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Meeting Date: February 12, 2002

Subject/Title: Approve a Resolution Authorizing the Sale of City-Owned Property at 161 Sycamore Avenue to the Brentwood Redevelopment Agency for Development of Sycamore Place II Senior Housing Project 

Submitted by: Dennis Beougher, City Attorney, and Gina Rozenski, Redevelopment Analyst

Approved by: John Stevenson, City Manager

By resolution, authorize the sale of City-owned property located at 161 Sycamore Avenue in the amount of $530,722 to the Brentwood Redevelopment Agency for development by Christian Church Homes of Sycamore Place II Senior Housing Project, and authorize City Manager and City Attorney to execute Purchase Agreement, Grant Deed and other necessary agreements and transactional documents.

In June 2000, the City Manager advised City Council that Christian Church Homes (“CCH”) had proposed the development of Sycamore Place II senior apartments, a 40-unit complex for 39 very-low income senior households and 1 unit for on-site property manager. The proposed project will be adjacent and similar to the successful CCH senior apartment project at 1100 Sycamore Court. The land value at that time was estimated to be approximately $400,000. Council approved the execution of an option to purchase agreement with CCH for the Public Works Yard at 161 Sycamore Avenue. However, the action was not formalized with a resolution, nor was a land value assigned.

In May 2001, City’s Right of Way Department performed an appraisal that resulted in a land value of $530,722 for City’s Public Works Yard at 161 Sycamore Avenue. This was confirmed in an updated appraisal dated January 3, 2002. 

By resolution, the Brentwood Redevelopment Agency, at its meeting of January 8, 2002, approved its contribution to the Sycamore Place II Senior Housing Project through the appropriation and expenditure of Low/Moderate Housing Funds as follows:

1. Original estimate of land value $400,000
2. Additional amount of land value warranted by 
updated appraisal 130,722
3. Title and escrow fees 10,000
4. General project management and overhead 44,699
5. Legal expenses 25,000 

Certain actions are required by the City Council to formalize its previous direction to proceed with the sale of 161 Sycamore Avenue. Specifically, a purchase agreement for the land must be entered into in order for the City to sell the land to the Agency, which in turn will give title to Christian Church Homes to develop the senior housing project. 

It is not expected that the sale of 161 Sycamore Avenue from the City to the Agency will occur until after the Disposition and Development Agreement between the Agency and Christian Church Homes, as well as all related documents such as the Affordability Agreement, Grant Deed from Agency to CCH, Promissory Notes, etc. are approved by the Agency. Furthermore, the proceeds from the sale of the City’s Public Works Yard can subsidize the costs associated with moving the Public Works Yard to the Sunset Industrial Park.

An excerpt of the January 3, 2002, appraisal update is attached, which reflects the fair market value for 161 Sycamore Avenue of $530,722.

The sale proceeds of $530,722 will be deposited into the City’s Community Facilities Fund at the time escrow is closed and title is transferred from the City to the Agency, which is not expected to occur for several months.

Attachment: Resolution No. ______
Purchase Agreement
Excerpt from Appraisal Update



WHEREAS, the City of Brentwood (“City”) desires to support the availability of quality housing opportunities for low and moderate income residents within the community; and

WHEREAS, the Redevelopment Agency of the City of Brentwood (“Agency”) has authorized staff to proceed with the reservation and expenditure of Low and Moderate Housing Funds and the preparation of a Disposition and Development Agreement in support of Sycamore Place II, a 40- unit senior housing development (“Project”); and

WHEREAS, the Agency’s reservation and expenditure of Low and Moderate Housing Funds includes, but not limited to, the cost to acquire the site necessary for the Project; and 

WHEREAS, in June 2000 the City supported the sale of property at 161 Sycamore Avenue, Assessor Parcel No. 016-160-041, (“Site”) for the development of the Project sponsored by Christian Church Homes (“CCH”), the Agency, the Department of Housing and Urban Development (“HUD”) under the 202 Grant Program, and Contra Costa County under the HOME Program; and 

WHEREAS, CCH possesses the qualifications and management resources necessary to insure the development of the Project in accordance with the purposes and objectives of the Agency’s Redevelopment Plan; and 

WHEREAS, HUD has approved funding for the Sycamore Place II Senior Housing Project submitted by CCH; and 

WHEREAS, Contra Costa County has approved $454,699 of HOME funds for the Sycamore Place II Senior Housing Project as a matching contribution to the Agency’s participation; and

WHEREAS, the City shall receive full value for the sale of the Site according to a qualified appraisal, which was updated on January 3, 2002, for $530,722.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood hereby approves the Agreement for Sale of Real Property, attached as Exhibit A and made part hereof, to sell 161 Sycamore Avenue to the Redevelopment Agency of the City of Brentwood for purposes of constructing a senior housing project. 

BE IT FURTHER RESOLVED, that the purpose of the Agreement for Sale of Real Property is to facilitate the development of affordable senior housing within the community and specifically on the Site. The City and the Redevelopment Agency agree that the development of the Project is in the vital and best interests of the City and the health, safety, morals and welfare of its residents, and in accord with the public purposes and provisions of applicable federal, state and local laws and regulations.

BE IT FUTHER RESOLVED, that in order to efficiently and effectively develop the Site, the City shall sell and convey the Site to the Agency for the fair market value of $530,722. In conjunction with the Agreement for Sale of Real Property, the Agency will enter into a DDA with CCH for conveyance of the Site from the Agency to CCH. The DDA requires CCH to develop the Site as an affordable senior housing project in accordance with the rules and regulations governing the use of Low and Moderate Housing Fund. The Site shall not be conveyed to the Agency unless and until the Developer has satisfactorily completed all obligations and satisfied all conditions precedent set forth in the DDA and is in a position to accept conveyance of the Site from the Agency. The Site shall be conveyed from the City to the Agency and concurrently conveyed from the Agency to CCH. Proceeds from the sale of the Site to CCH under the DDA will be paid directly to the City as consideration for the conveyance of the Site to the Agency hereunder.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on February 12, 2002 by the following vote:


Parcel Number: 016-160-041
Property Location: 161 Sycamore Avenue, Brentwood
Project Name: Brentwood City Corporation Yard

Grantor: City of Brentwood
Mailing Address: 150 City Park Way, Brentwood, CA 94513

A document in the form of a Grant Deed, covering the property described in Exhibit A and shown on Exhibit B (“Property”) will be executed and delivered to the City Clerk of the City of Brentwood.

In consideration of the above-mentioned instrument and the other considerations hereinafter set forth, it is mutually agreed as follows:

1. This Agreement is effective on the date of approval by the City Council.

The Brentwood Redevelopment Agency (“RDA”)shall:

A. Pay the CITY the sum Five Hundred Thirty Thousand Seven Hundred Twenty Two Dollars ($530,722) for interest in the Property, as conveyed by the above described Grant Deed when title to said property or interest vests in the RDA free and clear of all liens, encumbrances, assessments, leases, and taxes

(1) Covenants, conditions, restrictions and reservations of record, if any.
(2) Easements or rights of way of record over said property.
(3) Any lien, encumbrances, or leases acceptable to RDA.

B. Pay all escrow, recording, or other fees incurred in this transaction, if any, and, if title insurance is desired by the RDA, the premium charged therefore.

2. It is understood that the agreement between the RDA and the CITY shall include the following:

A. CITY warrants that there are no oral or written leases on all or any portion of the property being conveyed exceeding a period of one month, and the CITY further agrees to hold the RDA harmless and reimburse the RDA for any and all of its losses and expenses occasioned by reason of any lease of Property held by any tenant of grantor for a period exceeding one month.

B. It is agreed and confirmed by the parties hereto that notwithstanding other provisions in this contract, the right of possession and use of the subject property by the RDA, including the right to remove and dispose of improvements, or the close of the escrow controlling this transaction, whichever occurs first, and that the amount shown in paragraph 1A herein includes, but is not limited to, full payment for such possession and use, including damages, if any, from said date.

C. The acquisition price of the Property being acquired in this transaction reflects the fair market value of the Property without the presence of contamination. If the Property being acquired is found to be contaminated by the presence of hazardous waste which requires mitigation under Federal or State law, the RDA may elect to recover its clean-up costs from those who caused or contributed to the contamination. CITY shall further indemnify, defend, save and hold harmless the RDA from any and all claims, costs and liability, including reasonable attorney’s fees, for any damage, injury or death to persons or property arising directly or indirectly from or connected with the existence of toxic or hazardous material on the property, save and except claims, costs or litigation arising through the sole willful misconduct of the RDA, it agents or employees.

3. The parties have herein set forth the whole of their agreement. The performance of this agreement constitutes the entire consideration for said document and shall relieve the City of all further obligation or claims. 



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