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HomeMy WebLinkAbout2017 CON The Related Companies of California - Certification of Non-Relocation Plan - Paradise Creek Phase 2Certification Regarding Non -Application of Relocation Benefits and Indemnification Agreement Paradise Creek Phase 1I Certification Regarding Non -Application of Relocation Benefits This document is used by the Sponsor of a housing project to show and certify that no relocation plan was necessary for the project. The certification is regarding a certain project known as Paradise Creek Phase II, located at 2010 and 2030 Hoover Avenue, San Diego, CA 91950 (the "Project"). This Certification is made by The Related Companies of California, LLC, a California limited liability company and The City Of National City, A California municipal corporation, (the "Sponsors"), for the benefit of the Department of Housing and Community Development, a public agency of the State of California, its successors and assigns (the "Department"), and is dated as of March 3, 2017, for reference purposes. The Sponsor, through its organizational structure, control Paradise Creek II Housing Partners, L.P., a California limited partnership (the "Borrower"), which owns the aforementioned Project. In conducting its due diligence, the Department requested that the Sponsor provide any and all information relating to potential relocation issues involving the Project. In response, Sponsor provided the Department the following information and documents supporting its position that no relocation was necessary: 1. Land Appraisal for Paradise Creek Apartments Phase II Site, Report Date: May 8, 2015 Paradise Creek - Phase II is the second phase of a two -phased project. Phase 1 is currently under construction and consists of 108 affordable rental apartments (plus one manager's unit). Phase 1 is expected to be complete by the end of 2016. Phase 2 will consist of 91 affordable rental apartments (plus one manager's unit) for a combined total of 199 affordable units (plus two manager's unit). The Sponsor was awarded $5,480,271.00 in AHSC Grant funds, and $ 3,760,617.00in AHSC Loan Funds. Sponsor has been informed that: (1) Federal and State Relocation Assistance laws provide uniform, fair and equitable treatment for persons whose real property is acquired or who are displaced as a result of government or government -assisted programs or projects; and (2) Property owners who sell their property in voluntary acquisitions are not displaced persons and are not eligible for relocation assistance and payment benefits. However, tenant occupants who are displaced as a result of the acquisition may be eligible for all applicable relocation benefits. A tenant -occupant who moves as a result of Page 1 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land a voluntary acquisition for a govemment-assisted project may be eligible for relocation assistance as a displaced person. Such displaced persons may include not only current lawful occupants, but also former tenants required to move for any reason other than an eviction for cause in accordance with applicable federal, state, and Local law. Sponsor has not used the services of a recognized relocation specialist in determining that relocation assistance is not applicable. Representations The Sponsor has represented to the Department the following: (a) that the new construction of the Project will not result in temporary or permanent relocation of any tenant or owner -occupant; (b) the Project construction work will be done on vacant land, and (c) that the site for Phase II is currently being used as a construction site and for storage (described in Exhibit A); and therefore no relocation will be required. The Sponsor has also represented to the Department the following: (a) the vacant land was not intentionally created to be vacant so as to circumvent relocation law; (b) there was no owner -occupant or tenant or mobile home or business (which at minimum includes a parking business, billboards and other forms of outdoor advertising displays) or, farm previously on the vacant land; (c) no person or entity was required to move personal property from vacant land; (d) no advertising signs were lost in creation of the vacant land and (e) there was no 'displaced person' pursuant to Government Code 7260(b), (c) and (d); whereby a "displaced person" is a person who is entitled to relocation assistance when he or she must move from real property, or move personal property from real property, as a direct result of a notice of intent to acquire, or acquisition of real property for a program or project by a public entity, or acquisition by any person having an agreement with or acting on behalf of a public entity; (f) no prior lease (on the vacant land) was intentionally not renewed to create the vacant land; (g) no person's property was acquired in connection with a state or federally funded project; and (h) no person's property was displaced in connection with a state or federally funded project. Certification Sponsor certifies the vacant land contains only an empty site which was not vacated for the Project (i.e. previous tenants were not displaced for the Project). Sponsor certifies no previous occupants were displaced from their homes, businesses, or farms for the Department's Project as a result or an owner refusing to renew a lease, i.e. the property was not vacated for the Department's Project. Page 2 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Sponsor certifies that as a result of construction of the Project, no housing, business nor farm will be affected, no personal property was required to be moved, and no households will have to be displaced. The undersigned, the Sponsor, do hereby certify as follows: 1. The foregoing is true and correct; 2. The Sponsor is duly authorized to execute, in its name, all documents and certifications required by the Department in order for it to carry out any construction of the Development and Sponsor will comply with relocation law requirements; 3. That the Department would not approve the construction of the Development without this certification; and 4. It is understood that if relocation benefits are found to be applicable then the Sponsor shall prepare a relocation plan and shall be solely responsible for providing the assistance and benefits as required under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (California Government Code 7260 et seq), and the Relocation Guidelines (Title 25 of the California Code of Regulations Section 6000 et seq); and Sponsor shall indemnify and hold harmless the Department from any liabilities or claims for relocation -related costs; (see below Indemnity Agreement). I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. SPONSORS: The Related Companies of California, LLC, a California limited liability company By: �v^ Frank Cardone, President [Signatures continued on Next Page] Page 3 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land City of National City, a California municipa -.rp ation By: on orrison, Mayor APPROVED BkS TO FORM: Nicole Pedone Acting City Attorney [Remainder of the page left blank. Indemnification Agreement follows on the next page of this Certification]. Page 4 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Indemnification Agreement As part of the construction of the Project (attributed to 14-AHSC-10481 and14-AHSC- 10483), Sponsor agrees to defend, indemnify, release and hold harmless the Department, its agents, officers, attorneys, employees and committees from any claim, action or proceeding brought against any of the foregoing individuals or entities, the purpose of which is to attack, set aside, void or annul the approval of the above mentioned "Certification Regarding Non -Application of Relocation Benefits." This indemnification shall include, but not be limited to, all damages, costs, expenses, attorney fees or expert witness fees that may be asserted by any person or entity, including the Sponsor, arising out of or in conjunction with the approval of the Project's construction, except loss or liability caused by the Department's sole negligence or willful misconduct. lf, for any reason any portion of this indemnification agreement is held to be void or unenforceable by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect. NOTE: The purpose of the Indemnification Agreement is to allow the Department to be held harmless in connection with any and all potential legal costs and liabilities in conjunction with accepting certification from Sponsor that no relocation plan was necessary. SPONSORS: The Related Companies of California, LLC, a California limited liability company By: Frank Cardone President City of National City, a California municipal . p. ation By: on orrison, Mayor APPROVED • : O FO: M: GE Nicole Pedone Acting City Attorney Page 5 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Exhibit A Consists of the following: Pages 1, 3, 5, 31, 32, and both pages of subject photos (7) pages from the Land Appraisal for Paradise Creek Apartments Phase II Site, Report Date: May 8,2015 Page 6 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. 11 HOD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Land Appraisal Paradise Creek Apartments Phase II Site 2.15 acres of parcels: 560-206-07, 560-391-05, 559-124-07, and 559-124-06 National City, California 94950 Effective Date: April 7, 2015 Report Date: May 8, 2015 Marie Debor Paradise Creek II Housing Partners L.P. 18201 Von Karman Ave., Suite 900 Irvine, CA 92612 Southern California PO Box 68 Corona Del Mar, California (818) 914-1892 LEA & COMPANY Midwest Omaha 11060 Oak Street Suite 6 Omaha, Nebraska (402) 202-0771 Midwest Kansas City 6804 Mastin Drive Merriam, Kansas (402) 305-1693 LEA & COMPANY FACTUAL DESCRIPTION Property Identification The property appraised consists of 2.15 acres of parcel numbers 560-206-07, 560-391-05, 559-124- 07, and 559-124-06 which are located in National City. The entire site consists of a total of 12.44 acres, which includes the aforementioned Subject parcels, the Phase I parcel numbers 560-391-12 and 559-124-08, and the proposed community park parcel number of 560-391-11. The Subject site is vacant and currently being used as a construction site while Paradise Creek Phase I is being built. There is a creek that traverses south to northeast through the site. The developer acquiring the site plans to construct a total of 201 units that will be income - restricted, as per LIHTC guidelines as well as a community park on the western portion of the site. The construction will be completed in two phases. Phase I, which is under construction, will consist of 109 units in two residential buildings on 4.11 acres, and the park and creek which is 6.15 acres. Phase II will consist of 92 units in two residential buildings on 2.15 acres. This appraisal is to provide an opinion of market value of the residential portion of Phase II or the 2.15 acres of land. Photos of the Subject have been included in the Addenda. Compliance and Competency Provision We are aware of the compliance and competency provisions of USPAP, and within our understanding of those provisions, this report complies with all mandatory requirements, and the authors of this report possess the education, knowledge, technical skills, and practical experience to complete this assignment competently, in conformance with the stated regulations. Unavailability of Information In general, all information necessary to develop an estimate of value of the Subject property was available to the appraisers. Intended Use and Intended Users of Appraisal The intended users of this report include Paradise Creek II Housing Partners L.P., and its assigns, TCAC/CDLAC and city of National City. TCAC/CDLAC may rely upon the appraisal as intended users related to affordable housing subsidies applications. The intended use of the appraisal is to provide assistance with investment analysis decisions. Property Interest Appraised The property interest appraised is the fee simple interest. Date of Inspection and Effective Date of Appraisal The Subject was last inspected and photographed on April 7, 2015. This shall be the effective date of the appraisal. 3 LEA & COMPANY • Brent R. Griffiths provided significant professional appraisal assistance in the preparation of this report. This assistance included the collection and confirmation of market data, draft of the report, and a preliminary opinion of the Market Value under the supervision of Jay A. Wortmann, MAI and Byron N. Lea, MAI Ownership and History of Subject The property appraised consists of 2.15 acres of parcel numbers 560-206-07, 560-391-05, 559-124- 07, and 559-124-06 which are located in National City. These parcels were deeded to Community Development Commission -Housing Authority of the City of National City from the City of National City, a Municipality, on August 28, 2013. The city has agreed to lease the land to the developer for 99 years at a rate of $1 per year. We are not aware of any other transfers of these properties. The site is not currently exposed to the market. This appraisal assignment does not provide an indication of leased fee interest or potential leasehold estate(s). 5 LEA & COMPANY SITE DESCRIPTION Existing Improvements: The site is vacant and currently being used as a construction site while Paradise Creek Phase I is being built. Currently, there is a large pile of dirt that is on the site and will be dispersed between Phase I and II. Size: The site is a total of 2.15 acres of the entire 12.44 acres. Identification: 2.15 acres of parcel numbers 560-206-07, 560-391-05, 559- 124-07, and 559-124-06. Topography: The site is flat. Vegetation: No vegetation. Zoning: The Subject's site is currently zoned MCR-2, Mixed Use Commercial Residential, which permit several uses; a zoning document provided by the city of National City identifying allowable uses is included in the addendum. An apartment complex is an allowable use. The minimum density is 24 units per acre (52 units) and the maximum density is 60 units per acre (129 units). The upper limits within the zoning requires construction greater than six stories, which require greater cost steel frame construction versus wood frame construction. Interviews with the developer indicate Phase II plan is 92 units (42 units per acre), which incorporates wood frame construction, and is towards the lower density range permitted by zoning. Approvals from the city have been obtained for this density. The parking requirement for a multifamily project is 1.5 spaces for each unit of 1,200 square feet or greater and 1.0 spaces for each unit of 1,200 square feet or less. The zoning information was confirmed by Michael Fellows, Planning Technician for the city of National City. Proximity to Adverse Conditions: At this time, we are unaware of any detrimental influences that would impact on the value of the Subject. Drainage: Appears adequate, however no specific tests were performed. 31 Soil and Subsoil Conditions: Environmental: Flood Plain: LEA & COMPANY We were not provided with a soil survey. However, we assume that an analysis will be completed and any mitigation will be remedied, and the site will possess adequate load bearing capacity for development. We were not provided an environmental report and did not observe any obvious environmental hazards during our site inspection. However, we are not experts within this field. According to the Floodscape Flood Hazards Map Number 06073C1911G, dated May 16, 2012, a portion of the Subject is a moderate and high flood risk area. Because the project is located in a flood zone, the habitable space for both phases is being elevated by approximately one foot to raise the buildings out of the flood zone. The developer stated that flood insurance was required at the construction loan closing of Phase I and expects to obtain flood insurance for the Subject (Phase II) as well. Photographs: Subject photos are included in the Addenda. 32 Subject Another view of Subject SUBJECT PHOTOGRAPHS Another view of Subject Another view of Subi e , mow, Another view of Subject Another view of Subi,ect SUBJECT PHOTOGRAPHS Creek and Kimball Elementary School to the north Commercial uses to the: east Hoover Avenue facing north Commercial uses to the east Creek and vacant land to the west Hoover Avenue facing south RESOLUTION NO. 2017 — 51 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING A CERTIFICATION REGARDING NON -APPLICATION OF RELOCATION BENEFITS AND INDEMNIFICATION AGREEMENT BETWEEN THE CITY OF NATIONAL CITY, THE RELATED COMPANIES OF CALIFORNIA, LLC, AND THE STATE OF CALIFORNIA HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT FOR THE AFFORDABLE HOUSING AND SUSTAINABILITY COMMUNITIES GRANT PROGRAM AWARDED TO THE PARADISE CREEK PHASE II PROJECT LOCATED AT 2010 AND 2030 HOOVER AVENUE IN NATIONAL CITY WHEREAS, in 2010, the City acquired 2.15 acres of real property (the "Property") to be leased to the Related Companies, LLC ("Related") and devoted to the Paradise Creek Phase II Housing Project (the "Project"); and WHEREAS, under certain circumstances, when a public entity acquires real property, the public entity is required by state and federal relocation assistance laws to provide relocation assistance to any persons, businesses, or farms displaced by the acquisition; and WHEREAS, at the time of acquisition, the Property was vacant land; the land was not vacated for the Project; no occupants were displaced from their homes, businesses, or farms as a result of the acquisition; as a result of construction of the Project, no housing, business, or farm was affected, no personal property was required to be moved, and no households had to be displaced. Accordingly, the circumstances that would require relocation assistance were not present; and WHEREAS, at the request of the State of California Housing and Community Development Department (the "Department"), the City and Related have executed a "Certification Regarding Non -Application of Relocation Benefits" certifying that the relocation assistance laws were not applicable to the acquisition, and an Indemnification Agreement indemnifying and holding harmless the Department from any legal costs and liabilities arising from any proceeding to void or set aside the Certification. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby ratifies the Certification Regarding Non -Application of Relocation Benefits, and the Indemnification Agreement indemnifying and holding harmless the State of California Housing and Community Development Department from any costs and legal liabilities arising from any proceeding to void or set aside the Certification. PASSED and ADOPTED this 18th day of April, ATTEST: c ael R. Dalla N a.E%t� Mi , City Clerk Morrison, Mayor APPROVED AS TO FORM: George H. Eiser, III Interim City Attorney Passed and adopted by the Council of the City of National City, California, on April 18, 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 Nati• al City, California A City CI • rk of the City of ational City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2017-51 of the City of National City, California, passed and adopted by the Council of said City on April 18, 2017. City Clerk of the City of National City, California By: Deputy CITY OF NATIONAL CITY, CALIFORNIA COUNCIL AGENDA STATEMENT cao1 MEETING DATE: April 18, 2017 AGENDA ITEM NO. 5 TEM TITLE: Resolution of the City Council of the City of National City ratifying a Certification Regarding Non - Application of Relocation Benefits and Indemnification Agreement between the City of National City, the Related Companies of California, LLC, and the State of California Housing and Community Development Department for the Affordable Housing and Sustainability Communities Grant Program awarded to the Paradise Creek Phase II Project located at 2010 and 2030 Hoover Avenue in National City. PREPARED BY: Carlos Aguirre, Housing & Economic Dev. Mgr. PHONE: 619-336-4391 EXPLANATION: DEPARTMENT: APPROVED BYc' Housing & Economic veloprient Please see attached memorandum from Interim City Attorney, and Attachments No. 1 and 2. FINANCIAL STATEMENT: ACCOUNT NO. n/a ENVIRONMENTAL REVIEW: n/a ORDINANCE: INTRODUCTION: FINAL ADOPTION: APPROVED: APPROVED: Finance MIS STAFF RECOMMENDATION: Adopt the Resolution. BOARD / COMMISSION RECOMMENDATION: n/a ATTACHMENTS: \ttach. No. 1: Background Report \ttach. No. 2: Certification Regarding Non -Application of Relocation Benefits and Indemnification Agreement Attach. No. 3: Memorandum from Interim City Attorney eeso�vou N0. rd0VI•$� Attachment No. 1 Background Report Certification Regarding Non -Application of Relocation Benefits This Certification is made by The Related Companies of California, LLC, a California limited liability company and The City Of National City, A California municipal corporation, (together as the "Sponsor"), for the benefit of the Department of Housing and Community Development, a public agency of the State of California, its successors and assigns (the "Department"), and is dated as of March 3, 2017, for reference purposes. The Related Companies of California, LLC, through its organizational structure, control Paradise Creek II Housing Partners, L.P., a California limited partnership (the "Borrower"), which owns the Paradise Creek Phase II Housing Project ("Project") consisting of 92 housing units under development. The Sponsor was awarded $5,480,271 in AHSC Grant funds, and $3,760,617 in AHSC Loan Funds for the Paradise Phase II Housing Project. The Sponsor certifies the vacant land contains only an empty site which was not vacated for the Project (i.e. previous tenants were not displaced for the Project). The Sponsor also certifies no previous occupants were displaced from their homes, businesses, or farms for the Department's Project as a result or an owner refusing to renew a lease, i.e. the property was not vacated for the Department's Project. It is understood that If relocation benefits are found to be applicable then the Sponsor shall prepare a relocation plan and shall be solely responsible for providing the assistance and benefits as required under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (California Government Code 7260 et seq), and the Relocation Guidelines (Title 25 of the California Code of Regulations Section 6000 et seq); and Sponsor shall indemnify and hold harmless the Department from any liabilities or claims for relocation - related costs. Indemnity Agreement The purpose of the Indemnification Agreement is to allow the Department to be held harmless in connection with any and all potential legal costs and liabilities in conjunction with accepting certification from Sponsor that no relocation plan was necessary. As part of the construction of the Project (attributed to 14-AHSC-10481 and14-AHSC- 10483), the Sponsor agrees to defend, indemnify, release and hold harmless the Department, its agents, officers, attorneys, employees and committees from any claim, action or proceeding brought against any of the foregoing individuals or entities, the purpose of which is to attack, set aside, void or annul the approval of the above mentioned "Certification Regarding Non -Application of Relocation Benefits." This indemnification shall include, but not be limited to, all damages, costs, expenses, attorney fees or expert witness fees that may be asserted by any person or entity, including the Sponsor, arising out of or in conjunction with the approval of the Project's construction, except loss or liability caused by the Department's sole negligence or willful misconduct. If, for any reason any portion of this indemnification agreement is held to be void or unenforceable by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect. Page 1 of 1 Attachment No. 2 Certification Regarding Non -Application of Relocation Benefits and Indemnification Agreement Paradise Creek Phase 1I Certification Regarding Non -Application of Relocation Benefits This document is used by the Sponsor of a housing project to show and certify that no relocation plan was necessary for the project. The certification is regarding a certain project known as Paradise Creek Phase II, located at 2010 and 2030 Hoover Avenue, San Diego, CA 91950 (the "Project"). This Certification is made by The Related Companies of California, LLC, a California limited liability company and The City Of National City, A California municipal corporation, (the "Sponsors"), for the benefit of the Department of Housing and Community Development, a public agency of the State of Califomia, its successors and assigns (the 'Department"), and is dated as of March 3, 2017, for reference purposes. The Sponsor, through its organizational structure, control Paradise Creek II Housing Partners, L.P., a California limited partnership (the "Borrower"), which owns the aforementioned Project. In conducting its due diligence, the Department requested that the Sponsor provide any and all information relating to potential relocation issues involving the Project. In response, Sponsor provided the Department the following information and documents supporting its position that no relocation was necessary: 1. Land Appraisal for Paradise Creek Apartments Phase 11 Site, Report Date: May 8, 2015 Paradise Creek - Phase 11 is the second phase of a two -phased project. Phase 1 is currently under construction and consists of 108 affordable rental apartments (plus one manager's unit). Phase 1 is expected to be complete by the end of 2016. Phase 2 will consist of 91 affordable rental apartments (plus one manager's unit) for a combined total of 199 affordable units (plus two manager's unit). The Sponsor was awarded $5,480,271.00 in AHSC Grant funds, and $ 3,760,617.00in AHSC Loan Funds. Sponsor has been informed that: (1) Federal and State Relocation Assistance laws provide uniform, fair and equitable treatment for persons whose real property is acquired or who are displaced as a result of govemment or government -assisted programs or projects; and (2) Property owners who sell their property in voluntary acquisitions are not displaced persons and are not eligible for relocation assistance and payment benefits. However, tenant occupants who are displaced as a result of the acquisition may be eligible for all applicable relocation benefits. A tenant -occupant who moves as a result of Page 1 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Attachment No. 2 a voluntary acquisition for a govemment-assisted project may be eligible for relocation assistance as a displaced person. Such displaced persons may include not only current lawful occupants, but also former tenants required to move for any reason other than an eviction for cause in accordance with applicable federal, state, and local law. Sponsor has not used the services of a recognized relocation specialist in determining that relocation assistance is not applicable. Representations The Sponsor has represented to the Department the following: (a) that the new construction of the Project will not result in temporary or permanent relocation of any tenant or owner -occupant; (b) the Project construction work will be done on vacant land, and (c) that the site for Phase II is currently being used as a construction site and for storage (described in Exhibit A); and therefore no relocation will be required. The Sponsor has also represented to the Department the following: (a) the vacant land was not intentionally created to be vacant so as to circumvent relocation law; (b) there was no owner -occupant or tenant or mobile home or business (which at minimum includes a parking business, billboards and other forms of outdoor advertising displays) or, farm previously on the vacant land; (c) no person or entity was required to move personal property from vacant land; (d) no advertising signs were lost in creation of the vacant land and (e) there was no 'displaced person' pursuant to Govemment Code 7260(b), (c) and (d); whereby a "displaced person" is a person who is entitled to relocation assistance when he or she must move from real pro.perty, or move personal property from real property, as a direct result of a notice of intent to acquire, or acquisition of real property for a program or project by a public entity, or acquisition by any person having an agreement with or acting on behalf of a public entity; (f) no prior lease (on the vacant land) was intentionally not renewed to create the vacant land; (g) no person's property was acquired in connection with a state or federally funded project; and (h) no person's property was displaced in connection with a state or federally funded project. Certification Sponsor certifies the vacant land contains only an empty site which was not vacated for the Project (Le. previous tenants were not displaced for the Project). Sponsor certifies no previous occupants were displaced from their homes, businesses, or farms for the Department's Project as a result or an owner refusing to renew a lease, i.e. the property was not vacated for the Department's Project. Page 2 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Attachment No. 2 Sponsor certifies that as a result of construction of the Project, no housing, business nor farm will be affected, no personal property was required to be moved, and no households will have to be displaced. The undersigned, the Sponsor, do hereby certify as follows: 1. The foregoing is true and correct; 2. The Sponsor is duly authorized to execute, in its name, all documents and certifications required by the Department in order for it to carry out any construction of the Development and Sponsor will comply with relocation law requirements; 3. That the Department would not approve the construction of the Development without this certification; and 4. It is understood that if relocation benefits are found to be applicable then the Sponsor shall prepare a relocation plan and shall be solely responsible for providing the assistance and benefits as required under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (California Government Code 7260 et seq), and the Relocation Guidelines (Title 25 of the California Code of Regulations Section 6000 et seq); and Sponsor shall indemnify and hold harmless the Department from any liabilities or claims for relocation -related costs; (see below Indemnity Agreement). I certify under penalty of perjury under the laws of the State of California that the foregoing is true and correct. SPONSORS: The Related Companies of California, LLC, a California limited liability company IJ� Frank Cardone, President By: [Signatures continued on Next Page] Page 3 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Attachment No 2 City of National City, a California municipal corporation By: Ron Morrison, Mayor APPROVED AS TO FORM: George Eiser, Interim City Attorney [Remainder of the page left blank. Indemnification Agreement follows on the next page of this Certification]. Page 4 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Attachment No. 2 Indemnification Agreement As part of the construction of the Project (attributed to 14-AHSC-10481 and14-AHSC- 10483), Sponsor agrees to defend, indemnify, release and hold harmless the Department, its agents, officers, attorneys, employees and committees from any claim, action or proceeding brought against any of the foregoing individuals or entities, the purpose of which is to attack, set aside, void or annul the approval of the above mentioned "Certification Regarding Non -Application of Relocation Benefits." This indemnification shall include, but not be limited to, all damages, costs, expenses, attorney fees or expert witness fees that may be asserted by any person or entity, including the Sponsor, arising out of or in conjunction with the approval of the Project's construction, except loss or liability caused by the Department's sole negligence or willful misconduct. If, for any reason any portion of this indemnification agreement is held to be void or unenforceable by a court of competent jurisdiction, the remainder of the agreement shall remain in full force and effect. NOTE: The purpose of the Indemnification Agreement is to allow the Department to be held harmless in connection with any and all potential legal costs and liabilities in conjunction with accepting certification from Sponsor that no relocation plan was necessary. SPONSORS: The Related Companies of California, LLC, a California limited liability company By: Frank Cardone President City of National City, a California municipal corporation By: Ron Morrison, Mayor APPROVED AS TO FORM: George Eiser, Interim City Attorney Page 5 of 6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. II HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Attachment No. 2 Exhibit A Consists of the following: Pages 1, 3, 5, 31, 32, and both pages of subject photos (7) pages from the Land Appraisal for Paradise Creek Apartments Phase II Site, Report Date: May 8, 2015 Page 6of6 Template Date: February 15, 2017 Date: March 3, 2017 Project: Paradise Creek Ph. 11 HCD Program Awards: 14-AHSC-10481 and14-AHSC-10483 Type of Constrution: New Construction, Vacant Land Attachment No. 2 Land Appraisal Paradise Creek Apartments Phase II Site 2.15 acres of parcels: 560-206-07, 560-391-05, 559-124-07, and 559-124-06 National City, California 94950 Effective Date: April 7, 2015 Report Date: May 8, 2015 Marie Debor Paradise Creek II Housing Partners L.P. 18201 Von Karman Ave., Suite 900 Irvine, CA 92612 Southern California PO Box 68 Corona Del Mar, California (818) 914-1892 LEA & COMPANY Midwest Omaha 11060 Oak Street Suite 6 Omaha, Nebraska (402) 202-0771 Midwest Kansas City 6804 Mastin Drive Merriam, Kansas (402) 305-1693 Attachment No. 2 LEA & COMPANY FACTUAL DESCRIPTION Property Identification The property appraised consists of 2.15 acres of parcel numbers 560-206-07, 560-391-05, 559-124- 07, and 559-124-06 which are located in National City. The entire site consists of a total of 12.44 acres, which includes the aforementioned Subject parcels, the Phase I parcel numbers 560-391-12 and 559-124-08, and the proposed community park parcel number of 560-391-11. The Subject site is vacant and currently being used as a construction site while Paradise Creek Phase I is being built. There is a creek that traverses south to northeast through the site. The developer acquiring the site plans to construct a total of 201 units that will be income - restricted, as per LIHTC guidelines as well as a community park on the western portion of the site. The construction will be completed in two phases. Phase 1, which is under construction, will consist of 109 units in two residential buildings on 4.11 acres, and the park and creek which is 6.15 acres. Phase II will consist of 92 units in two residential buildings on 2.15 acres. This appraisal is to provide an opinion of market value of the residential portion of Phase 11 or the 2.15 acres of land. Photos of the Subject have been included in the Addenda. Compliance and Competency Provision We are aware of the compliance and competency provisions of USPAP, and within our understanding of those provisions, this report complies with all mandatory requirements, and the authors of this report possess the education, knowledge, technical skills, and practical experience to complete this assignment competently, in conformance with the stated regulations. Unavailability of Information In general, all information necessary to develop an estimate of value of the Subject property was available to the appraisers. Intended Use and Intended Users of Appraisal The intended users of this report include Paradise Creek II Housing Partners L.P., and its assigns, TCAC/CDLAC and city of National City. TCAC/CDLAC may rely upon the appraisal as intended users related to affordable housing subsidies applications. The intended use of the appraisal is to provide assistance with investment analysis decisions. Property Interest Appraised The property interest appraised is the fee simple interest. Date of Inspection and Effective Date of Appraisal The Subject was last inspected and photographed on April 7, 2015. This shall be the effective date of the appraisal. 3 Attachment No 2 LEA & COMPANY • Brent R. Griffiths provided significant professional appraisal assistance in the preparation of this report. This assistance included the collection and contu-mation of market data, draft of the report, and a preliminary opinion of the Market Value under the supervision of Jay A. Wortmann, MAI and Byron N. Lea, MAI Ownership and History of Subject The property appraised consists of 2.15 acres of parcel numbers 560-206-07, 560-391-05, 559-124- 07, and 559-124-06 which are located in National City. These parcels were deeded to Community Development Commission -Housing Authority of the City of National City from the City of National City, a Municipality, on August 28, 2013. The city has agreed to lease the land to the developer for 99 years at a rate of S I per year. We are not aware of any other transfers of these properties. The site is not currently exposed to the market. This appraisal assignment does not provide an indication of leased fee interest or potential leasehold estate(s). 5 Attachment No. 2 LEA & COMPANY SITE DESCRIPTION Existing Improvements: The site is vacant and currently being used as a construction site while Paradise Creek Phase I is being built. Currently, there is a large pile of dirt that is on the site and will be dispersed between Phase I and II. Size: The site is a total of 2.15 acres of the entire 12.44 acres. Identification: 2.15 acres of parcel numbers 560-206-07, 560-391-05, 559- 124-07, and 559-124-06. Topography: The site is flat. Vegetation: No vegetation. Zoning: The Subject's site is currently zoned MCR-2, Mixed Use Commercial Residential, which permit several uses; a zoning document provided by the city of National City identifying allowable uses is included in the addendum. An apartment complex is an allowable use. The minimum density is 24 units per acre (52 units) and the maximum density is 60 units per acre (129 units). The upper limits within the zoning requires construction greater than six stories, which require greater cost steel frame construction versus wood frame construction. Interviews with the developer indicate Phase II plan is 92 units (42 units per acre), which incorporates wood frame construction, and is towards the lower density range permitted by zoning. Approvals from the city have been obtained for this density. The parking requirement for a multifamily project is 1.5 spaces for each unit of 1,200 square feet or greater and 1.0 spaces for each unit of 1,200 square feet or less. The zoning information was confirmed by Michael Fellows, Planning Technician for the city of National City. Proximity to Adverse Conditions: At this time, we are unaware of any detrimental influences that would impact on the value of the Subject. Drainage: Appears adequate, however no specific tests were performed. 31 Attachment No. 2 Soil and Subsoil Conditions: Environmental: Flood Plain: LEA& COMPANY We were not provided with a soil survey. However, we assume that an analysis will be completed and any mitigation will be remedied, and the site will possess adequate load bearing capacity for development. We were not provided an environmental report and did not observe any obvious environmental hazards during our site inspection. However, we are not experts within this field. According to the Floodscape Flood Hazards Map Number 06073C1911G, dated May 16, 2012, a portion of the Subject is a moderate and high flood risk area. Because the project is located in a flood zone, the habitable space for both phases is being elevated by approximately one foot to raise the buildings out of the flood zone. The developer stated that flood insurance was required at the construction loan closing of Phase I and expects to obtain flood insurance for the Subject (Phase II) as well. Photographs: Subject photos are included in the Addenda. 32 Attachment No. 2 su'il ect Another view of Subject SUBJECT PHOTOGRAPHS Arlo;h.T view of Subject Another view of Suhiect *- J ... ...� •Tt •Fit. �I -7; •\1V' Another view of Subject Another view of Subject Attachment No. 2 SUBJECT PHOTOGRAPHS r 444,4010. Creek and Rimbaii Elementary School to the north Commercial uses to the east Hoover Avenue facing north ikr rim „I Gi I! i #1b ..: . Commercial uses to the cast .,'• 'e.# 3xt: Creek and vacant land to the west Hoover Avenue facing south Mayor Ron Morrison Council Members Jerry Cano Alejandra Sotelo-Solis Mona Rios Albert Mendivil TO: FROM: SUBJECT: NATIONA Office of the City Attorney MEMORANDUM Mayor and City Council Interim City Attorney Resolution Ratifying Certification of Non -Application of Relocation Benefits and Indemnification Agreement Interim City Attorney George H. Eiser, III Senior Assistant City Attorney Nicole Pedone Deputy City Attorney Roberto M. Contreras DATE: April 12, 2017 In 2010, the City acquired 2.15 acres of real property (the "Property") to be leased to the Related Companies, LLC ("Related") and devoted to the Paradise Creek Phase II Housing Project (the "Project"). Under certain circumstances, when a public entity acquires real property, the public entity is required by state and federal relocation laws to provide relocation assistance to any persons, businesses, or farms displaced by the acquisition. At the time of acquisition, the Property was vacant land; the land was not vacated for the Project; no occupants were displaced from their homes, businesses, or farms as a result of the acquisition; as a result of construction of the Project, no housing, business, or farm was affected, no personal property was required to be moved, and no households had to be displaced. Accordingly, the circumstances that would require relocation assistance were not present. At the request of the State of California Housing and Community Development Department (the "Department"), the City and Related have executed a "Certification Regarding Non -Application of Relocation Benefits" certifying that the relocation assistance laws were not applicable to the acquisition, and an Indemnification Agreement indemnifying and holding harmless the Department from any legal costs and liabilities arising from any proceeding to void or set aside the Certification. It is requested that the City Council ratify the aforementioned Certification Regarding Non - Application of Relocation Benefits, and the Indemnification Agreement. CD, I) George H. Eiser, III Interim City Attorney 1243 National City Boulevard; National City, California 91950-4397 Tel.: (619) 336-4220 Fax: (619) 336-4327 RESOLUTION NO. 2017 — RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RATIFYING A CERTIFICATION REGARDING NON -APPLICATION OF RELOCATION BENEFITS AND INDEMNIFICATION AGREEMENT BETWEEN THE CITY OF NATIONAL CITY, THE RELATED COMPANIES OF CALIFORNIA, LLC, AND THE STATE OF CALIFORNIA HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT FOR THE AFFORDABLE HOUSING AND SUSTAINABILITY COMMUNITIES GRANT PROGRAM AWARDED TO THE PARADISE CREEK PHASE II PROJECT LOCATED AT 2010 AND 2030 HOOVER AVENUE IN NATIONAL CITY WHEREAS, in 2010, the City acquired 2.15 acres of real property (the "Property") to be leased to the Related Companies, LLC ("Related") and devoted to the Paradise Creek Phase II Housing Project (the "Project"); and WHEREAS, under certain circumstances, when a public entity acquires real property, the public entity is required by state and federal relocation assistance laws to provide relocation assistance to any persons, businesses, or farms displaced by the acquisition; and WHEREAS, at the time of acquisition, the Property was vacant land; the land was not vacated for the Project; no occupants were displaced from their homes, businesses, or farms as a result of the acquisition; as a result of construction of the Project, no housing, business, or farm was affected, no personal property was required to be moved, and no households had to be displaced. Accordingly, the circumstances that would require relocation assistance were not present; and WHEREAS, at the request of the State of California Housing and Community Development Department (the "Department"), the City and Related have executed a "Certification Regarding Non -Application of Relocation Benefits" certifying that the relocation assistance laws were not applicable to the acquisition, and an Indemnification Agreement indemnifying and holding harmless the Department from any legal costs and liabilities arising from any proceeding to void or set aside the Certification. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby ratifies the Certification Regarding Non -Application of Relocation Benefits, and the Indemnification Agreement indemnifying and holding harmless the State of California Housing and Community Development Department from any costs and legal liabilities arising from any proceeding to void or set aside the Certification. PASSED and ADOPTED this 18th day of April, 2017. Ron Morrison, Mayor ATTEST: APPROVED AS TO FORM: Michael R. Dalla, City Clerk George H. Eiser, III Interim City Attorney �/`a��q�amnioig� ALCt %AvATEU A , CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950-4397 619-336-4228 Michael R. Dalla, CMC - City Clerk THE RELATED COMPANIES OF CALIFORNIA, LLC Certification Regarding Non -Application of Relocation Benefits and Indemnification Agreement Paradise Creek Phase II Carlos Aguirre (Housing & Economic Development) Forwarded Copy of Agreement to The Related Companies of California.