R 3781
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RESOLUTION NO. 3781
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE CONSENTING TO THE APPROVAL BY THE
ARROYO GRANDE REDEVELOPMENT AGENCY OF A
SECOND AMENDED AND REST A TED AFFORDABLE HOUSING
AGREEMENT BETWEEN THE AGENCY AND COURTLAND -
ARROYO GRANDE PARTNERS, L.P.
WHEREAS, the Arroyo Grande Redevelopment Agency ("Agency") is a California
redevelopment agency acting under the California Community Redevelopment Law,
Part 1 of Division 24 of the Health and Safety Code (the "Redevelopment Law"); and
WHEREAS, the Redevelopment Plan for the Arroyo Grande Redevelopment Project,
sometimes referred to as the Project (herein, the "Project") was adopted by Ordinance
No. 479CS by the City Council of the City of Arroyo Grande (the "Redevelopment
Plan"). The redevelopment project area for the Redevelopment Plan, as amended
constitutes the "Project Area"; and
WHEREAS, the Agency is authorized and empowered under the Community
Redevelopment Law, California Health and Safety Code Sections 33000, et seq. (the
"Community Redevelopment Law"), to enter into agreements for the production,
improvement, or preservation of affordable housing to households of limited income,
with such housing to be available at affordable rent; and
WHEREAS, the Courtland-Arroyo Grande Partners. L.P., (the "Developer") is
experienced in the development and operation of affordable multi-family housing; and
WHEREAS, the Agency and the Developer previously entered into that certain
Disposition and Development/Affordable Housing Agreement dated as of March 20,
2002 (the "Original Agreement") and that Amended and Restated Affordable Housing
Agreement dated as of December 9, 2003 (the "First Amended Agreement"). The
Original Agreement and the First Amended Agreement together constitute the "Prior
Agreements"; and
-
WHEREAS, the Prior Agreements were approved after a duly-noticed hearing; and
WHEREAS, the Developer and the Agency desire to amend and restate the Prior
Agreements as set forth in the draft Second Amended and Restated Affordable Housing
Agreement (the "Agreement") in the form submitted herewith; and
. WHEREAS, the Developer has a purchase option on certain real property as depicted
on the Site Map attached to the First Amended Agreement and incorporated herein by
this reference (the "Site") located in the City of Arroyo Grande and within the Project
Area of the Agency's Arroyo Grande Redevelopment Project, intends to exercise said
option and acquire the Site, whereupon the Developer shall develop one hundred eight
(108) dwelling units and related improvements, of which one hundred
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. RESOLUTION NO. 3781
PAGE 2
seven (107) units shall be restricted for occupancy by "Seniors" (as defined below) on
the Site and shall thereupon rent a specified number of dwelling units to "Very Low
Income Households," and a specified number of dwelling units to "Low Income
Households" all at "Affordable Rent" and at the "Prescribed Rent Levels," as those
terms are defined below. Such development is intended to implement the Agency's
goals and objectives under the Redevelopment Law to provide decent, safe and
sanitary housing for persons of very low and low income, and to increase, improve and
preserve housing available at affordable housing cost to persons of very low and low
income, pursuant to the Redevelopment Plan and Health and Safety Code Sections
33334.2, et seq., and 33413; and
WHEREAS, the Developer has represented that the Developer has applied for and has
obtained a preliminary reservation of allocation for 9% Low Income Tax Credits as
generally provided for under Section 42 of the Internal Revenue Code and/or California
Revenue and Taxation Code Sections 17057.5, 17058, 23610.4 and 23610.5 and
California Health and Safety Code Section 50199, et seq. ("9% Tax Credits"); and
WHEREAS, the Developer has proposed to enter into the Agreement with the Agency
under which the Developer shall develop one hundred eight (108) dwelling units, with
one hundred seven (107) of those dwelling units to be rented at "Affordable Rent" and at
the "Prescribed Rent Levels" throughout the "Required Covenant Period" (as defined
below); and
WHEREAS, under the Agreement, the Agency will loan certain funds to be repaid from
"Residual Receipts" under the "Agency Note" as defined hereunder. Payment is further
evidenced as the obligation to pay "Residual Receipts Note Payments" under the
"Agency Deed." The Developer will further provide to the Agency the "Agency Deed of
Trust," to be recorded against the Site to secure payment under the Agency Note; and
WHEREAS, the Site is located in the Project Area of the Arroyo Grande Redevelopment
Project, and the provision of affordable housing under the Agreement will promote the
implementation of the Redevelopment Plan for the Project and the implementation plan
promulgated pursuant thereto (the "Implementation Plan"); and
WHEREAS, the Agreement promotes the Redevelopment Plan and the affordable
housing objectives of the Agency and the City of Arroyo Grande; and
WHEREAS, the Agreement is in the vital and best interest of the City of Arroyo Grande,
California, and the health, safety and welfare of its residents;
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo
Grande as follows:
1. The City Council finds and determines that:
. RESOLUTION NO. 3781
PAGE 3
a. The Agreement will effectuate the purposes of the Community
Redevelopment Law (Health & Safety Code ~ 33000 et seq.) and the
Redevelopment Plan for the Project Area, as well as the Implementation
Plan, by facilitating the development of affordable housing for senior
citizens in the City of Arroyo Grande, in that the Agreement provides
additional funding from the Agency's Low and Moderate Income Housing
Fund and the City's Affordable Housing In-Lieu Fee Fund for project costs
that are necessary to assure a high quality development and provision of
adequate housing amenities in the project.
b. The Agreement is consistent with the Agency's adopted Implementation
Plan adopted by the Agency in accordance with Health and Safety Code
Section 33490, in that (i) the goals and objectives set forth in the
Implementation Plan include increasing and improving the community's
supply of affordable housing, and (ii) the project on the Site is specifically
identified as one of the Agency's housing programs to be undertaken in
the time period covered by the Implementation Plan.
2.
a. The City Council authorizes the payment of funds from the Affordable
Housing In-Lieu Fee Fund to supplement the Agency Affordable Housing
"Set Aside" Funds to fund the loan in accordance with the staff report.
b. The City Council consents to the approval by the Agency of the
Agreement. Such consent shall be deemed to include such modifications
as the Agency may hereafter make to the Agreement.
On motion by Board Member Costello, seconded by Board Member Lubin, and on the
following roll-call vote, to wit:
AYES: Council Members Costello, Lubin, Runels, Dickens and Mayor Ferrara
NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted on this 14th day of September, 2004.
. RESOLUTION NO. 3781
PAGE 4
TONVM~ '" .J. -----
ATTEST:
APPROVED AS TO CONTENT:
S~~~MANAGER
APPROVED AS TO FORM:
~1,-, '9
TIMO .y J. CA EL, CITYATTORNEY
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RESOLUTION NO. 3781
OFFICIAL CERTIFICATION
I, KELL Y WETMORE, Director of Administrative Services/Deputy City Clerk of
the City of Arroyo Grande, County of San Luis Obispo, State of California, do
hereby certify under penalty of perjury, that Resolution No. 3781 is a true, full,
and correct copy of said Resolution passed and adopted at a regular meeting of
the City Council of the City of Arroyo Grande on the 14th day of September, 2004.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 17th
day of September, 2004.
'it
I{ / ;1 .
, C ',c' / / I i { I/,/)JL---
_/ '1..0/ ..
ETI\I!ORE, DIRECTOR OF ADMINISTRATIVE SERVICES/
DEPUTY CITY CLERK