HomeMy WebLinkAboutItem No. 08 Purchase Real Prop Afford Housing APN 374-062-004, 016, 024
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REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Barbara Leibold, City Attorney
Date:September 12, 2023
Subject:Purchase of Real Property for Affordable Housing Purposes (APNs 374-062-
004, 374-062-016, 374-062-024)
Recommendation
Approve the purchase of approximately 1.97 acres of real property located at Flint Street and
North Spring Street (APNs 374-062-004, 374-062-016, 374-062-024) for $685,000 and authorize
the City Manager or designee to execute an assignment of the Purchase Agreement and such
other ancillary documents as may be necessary to complete the purchase, in such form as
approved by the City Attorney.
Background
The subject property is located in the same block immediately adjacent to four City parcels located
at the corner of Pottery and Spring. The City properties were acquired with Low and Moderate
Income Housing Asset Funds (LMIHAF) for purposes of promoting the development of affordable
housing in the City’s downtown area. Pursuant to the California Surplus Lands Act, the City
properties were declared surplus and a Notice of Availability was published inviting proposals
from interested developers. C&C Development Co., LLC (“Developer”) submitted a proposal and
the City and the Developer have engaged in negotiations for an affordable housing project at this
location.
In an effort to secure a more optimum site for the proposed project and enhance the affordable
housing development opportunity, the Developer entered into escrow with the owner of the
adjacent property. As funding sources for the proposed project are identified, land use
entitlements and environmental clearance are obtained, and negotiations of an affordable housing
agreement are completed for City Council consideration, the Developer has requested the City
accept an assignment of the Purchase Agreement and close escrow to ensure the combined
project site is assembled and under common ownership.
(Subject Matter 1- 4 words only)
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Discussion
C&C Development Co., LLC is an experienced affordable housing developer with projects
throughout southern California, including the 81-unit, two- and three-story workforce family
apartment community known as the Mission Trail Apartments located at 32585 Mission Trail in
Lake Elsinore. In light of the Developer’s commitment to constructing and operating quality
projects in Lake Elsinore combined with its experience in applying for and obtaining financing
necessary to leverage the City’s LMIHAF resources, staff anticipates that a proposed agreement
for the disposition and development of the combined site will be presented to the City Council for
consideration within the next nine months. In the event that necessary financing, land use
entitlements, and other approvals are not obtained and an agreement is not approved, the City
will control the site and can explore other development opportunities consistent with its affordable
housing objectives.
Environmental Consideration
Approval of the purchase of property does not constitute a project under California Environmental
Quality Act (CEQA) and Section 15004(b) of the CEQA Guidelines in that it does not vest any
development rights or result in the physical changes in the environment. The Developer will be
required to obtain all necessary land use entitlements and comply with CEQA and does not
commit the City to any definite course of action or foreclose alternatives or mitigation measures
that would ordinarily be part of CEQA.
Fiscal Impact
The funding for acquisition in the amount of $685,000, plus closing costs, is available and will be
paid from the City’s Low and Moderate Income Housing Asset Fund.
Attachments
Attachment 1 - Vicinity Map
Attachment 2 - Purchase Agreement
Vicinity Map
Properties to be Acquired
APNs 374-062-004, -016, -024
374‐062‐020
‐015 ‐005‐006
N Spring St