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