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Home My WebLink AboutRDA Packet 2001/11/20 Notice is hereby given that the Chair of the Redevelopment Agency has called and will convene a special meeting of the Redevelopment Agency, Tuesday, November 20, 2001 at 6:00 p.m., immediately following the joint City Council and Redevelopment Agency meeting in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California to consider, deliberate and act upon the following: ~o/1kJk J Shirley Hort'óñ, Chair ~~~ ~..-: - CIlY OF CHULA VISTA TUESDAY, NOVEMBER 20, 2001 COUNCIL CHAMBERS 6:00 P.M. PUBLIC SERVICES BUILDING (immediately following the Joint City Council/Redevelopment Agency meeting) SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA CLOSED SESSION Unless Agency Counsel, the Executive Director, or the Redevelopment Agency states otherwise at this time, the Agency will discuss and deliberate on the following itemls) of business which are permitted by law to be the subject of a closed session discussion, and which the Agency is advised should be discussed in closed session to best protect the interests of the City. The Agency is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Agency's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, announcements of actions taken in Closed Session shall be made by Noon on Wednesday following the meeting at the City Clerk's office in accordance with the Ralph Brown Act IGovt. Code § 54957.7) 1. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956.8 Property: Assessor Parcel Nos. 568-270-2200; 760-106-9205 (31,673 sq. ft. at 320 Third Avenue) Negotiating Parties: Redevelopment Agency (Chris Salomone) and CinemaStar/Trigild (Bill Huffman), and/or Midland Loan Services/LaSalle Bank (Chris Cimino), and/or MTDS, Inc., dba Meridian Trust Deed Service (Diane Burnett) Under Negotiations: Price and terms for acquisition **************** AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complying with the Americans with Disabilities Act IADA), request individuals who require special accommodates to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least 48 hours in advance for meetings and five days for scheduled services and activities. Please contact the Secretary to the Redeveiopment Agency for specific information at (619) 691-5047 or Telecommunications Devices for the Deaf ITDD) at (619) 585-5647. California Relay Service is also available for the hearing impaired. Notice is hereby given that the Chair of the Chula Vista Housing Authority has called and will convene a special meeting of the Housing Authority, Tuesday, November 20, 2001 at 6:00 p.m., immediately following the City Council meeting in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chuia Vista, California to consider, deliberate and act upon the following: ~K1~ Shirley ~orton, Ch; . ~~~ ~..-: ~ CllY OF CHULA VISTA TUESDAY, NOVEMBER 20, 2001 COUNCIL CHAMBERS 6:00 P.M. PUBLIC SERVICES BUILDING (immediately following the City Council meeting) ADJOURNED JOINT MEETING OF THE REDEVELOPMENT AGENCY I CITY COUNCIL AND HOUSING AUTHORITY (SPECIAL MEETING) OF THE CITY OF CHULA VISTA CALL TO ORDER ROLL CALL Agency/Council/Authority Members Davis, Padilla, Rindone, Salas; Chair/Mayor Horton CONSENT CALENDAR The staff recommendations regarding the following item(s) listed under the Consent Calendar will be enacted by the Agency/Council by one motion without discussion unless an Agency/Council member, a member of the public or City staff requests that the item be pulled for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak Form" available in the lobby and submit it to the Secretary of the Redevelopment Agency or the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action items. Items pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES - Staff recommends that the Redevelopment Agency/City Council approve the minutes of October 23, November 6, and November 13, 2001. 2. AGENCY RESOLUTION OF THE OF THE CITY OF CHULA VISTA APPROVING $10,420 TO COVER ADDITIONAL COSTS OF THE PUBLIC IMPROVEMENTS ASSOCIATED WITH AN 11 UNIT TRANSITIONAL HOUSING PROJECT KNOWN AS TROLLEY TRESTLE LOCATED AT 746 ADA STREET. AND APPROPRIATING SAID AMOUNT FROM THE REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING FUND - On 6/22/99. the Agency approved a Disposition, Development and Housing Cooperation Agreement with South Bay Community Services (SBCS), for the development of an 11-unit Transitional Housing Development for Foster Care Graduates, know as Trolley Trestle, located at 746 Ada Street. The project was completed in December 2000. SBCS is requesting a grant of $10,420 to meet increased costs related to the off site improvements of the project. [Community Development Director] 4/5ths VOTE REQUIRED STAFF RECOMMENDATION: Agency adopt the resolution 3. JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING CONFLICT OF INTEREST IN CONNECTION WITH RUTAN & TUCKER. LLP'S REPRESENTATION OF THE CITY OF CHULA VISTA. THE REDEVELOPMENT AGENCY AND THE OLSON COMPANY - Currently, the City of Chula Vista and Redevelopment Agency are employing the legal services of Rutan & Tucker, LLP on a number of important City and Agency issues. Rutan & Tucker, LLP also represents The Olson Company. a builder of affordable urban communities in California, on many of the redevelopment housing projects it undertakes. At this time, The Olson Company has commenced discussions with a developer, Barone Galasso & Associates, Inc., that may lead to a City housing project involving for-sale and apartment units. As they have done in the past regarding similar matters, The Olson Company wishes Rutan & Tucker to represent them with respect to this project. If this happens, Rutan & Tucker would then experience a conflict of interest because of its dual role as counsel for both parties (albeit in separate matters). Therefore, to continue as counsel for all parties (City. Agency, and Olson) Rutan & Tucker must notify its affected clients of the situation, assure them that its loyalty and quality of work will not be influenced by factors other than the client's best interest, and obtain each client's informed written consent. [City Attorney] STAFF RECOMMENDATION: Council/Agency adopt the resolution ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Council/Agency/Authority, staff, or members of the general public. The items will be considered individually by the Agency/Authority and staff recommendation may in certain cases be presented in the alternative. Those who wish to speak, please fill out a Request to Speak form available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. I Redevelopment Agency, November 20, 2001 Page 2 4. CONSIDERATION OF THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS AND APPROVAL AND EXECUTION OF THE NECESSARY DOCUMENTS AND APPROVAL OF THE AGENCY'S LOAN AND REGULATORY AGREEMENTS FOR THE HERITAGE TOWN CENTER MULTI- FAMILY RENTAL HOUSING DEVELOPMENT - On 5/29/01, the Housing Authority of the City of Chula Vista held a public hearing and approved a resolution expressing the Authority's intent to issue multi-family housing revenue bonds to finance a proposed 271 unit multi-family rental housing project for low and moderate income households within the Otay Ranch master planned community (Heritage Town Center). Additionally, the Agency/Council conditionally approved financial assistance in the form of a residual receipts loan from the Agency's Low and Moderate Income Housing fund in an amount not-to-exceed $4.4 million and a deferral and waiver of certain City fees. The developer has since received a commitment of 2001 private activity bonds for multi-family rental housing projects from the California Debt Limit Allocation Committee. At this time, the Authority is asked to approve a bond resolution authorizing the issuance of $15,400.000 in tax exempt bonds for the financing of the project and execution in substantial form and other related documents. As a condition of the Agency's financial assistance, the developer is to enter into a loan and regulatory agreement with the Agency and City specifying terms of the financial assistance and use of the project as an affordable housing development for low and moderate income households for a period of 55 years. [Community Development Director] 4/5THS VOTE REQUIRED [CONTINUED. FROM THE MEETING OF 11/13/01] a. RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,400.000 FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF THE HERITAGE TOWN CENTER MULTI-FAMILY RENTAL HOUSING PROJECT. APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF ANY AND ALL DOCUMENTS NECESSARY TO ISSUE THE BONDS AND IMPLEMENT THIS RESOLUTION. AND RATIFYING AND APPROVING ANY ACTION HERETOFORE TAKEN IN CONNECTION WITH THE BONDS b. JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA [A] APPROVING A LOAN AGREEMENT AND RELATED RESTRICTIVE COVENANTS AND THE AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND SOUTH BAY COMMUNITY VILLAS. loP. AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT Redevelopment Agency, November 20, 2001 Page 3 AGENCY TO EXECUTE SAID AGREEMENTS; [B] APPROPRIATING $4,400.000 FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR FINANCIAL ASSISTANCE TO SOUTH BAY COMMUNITY VILLAS. loP.; [C] APPROVING A TEN YEAR DEFERRAL OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND WAIVER OF THE PARK FEE AND RESIDENTIAL CONSTRUCTION TAX; AND [D] APPROVING A DEFERRAL AGREEMENT FOR THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT FOR THE DEVELOPMENT AND OPERATION OF HERITAGE TOWN CENTER STAFF RECOMMENDATION: 4.a) Housing Authority adopt the resolution; 4.b) Council/Agency adopt the resolution. ORAL COMMUNICATIONS This is an opportunity for the general public to address the Redevelopment Agency on any subject matter within the Agency's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the Redevelopment Agency from taking action on any issues not included on the posted agenda.) If you wish to address the Agency on such a subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the Secretary to the Redevelopment Agency or City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. OTHER BUSINESS 5. DIRECTOR'S REPORTlS) 6. CHAIR/MAYOR REPORTlS) 7. AGENCY/COUNCIL COMMENTS ADJOURNMENT The meeting will adjourn to a closed session and thence to a regular meeting of the Redevelopment Agency on December 4, 2001 at 4:00 p.m., immediately following the City Council meeting in the City Council Chambers. CLOSED SESSION Unless Agency Counsel, the Executive Director, City Councilor the Redevelopment Agency states otherwise at this time, the Agency/Council will discuss and deliberate on the following item(s) of business which are permitted by law to be the subject of a closed session discussion, and which the Agency/Council is advised should be discussed in closed session to best protect the interests of the City. The Agency/Council is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Agency/Council's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, announcements of actions taken in Closed Redevelopment Agency, November 20, 2001 Page 4 Session shall be made by Noon on Wednesday following the meeting at the City Clerk's office in accordance with the Ralph Brown Act (Govt. Code § 54957.7) 8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR -- Pursuant to Government Code Section 54956.8 Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately 2.85 acres located at the southeast corner of Fourth Avenue and F Street) Negotiating Parties: City Council / Redevelopment Agency (Sid Morris/ Chris Salomone) and Various Tenant Interests Under Negotiations: Lease terms 9. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION -- Pursuant to Government Code Section 54956.9(b) One Case **************** AMERICANS WITH DISABILITIES ACT The City of Chula Vista, in complyin9 with the Americans with Disabilities Act (ADAI, request individuals who require special accommodates to access, attend, and/or participate in a City meetin9, activity. or service request such accommodation at least 48 hours in advance for meetings and five days for scheduled services and activities. Please contact the Secretary to the Redevelopment Agency for specific information at (6191 691-5047 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5647. California Relay Service is aiso available for the hearin9 impaired. Redevelopment Agency, November 20, 2001 Page 5 MINUTES OF ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA October 23,2001 6:00 p.m. Adjourned Regular Meetings of the City Council and Redevelopment Agency of the City of Chu1a Vista were called to order at 9:10 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLL CALL PRESENT: Agency/Counci1members: Davis, Rindone, Salas and Chair/Mayor Horton ABSENT: Agency/Councilmembers: Padilla (excused) ALSO PRESENT: Executive Director/City Manager Rowlands, Senior Assistant City Attorney Moore, and City Clerk Bigelow CONSENT CALENDAR 1. COUNCIL RESOLUTION NO. 2001-366 AND AGENCY RESOLUTION NO. 1751, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING THE DOWNTOWN PROPERTY AND BUSINESS IMPROVEMENT DISTRICT COOPERATIVE AGREEMENT, APPOINTING THE INITIAL BOARD OF DIRECTORS, AND AMENDING THE 2001-2003 TOWN CENTRE 1 REDEVELOPMENT PROJECT AREA FUND BUDGET On 7/24/01, downtown property owners voted to create the Downtown Property and Business Improvement District (PBID). The new assessment district will come online beginning in January 2002. The PBID assessment process will be governed by a proposed cooperative agreement, which sets forth the organizational relationship between the City and new district. In addition, the initial appointment of an oversight Board of Directors and certain budgetary amendments are required to address the transition from the existing Downtown Business Association to the new structure. (Community Development Director) Staff recommendation: Agency adopt the resolution. 2. COUNCIL RESOLUTION NO. 2001-367 AND AGENCY RESOLUTION NO. 1752, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRIATING $500,000 FROM UNEXPENDED REDEVELOPMENT AGENCY 2000 TAX ALLOCATION BOND PROCEEDS IN THE MERGED PROJECT AREA FUND AND $500,000 FROM THE AVAILABLE FUND BALANCE IN THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND INTO CAPITAL IMPROVEMENT PROJECT PS 149 FOR ADDITIONAL RELOCATION COSTS FOR THE NEW DOWNTOWN POLICE FACILITY /- ( CONSENT CALENDAR (Continued) On 7/17/01, Council appropriated an initial $500,000 for the Police headquarters site relocation costs and relocation consultant contract. This appropriation is expected to be completely expended during October. Settlements have been reached with over half of the 13 business sites. Several larger settlements are now pending. In order to proceed with the remaining relocation settlements, an additional appropriation for costs associated with the relocation is necessary. Eligible funds are available from the Redevelopment Agency's 2000 tax allocation bonds and from the available fund balance in the Public Facilities development impact fee fund. (Community Development Director) Staff recommendation: Agency/Council adopt the resolution. 3. COUNCIL RESOLUTION NO. 2001-368 AND AGENCY RESOLUTION NO. 1753, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AUTHORIZING THE CHULA VISTA NATURE CENTER TO APPLY FOR GRANT FUNDS FOR THE URBAN RECREATION AND CULTURAL CENTERS, MUSEUMS AND FACILITIES FOR WILDLIFE EDUCATION OR ENVIRONMENTAL EDUCATION GRANT PROGRAM UNDER THE SAFE NEIGHHORHOOD PARKS, CLEAN WATER, CLEAN AIR, AND COASTAL PROTECTION BOND ACT OF 2000; AND APPOINTING THE NATURE CENTER DIRECTOR AS THE CITY'S AGENT TO EXECUTE RELATED AGREEMENTS WITH THE STATE OF CALIFORNIA IF A GRANT IS AWARDED The Chula Vista Nature Center has been nominated by Assemblymember Vargas to compete for funding from the Urban Recreation and Cultural Centers, Museums and Facilities for Wildlife Education or Environmental Education Grant Program. Resolutions of the Redevelopment Agency and the City Council authorizing the Nature Center's grant application and designating the Agency's representative are required elements of the submittal. (Nature Center Director) Staff recommendation: Agency/Council adopt the resolution. Agency/Councilmember Rindone referenced Item #1 of the Consent Calendar and suggested that, should any of the proposed appointees to the PBID Board of Directors be unable to serve, Donna Vignapiano be considered as first alternate. ACTION: Agency/Councilmember Rindone moved to consider Donna Vignapiano as an alternate for the PBID Board of Directors and to approve staff recommendations, and he offered the Consent Calendar, headings read, texts waived. The motion carried 4-0. ORAL COMMUNICATIONS There were none. Page 2 CouncillRDA Minutes I-J- 10/23/01 PUBLIC HEARINGS 4. a. RESOLUTION NO. 1754, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING MITIGATED NEGATIVE DECLARATION IS-OI-061 AND APPROVING OWNER PARTICIPATION AGREEMENT WITH THE METROPOLITAN AREA ADVISORY COMMITTEE FOR THE REHABILITATION AND RE-USE OF AN EXISTING COMMERCIAL BUILDING LOCATED AT 1351-1395 THIRD AVENUE WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA The Metropolitan Area Advisory Committee (MAAe), a local non-profit community assistance organization, is proposing to rehabilitate and re-use a commercial building located at 1351-1395 Third Avenue for the establishment of a Community Center that will house a variety of community-oriented services. MAAC has submitted an application to the California Statewide Communities Development Authority (CSCDA) for financing of the project. Chula Vista, as a member participant of the CSCDA and as the location of the proposed facilities, must conduct a public hearing and approve the CSCDA's issuance of indebtedness. However, before the public hearing is conducted, the Redevelopment Agency must take action to approve an owner participation agreement with MAAC. If the Agency resolution is not approved, the purpose of the public hearing will be unnecessary and the item will be pulled. (Community Development Director) ACTION: Chair/Mayor Horton offered Agency Resolution No. 1754, heading read, text waived. The motion carried 4-0. b. PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA FOR CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT AND TAXABLE OBLIGATIONS FOR THE METROPOLITAN AREA ADVISORY COMMITTEE, INC. WITH RESPECT TO THE PROPOSED PROJECT BY THE CALIFORNIA STATWIDE COMMUNITIES DEVELOPMENT AUTHORITY Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Chair/Mayor Horton opened the public hearing. With no members of the public wishing to address Council, she then closed the hearing. ACTION: Agency/Councilmember offered Resolution No. 2001-369, heading read, text waived: RESOLUTION NO. 2001-369, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING ISSUANCE OF TAX EXEMPT AND TAXABLE OBLIGATIONS FOR THE METROPOLITAN AREA ADVISORY COMMITTEE, INC. WITH RESPECT TO THE PROPOSED PROJECT BY THE CALIFORNIA STATWIDE COMMUNITIES DEVELOPMENT AUTHORITY The motion carried 4-0. Page 3 CouncillRDA Minutes /-3 10/23/01 OTHER BUSINESS 5. DIRECTOR'S REPORTS There were none. 6. CHAIR/MA YOR REPORTS There were none. 7. AGENCY/COUNCIL COMMENTS There were none. CLOSED SESSION 8. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately 2.85 acres located at the southeast corner of Fourth Avenue and F Street) Negotiating Parties: City Council/Redevelopment Agency (Sid Morris/Chris Salomone) and Various Tenant Interests Under Negotiation: Lease terms ACTION: Direction was given to Counsel. 9. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) One Case This item was not discussed. ADJOURNMENT At 9:55 p.m., Chair/Mayor Horton adjourned the meeting to a Regular Meeting of the Redevelopment Agency on November 6, 2001, 2001 at 4:00 p.m., immediately following the City Council meeting. ~~~i~ Susan Bigelow, CMC/AAE, City Clerk Page 4 CouncillRDA Minutes (- i 10/23/01 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND A REGULAR MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA November 6, 2001 4:00 p.m. An Adjourned Regular Meeting of the City Council and a Regular Meeting of the Redevelopment Agency of the City of Chula Vista were called to order at 5:04 p.m. in the Council Chambers, located in the Public Services Building, 276 Fóurth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Agency/Councilmembers: Davis, Padilla, Rindone, Salas ABSENT: Agency/Councilmembers: Chair/Mayor Horton ALSO PRESENT: Executive Director/City Manager Rowlands, Agency/City Attorney Kaheny, and City Clerk Bigelow ORAL COMMUNICATIONS There were none. OTHER BUSINESS 1. DIRECTOR'S REPORTS There were none. 2. CHAIRIMAYOR REPORTS There were none. 3. AGENCY/COUNCIL COMMENTS Agency/Councilmember Rindone notified staff of a pothole that needs to be filled at the intersection ofF Street and Second Avenue. CLOSED SESSION 4. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately 2.85 acres located at the southeast corner of Fourth Avenue and F Street) Negotiating Parties: City Council/Redevelopment Agency(Sid Morris / Chris Salomone) and Various Tenant Interests Under Negotiation: Lease tenus No reportable action was taken. 1- ~ CLOSED SESSION (Continued) 5. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) One Case No reportable action was taken. 6. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel Nos. 568-270-2200; 760-106-9205 (31,673 sq. ft. at 320 Third Avenue) Negotiating Parties: Redevelopment Agency (Chris Salomone) and CinemaStar/Trigild (Bill Huffman) and/or Midland Loan ServiceslLaSalle Bank (Chris Cimino) Under Negotiations; Price and terms for acquisition This item was not discussed. ADJOURNMENT At 5:30 p.m., Agency/Councilmember Davis adjourned the meeting to an adjourned meeting of the Redevelopment Agency on November 13, 2001, 2001 at 6:00 p.m., immediately following the City Council meeting. ~~rt~ Susan Bigelow, CMC/AAE, City Clerk Page 2 Council/RDA Minutes / - fc 11/06/01 MINUTES OF ADJOURNED REGULAR MEETINGS OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY, AND A SPECIAL MEETING OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA November 13, 2001 6:00 P.M. Adjourned Regular Meetings of the City Council and Redevelopment Agency, and a Special Meeting of the Housing Authority of the City ofChula Vista, were called to order at 6:30 p.m. in the Council Chambers, located in the Public Services Building, 276 Fourth Avenue, Chula Vista, California. ROLLCALL PRESENT: Agency/Authority/Councilmembers Davis, Padilla, Rindone, Salas, and Chair/Mayor Horton ABSENT: Agency/ Authority/Counciimembers: None ALSO PRESENT: Executive Director/City Manager Rowlands, Senior Assistant City Attorney Moore, and City Clerk Bigelow CONSENT CALENDAR Agency/Councilmember Salas announced that she would be abstaining nom discussion and voting on Consent Item #4 due to a possible conflict of interest. 1. APPROVAL OF MINUTES Staff recommendation: The Redevelopment Agency/City Council approve the minutes of October 9, 2001. 2. COUNCIL RESOLUTION NO. 2001-386, AND AGENCY RESOLUTION NO. 1755, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA AMENDING THE STOREFRONT RENOVATION PROGRAM BY INCREASING REBATE AMOUNTS FOR ELIGIBLE PROJECTS IN THE TOWN CENTRE 1 REDEVELOPMENT PROJECT AREA AND EXPANDING THE PROGRAM TO ELIGIBLE PROJECTS IN THE H STREET CORRIDOR BETWEEN BROADWAY AVENUE AND INTERSTATE 5, TRANSFERRING FUNDS FOR THE PROGRAM FROM THE TOWN CENTRE 1 PROFESSIONAL SERVICES FUND TO THE COMMUNITY DEVELOPMENT SPECIAL PROJECTS FUND, AND AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO ENTER INTO AGREEMENTS WITH ELIGIBLE P ARTICIP ANTS On 11/14/00, Agency/Council adopted a Storenont Renovation Program to benefit merchants and property owners in a targeted area of the Town Centre 1 Redevelopment Project Area. On 9/18/01, Council approved the H Street beautification project, which is a comprehensive streetscape, art and landscaping program in the H Street corridor between Broadway Avenue and Interstate 5. Staff has recommended that the Agency/Council amend the storenont renovation program by increasing rebate amounts in the Town Centre 1 Redevelopment Project Area and expanding the program to eligible projects in the H Street corridor between Broadway and 1-5. (Community Development Director) Staff recommendation: Agency/Council adopt the resolution. 1- 1 CONSENT CALENDAR (Continued) 3. AGENCY RESOLUTION NO. I756, RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA ADOPTING NEGATIVE DECLARATION IS-00-29 AND APPROVING OWNER PARTICIPATION AGREEMENT WITH MR. RICHARD MOORE FOR THE DEVELOPMENT OF AN INDUSTRIAL BUILDING LOCATED AT 694 MOSS STREET WITHIN THE SOUTHWEST REDEVELOPMENT PROJECT AREA The owner of the property at 694 Moss Street is proposing to construct an I 1,372 square- foot industrial building. The proposed structure will be used for the storage of telecommunications cable material and equipment. The project is being constructed on an underutilized and blighted lot, and includes the construction of a parking lot, landscaped areas, and street improvements. The site is located next to the San Diego Trolley line and within proximity of the northbound entrance to Interstate 5 at L Street. The site is also located within the boundaries of the Southwest Redevelopment Project Area. (Community Development Director) Staff recommendation: Agency adopt the resolution. 4. COUNCIL RESOLUTION NO. 2001-387, AND AGENCY RESOLUTION NO. 1757, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA SUPPORTING THE CONCEPT OF RE-SITING THE DUKE ENERGY SOUTH BAY POWER PLANT TO THE LNG SITE, AND DIRECTING STAFF TO EXPLORE ALL ASSOCIATED DEVELOPMENT OPPORTUNITIES IN COOPERATION WITH THE SAN DIEGO UNIFIED PORT DISTRICT AND DUKE ENERGY OF NORTH AMERICA In April 1999, the San Diego Unified Port District completed the purchase of the South Bay Power Plan from SDG&E and leased the facility to Duke Energy of North America. The primary purpose of the agreement is to allow for the dismantling of the aging plant and its current location by November 2009, with an opportunity to re-site a new plant "off-site" thereby allowing for highest and best use development of the south Bayfront south of"J" Street. (Community Development Director) Staff recommendation: Agency/Council adopt the resolution. ACTION: Chair/Mayor Horton moved to approve staff recommendations and offered the Consent Calendar, headings read, texts waived. The motion carried 5-0, except on Item #4, which carried 4-0-1 with Agency/Councilmember Salas abstaining due to a possible conflict of interest. ACTION ITEMS Staff requested that Item #5 be continued to the meeting of November 20,2001. 5. CONSIDERATION OF THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS AND APPROVAL AND EXECUTION OF THE NECESSARY DOCUMENTS AND APPROVAL OF THE AGENCY'S LOAN AND REGULATORY AGREEMENTS FOR THE HERITAGE TOWN CENTER MULTI-FAMILY RENTAL HOUSING DEVELOPMENT Page 2 CCIRDAlHA Minutes (- f 11113/01 ACTION ITEMS (Continued) On 5/29/01, the Housing Authority of the City ofChula Vista held a public hearing and approved a resolution expressing the Authority's intent to issue multi-family housing revenue bonds to finance a proposed 271-unit, multi-family rental housing project for low and moderate income households within the Otay Ranch master planned community (Heritage Town Center). Additionally, the Agency/Council conditionally approved financial assistance in the form of a residual receipts loan ITom the Agency's Low and Moderate Income Housing fund in an amount not-to-exceed $4.4 million and a deferral and waiver of certain City fees. The developer has since received a commitment of 200 1 private activity bonds for multi-family rental housing projects ITom the California Debt Limit Allocation Committee. At this time, the Authority is asked to approve a bond resolution authorizing the issuance of $15,400,000 in tax-exempt bonds for the financing of the project and execution in substantial form and other related documents. As a condition of the Agency's financial assistance, the developer is to enter into a loan and regulatory agreement with the Agency and City specifying terms of the financial assistance and use of the project as an affordable housing development for low and moderate-income households for a period of 55 years (Community Development Director) a. RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,400,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF THE HERITAGE TOWN CENTER MULTI-FAMILY RENTAL HOUSING PROJECT, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF ANY AND ALL DOCUMENTS NECESSARY TO ISSUE THE BONDS AND IMPLEMENT THIS RESOLUTION, AND RATIFYING AND APPROVING ANY ACTION HERETOFORE TAKEN IN CONNECTION WITH THE BONDS b. JOINT RESOLUTIONS OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA [A] APPROVING A LOAN AGREEMENT AND RELATED RESTRICTIVE CONVENANTS AND THE AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND SOUTH BAY COMMUNITY VILLAS, LP. AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT AGENCY TO EXECUTE SAID AGREEMENTS; [B] APPROPRIATING $4,400,000 FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR FINANCIAL ASSISTANCE TO SOUTH BAY COMMUNITY VILLAS, LP.; [C] APPROVING A TEN YEAR DEFERRAL OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND WAIVER OF THE PARK FEE; AND [D] APPROVING A DEFERRAL AGREEMENT FOR THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT FOR THE DEVELOPMENT AND OPERATION OF HERITAGE TOWN CENTER ACTION: It was the consensus of the Council to continue this item as requested by staff. Page 3 CCIRDAlHA Minutes (- r 11/13/01 ORAL COMMUNICATIONS There were none. OTHER BUSINESS 6. DIRECTOR'S REPORTS There were none. 7. CHAIR/MA YOR REPORTS There were none. 8. AGENCY/COUNCIL COMMENTS There were none. CLOSED SESSION 9. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately 2.85 acres located at the southeast comer of Fourth Avenue and F Street) Negotiating Parties: City Council/Redevelopment Agency (Sid Morris/Chris Salomone) and Various Tenant Interests Under Negotiation: Lease tenns This item was not discussed. 10. CONFERENCE WITH LEGAL COUNSEL REGARDING ANTICIPATED LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) One Case This item was not discussed. 11. CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8 Property: Assessor Parcel Nos. 568-270-2200; 760-106-9205 (31,673 sq. ft. at 320 Third Avenue) Negotiating Parties: Redevelopment Agency (Chris Salomone) and CinemaStar/Trigild (Bill Huffman) and/or Midland Loan Services/La Salle Bank (Chris Cimino) Under Negotiations: Price and tenns for acquisition ACTION: Direction was given to the negotiator. Page 4 CCIRDAIHA Minutes (- /0 11113/01 ADJOURNMENT At 7:50 p.m., Chair/Mayor Horton adjourned the meeting to a Regular Meeting of the Redevelopment Agency on November 20, 2001, 2001 at 6:00 p.m., immediately following the City Council meeting. ~Lu ~ '«'~- Susan Bigelow, CMC/AAE, City Clerk Page 5 CCIRDAIHA Minutes 1- (( 11113/01 REDEVELOPMENT AGENCY AGENDA STATEMENT ITEM NO.: d-- MEETING DATE: 11 /20/01 ITEM TITLE: RESOLUTION APPROVING $10,420 TO COVER ADDITIONAL COSTS OF THE PUBLIC IMPROVEMENTS ASSOCIATED WITH AN 11 UNIT TRANSITIONAL HOUSING PROJECT KNOWN AS TROLLEY TRESTLE LOCATED AT 746 ADA STREET, AND APPROPRIATING SAID AMOUNT FROM THE REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING FUND SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR V~, REVIEWED BY: EXECUTIVE DIRECTOR C9l,;>(1.1 4/5THS VOTE: YES0NOD BACKGROUND On June 22, 1999, the Agency approved a Disposition, Development and Housing Cooperation Agreement with South Bay Community Services (SBCS), for the development of an eleven (11) unit Transitional Housing Development for Foster Core Graduates, known as, Trolley Trestle, located at 746 Ada Street. The project was completed in December 2000. SBCS is requesting a grant of $10,420 to meet increased costs related to the off site improvements of the project. RECOMMENDATION Staff recommends that the Agency approve and appropriate $10,420 from the Low and Moderate Income Housing fund to cover the increased costs. BOARDS/COMMISSIONS RECOMMENDATION On December 9, 1998, the Housing Advisory Commission voted to recommend approval of the project. On June 22, 1999, City Council/Agency approved the project. DISCUSSION Trolley Trestle is a transitional housing project of 11 apartment units (6 one-bedroom and 5 two- bedroom units), a common area meeting room, computer room, and porking for 12 vehicles, including one handicapped space. Total development cost of this project was opproximotely $1,323,000 which was paid by numerous funding sources including the State of California, the County of San Diego, the City of Chulo Vista, and private foundations. d- - ( PAGE 2, ITEM NO.: MEETING DATE: 11/20/01 The residents are individuals who hove completed the San Diego County Foster Core Progrom. The transitionolliving program will be their first step towards self-sufficiency ond independent living. The residents are allowed to stay for a maximum of two years, consistent with the definition of transitional housing. During their residency, they will be required to continue their education or obtain employment with a career path. This housing project is targeted to extremely low-income young adults; they will be employed part time while ottending school or just storting employment. Exfremely low income is defined as a maximum of 30 percent of the Area Median Income (AMI) as determined by HUD, currently $11,300 for 0 single person household. Residents will contribute a percentage of their income towards rent. Public Improvement Costs When this project was originally planned, the City only required that SBCS perform minor public improvements, including curb ond gutter, driveway approoch, one streetlight, new sidewalk and handicap ramps. The total cost for this work wos budgeted ot $10,000. After the project got started, it was determined that the project also had to perform street widening and underground storm-drain improvements, in addition to what was originally required which amounted to a total cost of $12B,000. These items were never in SBCS' budget for this project. To address this increase cost, SBCS was able to obtain $55,000 from the County of San Diego and other sources and the agency contributed $73,000 to cover the balance. After completing the final close out process for this project, SBCS incurred an additional $10,420 to meet the increase costs of the project primarily due to prevailing woge requirements which were higher than anticipated. SBCS is requesting Agency assistance in obtaining these odditional funds. FISCAL IMPACT Financial assistance in the form of a grant of $10,420 will be provided from the Redevelopment Agency's Low and Moderate Income Housing Fund. Total development cost of this 11 units housing project was approximotely $1,323,000 involving numerous funding sources including $536,000 from the County of San Diego, $247,000 from the State of Californio, a $300,000 development loan from the Agency, a lond contribution from the City valued at $167,000, and $73,000 to partially cover the cost of the public improvements. The $10,420 finoncial assistance requested to help poy for additional public improvement costs can be provided from the Redevelopment Agency's Low and Moderate Income Housing Fund. jo\COMMDEV\STAFF.REP\ 11-20-01\trolley trestle.doc ,;2..-;).... RESOLUTION NO. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING $10,420 TO COVER ADDITIONAL COSTS OF THE PUBLIC IMPROVEMENTS ASSOCIATED WITH AN 11 UNIT TRANSITIONAL HOUSING PROJECT KNOWN AS TROLLEY TRESTLE, LOCATED AT 746 ADA STREET AND APPROPRIATING SAID AMOUNT FROM THE REDEVELOPMENT AGENCY'S LOW AND MODERATE INCOME HOUSING SET-ASIDE FUND WHEREAS, on June 22, 1999 the City Council and Redevelopment Agency of the City . of Chula Vista approved a Disposition, Development, and Housing Cooperation Agreement. and related documents with South Bay Community Services for the development of an eleven (11) unit transitional housing development for foster care graduates, known as Trolley Trestle, located at 746 Ada Street; and WHEREAS, The provision of affordable housing units 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 because it will increase the City's supply of transitional housing for the near homeless or potentially homeless populations; and WHEREAS, The proposed Project is consistent with the Southwest Redevelopment Plan and Implementation Plan and shall assist in the elimination of blighting influences by putting a vacant parcel to a high and better use and will provide quality housing for low income residents, and thus contribute to satisfy the needs and desires of the community and meet the requirements of State law. WHEREAS, South Bay Community Services has requested Agency financial assistance in the amount of $10,420 to cover higher than anticipated public improvement costs associated with the Project. NOW, THEREFORE BE IT RESOLVED based on the findings and determinations set forth above, the Redevelopment Agency of the City of Chula Vista does hereby approve and appropriate $10,420 from the Low and Moderate Income Housing Set-Aside Fund to pay for the additional public improvement costs associated with the Project. BE IT FURTHER RESOLVED that staff is authorized and directed to prepare an agreement with SBCS to implement this approval in a final form approved by the Agency Attorney. PRESENTED BY APPROVED AS TO FORM BY Chris Salomone Director of Community Development J:ICOMMDEVIRESOSITROLLEY TRESTLEdoc d.. -3 JOINT REDEVELOPMENT AGENCY / CITY COUNCIL AGENDA STATEMENT ITEM NO.: J MEETING DATE: 11 /20/01 ITEM TITLE: JOINT RESOLUTION OF THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING CONFLICT OF INTEREST IN CONNECTION WITH RUTAN & TUCKER, LLP'S REPRESENTATION OF THE CITY OF CHULA VISTA, THE REDEVELOPMENT AGENCY AND THE OLSON COMPANY SUBMITTED BY: CITY ATTORNEY Gf2.-G-- f..v-JK REVIEWED BY: CITY MANAGER 4/ST"S VOTE: YES D NO D BACKGROUND Rutan & Tucker, LLP represents the City of Chulo Visto ond Redevelopment Agency on a voriety of legal motters. Rutan & Tucker also performs work for another client, The Olson Company. The Olson Company hos commenced discussions with a developer to build offordable housing in the City and wishes Rutan & Tucker to represent them on that project. Because of the conflict of interest associated with representing two clients in adverse positions (albeit in unrelated matters) Rutan & Tucker needs 0 waiver of this conflict of interest to continue representing all parties. RECOMMENDATION That Council and the Agency adopt the Resolution opproving an informed consent agreement waiving any conflict of interest arising from the law firm of Rutan & Tucker, LLP providing legal representation to The Olson Company and related entities odverse to the City of Chula Visto ond the Redevelopment Agency while at the same time representing the Redevelopment Agency regarding redevelopment plan amendments, the City of Chula Vista on cable television matters, and the City of Chula Vista or Redevelopment Agency regarding other future matters unreloted to the Olson project. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. J-I PAGE 2, ITEM NO.: MEETING DATE: 04/20/01 DISCUSSION Currently, the City of Chula Vista ond Redevelopment Agency are employing the legal services of Rutan & Tucker, LLP on a number of important City and Agency issues - for example, coble television taxotion and redevelopment plan amendments. Rutan & Tucker, LLP also represents The Olson Company, a builder of affordable urban communities in California, on many of the redevelopment housing projects it undertakes. At this time, The Olson Company has commenced discussions with a developer, Barone Galasso & Associotes, Inc., that may lead to a City housing project involving for- sale and apartment units. As they have done in the past regarding similar matters, The Olson Company wishes Rutan & Tucker to represent them with respect to this project. If this happens, Rutan & Tucker would then experience 0 conflict of interest because of its dual role as counsel for both parties (albeit in unrelated motters). Therefore, to continue as counsel for all parties (City, Agency, and Olson) Rutan & Tucker must notify its affected clients of the situation, assure them that its loyalty and quality of work will not be influenced by factors other than the client's best interest, and obtain each client's informed written consent. That is the subject of this joint Resoultion. Thus for, the work performed by Rutan & Tucker on various legal matters has been more than satisfactory and has greatly assisted City and Agency operotions. Furthermore, stoff has reviewed the potential conflict of interest mentioned above and believes Rutan & Tucker's assertion that it would not impair its ability to provide the highest quolity legal representation. Therefore, stoff recommends thot the City and Agency approve the informed consent ogreement waving any conflict of interest arising from Rutan & Tucker's representation of adverse clients in unrelated matters and continue to employ its services. If, over time, the conflict of interest being waived become too direct or untenoble, the City and Agency would, reserve the right to withdraw the waiver ond terminate Runtan & Tucker as counsel or osk the firm to discontinue representing The Olson Company. Finally, any new legal representation Rutan & Tucker enters into with the City, Agency, or other clients will continue to be evaluated for possible conflicts of interest, and if necessary, a new informed consent ond waiver will be secured in each instance. FISCAL IMPACT There is no anticipated fiscal impoct connected with approval of this Resolution. ATTACHMENTS Rutan and Tucker Informed Consent and Wavier Agreement H,\HOME\COMMDEV\MASTERS\COUNCll AGENDA STA TEMENT.doc 3-d-- AGENCY RESOLUTION NO. AND COUNCIL RESOLUTION NO. JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA WAIVING CONFLICT OF INTEREST IN CONNECTION WITH RUTAN & TUCKER, LLP'S REPRESENTATION OF THE CITY OF CHULA VISTA, THE REDEVELOPMENT AGENCY AND THE OLSON COMPANY WHEREAS, the City of Chula Vista and the Redevelopment Agency are currently employing the legal services of Rutan & Tucker, LLP on a number of important City and Agency issues, including cable television taxation and redevelopment plan amendments; and WHEREAS, Rutan & Tucker, LLP also represents The Olson Company, a builder of affordable urban communities in California, on many of the redevelopment housing projects it undertakes; and WHEREAS, The Olson Company has commenced discussion with a developer that may lead to a City housing/redevelopment project involving for sale and apartment units and wishes Rutan & Tucker, LLP to represent them with respect to this project; and WHEREAS, in order to continue as counsel for all parties (City, Agency, and Olson), Rutan & Tucker must notify its affected clients of the situation and wishes to assure them that its loyalty and quality of work will not be influenced by factors other than the client's best interest. NOW, THEREFORE, BE IT RESOLVED the City Council and Redevelopment Agency of the City of Chula Vista do hereby waive the conflict of interest in connection with Rutan & Tucker, LLP's representation of the City of Chula Vista, the Redevelopment Agency and The Olson Company in its present form. BE IT FURTHER RESOLVED, if, over time, the conflict of interest being waived became too direct or untenable, the City Council and Redevelopment Agency reserves the right to withdraw the waiver and terminate Runtan & Tucker as counselor ask the firm to discontinue representing The Olson Company. Approved as to form by DCv-- '(. ~ fe",- John M. Kaheny City Attorney and Agency Counsel J:ICOMMDEVlRESOSIRutan & Tucker.doc ..3-3 Nov-I4-01 05:36pm From-RUTAN & TUCKER llP 0 +7145469035 T-44Z POZ/04 H55 ..~,.."-".,, ,-"..~.........."."' TAN ;:::.~,:,ö:"'.;::".. :;::~.:"~:~~ ~.:";;','~. :~:~,;'¡~::,;,,":-~ :-"~~:~~,:;=.. I J .~.,.,.",~"n ,,-~'.~..~,", ,...,.._. .."o,_....,~- -...-."','" "" ... ho. ,,0"""'_"0 ",.....,e...","~ ...".""'." "",..,_".00." ~'-"-"""" Q~ I." CKER ;:;;:.::',~:::;:' ::':::~::";;,::""'~ ;;;?~:,'::::~:,.. :::-:,~:::-;::." :~::'-,-,~~':':' ~t~ E y 5 ~ T C ~ ~ ~~~~:S~fi~"" ~iib~~~. @~~~~~1i ~~~;~~~~~:.," p ",¡RS"IP "(,uO,,C 'RomSIO", (0",0"",0" Ë~~":~~:~' ~~~~:~~::P'Q g:è~:r êf.~g:i:" ^ , . .<.",P ...". .,", ,......"". .~..",<"".. ..."". ..,..~ ," ,.TO' BOu.."RD FOuR""'H "OOR .., ....- ,..,<T,"""""" .".,., ""', ""'" ""0" cOST. ...IS,. (""0.,,, ""D-"" ~::::..;.~';:_.. :::::~.:,~'i:~" =~-,~:"::,.:'~'o, ::~:::".';¡;i::~"'" o,,~.," O..«T"""," TO 'O'1O"'CE'O"'" ~....'"~.. .""".,,.... "'~""". .....,"',. .o"~o",.._." CO", ~", C""O"""""-I'" :::,~,::::::"..:":~o"o, :;;;:."::,:.:':... ~';~;:~-...... :;:'.:,.;0;-':';'.0. :::::':~f":;~' '" T"".O"",...<1.",oF,C"M,,E'h."o-'U.s ,..".-.'" ""'~QO." "rl"""".~ -,."..,'.. """" "DO"" .-- ""." <om ;::;=;~~~:'^' ~;;;;-':'¿:~:~ ;;;::'~:::".:";;",",'" ;;;::,'~..o'o,- ";,;:~::'~,';;;' DireCT Dial. (714) 641-3~37 E-maIl; dslarer@M"".com November 14, 2001 ViA F ACSIMILf: AND FIRST CLASS MAlL Glen R. Googins Assistant City Anomey City of Chula Vista 276 Fowth Avenl-le Ch¡¡la Vista, CA 9] 910 Re: Pisclos¡¡re of Conflict oflnlerest and Request for Waiver Pear Glen: AS a follow-¡¡p to our telephone conversation today I am writing to request approval by me City of Chula Vista ("City") and Chula Vista Redevelopment Agency ("Agency") (collectively, "Chula Vista") of me conflict waiver set fonh below. As we discussed, Rulan & T¡¡cker represents The Olson Company ("Olson") on some of the redevelopment housing projects it undertakes. Olson is commencing discussions with Barone Galasso & Associates Incorporate4 that it hopes will lead to a housing project in Chula Vista involving for-sale and apartment units. Olson has requested that I represent it with respect to that project. We anticipate Agency inyolvemenl in the project and entitlement processing witb me City. The conflict waiver issue arises because the Agency recenTly engaged Rlnan & Tucker to assist it with its redevelopment plan amendment process. We also provide legal services to the City on cable television maners. The client relationships described above implicate Rule 3-310 of the California Stale Bar with respect to confUcts of mterest. Thus in the interest of full disclosure we respectfully ask for Chula Vista's infonned written waiver of any actUal or potential conflict of Interest ansmg from Rutan & Tucker representing The Olson Company adverse to Chula Vista while at the same time representing the Agency on the redevelopment plan amendments (and other matters !.Iorelated to the Olson project) on the City on cable television matters (and other matters unrelated to the Olson project). 394o'Jm..-, """01 ,1111<101 3 - t../ Noy-I4-01 05 :36pm From-RUTAN & TUCKER llP D +7145466035 T-442 P 03/04 H65 RUTAN ~ TUCKER, .n 0."". ., .." Glen R. Googins November 14, 2001 PIIge2 The pertiru:m subsections of Rule 3-310 ofrhe Ru¡'~s of Professional Conduct of The Stllte Bar ofClIlifomía state: (C) A member [i.e., the lawyer] shall not, without the informed written consent of each client: (l) Accept representation of more than one client in a matter in which the interests of the clients potentially conflict; or (2) Accept or continue representation of more ¡han one client in a matter in which the interests of ¡he clients a¡;tUally conDict; or (3) Represent a client in ¡¡ matter and lit the same time in ¡¡ separate matter accept as a client a person or entitY whose interest in the first matter is adverse to ¡he dient in the fiI"$t maner. (E) A member [i.e., the lawyer] shall not, withOut The informed written ¡:;onsent of ¡he client or fonner client, accept employment adverse to the client or fonner client where, by reason of the representation of the client or former client, the member has obtained confidenti¡¡l information material to the employment. We also make this request for Chula Vista's informed written consent bec¡¡use of the general rule mat a lawyer owes a client a duty of loyalty which, among other things, requires a lawyer to exercise judgment that is not influenced by factors other than the client's best interests. We do not believe our representanon of The Olson Company in the housing project described above compromises our representation of ¡he Agency on the redevelopment plan amendments, 01U' representation of the CitY on cable television maners, or any finure represent¡¡tion of the Agency or City on maners llIU'elated to ¡he Olson project. Chula Vista should be aware of its right to seek its own legal advice (obviously through Y°1U' office) regarding the natUre and effect of the representations described in this letter and The infonned wriTten consent requested. If providing the consent/waiver is acceptable to Chula Vista, please have the appropnate authorities of me City and Agency sign and date this letter in the spaces provIded below and return this letter to me in the enclosed reply envelope. A copy of this letter is enclosed for yoLlr files. )-21>.'-<>001 "....O! ,11",,01 ,J-S- Nov-14-01 05 :36pm From-RUTAN & TUCKER llP 0 +7145469035 T-442 P 04/04 H65 RUTAN &TUCKER, ,"O"," " "," Glen R. Googins November 14, 2001 Page 3 Please comact me witÞ any questions or concerns. We appreciate yo14r promp~ attention to this request. Very uuly yours, RUT AN & TUCKER, LLP ídu, {M;- Dan Slater Encl. "" '" '" '" . INFORMED CONSENT REGARDING REPRESENTATION AND WAIVER OF CONFLICT OF INTEREST On behalf of the City of Ch14la Vista and the Chula Vista Rec!evelopment Agency, I have react and understand the contents of this letter and hereby consent 10. and hereby knowingly and expressly waive any conflict of interest arising fÏ'om, the law firm of Rutan & Tucker. LLP (1) provic!ing legal represc:mation to The Olson Company and related entities adverse to the City of Chula Vis~a and Chula Vista Redevelopment Agency as described above, and (ii) represenùng the Chula Vista Redevelopment Agency on the redevelopment plan amendments and other matters in the fUrure ¡ha~ are unrei:ned to ~he Olson project, and representing ~he City of Chula Vista on cable television and other matters in the fUrore tlIat are unrelated to ¡he Olson project. CITY OF CHULA VISTA By: Title: Mavor Dated: CHULA VISTA REDEVELOPMENT AGENCY By: Title: Chair Dated: ",",,°""'-0001 ""'..0", "'4'0, ..;.-Co CITY COUNCIL/REDEVELOPMENT AGENCY/HOUSING AUTHORITY AGENDA STATEMENT 4 ITEM NO.: MEETING DATE: 11 /20/01 ITEM TITLE: CONSIDERATION OF THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS AND APPROVAL AND EXECUTION OF THE NECESSARY DOCUMENTS AND APPROVAL OF THE AGENCY'S LOAN AND REGULATORY AGREEMENTS FOR THE HERITAGE TOWN CENTER MULTIFAMILY RENTAL HOUSING DEVELOPMENT RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,400,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF THE HERITAGE TOWN CENTER MULTIFAMILY RENTAL HOUSING PROJECT, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF ANY AND ALL DOCUMENTS NECESSARY TO ISSUE THE BONDS AND IMPLEMENT THIS RESOLUTION, AND RATIFYING AND APPROVING ANY ACTION HERETOFORE TAKEN IN CONNECTION WITH THE BONDS RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA [A] APPROVING A LOAN AGREEMENT AND RELATED RESTRICTIVE COVENANTS AND THE AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND SOUTH BAY COMMUNITY VILLAS, L.P. AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT AGENCY TO EXECUTE SAID AGREEMENTS; [B] APPROPRIATING $4,400,000 FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR FINANCIAL ASSISTANCE TO SOUTH BAY COMMUNITY VILLAS, L.P.; [C] APPROVING A TEN YEAR DEFERRAL OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND WAIVER OF THE PARK FEE AND RESIDENTIAL CONSTRUCTION TAX; AND [D] APPROVING A DEFERRAL AGREEMENT FOR THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT FOR THE DEVELOPMENT AND OPERATION OF HERITAGE TOWN CENTER SUBMlnED BY: COMMUNITY DEVE~?PMENT DIRECTOR L-~- iù-\ tç REVIEWED BY: CITY MANAGER f9¿ OfV' 4/5THS VOTE: YES 0 NO D 4 - f PAGE 2, ITEM NO.: MEETING DATE: 11/20/01 BACKGROUND On May 29, 2001, the Housing Authority of the City of Chula Vista held 0 public hearing and approved Housing Authority Resolution No. 18 which expressed the Authority's intent to issue multi- fomily housing revenue bonds to finonce 0 proposed 271 unit multi-family rental housing project for low and moderate income households, known as "Heritage Town Center", within the Otay Ranch master planned community. Additionally, the City Council and Agency conditionally approved financial assistance in the form of a residual receipts loan from the Agency's Low and Moderate Income Housing fund in an amount not to exceed $4.4 million and a deferral and waiver of certain City fees (reference Agency Resolution 1730 And Council Resolution No. 2001-1). Since that time, the developer, South Bay Community Villas, loP., received a commitment of 2001 private activity bonds for multi-family rental housing projects from the Colifornia Debt Limit Allocotion Committee (CDLAC). At this time, the Housing Authority is asked to approve a bond resolution authorizing the issuance of $15,400,000 in tax-exempt bonds for the financing of the project and execution in substantial form and other related documents. As 0 condition of the Agency's financial assistance, the developer is to enter into a loan and regulatory agreement with the Agency and the City specifying the terms of the financial assistance and use of the project os an affordable housing development for low and moderate-income households for a period of fifty-five (55) years. The required Loan Agreements and Related Restrictive Covenants and Affordable Housing Agreement have been prepared ond are attached as Attachments 1 and 2, respectively. RECOMMENDATION It is recommended that the Housing Authority and Redevelopment Agency take the following octions: 1. Thot the Housing Authority adopt a resolution authorizing the issuonce, sale and delivery of Multi-family Housing Revenue Bonds Series A of 2001 (Heritage Town Center Apartments) in a principal amount not to exceed $15,400,000, and approving in substantial form related documents, ond authorizing official action. 2. That the Agency and City Council [a] approve a loan agreement and related restrictive covenants in substantial form; the affordable housing agreement by and between the Redevelopment Agency and South Boy Community Villos, LP and authorizing the Chairman of the Redevelopment Agency to execute soid agreement; [b] appropriating $4,400,000 from the unappropriated bolance in the Low and Moderate-Income Housing fund to South Bay Community Villas; [cl approve a ten year deferral of the poyment of the applicable Public Focilities Development Impoct Fee for the senior units ($238,238)and a waiver of the Residential Construction Tax ($74,020) and Park Fee ($355,466) subject to the Developer dedicating an additional 1.8 acres of land for a future community park; and [d] approve the City Deferral Agreement in substantially the form presented to the City, subject to such revisions os may be made 4-;)... PAGE 3, ITEM NO.: MEETING DATE: 11/20/01 by the City Monoger or his designee subject to the review and approvol of the City Attorney, and authorizing the Mayor to execute soid agreement BOARDS/COMMISSIONS RECOMMENDATION On Februory 7, 2001, the Housing Advisory Commission voted to recommend the development of the proposed Heritage Town Center and the use of tax-exempt bonds and Low and Moderate Income Housing Set-aside funds to finance the project. On January 22, 2001, the Design Review Committee reviewed the proposed plans and recommended opproval of the project. On November 7, 2001, the Planning Commission voted to recommend a series of amendments to the Otay Ranch SPA One Plan. As recommend the Plan will be revised to reflect a reallocation of dwelling units to Neighborhood C1, which will allow for the development of the proposed 91 senior housing units. Council will consider the amendments at such time this item is considered. Subsequently, on November 14, 2001, the Commission approved a recommendation to the City Council to waive the applicable Residential Construction Tax for the project. DISCUSSION THE PROPOSED PROJECT South Bay Community Villas, loP., a partnership between The Otay Ranch Company and South Bay Community Services, has proposed the development of a total of 271 housing units within a mixed use commerciol project to satisfy their affordoble housing obligotion for Otay Ranch Section Planning Area (SPA) One. Of the 271 units, the 91 one bedroom units above the commercial space is proposed specifically for senior citizens. The site is in the finol permitting stages with the City and the graded, fully improved site, is expected to be available to the Developer by Jonuary 2002. INCOME AND RENT RESTRICTIONS The Loan Agreements and Related Restrictive Covenants for the Agency's financial assistonce restrict rents and occupancy of 49 percent of the 271 units (131 units) for lower income households, with 30 units for very low at 50 percent of the Areo Medion Income (AMI) and 101 units for low income households at 60 percent of AMI. The requirements of the other funding sources will result in the remaining units being affordable for households at 60 percent of AMI. The Agency's affordability and low income restrictions is limited to only 49 percent of the units and therefore, the project is exempt under Article XXXIV of the State Constitution. Article XXXIV of the California Constitution requires that voter approval be obtoined before any "state public body" develops, constructs or acquires a "low rent housing project". Projects which are less than 50 percent restricted are not considered "public housing" for purposes of Article XXXIV. 4-3 PAGE 4, ITEM NO.: MEETING DATE: 11/20/01 The income and rent restrictions outlined above are incorporated into the Affordable Housing Agreement, the Agency's regulatory agreement, and the Loan Agreement for the Agency loan, which will be recorded against the property. These agreements ore being presented for consideration by the Agency. PROPOSED FINANCING OF PROIECT It is estimated that the proposed total project cost will be $30,904,000 with $15,400,000 to be poid by bond proceeds ond approximately $9,388,000 to be covered by low income housing tax credits, $4,400,000 in Agency assistance, $1,200,000 in deferred Developer fee, ond a $516,000 cosh contribution from the Developer. Additionally, City Council conditionolly approved the deferred payment of the Public Facilities Development Impact Fee (PDIF) ($238,238) for 10 years, the waiver of the Residential Construction Tax (RCT) ($74,200), ond the waiver of the Park fee ($355,466 for land and improvements) in exchange for the developer dedicating an additional 1.8 acres for a future community park. Finol opproval of the woiver of the RCT was contingent upon 0 recommendation of the Planning Commission to City Council. The developer has submitted to the City an Irrevocable Offer of Dedication of property for its future use as a community park, which is inclusive of the required 1.8 acres. BOND STRUCTURE The City is being asked to authorize the issuance of a series of bonds to finance the construction of Heritage Town Center. These bonds would be rated MA by virtue of a credit enhancement provided by Fannie Mae. ISSUER FEE As issuer of the bonds, the City will receive issuer fees related to the costs of issuance of the bonds and ongoing monitoring of the project for compliance with the Regulatory Agreement. The stondard origination fee and annual administrative fee is 0.25 percent of the bond proceeds. 8ased upon negotiations with the Developer, staff is recommending an origination fee and an annual administrative fee of 0.13 percent, estimated at $19,250. The Developer has, in turn, agreed to maintain the affordability of the low income units for a period not less than 55 years, exceeding the 30 year term of the bonds. BOND DOCUMENTS The Authority is being asked to approve in substantial form all documents related to the bond issuance. These documents are as follows and are on file in the Office of the City Clerk due to the subsfontiallength of the documents, with exceptions as noted: 4-'-1 PAGE 5, ITEM NO.: MEETING DATE: 11/20/01 . The Trust Indenture for the Series A Bonds is 0 document which specifies the terms ond conditions for the issuance and selling of the bonds ond the use of bond proceeds. . The Financing Agreement and loan Agreement for the Series A Bonds, respectively, are documents which specify the terms and conditions of the Mortgage loon financing the Project. . The Regulatory Agreement is a document which specifies the regulations for the use and operation of the Project (see Attachment 4). . The Subordinotion Agreement is 0 document which specifies the terms and conditions for the subordinate loans on the project. . The Contract of Purchase, also known as the Bond Purchase Agreement, for the Series A Bonds set forth the terms upon which Newman and Associates, Inc. will buy the bonds from the City. . The Preliminory Official Stotement describes for investors the terms of the Series A Bonds (see Attachment 5). . The Assignment of Mortgage loan provides for the assignment by the City to the bond trustee of its interest in the Series A mortgage loan. Redevelopment AaencY Loan/City Assistance Agency assistance will be provided strictly for the development of the residential units and will be in the form of a residual receipts loan secured by a promissory note and deed of trust. The outstanding principal and interest on the loan will be repaid over fifty-five years and shall accrue with simple interest at 3 percent per annum. Payment of principal and interest, or portions thereof, on the Agency loan shall be made on an annuol basis, out of 0 fund equal to fifty (50%) percent of the net cash flow of the project (Residual Receipts) after debt service on bonds, payment of deferred developer fee, and reasonable operating expenses have been paid. The terms of the loan are incorporated into the Agency Loan Agreement and Related Restrictive Covenants. The City will help to reduce the costs of the project by the approval of 0 deferred payment of the PDIF the 91 senior units for ten years and the waiver of other additional fees as previously discussed. The terms for the deferral of the PDIF are incorporated into the City PDIF Deferral Agreement (see Attachment 3). FISCAL IMPACT All costs related to the issuance of the bonds will be paid for from bond proceeds or profits. The bonds will be secured by the project and will not constitute a liability or obligation to the City. Some staff time costs will be associated with monitoring complionce with the Regulatory Agreement. Those costs will be reimbursed from an origination fee of 0.13 percent of the bond proceeds, estimated at $19,250, and on annual odministrative fee of 0.13 percent of the bond proceeds to be paid by the Developer to the City for 30 year period. The Agency loan of $4,400,000 will be appropriated from the unappropriated balance in the Low/Moderate Income Housing Set-oside funds for the project. Currently, the Agency's Low and Moderate Income Housing Set-Aside fund has an available balance of approximately $4.5 4-5' PAGE 6, ITEM NO.: MEETING DATE: 11/20/01 million. Any repayment of this loon will be deposited into the Low ond Moderate Income Housing Set-aside fund for further use in providing affordable housing programs. The woiver of the Park fee and RCT for the 271 housing units for low and moderate- income households equates to approximately $355,466 and $74,200, respectively. The waiver of the Park fee and the RCT is contemplated by Chulo Vista Municipal Code § 17.10.070 (Park fee) ond 3.32.050 (RCT). ATTACHMENTS The following are attached: 1. Agency Loan Agreement and Related Restricted Covenants 2. Agency Affordable Housing Agreement 3. City PDIF Deferral Agreement 4. Bond Regulatory Agreement 5. Series A Preliminary Official Statement The following are on file in the Office of the City Clerk: 6. Series A Trust Indenture 7. Series A Financing Agreement 8. Series A Subordination Agreement 9. Series A Contract of Purchase 10. Series A Assignment of Mortgage Loan 4-&> HOUSING AUTHORITY RESOLUTION NO. A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,400,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION AND CONSTRUCTION OF THE HERITAGE TOWN CENTER MULTIFAMILY RENTAL HOUSING PROJECT, APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF ANY AND ALL DOCUMENTS NECESSARY TO ISSUE THE BONDS AND IMPLEMENT THIS RESOLUTION. AND RATIFYING AND APPROVING ANY ACTION HERETOFORE TAKEN IN CONNECTION WITH THE BONDS WHEREAS, pursuant to Section 34312.3 of the California Health & Safety Code ("Housing Law"), the Housing Authority of the City of Chula Vista (the "Authority") is empowered to issue revenue bonds for the purpose of financing the acquisition, construction, rehabilitation refinancing or development of multifamily rental housing; and WHEREAS, South Bay Community Villas. L.P., a California limited partnership (the "Borrower"), on behalf of itself intends to acquire and construct a 271-unit project located in the Otay Ranch area of the City of Chula Vista (the "Project"); and WHEREAS, the Borrower has requested the Authority to issue multifamily housing revenue bonds and loan the proceeds of the bonds to the Borrower to finance the acquisition and construction of the Project; and WHEREAS, the Board of Commissioners of the Authority (the "Board") desires to assist the Borrower by making a portion of the units in the Project available for low and very low income persons or families, and in order to accomplish such purposes it is desirable for the Authority to provide for the issuance of the bonds and financing of the Project; and WHEREAS, the Authority will loan the proceeds of the bonds to the Borrower; and WHEREAS, Fannie Mae will, subject to the satisfaction of certain conditions, facilitate the financing of the Project by causing the issuance of a credit facility (the "Credit Facility") guaranteeing payments of principal and interest on the loan; and WHEREAS, Government Code Section 50191 requires a local agency to file an application with the California Debt Limit Allocation Committee (the "Committee") prior to the issuance of tax-exempt multifamily housing revenue bonds; and WHEREAS, the Committee has allocated to the Project $15,400,000 of the State of California 2001 State ceiling for private activity bonds under Section 146 of the Internal Revenue Code of 1986. NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing Authority of the City of Chula Vista, as follows: DOC s OC\8 54 94Ov 2\2403 6. 0027 4-? 1. In accordance with the Housing Law and pursuant to the Indenture (hereinafter defined), the Authority is authorized to issue the bonds in one or more series to be designated "Housing Authority of the City of Chula Vista, California Multifamily Housing Revenue Bonds (Heritage Town Center Apartments), Series A of 2001," in an aggregate principal amount not to exceed $15,400,000 (the "Bonds"), with an interest rate or rates, a maturity date or dates and other terms as provided in the Indenture as finally executed for the Bonds. The Bonds shail be in the forms set forth in and otherwise in accordance with the Indenture, and shall be executed by the manual or facsimile signature of the Chair or the Executive Director of the Authority and the manual or facsimile seal of the Authority shall be impressed or reproduced thereon and attested by the manual or facsimile signature of the Secretary of the Authority. 2. The form of trust indenture (the "Indenture"), between the Authority and Wells Fargo Bank, National Association, as trustee (the "Trustee"), in substantially the form presented to the Board, a copy of which is on file in the office of the Executive Director, is approved for the Bonds. Anyone of the Chair or Executive Director or any designee thereof (each, an "Authorized Officer") is authorized to execute, and the Secretary of the Authority is authorized to attest, the Indenture in substantially said form, with such additions thereto and changes therein as such Authorized Officer may approve or recommend in accordance with Section 8 hereof. The date, maturity date or dates, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption, and other terms of the Bonds shall be as provided in the Indenture as finally executed. 3. The form of financing agreement (the "Financing Agreement"), among the Authority, the Borrower and the Trustee, in substantially the form presented to the Board, a copy of which is on file in the office of the Executive Director, is approved. Any Authorized Officer is authorized to execute, and the Secretary of the Authority is authorized to attest, the Financing Agreement, in substantially said form, with such additions thereto and changes therein as such Authorized Officer may approve or recommend in accordance with Section 8 hereof. 4. The form of regulatory agreement and declaration of restrictive covenants (the "Regulatory Agreemenf'), among the Authority, the Trustee and the Borrower, in substantially the form presented to the Board, a copy of which is on file in the office of the Executive Director, is approved. Any Authorized Officer is authorized to execute, and the Secretary of the Authority is authorized to attest, the Regulatory Agreement, in substantially said form, with such additions thereto and changes therein as such Authorized Officer may approve or recommend in accordance with Section 8 hereof. 5. The form of assignment and intercreditor agreement (the "Assignment"), among the Authority, the Trustee and Fannie Mae, in substantially the form presented to the Board, a copy of which is on file in the office of the Executive Director, is approved. Any Authorized Officer is authorized to execute, and the Secretary of the Authority is authorized to attest, the Assignment, in substantially said form, with such additions thereto and changes therein as such Authorized Officer may approve or recommend in accordance with Section 8 hereof. 6. The Authority is authorized to sell the Bonds to Newman & Associates, Inc. (the "Purchaser") and Fannie Mae pursuant to the terms and conditions of a bond purchase contract (the "Purchase Contract") among the Authority, the Borrower and the Purchaser and, should Fannie Mae buy all or a portion of the Bonds, Fannie Mae, in substantially the form DOCSOCl854940v2\24036.0027 4-? presented to the Board, a copy of which is on file in the office of the Executive Director, and such Purchase Contract is approved for the Bonds. Any Authorized Officer is authorized to execute, and the Secretary of the Authority is authorized to attest, the Purchase Contract, in substantially said form, with such additions thereto and changes therein as such Authorized Officer may approve or recommend in accordance with Section 8 hereof. 7. The form of the Preliminary Official Statement presented at this meeting is hereby approved and the Purchaser is hereby authorized to distribute the Preliminary Official Statement to prospective purchasers of the Bonds substantially in the form hereby approved, together with such additions thereto and changes therein as are determined necessary by the Executive Director of the Authority, or his written designee, to make such Preliminary Official Statement final as of its date for purposes of Rule 15c2-12 of the Securities and Exchange Commission, including, but not limited to, such additions and changes as are necessary to reflect the terms imposed by any rating agency or Fannie Mae or to make the information therein accurate and not misleading. Each Authorized Officer is hereby authorized to execute a final Official Statement in the form of the Preliminary Official Statement, together with such changes as are determined necessary by the Authorized Officer to make such Official Statement complete and accurate as of its date. The Purchaser is further authorized to distribute the final Official Statement for the Bonds and any supplement thereto to the purchasers thereof upon its execution on behalf of the Authority as described above. 8. Any Authorized Officer executing a document approved herein, in consultation with General Counsel to the Authority and Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California, Bond Counsel, is authorized to approve and make such modifications, changes or additions to the Indenture, the Financing Agreement, the Regulatory Agreement, the Assignment, the Purchase Contract, the Preliminary Official Statement and the final Official Statement, or other document as may be necessary or advisable, and the approval of any modification, change or addition to any of the aforementioned agreements shall be evidenced conclusively by the execution and delivery thereof by such Authorized Officer. 9. All actions heretofore taken by the officers, employees and agents of the Authority with respect to the issuance and sale of the Bonds are approved, confirmed and ratified, and the officers, employees and agents of the Authority are authorized and directed, for and in the name and on behalf of the Authority, to do any and all things and take any and all actions and execute and deliyer any and all certificates, agreements and other documents, including, but not limited to, those documents described in the Indenture and the other documents herein approved, which they, or any of them, may deem necessary or advisable in order to consummate the iawful issuance and delivery of the Bonds and to effectuate the purposes thereof and of the documents herein approved in accordance with this resolution and resolutions heretofore adopted by the Board. In the event that the Secretary of the Authority is unavailable to sign any document related to the Bonds, any Deputy Secretary of the Authority may sign on behalf of the Secretary. 10. All prior resolutions or parts thereof in conflict with this resolution herewith are, to the extent of such conflict, repealed. 11. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any remaining sections, paragraphs or provisions of this resolution. DOCS oas 54 9 4Ov 2\24036 . 002 7 4-1 12. This resolution shall take effect immediately upon its adoption. Presented by Approved as to form by &,~ / Chris Salomone - Director of Community Development DOC S 0C\8 54 940 v 2\240 3 6. 002 7 4-10 RESOLUTION NO. (COUNCil RESOLUTION NO. ) JOINT RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA [A] APPROVING A LOAN AGREEMENT AND RELATED RESTRICTIVE COVENANTS AND THE AFFORDABLE HOUSING AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY AND SOUTH BAY COMMUNITY VILLAS, L.P. AND AUTHORIZING THE CHAIRMAN OF THE REDEVELOPMENT AGENCY TO EXECUTE SAID AGREEMENTS; [B] APPROPRIATING $4.400,000 FROM THE UNAPPROPRIATED BALANCE IN THE LOW AND MODERATE INCOME HOUSING FUND FOR FINANCIAL ASSISTANCE TO SOUTH BAY COMMUNITY VILLAS, L.P.; [C] APPROVING A TEN YEAR DEFERRAL OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND WAIVER OF THE PARK FEE AND RESIDENTIAL CONSTRUCTION TAX; AND [D] APPROVING A DEFERRAL AGREEMENT FOR THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT FOR THE DEVELOPMENT AND OPERATION OF HERITAGE TOWN CENTER WHEREAS, California Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct the Redevelopment Agency of the City of Chula Vista (the "Agency") to expend a certain percentage of all taxes which are allocated to the Agency pursuant to Section 33670 for the purposes of increasing, improving and preserving the community's supply of low and moderate income housing available at affordable housing cost to persons and families of low- and moderate-income, lower income, and very low income; and WHEREAS, pursuant to applicable law the Agency has established a Low and Moderate Income Housing Fund (the "Housing Fund"); and WHEREAS, pursuant to Health and Safety Code Section 33334.2(e), in carrying out its affordable housing activities, the Agency is authorized to provide subsidies to or for the benefit of very low income and lower income households, or persons and families of low or moderate income, to the extent those households cannot obtain housing at affordable costs on the open market, and to provide financial assistance for the construction and/or rehabilitation of housing which will be made available at an affordable housing cost to such persons; and WHEREAS, pursuant to Section 33413(b), the Agency is required to ensure that at least 15 percent of all new and substantially rehabilitated dwelling units developed within a project area under the jurisdiction of the Agency by private or public entities or persons other than the Agency shall be available at affordable housing cost to persons and families of low or moderate income; and WHEREAS, South Bay Community Villas, L.P, a partnership between The Otay Ranch Company and South Bay Community Services, ("Developer") proposes to construct a multifamily housing development consisting of 91 units for senior citizens and 180 units of family housing, within the Otay Ranch master planned community. The residential units will consist of 30 units affordable to very low income households at or below 50 percent of the Area Median Income ("AMI"), with 10 of those units for senior citizens, 101 units affordable to low-income households at or below 60 percent of AMI, with 33 units for senior citizens, and the remainder of the units affordable to moderate income households at or below 120 percent of the Area Median Income, with 47 of these moderate income units for senior citizens, to be located on East Palomar Street between Santa Rita Avenue 4 - ( ( and Santa Andrea Avenue within a mult~family and commercial area identified in the Otay Ranch Village 1 tentative map as R47 & C1 ("Project"); and WHEREAS, the Developer requires assistance to reduce the development costs for the construction of the residential units in order to make the Project feasible; and WHEREAS, Chula Vista Municipal Code § 17.10.070 provides that the City Council may waive all or any portion of the park lands dedication or fee requirements upon finding that said waiver will stimulate the construction of housing for low and moderate-income families; and WHEREAS, in accordance with Chula Vista Municipal Code §3.32.050, the Planning Commission may recommend that the City Council waive all or a portion of his tax for any dwelling-unit types constructed which would serve as housing for low and moderate-income families; and WHEREAS, by a vote of the Planning Commission approved a recommendation to waive the applicable Residential Construction Tax for the Project, estimated at $74,200; and WHEREAS, the City of Chula Vista (the "City") wishes to defer for a ten year period the applicable Public Facilities Development Impact Fee (PDIF) for the 91 senior housing units ($238,238) and waive the Park Fee ($355,466 for land and improvements) and Residential Construction Tax ($74,200) to assist in reducing the development costs for the construction of the residential units ofthe Project; and WHEREAS, in order to carry out and implement the Redevelopment Plan for the Agency's redevelopment projects, the City's Consolidated Plan and the affordable housing requirements and goals thereof, the Agency and City propose to enter into an Agency Loan Agreement and Related Restricted Covenants (the "Agency Loan Agreement") and the City PDIF Deferral Agreement (the "Deferral Agreement"), respectively, with the Developer, together with an "Affordable Housing Agreement" which would be recorded as an encumbrance to the Project, pursuant to which the Agency would make a loan to the Developer (the "Agency Loan"), and the Developer would agree to develop and operate the Project in accordance with the requirements of the Agency Loan Agreement, restrict occupancy of 131 of the apartment units in the Project to very low and lower income households and 140 of the apartment units to moderate income households, and rent those units at an affordable housing cost; and WHEREAS, the Agency Loan Agreement will leverage the investment of the Agency by requiring the Developer to obtain additional financing for the construction and operation of the Project through a combination of a loan obtained from the proceeds of multifamily mortgage revenue bond financing and an equity contribution by a limited partner investor in consideration for the "4% Tax Credits" to be generated by the Project; and WHEREAS, in carrying out its affordable housing activities, the Agency may subordinate its affordability covenants or restrictions to the lien, encumbrance, or regulatory agreement of a lender or from a bond issuance providing financing of rental units if certain requirements, as specified in Health and Safety Code Section 33334.14(a), are met; and 4-/2-- WHEREAS, the Project is located outside of the Agency's redevelopment project areas, but the acquisition, construction and operation of the Project pursuant to the Loan Agreement would benefit the Agency's redevelopment project areas by providing affordable housing for persons who currently live and work within those redevelopment project areas; and WHEREAS, the Agency has adopted an Implementation Plan pursuant to Health and Safety Code Section 33490, which sets forth the objective of providing housing to satisfy the needs and desires of various age, income and ethnic groups of the community, and which specifically provides for the development and operation of rental housing units through Agency assistance; and WHEREAS, the Agency Loan Agreement furthers the goals of the Agency to facilitate the creation of affordable housing which will serve the residents of the neighborhood and the City as set forth in the Implementation Plan and the Consolidated Plan; and WHEREAS, the Legislature declares in Health and Safety Code Section 37000, et seq., that new forms of cooperation with the private sector, such as leased housing, disposition of real property acquired through redevelopment, development approvals, and other forms of housing assistance may involve close participation with the private sector in meeting housing needs, without amounting to development, construction or acquisition of low rent housing projects as contemplated under Article XXXIV of the State Constitution; and WHEREAS, Health and Safety Code Section 37001 provides that a low rent housing project under Article XXXIV of the State Constitution does not include a development which is privately owned housing, receiving no ad valorem property tax exemption, other than exemptions granted pursuant to subdivision (1) or (g) of Section 214 of the Revenue and Taxation Code, and less than 49 percent of the units within the Project will be occupied by persons of low and very low income; and WHEREAS, the Project will not receive any ad valorem property tax exemption, other than exemptions granted pursuant to subdivision (1) or (g) of Section 214 of the Revenue and Taxation Code, and the Agreement restricts less than 49 percent of the units within the Project to persons of low and very low income; and WHEREAS, Health and Safety Code Section 37001.5 provides that a public body does not develop, construct, or acquire a low rent housing project under Article XXXIV of the State Constitution when the public body provides assistance to a low rent housing project and monitors construction and/or rehabilitation of the project to the extent of carrying out routine governmental functions, performing conventional activities of a lender, and imposing constitutionally mandated or statutorily authorized conditions accepted by a grantee of assistance; and WHEREAS, the Loan Agreement provide for assistance by the Agency to the Project, and the Agency's monitoring of construction of the Project to the extent of carrying out routine governmental functions, performing conventional activities of a lender, and imposing constitutionally mandated or statutorily authorized conditions accepted by a grantee of assistance; and WHEREAS, the Agency have duly considered all terms and conditions of the proposed Agency Loan Agreement and Affordable Housing Agreement and believes that the Loan Agreement and Affordable Housing Agreement are in the best interests of the Agency and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable State and local law requirements; 4 - (.2> NOW, THEREFORE, THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA DO RESOLVE AS FOLLOWS: Section 1. The Agency hereby finds that the use of funds from the Agency's Low and Moderate Income Housing Fund pursuant to the Loan Agreement, for the development and operation of real property will be of benefit to the Agency's redevelopment project areas for the reasons set forth above. Section 2. The Agency hereby finds that an economically feasible alternative method of financing the Project on substantially comparable terms and conditions, without subordination, isnot reasonably available and the Agency will receive written commitments reasonably designed to protect the Agency's investment in the event of default. Section 3. The Agency hereby determines that the Project is not a "low rent housing project" within the meaning of Article XXXIV of the State Constitution, and that the assistance to be provided pursuant to the Loan Agreements does not constitute development, construction or acquisition of a low-rent housing project within the meaning of Article XXXIV of the State Constitution. This Resolution is hereby deemed to constitute a final approval of a proposal which may result in housing assistance benefiting persons of low income, within the meaning of Health and Safety Code Section 36005. Section 4. The Agency hereby [A] approves the Agency Loan Agreement and Affordable Housing Agreement in substantially the form presented to the Agency, subject to such revisions as may be made by the Agency Executive Director or his designee subject to the review and approval of the Agency Attomey, and the Chairman of the Agency is hereby authorized to execute the Loan Agreement and Affordable Housing Agreement on behalf of the Agency and [B] appropriates $4.400,000 from the unappropriated balance in the Low And Moderate Income Housing Fund for financial assistance to South Bay Community Villas, LP. for the development and operation of Heritage Town Center. A copy of the Loan Agreement and Affordable Housing Agreement when executed by the Agency shall be placed on file in the office of the Secretary of the Agency and the City Clerk. Section 5. The City Council finds pursuant to Chula Vista Municipal Code § 17.10.070 that the waiver of the Park Fee will stimulate the production of housing for low and moderate-income families. Section 6. The proceedings and all evidence introduced before the Planning Commission at their meeting held on November 14, 2001, and the minutes and resolutions resulting therefrom, are hereby incorporated into the record of this proceeding. Section 7. The City Council hereby [A] approves a ten year deferral of the payment of the applicable Public Facilities Development Impact Fee for the 91 senior housing units in the approximate amount of $238,238, a waiver of the Residential Construction Tax in the approximate amount of $73,075 and a waiver of the Park Fee in the approximate amount of $355.466 and the Residential Construction Tax in the approximate amount of $74,200 to assist with reducing the development costs for the construction of the residential units of the Project subject to the Developer dedicating an additional 1.8 acres of land for a future community park and [B] approves the City Deferral Agreement in substantially the form presented to the City, subject to such revisions as may 4- f <I be made by the City Manager or his designee subject to the review and approval of the City Attorney, and the Mayor is hereby authorized to execute the Deferral Agreement on behalf of the City. A copy of the Deferral Agreement when executed by the Mayor shall be placed on file in the office of the City Clerk. Section 8. The Executive Director of the Agency (or his designee) is hereby authorized, on behalf of the Agency, to make revisions to the Loan Agreement and Affordable Housing Agreement which do not materially or substantially increase the Agency's obligations thereunder or materially or substantially change the uses or development permitted on the Site, to sign all documents, to make all approvals and take all actions necessary or appropriate to carry out and implement the Loan Agreement and Affordable Housing Agreement and to administer the Agency's obligations, responsibilities and duties to be performed under the Loan Agreement, Affordable Housing Agreement and related documents. Any such revisions or modifications to the Loan Agreement or the Affordable Housing Agreement are subject to the review and approval of the Agency Attorney. PRESENTED BY APPROVED AS TO FORM BY ~ ~ " . ..? jJt.CC"~ "~ ~t..J:"c Chris Salomone Director of Community Development 4-1S-