HomeMy Public PortalAboutA2011-06-29LRA-SP°4 LVry
LYNWOOD REDEVELOPMENT AGENCY
11330 BULLIS ROAD LYNWOOD, CALIFORNIA 90262 -3845 (310) 603 -0220
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Aide Castro, Chair
Jim Morton, Vice Chair
Alfredo Flores, Member
Ramon Rodriguez, Member
Maria T. Santillan, Member
This Agenda contains a brief general description of each item to be considered. Copies of the Staff
reports or other written documentation relating to each item of business referred to on the Agenda are on
file in the Office of the City Clerk and are available for public inspection. Materials related to an item on
this Agenda submitted to the Agency Board after distribution of the Agenda packet are available for public
inspection at the Agency Secretary's office at the above address during normal business hours. Any
person who has a question concerning any of the agenda items may call the City Manager at (310) 603-
0220. ext. 200.
AGENDA
LYNWOOD REDEVELOPMENT AGENCY
JUNE 29, 2011
SPECIAL MEETING
6:00 P.M.
LYNWOOD CITY HALL
11330 BULLIS ROAD
AIDE CASTRO
CHAIR
JIM MORTON
VICE CHAIR
RAMON RODRIGUEZ
MEMBER
ROGER L. HALEY
EXECUTIVE DIRECTOR
RECEWED
JUN 282011
CITY OF LYNWOOD
CITY CLERKS OFFICE
ALFREDOFLORES
MEMBER
MARIA T. SANTILLAN
MEMBER
FRED GALANTE
AGENCY COUNSEL
OPENING CEREMONIES
A. Call Meeting to Order
B. Roll Call (FLORES- RODRIGUEZ- SANTILLAN- MORTON- CASTRO)
C. Certification of Agenda Posting by Secretary
PUBLIC ORAL COMMUNICATIONS
(Regarding Agenda Items Only)
PUBLIC ORAL COMMUNICATIONS
CONSENT CALENDAR
All matters listed under the Consent Calendar will be acted upon by one motion affirming the
action recommended on the agenda. There will be no separate discussion on these items prior
to voting unless members of the Agency or staff request specific items are removed from the
consent calendar for separate action.
CONSIDERATION OF A PROPOSED JOINT VENTURE HOUSING PURCHASE,
REHABILITATION AND SALE PROGRAM
Comments:
Rex Natan (hereinafter "Developer"), desires to invest funds in the City of Lynwood
to Purchase, rehabilitate, and sell single family residential homes with the intent to
assist low -and moderate - income families. The Developer has provided a list of 23
foreclosed homes that he is interested in rehabilitating and putting back on the
market. The Developer's investment for acquisition is approximately $2.8 million
dollars. The Developer would like the homes to be purchased below market rate to
leverage the cost of rehabilitation prior to resale. It is felt that one way to achieve this
goal is to have the Agency acquire the property and use the Developer as the sole
source of funding for acquisitions
Recommendation
Staff recommends that after consideration the Agency adopts the resolution titled, "A
RESOLUTION OF THE CITY OF LYNWOOD REDEVELOPMENT AGENCY
APPROVING THE PURCHASE AND SALE AGREEMENT (PSA) BETWEEN THE
LYNWOOD REDEVELOPMENT AGENCY (AGENCY) AND REX NATAN
(DEVELOPER) FOR THE PURCHSE DEVELOPMENT AND SALE OF
FORECLOSED RESIDENTIAL PROPERTY."
CLOSED SESSION
NONE
ADJOURNMENT
THE NEXT REGULAR MEETING WILL BE HELD ON JULY 5, 2011 AT 5:00 P.M. AT THE
COUNCIL CHAMBERS OF CITY HALL, 11330 BULLIS ROAD, LYNWOOD, CALIFORNIA.
AGENDA STAFF REPORT
DATE: June 29, 2011
TO: Honorable Chair and Members of the Agenc Board
APPROVED BY: Roger L. Haley, Executive Direc o
PREPARED BY: Sarah Magana Withers, Director of Rede�velqp ment
Bruno Naulls, Redevelopment Associat�))
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SUBJECT: Consideration of a Proposed Joint Venture Housing
Purchase, Rehabilitation and Sale Program
Recommendation:
Staff recommends that after consideration the Agency adopts the resolution
titled, "A RESOLUTION OF THE CITY OF LYNWOOD REDEVELOPMENT
AGENCY APPROVING THE HOUSING REHABILITATION AGREEMENT (HRA)
BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY (AGENCY) AND
REX NATAN (DEVELOPER) FOR THE ACQUISITION, DEVELOPMENT AND
SALE OF FORECLOSED RESIDENTIAL PROPERTIES."
Background:
1. Rex Natan (hereinafter "Developer"), Desires to invest funds in the City of
Lynwood to purchase, rehabilitate, and sell single family residential homes
with the intent to assist families prepare for homeownership.
2. The Developer has provided a list of 23 foreclosed homes that he is
interested in rehabilitating and putting back on the market. The
Developer's investment for acquisition is approximately $2.8 million
dollars.
3. The Developer would like the homes to be purchased at realistic pricing
that recognizes the economic recession being experienced, which has
produced a glut of foreclosed homes. With such savings, the Developer
has represented that it can achieve the goal of renovating these home�. to
make them ready for occupancy, with the Developer acting as the sole
source of funding for all aspects of acquisition, renovation and sale.
AGENDp
ITEM
4. The foreclosed homes are bank-owned and are vacant, which over time is
a contributing factor to blight in our community due to neglect and
vandalism.
5. The Developer has agreed to the terms and conditions set forth by the
Agency in the proposed HRA and the project will be subject to all
applicable provisions of the Lynwood Municipal Code.
Discussion $ Analysis:
The Agency shall initially submit offers for each property and use Developer's
funds as down payment to put the properties in escrow. Upon closing escrow,
Agency would immediately transfer and record each property into the
Developer's name to avoid additional transfer and recording requirements and
Developer shall be required to pay the balance owed for the purchase of each
property.
Developer believes that acquiring the properties separately would involve a
significantly more protracted process, more costly process and thus the cost and
valuation would be difficult to justify added investment to refurbish the homes and
make them ready for occupancy. The estimated $2.5 million cost to acquire the
homes in an as-is condition, through a large-scale, quick negotiated acquisition
process, and in light of the existing economic recession is believed by the
Developer to yield savings, which will enable the Developer to rehabilitate the
homes and sell at market rate. No financial assistance is requested of the
Agency. The Developer intends to fully fund the cost of purchase and
rehabilitation of the homes.
In furtherance of the objectives of the California Community Redevelopment Law,
Agency desires to undertake a program for the redevelopment of certain areas
within the City, and in connection therewith is undertaking and carrying out
activities for housing redevelopment potentially in and outside Lynwood
Redevelopment Project Area "A" ("Project Area") pursuant to and in furtherance
of the Redevelopment Plan for the Project Area.
Developer desires to rehabilitate the Sites all in accordance with applicable City
regulations and standards ("ProjecY').
Agency and Developer desire to enter into the HRA to accomplish the sale of
Agency acquired parcels to Developer and rehabilitation of the units pursuant to
the HRA. The fulfillment generally of the terms of the HRA is believed to be in
the vital and best interests of the City of Lynwood and the health, safety, morals
and welfare of its residents, and in accord with the public purposes and
provisions of applicable federal, state and local housing laws and requirements.
The development of these sites will contribute the elimination of blight, and
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generate property tax revenue, which is consistent with the intent of the
Redevelopment Plan of the City of Lynwood.
Fiscal Impact:
The sale of the rehabilitated properties will have a positive impact on the General
Fund by generating property tax revenue from homes currently held in
foreclosure by banks.
Coordinated With:
City Manager's Office
Finance and Administration
City Attorney's Office
Attachments:
Resolution
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RESOLUTION NO.
A RESOLUTION OF THE CITY OF LYNWOOD REDEVELOPMENT AGENCY
APPROVING THE HOUSING REHABILITATION AGREEMENT (HRA)
BETWEEN THE LYNWOOD REDEVELOPMENT AGENCY (AGENCY) AND
REX NATAN (DEVELOPER) FOR THE PURCHSE, DEVELOPMENT AND
SALE OF FORECLOSED RESIDENTIAL PROPERTY
WHEREAS, the Lynwood Redevelopment Agency ("Agency") is a public
body, corporate and politic, organized and existing under California Community
Redevelopment Law (Health 8� Safety Code § 33000, et seq.) ("CRL"); and
WHEREAS, in accordance with the CRL, the City Council of the City of
Lynwood adopted the Redevelopment Plan for the Redevelopment Project Area
"A" in the City of Lynwood on July 10, 1973, as established by Ordinance No.
945 of the City Council, and as amended from time to time; and
WHEREAS, Rex Natan (hereinafter "Developer"), Desires to invest funds
into the City of Lynwood to purchase, rehabilitate, and sale single family
residential homes with the intent to assist low and moderate income families; and
WHEREAS, the Developer has provided a list of 23 foreclosed homes that
he is interested in rehabilitating and putting back on the market. The Developer's
investment for acquisition is approximately $2.8 million dollars; and
WHEREAS, the Developer would like the homes to be purchased below
market rate to leverage the cost of rehabilitation prior to resale. It is felt that one
way to achieve this goal is to have the Agency acquire the property and use the
Developer as the sole source of funding for acquisitions; and
WHEREAS, the foreclosed homes are bank owned and are vacant, which
over time is a contributing factor to blight in our community due to neglect and
vandalism; and
WHEREAS, the Developer has agreed to the terms and conditions set
forth by the Agency and the project will be subject to all applicable provisions of
the Lynwood Municipal Code; and
WHEREAS, In furtherance of the objectives of the California Community
Redevelopment Law, Agency desires to undertake a program for the
redevelopment of certain areas within the City, and in connection therewith is
undertaking and carrying out activities for housing redevelopment potentially in
and outside Lynwood Redevelopment Project Area "A" ("Project Area") pursuant
to and in furtherance of the Redevelopment Plan for the Project Area.
NOW, THEREFORE, THE LYNWOOD REDEVELOPMENT AGENCY
DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS:
SECTION 1. The Agency Board of Directors hereby approves the
Housing Rehabilitation Agreement and the instruments referenced therein.
SECTION 2. The Project is consistent with the Agency's adopted
Implementation Plan for Redevelopment Project Area "A".
SECTION 3. The Project will assist in the elimination of blight, and
generate property tax revenue.
SECTION 4. The Agency further authorizes the acquisition of foreclosed
residential homes for rehabilitation by Agency with funds provided exclusively by
Developer or his authorized investors.
SECTION 5. The Agency sole obligation is to facilitate the purchase of
said foreclosed homes and shall transfer title to Developer upon close of escrow
on each property as they become available.
SECTION 7. The Agency Chair and or Executive Director are authorized
and directed to take such actions and execute such documents as may be
necessary to implement and effect this Resolution and the Housing Rehabilitation
Agreement on behalf of the Agency.
SECTION 8. The resolution shall be effective upon adoption.
PASSED, APPROVED and ADOPTED this 29 day of June, 2011.
Aide Castro
Chair
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ATTEST:
Maria Quinonez Roger L. Haley
Secretary Executive Director
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Fred Galante Sarah Magana Withers
Agency Counsel Director of Redevelopment
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