HomeMy WebLinkAboutResolutionRESOLUTION 2011 — 35
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
APPROVING A COOPERATION AGREEMENT FOR THE WESTSIDE
INFILL TRANSIT ORIENTED DEVELOPMENT ("WI-TOD") BETWEEN
THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF
NATIONAL CITY AND THE CITY OF NATIONAL CITY, AND MAKING
CERTAIN DETERMINATIONS AND FINDINGS RELATED THERETO
WHEREAS, the City of National City adopted the Redevelopment Plan for the
National City Redevelopment Project on July 17, 2007, by Ordinance No. 2007-2295 (the
"Redevelopment Plan"), which results in the allocation of a portion of the property taxes
generated from the National City Redevelopment Project (the "Project Area") to the Community
Development Commission of the City of National City ("CDC") for purposes of redevelopment;
and
WHEREAS, the intent of the Redevelopment Plan is, in part, to increase, improve
and preserve the community's supply of low and moderate income housing, and to expend tax
increment to accomplish these goals and objectives; and
WHEREAS, the CDC has adopted its Five -Year Implementation Plan for the
Project Area, as amended from time to time (collectively, the "Implementation Plan") with
established goals to support affordable housing, economic development, community
revitalization, commercial revitalization, and institutional revitalization. To implement the
programs and activities associated with each goal, the CDC has made redevelopment fund
commitments and budget allocations based on estimated available tax increment revenue and
debt financing structures; and
WHEREAS, Sections 33334.2 and 33334.3 of California's Community
Redevelopment Law [Health and Safety Code Sections 33000, et seq.] (the "CRL") require the
CDC to use 20 percent (20%) of taxes allocated to the CDC pursuant to Section 33670 of the
CRL for the purpose of increasing, improving, and preserving the community's supply of low and
moderate income housing; and
WHEREAS, the CDC and the City wish to cooperate with one another to carry
out the CDC's low and moderate income housing activities in accordance with the
Redevelopment Plan and the Implementation Plan; and
WHEREAS, pursuant to Sections 33220 and 33206 of the CRL, the City
may aid the CDC and cooperate in the planning, undertaking, construction, or operation of low
and moderate income housing in the community; and
WHEREAS, the CDC and the City have prepared a Cooperation Agreement (the
"Agreement") to provide for implementation of certain low and moderate income housing
programs and projects set forth in the Schedule of Projects attached thereto as Exhibit 1 (the
"Projects"), and to make payments by the CDC to the City in accordance with the Payment
Schedule attached thereto as Exhibit 2 and as otherwise necessary to reimburse the City for the
cost to the City of performing its obligations thereunder in accordance with the Schedule of
Performance attached thereto as Exhibit 3, subject to all of the terms and conditions of the
Agreement; and
Resolution No. 2011 — 35
Page 2
WHEREAS, the programs and activities associated with the Projects include, but
are not limited to, acquisition and disposition of property; development of design criteria; design,
planning and preparation of construction bid documents; financial analysis; financing; new
construction or rehabilitation; mortgage assistance to qualifying households; subsidies to
individuals and families; entering into and repayment of loans secured by the low and moderate
income housing funds; and ongoing monitoring of projects, asset management and
administration of agreements; and
WHEREAS, to carry out the Projects in accordance with the objectives and
purposes of the Redevelopment Plan for the Project Area and the Implementation Plan, the
CDC desires assistance and cooperation in the implementation and completion of the Projects;
and
WHEREAS, the City wishes to enter into the Agreement with the CDC to aid the
CDC, and cooperate with the CDC to expeditiously implement the Projects in accordance with
the Redevelopment Plan for the Project Area and the Implementation Plan, and undertake and
complete all actions necessary or appropriate to ensure that the low and moderate income
housing objectives of the Redevelopment Plan for the Project Area and the Implementation Plan
are fulfilled within the time effectiveness of the Project Area; and
WHEREAS, in considering the CDC's desire to ensure timely implementation and
completion of the Projects, the CDC wishes to enter into the Agreement with the City for the
pledge of net available housing funds to finance the Projects; and
WHEREAS, the purpose of the Agreement is to facilitate the implementation of
the Projects, and to provide funding necessary to effectuate the completion of the Projects with
net available housing funds in this current fiscal year and forthcoming fiscal years; and
WHEREAS, net available housing funds is defined as that portion of the tax
increment allocated to the CDC or any lawful successor of the CDC and/or to any of the powers
and rights of the CDC pursuant to any applicable constitutional provision, statute or other
provision of law now existing or adopted in the future, that is set aside by the CDC pursuant to
Sections 33334.2 and 33334.3 or any other law or regulation that may be enacted in the future
requiring a set -aside of tax increment for the purpose of increasing, improving, and preserving
the community's supply of low and moderate income housing, net of existing debt service
payments and existing contractual obligations payable from such housing set aside; and
WHEREAS, the pledge of net available housing funds will constitute obligations
of the CDC to make payments authorized and incurred pursuant to Section 33334.2 and other
applicable statutes. The obligations set forth in the Agreement will be contractual obligations
that, if breached, will subject the CDC to damages and other liabilities or remedies; and
WHEREAS, by approving and entering into the Agreement, the CDC will approve
the pledge of net available housing funds from the Project Area and/or bond proceeds secured
by a pledge of net available housing funds from the Project Area to pay for the Projects; and
WHEREAS, the obligations of the CDC under the Agreement shall constitute an
indebtedness of the CDC for the purpose of carrying out the Redevelopment Plan for the Project
Area; and
Resolution No. 2011 — 35
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WHEREAS, it is in the best interests of the City of National City and for the
common benefit of residents, employees, business tenants and property owners within the
Project Area and the City of National City as a whole for the Projects to be developed and
constructed; and
WHEREAS, the Westside Specific Plan Environmental Impact Report ("EIR")
(Schedule No. 2008071092) was certified by the City Council on March 16, 2010, and is on file
in the office of the City Clerk; and
WHEREAS, the Agreement does not contemplate and will not result in any new
programs or activities, or substantial changes to the activities analyzed in the Westside Specific
Plan EIR; and
WHEREAS, Public Resources Code Section 21166 ("Section 21166") provides
that when an EIR has been certified for a project, no subsequent or supplemental EIR shall be
prepared unless the lead agency determines, on the basis of substantial evidence in light of the
whole record, that one or more of the following events occurs:
(a) Substantial changes are proposed in the project which will require
major revisions of the environmental impact report.
(b) Substantial changes occur with respect to the circumstances
under which the project is being undertaken which will require major revisions in the
environmental impact report.
(c) New information, which was not known and could not have been
known at the time the environmental impact report was certified as complete, becomes
available; and
WHEREAS, the CDC, as the lead agency under CEQA, has not determined any
of the findings required by Section 21166; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have
been satisfied.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City, as follows:
Section 1. The City Council has received and heard all oral and written objections to
the proposed payments by the CDC to the City for the Projects as described in the Agreement,
and to other matters pertaining to this transaction, and all such oral and written objections are
hereby overruled.
Section 2. The City Council hereby finds and determines that the foregoing recitals
are true and correct.
Section 3. Based on the evidence in the record, the City Council hereby finds and
determines, the use of low and moderate income housing funds for the Projects will be of
benefit to the Project Area in accordance with Section 33334.2 of the CRL.
Resolution No. 2011 — 35
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Section 4. The City Council hereby consents to and accepts the payments by the
CDC to the City in accordance with the Schedule of Payments attached to the Agreement as
Exhibit 2.
Section 5. The Mayor is hereby authorized to execute the Agreement on behalf of
the City, together with such non -substantive changes and amendments as may be approved by
the Mayor and City Attorney.
Section 6. The City Manager, or designee, is hereby authorized, on behalf of the
City, to sign all documents necessary and appropriate to carry out and implement the
Agreement, including, without limitation, any security instruments to be recorded against CDC
assets to secure the CDC's obligations under the Agreement, and to administer the City's
obligations, responsibilities and duties to be performed under the Agreement.
Section 7. That the information contained in the Westside Specific Plan EIR has
been reviewed and considered by the City Council, and it is determined that no substantial
changes or new information of substantial importance within the meaning of Section 21166
would warrant any additional environmental review in connection with approval of the
Agreement.
Section 8. That the City Manager is directed to file a Notice of Determination
{"NOD") with the Clerk of the Recorder's Office for the County of San Diego regarding the
Agreement.
Section 9. Said Agreement is on file in the office of the City Clerk.
Section 10. This Resolution shall take effect immediately upon its adoption.
PASSED and ADOPTED this 15th day of February, 2011.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Claudia G. Silva
City Attorney