Mayor Weill
Mayor Pro Tem Mallotto
Council Member Downs
Council Member Fromberg Edelstein
Council Member O'Keefe
Thursday, May 15, 2025, 4:30 PM
City Council Chamber
69-825 Highway 111
Rancho Mirage, CA 92270
CALL & NOTICE OF A SPECIAL MEETING
OF THE RANCHO MIRAGE CITY COUNCIL
SERVING AS THE HOUSING AUTHORITY BOARD
NOTICE IS HEREBY GIVEN that, as provided by Government Code Section 54956, the Mayor of the City of Rancho Mirage has called a Special Meeting for the purpose stated below. No other business will be conducted at this special meeting.
AGENDA
1.GENERAL
1A. Call to Order
1B. Flag Salute
1C. Roll Call - Downs, Fromberg Edelstein, O'Keefe, Mallotto, Weill
2.PUBLIC COMMENTS
An opportunity for the public to speak regarding items on the agenda for a maximum of three (3) minutes per speaker.
3.ACTION ITEMS
3A. Conditional Agreement Regarding Crossings at Peterson Road — RECOMMENDED ACTION: Approve the Conditional Agreement Regarding Crossings at Peterson Road with Blieu LLC Regarding Financial Assistance in the Form of a Residual Receipts Loan Totaling $3,824,846, and authorize the Housing Authority's Executive Director to execute the Agreement and take further steps to effectuate the same.
4.ADJOURNMENT
PUBLIC NOTICES
Agenda Materials: Any staff reports for agenda items considered in open session, as well as agenda materials for open session items provided to a majority of the legislative body following distribution of the agenda, are available for inspection in the City Clerk’s Office at Rancho Mirage City Hall, located at 69-825 Highway 111, Rancho Mirage, CA 92270, during normal business hours.
Americans with Disabilities Act (ADA): If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the ADA, please contact the City Clerk’s Office at (760) 324-4511 Ext. 488, or via e-mail to [email protected], prior to the meeting. Providing notice at least 48 hours in advance of the meeting is suggested, so a determination may be made as to whether the request is feasible. 1 Livestream: This meeting may be viewed via Livestream on the City’s website at www.RanchoMirageCA.gov .
Public Comments: Written public comments may be submitted to the City Clerk via email to [email protected] or mail/delivery to ATTN: City Clerk, City of Rancho Mirage, 69-825 Highway 111, Rancho Mirage, CA 92270. Please submit written public comments at least three (3) hours in advance of the meeting to ensure they may be fully considered. Written public comments received during the meeting will be distributed to the legislative body(ies) and made available to the public following the meeting.
Oral public comments/testimony may be provided in person at the meeting during the non-agenda public comment period and during the public comment/testimony period for each agenda item. Public comments are limited to three (3) minutes per speaker. Please fill out a Request to Speak slip prior to the start of the meeting and submit it to the City Clerk. You will be called upon to speak at the appropriate time. Please submit a separate slip for each item on which you wish to speak.
Declaration of Posting: I, Kristie Ramos, City Clerk of the City of Rancho Mirage, do hereby declare that the foregoing meeting notice/agenda was personally delivered to the legislative body and posted on the City of Rancho Mirage website at www.RanchoMirageCA.gov , on the Rancho Mirage City Hall bulletin board at 69-825 Highway 111, Rancho Mirage, CA 92270, and at the Rancho Mirage Library & Observatory at 71-100 Highway 111, Rancho Mirage, CA 92270, at least 24 hours in advance of the meeting.
Date Posted: May 14, 2025
2 City Council Staff Report
Conditional Agreement Regarding Crossings at Peterson Road
DATE ITEM #
May 15, 2025 ACTION ITEMS - 3A.
Presented To Presented By
Mayor and City Council Marcus Aleman, Housing Manager
RECOMMENDED ACTION
Approve the Conditional Agreement Regarding Crossings at Peterson Road with Blieu LLC Regarding Financial Assistance in the Form of a Residual Receipts Loan Totaling $3,824,846, and authorize the Housing Authority's Executive Director to execute the Agreement and take further steps to effectuate the same.
DISCUSSION
In December of 2023, the Housing Authority executed a disposition and development agreement with Blieu LLC establishing site control of the former Rancho Palms Mobile Home Park for the development of affordable housing.
The development project, Crossings on Peterson Road, aligns with Rancho Mirage’s commitment to regional affordable housing needs and providing housing opportunities for all. The 116 affordable units fulfill 28% of the City’s Extremely Low-Income RHNA allocation and 15% of the Low-Income allocation. This project will provide much needed affordable housing for families with Veteran Head of Households and was entitled in December of last year by the City Council.
The next step of the process for Blieu is to secure the necessary funding for the project, which given the current climate is no easy task. The application for the next round of Low-Income Housing Tax Credits and tax-exempt bond allocations and project-based vouchers is May 20th. If the applicant doesn’t meet the May 20th application deadline, the next round of financing would not be available until September. However, Blieu cannot apply for financing until the remaining funding gap of $3.825 million is closed.
Blieu LLC has secured substantial funding from federal, state, and private sources for this project. Previous Housing Authority and City commitments, including publicly owned land and fee deferrals, were instrumental in enabling the developer to secure state tax credits, bond financing, and project-based vouchers from the County of Riverside. However, a final local contribution is required to close the last funding gap to move the project forward. 3 Blieu’s funding gap totals $3.825 million dollars. Blieu LLC has requested the Housing Authority contribute the $3.825 million in the form of a residual receipts loan. This contribution represents 4.4% of the total $88 million project cost. The Housing Authority’s contribution is essential to closing the remaining financial gap and ensuring the project has the best possible chance of developing and maximizing other funding sources. Without this additional commitment, the project risks delays, loss of leveraged funding, or even cancellation. By stepping forward at this pivotal moment, the Housing Authority gives the Crossings on Peterson Road its best chance at breaking ground and delivering critically needed affordable homes for veterans and working families. If the funding application is delayed until September, the project risks missing critical financing deadlines tied to Low-Income Housing Tax Credits, tax-exempt bond allocations, and project-based vouchers. This would jeopardize the current funding stack, potentially requiring the developer to reapply for competitive resources, delay the construction start date by 12 months or more, and could result in increased costs. A delay at this stage would set the project back substantially and could result in the loss of years of coordinated planning and investment.
FISCAL IMPACT
The Residual Receipts Loan of $3.825 million will be funded from the Housing Authority Fund after other financing sources are secured.
Attachments
Attachment 1 - Draft Conditional Agreement
4 CONDITIONAL AGREEMENT
REGARDING CROSSINGS AT PETERSON ROAD
BY AND BETWEEN RANCHO MIRAGE HOUSING AUTHORITY
AND
BLIEU LLC
The Rancho Mirage Housing Authority (the “Housing Authority”), has approved a request from Blieu LLC (“Blieu”) to finance a loan for a portion of the construction on a +/-
12.34-acre parcel comprised of Assessor Parcel Number 689-180-012 (the “Property”), located on Petrson Road, in the total amount of Three Million Eight Hundred Twenty-Four Thousand Eight Hundred Forty-Six Dollars ($3,824,846.00) (the “Housing Authority Loan”) for the development of a 116-unit multi-family apartment affordable housing community located on the Property and known as the Crossings on Peterson Road (the “Project”), subject to the following terms and conditions.
In December of 2023, the Housing Authority and Blieu entered into a Disposition and Development Agreement (the “DDA”) for the disposition of the Property and development of the Project, as further defined therein. As of May 15, 2025, the Housing Authority has conditionally approved the Housing Authority Loan to Blieu, subject to the following:
1. Project. The Project will be operated for a period of fifty-five (55) years following the date of completion of the Project and issuance of a certificate of occupancy to provide affordable housing to extremely-low, very-low and low income households in accordance with the affordability restrictions contained in the Loan Documents (as defined below) and in accordance with the four percent (4%) tax-exempt bonds, Federal tax credits, State tax credits and project based vouchers to be used the Project. To the extent necessary, the Housing Authority shall subordinate the deed of trust securing the Housing Authority Loan to the liens and encumbrances of the Project’s construction and permanent lenders. The Housing Authority will not subordinate its interests in the regulatory agreement referenced in Section 3 below to the liens or encumbrances of the Project’s construction and permanent lenders.
2. Project Owner. The Project owner shall be a California limited partnership whose administrative general partner is controlled by Blieu or its affiliates.
3. Housing Authority Loan Documents. The proposed structuring of the Housing Authority Loan will be evidenced by, among other things, a loan (the “Loan Agreement”), promissory note, deed of trust and regulatory agreement, (collectively, the “Loan Documents”), each in form and substance acceptable to the Housing Authority and approved as to form by its ATTACHMENT 1
5 counsel, and executed by the Project owner and the Housing Authority Executive Director as applicable.
4. Housing Authority Loan Terms. The Housing Authority Loan shall have a term of fifty- seven (55) years, commencing as of the effective date of the Loan Agreement and shall bear interest at three percent (3%) per annum. The Housing Authority Loan shall be repaid from the Project’s residual receipts remaining after payment of fees (including any deferred developer fees, investor fees, partnership fees, and management fees), debt service and operating expenses.
5. Affordability Restrictions. The affordability restrictions that will be placed on the Project by the Housing Authority will be in accordance with California Health and Safety Code Section 50053 as follows, with priority provided to a specified number of units as determined by the Housing Authority to income eligible families with a Military Veteran as head of household, in accordance with the DDA.
6. Construction and Permanent Lender Loan Documents. The loan documentation pertaining to the proposed construction and permanent loans to finance the Project, and all related instruments, shall be submitted to the Housing Authority for its approval and shall be in form and substance acceptable to, and approved by, the Housing Authority’s Executive Director and approved as to form by its counsel.
7. Award of Tax-Exempt Bond Proceeds, Federal Tax Credits, State Tax Credits, and Project Based Vouchers. Prior to closing and funding of the Housing Authority Loan, the Project shall have all of its funding sources committed. This includes but is not limited to the Project having awarded an allocation of four percent (4%) tax-exempt bond proceeds, Federal tax credits, State tax credits, project based vouchers, and any other funding source.
8. No Third-Party Beneficiaries. This Conditional Agreement is solely for the benefit of the Housing Authority and BLIEU, and shall not inure to the benefit of, or be relied upon by, any other person or entity.
9. Term of Conditional Agreement. This Conditional Agreement shall terminate on June 30, 2026, if prior to such date the Housing Authority Loan shall not have closed and been funded as provided herein. Notwithstanding the foregoing, the Executive Director may, in his or her sole discretion, extend the termination date for period of twelve (12) months.
10. Confirmation of Pro-Forma. Prior to closing of the Housing Authority Loan, the Housing Authority shall have received (i) such materials, appraisals and market studies as it shall require to confirm the fair market value of the Property and (ii) any and all documentation reasonably requested by the Housing Authority that affects the security for or the size of the Housing Authority Loan.
6 11. Counterparts. This Agreement may be executed in counterparts, with the same effect as if each counterpart were an original document.
RANCHO MIRAGE HOUSING AUTHORITY
BY: __________________________________
Isaiah Hagerman, Executive Director
DATE: ____________________________, 2025
BLIEU LLC
BY: _________________________________
Mark Bigley, Vice President
DATE: ____________________________, 2025
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