HomeMy WebLinkAboutResolutionRESOLUTION NO. 2013 —
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION -HOUSING
AUTHORITY OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHAIRMAN TO
EXECUTE A PURCHASE AND SALE AGREEMENT WITH THE CITY OF NATIONAL CITY
FOR THE PURCHASE OF TWO PARCELS TOTALING 6.299 ACRES, 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, ACCEPTING A HOME ALLOCATION OF $2,095,492 FROM THE
CITY OF NATIONAL CITY, AUTHORIZING THE USE OF THE HOME ALLOCATION FOR THE
PARTIAL PAYMENT OF THE PROPERTY PURCHASE, AUTHORIZING THE EXECUTIVE
DIRECTOR OR DESIGNEE TO EXECUTE A PROMISSORY NOTE FOR $4,941,000
PAYABLE TO THE CITY OF NATIONAL CITY TO COMPLETE SAID PURCHASE, AND
APPROVING A MONTH -TO -MONTH LEASEBACK TO THE CITY OF NATIONAL CITY OF
SAID PROPERTY
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 purchase of Parcel 1 and Parcel 2 is being undertaken pursuant to
the requirements of the DDA, as an enforceable obligation of the SA; 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 appraised value of the Property of
$7,035,000; and
WHEREAS, the CDC -HA will use $2,095,492 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 $3,815,000 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
Resolution No. 2013 —
Page Two
WHEREAS, the Property will continue to be temporarily occupied by City Public
Works 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
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 CDC -HA has duly considered all terms and conditions of the
proposed Agreement and believes that the purchase of the Property, the allocation and
expenditure HOME funds, the loan, and the month to month lease, are all in the best interests of
the CDC -HA 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 CDC -HA accepts a HOME Grant
from the City of National City to be used for the acquisition and development of Parcel 1 of the
Property and authorizes the Executive Director or her designee to execute any grant related
documents.
BE IT FURTHER RESOLVED that the CDC -HA authorizes the Chairman to
execute the Purchase and Sale Agreement between the City of National City and the Community
Development Commission -Housing Authority of the City of National City for the purchase of 6.299
acres of land for a total purchase price of $7,035,000. Said Purchase and Sale Agreement is on file
with the City Clerk.
BE IT FURTHER RESOLVED that the CDC -HA authorizes the partial payment of
the purchase price from the use of HOME Grant funds in the amount of $2,095,492.
BE IT FURTHER RESOLVED that the CDC -HA authorizes its Executive Director or
her designee to execute any and all loan documents, including a promissory note, necessary for an
unsecured loan of $4,941,000 to the CDC -HA for consideration of value owed ion the purchase
price, and as necessary to fulfill the terms of the Purchase and Sale Agreement, including escrow
documents. Said loan documents, including a promissory note, is on file in the Office of the City
Clerk.
BE IT FURTHER RESOLVED that the CDC -HA authorizes the Chairman to
execute a Month -to -Month Lease Agreement for the Property until City Public Works operations
are relocated. Said Lease Agreement is on file in the Office of the City Clerk.
BE IT FURTHER RESOLVED that the CDC -HA 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.
Resolution No. 2013 —
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PASSED and ADOPTED this 20th day of August, 2013.
Ron Morrison, Chairman
ATTEST:
Leslie Deese, Secretary
APPROVED AS TO FORM:
Claudia Gacitua Silva
General Counsel