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HomeMy WebLinkAbout2007/10/02 RDA Agenda Packet I declare under penalty of perjury that I am employed by the City of Chula Vista in the Office of the City Clerk and that I posted this document on the bulletin board according to , I I Brown Act requirements. c. ~l/-C-- Q-rzf-07 . ~!.U- ~ d Signed {tJL~ ~~~~ CllY OF CHULA VISTA AJ Cheryl Cox, Mayor/Chair Rudy Ramirez, CounciVAgency Member David R. Garcia, City Manager/Executive Director John McCann, Council/Agency Member Ann Moore, City Attorney/Agency Counsel Jerry R. Rindone, Council/Agency Member Susan Bigelow, City Clerk Steve Castaneda, Council/Agency Member October 2, 2007 4:00 P.M. (Immediately following the City Council Meeting) Council Chambers CityHali 276 Fourth Avenue CALL TO ORDER ROLL CALL: Agency Members Castaneda, McCann, Ramirez, Rindone, and Chair Cox CONSENT CALENDAR (Item 1) The City Council/Redevelopment Agency will enact the Consent Calendar staff recommendation by one motion, without discussion, unless a City Council/Agency Member, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on this item, please jill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1. JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ESTABLISHING A POOL OF INVESTMENT BANKING AND UNDERWRITING FIRMS FOR THE CHULA VISTA BAYFRONT DEVELOPMENT AND REDEVELOPMENT AGENCY PROJECT AREAS Over the next several years, the City anticipates developing a world-class waterfront using sound planning and economics, and recommends establishing a pool of investment banking and underwriting firms to help finance these new development and redevelopment projects. (Finance Director) Staff recommendation: Council/Agency adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council/Redevelopment Agency on any subject matter within the Council/Agency's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council/Agency from taking action on any issue not included on the agenda, but, if appropriate, the Council/Agency may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. PUBLIC HEARINGS The following item has been advertised as public hearings as required by law. If you wish to speak on the item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 2. CONSIDERATION OF SALE OF SPACE 118 AT ORANGE TREE MOBILEHOME PARK The Redevelopment Agency assisted residents with the purchase of the Orange Tree Mobilehome Park in 1987. Currently, five spaces remain in Agency ownership. It was the Agency's intent to sell the spaces to current or incoming tenants when in a position to purchase. The Agency has received an offer of $43,000 to purchase Space 118. (Acting Community Development Director) Staff recommendation: The Agency conduct the public hearing and adopt the following resolution: RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE "REAL ESTATE PURCHASE CONTRACT" AND AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE SAID CONTRACT AND RELATED DOCUMENTS FOR SPACE 118 AT ORANGE TREE MOBILEHOME PARK ADJOURNMENT the City Council to a Regular Meeting on October 9, 2007 at 6:00 p.m. in the Council Chambers, the Adjourned Regular Meeting of October 4, 2007 has been cancelled, and the Redevelopment Agency to their next Regular Meeting, October 16, 2007 at 6:00 p.m. in the Council Chambers In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and activities. Please contact the City Clerk for specific information at (619) 691-5041 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5655. California Relay Service is also available for the hearing impaired. Page 2 - Jt. RDAlCouncil Agenda httn:/ Iwww.chulavistaca.Q:ov October 2, 2007 ~v~ r~--: .~~--~ ~~=:~ errY Of CHULA VISTA . OCTOBER 2,2007, Item I SlJ'RMITTED BY: REVIEWED BY: RESOLUTION NO. ESTABLISHING A POOL OF INVESTMENT BANKING AND UNDERWRlTING FIRMS FOR THE CHULA VISTA BA YFRONT AND REDEVELOPMENT AGENCY PROJECT AREAS ' DIRECTOR OF FINANCErrtASURERJ/I(, CITY MANAGER IIJJ1;~ r' " 4/5THS VOTE: YES D NO ~ ITEM TITLE: BACKGROUND A joint planning effort between the City/Redevelopment Agency (Agency) and the San Diego Unified Port District (Port) created the Chula Vista Bayfront Master Plan (CVBMP) that envisions developing a world-class waterfront using sound planning and economics. The CVBMP project area encompasses a total of approximately 550 acres that includes approximately 490 acres of land area and 60 acres of water area that lie within the Bayfront Redevelopment Project Area. Over the next several years, the City anticipates the CVBMP's new development and redevelopment projects will require between $178 million and $510 million in capital and infrastructure requirements. To finance these projects, it is necessary to establish a pool of investment banking and underwriting firms to serve as an integral part of the City's financing team comprised of the City's fmancial advisor, bond counsel and City staff. In addition to establishing the underwriting pool for the CVBMP, there is a desire for the underwriting pool to also provide their financial expertise when the Agency considers development projects within the other Redevelopment Projects Areas. For any given project financing, one finn will be selected to act as Senior Manager and may contract with the other finns to co-manage if necessary. The Senior Manager will work with the City's financing team in formulating a debt financing strategy. Other duties include but are not limited to developing a sales strategy and marketing plan, assisting in structuring the debt issuance, making recommendations on the timing of the debt sale, maturity schedule and call provisions, analyzing and assisting in the evaluation of credit enhancement proposals, and assisting in preparing documents related to debt issuance. 1-1 OCTOBER 2, 2007, Iteml Page 2 of 5 Based on a Request for Proposal (RFP) process, staff recommends that seven fIrms be included in the pool. The City will be required to enter into agreements with selected fIrms only at the time of any debt fInancing. RECOMMENDATION That Council adopt the resolution establishing a pool of seven investment banking and underwriting fIrms for the City of Chula Vista Bayfront Development and Redevelopment Agency project areas. BOARDS/COMMISSION RECOMMENDATION On September 27, 2007, the Chula Vista Redevelopment Corporation adopted a resolution recommending the Chula Vista City Council and Redevelopment Agency establish a pool of seven investment banking and underwriting fIrms for the City of Chula Vista Bayfront Development and Redevelopment Agency project areas. DISCUSSION The practice of establishing an underwriting pool streamlines the process for project fmancing. Additionally, the pool concept provides the City and Agency with a wide range of fInancial expertise and it provides for participation by a variety of qualifIed fIrms. On March 23, 2007, the City issued a Request for Proposal (RFP) for investment banking and underwriting services. The RFP was advertised in the Star News, a local publication, and many underwriting fIrms were contacted and invited to participate in this process. In total, ten proposals from national and regional municipal investment banking and underwriting fIrms were received. A four-member panel consisting of the City's Director of Finance, Assistant Director of Finance, Treasury Manager and the City's fInancial advisor was created for the selection process. After reviewing all ten proposals, the panel selected nine fIrms to interview. After a comprehensive evaluation process, the interview panel selected a total of seven fIrms to be included in the pool as Senior Manager or Co-Manager. Not all fIrms in the pool will participate in each fInancing. However, it is possible that all of the fIrms will have the opportunity to participate in some capacity in at least one fInancing. Following is the alphabetical listing of the selection recommendation and a summary of the fIrms' prof1les: I. Bank of America 2. Citigroup 3. De La Rosa & Co. 4. Goldman Sachs & Co. 1-2 OCTOBER 2, 2007, Item~ Page30f5 5. JP Morgan 6. Stone & Yonngberg 7. UBS Bank of America Bank of America Securities, LLC, (BAS) is the investment banking, securities trading, and nnderwriting affiliate of Bank of America, N. A., the nation's second largest commercial bank in terms of total assets. BAS has a real estate financing capability that specializes in tax-supported bond issues (special taxes, assessments, mortgages, or tax increment). BAS also has specific experience in marketing mix-use development projects and offers a team of bankers with municipal finance industry experience of over 20 years. BAS Public Finance is headquartered in New York City, but provides service to clients via a network of 23 investment-banking offices nationwide, including Irvine and Los Angeles. BAS also has three full-service nnderwriting, sales, and trading desks with one office in San Francisco. The firm has over $1.8 billion in excess net capital as ofJune 30, 2006. Citigroup The Company was formed by the merger of Traveler's Group and Citicorp in 1998 to form the largest financial services. firm in the world. The fum is a leader in development and redevelopment fmance, and a national leader in tax-exempt hotel fmancings. Citigroup offers a team of bankers with municipal fmance industry experience of over 20 years and ranks as the number one senior manager of California debt since the year 2000. The fum has a long history of success serving their California clients through their offices in Los Angeles, San Francisco and Seattle. Currently, Citigroup's Municipal Securities Division consists of 220 public fmance bankers, 126 sales and trading professionals, and 62 financial product and credit specialists nationwide. Citigroup's excess net capital is $3.35 billion as of July 31, 2006. De La Rosa & Co. De La Rosa & Co. is a California-based investment banking services firm with full-service offices in Los Angeles and San Francisco. The firm is a top ranking municipal bond underwriter in California. De La Rosa & Co. is the only major fum serving California municipal issuers that focuses exclusively on the California municipal bond market. The firm has over 15 years of investment banking experience in bond underwriting, transportation financings, and redevelopment and land-secured projects. Goldman Sachs & Co. Goldman Sachs & Co. (Goldman Sachs) is a leading global investment banking and securities firm that provides a full range of investment banking and financing services, is based in New York, and maintains offices in over 20 different countries. The firm has maintained a Public Finance Department, the Municipal and Infrastructure Finance Group, for over half a century and is organized nnder regional groups with the Western Region Group based in their San Francisco and Los Angeles offices. The municipal fmance team has over 15 years experience. Goldman Sachs has a wealth of experience in development-related financings. 1-3 OCTOBER 2,2007, Item-i- Page 4 of 5 Goldman Sachs has been the lead manager on complex and innovative financings in the country for proj ects with limited dedicated revenue streams, has a special group which invests in real estate across the country, and has significant experience in real estate transactions in the municipal sector. The firm's excess net capital is $2.6 billion, and, unlike many firms, Goldman Sachs has no preset limits concerning the allocation of capital to their municipal underwriting. JP Morgan JP Morgan Chase & Co. (JP Morgan) is a global fmancial services company, is the third largest financial institution in the nation, and the fifth largest bank in the world. JP Morgan's Public Finance Group conducts its business through one of its three wholly-o\Vned subsidiaries, JP Morgan Securities, Inc. The Public Finance Department is headquartered in New York and maintains 18 regional offices across the country. The Western Region Group is based in San Francisco with secondary offices located in Los Angeles. The firm has over 25 years experience in public fmance with a wide array of senior-managed projects, including tax-exempt and taxable financings. The firm's excess net capital is $1.3 billion as of July 31, 2006. Stone & Youngberg Stone & Youngberg is California's largest regional investment banking firm specializing in municipal finance. Founded in 1931, the firm has a rich history of providing investment banking and brokerage services to the State of California, local government entities, high net worth investors, and institutional investment funds. Stone & Youngberg is headquartered in San Francisco with offices throughout the State, including San Diego. With over 25 years experience in municipal fmance, the firm has worked on redevelopment projects, tax allocation, and revenue bond issues, and special tax bond issues for public infrastructure needs. Stone and Youngberg has vast experience in cornmunity facility district (CFD) and assessment district fmancings. UBS UBS Securities, LLC (UBS), is a wholly-o\VTIed subsidiary of UBS AG, a publicly-traded company. UBS AG is incorporated and domiciled in Switzerland and is headquartered in New York. UBS is a leading global securities and investment banking firm providing a full spectrum of products. The firm has extensive experience in transportation finance and has specialists located in California. UBS is also a leader in land secured and tax increment fmancing with offices in Los Angeles and San Francisco and has a team with over 20 years experience in public finance. Additionally, UBS has extensive experience with multi-purpose issuers and convention center bonds and other related credits. UBS has an excess net capital of $4.6 billion as of June 30,2006. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and a conflict exists, in that Council Members Rudy Ramirez, Steve Casteneda and Jerry Rindone have property holdings within 500 feet of the boundaries of the properties which are the subject of this action. 1-4 OCTOBER 2, 2007, Item~ Page 5 of5 FISCAL IMP ACT There is no direct fiscal impact to the General Fund as a result of the reco=ended action. The fiscal impact upon future debt issues will vary depending on the size and type of the issue. All costs to be incurred will be paid solely from the proceeds of each particular transaction and therefore become part of the long-term debt cost of issuance. Prepared by: Nadine Mandery, Treasury Manager, Finance Department 1-5 RESOLUTION NO. 2007- JOINT RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ESTABLISHING A POOL OF INVESTMENT BANKING AND UNDERWRITING FIRMS FOR THE CHULA VISTA BAYFRONT AND REDEVELOPMENT AGENCY PROJECT AREAS WHEREAS, the Chula Vista Bayfront Master Plan (CVBMP) encompasses approximately 550 acres in the Bayfront Redevelopment Project Area; and WHEREAS, staff anticipates that new development and redevelopment projects in the CVBMP will require between $178 million and $510 million in capital and infrastmcture requirements; and WHEREAS, staff proposes to establish a pool of investment banking and underwriting firms to assist the City's financing team; and, WHEREAS, staff anticipates that the underwriting pool will provide financial expertise for development projects within the other Redevelopment Projects Areas in addition to projects in the CVBMP; and, WHEREAS, staff conducted a fOffi1al Request for Proposal process and ten proposals from national and regional municipal investment banking and underwriting firms were received; and WHEREAS, the selection panel recommends the following firms, listed in alphabetical order, to comprise the pool of investment banking and underwriting finns: Bank of America, Citigroup, De La Rosa & Co., Goldman Sachs & Co., JP Morgan, Stone & Youngberg, and UBS. WHEREAS, on September 27,2007, the Chula Vista Redevelopment Corporation adopted a resolution recommending that the City Council and the Redevelopment Agency establish a pool of these seven investment banking and underwriting firms. 1-6 Resolution No. 2007- Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChula Vista and the Redevelopment Agency of the City ofChula Vista that it establishes a pool of investment banking and underwriting firms for the Chula Vista Bayfront and Redevelopment Agency Project Areas. Presented by Approved as to form by Maria Kachadoorian Director of Finance l,-!-~ iL Ann Moore City Attorney and Agency COLll1sel /1 c:::-f-,.I A A<-C2-00Up'- .J:\Atlmn~y\RESQ\.F]NANCE\Establish pool of invt:stlllent banking anu UW firms Joint Council and Agency IO-02~07.doc 1-7 CHULA VISTA REDEVELOPMENT AGENCY AGENDA STATEMENT OCTOBER 2, 2007, Item dJ.- SUBMITTED BY: REVIEWED BY: PUBLIC HEARING: TO CONSIDER THE SALE OF SPACE 118 AT ORANGE TREE MOBILEHOME PARK RESOLUTION APPROVING THE "REAL ESTATE PURCHASE CONTRACT" AND AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE SAID CONTRACT AND RELATED DOCUMENTS FOR SPACE 118 AT ORANGE TREE MOBILEHOME PARK ACTING COMMUNITY DEVELOPMENT DIRECTORA0tr CITY MANAGER 4/5THS VOTE: YES D N00 ITEM TITLE: BACKGROUND In November 1987, Orange Tree Mobilehome Park converted to resident ownership. The Agency assisted residents in purchasing their park with a $600,000 acquisition loan, which was converted to loans for lower income residents to help them purchase spaces they had been renting. At that time, 29 residents either did not wish to purchase their mobilehome spaces or could not afford to at the time. The Redevelopment Agency agreed to purchase the remaining spaces after the newly-formed homeowner's association was unable to secure the financing to purchase them. The Redevelopment Low and Moderate Income Housing Set-aside Fund was used to purchase the remaining spaces. Residents who did not purchase their space remained as renters in the Park. It was also the Agency's intent to sell these remaining spaces as new mobilehome buyers moved into the park, or to sell the spaces to the current residents when they were in the position to buy. Over the last 19 years, 24 spaces have been sold. Proceeds from the sales have been deposited in the Redevelopment Low and Moderate Income Housing Set-aside Fund. Only five spaces remain in Agency ownership. The current resident renting space 118 has submitted an offer to purchase. The property is located in Orange Tree Mobilehome Park at 521 Orange Avenue. The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that there is no possibility that the activity may have significant effect on the environment; therefore, pursuant to Section 15061 (b)(3) of the State CEQA Guidelines the activity is not subjected to CEQA. Thus, no environmental review is necessary. 2-1 RECOMMENDATION That the Redevelopment Agency conduct a public hearing, consider testimony, and adopt a resolution authorizing the Community Development Director to execute a real estate purchase contract and related documents for Space 118 at Orange Tree Mobilehome Park. Insert Date Item~ Page 2 of2 BOARDS/COMMISSION RECOMMENDATION The Chula Vista Redevelopment Corporation (CYRC) reviewed the proposed real estate purchase contract and related documents for Space 118 at Orange Tree Mobilehome Park on September 27, 2007. A verbal summary of the CYRC's action will be provided. DISCUSSION On August 27, 2007, Celia Virginia Camacho and Edward John Camacho Jr. submitted an offer to the Community Development Department to purchase space 118 for $43,000. The land value of the property has been appraised at $43,000. Staff recommends that the Agency accept the offer of$43,000, because of the Agency's desire to sell the spaces. Ibis is a request to authorize the Community Development Director to execute a real estate purchase contract (attached) and related documents as approved by the City Attorney's office for the sale of Space 118 at Orange Tree Mobilehome Park. California Health and Safety Code, Article II, Section 33431 requires a public hearing to consider a sale of agency-owned property without public bids. Staff believes that the proposed sale is appropriate because the sales price is consistent with the fair market value of the property. DECISION MAKER CONFLICT Staff has reviewed the property holdings of the Redevelopment Agency and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT Proceeds of the sale, less the estimated closing costs of approximately $800, will be deposited into the Agency's Low and Moderate Income Housing Set-aside Fund for further use in providing affordable housing programs within the City. ATTACHMENTS I.Location Map 2.Real Estate Purchase Contract Prepared by: Stacey Kurz, Senior Community Development Specialist 2-2 ., Attachment 1 :>: "'.LIN" . a: :LS If .w :Ii ~ w -l iii 0 .. ::E ~ ~ III w ~ 0:;; ll! - I- ~O ~ '" .. .. t5 ~ s: ;ll z ..: " a: ' ~ o. $;< i2e~ -fl ~ 3 @ i .,. 12 .. ~ . ~ ; "31\" \\'\\ Ii> \~\ :,r-:)N"'1:/0 ~~\ T 2-3 ~y~ -f!- ~ ~....::;;:-- -- Attachment 2 em Of CHUlA VISTA REAL ESTATE PURCHASE CONTRACT AND RECEIPT FOR DEPOSIT This is more than a receipt for money. It is a legally binding contract. Read it carefully. REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA CO~TYDEVELOPMENTDEPARTMENT U"Standard Form""" Chula Vista, California ,2007 Celia Virginia Camacho and Edward John Camacho Jr., ("Buyer"), desires to purchase Space 118 at Orange Tree Mobilehome Park, 521 Orange Avenue, Chula Vista. The Redevelopment Agency of Chula Vista ("Agency") has received from Buyer, the sum of four hundred dollars ($400.00) evidenced by: [mark one} [] Cash [] Cashier's Check [ X ] Personal Check [ ] Other payable to the Redevelopment Agency of the City ofChula Vista as a non-refundable deposit on account of purchase of property. Upon acceptance of this offer, Celia Virginia Camacho and Edward John Camacho Jr. will deposit into escrow the remaining balance of $42.600 of the purchase price of $43.000, for the purchase of property situated in Chula Vista, County of San Diego, California, described as follows: SEE ATTACHED LEGAL DESCRIPTION (More commonly known as Space 118 at Orange Tree Mobilehome Park, 521 Orange A venue, Chula Vista) (the "Property") I. Buyer will deposit in escrow with Heritage Escrow the balance of $42.600 towards the purchase price of $43.000. 2. Agency will credit the $400 received as a non-refundable deposit towards the purchase price of $43.000. 3. Buyer intends to occupy the Property as buyers residence. 4. Buyer and Agency (collectively, the "Parties"), shall deliver signed instructions to the escrow holder within seven (7) days from Agency acceptance, which shall provide for closing within 30 days from Agency's acceptance. Escrow and other fees to be paid as follows: By Agencv: (a) Owner's Title Insurance Policy (b) One-half of Escrow Fee (c) Document Transfer Tax (d) Document Preparation Fee (e) IRS Tax Report (f) One-half of Transfer Fee of Homeowners Association (g) Proration of Property Taxes and Homeowners Association Fee 2-4 Real Estate Purchase Contract Page 2 of3 Bv Buver: (a) One-half of Escrow and Homeowners Association Fee. (b) If the sale is not completed due to fault of the Buyer, Buyer shall be responsible for any escrow and related fees. 5. Approval of this sale shall be contingent upon final approval of the Redevelopment Agency of the City ofChula Vista. 6. Buyer acknowledges having received copy of the Declarations, Covenants, Conditions and Restrictions and all amendments hereto, if any, governing the described property, together with a copy of the By-laws of the Orange Tree Homeowners Association. 7. Buyer and Agency each acknowledge receipt of a copy of this "Real Estate Purchase Contract And Receipt For Deposit" (the "Agreement") , which is comprised of three pages. 8. This Agreement constitutes the entire Agreement between the Parties. Any amendments to this Agreement shall be in writing and shall be signed by both Parties. 9. If a lawsuit is filed by one or both Parties, in connection with the obligations of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and court costs from the non-prevailing party. 10. Buyer agrees and acknowledges that he may have made an independent investigation to the extent Buyer deems appropriate, concerning the physical condition (including the existence of hazardous materials), value, development, use, marketability, feasibility and suitability of the subject Property, including, but not limited to, land use, zoning and other governmental restrictions and requirements. Buyer is acquiring the subject Property "as is", in its present state and condition solely in reliance upon Buyer's own investigation, and no representations or warranties of any kind, express or implied, have been made by the Agency or its representatives, except as expressly set forth in this Agreement. Buyer unconditionally releases Agency from and against any and all liability, both known and unknown, present and future, for any and all damages, losses, claims and costs (including without limitation, the existence of hazardous materials), or the subject Property's non-suitability for intended use. With respect to this Section, Buyer waives the provisions of California Civil Code Section 1542 which provides: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." I I. Buyer will accept the subject Property, and the matters relating to the subject property listed below, in the present "as is" condition. The matters are: a. Soils. Tooograohv. Etc. Soils and geological condition; topography, area and configuration; archeological, prehistoric and historic artifacts, remains and relics; endangered species. b. Utilities. Schools. Etc. Availability of utilities, schools, public access, and fire and police protection. c. Assessment Districts. assessment districts. The status and assessments of any and all Real Estate Purchase Coutract Page 3 of3 e. Easements and Encroachments. Any easement, license, or encroachment which is not a matter of public record, whether or not visible upon inspection of the subject property; Agency warrants to Buyer that Agency knows of no such easement license or encroachment. f. Other Matters. Any other matter relating to the subject property or to the development of the subject property, including, but not limited to, value, feasibility, cost, governmental permissions, marketing and investment return, except as otherwise expressly provided in this Agreement. 12. Real Estate Commissions. Each party warrants to the other that no brokers or finders have been employed or are entitled to a commission or compensation in connection with this transaction. Each party agrees to indemnify, protect, hold harmless and defend the other party from and against any obligation or liability to pay any such commission or compensation arising from the act or agreement of the indemnifying party. 13. No Discrimination. Buyer covenants by and for himself, his heirs, executors, administrators, and assigns, and all persons claiming under or through him, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, marital status, national origin, or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall Buyer or any person claiming under or through him, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sub lessees, or vendees in the Property. The foregoing covenants shall run with the land. Dated: Dated: BUYER REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA Celia Virginia Camacho AnnHix Acting Community Development Director Edward John Camacho Jr. 2-6 RDA RESOLUTION NO. 2007- RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE "REAL ESTATE PURCHASE CONTRACT" AND AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO EXECUTE SAID CONTRACT AND RELATED DOCUMENTS FOR SPACE 118 AT ORANGE TREE MOBILEHOME PARK WHEREAS, the Redevelopment Agency currently owns mobilehome spaces at Orange Tree Mobilehome Park located at 521 Orange Avenue, Chula Vista; and WHEREAS, an offer to purchase space 118 at Orange Tree Mobilehome Park has been received by the Community Development Department for $43,000; and WHEREAS, the land value has been appraised at $43,000; and WHEREAS, this sale will meet the Agency's goals of fostering permanent housing opportunities for low and moderate income residents; and WHEREAS, Article 11, Section 33431 of the Health and Safety Code requires a public hearing be held for any sale or lease of Agency-owned property without public bids; and WHEREAS, said public hearing has been conducted pursuant to Section 33431 for the sale of space 118 at Orange Tree Mobilehome Park; and WHEREAS, the Redevelopment Agency has found and determined that the sale of space 118 at Orange Tree Mobilehome Park to the buyer, on the terms proposed is for fair value under the circumstances, is in the best interest of the Redevelopment Agency, and is consistent with its housing goals; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Action (CEQA) and has determined that there is no possibility that the activity may have a significant effect on the environmental; therefore, pursuant to Section 15061(b)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista as follows: 1. That based on the facts and findings set forth above, the Redevelopment Agency of the City of Chula Vista does hereby approve the sale of space 118 at Orange Tree Mobilehome Park to Celia Virginia Camacho and Edward John Camacho Jr. for the purchase price of $43,000; and J'lAttomey\RESO\REDEVEL.OPMENT\Ornn,e Tree Lot \ 18 - RDA ReiD j()-Q2_07.doe . - 2-7 RDA Resolution No. 2007- Page 2 2. That the Redevelopment Agency of the City of Chula Vista does hereby authorize the Community Development Director to execute the "Real Estate Purchase Contract and Receipt for Deposit," on the terms presented, in substantially the same form on file in the City Clerk's office, and escrow instructions, each in a final form approved by the Agency Attorney, and with such additional provisions as may be deemed necessary or appropriate thereby; and 3. That the Redevelopment Agency of the City of Chula Vista does hereby authorize the Community Development Director to take such other action as deemed necessary to consummate said sale of space 118 at Orange Tree Mobilehome Park. PRESENTED BY APPROVED AS TO FORM BY Ann Hix Acting Community Development Director 2-8