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Council Mtg. 7/27/82.
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JUL 2 7 1982
Santa Monica, California
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TO: Mayor and C j ty Counc i I
FROM: City Staf~
SUBJECT: Proposed Amendment No. I to Agreement for
Sale of Land For Private Development By
and Between the City of Santa Monica and
Ocean Park Villas, Ltd.
Background
On February 10, 1981, the Council approved the above-noted Agreement to effect
the developMent of twenty-four faMily Section 8 units on City-owned sites located
at 2019-25 and 2219-21 Fifth Street. HUD has completed final processing of the
project and has determined that a greater amount of funds will be available for land
than was initially expected
Therefore, this report transmits a proposed amend-
ment to the Agreement for Sale of Land which wouid Increase the land price to
the maximUM amount feasible within orogram funding constraints.
Proposed Amendment No. 1
The current Agreement for Sale of Land for Private Development speCifies that
the land price will be $213,300. It also specifies that in the event that the
portion of HUD funding allowable for land cost differs from the stated purchase
price, the sales price wi 11 be the amount allowable for land cost, which in no
event w,ll be less than $100,000.
The proposed Amendment No.1 would clarify that the land price will be Three
Hundred Thirty Thousand, Nine Hundred Seventy Nine Dollars (5330,979.00) or the
maximum aMount of HUD funding available for land,
The City acquired the Fifth Street sites in January, 1980 at a cost of 5884,000.
Had the City sold the land for $213,300, it would have provided a land cost write-
down in the amount of 5670,700. Under the proposed AMendment, the City will
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AMENDMENT NUMBER 1
That certain Agreement For Sale of Land For
Private Development, By and Between The City of Santa
Monica (the "City") and Ocean Park V1llas, a limited
partnership organized and existing under the laws of the
State of California (the "Developer") adopted February
14, 1981, together with its Attachments numbered 1
through 4, (collectively the "Agreement"), concerning
that certain property located in the C1ty of Santa
Monica, County of Los Angeles, State of California,
which is more particularly described 1n Exh1bit "A"
attached hereto and incorporated herein by this
reference 1S hereby amended and it is hereby declared as
follows:
Part I, Section}J Pag~, 2 {Sale: ,~urchasePrice).
Section 1 is hereby deleted 1n its entirety and
the follow1ng new Section 1 is hereby added:
SubJect to all the terms, covenants,
and cond1t1ons of the Agreement, 1ncludlng
but not 11mited to Sectlon 8(a) (ill, the
C1ty agrees to sell the Property to the
Developer for, and the Developer agrees tQ
purchase the Property from the Agency and
pay therefor, the amount of Three Hundred
Th1rty Thousand, Nlne Hundred Seventy-Nlne
Dollars ($330,979.00) allowed by the HUD for
land costs.
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In Witness Whereof, the C1ty and the Developer
have signed this Amendment as of the dates set opposite
their signatures.
City of Santa Monica
July
, 1982
By
JOHN H. ALSCHULER, JR.
City Manager
.July
I 1982
By
RUTH YANNATTA GOLDKAY
- Mayor
APPROVED AS Ta FOR~: -
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ROBERT ~1. 1-1YERS
City Attorney
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Developer:
Ocean Park Villas, a
11mited partnership
Jelly /9, 1982
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July
, 1982
By