HomeMy WebLinkAboutCC RESO 2013-129--- Revised ---
RESOLUTION NO. 2013 — 129
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE A PURCHASE AND SALE AGREEMENT
WITH THE COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF
THE CITY OF NATIONAL CITY ("CDC -HA") FOR THE SALE OF TWO PARCELS OF LAND
TOTALING 6.299 ACRES FOR A TOTAL PURCHASE PRICE OF $7,035,000, GENERALLY
BOUNDED BY 19TH STREET, HARDING AVENUE, 22ND STREET, AND HOOVER AVENUE,
IN THE CITY OF NATIONAL CITY, FOR THE DEVELOPMENT OF 201 AFFORDABLE
HOUSING UNITS AS PHASE I AND II OF THE WESTSIDE INFILL TRANSIT ORIENTED
DEVELOPMENT PROJECT, APPROVING A LOAN FROM THE CITY OF NATIONAL CITY TO
THE CDC -HA FOR $4,941,000 TO COMPLETE SAID PURCHASE, AND APPROVING THE
MONTH TO MONTH LEASE BACK OF THE SUBJECT PROPERTY FROM THE CDC -HA
WHEREAS, the City is the owner of that certain real property (the "Property") in the
City of National City, State of California, consisting of two legal parcels ("Parcel 1 and Parcel 2")
totaling 6.299 acres, generally bounded by 19th Street, Harding Avenue, 22nd Street, and Hoover
Avenue; and
WHEREAS, the Successor Agency to the Community Development Commission as
the National City Redevelopment Agency (Successor Agency) is subject to the enforceable
obligation commonly referred to as the Westside Infill Transit Oriented Development (WI-TOD)
Development and Disposition Agreement (DDA), entered into June 21, 2011 with Paradise Creek
Housing Partners, LP (Developer); and
WHEREAS, the DDA requires the Property to be acquired for and developed into a
201 unit affordable housing project (the Project) as described in the DDA; and
WHEREAS, the sale of Parcel 1 and Parcel 2 to the CDC -HA is being undertaken
so that the Successor Agency can fulfill its enforceable obligations pursuant to the requirements of
the DDA; and
WHEREAS, in accordance with California Health and Safety Code section 34176,
the CDC -HA has accepted the affordable housing functions of the former redevelopment agency
pursuant to resolution number 2012-01; and
WHEREAS, the value of the consideration for the Property, pursuant to proposed
Purchase and Sale Agreement (Agreement) will not be less than the appraised value; and
WHEREAS, appraisals completed within the last 60 days indicate a value of $3.815
million for Parcel I and $3.22 million for Parcel 2 for a total value of the Property of $7.035 million;
and
WHEREAS, the CDC -HA will use $2,094,000 in HOME funds to acquire Parcel I
and the CDC -HA has requested a loan in the amount of $4,941,000 from the City in order to
provide full consideration for the remaining balance of the appraised value of Parcel 1 in the
amount of $1,721,000, and the full appraised value of Parcel 2 in the amount of $3,220,000; and
WHEREAS, the CDC -HA would repay the loan with ground lease income and loan
repayments made by the developer of the Project; and
WHEREAS, the Property will continue to be temporarily occupied by the National
City Public Works Department, and the CDC -HA will provide a month -to -month lease agreement
for $1.00 per month until the operation is relocated to another site; and
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Resolution No. 2013 —129
Page Two
WHEREAS, the sale of the Property pursuant to the proposed Agreement will
improve the quality of life of the residents of National City and its visitors through the elimination
of blight and the development of a quality Project in the area by providing for the reuse and
redevelopment of a brownfield site; and
WHEREAS, all actions required by all applicable law with respect to the
proposed Agreement have been taken in an appropriate and timely manner; and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed Agreement and believes that the disposition of the Property pursuant thereto, loan,
and month to month lease, are 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 that the City Council authorizes the Mayor
to execute the Purchase and Sale Agreement between the City of National City and the
Community Development Commission -Housing Authority for the sale of 6.299 acres of land for a
total purchase price of $7,035,000. Said Purchase and Sale Agreement is on file in the Office of
the City Clerk.
BE IT FURTHER RESOLVED that the City Council accepts the partial payment of
the purchase price by the CDC -HA from the use of HOME Grant funds in the amount of
$2,094,000.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager or
her designee to execute any and all loan documents necessary to make the unsecured loan of
$4,941,000 provided by the City to the CDC -HA for consideration of value owed on the purchase
price, and as necessary to fulfill the terms the Purchase and Sale Agreement, including escrow
documents. Said loan documents are on file in the Office of the City Clerk.
BE IT FURTHER RESOLVED that the City Council authorizes the Mayor to execute
a Month -to -Month Lease Agreement for the Property until City Public Works operations are
relocated to another site. Said Lease Agreement is on file in the Office of the City Clerk.
BE IT FURTHER RESOLVED that the City Council determines that the WI-TOD
project was previously addressed in the Final Environmental Impact Report for the Westside
Specific Plan (State Clearinghouse No. 2008071092) which was certified by the City Council on
March 16, 2010, thus satisfying CEQA.
PASSED and ADOPTED this 20th day of Augus t 13.
ATTEST:
c ael R. Della, City Clerk
Mi y
on Morrison, Mayor
ROV AS TO FORM:
udia h citua Silva
City Attor
Passed and adopted by the Council of the City of National City, California, on August
20, 2013 by the following vote, to -wit:
Ayes: Councilmembers Cano, Morrison, Natividad, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
�► ?Ial/tt,
City CI rk of the City of ational City, California
By:
Deputy
HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2013-129 of the City of National City, California, passed and
adopted by the Council of said City on August 20, 2013.
City Clerk of the City of National City, California
By:
Deputy