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HomeMy WebLinkAboutReso 1995-17828 RESOLUTION NO. 17828 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING ADDENDUM EIR 89-10A FOR RANCHO DEL REY SPA III, APPROVING A LAND DONATION AND FUNDING COMMITMENT FROM HOME PROGRAM FUNDS (~160,000) FOR AN AFFORDABLE HOUSING PROJECT PROPOSED TO BE DEVELOPED IN RANCHO DEL REY SPA III, AND APPROVING A ASSIGNMENT AGREEMENT WITH ORANGE HOUSING DEVELOPMENT CORPORATION (OR AN AFFILIATE THEREOF) IN CONNECTION WITH SAME (ALSO SEE RDA RESOLUTION NO. 1447) WHEREAS, the City of Chula Vista ("City") is in control of funds under the Home Investment Partnerships Program (42 U.S.C. § 12741 et seq.) ("HOME Program funds"), which program is designed to provide assistance to affordable housing projects; and, WHEREAS, the Redevelopment Agency of the City of Chula Vista ("Agency") is required to set-aside and oversee disposition of certain tax increment funds in a Low and Moderate Income Housing Fund ("Low/Mod Fund") for the purpose of encouraging the development of low and moderate income affordable housing within the City; and, WHEREAS, pursuant to that certain Agreement Concerning Rancho Del Rey and Low- Moderate Income Housing, dated August 7, 1990, Rancho Del Rey Investors, L.P., a California limited partnership ("RDR"), as successor in interest to Rancho Del Rey Partnership, a California general partnership, is obligated to provide 23 low income housing units to the City in connection with its development of SPA III of the Rancho Del Rey master planned community (the "SPA III Affordable Housing Obligation"); and, WHEREAS, RDR has been negotiating with the City, and the City is concurrently approving herewith, an agreement (the "SPA III Affordable Housing Agreement") which sets forth the terms and conditions pursuant to which RDR may fulfill its SPA III Affordable Housing Obligation; and, WHEREAS, one of the methods for RDR satisfying its SPA III Affordable Housing Obligation contemplated by the SPA Ill Affordable Housing Agreement is the donation, subject to certain terms and conditions, by RDR to the City of certain real property within SPA III, owned by RDR, comprised of an approximately 2.97 acre parcel, as more particularly described in Exhibit A attached hereto ("Site"), and the development of the Site by third parties into an affordable housing project; and, WHEREAS, the terms for the transfer of the Site by RDR to the City are more specifically set forth in that certain Rancho Del Rey Spa III Conveyance Agreement and Escrow Instructions between RDR and the City (the "RDR/City Transfer Agreement") being approved by the City concurrently herewith; and, Resolution No. 17828 Page 2 WHEREAS, a market analysis of the Site has indicated that the fair market value of the Site at the time of its proposed transfer to the City shall be approximately Nine Hundred Sixty Thousand Dollars (~960,000) or more; and, WHEREAS, Orange Housing Development Corporation, a California public benefit corporation, South Bay Community Services, Inc., a California public benefit corporation, and Sares-Regis Group, a California general partnership (collectively, "Developer") are currently negotiating the terms for the formation of a Joint Venture, the sole purpose of which is to facilitate the acquisition, financing and development of the Site into a 40 unit multi-family rental housing complex with units restricted for persons and families of low income ("the Project"); and, WHEREAS, City/Agency staff is negotiating with Developer the terms of a Disposition and Development Agreement ("DDA") pursuant to which the City/Agency would agree to provide the Developer (or an assignee thereof approved by the City/Agency) with financial and other assistance in order to facilitate the development of the Project; and, WHEREAS, to further assist in funding the cost of the Project, Developer intends to file an application for Low Income Housing Tax Credits ("LIHTCs") with the California Tax Credit Allocation Committee ("TCAC") under §42 of the Internal Revenue Code; and, WHEREAS, Developer proposes to fund the Project through the following sources: (1) RDR's grant of the Site to the City pursuant to the RDR/City Transfer Agreement (2) the City's donation of the Site to the Developer (or a City-approved non-profit assignee thereof); (3) a below market Agency loan of Low/Mod Fund monies in the amount of Three Hundred Seventy Eight Thousand Two Hundred Eighty Dollars ($378,280); (4) a grant from the City from HOME Program funds in the amount of One Hundred Sixty Thousand Dollars ($160,000); and (5) amounts derived from other financing sources, including, without limitation, a construction loan, a permanent loan, and a sale of LIHTCs allocated by TCAC to the Project; and, WHEREAS, the deadline for submission of the TCAC application is March 10, 1995; and, WHEREAS, various actions required by the Agency and City procedure and State law in order to permit the transfer of the Site to Developer and the development of the Project on the Site, including but not limited to, negotiation and approval after required public notice and public hearing of the DDA, will not be completed by March 10, 1995; and, WHEREAS, among the requirements of the TCAC application are (1) evidence of financing commitment by any local public agency, including the amounts and sources thereof; and (2) evidence of site control or its equivalent where it is impossible to complete the transfer of the site prior to the application deadline; and, WHEREAS, the purpose of this Resolution is to comply with such TCAC application requirements by providing Developer with documentation evidencing (1) the City/Agency commitment to provide partial financing for the Project from a land donation, HOME Program Resolution No. 17828 Page 3 funds and the Low/Mod Fund; and (2) site control by approving an assignment agreement between City and an affiliate of Developer (the "City/Developer Assignment Agreement") which would assign City's rights under the RDR/City Transfer Agreement; and, WHEREAS, on March 7, 1995, the City Council and the Agency held a public meeting on the matter of this Resolution at which meeting the City Council considered the staff report, the proposed form of TCAC application to be submitted by the Developer to TCAC in connection with the Project, and all other information and evidence presented; and, WHEREAS, an Environmental Impact Report, EIR 89-10 has been certified for development of the Rancho Del Rey SPA III property, which includes the Site; and, WHEREAS, the development of the Site into the Project requires a density transfer as its sole land use action, a non-discretionary action specifically 3rescribed in the SPA plan conditions which govern the Site; and, WHEREAS, the Project represents a minor change in the project described in EIR 89-10 and, as such, requires the preparation and adoption of an Addendure EIR in accordance with the Environmental Review Procedures of the City and the California Environmental Quality Act (CEQA); and, WHEREAS, staff has prepared Addendum EIR 89-10A with respect to the Project and the City Council has found, in their independent judgement, that such Addendum has been prepared in full compliance with CEQA and the Guidelines promulgated thereunder; and, WHEREAS, the proposed use of HOME Program Funds requires compliance with the National Environmental Policy Act (NEPA) and staff has commenced the compliance process by filing required notices and preparing the required Environmental Assessment document. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve as follows: 1. Recitals True and Correct. The City finds and determines the recitals set forth above are true and correct to the best of its knowledge. 2. Adoption of Addendure to EIR. The City adopts Addendum EIR 89-A as an Addendum to EIR 89-10. 3. City Contribution to the Project. The City hereby (a) appropriates One Hundred Sixty Thousand Dollars (~160,000) of HOME Program funds to be granted for the development of Project; and (b) agrees to donate the Site for the development of the Project. Resolution No. 17828 Page 4 4. ADDroyal of City/Develoeer Assiqnment Aqreement. The City (a) approves the City/Developer Assignment Agreement in substantially the form presented, with such minor modifications as may be required or approved by the City Attorney; and (b) authorizes the Mayor to execute same, the final form of such agreement to be kept on file with the office of the City Clerk as Document No. CO95- 019. 5. Conditions to City Commitment. The City commitments set forth above are each conditioned upon and subject to (a) the subsequent approval by the City Council of the DDA and related loan documents in accordance with applicable laws and existing City policies; and (b) TCAC's approval of the tax credit application which was presented to the City in connection herewith, and its allocation to the Project of the LIHTC requested thereby. 6. Directions to Staff. City staff is hereby authorized and directed to take any appropriate action consistent with the purposes of this Resolution including negotiation of a final DDA and presentation thereof to the City for its approval. Presented by Approved as to form by Chris Salomone ~y Community Development Director 'T .............................. Resolution No. 17828 Page 5 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 7th day of March, 1995, by the following vote: YES: Councilmembers: Fox, Padilia, Rindone, Horton NOES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: Moot Shirle,~orton, Mayor ATTEST: B~ Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 17828 was duly passed, approved, and adopted by the City Council at a Joint City Council/Redevelopment Agency meeting held on the 7th day of March 1995. Executed this 7th day of March, 1995.