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HomeMy WebLinkAbout05-02 RDA Resolution I I I RESOLUTION NO. RDA 05-02 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING AN OWNER PARTICIPATION AGREEMENT AND LOAN AGREEMENT BETWEEN THE AGENCY AND D'ALTO PARTNERS LLC, A CALIFORNIA LIMITED LIABILITY COMPANY THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The Board of Directors of 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 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 Owner Participation Agreement and Loan Agreement (collectively "Agreements") approved by this Resolution is intended to effectuate the Redevelopment Plan for the Agency's Redevelopment Project Area No. 1988-1, as amended. The specific purpose of the Agreements is to further the Agency's affordable housing goals in the City of Temecula (the "City") by providing a conditional commitment to fund a permanent loan that will be used to pay part of a construction loan for, and thereby facilitate the construction of, eighteen (18) one-bedroom and six (6) two-bedroom apartments for persons of low, very low, and moderate income as defined in Section 50093 of the California Health and Safety Code (i.e. to families earning up to 120% of Riverside median income)on the Site located at APN# 922-024-012-4, Temecula, and thereby increase the supply of affordable housing in the City (the "Project"). D. The Agreements are 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 these R:/RDA Resas 2005/RDA 05-02 I I I Agreements 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. On May 12, 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 Owner Participation Agreement and Loan Agreement with Developer. F. The development of the Project as required by the Agreements 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 low and moderate income residents. G. The Agreements are consistent with the Redevelopment Plan and the Implementation Plan adopted by the Agency for the Project Area adopted by the Agency. H. The redevelopment of the Project site as provided in the Agreements is consistent with the City's General Plan and the Old Town Specific Plan. I. The Agency Board has duly considered all terms and conditions of the proposed Agreements and believes that the Agreements are 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. J: The Agreements pertain to and affect 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 Board of Directors of the Redevelopment Agency 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 R:/RDA Resas 2005/RDA 05-02 2 I I I persons and families of low or moderate income to the extent those households cannot obtain housing at affordable costs on the open market. D. No other reasonable means of private or commercial financing for the new low and moderate income units of the Project is reasonably available to the Agency or the Owner at the same level of affordability and quantity provided by the Agreements. Additionally, while the funds from the Agency's Low and Moderate Income Housing Fund being used assist in the development of the Project do not exceed fifty percent (50%) of the cost to produce the units of the Project, the Agency finds, based on substantial evidence in the record, that the Agency and the Owner have made a good faith attempt but have been unable to obtain commercial or private means of financing the units at the same level of affordability and quantity as provided for the Project. E. 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 low to moderate income households. F. 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. G. The expenditures from the Housing Fund as contemplated by the Agreements approved by this Resolution will directly and specifically increase, improve, and preserve the community's supply of low and moderate income housing within the meaning of Health and Safety Code SectiDn 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, lower income and median income households. H. 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 Agreements approved hereby is not subject to the provisions of said Article XXXIV. Section 3. The Agency hereby finds and determines that the lien of the covenants required pursuant to the Agreements 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 4. 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. R:/RDA Resos 2005/RDA 05-02 3 I I I Section 5. The approval of this Agreements by the Agency 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 low 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 15332 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 Board of Directors of the Redevelopment Agency of the City of Temecula hereby approves that certain agreement entitled "Owner Participation Agreemenf' and that certain agreement entitled "Loan Agreement" each by and Between Temecula Redevelopment Agency and D'Alto Partners LLC, a California limited liability company with such changes in such document as may be mutually agreed upon by the Developer and the Agency Executive Director as is in substantial conformance with the form of such Agreements which are on file in the Office of the Agency Secretary. The Chairperson of the Agency is hereby authorized to execute the Agreements, including related exhibits and attachments on behalf of the Agency. A copy of the final Agreements when executed by the Agency Chairperson shall be placed on file in the Office of the Secretary of the Agency. Section 7. The Executive Director of the Agency (or his designee), is hereby authorized, on behalf of the Agency, to take all actions necessary and appropriate to carry out and implement the Agreements and to administer the Agency's obligations, responsibilities and duties to be performed under the Agreements and related documents, including but not limited to the Promissory Note, Deed of Trust, Regulatory Agreement, acceptances, escrow instructions, certificates of completion and such other implementing agreements and documents as contemplated or described in the Agreements. Section 8. The Secretary of the Agency shall certify the adoption of this Resolution. R:/RDA Resas 2005/RDA 05-02 4 I PASSED, APPROVED AND ADOPTED by the Board of Directors of the Redevel- opment Agency of the City of Temecula, this 10th day of May, 2005. ~QL ATTEST: [SEAL] STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I I, Susan W. Jones, CMC, City Clerk/Agency Secretary of the Redevelopment Agency of the City of Temecula, do hereby certify that the Resolution No. RDA 05-02 was duly and regularly adopted by the Board of Directors of the Redevelopment Agency of the City of Temecula at a meeting thereof, held on May 10th, 2005, by the following vote, to wit: AYES: 5 AGENCY MEMBERS: Comerchero, Edwards, Naggar, Washington, Roberts NOES: ABSENT: o AGENCY MEMBERS: None o AGENCY MEMBERS: None ABSTAIN: o AGENCY MEMBERS: None I R:/RDA Resas 2005lRDA 05-02 5