TITLE
Recommendation to acknowledge and consent to an Assignment and Assumption of the Purchase and Sale Agreement and Escrow Instructions, dated March 10, 2022, for the disposition of City-owned exempt surplus property located at 854 East 7th Street, commonly known as the former Long Beach Armory for an affordable housing development, from Armory Arts Collective, LP (Assignor), to Linc Armory, LP (Assignee); and
Consent to a change in population type for the affordable housing development from general affordable housing to affordable housing restricted to senior adult households. (District 1)
DISCUSSION
On December 7, 2021, the City Council authorized a Purchase and Sale Agreement, dated March 10, 2022 (Purchase and Sale Agreement), with Armory Arts Collective, LP (Buyer/Developer/Assignor) for the development and adaptive reuse of City-owned exempt surplus property located at 854 East 7th Street, commonly known as the former Long Beach Armory (Subject Property) (Attachment) for the development of a 64-unit affordable housing project (Proposed Project).
In March 2023, the Buyer/Developer/Assignor notified the City that the Purchase and Sale Agreement would be assigned to Linc Armory, a California limited partnership (Assignee), to facilitate a change in developers for the Proposed Project. In addition to the assignment, a request was made to allow the Assignee to proceed with a change in the population type for the Proposed Project to increase competitiveness in a subsequent round of funding for tax credit financing. Therefore, the population for the Proposed Project would change from a general affordable project without any age restrictions to an affordable project restricted to senior adult households. To that end, an Assignment and Assumption of the Purchase and Sale Agreement and Escrow Instructions is required to be executed by the parties to memorialize the assignment and allow the Assignee to apply for tax credit financing funding targeting an affordable senior adult population type.
This matter was reviewed by Principal Deputy City Attorney Richard F. Anthony on March 24, 2023, and by Budget Operations and Development Officer Rhutu Amin Gharib on March 30, 2023.
LEVINE ACT
This item is subject to the Levine Act. The Mayor, Councilmembers, and Commissioners who have received a contribution of more than $250 within 12 months prior from a party, participant, or their representatives involved in this proceeding may do either of the following: (1) disclose the contribution on the record and recuse themselves from this proceeding; OR (2) return the portion of the contribution that exceeds $250 within 30 days from the time the elected official knew or should have known about the contribution and participate in the proceeding.
All parties, participants, and their representatives must disclose on the record of this proceeding any contribution of more than $250 made to the Mayor or any Councilmembers within 12 months prior to the date of the proceeding. The Mayor, Councilmembers, and Commissioners are prohibited from accepting, soliciting, or directing a contribution of more than $250 from a party, participant, or their representatives during a proceeding and for 12 months following the date a final decision is rendered.
TIMING CONSIDERATIONS
City Council action is requested on April 18, 2023, to acknowledge and consent to an Assignment and Assumption of the Purchase and Sale Agreement, thus allowing Assignee to apply for tax credit financing with the required amount of site control.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. There is no local job impact associated with this recommendation.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
BO MARTINEZ
DIRECTOR OF ECONOMIC DEVELOPMENT
APPROVED:
THOMAS B. MODICA
CITY MANAGER