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El Dorado Offer Summary The following are preliminary summaries of the purchase offer to the City of Palm Springs from the owner of El Dorado Palm Springs, Ltd. and the El Dorado HOA president’s memo to residents. Lot Breakdown Total lots 377 El Dorado Ltd. owned spaces 147 Rented to residents 87 Vacant spaces 60 Resident owned spaces 230 (It is unknown how many residents are low-income and non-low-income.) Notification of Rent Adjustment Non-low-income residents rent increase notices for 2010: $90 - $165 (owner has voluntarily capped at $165) Now offering 5-year lease limited to CPI increases Low-income residents remain on state rent control with CPI increases Offering to sell rented lots at 10 percent discount Purchase Offer to City List price: 147 lots at $144,000 each = $21,160,000 Offer: 147 lots at $102,000 each = $15,000,000 Cash down payment $ 4,500,000 Owner carry $10,500,000 Benefits suggested to city in offer letter City can reduce rents and control future increases City could find occupants for vacant lots, housing for low or moderate income residents and for city employees allowing them to live in city City could structure lot sales at “unusually affordable prices” Benefits indicated in El Dorado HOA President’s memo to residents City can subsidize or charge lower rents Vacant lots could be marketed to individuals at a discounted price Existing owner of 147 lots and its management company would be out of the picture City would become involved in marketing the properties and perhaps want to initiate a redevelopment strategy Also see two reports relating to the implications of mobilehome park conversions, The Gold Rush and Mobilehome Park Conversions – Are They Really Worth the Risk? available at the Info Sources Section. Additional background information is contained in the Legal/Legislative Section.
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