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HomeMy WebLinkAboutCDC Background ReportATTACHMENT 1 BACKGROUND REPORT On March 3, 2009, the CDC entered into an Exclusive Negotiation Agreement with the Related Companies of California and Community Housing Works to discuss the potential redevelopment of the National City Public Works site and adjoining sites into a transit - oriented infill affordable housing project — commonly called the Westside Infill TOD or "WI-TOD". The WI-TOD would implement a land use addressed in the Westside Specific Plan and its certified Environmental Impact Report certified on March 16, 2010. The developers and CDC have been diligently working on the proposal and anticipate bringing forward a Development and Disposition Agreement in spring of 2011. In anticipation of the commencement of planning, design and supplemental analysis under the California Environmental Quality Act so that an actual project can be considered, staff desires that funding be established and preserved within the City. The attached Agreement provides for a transfer of up to $40 million in anticipated low -mod set aside funds for the project oversight, site predevelopment activities such as remediation, any project subsidy to be determined in the future and on -going operational costs. In order for the CDC and City to cooperate in this manner, certain findings are required to be made: • The Commission has received and heard all oral and written objections to the proposed payments by the Commission 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; • The Commission hereby finds and determines that the foregoing recitals are true and correct; and • Based on the evidence in the record, the Commission hereby finds and determines, with respect to 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. Funds ultimately transferred will not exceed actual funding to be determined necessary for the project. The Executive Director, or designee, is authorized to execute the Agreement on behalf of the CDC, together with such non -substantive changes and amendments as may be approved by the Executive Director and CDC Counsel. The Executive Director, or designee, is also authorized, on behalf of the CDC, 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 CDC's obligations, responsibilities and duties to be performed under the Agreement. In the event the CDC desires to issue bonds, notes, or other instruments of indebtedness of the CDC to carry out redevelopment projects, then any indebtedness of the CDC to the City, including any interest accrued thereon, shall be deemed not to be a first pledge of tax increment allocations received by the CDC pursuant to Section 33670 of the CRL; and any indebtedness of the CDC to the City, including any interest accrued thereon, shall be subordinate to any pledge of tax increments to bondholders or the holders of other such instruments of indebtedness.