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HomeMy WebLinkAboutCC RESO 2017-39RESOLUTION NO. 2017 — 39 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO CONCURRENTLY EXECUTE A PARTIAL ASSUMPTION OF OBLIGATIONS UNDER SITE INFRASTRUCTURE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND PARADISE CREEK HOUSING PARTNERS, L.P., AND A FIRST AMENDMENT TO SITE INFRASTRUCTURE AGREEMENT BETWEEN THE CITY OF NATIONAL CITY AND PARADISE CREEK II HOUSING PARTNERS, L.P., ALLOWING THE PHASE I DEVELOPER TO ASSUME PART OF THE OBLIGATION TO PAY THE CITY TO PERFORM REQUIRED REMEDIATION AND IMPROVEMENT WORK NEEDED ON THE PUBLIC PARK COMPONENT OF THE WESTSIDE TRANSIT -ORIENTED AFFORDABLE HOUSING AND PARADISE CREEK ENHANCEMENT PROJECT WHEREAS, Paradise Creek Housing Partners, L.P., a California limited partnership ("Phase I Developer"), and the Community Development Commission of the City of National City ("CDC") acting in its capacity as the National City Redevelopment Agency ("CDC - RDA"), entered into that certain Disposition and Development Agreement [Transit Oriented Infill Affordable Housing and Paradise Creek Enhancement Project] ("Project") dated June 21, 2011 ("DDA"). Paradise Creek II Housing Partners, L.P., a California limited partnership, ("Phase II Developer") has assumed all obligations of the Phase I Developer under the DDA with respect to the Phase II Project, as defined in the DDA; and WHEREAS, on February 1, 2012, all redevelopment agencies in California were dissolved and the Successor Agency to the Community Development Commission as the National City Redevelopment Agency ("Successor Agency") was established to make payments and otherwise perform the enforceable obligations of the former RDA as it moved to wind down the affairs of former RDA, and, by operation of law, the Successor Agency assumed the rights and obligations of the CDC with respect to the DDA; and WHEREAS, the Successor Agency is obligated under the DDA to pay for the costs of certain environmental remediation activities with respect to the Project as defined in the DDA. With respect to the Phase I and Phase II housing sites, the environmental remediation activities were performed by a subcontractor to the Phase I and Phase II Developer (together as "Developer"), the costs for which were invoiced to and will be paid in full by the Successor Agency; and WHEREAS, environmental remediation is yet to be performed on the Paradise Creek Park Parcel ("Park Parcel"), but funding for the work has been obtained by the Successor Agency for the fiscal year beginning July 1, 2016; and WHEREAS, the redevelopment agency dissolution law requires that all payments by the Successor Agency must first be approved by the California Department of Finance ("DOF") via the Recognized Obligation Payment Schedule ("ROPS") process. The Successor Agency included $2,000,000.00 in its ROPS for the July 1, 2016 — June 30, 2017 period ("ROPS 16-17") for environmental remediation of the Park Parcel, which item was approved by the DOF as an enforceable obligation. The ROPS 16-17 specifies that the Developer is the payee of those funds; and WHEREAS, the Developer is also obligated to improve the Park Parcel, as defined in and pursuant to the DDA. Under the Site Infrastructure Agreement ("Phase II SIA"), -w Resolution No. 2017 — 39 Page Two the Phase II Developer would subcontract with the City of National City ("City") for the improvement of the Park Parcel and would pay the City $4.8 Million in full and complete satisfaction of Developer's obligation to improve the Park Parcel under the DDA; and WHEREAS, discussions between the City, the Phase I Developer, and the Phase II Developer, subsequent to the execution of the Phase II SIA, have resulted in an Agreement by the Developer to assume responsibility for a portion of the payment required to be made to the City by the Phase II Developer pursuant to the Phase II SIA; and WHEREAS, the City and the Phase II Developer propose to amend the Phase II SIA to reflect the assumption of a payment of $500,000.00 to the City by the Phase I Developer, a portion of the $4,800,000.00 required to be made by the Phase II Developer under the Phase II SIA; and WHEREAS, concurrent with the proposed First Amendment to the Phase II SIA, the Phase I Developer proposes to assume the obligation to pay the City $500,000.00, which would otherwise be payable by the Phase II Developer to the City under the Phase II SIA. However, the City is not releasing the Phase II Developer from any obligations under the Phase II SIA. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to concurrently execute a Partial Assumption of Obligations Under Site Infrastructure Agreement between the City of National City and Paradise Creek Housing Partners, L.P., and a First Amendment to Site Infrastructure Agreement between the City of National City and Paradise Creek II Housing Partners, L.P., allowing the Phase I Developer to assume part of the obligation to pay the City to perform required remediation and improvement work needed on the public park component of the Westside Transit -Oriented Affordable Housing and Paradise Creek Enhancement Project. Said Partial Assumption and First Amendment to the Phase II SIA is on file in the office of the City Clerk. PASSED and ADOPTED this 21' day of March, 20 ATTEST: AY R. Dalla, Cit Michael Mich Clerk APPROVED AS TO FORM: if) - -Or George H. Eiser, III Interim City Attorney on Morrison, Mayor Passed and adopted by the Council of the City of National City, California, on March 21, 2017 by the following vote, to -wit: Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California ate,Zidl City CI rk of the City of N tional City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2017-39 of the City of National City, California, passed and adopted by the Council of said City on March 21, 2017. City Clerk of the City of National City, California By: Deputy