FROM:
Housing
SUBJECT:
Title
Exclusive Negotiation Agreement (ENA) for 8425 Cypress Avenue
End
RECOMMENDATION:
Recommendation
Approve an Exclusive Negotiation Agreement (ENA) between the Fontana Housing Authority and Slovene Partners LLC, a California limited liability company to facilitate future development of an affordable permanent housing project and authorize the Executive Director to execute the ENA; and any other related documents.
End
COMMITTEE GOALS:
• To promote affordable housing by construction of high-quality multi-family housing which also serves to address the affordability needs of this community.
DISCUSSION:
The property located at 8425 Cypress Avenue; more specifically described as APN 0191-121-40, is adjacent to the Pacific Electric Trail system and Seville Park. The vacant land is approximately 1.04 acres that is currently owned by the City of Fontana.
As the first step in the development process, the City intends to enter into an Exclusive Negotiating Agreement (ENA) with Slovene Partners LLC, with the following proposed deal-points:
• The City agrees not to negotiate with any entity, other than the Developer, regarding development of the Site, or solicit or entertain bids or proposals.
• The ENA will be in place for a period of 270 days following approval by the Housing Authority with an additional ninety (90) day extensions.
• As part of the ENA, the developer will conduct studies and due diligence on the property.
• Within ninety (90) days of the ENA period the developer shall produce and submit to the Housing Authority the following items:
•
1. A proposed complete conceptual development plan for the Project on the Property that describes and depicts: (a) the location and placement of proposed buildings and the architecture and elevations of the proposed buildings;
2. A proposed time schedule and cost estimates for the development of the Project on the Property.
3.
• The items identified above will be presented to the Housing Authority and/or city staff for their review and consideration. If the developer receives positive feedback and concurrence, they shall proceed with securing any/all entitlements (including planning, building and engineering) required for development of the site.
• The Housing Authority and the developer agree to negotiate diligently and in good faith to prepare and enter into a Disposition and Development Agreement (DDA). It is the specific purpose and intent of the ENA to transition into a DDA for the ultimate development of this property.
• The Housing Authority will grant the Developer up to $600,000 for pre-development expenses related to the design of the intended project. Funding will be managed through an escrow account to be held by First American Title and Escrow.
Approval of the ENA with Slovene Partners LLC will facilitate development of 8425 Cypress Avenue vacant land for an affordable housing project located in Central Fontana.
FISCAL IMPACT:
Funding is available for the pre-development expenses ($600,000) in the Housing Authority Housing Trust fund. Appropriate paperwork will be submitted to the Budget Office with the Second Quarter Budget Status Report
MOTION:
Approve staff recommendation.