Reso Terminating Milestone DA 02-21-2023\EMARGOLIN\296589.v2 RESOLUTION NO. XXXX-2023
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BARSTOW,
CALIFORNIA APPROVING THE TERMINATION OF THE DISPOSITION
AND DEVELOPMENT AGREEMENT AND ALL AMENDMENTS AND
ALL OPERATING MEMORANDUMS PREVIOUSLY ENTERED INTO
BETWEEN THE CITY OF BARSTOW AND MILESTONE HOUSING
GROUP, LLC
WHEREAS, the City of Barstow (the “City”) entered into a Development Agreement (the “DA”) dated May 17, 2021 with Milestone Housing Group, LLC (the “Developer”) for a vacant 3.3 acre property located at 555. S. Seventh Avenue (formerly Old Hospital) (APN Nos. 0181-122-18; 0181-122-19; 0181-122-20; 0181-122-21) in the City of Barstow, CA for the development of the property for affordable housing; and WHEREAS, the DA grants the City the authority to terminate the DA if the Developer has not secured an Affordable Housing Sustainable Communities grant for fiscal years 2021 and 2022; and
WHEREAS, the City desires to terminate the DA with Developer; and WHEREAS, Barstow Municipal Code Section 19.46.080 (Modification and Termination) requires the City to give notice to the Developer of its intention to terminate a development agreement; and
WHEREAS, the City gave the Developer notice of its intent to terminate the DA consistent with Barstow Municipal Code Section 19.46.080 on January 21, 2023; and WHEREAS, Section 7.1 of the DA requires the City to give written notice to the Developer of a default and its intention to terminate the DA and thirty days to commence to cure, correct or remedy the default before termination of the DA; and WHEREAS, the City has given the Developer written notice of the Developer’s default under Section 7.1 of the DA; and
WHEREAS, the City wishes to terminate the DA in order to put the property to productive use; and
WHEREAS, City staff has analyzed the DA and determined that the City possesses the right to terminate the DA due to Developer’s failure to secure Affordable Housing Sustainability Communities grants for fiscal years 2021 and 2022; and WHEREAS, the City received an email from Marcus Griffin, principal and chief financial officer of the Developer, informing the City that the Developer received the City’s January 23, 2023 notice of intent to terminate and “agree that termination is valid based on the deadlines within the agreement.” The email also informed the City that it could “waive the hearing per this email communication[]”; and Reso Terminating Milestone DA 02-21-2023\EMARGOLIN\296589.v2 WHEREAS, pursuant to Section 15061(b)(3) of the State Guidelines to implement the California Environmental Quality Act (CEQA), there is no possibility the proposed cancellation will have a significant effect upon the environment and, therefore, it is exempt from CEQA; and
WHEREAS, on February 21, 2023, the City Council conducted a duly noticed and advertised public hearing on the DA, receiving testimony from the public.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BARSTOW DOES HEREBY FIND, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. The above recitals are true and correct and are a substantive part of this resolution.
SECTION 2. The City Council finds that the termination and cancellation of this Development Agreement is consistent with the objectives, policies, land uses and programs specified in the General Plan and complies with the other standards and criteria required in Chapter 19.46 of the Barstow Municipal Code “Development Agreements” including a determination that the proposed termination and cancellation is compatible with the uses authorized in, and the regulations prescribed for, the land use district in which the property is located, and is beneficial to the public health, safety and welfare.
The City Council finds that Development Agreement between the City of Barstow and Milestone Housing Group, LLC is in default and should be terminated.
SECTION 3. Based upon the above findings and determinations, the City Council by adoption of this Resolution does hereby terminate and cancel said Development Agreement, which was originally approved by Resolution No. 5040-2021, adopted on May 17, 2021. The City Council hereby approves the Notice of Termination form submitted and attached hereto as Exhibit A.
SECTION 4. The respective officers and staff of the City are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution.
SECTION 5. The City Clerk shall attest and certify to the passage and adoption of this resolution and it shall be in effect five business days after its adoption, unless review is requested by the State Department of Finance.
Reso Terminating Milestone DA 02-21-2023\EMARGOLIN\296589.v2 PASSED, APPROVED AND ADOPTED this 21st day of February 2023, by the following vote:
__________________________________
Paul Anthony Courtney, Dr.B.A., Mayor
ATTEST:
__________________________________
Andrea Flores, City Clerk
I, Andrea Flores, City Clerk of the City of Barstow, do hereby certify that the foregoing Resolution No. XXXX-2023 is the actual Resolution duly and regularly adopted by the City Council at a regular meeting on the 21st day of February 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
Andrea Flores, City Clerk