CC RES 1994-061RESOLUTION NO. 94 -61
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES ESTABLISHING A RELEASE
FEE IN ACCORDANCE WITH THE RELEASE OF CERTAIN
DEED RESTRICTIONS FOR THE PROPERTIES LOCATED
AT 28 VIA CAPRI AND 48 VIA CAPRI
WHEREAS, in 1988, the City entered into an affordable
housing agreement with Villa Capri, a California general
partnership, for the creation of ten affordable income dwelling
units located within the Villa Capri subdivision (Tract 44239);
and,
WHEREAS, an "Attachment to Grant Deed: Grant of Preemptive
Right to Purchase" (hereafter referred to as "Deed Restriction ")
was executed by the City and each of the owners of the ten
affordable units, as part of the agreement to provide affordable
housing; and,
WHEREAS, in an effort to maintain each of the ten units as
affordable for a period of thirty years, one of the Deed
Restriction clauses requires that the City be notified of any
intent to sell an affordable income unit; and,
WHEREAS, the owners of 28 Via Capri and 48 Via Capri,
respectively, have notified the City of their intent to sell
their affordable income units in accordance with the terms of the
Deed Restriction; and,
WHEREAS, due to significant capital improvements which were
made to the units at 28 Via Capri and 48 Via Capri, as well as a
downturn in the real estate market, these units must now be
considered as "market rate" rather than "affordable" units; and
WHEREAS, the Deed Restriction allows the City to abandon its
Option to Purchase and /or Transfer the Option to a Qualified
Designee (hereafter referred to as "Option") for each of the
affordable income units, thereby releasing the affordability
restrictions placed on each unit; and,
WHEREAS, the Deed Restriction provides that a Release Fee
may be charged to the owner of the affordable income unit for
costs incurred in administering the City's Option; and,
WHEREAS, pursuant to the Deed Restriction, the Release Fee
shall be established and adopted by Resolution of the City
Council; and,
WHEREAS, notice of the public hearing for the establishment
of the Release Fee was administered in a manner consistent with
the requirements of Government Code Sections 66016(a), and 6062a;
and,
WHEREAS, the City has incurred approximately $4,707.50 in
consultant costs in an attempt to administer the option by
locating a qualified designee to assign the option to purchase
the unit at 28 Via Capri; and, the City has also devoted a
significant amount of Staff time (as represented in the attached
Exhibit "All) to processing the requests of the owners of 28 Via
Capri and 48 Via Capri to sell their respective properties.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
Section 1: That, by using the formula contained in the Deed
Restriction for determining both the purchase price of the units,
and the eligible affordable income limits, the units at 28 Via
Capri and 48 Via Capri no longer meet sufficient income
affordability standards to be considered part of the City's
affordable housing goals. The goals set forth in the Housing
Element of the General Plan are intended to comply with generally
recognized standards established by the State regarding income
levels and affordability. Based on the Deed Restriction in
effect, as well as the qualifying income level and purchase price
of these units, the housing goals of the Housing Element and the
General Plan of ensuring a supply of housing which is affordable
to persons of low and moderate income levels would no longer be
furthered by maintaining these two units as part of the Villa
Capri affordable housing program.
Section 2: That the City shall charge a Release Fee to the
owner of 28 Via Capri in the amount of $5,807.50 to recover costs
incurred prior to execution of the "Notice of Intent Not to
Exercise Option or to Abandon Option." These charges are
itemized in the attached Exhibit "A."
Section 3: That the City shall charge a Release Fee to the
owner of 48 Via Capri in the amount of $1,100.00 to recover costs
incurred prior to execution of the "Notice of Intent Not to
Exercise Option or to Abandon Option." These charges are (also)
itemized in the attached Exhibit "A."
Section 4: For the foregoing reasons and based upon the
facts contained in this Resolution, in the Staff Report, the
"Attachment to Grant Deed: Grant of Preemptive Right to
Purchase," other components of the legislative record, and in the
public comments received by the City, the City Council hereby
approves the establishment of the aforementioned Release Fees for
Resolution No, 94 -61
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the affordable income units located at 28 Via Capri and 48 Via
Capri.
PASSED, APPROVED, and ADOPTED this 2nd day of August 1994,
MAY
ATTEST:
CITY ,iaLERK
STATE OF CALIFORNIA }
COUNTY OF LOS ANGELES } SS
CITY OF RANCHO PALOS VERDES }
I, Jo Purcell, City Clerk of the City of Rancho Palos Verdes,
hereby certify that the above Resolution No. 94 -61 as duly and
regularly passed and adopted by the said City Council at a
regular meeting held on August 2, 19940
F
City Clerk
CI4 OF RANCHO PALOS VERDES
Resolution No. 94 -61
Page 3 of 4
VILLA CAPRI
ESTIMATED COSTS /SERVICES INCURRED PRIOR TO ISSUING
RELEASE OF AFFORDABLE HOUSING RESTRICTIONS
AUGUST 2, 1994
VILLA CAPRI: RELEASE FEE COSTS
DESCRIPTION
PARTIES
HOURS
28 VIA
48 VIA
EWOLVED
CAPRI
CAPRI
Visual Inspection
Planner
2.0 @ $26/hr
$52.00
$52.00
of Property/
Finance Director
1.0 @ $36/hr
$36.00
$36.00
Follow Up
Building Official
2.0 @ $5 8/hr
$116.00
$116.00
Consultant Fee
Project Manager
10.5 @ $85/hr
$892.50
N/A
Attempted Resale
Relocation Consultant
53.5 @ $70/hr
$3,745.00
Administration
2.0 @ $35/hr
$70.00
Calculation of
Accounting Technician
1.0 @ $17/hr
$17.00
$17.00
Sales Price
Finance Director
1.0 @ $36/hr
$36.00
$36.00
Prepare Staff
Planner
10.0 @ $26/hr
$260.00
$260.00
Reports /Attend
Council Hearings
Review Staff
City Attorney
2.0 @ $250 /hr
$500.00
$500.00
Reports /Attend
Council Hearings
Publication of
Total Fee for 2 Publications: $176.00
$88.00
$88.00
Release Fee
(Divided between the two parties)
Hearing
SUBTOTALS:
Consultant Fee:
Consultant Fee:
$4,707.50
None
Staff Costs:
Staff Costs
$1,100
$1,100.00
(rounded to
(rounded to
nearest $100)
nearest $100)
TOTALS
$59807.50
$19100.00
VILLA CAPRI DISK #2 - VCRLSFEE.RES
Resolution No, 94 -61
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