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CITY COUNCIL AGENDA ITEM NO. 12

Meeting Date: February 8, 2005

Subject/Title: Adopt a Resolution of the City Council of the City of Brentwood approving a Reimbursement Agreement between the City and Suncrest Homes LLC 25 to provide for the reimbursement to Suncrest of $50,000 in the event that the parties do not execute an Assignment and Assumption Agreement or Purchase and Sale Agreement regarding the purchase by the City of that certain real property commonly known as Davis Camp, consisting of approximately 3.22 acres and identified as County Assessor’s Parcel Numbers 016-010-015 and 016.

Prepared by: Ellen Bonneville, Housing Manager

Submitted by: Howard Sword, Community Development Director

RECOMMENDATION
Approve the Resolution and authorize the City Manager to execute the Reimbursement Agreement between the City and Suncrest Homes LLC 25 in the amount of $50,000 in the event that the parties do not execute an Assignment and Assumption Agreement or Purchase and Sale Agreement regarding the purchase by the City of the Davis Camp properties.

PREVIOUS ACTION
Ordinance 756 was adopted by the City Council on September 9, 2003 creating the City of Brentwood Affordable Housing Program. The program was set up to support the availability of housing opportunities for low and moderate income residents within the community. The Ordinance created a “Housing Trust Fund” through the payment of “in-lieu” fees by developers.

On February 1, 2005, the Brentwood Planning Commission found that the purchase of the Davis Camp Property is in conformity with the City's General Plan, as required by Government Code Section 65402(a).

BACKGROUND
Suncrest LLC 25 intends to propose a 240-unit residential subdivision to be known as Prewett Ranch located between Lone Tree Way and Grant Street. The project will require a Planned Development rezone and a tentative subdivision map. As a condition of development of the project, Suncrest will be required to comply with the City’s Affordable Housing Ordinance 790 through the payment of in-lieu fees for their affordable housing obligation. They have proposed that those in-lieu fees be used towards the purchase of the Davis Camp properties.

Suncrest is currently under contract to purchase the Davis Camp property for $2,750,000 plus associated costs and the City desires to purchase the property from Suncrest to insure the reuse of the property is in compliance with the Redevelopment Plan and the future Brentwood Boulevard Specific Plan. Suncrest has an earnest deposit for the purchase of the property that will no longer be refundable after February 11, 2005. That earnest deposit is in the amount of $50,000.

Suncrest has agreed not to withdraw its deposit pending negotiation of an agreement with the City, provided that Suncrest is reimbursed its $50,000.00 deposit by the City in the event that the parties do not finalize an agreement or an agreement is not approved and executed.
Suncrest and City staff intend to negotiate an Assignment and Assumption Agreement or Agreement for Purchase and Sale within the next two weeks.

FISCAL IMPACT
Funds are available in the Housing Trust Fund 265 for the Reimbursement Agreement in an amount not to exceed $50,000.

Attachments
Resolution
Reimbursement Agreement (will be on Agenda Review)

CITY COUNCIL RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD APPROVING A REIMBURSEMENT AGREEMENT BETWEEN THE CITY AND SUNCREST HOMES 25 LLC TO PROVIDE FOR THE REIMBURSEMENT TO SUNCREST OF $50,000 IN THE EVENT THAT THE PARTIES DO NOT EXECUTE AN ASSIGNMENT AND ASSUMPTION AGREEMENT OR PURCHASE AND SALE AGREEMENT REGARDING THE PURCHASE BY THE CITY OF THAT CERTAIN REAL PROPERTY COMMONLY KNOWN AS DAVIS CAMP, CONSISTING OF APPROXIMATELY 3.22 ACRES AND IDENTIFIED AS COUNTY ASSESSOR'S PARCEL NUMBERS 016-010-015 AND 016.

WHEREAS, Suncrest Homes 25 LLC ("Suncrest") has entered into a purchase and sale agreement ("Suncrest Purchase Agreement") to purchase certain real property within the City of Brentwood, County of Contra Costa, State of California, commonly known as Davis Camp, consisting of approximately 3.22 acres and identified as County Assessor's Parcel Numbers 016-010-015 and 016 (the "Property").

WHEREAS, the City desires to either assume Suncrest's rights and obligations under the Suncrest Purchase Agreement or purchase the Property from Suncrest.

WHEREAS, Suncrest and City staff intend to negotiate an Assignment and Assumption Agreement or Agreement for Purchase and Sale within the next two weeks.

WHEREAS, Suncrest made an initial deposit of $50,000.00 to secure its rights under the Suncrest Purchase Agreement, which deposit will become nonrefundable prior to the date on which an agreement with the City will be finalized and approved.
WHEREAS, Suncrest has agreed not to withdraw its deposit pending negotiation of an agreement with the City, provided that Suncrest is reimbursed its $50,000.00 deposit by the City in the event that the parties do not finalize an agreement or an agreement is not approved and executed.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BRENTWOOD DOES HEREBY RESOLVE AS FOLLOWS:
The City Council hereby authorizes and directs the City Manager to execute the Reimbursement Agreement between the City and Suncrest Homes 25 LLC, attached hereto, subject to any minor conforming, technical or clarifying changes approved by the City Attorney.
PASSED AND ADOPTED this 8th day of February, 2005, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:

Brian Swisher
Mayor
ATTEST:

Karen Diaz
City Clerk/Director of Administrative Services
 

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