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HomeMy WebLinkAbout04-05 RDA Resolution I I I RESOLUTION NO. RDA 04-05 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING A DISPOSTION AND DEVELOPMENT AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND AGK GROUP. LLC, FOR THE TEMECULA EDUCATIONAL COMPLEX THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Redevelopment Agency 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 T emecula. 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 the Temecula Educational Complex. The proposed Temecula Educational Complex will be built on a 31.1 acre site located southwesterly of the intersection of Diaz Road and Cherry Street within the Project Area and will consist of the following components subject to the terms of the proposed Disposition and Development Agreement and City approvals: (1) Conference center; (2) two college educational classroom buildings (termed educational towers); (3) central five- story signature tower; (4) amphitheater; (5) support commercial facilities, including day care and retail uses; (6) possible professional and research office space; (7) multi-family housing; and (8) parking areas to support all of the above described uses (collectively the "Project"). The multi-family housing will consist of 273 units of which 50 will be affordable to persons and families of very low income as defined in Section 50105 of the California Health and Safety Code (i.e. to families earning up to 50% of Riverside median income). R:/RDA Resos 20O4/RDA 04-05 I I I 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 low 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 24, 2004 the Agency duly noticed and held a joint public hearing before the Board of Directors of the Redevelopment Agency of the City of 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 a price which is not less than fair market based on the Agency's real estate appraisal and analysis. 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) Facilitate land development which will result in employment opportunities and an expanded tax base; (2) facilitate the development or educational facilities which will assist in providing educational opportunities and job training to residents and workers in the Project Area and the City of Temecula; (3) consolidate irregular and substandard properties into a site appropriate for development; (4) encourage and provide for development of vacant properties in accordance with the Plan; (5) create a mixed use environment to reduce vehicle trips by locating the educational facility in conjunction with residential, retail and day care opportunities; and (6) preserve, improve, and expand housing opportunities for very low income residents. I. The Agreement is consistent with the Redevelopment Plan and the Implementation Plan adopted by the Agency for the Project Area. J. The redevelopment of the Project site as provided in the Agreement and is consistent with the City's General 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 City Council have 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 R:/RDA Resos 20O4/RDA 04-05 I I I in accord with the public purposes and provisions of applicable State and local law requirements. M. Following consideration of the entire record of information received at the public hearings before the Agency and City Council, and due consideration of the proposed Project, the Redevelopment Agency adopted Resolution No. 04-_, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT PREPARED FOR THE TEMECULA EDUCATIONAL COMPLEX PROJECT, THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE AGENCY AND AGK GROUP, LLC. FOR THE DEVELOPMENT OF THE TEMECULA EDUCATIONAL COMPLEX, AND RELATED ACTIONS, AND ADOPTING FINDINGS PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, APPROVING A STATEMENT OF OVERRIDING CONSIDERATIONS, AND APPROVING A MITIGATION MONITORING AND REPORTING PROGRAM IN CONNECTION THEREWITH FOR THE TEMECULA EDUCATIONAL COMPLEX TO BE DEVELOPED ON APPROXIMATELY 31.1 ACRES OF PROPERTY SOUTHWESTERLY OF THE INTERSECTION OF DIAZ ROAD AND CHERRY STREET." The Final Environmental Impact Report (FEIR) and mitigation monitoring reporting program accurately addresses the impacts associated with the approval of the Temecula Educational Complex, the Disposition and Development Agreement, and adoption of this Resolution. N. 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. 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 low to moderate income, including lower income and very low 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 low 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. 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 50 housing units in the Project at affordable rents to very low 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 R:/RDA Resos 20O4/RDA 04-05 I I I 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 very low 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 low 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 low 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. While the Agency determines that participation in the feasibility analysis, financing, and development of the Project 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 approval within the meaning of Health and Safety Code Section 37001.5 of a proposal which may result in housing assistance benefiting persons of low income. Section 4. The Agency 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. Section 5. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby approves that certain agreement entitled "Disposition and Development Agreement" by and Between Redevelopment Agency of the City of Temecula and AGK Group, LLC, a California Limited Partnership, along with the Loan Agreement, Promissory Note and Regulatory Agreement referred to therein, with such changes in such documents as may be mutually agreed upon by the Developer and the Agency Executive Director as is in substantial conformance with the form of such Agreement and the related agreements referred to therein, which are on file in the Office of the Agency Secretary. The Chairperson of the Agency is hereby authorized to execute the Agreement, Loan Agreement, Promissory Note and Regulatory Agreement including the related exhibits and attachments referred to therein, on behalf of the Agency. A copy of the final Agreement and related documents when executed by the Agency Chairperson shall be placed on file in the Office of the Secretary of the Agency. Section 7. Thé Executive Director of the Agency (or his designee). is hereby authorized, on behalf of the Agency, to take all actions necessary and appropriate to approve, execute, carry out and implement the Agreement and to administer the Agency's obligations, responsibilities and duties to be performed under the Agreement and related documents, including but not limited to the Grant Deeds, Loan Agreement, Promissory Note, Deed of Trust, Regulatory Agreement, acceptances, escrow instructions, certificates of completion and such R:/RDA Resos 20O4/RDA 04-05 4 I other implementing agreements and documents as contemplated or described in the Agreement. Section 8. The Secretary of the Agency shall certify the adoption of this Resolution. PASSED, APPROVED AND ADOPTED by the Board of Directors of the Redevel- opment Agency of the City of Temecula this 16th day of March, 2 4. ATTEST: I STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF TEMECULA ) ) ss ) I, Susan W. Jones, CMC, Agency Secretary of the City Council of the City of Temecula, do hereby certify that the Resolution No. RDA 04-05 was duly and regularly adopted by the Board of Directors of the Redevelopment Agency of the City of Temecula at a regular meeting thereof, held march 16th 2004, by the following vote, to wit: AGENCY MEMBERS: Naggar, Stone, Roberts, Washington, Comerchero AYES: 5 NOES: 0 ABSENT: 0 ABSTAIN: 0 AGENCY MEMBERS: None AGENCY MEMBERS: None AGENCY MEMBERS: None I R:/RDA Resos 2004/RDA 04-05 5