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HomeMy WebLinkAboutRDA Reso 1999-1624 RESOLUTION NO. 1624 RESOLUTION OF THE REDEVELOPMENT AGEN 3Y OF THE CITY OF CHULA VISTA CONDITIONALLY APPROVING FIN~ ~NCIAL ASSISTANCE OF $275,000 TO CHELSEA INVESTMENT CI)RPORATION (CIC) SUNBOW SERVICES COMPANY, LLC FOR THE DEVELOPMENT OF THE PROPOSED 132 UNIT VILLA SERENA SE~IIOR AFFORDABLE HOUSING PROJECT AND APPROPRIATING $).75,000 FROM THE REDEVELOPMENT AGENCY'S LOW ANDM3DERATE' INCOME HOUSING SET-ASIDE FUND THEREFOR WHEREAS, the Redevelopment Agency of the City )f Chula Vista ("Agency") is required to set-aside and oversee disposition of certain tax increment funds in a L( ,w and Moderate Income Housing Fund ("Low/Mod Fund") for the purpose of encouraging the development of Iow and moderate income housing within the City; and VVHEREAS, the developer of Villa Serena Apartm~nts, Chelsea Investment Corporation (CIC) Sunbow Services Company LLC ("Developer"), proposes to con ~truct 132 apartment units, with 26 units affordable to very Iow senior households at 50 percent of the Are~ Median Income (AMI) and 106 units affordable to Iow-income senior households at 60 percent of AMI, at 1 he north east corner of Medical Center Drive and Medical Center Court in the City of Chula ("Project"); and WHEREAS, the Housing Authority has obtained an al ocation of multi-family revenue housing bonds for Project financing; and WHEREAS, DeveIoper is applying for four percenl (4%) tax credits from the Tax Credit Allocation Committee (TCAC); and WHEREAS, additional financing is necessary in ord .~r to make the Project feasible; and WHEREAS, the provision of affordable housing unit ~ like the Project is consistent with and called for by the City's General Plan Housing Element, Consolidated Plan, and California Health and Safety Code; and WHEREAS, the Agency wishes to provide Devel~pper with a development loan of two hundred seventy-five thousand dollars ($275,000) to assist with the l~nancing gap for the construction of the Project; and / WHEREAS, the Agency's provision of funds to thel Project will directly improve the City's supply of very Iow and Iow income housing; and WHEREAS, in accordance with California Health an¢ Safety Code Section 33334.2 (g), staff is recommending that the Agency find and determine that even thougt the Project is to be located outside the City's redevelopment project areas, those areas will benefit through [he creation of jobs in the project area and elsewhere in the City, and through the policies served by disper sing affordable housing throughout the jurisdiction rather than clustering it all in one area; and WHEREAS, the City's Housing Advisory Commissio ~ did, on the 28"~ day of October, 1998, hold a public meeting to consider said request for financial assistan. ~,; and WHEREAS, the Housing Advisory Commission, upc ~ hearing and considering all testimony, if any, of all persons desiring to be heard, and considering all fact( .rs relating to the request for financial assistance, has recommended to the Redevelopment Agency that ti ~e appropriation be approved because the Commission believes that the Agency's financial participation in t le 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 an¢ the cost effectiveness of the Agency's financial assistance based upon the leveraging of such resources; id Resolution 1624 Page 2 of 3 WHEREAS, in accordance with the requirements of CEQA, the Environmental Review Coordinator has determined that the Project requires the preparation of an Initial Study, such study (IS 99-13) was prepared, and based on such study a Negative Declaration was adopted in connection with the Conditional Use Permit for the Project. NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby conditionally approve a loan in the amount of $275,000 from the Agency's Low and Moderate Income Housing Set-Aside fund to Developer for the construction of the Project subject to the following terms and conditions: 1. The loan repayment will be secured by a Deed of Trust recorded against the Project property. 2. The term of the loan shall be fifty-two (52) years. 3. The outstanding balance shall accrue with simple interest at 6 percent per annum. 4. Payment of principal and interest on the Agency loan shall be made, on an annual basis, out of a fund equal to ninety percent (90%) 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. 5. Developer will be required to operate the Project consistent with the Regulatory Agreement required by the Project's tax-exempt bond financing, the convenants imposed by the Agreement, and the requirements of the Conditional Use Permit for the Project. 6. Developer shall enter into a Ican 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. 7. This conditional approval remains subject to final approval by the Agency in its sole discretion. BE IT FURTHER RESOLVED the Agency does hereby authorize the Finance Director to appropriate $275,000 from the Agency's Low and Moderate Income Housing Set-Aside fund for the purpose of providing loan in the amount of $275,000 to Developer for the construction of the Project. BE IT FURTHER RESOLVED that the Execu~:ive Director or his designee is hereby authorized and directed to negotiate, prepare and present to the Agency for approval at such time final approval of the issuance of the bonds and the related bond documents is requested by Developer or take other actions as may be necessary or appropriate to assist Developer with the construction of the Project. BE IT FURTHER RESOLVED in accordance with California 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, 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 Director of Community Development Agency A~o~ney Resolution 1624 Page 3 of 3 PASSED, APPROVED and ADOPTED BY THE REDEVEL :)PMENT AGENCY OF THE CITY OF CHULA VISTA, CALIFORNIA this 20th day of April, 1999 by the follo~ ,lng vote: AYES: Members Davis, Padilla, Moot, Salas and C ~aidMayor Horton NOES: None ABSENT: None ABSTENTIONS: None Shirley Ho Chairman ATTEST: ~ ~ Chds Salomone Executive Secretary STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss: CITY OF CHULA VISTA ) I, ChrisSalomone, Executive Secretary to the Redevelopment Agency ftheCityofChulaVista, California DO HEREBY CERTIFY that the foregoing is a full, true and correct copy o' Resolution No. 1624 and that the same has not been amended or repealed. Dated: April 21, 1999 _(_~..,~-,.~ ~ Chris Salomone Executive Secretary