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HomeMy WebLinkAboutReso RDA 4-1987 RESOLUTION NO. 4-87 REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA A RESOLUTION ACCEPTING THE ASSIGNMENT OF AN OPTION TO PURCHASE PROPERTY FROM THE SOUTH SAN FRANCISCO UNIFIED SCHOOL DISTRICT AND AUTHORIZING AN AMENDMENT OF THE RELATED PURCHASE AGREEMENT WHEREAS, BRIDGE Housing Corporation has acquired an option to purchase and has negotiated and entered into a Purchase Agreement with the South San Francisco Unified School District for property at 616 Baden Avenue; and WHEREAS, in order to facilitate the development of senior rental housing on the property pursuant to Use Permit No. UP-86-762, it is preferable for the Redevelopment Agency of the City of South San Francisco to acquire the property - and then lease it out for development; and WHEREAS, the Agency has the funds to acquire the property and is interested in so doing, and BRIDGE is willing and interested in transferring its option to purchase; NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of South San Francisco that it accepts the assignment from BRIDGE of an option to purchase property from the South San Francisco Unified School District, and authorizes the Chairman of the Agency to execute the Assignment Agreement, attached as Exhibit "1", and enter into an amendment of the Purchase Agreement which will recite such assignment and it authorizes the Executive Director to execute any related documents, if necessary, to reflect the change in purchasers. BE IT FURTHER RESOLVED that the Agency intends to subsequently lease the property to South San Francisco Magnolia Plaza Associates as indicated in the summary of the proposed land lease, attached as Exhibit "2". I hereby certify that the foregoing Resolution was regularly introduced and adopted by the Redevelopment Agency of the City of South San Francisco at a Regular meeting held on the 8th day of April , 198 7 , by the following vote: AYES: Chairman Mark N. Addiego; Vice Chairman Jack Drago; Member Richard A. Haffey; Member Gus Nicolopulos; Member Roberta Cerri Teglia NOES: NONE ABSENT: NONE ~X~ATTEST: City of South San Francisco ~'~xe c~t i v~/D i~r ec~r .'~~ Redevelopment Agency of the City of South San Francisco -2- ASSIGNMENT AGREEMENT This Agreement is made as of April/~ 1987, by and between BRIDGE Housing Corporation ("BRIDGE") and the Redevelopment Agency of the City of South San Francisco ("Agency").. RECITALS: A. BRIDGE has acquired an option to purchase from the South San Francisco Unified School District ("District") the property described in the attached Exhibit A to this Agreement, pursuant to a Purchase Agreement between BRIDGE and the District dated January 17, 1986. B. In order to facilitate the development of senior rental housing on the property, the Agency will acquire the property and then lease the property to South San Francisco Magnolia Plaza Associates, a California limited partnership ("Magnolia"). C. Magnolia intends to develop rental housing for senior citizens on the site pursuant to the City of South San Francisco Use ,Permit Number UP-86-726. -1- ASSIGNMENT 1. BRIDGE hereby assigns all its right, title and interest in and to the Purchase Agreement to the Agency, and the Agency accepts the assignment and agrees to be bound by the terms of the Option Agreement. 2. Item 9. G. of the Purchase Agreement is amended to provide that notice to the Agency shall be sent to: South San Francisco Redevelopment Agency 400 Grand Avenue South San Francisco, CA 94080 Attn: Mark Lewis __ BRIDG~HOUS~GC~I~O~ ACCEPTED AND AGREED TO: THE REDEVELOPMENT AGENCY SOUTH SAN FRANCISCO UNIFIED OF THE CITY OF SOUTH SCHOOL DISTRICT (Printe~ame) (Printed Name) (Title) ' (Title) Approved as to Form: Agency C~nsel -2- PROPERT~ DESCRIPTION (:ITT OF SOUTR Si~ Flt~¢I$¢O IOTS 1 l'HltOUGlt 11 ~ ~S lA ~OU~ i0,' T~R ~ ~T PORTION 0F ~ AS FOL~WS: ~OVE ~ION~ ~; I~G ~Cl ~Cl i~ II~ ~aS ~ ~' 33 ~G~S SO~ 7~' 27~ ~ 320 ~ 33~ ~S~ 20 ~ ~O ~ ~ OF ~E~G, ~[~G ~ ~T 3~0 ~ OF ~ ~ DE$~ ~ ~cO~ J~T 9, 1957, B~E 3156, ?A~ 252, O~lC~ ~S. ~SESSOR'S ?~C~ ~S. 0~2-23~0 EXHIBIT 2 SUMMARY OF PROPOSED LEASE OF LAND FROM THE REDEVELOPMENT AGENCY OF THE CITY OF SOUTH SAN FRANCISCO TO A LIMITED PARTNERSHIP (Prepared Pursuant to Health and Safety Code Section 33433) I. LEASE OF LAND BY REDEVELOPMENT AGENCY TO SOUTH SAN FRANCISCO MAGNOLIA PLAZA ASSOCIATES, A CALIFORNIA LIMITED PARTNERSHIP A. COST OF THE AGREEMENT TO THE AGENCY Description of Budget Amount Budget Amount Land Acquisition $900,000 Clearance Cost -0- Relocation Cost -0- Interest Cost 195,000 Cost of Improvements -0- TOTAL $1,095,000 The land that is being leased in this transaction is located at 616 Baden Avenue ("Land"). The Land will be acquired by the Agency from the South San Francisco Unified School District ("School District") shortly before the lease transaction takes place. The Agency will execute a promissory note in the principal amount of $945,000 with interest at a rate of eight percent (8%) compounded annually through December 31, 1987, and then adjusted every six months to a rate of one-half percent (1/2%) above the prime rate at Wells Fargo Bank, compounded annually. The Agency will pay a total of approximately $1,095,000 over time for the Land pursuant to the purchase agreement with the School District. B. ESTIMATED VALUE OF INTEREST TO BE LEASED $900,000 The value of the Land was derived by arm's length negotiations between BRIDGE Housing Corporation and the School District for the purchase of the Land. BRIDGE Housing _- Corporation has assigned its option to purchase the Land to the Agency. The arm's length bargaining resulted in a price which represents the fair market value for the Land. This -1- amount is less than the total acquisition costs because it does not account for the interest costs involved in the installment payments on the purchase of the Land. C. SUM OF LEASE PAYMENTS The Agency transaction summarized in this Report is the lease of the Land to South San Francisco Magnolia Plaza Associates, a California limited partnership ("Magnolia"). Magnolia will make the following lease payments to the Agency: First 6 years @ $1/year = $ 6 Next 4 years @ $36,500/year = $ 146,000 Next 65 years @ $51,800/year = $3,367,000 $3,513,006 This amount is based on the acquisition price paid by the Agency, adjusted for the time value of money over the 75-year term of the lease, using a rate of 3-5%. Thus the value received by the Agency in leasing the Land to Magnolia is the same as the cost to the Agency in acquiring the Land from the School District. #002/A14420 03/31/87 -2- · lIVE. .t Z5 3~ J! ~,'~Z. 55 ~u 34 3"3 J~ 7T ~ 57 4~ D DEN titXI o~ interest In and to ~he zeal pro~rty sh~ within the ~dary of chis Parcel ~p and tha[ we consenC ~o the County of San pre.ration and recordation of said Parcel Map. ~ this -- We hereby dedicate an ease~en~ for [u~ around, third lane as 8h~ hereon~ ~or StrUt ~d ~Hlty ~r~S. S[a[e, the ~e~tive Direc[OZ AS O~R ~uCh ~a ~anciaeo, Redevelo~en~ Agenc7 of ~he City oE South San ~rancieco, a ~cal in~r~en[ on ~balE Agency. acknowledged ~o Is. IN WX~SS ~EOF, X and year in thio cer~ C. Walter airkelo, Executive Director Ny Co~ission Motary ~bllc San ~ateo, State BASIS OF BEARINGS The bearing #~ ~4e Z~' W" of the northeasterly right of way line of 8edco Avenue ss shown upon that certain map entitled "SOUTH SAN FRANCISCO PLAT NO. 1, SAN ~ATEO COUNTY", which map was filed in Volume 2 of maps et page 52, in the office of the CountF Recorder of San l~ateo, California, was taken ss the b~sis o£ bearings shown upon this map. ~o 'd~m Te=~wd ~TR~ ~o ~e@unoq eq~ 6e~oTpuT =ep~oc[ en~q ~q& ~: · ~oo~q~ }LL.qOS. I ENGINEER'S CERTIFICATE This map was prepared by me or under my direction and is based upon a field survey in conformance with the requirements of the subdivision Map ACt and local ordinance at the request of the Bridge Housing Corporation in March , 1987. I hereby state that this Parcel Map substantially conforms to the approved or conditionally approved Tentative Map. I also state that all monuments are of the character and occupy the positions indicated and that such monuments are sufficient to enable this survey to be retraced. Date: Theodore C. Cannis, R.C.E. 11051 Expiration Date: 11/30/88 CITY ENGINEER'S CERTIFICATE This map conforms with the requirements of the Subdivision Map Act and Local Ordinance. Date: By: Robert S. Yee, R.C.E. 16407, Expiration Date 6/30/89 City Engineer City of South San Francisco CITY CLERK'S CERTIFICATE= The City Council by Resolution adopted at it's r~gular meeting held on ~he 13th day of May, 1987, did approve and accept on behalf of the public that certain street and utility easement i~e offered for dedication. Barbara A. Battaya South San Francisco, County of San Mated, State of California COUNTY RECORDER'S CERTIFICAT~ Filed this day of , 1987, at .M. in Book -' 6f Parcel Maps et Page at the request of Chicago Title Znsurance Company & City--~'-So. San Francisco. File No. · Fee: War~en County Recorder in and for the County o~ San Mateo, Stste of California By Deputy County Recorder MAGNOLIA PLAZA SOUTH SAN FRANCISCO, CALIFORNIA BEING A R£SU§DIVlSION/CONSOLIDATION OF LOTS 4 THROUGH THEOUGN 37° A PORTION OF LOTS 38 AND 3, AND A PORTION OF ALLEY. BLOCK 96, SOUTH SAN FRANCISCO PLAT NO. I SCALE: 1%60, APRIL 1987 CANN/S CONSULTING E'IVG/NE£/~S 2260 8AY F~D.. /~EDWOOD C/TY, C,~L/FORN/A Tk7_ (4/5)369-5588 94063 ~/~EE7 ONE O~ OA/E CEE 4,'1.5 5.5,C ~W SE NO.