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HomeMy WebLinkAboutReso 1996-18310 RESOLUTION NO. 18310 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING NEGATIVE DECLARATION IS-93-07, ADOPTING ADDENDUM TO NEGATIVE DECLARATION IS-93- 07A AND ADOPTING ENVIRONMENTAL ASSESSMENT AND FINDING OF NO SIGNIFICANT IMPACT FOR TROLLEY TERRACE TOWNHOMES, APPROVING A CONVEYANCE AGREEMENT AND ESCROW INSTRUCTIONS WITH SOUTH BAY COMMUNITY SERVICES WITH RESPECT TO 1.16 ACRES OF REAL PROPERTY LOCATED AT 746 AND 750 ADA STREET FOR THE DEVELOPMENT OF AN 18 UNIT AFFORDABLE HOUSING COMPLEX, AUTHORIZING THE MAYOR TO EXECUTE DOCUMENTS AND APPROVING A FUNDING COMMITMENT OF ~509,311 FROM THE HOME PROGRAM FUNDS TO BE LOANED FOR SUCH DEVELOPMENT. WHEREAS, the City of Chula Vista ("City") is in control of funds under the HOME Investment Partnerships Program (42 U.S.C. § 12741 et seo.) ("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, South Bay Community Services ("SBCS") has been negotiating with the City to develop an 18-unit affordable housing project known as Trolley Terrace Townhomes ("Project") at 746 and 750 Ada Street ("Site") and is requesting that the City make a land loan of Three Hundred Seventy-Two Thousand Six Hundred Dollars ($372,600) for purchase of subject property and requesting a development loan of Five Hundred Nine Thousand Three Hundred Eleven Dollars ($509,311 ) for the development of an 18-unit affordable townhomes development; and WHEREAS, City staff and SBCS have negotiated certain terms for the transfer of the Site by the City to SBCS as more specifically set forth in that certain Trolley Terrace Conveyance Agreement and Escrow Instruction between the SBCS and the City ("City/SBCS Conveyance Agreement"); and 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 SBCS shall be approximately Four Hundred Fourteen Thousand Dollars ($414,000); and WHEREAS, City/Agency is negotiating with SBCS the terms of a Disposition and Development Agreement ("DDA") pursuant to which the City/Agency would agree to provide SBCS (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, SBCS intends to file an Resolution 18310 Page 2 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, SBCS proposed to fund the project through the following sources: [1 ] Bank of America Community Development I~ank Permanent Loan, [2] a City of Chula Vista Development Loan of Five Hundred Nine Thousand Three Hundred Eleven Dollars ((;509,311 ) from HOME Funds, [3] a City of Chula Vista Land Loan of Three Hundred Seventy-Two Thousand Six Hundred Dollars ($372,600), and [4] amounts derived from other financing sources including, without limitation, a Construction Loan and a sale of LIHTCs allocated by TCAC to the project; and WHEREAS, the deadline for submission of the TCAC application is May 28, 1996; and WHEREAS, various actions required by the City and Agency procedures and State law in order to permit the transfer of the Site to SBCS and the development of the Project on the Site, including but not limited to, negotiation and approval of the DDA, will not be completed by May 28, 1996; 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 proper to the application deadline; and WHEREAS, the purpose of this Resolution is to comply with such TCAC application requirements by providing SBCS with documentation evidencing: [1] the City/Agency commitment to provide partial financing for the Project from a Land Loan, HOME Program Funds, and [2] Site control by SBCS and/or a limited partnership of which SBCS is a general partner; and WHEREAS, on May 21, 1996 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 SBCS to TCAC in connection with the Project, and all other information and evidence presented; and WHEREAS, a Negative Declaration was prepared for the Trolley Terrace Townhomes Project in full compliance with CEQA which contemplated construction of 12 attached residential units and a daycare facility that would serve 100 children. The revisions to the plan include construction of 18 attached residential dwelling units at the same density as previously proposed and reduction in the size of the daycare facility to serve a maximum of 75 children. These changes would not result in any new significant environmental impacts beyond those contemplated in the previous Negative Declaration; and WHEREAS, no substantial changes with respect to the circumstances with which the project is undertaken would occur with the proposed changes. Additionally, no new mitigation measures or project alternatives exist at this time that would be considered significantly different from those analyzed in the previous Negative Declaration; and WHEREAS, staff has prepared Negative Declaration IS-93-07 and Addendure IS-93-07A with respect to the Project and the City Council has considered any and all comments received Resolution 18310 Page 3 during the public review process, and has found, in their independent judgment, that such Negative Declaration Addendum have 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 and has issued a notice of finding of no significant impact. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby find, order, determine and 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. Ad0pti(~n Of Negative Declaration Addendum to NeGative Declaration, Environmental Assessment and Finding of no SiGnificant Impact. The City adopts Negative Declaration IS-93-07, Addendum IS-93-07A thereto, and the NEPA Environmental Assessment and finding of no significant impact. 3. City Contribution to the Proiect. The City hereby: [1] approves a funding commitment of Five Hundred Nine Thousand Three Hundred Eleven Dollars (~509,311) of HOME Program Funds to be loaned to SBCS at below market rates; and [b] agrees to provide a Purchase Loan of Three Hundred Seventy-Two Thousand Six Hundred Dollars (~372,600) to acquire the Site for the development of the Project on the terms and conditions set forth in the City/SBCS Conveyance Agreement for the development of the Project. 4. Aooroval of Citv/SBCS Conveyance Aoreement. The City: [a] approves the City/SBCS Conveyance 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 Number C096-64. 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. Resolution 18310 Page 4 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 App ved as/~for y ~,~ Chris Salomone oogaard Community Development Director City Attorney Resolution 18310 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 21st day of May, 1996, by the following vote: AYES: Councilmembers: Alevy, Moot, Padilia, Rindone Horton NAYES: Councilmembers: None ABSENT: Councilmembers: None ABSTAIN: Councilmembers: None Shirley Horton, Mayor ATTEST: 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. 18310 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 21st day of May, 1996. Executed this 21st day of May, 1996. Beverly Af. Authelet, City Clerk