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HomeMy WebLinkAbout98-11 RDA ResolutionRESOLUTION NO. RDA 98-11 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA APPROVING THAT CERTAIN AGREEMENT ENTITLED "DISPOSITION AND DEVELOPMENT AGREE- MENT" AND THAT CERTAIN GROUND LEASE BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA AND TEMECULA GARDENS, L.P., EACH DATED AS OF JULY 1, 1998 FOR THE REDEVELOPMENT OF CERTAIN PROPERTY WITHIN REDEVELOPMENT PROJECT NO. 1--1988 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 CCRL"), 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. 1-1988" (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 project proposed by Temecula Gardens, L. P. ("Developer") pertains to property located at 28485, 28497, 28534, 28535, 28545, 28555, 28559, and 28565 Pujol Street in the City of Temecula ("Site"), which is within the Project Area. R: resos\rda98-11 1 D. The Project to be developed on the Site pursuant to the Disposition and Development Agreement ("Agreement") will consist of the rehabilitation of 38 existing rental units and the construction of 38 new rental units. All units on the Site will be available at rents affordable to persons and families of low or moderate income. E. Pursuant to the provisions of Health & Safety Code Sections 33430, 33431 and 33433, on July 14, 1998 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 and Ground Lease 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 and the Ground Lease. 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 lease of the Site as proposed by the Disposition and Development Agreement and the Ground Lease 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 lease 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 Are a and increase employment opportunities within the City and the Project Area. H. The development of the Site as required by the Agreement will assist in the elimination of blight in the Project Area as identified in the proceedings establishing the Project Area in that development of Project on the Site will: (1) Establish development stand ards 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. 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 Site as provided in the Agreement and Ground Lease 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 and Ground Lease. R:resos\rda98-11 2 L. The Agency Board 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. Section 2. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby further f'mds, 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. Pursuant to the CRL Section 33413(b), the Agency is required to ensure at least fifteen percent (15 %) of all new and substantially rehabilitated dwelling units developed within the Project Area by private of public entities or persons other than the Agency shall be available at affordable housing cost to persons and families of low or moderate income, and such inclusionary units may be provided outside the boundaries of the Project Area in conformity with the requirements of CRL Section 33413(b)(2)(A)(ii). 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 fmancial 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. R:resos\rda98-11 3 G. 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 low 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 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 Agreement approved hereby is not subject to the provisions of said Article XXXIV. Section 3. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby further finds, determines and declares that: A. An Initial Study of Environmental Impact and a Negative Declaration has been prepared for the Disposition and Development Agreement by and between the Agency and Developer and circulated in accordance with the provisions of the California Environmental Quality Act and the State CEQA Guidelines. The Initial Study and Negative Declaration of Environmental Impact is on file in the Office of the Secretary of the Agency. B. Prior to approving the Project, the Board of Directors of the Agency and the City Council considered the Initial Study of Environmental Impact and the Negative Declaration, together with any comments received during the public review process. C. The Agency Board specifically finds and determines that on the basis of the Initial Study of Environmental Impact and any comments received in the public review process, there is no substantial evidence before the Council and the Agency that the Project will have a significant effect on the environment. As a result of the Initial Study and any comments received during the public review process, the Project will not result in any adverse effect, either individually or cumulatively, on wildlife (as defined by Section 711.2 of the Fish and Game Code) or on wildlife habitats and resources. Section 4. Based upon the findings set forth above, the Board of Directors of the Redevelopment Agency of City of Temecula hereby certifies and approves the Negative Declaration of Environmental Impact for the Project and directs the Executive Director to file a Notice of Determination with the County Clerk of the County of Riverside forthwith. R:resos\rda98-11 4 Section 5. 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 6. 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, and Health and Safety Code Sections 37001 and 37001.5. Section 7. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby approves that certain agreement entitled "Disposition and Development Agreement" between the Redevelopment Agency of the City of Temecula, a public body corporate and politic, and Temecula Gardens, L.P. dated as of July 1, 1998, and that certain "Ground Lease" between the Redevelopment Agency of the City of Temecula, a public body corporate and politic, and Temecula Gardens, L.P. dated as of July 1, 1998, with such changes in each document as may be mutually agreed upon by the Developer and the Agency Executive Director as are minor and in substantial conformance with the form of such Agreement and Ground Lease as are on file in the Office of the Agency Secretary. The Chairperson of the Agency is hereby authorized to execute the Agreement, including related exhibits and attachments, and the Ground Lease on behalf of the Agency. A copy of the final Agreement and Ground Lease when executed by the Agency Chairperson shall be placed on file in the Office of the Secretary of the Agency. Section 8. 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 Agreement and Ground Lease and to administer the Agency's obligations, respon- sibilities and duties to be performed under the Agreement, Ground Lease and related documents, including but not limited to, escrow instructions, certificates of acceptance, and implementing agreements. Section 9. The Board of Directors of the Redevelopment Agency of the City of Temecula hereby terminates and rescinds that certain agreement entitled "Disposition and Development Agreement" between the Redevelopment Agency of the City of Temecula, a public body corporate and politic, and Temecula Gardens, L.P. dated as of May 26, 1998, and that certain "Ground Lease" between the Redevelopment Agency of the City of Temecula, a public body corporate and politic, and Temecula Gardens, L.P. dated as of May 26, 1998, as adopted by Resolution No. RDA 98-09 on May 26, 1998 and hereby authorizes the Executive Director to execute on behalf of the Agency such documentation as may be required to effectuate the termination of said Agreement and Ground Lease. Section 10. The Secretary of the Agency shall certify the adoption of this Resolution. R:resos\rda98-11 5 PASSED, APPROVED AND ADOPTED by the Board of Directors of the Redevel- opmere Agency of the City of Temecula on July, 14, 1998. ATTEST: [SEAL] R:resos\rda98-11 6 STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF TEMECULA SS I, Susan W. Jones, Secretary of the Redevelopment Agency of the City of Temecula, do hereby certify that the Resolution No. RDA 98-11 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 on July 14, 1998, by the following vote, to wit: AYES: 4 AGENCYMEMBERS: Comerchero, Ford, Roberts, Lindemans NOES: 0 AGENCYMEMBERS: None ABSTAIN: 1 AGENCYMEMBERS: Stone Susar[ W. Jonps, CMC ency Sectelgr3~ity Clerk R:resos\rda98-11 7