From: Matthew Summers
To: Ephraim Margolin
Subject: FW: Termination of Development Areement with Milestone Date: Wednesday, February 1, 2023 4:28:26 PM
Attachments: image001.png
Ltf to Milestone re Development Agreement 01 21 23[24].pdf image002.png
image003.png
From: Willie Hopkins <[email protected]>
Sent: Tuesday, January 31, 2023 12:42 PM
To: Matthew Summers <[email protected]>
Subject: Fwd: Termination of Development Areement with Milestone Matthew,
See below and attachment
Sent from my iPhone
Begin forwarded message:
From: Marcus Griffin >
Date: January 31, 2023 at 12:33:55 PM PST
To: Willie Hopkins
Cc: Marcus Griffin >
Subject: Termination of Development Areement with Milestone [NOTICE: THIS IS AN EXTERNAL EMAIL]
Do not open any suspicious attachments or links. Do not reply to any requests for sensitive information. If in doubt, call the sender to confirm!
Good afternoon Mr. Hopkins. I received the attached letter dated January 21, 2023 giving my company notice that are development agreement is being terminated. We agree that the termination is valid based on the deadlines within the agreement. You can waive the hearing per this email communication.
As you may be aware, we were only able to submit a single application for AHSC funding in 2021, as the 2022 application cycle was delayed until early 2023.
Unfortunately the competitive system adopted by the Strategic Growth Council for AHSC program contains a scoring system that leaves the Barstow site in a noncompetitive position for the 2023 funding round. Other rural communities with access to a vanpool program operated by CalVans achieve higher scores. CalVans does not operate in San Bernardino County.
Absence any other project component generating significant greenhouse gas reductions, it is not worth pursuing AHSC funding. We have spent significant time working with City Staff, Enterprise Communities and California Coalition for Rural Housing to try and find a way to make the project competitive without success.
We have enjoyed our time working with your staff and hope you find alternatives financing strategies to develop the site.
Please let me know if you have any questions. Have a great day.
MARCUS GRIFFIN
Principal & CFO
Milestone Housing Group, LLC / Milestone Construction Group, LLC HQ: 51 University Ave., Ste D
Los Gatos, CA 95030
o: 408.878.6921
c:
e:
MILESTONEHOUSING.COM
This message may contain confidential information and is intended only for the individual named. If you are not the named addressee or if email content is defamatory, you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system. E-mail transmission cannot be guaranteed to be secured or error-free as information could be intercepted, corrupted, lost, destroyed, arrive late or incomplete, or contain viruses. The City of Barstow and/or its staff members therefore does not accept liability for any errors or omissions in the contents of this message, which arise as a result of e-mail transmission. Web: www.barstowca.org | Address: 220 East Mountain View Street, Barstow, CA 92311
City of Barstow
220 East Mountain View Street, Suite A,
Barstow, California 92311-2839
January 21, 2023
VIA E-MAIL: [email protected] AND U.S. MAIL
Milestone Housing Group, LLC
Marcus Griffin
51 University Avenue
Los Gatos, CA 95030
Telephone: (650) 980-9555
Re: Termination of Development Agreement
Dear Mr. Griffin,
As you are aware, the City of Barstow (“City”) entered into the Development Agreement with Milestone Housing Group, LLC dated May 17, 2021, regarding that certain real property located in the City of Barstow, San Bernardino County, California, legally described on Exhibit A attached hereto. The purpose of that Development Agreement was to build affordable housing on the site by obtaining a grant under the state’s Affordable Housing and Sustainable Communities Program. That purpose was memorialized in Section 1.1.1 of the Development Agreement which requires Milestone Housing Group, LLC to secure an Affordable Housing and Sustainable Communities Program grant as part of its obligations under the Development Agreement and before the parties can enter into a ground lease for the real property.
However, Milestone Housing Group, LLC has failed to adhere to secure the Affordable Housing and Sustainable Communities Program grants it is required to obtain in Section 1.1.1 of the Development Agreement. Pursuant to Section 7.1 of the Agreement, the City must give Milestone Housing Group, LLC 30 days after the receipt of a notice of default to correct or remedy its default. Considering the City’s long-term objectives at the site, the City has determined a need to terminate the Development Agreement in accordance with these provisions.
Milestone Housing Group, LLC
January 21, 2023
This letter constitutes written notice of default to Milestone Housing Group, LLC that it is in breach/default of the Development Agreement for failing to secure the Affordable Housing and Sustainable Communities Program grants set out in Section
1.1.1. Milestone Housing Group, LLC now has 30 days to cure such breach/default.
The City is scheduling a public hearing on the terminating the Development Agreement for February 21, 2023. Notice of the hearing is attached to this letter.
If you have any questions about this letter or can provide proof that Milestone Housing Group has secured Affordable Housing and Sustainable Communities Program grants, you can contact me at 760-255-5195 or [email protected].
Sincerely,
Willie A. Hopkins, Jr.
City Manager
Enclosures (2):
- Exhibit A: Development Agreement with Milestone Housing Group, LLC dated May 21, 2021
- Notice of Public Hearing for February 21, 2023
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City of Barstow will hold a public hearing before the CITY OF BARSTOW CITY COUNCIL to consider a resolution terminating a development agreement with Milestone Housing Group, LLC.
TIME OF HEARING: 7:00 P.M.
DATE OF HEARING: February 21, 2023
PLACE OF HEARING: CITY OF BARSTOW COUNCIL CHAMBERS, 220 EAST MOUNTAIN VIEW STREET, BARSTOW, CA 92311
The City entered into a development agreement with Milestone Housing Group, LLC on May 17, 2021 (Resolution No. 5040-2021). The City now desires to terminate this development agreement as Milestone Housing Group has failed to secure the affordable housing grants necessary to undertake its duties under the development agreement.
The abovementioned resolution does not require further review under the California Environmental Quality Act (“CEQA”) pursuant to subdivision (b)(3) of CEQA Guidelines Section 15061, in view of the fact that there is no possibility the proposed cancellation will have a significant effect upon the environment and, therefore, it is exempt from CEQA.
For further information regarding this hearing please contact the City Clerk’s Office at 760-255- 5122, by email at [email protected] or go to the City Council’s agenda web page at https://www.barstowca.org/residents/advanced-components/calendar-meeting-list.
The City Council will consider the proposed ordinance at the public hearing. The case file for the proposed ordinance is available for review via email by staff. Please contact the City Clerk’s Office regarding additional viewing methods.
Any person wishing to comment on the proposed ordinance may submit their comments in writing by mail or email, or by phone between the date of this notice and the public hearing; or, you may appear and be heard at the time and place noted above. You may participate remotely by registering with the City Council. All comments received prior to the public hearing will be submitted to the City Council for consideration, in addition to any oral testimony, before making a decision on the proposed project. All correspondence received before and during the meeting will be distributed to the City Council and retained for the official record.
If this project is challenged in court, the issues may be limited to those raised at the public hearing, described in this notice, or in written correspondence delivered to the City Council at, or prior to, the public hearing. Be advised that as a result of public hearings and comment, the City Council may amend, in whole or in part, the proposed ordinance.
Please send all written correspondence to: CITY OF BARSTOW CITY COUNCIL Attn: CITY CLERK, 220 EAST MOUNTAIN VIEW STREET, BARSTOW, CA 92311 Published: Victorville Daily Press, January 25, 2023