Item 17 Staff Report Adopt Resolution Authorizing the Mayor to Sign a Deed Restriction Amending Extending the Town's First Right of Refusal to Purchase a Below Market Price Unit/b
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
DATE: December 2, 1993
TO: MAYOR AND TOW .SUNCIL
FROM: TOWN MANAGER
SUBJECT:
COUNCIL AGENDA
DATE: 12-6-93
ITEM NO. / --7
ADOPT RESOLUTION AUTHORIZING THE MAYOR TO SIGN A DEED RESTRICTION
AMENDMENT EXTENDING THE TOWN'S FIRST RIGHT OF REFUSAL TO PURCHASE
A BELOW MARKET PRICE UNIT
RECOMMENDATION:
Adopt the attached resolution authorizing the Mayor to sign a deed restriction amendment extending the
Town's first right of refusal to purchase the below market price unit up to three months.
BACKGROUND:
Deed restrictions are recorded for each of the Town's 17 owner -occupied Below Market Price (BMP)
Housing Program's units. The agreements require the property owner to notify the Town of their intention
to sell the unit. The Town then has up to six months to locate an eligible buyer at a below market rate. After
six months, the deed restrictions may no longer apply and the unit can be sold by the property owner at
market rate.
Property owner's names and addresses are kept confidential to protect the program participants' privacy.
DISCUSSION:
A BMP unit owner notified the Town of his intention to sell his unit at the calculated price giving the Town
until December 29, 1993, to exercise its first right of refusal. The Town contracts with Community Housing
Developers to sell BMP units. They marketed the unit; applications were received and prioritized. The sales
process was delayed: the first three eligible buyers opted out of the program because they changed their
minds or were unable to obtain financing; the property owners were on vacation and unreachable for six
weeks early this fall.
The fourth eligible applicant has signed a contract to purchase the unit. The escrow is expected to close
in January after the December 29 deadline. The owner has agreed to extend the Town's first right of refusal
to March 31, 1994.
PREPARED BY: Regina A. F
Community S:,. es Director
RAF:dr
CSD05:A:CNCLRPTS\EXTEND.BMP
Attachments: Resolution
12/2/93 1:03 pm
File #
Reviewed by: 1.` Attorney Clerk `fiance Treasurer
COUNCIL ACTION/ACTION DIRECTED TO:
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PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION AUTHORIZING THE MAYOR TO SIGN A DEED RESTRICTION
AMENDMENT EXTENDING THE TOWN'S FIRST RIGHT OF REFUSAL TO PURCHASE A BELOW MARKET
PRICE UNIT
December 2, 1993
CONCLUSION:
Resolution 1988-80 authorizes the Town Manager to sign standard deed restrictions. Restriction amendment
requires Council approval. Adopting the attached resolution will authorized the Mayor to execute a deed
restriction amendment. The amendment will be prepared by December 15.
ENVIRONMENTAL ASSESSMENT:
The Below Market Price Housing Program is not a project as defined under CEQA, and no further action is
required.
FISCAL IMPACT:
All costs associated with Program implementation are paid through the Town's Below Market Price In Lieu
fund. The fund consists of monies paid by developers in -lieu of building units. The BMP fund (216), has
a cash balance in excess of $130,000. In exchange for the owners agreement to extend the Town's first
right of refusal, they will be reimbursed for mortgage ($340.65) and homeowner's fees ($179.00) on a pro-
rated basis beginning December 30. Total costs will not exceed $1,600. Therefore, making these payments
would not have a fiscal impact on the fund. Another option is for the Town to purchase the unit. This would
have a greater fiscal impact considering Staff and closing costs.
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE MAYOR TO SIGN A DEED RESTRICTION AMENDMENT
EXTENDING THE TOWN'S FIRST RIGHT OF REFUSAL TO
PURCHASE A BELOW MARKET PRICE UNIT
WHEREAS, the Town is assured first right of refusal to purchase owner -
occupied units included in the Town's Below Market Price (BMP) Housing Program
through deed restrictions recorded with each property; and
WHEREAS, a BMP unit owner notified the Town of his intent to sell his unit;
and
WHEREAS, escrow is not expected to close before the Town's first right of
refusal expires on December 29, 1993; and
WHEREAS, the owner has agreed to extend the Town's first right of refusal
to March 31, 1993, in exchange for reimbursement of mortgage and homeowners fees not
to exceed $1,600,
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS
GATOS DOES HEREBY RESOLVE AS FOLLOWS: that the Mayor is authorized to sign
a deed restriction amendment extending the Town's first right of refusal to purchase a BMP
Housing unit.
CSD08: a: \RESOS\CS 120693. ROO
1
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 6th day of December, 1993, by the following
vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
ATTEST:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CSDO8:a:\RESOS\CS 120693. ROO 2
RESOLUTION 1993-174
RESOLUTION OF THE TOWN COUNCIL
OF THE TOWN OF LOS GATOS
AUTHORIZING THE MAYOR TO SIGN A DEED RESTRICTION AMENDMENT
EXTENDING THE TOWN'S FIRST RIGHT OF REFUSAL TO
PURCHASE A BELOW MARKET PRICE UNIT
WHEREAS, the Town is assured first right of refusal to purchase owner -
occupied units included in the Town's Below Market Price (BMP) Housing Program
through deed restrictions recorded with each property; and
WHEREAS, a BMP unit owner notified the Town of his intent to sell his unit;
and
WHEREAS, escrow is not expected to close before the Town's first right of
refusal expires on December 29, 1993; and
WHEREAS, the owner has agreed to extend the Town's first right of refusal
to March 31, 1993, in exchange for reimbursement of mortgage and homeowners fees not
to exceed $1,600
NOW, THEREFORE, THE TOWN COUNCIL OF THE TOWN OF LOS
GATOS DOES HEREBY RESOLVE AS FOLLOWS: that the Mayor is authorized to sign
a deed restriction amendment extending the Town's first right of refusal to purchase a BMP
Housing unit.
CSD08:a:\RESOS\CS120693.174 1
PASSED AND ADOPTED at a regular meeting of the Town Council of the
Town of Los Gatos, California, held on the 6th day of December, 1993, by the following
vote:
COUNCIL MEMBERS:
AYES: Joanne Benjamin, Steven Blanton, Linda Lubeck, Patrick O'Laughlin,
Mayor Randy Attaway
NAYS: None.
ABSENT: None.
ABSTAIN: None.
SIGNED:
ATTEST:
/s/ Randy Attaway
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
/s/ Marian V. Cosgrove
CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
CSDO8:a:\RESOS\CS120693.174 2
December 6, 1993
Los Gatos, California
BELOW MARKET PRICE UNIT/DEED RESTRICTION AMEND/RESOLUTION 1993-174 (17.19)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council adopt Resolution 1993-
174 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE MAYOR
TO SIGN A DEED RESTRICTION AMENDMENT EXTENDING THE TOWN'S FIRST RIGHT
OF REFUSAL TO PURCHASE A BELOW MARKET PRICE UNIT. Carried unanimously.
LOS GATOS CREEK TRAIL/COUNTY AGREEMENT/RESOLUTION 1993-175 (18.26)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council adopt Resolution 1993-
175 entitled, RESOLUTION OF THE TOWN OF LOS GATOS AUTHORIZING THE TOWN
MANAGER TO EXECUTE AN AGREEMENT WITH COUNTY OF SANTA CLARA PARKS
DEPARTMENT TO RECEIVE $152.000 FOR LOS GATOS CREEK TRAIL. Carried
unanimously.
LOS GATOS-SARATOGA ROAD/ROAD NAME CHANGE FROM SARATOGA AVE
RESOLUTION 1993-176 (19.01)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council adopt Resolution 1993-
176 entitled, RESOLUTION OF THE TOWN OF LOS GATOS TO CHANGE THE NAME OF
SARATOGA AVENUE TO LOS GATOS-SARATOGA ROAD. Carried unanimously.
NASA AMES RESEARCH CENTER/WIND TUNNELS/RESOLUTION 1993-177 (20.17)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council adopt Resolution 1993-
177 entitled, RESOLUTION OF THE TOWN OF LOS GATOS SUPPORTING NASA AMES
RESEARCH CENTER AS THE LOCATION FOR PLANNED NEW NASA WIND TUNNELS.
Carried unanimously.
PARKING COMMISSION/COMMENDATION/FRANKHOWELL/RESOLUTION 1993-178(21.20)
Motion by Mrs. Benjamin, seconded by Mr. O'Laughlin, that Council adopt Resolution 1993-
178 entitled, RESOLUTION OF THE TOWN OF LOS GATOS COMMENDING MR. FRANK
HOWELL FOR HIS SERVICES ON THE PARKING COMMISSION. Carried unanimously.
VERBAL COMMUNICATIONS:
Homeless Issues
John Hernandez, Homeless in Los Gatos, mentioned an editorial section of the San Jose
Mercury News of December 3, 1993 commenting on the homeless in Los Gatos, asked for
concern and consideration from the Town and volunteered to help with the situation.
Message Therapy
Al Perry, 64 Mullen Ave, Hands on 4 Health, addressed Zoning Ord. 29.10.020, asked for time
and thought to be given to this profession and requested the ordinance be modified, he especially
addressed language in code and need for portions to be updated to include therapeutic massage.
Motion by Mrs. Benjamin, seconded by Mr. Blanton, that staff work out more appropriate
language for the present ordinance. Carried unanimously.
Larry Petulla, 15277 Via Pinto, spoke in opposition to major changes in ordinance and
volunteered to be on committee to discuss possible modifications.
TC:D5:MM120693
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