HomeMy WebLinkAboutReso 2015-085 RESOLUTI01� NO. 201�-08�
RESOLUTION OF THE CITY COUI�'CIL OF THE CITY OF
CHiTLA VISTA [1] APPROVII�G DEFERRAL OF THE
APPLICABLE PARKLAND ACQUISITION A.�rD
DE\'ELOPMEt�'T. TRAFFIC SIGI�'AL. SALT CREEK SEWER
BASII�. AI�tD SE�'ER CAPACITY FEES. AND �'AIVER OF
THE RESIDENTIAL CONSTRUCTION TA1 II�' .��'
ESTIMATED AI�40i1NT OF �1,288.�71: AND [2]
AUTHORIZII�'G THE CITY A4ANAGER TO EXECUTE FEE
DEFERRAL AGREEh4Ei�'TS Ai\'D RELA7ED SECURITY
II�TSTRUMENTS B1' AND BET��EEI�' THE CITl' OF CHliL.A
VISTA. AND A TO-BE-FORI�4ED LIMITED PAR7TTERSHIP
FOR I�4ILLENIA SENIOR AFFORDABLE APARTA4ENTS
ll'HEREAS, to facilitate and materiall�� assist the housine industry in providing adequate
and affordable shelter for all economic seements of the communit�� and to provide a balance of
housine opportunities for ��er}-lo«�-income. loH�er-income, and senior households, the Citv of
Chula Vista (�`Cit}�') has adopted Chula Vista Municipal Code (`�CVMC") Section 19.90 -
Affordable Housine Incentives consistent �i�ith Sections 6�91� and 6�9U of the Califomia
Go��ernment Code: and
�'HEREAS. Chelsea Investment Corporation, utilizing a to-be-formed limited
partnership of ��-hich Chelsea Investment Corporation will be a panner. the "Developer',
proposes to construct a 123 multifamil�� rental de��elopment, H�ith 13 units affordabie to very-
lo��-income senior households at �0 percent (�0%) of the Area Median Income (AMI) and 109
units affordable to lo�� income senior households at 60 percent (60%) of the Area Median
Income (AMI), within the Otav Ranch Miilenia n9aster Planned Communit�� (`Senior Projecr'):
and
V�'HEREAS, Developer is appl}�ine for an allocation of Multifamil�� Housine Revenue
Bonds from the California Debt Limit Allocation Committee (CDLAC); and
WIIEREAS. Developer is apph�ine for four percent (4%) tat credits from the Tax Credit
Allocation Committee (TCAC); and
�VHEREAS, in accordance ti�ith CVn4C y�19.90.0�0. to close the financino gap.
Developer has requested the deferral of applicable Parkland Acquisition and Development
(PAD); Traffic Signal, Salt Creek Se���er Basin and Se���er Capacit�� fees and ���aiver of the
Residential Construction Taz (collecti��el�� kno�tim as "De��elopment Chazees`) in the total
estimated amount of �1.288,�71 to reduce the development costs for the construction of the
Senior Project for its financial feasibility and as allo�i�ed by the Cit��'s A4unicipal Code to
stimulate de��elopment of affordable housing and upon economic hazdship; and
Resolution No. ZO 1�-08>
Page No. 2
WHEREAS, the City's evaluation of the development bud�et, operating pro forma, and
source and uses for the Senior Project determined that additiona] financing is appropriate and
necessary in order to malce the Senior Project feasible; and
WHEREAS; CVMC §17.10.070 provides that the City Council ma}� waive all or any
portion of the park lands dedication or fee requirements upon finding that said waiver w�ill
stimulate the construction of housine for low and moderate-income families: and
WHEREAS. in accordance with CVMC §�.45.010 (C), the City Council may ��aive or
defer all or portion of the Traffic Sianal; Salt Creek Sewer Basin and Sewer Capacit}� fees based
upon economic hardship or other injustice resulting to Yhe applicant which outweighs, when
balanced against. the need of the City re��enue and the need for a uniform method of reco��erine
same from those aeainst ���hom it is imposed; and
WHEREAS, in accordance with CVMC §3.32.0�0, the City Council may ti�aive all or a
portion of the Residential Construction Tax for any dwelling-unit types constructed which would
serve as housing for low- and moderate-income families; and
WHEREAS; the applicable Parkland Acquisition and Development (PAD), Traffic
Signal, Salt Creek Sewer Basin and Sewer Capacity fees and Reside�tial Construction Tax
(RCT), are due and payable upon application to the City for a building permit for the construction
of any such dwelling units of the Senior Project; and
WHEREAS, the City wishes to defer for a fifteen year period, with an option to extend
for an additional fifteen year period for any remaining unpaid balance, the applicable Parkland
Acquisition and Development fee (PAD) (estimated at $773,248), Traffic Signal fees (estimated
at $26,044); Salt Creek Sewer Basin (estimated at $122,692) and Sewer Capacity fees (estimated
at $335,237) and waive the Residential Construction Tax (estimated at $31,350) to assist in
reducing the development costs for the construction of the residentia] units of the Senior Project
in order to facilitate the de��elopment of housing for low and moderate income households; and
WHEREAS, the City's Housing Advisory Commission did, on the 20th da}� of
November. 2014, hold a public meeting to consider said request for financial assistance; and
WHEREAS, the Housing Advisory Commission; upon hearing and considerine all
testimony, if any. of all persons desiring to be heard, and considering all factors relating to the
request for financial assistance, recommended to the City that financial assistance be approved
on the condition that all other necessary financing be secured for the Senior Project, and
R'HEREAS, the Housine Advisory Commission found that the Cih�`s financial
participation in the development of the Senior Project will be a sound investment based upon
Developers ability to effectively serve the Ciry's housing needs and priorities as eapressed in
the Housin� Element and Consolidated Plan and the cost effectiveness of the City's financial
assistance based upon the levera�ing of such sources and is necessary in order to facilitate the
construction of the Senior Project; and
Resolution No. 201�-08�
Paee No. 3
V�'HEREAS; on April 21, 201� the City Council of the Citv of Chula \rista held a noticed
public hearine on the proposed deferral of the associated Traffic Signal; Salt Creek Se�a�er Basin
and Sewer Capacitv de��elopment fees applicable to the Senior Project; and
WHEREAS. the Cin� Council of the Cin of Chula Vista revie��ed and considered the
deferral of the associated de��elopment fees applicable to the Senior Project, staff
recommendations and reports both oral and ��ritten_ and the testimom� of all those ��ishing to be
heazd: and
�'HEREAS, in accordance �a�ith the requirements of CEQA, the Environmental Review
Coordinator has determined that the proposed project was adequately co��ered in previoush•
adopted Final Second Tier En��ironmental Impact Report, EIR 07-01. and no fiu-ther action b��
the Cin� Council is necessary.
NOV�'. THEREFORE. BE IT RESOLVED b�� the Cit�� Council of the Cirv of Chula
Vista, that the Senior Project is consistent with the pro�isions of Chula Vista Municipal Code
(CVMC) Section ]9.90, H�herein Developer tiill construct housine units to be restricted for
occupanc} b�� ��en-low and lo�v-i�come households or senior citizens as set forth in CVn4C
§19.90.040.
BE IT FURTHER RESOLVED. that the Cit�• Council of the Cim of Chula Vista finds.
based upon the recitals in this Resolution and e��idence presented at the public hearing b�� staff
and the public, that there is a peculiaz economic hardship to applicant that outweighs, tifien
balanced asainst. the need for Citv revenue and the need for uniform method of recoverine same
from those against �vhom it is imposed, and that the project furthers the Cin's and Housine
Authority`s goal for providing and developing affordable housine.
BE IT FURTHER RESOLVED bv the Cit�� Council of the Cit�� of Chula Vista. that the
deferral of applicable Parkland Acquisition and Development (PAD). Traffic Signal, Salt Geek
Seti�er Basin and Sewer Capacity fees and wai��er of the Residential Construction Ta� in the total
estimated amount of �1,288,�71 as requested bv Developec in accordance with CVMC
§19.90.0�0, is necessan� to provide for affordable rents and to achie��e lower de��elopment costs.
The Senior Project cannot be built ��-ithout such assistance.
BE IT FURTHER RESOLVED bti• the Cit� Council of the Citv of Chula Vista. in
accordance with CVMC §3.4�.010 (C)_ that the payment of the Traffic Signal. Salt Creek Se�ver
Basin and Sewer Capacity fees N�ould present an economic hardship to the Senior Project, given
the limited re��enue that can be generated from affordable rents and the Senior Project's
de��elopment costs; and that the provision and benefits of affordable housine to the communit��
out��eighs. ���hen balanced against, the need of the City re��enue and the need for a uniform
method of reco��erins same from those against «�hom it is imposed.
BE IT FURTHER RESOLVED b<< the Citv Council of the Cit�� of Chula Vista that it has
determined that the waiver of the Residential Construction Tas in accordance ���ith CVMC
§32.�0.0�0 is consistent with the City of Chula Vista Housing Element of the General Plan. will
assist ��ith reducing the development costs for the construction of the lo�+� income units of the
Senior Project: and that the public necessit}�, con��enience. oeneral ���elfare and Qood planning
practice support the �vaiver of this Ta�.
Resolution No. 201�-085
Page No. 4
BE IT FURTHER RESOLVED that the City Counci] of the City of Chula Vista, has
determined that the deferral of the Parkland Acquisition and De��elopment fee in accordance with
CVMC §17.10.070 is consistent ��ith the Cit�� of Chula Vista Housing Element of the Genera]
Plan, will assist ��ith reducing the development costs for the construction of the lo�� income units
of the Senior Project. and that the public necessity, convenience, general welfare and good
planning practice support the deferral of this fee.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista; that it
directs staff to prepare all necessary documents and any actions, as may be required for the
waiver and deferral of the Development Charges and authorizing the Ciry Manager; or his
designee to execute a Fee Deferral Agreement (`AgreemenP'), Promissory Notes, Deeds of
Trusts and all associated loan documents, and regulatory agreements, consistent with the City's
standard documents as reviewed and approved by the City Attorney's office, necessary for the
financing of the proposed Senior Project, securing repayment of said defferals, and, at minimum,
subject to the follo«ina terms and conditions:
1. Developer shall secure all other financing necessary for the acquisition and development
of the Senior Project.
2. The repayment of fee deferrals will be secured by Deeds of Trust and Promissory Notes
for the property in favor of the City of Chula Vista and recorded against the Senior
Project property. The Fee Deferral deeds of trust will be subordinate to the bond
financing and the deferred developer fees on each Senior Project.
3. The term of the Fee Deferral shall be fifieen (15) years. An extension of an additional 15
year deferral period may be granted by the City Manager or his designee, if necessary, for
any remaining balance at the end of the first 15 year term. The term extension shall be
granted upon a similar 1� year term extension of the affordability covenants.
4. The outstanding balance shall accrue simple interest at 3 percent per annum. Interest on
the deferred fees shall begin to accrue as of the date of the Agreement.
5. Payment of principal and interest on the Citys Fee Deferrals shall be made out of a fund
equal to fift}� percent (�0%) of the "Residual Receipts", defined as the income which
remains afrer the pa}�ment of the debt service on the permanent loan; payment on
subordinate junior bonds, payment of the defened developer fee, and reasonable
operating expenses. Payments made b�� Developer from residual receipts will be
allocated first to repayment of the deferred fees, until paid in full. Upon the extension of
the initial Fee Deferral term, payment of the deferred fees shall be amortized o��er the 15
year extended term with payments made on an annual basis.
6. De��eloper will be required to operate the Senior Project consistent with the Regulatory
Agreement required b}� the Senior ProjecPs bond and tax credit financing, the City's
Affordable Housing Program, and the Housing Authority's financing, the covenants
imposed b�� these Agreements; and any other project requirements.
Resolution No. 201�-08�
, Pase No. �
7. The Cit�� assistance is based upon the assumptions presented ��thin the sowces and uses
of funds, de��elopment budeet, de��elopment proforma and other information filed �vith
the Affordable Housine Re��ie�� Application for the Senior Project as submitted and
re��iewed bv the Cih�`s De��elopment Ser��ices Housing Di��ision. The Cin assistance is a
maa:imum le��el of participation. It is expected that am� substanti��e re��isions in such
financing assumptions tifiich would lead to an increase in other resources a��ailable,
�vould therefore reduce the level of Citv assistance.
Pres ,ted Appro��ed as to form b��
,
�
�
Ke � . rouehton. FASLA Glen R. oQins
Director of De��elopment Services C�t�� A�ne�� �'
Resolution I`io. 201�-08�
Paee No. 6
PASSED, APPROVED, and ADOPTED by the City Counci] of the City of Chula Vista,
California, this 21 st day of April 2015 by the followino vote:
AYES: Councilmembers: Aguilar, Bensoussan and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: Salas
ABSTAIN: Councilmembers: Miesen
Mary Sa s, Mayor
ATTEST:
��� ��
Donna R. I�iorris. CMC, itv Clerk
STATE OF CALIFORNIA )
COUI�'TY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Donna R. Norris, Cit}� Clerk of Chula Vista; California, do hereby certify that the foreooine
Resolution No. 201�-08� ti�as du]}� passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 21 st day of Apri] 201�.
Executed this 2]st day of April 2015.
�.�� �,°�,�,� ��
Donna R. Norris, CMC; City Clerk