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HomeMy WebLinkAboutItem No. 07 Supplemental InformationBY US PRIORITY MAIL August 4, 2017 City of Lake Elsinore Attn: City Clerk 130 S. Main St Lake Elsinore, CA 92530 RE: Objection to Issuance of Housing Revenue Bonds for Cottages at Mission Trail Apartments in Lake Elsinore, CA City Clerk: I represent JU, LP, the owner of the 15 -acre parcel (APN 370-020-003) behind and adjacent to the properties upon which the Cottages at Mission Trail project is proposed. As I have previously communicated to the project proponent, Civic Partners, the Cottages project as designed would eliminate access to my property and leave it landlocked. I previously communicated this concern to City staff and the City Attorney on March 29, 2017. The only access from a public street to our 15 -acre property is through and over the property currently owned by Founder Liberty (APN 365-030-041), the property on which the Cottages project is proposed. This access road has decades of uninterrupted use. In fact, it is shown on some maps as "Stoneman Street" connecting my property to Mission Trail Road. See Attachment A, showing rn property, the Cottages development and my access road. This access has been used openly, continuously, and notoriously for sufficient time to vest access rights under California law. Moreover, the Cottages project could easily be designed in a way that preserves this access. As early as January 2017, 1 asked the developer of this project to re -design the Cottages project to accommodate continued access to my parcel. I have also asked the developer to propose other potential solutions or avenues of access. Unfortunately, the developer has not responded; on the contrary, it has proceeded full steam ahead with the current design, which creates a virtual moat between the properties and leaves our property landlocked. Under Section 147(f) of the Internal Revenue Code of 1986, tax-free private activity bonds cannot be issued unless elected government officials (here, the City Council) exercises their discretion to approve that issuance. Under Section 9 of the Joint Exercise of Power Agreement dated as of June 1, 1988 between the California Statewide Communities Development Authority ("CSCDA") and the City of Lake Elsinore, the City Council cannot approve the issuance of the bonds unless it also approves the underlying project within a certain period of time. 2618 San Miguel Dr, 9503 Newport Beach, CA 92660 951) 505-1502 leichnitz lumosconununities.com These laws require the City Council, in considering whether to endorse the issuance of the bonds, to consider carefully the wisdom and feasibility, financial and otherwise, of the proposed project. It is my view that JU has a legal right of access which this project would block, although adjudication of this issue is ultimately a question for the courts. If I am correct, however, the project cannot be built as presently designed. I ask that the City Council defer approval of the issuance of the Housing Revenue Bonds for Cottages at Mission Trail until the project can be re -designed to allow continued access from Mission Trail to my property. With due respect, It seems unwise to endorse the issuance of municipal bonds for a project that does not respect neighboring property rights and might not be legally feasible. If the City Council elects to endorse the bond issuance despite the prescriptive easement claims against the Cottages property described above, please ensure that disclosure counsel for the CSCDA multifamily housing bonds is aware that if the access claims are decided in our favor, construction of the project as designed could be enjoined. To be clear, I have no objection to the provision of affordable housing to the Lake Elsinore Community as envisioned by this Project, and am reluctant to interfere with what I am sure would be a quality project by a quality developer. However, given the lack of responsiveness to my concerns for the past six months, I see no alternative but to take this preliminary step to preserve access to our property. Very truly ours Leonard Leichnitz Managing Member Lumos Communities LLC cc: Grant Taylor, Lake Elsinore Director of Community Development Barbara Leibold, Lake Elsinore City Attorney James Hamill, Managing Director, Cal. Statewide Communities Development Authority Attachment A - map showing our property, the property on which the Cottages property is proposed and the access road, with Mission Trail Drive on the far right. The white lots on the upper left are Summerly. 2616 San Miguel llr, 9503 Newport Beach, CA 92660 (951) 505-1502 leichnitz ,luriiosconununities.com � � © \\\... 1. M