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HomeMy WebLinkAbout03-018 CC ResolutionRESOLUTION NO. 03-18 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND HABITAT FOR HUMANITY THE CITY COUNCIL Of THE CITY Of TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Temecula hereby finds, determines and declares that: A. The Redevelopment Agency of the City of Temecula ("Agency") is a community redevelopment agency duly organized and existing under the Community Redevelopment Law ("CRL"), Health and Safety Code Sections 33000 et seq. and has been authorized to transact business and exercise the powers of a redevelopment agency pursuant to action of the City Council of the City of Temecula. B. On June 12, 1988, the Board of Supervisors of the County of Riverside adopted Ordinance No. 658 adopting and approving the "Redevelopment Plan for Riverside County Redevelopment Project No. 1988-1" (hereafter the "Plan") in accordance with the provisions of the CRL. On December 1, 1989, the City of Temecula was incorporated. The boundaries of the Project Area described in the Plan are entirely within the boundaries of the City of Temecula. On April 9, 1991, the City Council of the City of Temecula adopted Ordinances Nos. 91-08, 91-11, 91-14, and 91-15 establishing the Redevelopment Agency of the City of Temecula and transferring jurisdiction over the Plan from the County to the City. Pursuant to Ordinance Nos. 91-11 and 91-15, the City of Temecula and the Redevelopment Agency of the City of Temecula assumed jurisdiction over the Plan as of July 1,1991. C. The Disposition and Development Agreement ("Agreement") approved by this Resolution is intended to effectuate the Redevelopment Plan for the Agency's Redevelopment Project Area No. 1988-1, as amended, by contributing certain real property and providing financial assistance to be used by the Developer to develop a home-ownership project within the Pujol neighborhood consisting of six (6) single family homes (collectively the "Project"), to be sold exclusively to persons and families of Iow income as defined in Section 50093 of the California Health and Safety Code. D. The Agreement is also intended to effectuate the objectives of the Agency and the City of Temecula (the "City") in complying with their obligation to provide Iow and moderate income housing pursuant to the Health and Safety Code of California and the goals of the City's Housing Element to the Temecula General Plan. The Developer's development of the Project and the fulfillment generally of this Agreement are in the best interest of the City and the welfare of its residents, and in accordance with the public purposes and provisions of applicable federal, state, and local laws and requirements. E. Pursuant to the provisions of Health & Safety Code Sections 33430, 33431 and 33433, on February 11, 2003 the Agency duly noticed and held a joint public hearing before the Board of Directors of the Redevelopment Agency of the City of R;/Resos 2003/Resos 03-18 1 Temecula and the City Council of the City of Temecula concerning the approval of the proposed Disposition and Development Agreement with Developer. F. Pursuant to the requirements of Health & Safety Code Section 33433, a comprehensive report summarizing and analyzing the proposed Disposition and Development Agreement. The report specifically contains the information required by Section 33433 and has been prepared within the time limit set forth therein and made available for public review from the date of the first publication of the notice of public hearing. G. The conveyance of the property as proposed by the Disposition and Development Agreement is at less than fair market rental value based on the Agency's real estate analysis. Therefore, the Agency Board specifically finds in accordance with the authority of Health & Safety Code Section 33433 that: (1) the sales price is not less than the fair reuse value of the Site; and (2) said difference is necessary to effectuate the provisions of the Plan and to allow development and housing opportunities to come to the City and Project Area and increase employment opportunities within the City and the Project Area. H. The development of the Project as required by the Agreement will assist in the elimination of blight in the Project Area as identified in the proceedings establish- ing the Project Area in that development of Project on the Site will: (1) Establish development standards and the rehabilitation and improvement of obsolete, deteriorating, and inappropriate buildings and housing stock; (2) consolidate irregular parcels into a site appropriate for development; (3) encourage and provide for development of vacant properties in accordance with the Plan and the Old Town Specific Plan; and (4) preserve, improve, and expand housing opportunities for Iow income residents. I. The Agreement is consistent with the Redevelopment Plan and the Implementation Plan adopted by the Agency for the Project Area adopted by the Agency. J. The redevelopment of the Project site as provided in the Agreement and is consistent with the City's General Plan and the Old Town Specific Plan. K. The Agency is specifically authorized by Health & Safety Code Sections 33430, 33431 and 33433, and other applicable law, to enter into the Disposition and Development Agreement. L. The Agency Board and the City Council has duly considered all terms and conditions of the proposed Agreement and believes that such agreement is in the best interests of the Agency and City 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. M. This Agreement pertains to and affects the ability of all parties to finance and carry out their statutory purposes and to accomplish the goals of the Plan and is intended to be a contract within the meaning of Government Code Section 53511. R:/Resos 2003/Resos 03-18 2 Section 2. The City Council of the City of Temecula hereby further finds, determines and declares that: A. Section 33334.2, et seq. of the CRL authorizes and directs the Agency to expend a certain percentage of all taxes which are allocated to the Agency pursuant to the CRL Section 33670 for the purposes of increasing, improving and preserving the community's supply of housing available at affordable housing costs to persons and families of Iow to moderate income, including lower income and very Iow income households. B. Pursuant to the CRL, the Agency has established a Low and Moderate Income Housing Fund (the "Housing Fund"). C. Pursuant to the CRL 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 Iow and lower income households, or persons and families of Iow or moderate income to the extent those households cannot obtain housing at affordable costs on the open market. D. Developer proposes, with the assistance of the Agency, to develop the Project and upon completion to make available for the longest feasible period of time all of the housing units in the Project at affordable rents to Iow to moderate income households. E. Pursuant to Sections 33132, 33133, and 33600 of the CRL, the Agency may accept financial or other assistance from any public or private source, for the Agency's activities, powers, and duties, and expend any funds so received for any of the purposes of the CRL. F. The expenditures from the Housing Fund as contemplated by the Agreement approved by this Resolution will directly and specifically increase, improve, and preserve the community's supply of Iow and moderate income housing within the meaning of Health and Safety Code Section 33334.2 and will be of benefit to the Project Area by providing new housing which restricted so as to be affordable for occupancy by very Iow income, lower income and median income households. G. The California 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 Iow rent housing projects as contemplated under Article XXXIV of the State Constitution and that the Agreement approved hereby is not subject to the provisions of said Article XXXIV. Section 3. The City Council hereby finds and determines that the lien of the covenants required pursuant to the Agreement may be subordinated to financing for the Project because an economically feasible alternative method of financing the Project on substantially comparable terms and conditions, but without subordination, is not reasonably available. R:/Resos 2003/Resos 03-18 3 Section 4. While the Agency and City determine that participation in the feasibility analysis, financing, and development of the Project does not constitute development, construction or acquisition of a Iow-rent housing project within the meaning of Article XXXIV of the State Constitution, this Resolution is hereby deemed to constitute approval within the meaning of Health and Safety Code Section 37001.5 of a proposal which may result in housing assistance benefiting persons of Iow income. Section 5. The approval of this Agreement by the Agency and City constitutes an action by the Agency to implement an adopted Housing Assistance Plan by acquiring interests in housing units to assure they are affordable to persons of Iow and moderate income. Therefore, the Project is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15326 of the CEQA Guidelines (Title 14 of the California Code of Regulations). Additionally, the Project is: (1) consistent with the applicable General Plan designation and all applicable General Plan Policies as well as with applicable zoning designation and regulations; (2) the Project occurs with in the city limits of the City of Temecula on a project site of less than five acres substantially surrounded by urban uses; (3) the Project site has no value as habitat for endangered, rare, or threatened species; (4) approval of the Project would not result in any significant effects relating to traffic, noise, air quality, or water quality; and (5) the Site can be adequately served by all required utilities and public services. Therefore, the Project is and "in-fill project" and is exempt from the provisions of the California Environmental Quality Act pursuant to Section 15280 of the CEQA Guidelines (Title 14 of the California Code of Regulations). The Executive Director of the Agency is directed to file a Notice of Exemption of this action as required by CEQA and the CEQA Guidelines. Section 6. The City Council of the City of Temecula hereby approves that certain agreement entitled "Disposition and Development Agreement by and Between Temecula Redevelopment Agency and Habitat for Humanity Inland Valley, Inc." with such changes in each document as may be mutually agreed upon by the Developer and the Agency Executive Director as are in substantial conformance with the form of such Agreement which on file in the Office of the Agency Secretary. Section 7. The City Clerk shall certify the adoption of this Resolution. PASSED, APPROVED AND ADOPTED by the City Council of the City of Temecula at a regular meeting held on the 11th day of February, 2003. A'I-rES.T: Jeffrey E. Stone, Mayor R:/Resos 2003/Resos 03-18 4 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan Jones, CMC, City Clerk of the City of Temecula, do hereby certify that Resolution No. 03-18 was duly and regularly adopted by the City Council of the City of Temecula at a regular meeting thereof, held on the 11th day of February, 2003, by the following vote, to wit: AYES: 4 COUNCIL MEMBERS: Comerchero, Naggar, Pratt, Stone NOES: 0 COUNCIL MEMBERS: None ABSENT: I COUNCIL MEMBERS: Roberts ABSTAIN: 0 COUNCIL MEMBERS: None City Clerk R:/Resos 2003/Resos 03-18 5