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