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HomeMy WebLinkAboutReso 1998-19295 COUNCIL RESOLUTION NO. 19295 RESOLUTION OF THE CITY COUNCIL CONDITIONALLY APPROVING THE CONVEYANCE OF 0.81 ACRE OF REAL PROPERTY LOCATED AT THE NORTHWEST CORNER OF ADA STREET AND INDUSTRIAL BOULEVARD TO SOUTH BAY COMMUNITY SERVICES FOR THE DEVELOPMENT OF AN 11 UNIT TRANSITIONAL HOUSING PROJECT FOR YOUNG ADULTS WHO HAVE COMPLETED THE COUNTY OF SAN DIEGO FOSTER CARE PROGRAM. WHEREAS, the City of Chula Vista owns the 0.81 acre parcel located at the northwest corner of Ada Street and Industrial Boulevard ("Property"); and WHEREAS, South Bay Community Services (SBCS) has proposed to develop the Property for an eleven unit transitional housing project for young adults who have completed the County of San Diego Foster Care Program and is requesting that the City make a land loan of two hundred seventy thousand dollars ($270,000) or the fair market value of the Property for purchase of the subject Property for the development of the transitional housing project; and WHEREAS, SBCS proposes to fund the project through the following various sources: [1 ] a City of Chula Vista Land Loan of two hundred seventy thousand dollars ($270,000), [2] an anticipated request for a City of Chula Vista contribution of three hundred thousand dollars ($300,000); and [3] financial assistance of eight hundred fifty thousand dollars ($850,000) from the State of California, County of San Diego and other private sources; and WHEREAS, the deadline for submission of the County of San Diego application for funding is December 15, 1998; ancl WHEREAS, various actions required to transfer the Property to SBCS and to develop the project on the Property will not be completed by December 15, 1998; and WHEREAS, the requirements of the County of San Diego and private foundation applications for funding are evidence of site controI or its equivalent where it is impossible to complete the transfer of the Property prior to the application deadline; and WHEREAS, the purpose of this Resolution is to comply with such County of San Diego and private foundation application requirements by providing SBCS with documentation evidencing site control by SBCS through the conditional approval of conveyance of the Property; and WHEREAS, the City Council, upon hearing and considering all testimony, if any, of all persons desiring to be heard, and considering all factors relating to the request for financial assistance, believes that the City's transfer of the Property to SBCS will be in the public interest based upon SBCS' 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 developing said Property based on the leveraging of the financial assistance recommended; and Resolution 19295 Page 2 WHEREAS, financial assistance for the development of the Property for transitional housing is consistent with the General Plan Housing Element and will allow for the provision of shelter and supportive services for those young adults at risk of homelessness; and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby: 1. Find and determine that the above recitations are true and correct. 2. Approve the conveyance of Property located at the northwest corner of Ada Street and Industrial Boulevard to South Bay Community Services for the purpose of developing transitional housing for those young adults who have completed the County of San Diego Foster Care Program subject to the following conditions: a. In consideration for the Property, SBCS shall pay the City $270,000 or the fair market value of the Property to be defined as the appraised value of the Property at the time of such transfer, at 3 percent simple interest per annum over a 55 year period. b. SBCS' obligation to make payments on the Land Purchase Loan and the Development Loan will be limited to an annual payment based on residual receipts (the net rental income remaining after operating expenses). c. The term of the Land Purchase Loan and the Development Loan shall be fifty* five years. Should SBCS wish to continue operation of the transitional housing on the Property beyond the term of the loan, the term of the loan may be extended by mutual agreement of the City and SBCS and as agreed upon by both the City and SBCS. d. City Council final approval of project implementation documents which shall include, at a minimum, the following terms and conditions: Insurance, indemnity performance bond, and such other terms and conditions as may be required or approved by the City Attorney to mitigate City risks. ii SBCS will be required to obtain all necessary environmental and land use review and approvals and to maintain operation of the transitional housing project consistent with the requirements for the project and the application for financial assistance. iii SBCS must secure all other funding necessary to fund this project. iv SBCS must obtain approval of a density bonus for the development of this project and execute the required regulatory agreement. v Authorize and direct staff to prepare or cause to be prepared the necessary property transfer, regulatory, and loan agreements and any associated documents necessary for the implementation of the project to be brought back for City Council consideration. Resolution 19295 Page 3 Presented by Approved as to form by Y n M. Kal~eny ~ Chris Salomone ~o Community Development Director rney Resolution 19295 Page 4 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 8,h day of December, 1998, by the following vote: AYES: Councilmembers: Davis, Moot, Padilia, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None S h 'i rley'~Hort~,MayJ~or L, ATTEST: ~Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Beverly A, Authelet, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19295 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 8th day of December, 1998. Executed this 8th day of December, 1998. ~uthelet, City Clerk