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HomeMy WebLinkAboutCC RESO 2011-131RESOLUTION NO. 2011 — 131 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY APPROVING THE LEASE BY THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF NATIONAL CITY OF REAL PROPERTY LOCATED AT 2020 AND 2200 HOOVER AVENUE TO PARADISE CREEK HOUSING PARTNERS, LP, AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH WHEREAS, the Community Development Commission of the City of National City (the "CDC") is engaged in activities necessary to execute and implement the Redevelopment Plan (the "Redevelopment Plan") for the National City Redevelopment Project ("NCRP"); and WHEREAS, in furtherance of the objectives of the California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.), the CDC desires to redevelop a certain approximately 12.75 acre portion of the NCRP area located at 2020 and 2200 Hoover Avenue (the "Property") which is currently owned by the City of National City, and which will be sold or leased to the CDC; and WHEREAS, the Implementation Plan adopted by the CDC with respect to the NCRP area sets forth as an objective of the CDC to "increase private investment whenever possible, to promote jobs and improve the sales tax base of the City"; and WHEREAS, the CDC and Paradise Creek Housing Partners, LP (the "Developer"), propose to enter into a Disposition and Development Agreement ("DDA") pursuant to which the CDC would lease the Property to the Developer, and the Developer would construct on the Property improvements consisting of a 201 unit Transit -Oriented Infill Affordable Housing Development (the "Project"); and WHEREAS, pursuant to Section 33433 of the Community Redevelopment Law, the CDC is authorized, with the majority approval of the City Council after public hearing, to lease the Property for redevelopment purposes pursuant to the Redevelopment Plan upon a determination by the City Council that the lease of the Property will assist in the elimination of blight or provide housing for low or moderate income persons, and is consistent with the Implementation Plan adopted pursuant to Health and Safety Code Section 33490, and that the consideration for the lease is not less than the fair reuse value of the land at the use and with the covenants and conditions and development costs authorized by the lease; and WHEREAS, a public hearing notice was duly noticed in accordance with the requirements of Health and Safety Code Section 33433; and WHEREAS, the proposed DDA and summary report meeting the requirements of Health and Safety Code Section 33433, were available for public inspection consistent with the requirements of Health and Safety Code Section 33433; and WHEREAS, on June 21, 2011, the City Council held a public hearing on the proposed DDA and evaluated all of the information, testimony, and evidence presented during the public hearing; and WHEREAS, the CDC has reviewed the summary report required pursuant to Health and Safety Code Section 33433 and evaluated other information provided to it pertaining to the findings required pursuant to Section 33433; and Resolution No. 2011 — 131 June 21, 2011 Page Two WHEREAS, the lease of the Property pursuant to the proposed DDA will assist in the elimination of blight by improving the City's housing stock; by the consolidation of irregular parcels into a site appropriate for development; by elimination of conditions of economic dislocation such as fragmented ownership patterns; by expansion, renovation, and relocation of businesses within the NCRP Project Area; and by encouraging private sector investment in the NCRP Project Area; and WHEREAS, the lease of the Property pursuant to the proposed DDA will provide housing for low or moderate income person, in that the Developer will construct a 201 unit Transit -Oriented Infill Affordable Housing Development, which will consist of multi -family apartments restricted to very low, low, and moderate income households; and WHEREAS, the lease of the Property pursuant to the proposed DDA is consistent with the Implementation Plan, which sets forth as an objective of the CDC "to increase private investment wherever possible, to provide jobs, and improve the property and sales tax base of the City; and WHEREAS, the consideration for the lease is not less than the fair reuse value of the land at the use and with the covenants and conditions and development costs authorized by the lease, because the fair market value of the Property has been determined based on assumed continued use of the Property for commercial purposes; the Project will consist of multi -family apartments restricted to very low, low, and moderate income households; the Project will be developed on a 99-year ground lease rather than fee simple ownership; the Project is proposed to receive subsidies from Low Income Housing Tax Credits and Proposition 1 C, which impose specific covenants and restrictions (such as payment of prevailing wages) on the Project; the Project is required to maintain an annual operating budget for social services for tenants; and WHEREAS, all actions required by all applicable law with respect to the proposed DDA have been taken in an appropriate and timely manner; and WHEREAS, the CDC has duly considered all terms and conditions of the proposed DDA and believes that the disposition of the Property pursuant thereto is in the best interests of the City of National 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. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of National City as follows: Section 1. The City Council hereby finds and determines, based upon substantial evidence provided in the record before it, that the Project is of benefit to the NCRP area, the area in which it is proposed to be located. Section 2. The City Council hereby finds and determines, based upon substantial evidence provided in the record before it, that the consideration for the disposition of the Property, pursuant to the terms and conditions of the proposed DDA, is not less than the fair reuse value of the Property at the use and with the covenants and conditions and development costs required by the DDA and by the lease. Resolution No. 2011 — 131 June 21, 2011 Page Thee Section 3. The City Council hereby finds and determines, based on substantial evidence provided in the record before it, that the disposition of the Property pursuant to the proposed DDA will assist in the elimination of blight within the Project Area. Section 4. The City Council hereby finds and determines, based on substantial evidence provided in the record before it, that the disposition of the Property will provide housing for low or moderate income persons. Section 5. The City Council hereby finds and determines, based on substantial evidence provided in the record before it, that the disposition of the Property is consistent with the Implementation Plan adopted pursuant to Health and Safety Code Section 33490. Section 6. The CDC Chairman is authorized to execute the proposed DDA following adoption by the CDC of the resolution approving the proposed DDA PASSED and ADOPTED this 21st day of June, 201 on Morrison, Mayor ATTEST: v 09, Michael . Dalla, City Clerk ROVED AS TO FORM: udia G. S +aa City Attorney Passed and adopted by the Council of the City of. National City, California, on June 21, 2011 by the following vote, to -wit: Ayes: Councilmembers Morrison, Natividad, Rios, Sotelo-Solis, Zarate. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California City Clerk of the City of National City, California Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2011-131 of the City of National City, California, passed and adopted by the Council of said City on June 21, 2011. City Clerk of the City of National City, California By: Deputy