Res H-18-02RESOLUTION NO. H-18-02
A RESOLUTION OF THE POWAY HOUSING AUTHORITY,
APPROVING AN EXTENSION TO THE EXCLUSIVE
NEGOTIATION AGREEMENT WITH MERIDIAN
DEVELOPMENT, LLC AND SUDBERRY PROPERTIES, INC.
FOR HOUSING AUTHORITY PARCELS BEARING
ASSESSOR'S PARCEL NUMBERS 317-472-01 AND 317-472-06
WHEREAS, the Poway Housing Authority (the "Authority") is the fee title owner of two (2)
parcels comprising approximately 2.91 acres of real property generally located at 13021 and
13031 Poway Road and bearing Assessor's Parcel Numbers 317-472-01 and 317-472-06 (the
"Housing Authority Parcels"), in the City of Poway, County of San Diego, State of California;
WHEREAS, the City of Poway (the "City") is the fee title owner of six (6) parcel comprising
approximately 4.93 acres of real property generally located at 13100, 13029'/2, 13035, 13053 and
13123 Poway Road and bearing Assessor's Parcel Numbers 317-101-06; 317-472-12; 317-472-
18; 317-472-23; 317-472-24; 317-472-25 Poway Road and bearing Assessor's Parcel Number
317-101-06 (the "City Parcels"), in the City of Poway, County of San Diego, State of California;
WHEREAS, the Housing Authority Parcels and the City Parcel are collectively referred to
as the Properties, and are identified on the Vicinity Map, which is included as Exhibit A to this
Resolution.
WHEREAS, in April 2017, the City released a Request for Qualifications/Proposals
(RFQ/P) to identify a developer to acquire and develop City, Housing Authority (HA), and/or
Successor Agency to the Poway Redevelopment Agency ("Successor Agency') owned properties
within the Town Center area;
WHEREAS, after reviewing the proposals and interviewing the four firms that submitted
proposals, and evaluating term sheets from the top two firms, staff determined that the
development team of comprised of Meridian Development, LLC and Sudberry Properties, Inc.
(collectively, the "Developers") was the most qualified respondent based upon their collective
residential and commercial development experience in the San Diego regional market;
WHEREAS, on December 19, 2017, the City and the Authority approved an Exclusive
Negotiation Agreement (the "ENA") between the City and the Authority (collectively, the "Owners")
and the Developers (collectively, the "Parties");
WHEREAS, the ENA will allow for the negotiation of a Disposition and Development
Agreement ("DDA") between the Owners and the Developers which will enable the City to ensure
a unified development on the Property that is consistent with the goals and objectives of the
recently adopted Poway Road Specific Plan;
WHEREAS, the Parties contemplated that this ENA could include any other properties
acquired by the City, including properties owned by the Successor Agency, located adjacent to
the City and Housing Authority Parcels, and specifically parcels bearing Assessor's Parcel
Numbers 317-472-12, 317-472-18, 317-472-23, 317-472-24 and 317-472-25 comprising
approximately 3.39 acres (the "Successor Agency Parcels");
Resolution No. H-18-02
Page 2
WHEREAS, the City acquired the Successor Agency Parcels during the term of this ENA
and the Successor Agency Parcels are included in the definitions of "City Parcel" and "Properties,"
herein;
WHEREAS, the Owners are interested in selling the Properties to the Developers for the
purpose of developing a for -sale and/or for rent residential housing project with secondary retail
and office uses (the "Project");
WHEREAS, the Project's intended development is part of the City's efforts to revitalize
dormant properties along Poway Road and maintain a vibrant and expanding group of businesses
in the City to promote economic development and employment opportunities for its residents;
WHEREAS, the elimination in redevelopment law and the allocation of property tax
revenues between municipalities and the State of California require the public and private sectors
to consider new and innovative structures to promote redevelopment in order to realize significant
public benefits in the form of increased revenues and employment opportunities, and to continue
in efforts to prevent or eliminate blight in the community;
WHEREAS, the Developers have attempted to acquire additional privately -owned
properties to include within the Project;
WHEREAS, the Parties have agreed to delay the negotiations of the DDA until such time
as the Developers have completed negotiations with the private property owners;
WHEREAS, the Developers have completed negotiations with private property owners;
WHEREAS, the Parties seek to extend the ENA by a period of 125 days to allow for the
completion of the DDA negotiations; and
WHEREAS, the Parties also seek to give the City Manager authority to extend the initial
125 -day period by up to 90 days.
NOW, THEREFORE, BE IT RESOLVED by the Poway Housing Authority as follows:
Section 1: The foregoing recitals are true and correct and are a substantive part of
this Resolution.
Section 2: The Board of the Poway Housing Authority has received and heard all oral
and written objections to the proposed ENA, and to other matters pertaining to this negotiation,
and (finding such objections to be without merit) all such oral and written objections are hereby
rejected.
Section 3: The Board of Poway Housing Authority hereby approves the execution of
an Exclusive Negotiation Agreement with Meridian Development, LLC and Sudberry Properties,
Inc. for the conveyance of the City Parcels to the Developer, substantially in the form as presented
at this meeting, with such changes as may be approved by the City Manager and the City
Attorney.
Section 4: The Board Poway Housing Authority hereby authorizes and directs the
Executive Director of the Housing Authority or designee to (i) take all actions and to execute any
Resolution No. H-18-02
Page 3
and all documents, instruments, and agreements necessary or desirable on behalf of the Housing
Authority, as approved by the Executive Director and Housing Authority legal counsel, including,
without limitation, extensions of the Exclusive Negotiation Agreement and including the Successor
Agency Parcels as a part of the ENA, and to effectuate all other actions approved by this
Resolution, including, without limitation, approving changes, implementations, or revisions to
documents, instruments, and agreements as determined necessary by the Executive Director or
designee and approved by Housing Authority legal counsel, and (ii) administer the Housing
Authority's obligations, responsibilities, and duties to be performed pursuant to this Resolution
and all documents, instruments, and agreements required by and for the Exclusive Negotiation
Agreement for the Properties.
Section 5: If any provision of this Resolution or the application of any such provision
to any person or circumstance is held invalid, then such invalidity shall not affect other provisions
or applications of this Resolution that can be given effect without the invalid provision or
application, and to this end the provisions of this Resolution are severable. The Poway Housing
Authority Board declares that it would have adopted this Resolution irrespective of the invalidity
of any particular portion of this Resolution.
Section 6: This Resolution shall take effect upon the date of its adoption.
PASSED, ADOPTED AND APPROVED by the Poway Housing Authority at a regular
meeting this 18th day of September 2018.
Steve Vaus, Chairman
Poway Housing Authority
ATTEST:
an y N ufeld, "MC, Secretary
Poway Housing Authority
Resolution No. H-18-02
Page 4
STATE OF CALIFORNIA )
) SS
COUNTY OF SAN DIEGO )
I, Nancy Neufeld, Secretary of the Poway Housing Authority, do hereby certify under
penalty of perjury that the foregoing Resolution No. H-18-02 was duly adopted by the
Commissioners' at a meeting of said Housing Authority held on the 18th day of September 2018
and that it was so adopted by the following vote:
AYES: LEONARD, FRANK, GROSCH, MULLIN, VAUS
NOES: NONE
ABSENT: NONE
DISQUALIFIED: NONE
ilYY�i,���(�&
NanulteCMC, Secretary
Poway Housing Authority
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