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HomeMy WebLinkAboutReso 2001-165 RESOLUTION NO. 2001-165 (AGENCY RESOLUTION NO, 1730) RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING FINANCIAL ASSISTANCE, SUBJECT TO FUTURE APPROPRIATION, IN THE FORM OF A RESIDUAL RECEIPTS LOAN FROM THE LOW AND MODERATE-INCOME HOUSING FUND IN AN AMOUNT NOT-TO-EXCEED $4,400,000 AND A TEN YEAR DEFERRAL OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE, WAIVER OF THE RESIDENTIAL CONSTRUCTION FEE, AND WAIVER OF THE PARK FEE TO SOUTH BAY COMMUNITY VILLAS, L.P. FOR THE DEVELOPMENT OF THE PROPOSED 271 UNIT HERITAGE TOWN CENTER WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Redevelopment Agency of the City of Chula Vista (the "Agency") to expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of increasing, improving and preserving the community's supply of low and moderate-income housing available at affordable housing cost to persons and families of low and moderate-income, lower-income, and very-low-income; and WHEREAS, pursuant to applicable law the Agency has established a Low and Moderate Income Housing Fund (the "Housing Fund"); and WHEREAS, pursuant to Health and Safety Code Section 33334.2(e), in carrying out its affordable housing activities, the Agency is authorized to provide subsidies to or for the benefit of very low income and lower income households, or persons and families of low or moderate-income, to the extent those households cannot obtain housing at affordable costs on the open market, and to provide financial assistance for the construction and rehabilitation of housing which will be made available at an affordable housing cost to such persons; and WHEREAS, pursuant to Health and Safety Code Section 33413(b), the Agency is required to ensure that at least 15 percent of all new and substantially rehabilitated dwelling units developed within a project area under the jurisdiction of the Agency by private or public entities or persons other than the Agency shall be available at affordable housing cost to persons and families of low or moderate income; and WHEREAS, South Bay Community Villas, L.P. ("Developer") proposes to construct a mixed use project of 30,000 square feet of commercial retail and 91 senior apartment units and a 180 unit multifamily rental development, with 30 units affordable to very low households at 50 percent of the Area Median Income (AMI), 102 units affordable to low households at 60 percent of the Area Median Income (AMI) and 149 units affordable to moderate-income households at or below 120 percent of AMI, within the Otay Ranch Master Planned Community ("Project"); and WHEREAS, Developer is applying for an allocation of Multifamily Housing Revenue Bonds from the California Debt Limit Allocation Committee (CDLAC); and Resolution 2001 - 165 Page 2 WHEREAS, Developer is applying for four percent (4%) tax credits from the Tax Credit Allocation Committee (TCAC); and WHEREAS, additional financing is necessary in order to make the residential use of the Project feasible; and WHEREAS, the Developer requires assistance to reduce the development costs for the construction of the residential units in order to make the Project feasible; and WHEREAS, the provision of affordable housing units like the Project is consistent with and called for by the City's General Plan Housing Element, Consolidated Plan, and Califomia Health and Safety Code; and WHEREAS, the Agency wishes to provide Developer with a development loan of four million four hundred-six thousand eight hundred dollars ($4,400,000) to assist with the financing gap for the construction of the residential units of the Project; and WHEREAS, the City of Chula Vista (the "City") wishes to waive the applicable Public Facilities Development Impact Fee (PDIF) ($709,478), Residential Construction Tax ($73,075), Reserve Fund Fee ($33,604) and the Park Fee ($355,466 for land and improvements) to assist in reducing the development costs for the construction of the residential units of the Project; and WHEREAS, the Agency's provision of funds to the residential use of the Project will directly improve the City's supply of very-low and moderate-income housing; and WHEREAS, in accordance with Califomia Health and Safety Code Section 33334.2 (g), staff is recommending that the Agency find and determine that even though the Project is to be located outside the City's redevelopment project areas, those areas will benefit through the creation of jobs in the project area and elsewhere in the City by providing housing for persons who work within the City's redevelopment project areas, and through the policies served by dispersing affordable housing throughout the jurisdiction rather than clustering it all in one area; and WHEREAS, the Agency has adopted an Implementation Plan pursuant to Health and Safety Code Section 33490, which sets forth the objective of providing housing to satisfy the needs and desires of various age, income and ethnic groups of the community, and which specifically provides for the construction of new affordable rental housing units through Agency assistance; and WHEREAS, the residential use of the Project furthers the goals of the Agency set forth in the Implementation Plan as it will facilitate the creation of affordable housing which will serve the residents of the neighborhood and the City; and WHEREAS, the City's Housing Advisory Commission did, on the 7th day of February, 2001, hold a public meeting to consider said request for financial assistance; and WHEREAS, the Housing Advisory Commission, upon hearing and considering all testimony, if any, of all persons desiring to be heard, and considering all factors relating to the Resolution 2001 - 165 Page 3 request for financial assistance, has recommended to the Redevelopment Agency that the appropriation be approved because the Commission believes that the Agency's financial participation in the development of the Project will be a sound investment based upon Developer's ability to effectively serve the City's housing needs and priorities as expressed in the Housing Element and the Consolidated Plan and the cost effectiveness of the Agency's financial assistance based upon the leveraging of such resources; and WHEREAS, in accordance with the requirements of CEQA, the Environmental Review Coordinator has determined that the proposed project has had adequate prior review and is in compliance with the previously certified environmental documents for the Otay Ranch Sectional Planning Area (SPA) One (EIR-97-03), and no further action by the City Council is necessary. NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby conditionally approve a residual receipts loan subject to future appropriation in an amount not-to-exceed $4,400,000 from the Agency's Low and Moderate-Income Housing Set-Aside fund to Developer for the construction of the residential units of the Project subject to the Agency's approvals of an affordable housing and loan agreement which shall include, at a minimum, the following terms and conditions: 1. Funds shall be used only for those costs directly related to the residential units of the Project. 2. The loan repayment will be secured by a Deed of Trust and Promissory note for the property on behalf of the Redevelopment Agency of the City of Chula Vista and recorded against the Project property. 3. The term of the loan shall be fifty-five (55) years. 4. The outstanding balance shall accrue with simple interest at 3 percent per annum. 5. Payment of principal and interest on the Agency loan shall be made, on an annual basis, out of a fund equal to fifty percent (50%) of the "Residual Receipts," rental income from the Project minus debt service on the bonds, payment of the deferred developer fee, and reasonable operating expenses. 6. Developer will be required to operate the Project consistent with the Regulatory Agreement required by the Project's tax credit financing, the covenants imposed by the Agreement, and any other project requirements. 7. Developer shall enter into a loan agreement with the Agency consistent with the terms set forth above and with such other terms as shall be required or approved by the Agency Attorney. 8. This conditional approval remains subject to final approval by the Agency in its sole discretion. BE IT FURTHER RESOLVED the City Council of the City of Chula Vista does hereby conditionally approve a ten year deferral of the payment of the applicable Public Facilities Resolution 2001 - 165 Page 4 Development Impact Fee in the amount of $709,478, a waiver of the Residential Construction Tax in the amount of $73,075 and a waiver of the Park Fee in the amount of $355,466 to assist with reducing the development costs for the construction of the residential units of the Project subject to satisfaction of the following condition: 1. Developer shall dedicate an additional 1.8 acres of land for a future community park. BE IT FURTHER RESOLVED in accordance with Califomia Health and Safety Code Section 33334.2 (g), the Agency finds and determines that even though the Project is to be located outside the City's redevelopment project areas, those areas will benefit through the creation of jobs in the project area and elsewhere in the City by providing housing for persons who work within the City's redevelopment project areas, and through the policies served by dispersing affordable housing throughout the jurisdiction rather than clustering it all in one area. Presented by Approved as to form by Chris Salomone Jo aheny Community Development Director ey _ Resolution 2001 - 165 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, Califomia, this 29th day of May, 2001, by the following vote: AYES: Councilmembers: Davis, Padilia, Rindone, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None ATTEST: Shirley Hortj~a~yor Susan Bigelow, City ~Zrk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2001-165 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 29th day of May, 2001. Executed this 29th day of May, 2001.