4. Discussion Of Vista Diablo Mobile Home Park: ADDRESS ISSUES RAISED BY RESIDENTS INCLUDING PROPOSED CONVERSION TO AN ALL-AGE/FAMILY PARK AND RENTAL INCREASES #802-01 Mayor Freitas stated he has put this item on the agenda at the request of the Vista Diablo Homeowners Association. Lola Buck representing the Vista Diablo Mobilehome Park residents requested the City Council’s assistance in initiating rent control for mobile home parks, rolling back the rents to reasonable amounts and stop the conversion from senior to family park. She expressed concern regarding no disclosure of the conversion to residents and the terms of the lease agreements. In addition, she noted the owners have not clarified the process used for owners unable to pay the rent. ANTIOCH CITY COUNCIL ANTIOCH DEVELOPMENT AGENCY REGULAR MEETING October 24, 2006 Page 5 of 12 Allen Ives, Executive Vice President of the Delta Board of Realtors and Vice President of the Vista Diablo Mobilehome Park, gave a brief history of the rent subsidy agreement and reviewed the current rent agreement process. He requested the City Council develop a rent control ordinance, stop the conversion of the park and roll back the rents to a reasonable amount. In response to Mayor Freitas, Mr. Ives clarified the lease agreements are from 10-20 years with a minimum increase of 6% per year. Abe Arrigotti president of Sierra Corporate Management representing the ownership of Diablo Vista Mobile Home Park stated they believe rent control and vacancy control are not necessary. He discussed their intent and statutory requirements to convert from a senior to family park and noted at this time they have decided to table the issue. He clarified rent increases are annual and range from a blended CPI to 6%. He availed himself to the city for future discussions of these issues. In response to Mayor Freitas, Mr. Arrigotti stated they are opposed to giving up their property rights through zoning or a conditional use permit and suggested the possibility of a memorandum of understanding to memorialize tabling of the conversion. He added he feels this issue can be resolved quickly through future discussions with the city. Mayor Freitas stated he is willing to support rent control if necessary and voiced his support for a ten-year moratorium in which no discussion could take place regarding the conversion of the park to an all age facility. He noted that after the 10-year period changes could take place under a conditional use permit process. City Attorney Nerland stated the city could draft an agreement that is recorded on the property or require a conditional use permit for conversion. Mr. Arrigotti stated he would have to discuss the moratorium with the partnership. Councilmember Simonsen suggested the possibility of the property owner bringing in a proposal for additional plots in exchange for changing the zoning of the property to senior housing. He encouraged Mr. Arrigotti to meet with the residents to discuss upgrading of the community room and suggested lowering the rents to at least the amount equal to the water, sewer and garbage rates. In response to Councilmember Kalinowski, Mr. Arrigotti clarified that all fees homeowners are responsible for are fully disclosed at the time of move in. He noted rents are market driven with a direct nexus between the price of the home and rent. Councilmember Kalinowski voiced concern regarding conversion of the park to a family facility as well as excessive rents and rate increases. He stated he would be willing to consider the city purchasing the park from the property owners and noted he would also support a 10 year moratorium with a sunset followed by a requirement for a conditional use permit to pursue the conversion. ANTIOCH CITY COUNCIL ANTIOCH DEVELOPMENT AGENCY REGULAR MEETING October 24, 2006 Page 6 of 12 Councilmember Conley suggested the sunset of the senior park be until the last current lease expires with future agreements disclosing that at that date the conversion may be considered. He stated he feels the property owner has an unfair business practice and leases should be rolled back to the amount at the date of expiration. He suggested future rate increases be based on half of the social security increases. He stated he would support staff review of the Concord model for the rent control ordinance. He spoke to a repossession that occurred and questioned why the owner did not receive the net equity after all expenses. Mayor Freitas reported the City Council has received letters from Freida Hargrove and Erma Casteen. Following discussion the City Council agreed to place on the November 28, 2006 agenda the following: ?? A proposal to be entered into between the city and the business to guarantee no conversion signed by November 22, 2006. If this action is unsuccessful, legal council will substitute a rent control agreement as an urgency ordinance for November 28, 2006. ?? Address the issue of rent increases ?? Upgrades for the community center ?? Address issues outlined in correspondence from Freda Hargrove and Erma Casteen Mayor Freitas suggested Mr. Arrigotti contact City Attorney Nerland, begin the process immediately, and noted he would continue to work with the Board of Directors at Vista Diablo Mobilehome Park. Mayor Freitas declared a recess at 8:33 P.M. The meeting reconvened at 8:48 P.M. with all Councilmembers present.