HomeMy WebLinkAbout2013-04-24 Correspondence_1450 Jasmine Place_Long CITY OF , -
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April 24, 2013
Todd and Sigrid Long
1450 Jasmine Place
Arroyo Grande, CA 93420
RE: 1450 Jasmine Place, Arroyo Grande, CA - Second City Response Notice
Dear Mr. and Mrs. Long:
I have been informed that you are currently in escrow regarding your property located at
1450 Jasmine Place, Arroyo Grande, California (the "Property") and would like to sell it
without its current affordable housing deed restriction.
All of my comments, capitalized terms and references in the letter are based on the
terms as set forth in the Buyer's Occupancy and Resale Agreement with Option to
Purchase between you and the City of Arroyo Grande (the "City") dated August 15,
2006 which was recorded in the San Luis Obispo County Recorder's Office on August
18, 2006 as Document No. 2006058474 (the "Agreement") (copy attached). As an initial
matter, we note that the City does not wish to exercise its option to purchase the
Property pursuant to Paragraph 12 of the Agreement.
I have also been informed that the estimated fair market value of the Property is
currently less than the Indexed Value and/or the Affordable Price of the Home.
Therefore, the City hereby waives the Marketing Period as required in Section 11.A in
the Agreement. As such, this letter shall serve as the Second City Response Notice
required by Paragraph 11.E of the Agreement.
Permission is hereby granted by the City to transfer the Property to a Market Purchaser
at an Unrestricted Price in accordance with the terms of the Agreement. Paragraph
10.0 of the Agreement provides that prior to any such sale, it is necessary to determine
the Unrestricted Fair Market Value of the Property. In order to simplify the process, the
City is willing to accept an appraisal performed in connection with the sale. If the
purchaser obtains a commercial mortgage on the Property, he or she will have to obtain
an appropriate appraisal. However, if the purchaser makes an all-cash payment or
obtains private financing, an appraisal is not automatically performed. To cover the all-
cash or private loan payment scenario, you will need to place a condition on the listing
requiring that any cash buyer or buyer obtaining private financing must obtain an MAI or
other City-approved appraisal. Upon receiving an offer, you will also need to furnish the
City with the documents/information identified in Paragraph 13 of the Agreement which
includes execution of a certification in conformance with Paragraph 13(3) prior to close
of escrow. Lastly, we note that based on the terms of the Agreement, the Excess Sale
CITY MANAGER'S OFFICE• 300 East Branch Street • Arroyo Grande, California 93420
Phone: (805) 473-5400 •Fax: (805) 473-0386 • E-mail: agcity@arroyogrande.org • Website: www.arroyogrande.org
•
Proceeds, if any, must be paid to the City before we will be able to reconvey the
Agreement and corresponding Deed of Trust to you (this is the basis for the appraisal).
If you have any questions, please contact Kelly Heffernon at (805) 473-5425 and the
City will try to help you in any way that we can under the terms of the Agreement.
Sincerely,
Steven Adams
City Manager
cc: Tim Carmel, City Attorney
Kelly Heffernon, Associate Planner
Enclosure