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Item #11 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON Redevelopment Agency Board Meeting of June 15, 2004 TO: Honorable Chairperson and Boardmembers FROM: Candace E. Cassel, Redevelopment ManagLaOpen SUBJECT: Consideration and Approval of Establishing Listing Offer, Sales Price and Commission Structure for Three Agency Owned Homes and Lots in Rancho Mediterrania. DATE: May 19, 2004 BACKGROUND In 1993, the Redevelopment Agency acquired Rancho Mediterrania as part of a litigation settlement. The Agency's intent was to sell off each individual lot to low to moderate income households for the purposes of maintaining and preserving low to moderate income housing units within the City. The project was financed by issuing 1993 Notes and Assessment District 99-01 bonds. It was anticipated that the Agency would sell all of the project's 259 lots within a year. However, the sales program stalled. The 1 -year 1993 bonds were refunded for 1 -year in 1994 and again in 1995. Three year 1996 bonds were issued to pay off the 1995 bonds. By 1999, the Agency had sold only 28 of the 259 lots. In February 1999, the Agency reaffirmed its decision to continue with the lot sales program and at that time adopted minimum standards for the "finished lot" that it would sell the lots as: the assessment district bond would be paid off (approximately $12,000/lot); the garage would be fully rehabilitated, including roofing, minimal electrical construction and a metal roll -up garage door with an automatic garage door opener; and front yard landscaping with automatic irrigation was be installed or rehabilitated. The 1996 Notes were due on October 12, 1999 and were repaid from a combination of moneys, including $1,000,000 from the proceeds of the 1998 Tax Allocation Bonds for Santa Ana River and $2,000,000 from the proceeds of the 1999 Tax Allocation Bonds for the Mount Vernon Corridor Redevelopment Project. Should the Agency's interest in the park fall below 80 lots, monies need to be repaid to the bond proceeds funds for the proper use of the tax allocation bond proceeds. Within the last 18 months, the Agency has been successful in demolishing 33 dilapidated vacant homes and selling its entire vacant lot inventory within the park. The last thirteen are scheduled to close escrow prior to July 15, 2004, excluding the two lots the Agency has been attempting to acquire through the County's Chapter 8 Tax Sale since 2002. As of the date of this report, there remain only 61 Agency rental lots. The Agency owns an additional five home and lot units, one of which is occupied by a Colton Police Detective as part of an Officer Next Door program implemented by the Agency and the Police Department in 1999. One home and lot unit is occupied by a tenant. R.\ShareRDA\Meetings\2004 Meetings\June 15, 2004\Staff Report RMed Open Listing Oflcring.doc