Share to Facebook Share to Twitter Bookmark and Share
File #: 18-0786 CRA    Version: 1 Name:
Type: CRA Board Action Status: Agenda Ready
File created: 4/27/2021 In control: Community Redevelopment Agency
On agenda: 4/27/2021 Final action:
Title: PURCHASE AND SALE AGREEMENT - PULTE HOME COMPANY, LLC - CRA owned properties in the SW Neighborhood (Carver Square)
Attachments: 1. Agenda Cover Report, 2. Exhibit A - Model Information and Renderings, 3. Exhibit B - Purchase and Sale Agreement
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
No records to display.

TO:                                           CRA Board of Commissioners

FROM:                      Kim N. Phan, Legal Advisor

THROUGH:  Renée A. Jadusingh, Executive Director

DATE:                      April 27, 2021

 

Title 

PURCHASE AND SALE AGREEMENT - PULTE HOME COMPANY, LLC - CRA owned properties in the SW Neighborhood (Carver Square)

 

Body

Recommended Action:

Recommendation

Approve the Purchase and Sale Agreement with Pulte Home Company, LLC for development and disposition of CRA owned properties in the SW Neighborhood for Workforce Housing (Carver Square).

 

Body

Background:

At the January 26, 2021 CRA Board Meeting, the Board selected Pulte Home Company, LLC (Pulte) as the successful proposer for the Request for Proposal (RFP) CRA NO. 2020-01 for Development and Disposition of CRA Owned Properties in the SW Neighborhood for Workforce Housing (Carver Square) and directed Staff to enter into contract negotiations with Pulte. 

 

Since the Board Meeting, CRA Staff and Counsel have been in negotiations with Pulte and the terms from the Draft Purchase and Sale Agreement include:

 

Project Description:  Construction of twenty (20) workforce housing single family residences.  The sale price and floorplans are as follows:

 

2020

WFH1 Low Income (51% - 0% AMI)

WFH2 Moderate Income (80% - 100% AMI)

WFH 3 Moderate Income (100% - 120% AMI)

WFH4 Middle Income (120% - 140% AMI)

Sales Price

$166,110

$213,570

$261,030

$308,490

Floorplan

Single-Family/  1-Story/ Browning

Single-Family/  1-Story/ Chapman

Single Family/  2-Story/Hamden

Single Family/  2-Story/ Thompson

A/C Square Footage

1,447

1,662

1,822

2,386

Number of Units

5

5

6

4

 

 

 

 

 

Timeline

 

Carver Square-Project Schedule

Milestone

Date

Notes

Effective Date

4/27/2021

Assumes PSA is signed by the mayor at the 4/27 CRA meeting

Inspection Period (IP) Ends

6/11/2021

45 Day Inspection Period per PSA.

Closing

7/12/2021

Assumes Pulte is issued 20 building permits within 31 days of the end of IP. Actual closing date may vary, depending on fulfillment of conditions precedent to close. All dates below shall be adjusted based on when the Closing occurs.

Commencement of Residential Units 1-5

8/11/2021

30 Days after Closing per PSA.

Commencement of Residential Units 6-10

9/25/2021

75 Days after Closing per PSA.

Commencement of Residential Units 11-15

11/9/2021

120 Days after Closing per PSA.

Commencement of Residential Units 16-20

12/24/2021

165 Days after Closing per PSA.

Completion Date for all 20 Residential Units

1/18/2023

Outside date to receive CO’s on all 20 units- 555 days after Closing, subject to any Unavoidable Delay. Assumes a Closing of 7/12/2021. Actual closing date may vary, depending on fulfillment of conditions precedent to close. Completion Date shall be adjusted based on when the Closing occurs.

 

Notes:

1.                     Actual closing date may vary, depending on fulfillment of conditions precedent to close.

2.                     Once closing occurs, this schedule shall be updated to reflect new dates.

 

 

Key Points:

 

Purchase Price  (§2)

$200,000

Workforce Housing (§1.10)

20 single family residences 

Earnest Money (§1.6)

$20,000

Local Hiring (§16)

Pulte is required to hire local subcontractor(s) to perform labor that equates to a minimum of 15% of the total construction cost for the Project which is estimated to be $4,748,138.

Reversion  (§5.3)

The property including improvements erected shall, at the CRA’s election, revert to the CRA, if Pulte: 1) fails to commence construction on any or more of the units as required by the construction schedule under §5.1(b); 2) Pulte commences construction but (i) fails to diligently proceed with construction activities within previous 90 days and/or (ii) fails to complete construction and obtain certificate of occupancy within 555 calendar days after Closing.   *Timing may be subject to Unavailable Delays

Performance Bond (§5.2)

A performance bond will be issued for each home and shall serve to guarantee completion of construction of the Project for homes where Pulte commences construction. 

 

At this time, the Purchase and Sale Agreement is before the CRA Board for approval and for the CRA Chair to sign all documents for said purpose in substantially the attached form.

 

Attachments: Exhibit A - Model Information and Renderings; Exhibit B - Purchase and Sale Agreement

 

CRA Attorney Review:

The CRA Attorney has reviewed the Purchase and Sale Agreement as to form and determined it to be acceptable. 

 

Funding Source/Financial Impact:

N/A