FROM:
Housing
SUBJECT:
Title
Exclusive Negotiation Agreement for the vacant land general located between Nuevo Avenue and Juniper Avenue and between Arrow Boulevard and the Pacific Electric Trail, in the City of Fontana, California.
End
RECOMMENDATION:
Recommendation
1. Approve an Exclusive Negotiation Agreement (ENA) between the City of Fontana (City), the Fontana Housing Authority (Authority), National Community Renaissance, a California nonprofit public benefit corporation and Pelican Communities, a California limited liability company (together referred to herein as Developers) to facilitate future development of an affordable and market rate housing project (Forge District Project); and
2. Authorize the Executive Director to execute the ENA and any other related documents.
End
HOUSING AUTHORITY GOALS:
• To promote diverse housing options, including affordable housing, within the City of Fontana.
DISCUSSION:
The City currently owns approximately 6 acres of vacant land located generally between Nuevo Avenue and Juniper Avenue, and between Arrow Boulevard and the Pacific Electric Trail. The City is also in the process of acquiring a smaller parcel, which constitutes a portion of the larger parcel, generally along the Pacific Electric trail (Property). Together, the parcels will comprise the total intended for the Forge District Project.
The Developers have expressed interest in acquiring the Property to develop a housing project that would include both market-rate and affordable housing units. To formalize the initial steps towards this development, staff has negotiated this ENA to establish a framework for negotiations between the parties regarding the potential disposition and development of the Property.
The ENA incorporates the following deal points:
• Unless required by law, the City agrees not to negotiate with any other entity, other than the Developers, regarding the development of the Property, or solicit or entertain bids or proposals.
• The parties will negotiate for a period of 270 days following approval by the City and the Authority with an additional 90-day extension.
• As a part of the ENA, the Developers will conduct studies and due diligence on the Property.
• The parties have agreed to negotiate diligently and in good faith to prepare and enter into one or more disposition and development agreements. It is the specific purpose and intent of the ENA to transition in one or more disposition and development agreements for the development of the project.
FISCAL IMPACT:
The ENA itself does not obligate the City nor the Authority to any upfront financial investment.
MOTION:
Approve staff’s recommendation