STAFF REPORT
City of Lancaster
Lancaster Housing Authority
JCC 1
12/12/2023
JC
Date: December 12, 2023
To: Mayor Parris and City Council Members
Chair Szeto and Authority Members
From: Larissa De La Cruz, Director – Community Development Chris Aune, Manager – Housing
Subject: First Amendment to Disposition and Development Agreement with Ravello Holdings, Inc.
Recommendations:
That the City Council:
1. Approve a First Amendment to the Disposition and Development Agreement with Ravello Holdings, Inc. for the sale and subsequent development of vacant parcels between Whit Carter Park and Avenue H and south of Avenue H-8 between Sierra Highway and Cedar Avenue (APNs 3135-001-900 through -919, 3135-005-901, -904 through -914, 3135-006-900, -901, -903, -905 through -923, 3135-025-986, -987).
2. Authorize the City Manager, or his designee, to negotiate, finalize, and execute (i) a First Amendment to the Disposition and Development Agreement in a form to be approved by the City Attorney; and (ii) all documents necessary or appropriate to complete the transaction.
That the Housing Authority:
1. Approve a First Amendment to the Disposition and Development Agreement with Ravello Holdings, Inc. for the sale and subsequent development of vacant parcels between Whit Carter Park and Avenue H and south of Avenue H-8 between Sierra Highway and Cedar Avenue (APNs 3135-001-900 through -919, 3135-005-901, -904 through -914, 3135-006-900, -901, -903, -905 through -923, 3135-025-986, -987).
2. Authorize the Executive Director, or his designee, to negotiate, finalize, and execute (i) a First Amendment to the Disposition and Development Agreement in a form to be 1 4
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approved by the City Attorney; and (ii) all documents necessary or appropriate to complete the transaction.
Fiscal Impact:
$40,000 will be deducted from the purchase price identified in the Disposition and Development Agreement. The total sale proceeds will be $7,460,000. The revenue will be deposited into the Low Moderate-Income Housing Asset Fund (LMIHAF) account.
Background:
On May 9, 2023, the City Council and the Lancaster Housing Authority authorized the execution of a Disposition and Development Agreement (DDA) with Ravello Holdings, Inc. for the purchase and subsequent development of vacant parcels between Whit Carter Park and Avenue H and south of Avenue H-8 between Sierra Highway and Cedar Avenue (APNs 3135-001-900 through -919, 3135-005-901, -904 through -914, 3135-006-900, -901, -903, -905 through -923, 3135-025- 986, -987).
On November 13, 2023, the Lancaster Planning Commission approved the proposal to construct and operate a 2-phase, 100% affordable, private, gated housing development. All units within the development would be rental units.
Phase I of the project consists of a 196-unit housing development on individual lots. Each lot within Phase I would contain a primary residence and an accessory dwelling unit. Each primary residence would have a garage with two parking spaces while the ADUs would have an uncovered, off-street parking space.
Phase II would be developed after Phase I and includes up to 303 affordable units for seniors.
These units are anticipated to be small, bungalow-style cottages.
The proposed First Amendment to the Disposition and Development Agreement will reduce the Purchase Price by Forty Thousand Dollars ($40,000.00) in order to compensate and reimburse the Developer for certain work needed to clear title exceptions and/or otherwise put title in a condition acceptable to the Developer.
All other terms in the DDA remain in full force as written.
CA/js
Attachment:
First Amendment to Disposition and Development Agreement with Ravello Holdings, Inc.