIRED. ONE & TWO BR UNITS 42 X Ul F. 42 SPACES COMMERCIAL (20.000 SF) 6 PER 000 • 100 SPACES TOTAL SPACES REQUIRED • H2 SPACES PARKING PROVIDED. GARAGE RESIDENTIAL PARKING GARAGE COMMFRCMI PARKING OPEN COMMERCIAL PARKING • 42 • 88 TOTAL SPACES PROVIDED • 141 [PARK VILLA SITE NET SITE AREA 46,011 SF. / 106 ACRES PROPERTY ZONE MXC RESIDENTIAL UNIT MIS ONE BR UNITS TWO BR UNITS NG SF 1327 SF = 33 73 1 • 12 271 TOTAL NUMBER OF UNITS = 46 001 RESIDENTIAL COMMUNITY SPACES COMMON INTERIOR AREA G00 SF. • 11000 sF. COMMERCIAL SPACES TWO STORY BUILDING PARKING REQUIRED ONE • TWO BR UNITS 46 X 10 u SPACES COMMERCIAL 01000 SF) 3 PER 000 33 SPACES TOTAL SPACES REQUIRED: = 78 SPACES PARKING PROVIDED GARAGE RESIDENTIAL PARKING GARAOE COMMERCIAL PARKING • 38 TOTAL SPACES PROVIDED • SS NORTH HIGHLAND SITE ■ INVESTMENT PROPERTY ADIVSORS 1800 STEVENS LOUISVILLE. KY 10201 ARCHITECTURAL SITE PLAN • • • • • I on11 BAR. SI, 2017 I I SHEET AS1.1 3i It fa !I `c E r RM-2 ZONE 00140 ��00. /_ e ARCHITECTURAL SITE PLAN SUBTERRANEAN GARAGE LEVEL PLAN I , %I\ II NORTH SCALE f • 27 SCNL I• • 2G RODRIGUEZ ASSOCIATES E ARCHITECTS & PLANNERS, INC MIN, ANL fall >AMKIII03.NANa .,, N..A, N.,N„A. • • SITE DATA PACE CENTER SITE NET SITE AREA: SOW SF. / W ACRES WIOPERTY ZONE MXC RESIDENTIAL UNIT MIX ONE BR UNITS TWO BR UNITS 652 SF. 62/ SF. • 24 62 N • IS 43% TOTAL NUMBER OF UNITS = 42 1001 RESIDENTIAL COMMUNITY SPACES OFFICES A COMMUNITY CENTER 2000 SF COMMERCIAL SPACES PACE CENTER PARKING REQUIRED. ONES TWO BR UNITS 42 X 10 = 42 SPACES COMMERCIAL (20000 SF) 6 PER IXO • 100 SPACES TOTAL SPACES REQUIRED' • 142 SPACES PARKING PROVIDED: 1ARAOF RESIDENTIAL PARKING GARAGE COMMERCIAL PARKING OPEN COMMERCIAL PARIONG • 42 TOTAL SPACES PROVIDER . N6 PARK VILLA SITE NET SITE AREA PROPERTY ZONE RESIDENTIAL UNIT ONE BR UNITS TWO BR UNITS 66011 SF. / 1.06 ACRES MXC 632 SF • 527 BF • 12 27 % TOTAL NUMBER OF UNITS RESIDENTIAL COMMUNITY SPACES COMMON INTERIOR AREA COMMERCIAL SPACES TWO STORY BUILDING PARKING REQUIRED. ONE 2 TWO BR UNITS u X 10 COMMERCIAL (10000 SF) 3 PEA 1000 • !6 10014 11W SF • 8P008F. 43 SPACES 33 SPACES TOTAL SPACES REWIRED = 28 SPACES PARKING PROVIDED: GARAGE RESIDENTIAL PARKING GARAGE COMMERCIAL PARKING = tl = 36 TOTAL SPACES PROVIDER • 83 NORTH HIGHLAND SITE INVESTMENT PROPERTY I800 STEVENS IVSORSKY 40105 ARCHITECTURAL SITE PLAN • • I °" MAR 31, 2017 I Id� I — *Eon SYEEI AS1.0 50 L If 2F !1 PY lp Y3 �A6 IY 6 r. ii YE Is ij PI Is RESOLUTION NO. 2017 — RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE AN EXCLUSIVE NEGOTIATING AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY AND PARK VILLAS POINTE, LLC FOR THE DEVELOPMENT OF A 1.47 ACRE PROPERTY LOCATED BETWEEN ETA STREET AND BUCKY LANE ON NORTH HIGHLAND AVENUE IN NATIONAL CITY WHEREAS, , the Community Development Commission -Housing Authority of the City of National City ("CDC -HA") owns a 1.47 acre parcel of real property (the "Property") located on North Highland Avenue between Eta Street and Bucky Lane in the City of National City, County of San Diego, California, which is sometimes referred to as the "Purple Cow"; and WHEREAS, Park Villas Pointe, LLC, desires to develop a mixed -used project on the Property that includes approximately 94 units of rental housing, medical service center, and a childcare facility; and WHEREAS, the CDC -HA and Park Villas Pointe desire to exclusively negotiate any and all agreements reasonably necessary for the CDC -HA to ground lease the Property to Park Villas Pointe; and WHEREAS, upon the execution and delivery of the Exclusive Negotiating Agreement, the Developer shall pay the CDC -HA $25,000.00, to partially pay the CDC-HA's anticipated costs with respect to the Project; and WHEREAS, if both the CDC -HA and Park Villas Pointe are satisfied with the proposed Project, and enter into a ground lease or other mutually acceptable agreements necessary for the construction at the Property, then Park Villas Pointe shall pay the CDC -HA an additional $25,000.00, to partially pay the CDC-HA's costs with respect to the Project. NOW, THEREFORE, BE IT RESOLVED that the Community Development Commission -Housing Authority of the City of National City hereby authorizes the Executive Director to execute an Exclusive Negotiating Agreement by and between the Community Development Commission -Housing Authority of the City of National City and Park Villas Pointe, LLC, for the development of a 1.47 acre property located between Eta Street and Bucky Lane on North Highland Avenue in National City. The Exclusive Negotiating Agreement is on file in the office of the City Clerk. PASSED and ADOPTED this 20th day of June, 2017. Ron Morrison, Chairman ATTEST: APPROVED AS TO FORM: Leslie Deese, Secretary Angil P. Morris -Jones General Counsel CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950-4397 619-336-4228 Michael R. Dalla, CMC - City Clerk April 25, 2018 Mr. Larry Gough, Manager Park Villas Pointe, LLC 1800 Stevens Avenue Louisville, Kentucky 40205 Dear Mr. Gough, On June 20th, 2017, an Exclusive Negotiating Agreement was entered into between the City of National City and Park Villas Pointe, LLC. We are forwarding a fully executed original Agreement for your records. Sincerely, Michael R. Dalla, CMC City Clerk Enclosures