CITY COUNCIL STAFF REPORT
MEETING DATE: SEPTEMBER 2, 2015
PREPARED BY: Leslie A. Little, Asst. City Manager, Community Development
APPROVED BY: City Manager
TITLE
SETTLEMENT AND RELEASE OF FUTURE CLAIMS WITH SOUTH COUNTY HOUSING CORPORATION AND AFFILIATES FOR CERTAIN OUTSTANDING HOUSING MATTERS
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution directing and authorizing the City Manager to take actions needed, including the execution of agreements, to effect the following proposed transactions:
1. Accept Villa Ciolino Parcel B ($366,359) as consideration for termination of Villa Ciolino Parcel "B" outstanding loan $179,062 and outstanding Madrone Plaza loan $140,412, collectively $319,475, and
2. Accept two payments $252,822 and $42,582, collectively $295,404 from Crest Avenue Associates as Consideration for Viale Loan ($364,384) and Madrone Plaza Unsecured Deficiency Note ($214,465) recorded 12/19/12 with the sale of Madrone Parcel #3.
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
REPORT NARRATIVE:
For the past 18 months, the City and South County Housing (SCH) have been collaborating to facilitate the transfer of SCH housing assets to Eden Housing and the termination of South County's operations in Morgan Hill. This has been a difficult task, considering the many fruitful and productive years of partnership that the City and South County Housing have enjoyed. Previously, the City Council has taken several actions including the transfer of 8 former South County properties on April 1, 2015, to successor owner, Eden Housing, and provided the City Manager the authority to execute documents to facilitate these transfers.
In the final phase of reconciling assets, there are some "clean up" actions that are left to be addressed resulting from outstanding loans between South County Housing and the City. The recommended actions for City Council considerati...
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