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HomeMy WebLinkAbout2010-027 - Approval of a Disposition and Development AgreementJF 06/03/'10 RESOLUTION NO. 2010-027 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CONSENTING TO THE APPROVAL OF A DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA AND SANTA ANA STATION DISTRICT, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AND MAKING FINDINGS IN CONNECTION THEREWITH BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Sections 33334.2 and 33334.6 of the California Redevelopment Law, Health and Safety Code Section 33000, et seq. ("CRL"), authorize and direct the Community Redevelopment Agency of the City of Santa Ana ("Agency") to expend a certain percentage of all taxes which are allocated to the Agency pursuant to CRL Section 33670 for the purposes of increasing, improving and preserving the community's supply of housing available at an affordable housing cost to persons and families of very low, low, and moderate income; and B. Pursuant to applicable provisions of the CRL, the Agency has established a Low and Moderate Income Housing Fund ("Housing Fund"); and C. Pursuant to 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 income 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, and to provide financial assistance for the construction and rehabilitation of housing which will be made available at an affordable housing cost to such persons; and D. Pursuant to CRL Section 33413(b), the Agency is required to ensure that at least 15 percent of all new and substantially rehabilitated dwelling units developed within a project area under the jurisdiction of the Agency by private or 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 Resolution No. 20'10-027 Page 1 of 6 E. The Agency currently owns certain real property ("Agency Parcels") located within the City of Santa Ana ("City"), which property is also partially located within the geographic boundaries (the "Project Area"') of the Merged Project ("Merged Project"), and is attempting to acquire other real property that is currently owned by third parties ("Additional Properties") (the Agency Parcels and Additional Properties are collectively referred to as the "Site"); and F. Santa Ana Station District, LLC, a California limited liability company ("Developer"), has proposed to acquire the Site from the Agency, to construct on the Site affordable rental housing that will be available to and occupied by persons and families of very low income and extremely low income, affordable for-sale housing that will be available to and occupied by persons and families of moderate income, and market rate for-sale housing that will be available to all buyers (collectively, the "Developer Project"); and G. In order to carry out and implement the Redevelopment Plan for the Merged Project and the affordable housing requirements thereof, the Agency proposes to enter into a Disposition and Development Agreement ("Agreement") with the Developer, pursuant to which the Agency would convey the Site to the Developer and the Developer would agree to construct the Project in accordance with the requirements of the Agreement, restrict occupancy of the rental housing to persons and families of very low income and extremely low income, and restrict occupancy of a portion of the for-sale housing to persons and families of moderate income, all as more particularly set forth in the Agreement; and H. Pursuant and subject to the terms of the Agreement, the Agency will provide the following financial assistance to the Developer Project: (i) loans to the Developer in the amount of Ten Million Eight Hundred Thousand Dollars $10,800,000) for Phase R-1 (as defined in the Agreement) of the Developer Project and Four Million Seven Hundred Seventy Thousand Dollars ($4,770,000) for Phase R-2 (as defined in the Agreement) of the Developer Project (collectively, the "Agency Loan- Rental Component"); (ii) a loan to the Developer in the amount of One Million Five Hundred Thousand ($1 ,500,000) for Phase FS (as defined in the Agreement) of the Developer Project (Agency Loan -Phase FS) and (iii) a loan to each qualified Moderate Income Homebuyer of an Affordable For-Sale Unit (as defined in the Agreement) in the amount of up to Thirty Thousand Dollars ($30,000) to be deposited by the Agency into the applicable escrow for each Homebuyer of an Affordable For-Sale Unit and disbursed by the escrow agent to the Developer upon each Homebuyer closing and purchase of an Affordable For-Sale Unit (each, a "Homebuyer Assistance Loan"); and, Resolution No. 2010-027 Page 2 of 6 I. The Agency's financial assistance to the Project, including the Agency Loan and each Homebuyer Assistance Loan, will be funded from the Agency's Housing Fund; the Project is not financially feasible without the Agency's financial assistance; and J. Each qualified Moderate Income Homebuyer of an Affordable For-Sale Unit that is to receive a Homebuyer Assistance Loan will enter into a Homebuyer Loan Agreement with the Agency substantially in the form attached to the Agreement as Attachment No. 1 1 ; and K. With respect to the portion of the Project that is located within the Project Area of the Merged Project, the acquisition, construction and operation of the Project pursuant to the Agreement will benefit the Project Area by providing affordable housing for persons who currently live and work within the Project Area; with respect to the portion of the Project that is located outside the Project Area of the Merged Project, the acquisition, construction and operation of the Project pursuant to the Agreement will be of benefit to the Merged Project; and L. The Agency has adopted an Implementation Plan pursuant to CRL Section 33490, which sets forth the objective of providing housing to satisfy the needs and desires of various constituent elements of the community; and M. The Agreement furthers the goals of the Agency set forth in the Implementation Plan as it will facilitate the creation of affordable housing which will serve the residents of the neighborhood and the City; and N. The Developer has submitted to the Agency and the City Council copies of the Agreement substantially in the form submitted herewith; and O. Pursuant to CRL Section 33433, the Agency is authorized, with the approval of the City Council after a duly noticed public hearing, to convey the Site for development pursuant to the Redevelopment Plan upon a determination by the City Council that such conveyance will either assist in the elimination of blight or provide housing for low- or moderate-income persons, that the consideration for such conveyance is not less than the fair market value or fair reuse value of the Site in accordance with the covenants and conditions governing the conveyance of the Site and development costs required thereof, as well as the particular uses to be conducted by the Developer at the Site, and that the conveyance under the terms and conditions set forth in the Agreement is consistent with the Implementation Plan which has been adopted by the Agency for the Merged Project; and Resolution No. 2010-027 Page 3 of 6 P. A joint public hearing of the Agency and City Council on the proposed Agreement was duly noticed in accordance with the requirements of CRL Sections 33431 and 33433; and Q. The proposed Agreement and a summary report meeting the requirements of CRL Section 33433, were available for public inspection prior to the joint public hearing consistent with the requirements of CRL Section 33433; and R. On June 7, 2010, the Agency and City Council held a joint public hearing on the proposed Agreement, at which time the City Council and the Agency reviewed and evaluated all of the information, testimony, and evidence presented during the joint public hearing; and S. All actions required by all applicable law with respect to the proposed Agreement have been taken in an appropriate and timely manner; and T. The City has reviewed the summary required pursuant to CRL Section 33433 and evaluated other information provided to it pertaining to the findings required pursuant to CRL Section 33433; and U. The City Council has previously determined, in its adoption of the ordinance approving the Merged Project, that the portion of the Site located within the Project Area is part of a blighted area and is underutilized, as further set forth in the Implementation Plan previously adopted and amended by the Agency pursuant to CRL Section 33490; and V. The Agreement would assist in the alleviation or removal of blighting conditions and provide housing for low- or moderate-income persons and would further the goals of the Implementation Plan by providing for the development of such housing; and W. The City Council has duly considered all terms and conditions of the proposed Agreement and believes that the Agreement is in the best interests of the Agency and the 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; and X. In compliance with the California Environmental Quality Act (CEQA) (Public Resources Code § 21000 et seq_), the City Council, as the Lead Agency under CEQA, has certified Final Environmental Impact Report No. 2006-02 prepared for the Transit Zoning Code (SD No. 84) and the Developer Project, adopted a Mitigation Monitoring and Reporting Program, adopted all findings required by CEQA, and adopted a Statement of Overriding Considerations. Resolution No. 20'10-027 Page 4 of 6 Section 2. The foregoing recitals are true and correct and are hereby incorporated by reference as if set forth in full in this Resolution. Section 3. The City Council hereby finds and determines that, based upon substantial evidence provided in the record before it, the use of funds from the Agency's Low and Moderate Income Housing Fund pursuant to the Agreement constitutes a lawful expenditure of such funds and will be of benefit to the Project Area for the reasons set forth in this Resolution. Section 4. The City Council hereby finds and determines that, based upon substantial evidence provided in the record before it, the consideration .for the Agency's conveyance of the Site to the Developer pursuant to the terms and conditions of the Agreement is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the Agreement. Section 5. The City Council hereby finds and determines that, based upon substantial evidence provided in the record before it, the Agency's conveyance of the Site to the Developer for development pursuant to the Agreement and the CRL will eliminate blight and provide housing for low- or moderate-income persons. Section 6. The City Council hereby finds and determines that, based upon substantial evidence provided in the record before it, the Agreement is consistent with the provisions and goals of the Implementation Plan. Section 7. The City Council hereby consents to the approval by the Agency of the Agreement in substantially the form presented to the Agency, subject to such revisions as may be made by the Executive Director of the Agency or his or her designee. A copy of the Agreement when executed by the Agency shall be placed on file in the office of the City Clerk. Section 8. The City Council acknowledges that the Executive Director of the Agency is authorized, on behalf of the Agency, to make revisions to the Agreement which do not materially or substantially increase the Agency's obligations thereunder or materially or substantially change the uses or development permitted on the Site, to sign all documents, to make all approvals and take all actions necessary or appropriate to 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. ADOPTED this 7th day of June, 201 O. Resolution No. 2010-027 Page 5 of 6 --. __ arlos Bustaman~ CTi AP OV D FORM: J s Fle er ' y ttorney AYES: Councilmembers: Benavides, Bustamante, Martinez, Tinaiero (4) NOES: Councilmembers: None (O) ABSTAIN: Councilmembers: None (O) NOT PRESENT: Councilmembers: Alvarez, Pulido, Sarmiento (3) CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2010-027 to be the original ordinance adopted by the City Council of the City of Santa Ana on June 7, 2010, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: O 7~a~.~vio ~n~-~-~~"7. ~~ ~~ Clerk of the Council City of Santa Ana Councilmember Bustamante appointed as meeting chairman pursuant to SAMC 2-101 due to unavailability of Mayor and Mayor Pro Tem. Resolution No. 2010-027 Page 6 of 6