RDA Resolution 2007-012
RESOLUTION NO. RA 2007-012
ADOPTION OF A RESOLUTION OF THE LA GUINTA
REDEVELOPMENT AGENCY APPROVING AMENDMENT
NO.1 TO THE PURCHASE AND SALE AGREEMENT AND
ESCROW INSTRUCTIONS BY AND BETWEEN THE
AGENCY AND FRANK R. GOODMAN & ASSOCIATES
PURCHASE AND SALE AGREEMENT AMENDMENT NO.1
FRANK R. GOODMAN & ASSOCIATES
WHEREAS, the La Guinta Redevelopment Agency ("Agency") is a
public body, corporate and politic, organized and existing under the California
Community Redevelopment Law (Health & Safety Code Section 33000, et seq.)
("CRL"); and
WHEREAS, pursuant to the CRL, the City Council of the City of La
Guinta ("City" or "City Council," as applicable) approved and adopted the
Redevelopment Plan ("Redevelopment Plan") for Project Area No. 2 ("Project
Area"), on May 16, 1989, by Ordinance No. 139; and
WHEREAS, on or about September 6, 2006 the Agency entered into a
Purchase and Sale Agreement and Escrow Instructions ("Agreement") with Frank
R. Goodman and Associates, a California limited partnership ("Seller"), for the
Agency's purchase of an existing 73-unit affordable housing apartment complex,
commonly known as the Washington Street Apartments (the "Project"), located at
42-800 Washington Street, in unincorporated territory in the County of Riverside,
State of California (the "Property"), for Six Million One Hundred Twenty Thousand
Dollars ($6,120,000) (the "Purchase Price"); and
WHEREAS, the Project is encumbered with a loan from the United
States of America, acting through the Farmer's Home Administration, United States
Department of Agriculture ("USDA"), as holder, in the original principal amount of
One Million Five Hundred Thousand Dollars ($1,500,000) (the "USDA Loan"), The
outstanding amount of the USDA Loan is approximately Seven Hundred Ninety-
Two Thousand Five Hundred Eighty-Four Dollars ($792,584); and
WHEREAS, the parties have completed a substantial portion of the due
diligence items required as conditions to the close of escrow, and the annexation of
the Property into the City of La Guinta is imminent, but the Agency has not yet
determined the most effective course of action to take with respect to the USDA
Loan.
Resolution No. RA 2007-012
Purchase and Sale Agreement Amendment No.1
Frank R. Goodman & Associates
September 18. 2007
Page 2
WHEREAS, the parties have negotiated an amendment to the
Agreement ("Amendment No.1") that would (i) enable the Agency and City to
annex the Property into the City before the close of escrow; (ii) provide for a
release to the Partnership of all remaining portions of the original $50,000 deposit
provided by the Agency; (iii) clarify that all portions of the deposit will be applied to
the Purchase Price; and (iv) require the Agency to make monthly "option"
payments to the Partnership, beginning on October 1, 2007, and continuing until
the earlier of (a) the close of escrow, or (b) the date the Agency acquires a majority
interest in the Partnership.
WHEREAS, Amendment No. 1 is in accordance with the
Redevelopment Plan and is of benefit to the Project Area and the City of La Guinta.
NOW, THEREFORE, BE IT RESOLVED BY THE LA GUINTA
REDEVELOPMENT AGENCY AS FOLLOWS:
Section 1. That the above recitals are true and correct and incorporated
herein.
Section 2. Amendment No.1, a copy of which is on file with the Agency
Secretary, is hereby approved. The Agency Executive Director and Agency
Counsel are hereby authorized and directed to make final modifications to
Amendment No. 1 that are consistent with the substantive terms of Amendment
No. 1 approved hereby, and the Agency Executive Director is authorized to
thereafter sign said Amendment No, 1 on behalf of the Agency.
Section 3. The Agency Executive Director is authorized and directed, on
behalf of the Agency, to (i) sign such other and further documents, including but
not limited to escrow instructions that require the Agency's signature, and (ii) take
such other and further actions, as may be necessary and proper to carry out the
terms of Amendment No.1.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La
Guinta Redevelopment Agency held this 18th day of September, 2007, by the
following vote:
Resolution No. RA 2007-012
Purchase and Sale Agreement Amendment No. 1
Frank R. Goodman & Associates
September 18. 2007
Pege 3
AYES: Board Members Adolph, Henderson, Kirk, Sniff, Chairman Osborne
NOES: None
ABSENT: None
ABSTAIN: None
M. 0 BORNE, Agency Chair
a Guinta Redevelopment Agency
ATTEST:
APPROVED AS TO FORM:
. KAT RINE JENS ,Agency Counsel
La Guinta Redevelopment Agency
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