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HomeMy WebLinkAboutRDA Reso 2011-2039RDA RESOLUTION NO. 2011-2039 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROVING A COOPERATION AGREEMENT WITH THE HOUSING AUTHORITY OF THE CITY OF CHULA VISTA; COMMITTING FUNDS AND CONSENTING TO THE PAYMENT OF THOSE FUNDS TO THE HOUSING AUTHORITY FOR COSTS ASSOCIATED WITH CERTAIN REDEVELOPMENT AGENCY FUNDED HOUSING PROJECTS; MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND APPROPRIATING FUNDS THEREFOR WHEREAS, the Chula Vista Redevelopment Agency (the "Agency") is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (Califomia Health and Safety Code Section 33000 et sec .); and WHEREAS, the Chula Vista Housing Authority (the "Authority") is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Housing Authorities Law of the State of California (California Health and Safety Code Section 34200 et seg.); and WHEREAS, the Agency was established to exercise and undertake redevelopment activities for purposes of implementing the Redevelopment Project Areas (the "Project Areas"), including Merged Bayfront/Town Centre I Project Area (Bayfront and Town Centre I) and Merged Chula Vista Project Area (Otay Valley, Southwest, Town Centre II, and Added Area); and WHEREAS, the Agency has adopted Redevelopment Plans for the Agency's redevelopment project areas and the affordable housing requirements and goals thereof; and WHEREAS, the current Five-Year Implementation Plan for the Redevelopment Project Areas (Implementation Plan) (adopted in Resolution No. 2009-2015 and incorporated herein by reference) sets out goals to support affordable housing. To implement the programs and activities associated with each goal, the Agency has made redevelopment fund commitments based on estimated available tax increment revenue and debt financing structures; and WHEREAS, Califomia Health and Safety Code Sections 33334.2 and 33334.6 authorize and direct 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-incomes; and RDA Resolution No.2011-2039 Page 2 WHEREAS, on November 2, 2010, the City and Agency adopted Resolution No. 2010-254 (Agency 2010-2030) certifying a list of four (4) affordable housing developers to collaboratively work with City staff and a Chula Vista Redevelopment Corporation (CVRC) subcommittee to examine service gaps and identify ideal locations to meet the City's most pressing affordable housing needs and contribute to catalyst development concurrently; and WHEREAS, City staff has worked with the affordable housing developers and the CVRC subcommittee to determine a strategy to increase and prioritize affordable housing opportunities (the "Affordable Housing Strategy"); and WHEREAS, on the 26th day of January, 2011, the City's Housing Advisory Commission, held a public meeting to consider and comment on the Affordable Housing Strategy; and WHEREAS, the Affordable Housing Strategy identified the Northwest area of the City as a focus of the Agency's resources and potential sites for affordable housing projects have been identified in this area and generally within the Project Area, and will be of benefit to the Project Area and the low and moderate-income residents of the community; and WHEREAS, the Agency and the Authority propose to enter into a Cooperation Agreement (Agreement) to provide for the implementation of affordable housing projects set forth in the Schedule of Projects attached to the Agreement as "Exhibit 1" (Projects), and to require the Agency to advance funds to the Authority in accordance with the Payment Schedule attached to the Agreement as "Exhibit 2," for the Authority's cost of performing its obligations under the Agreement, subject to all of the terms and conditions of the Agreement; and WHEREAS, no other reasonable means of financing said Projects and the programs and activities associated therewith are available other than with Agency funds; and WHEREAS, the programs and activities associated with the Projects include, but are not limited to, administration, acquisition and disposition of property, development of design criteria, design, planning, feasibility studies, permitting, preparation of construction bid documents, financial and economic analysis, financing, new construction, rehabilitation of existing improvements and structures, remediation of hazardous materials, elimination or removal of blighting conditions, and monitoring and enforcement of affordable housing covenants and other requirements pursuant to applicable law; and WHEREAS, all buildings and improvements thereof of the Projects shall not be owned or operated by the Agency or Authority; and WHEREAS, potential sites may also be located outside of the Project Area, and Health and Safety Code section 33334.2 permits funds to be used outside of the Project area when it is determined that it would be a benefit to the project to do so and for the reasons set forth in the Staff Report prepared in conjunction with this Agreement, the Redevelopment Plan, the Implementation Plan, and the Housing Element (as found in the General Plan) all of which are incorporated herein by reference, it would be a benefit to the project to use such funds outside the Project Area; and RDA Resolution No. 20] 1-2039 Page 3 WHEREAS, the payment of funds by the Agency for the costs related to said Projects and the programs and activities associated therewith is consistent with the Implementation Plan adopted pursuant to Section 33490 of the California Redevelopment Law ("CRL"); and WHEREAS, the Agency has reviewed evidence, including testimony, if any, prepared and/or submitted in connection with this matter, and has determined that the foregoing recitals, and each of them, are true and correct, and further has determined that the provision of the Projects is in the best interests of the City and 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; and WHEREAS, the Agency has reviewed the proposed Cooperation Agreement between the Authority and the Agency; and WHEREAS, the Agreement has been reviewed for compliance with Califomia Environmental Quality Act (CEQA) and the State CEQA Guidelines (CEQA Guideline) and the Agreement is not a "project' for the purposes of CEQA and the CEQA Guidelines because, consistent with the CEQA Guidelines Section 15738(6)(4), while the Agreement commits the Agency to fund an affordable housing program, with potential projects identified, it does not commit the Housing Authority to implement any particular housing project without appropriate environmental review. Notwithstanding the foregoing, the determination of what constitutes a "project' under CEQA is complex and may be the subject of differing interpretation and, accordingly, if the Agreement is determined to be a "project" under CEQA, for the reasons stated herein, there is still no possibility that the activity may have a significant effect on the environment and, therefore, pursuant to Section 15061(6)(3) of the State CEQA Guidelines, the activity is not subject to CEQA; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred and the Agenda Report accompanying this resolution is incorporated by this reference. NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Chula Vista that: 1. The Agency finds and determines that: (i) the implementation of the Projects constitutes the acquisition of land and the development of affordable housing for low and moderate-income households that are of benefit to the Project Area by, but not limited to, encouraging local accommodations for a diverse workforce and consumers at various income levels, (ii) said Projects and the programs and activities associated therewith are limited without Agency funds; (iii) the acquisition of property and development, construction, rehabilitation, and operation of the Projects are provided for in the Redevelopment Plan and the Implementation Plan; and (iv) the payment by Agency of funds for part of the costs related to said Projects and the programs and activities associated therewith is consistent with the implementation plan pursuant to Section 33490. 2. The Agency finds and determines that the use of the Redevelopment Low and Moderate- Income Housing Funds for the Projects that include low and moderate-income housing located outside of the Project Areas will be of benefit to the community because the use of such funds will be of benefit to the Project Areas in accordance with Health &Safety Code Sec. 33334.2, in that, but not limited to: (i) the use of the Agency's Low and Moderate- RDA Resolution No. 2011-2039 Page 4 Income Housing Funds from the Project Area as a revenue fund for low and moderate- income housing projects regazdless of their location provides a consistent, institutional financing mechanism for low and moderate-income housing within the City of Chula Vista; (ii) the revenue enables the Agency to expedite and maximize housing production and capacity to provide financial assistance based upon project viability, not project location; (iii) the provision of affordable housing is, in itself, a fundamental purpose of redevelopment; (iv) any increase in or preservation of the stock of available housing for low and moderate-income households benefits the surrounding azea and the City of Chula Vista, including the Project Area providing the funds, by encouraging local accommodations for a diverse workforce and consumers at various income levels throughout the City of Chula Vista; (v) the acquisition, rehabilitation, preservation and/or construction of affordable housing helps fulfill the goals of the Redevelopment Plan and Implementation Plans of the Project Areas, which includes improving, promoting and preserving the positive neighborhood characteristics of the Project Areas, promoting varied housing opportunities, supporting and promoting the growth and vitality of the Project Area business environment and providing direction, purpose and climate for combined public and private investment which will result in benefits to the community as a whole; (vi) that such use of funds will prevent anover-concentration of affordable housing in one location and will promote an economically diverse community; and (vi) a maximum of one-half credit for each affordable housing unit produced outside of the Project Areas may be credited towazds the housing obligations defined within its Redevelopment Plan and its Five-Year Implementation Plan in exchange for funding affordable housing outside the Project Areas. 3. The Agency finds and determines that payment for part of the costs related to said Projects and the programs and activities associated therewith and entering into the Cooperation Agreement are consistent with and are provided for in the Implementation Plan for the Community Project Area. 4. Further, the implementation of the Projects provided for by the Cooperation Agreement will further the Agency's goals and objectives as set forth in the Redevelopment Plan and Implementation Plan. 5. The Agency hereby commits, allocates, encumbers, and agrees to pay up to Twenty-Four Million Dollars ($24,000,000) to pay for part of the costs related to said Projects and the programs and activities associated therewith. 6. The Agency authorizes and directs the Executive Director of the Agency or his designee to execute on behalf of the Agency the Cooperation Agreement substantially in the form submitted herewith and with such changes as approved by the Executive Director and Agency Counsel that are consistent herewith. The Agency further authorizes and directs staff to take all actions necessary and appropriate to implement the participation by the Agency pursuant to the Cooperation Agreement, including without limitation issuance of warrants. 7. The Agency authorizes and directs the Executive Director of the Agency or his designee to do all acts and things which may required of them by this Resolution or which may be necessary or desirable to carry out the issuance or execution of the Cooperation Agreement as provided by this Resolution and all matters incidental thereto. All such acts and things heretofore done are hereby approved, ratified, and confirmed. RDA Resolution No. 2011-2039 Page 5 8. The Agency authorizes and directs the Executive Director of the Agency or his designee to transfer to the Housing Authority available fund balance of the Redevelopment I,ow and Moderate Income Housing Funds, future Tax Increment, loan repayments, or other revenue received by the Agency and as described in the Payment Schedule set forth in "Exhibit 2," of the Agreement as authorized. 9. The Agency Secretary is authorized to attest the final form of the Cooperation Agreement on behalf of the Agency. 10. The Agency Secretary shall certify to the adoption of this Resolution. Presented by G Halbert, P.E., AICP ssistant City Manager/Development Services Director Approved as to form by len R. Goggins enc ounsel ~_~ RDA Resolution No. 2011-2039 Page 6 PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of Chula Vista, California, this 8th day of Mazch 2011, by the following vote: AYES: Agency Members: Bensoussan, Castaneda, Ramirez, and Cox NAYS: Agency Members: Aguilar ABSENT: Agency Members: None Cheryl Cox, Chai ers n ATTEST: /-- ~ Eric Crockett, Secretary STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Eric Crockett, Secretary of the Chula Vista Redevelopment Agency, do hereby certify that the foregoing RDA Resolution No. 2011-2039 was duly passed, approved, and adopted by the Redevelopment Agency at a special meeting held on the 8th day of March 2011. Executed this 8th day of Mazch 2011. /- Eric Crockett, Secretary