Res 05-069
RESOLUTION NO. 05-069
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY
CONSENTING TO THE APPROVAL OF A DISPOSITION AND DEVELOPMENT
AGREEMENT BY AND BETWEEN THE POWAY REDEVELOPMENT AGENCY
AND COMMUNITY HOUSINGWORKS, AND MAKING CERTAIN FINDINGS IN
CONNECTION THEREWITH
WHEREAS, the Poway Redevelopment Agency (the "Agency") is engaged in
activities necessary to carry out and implement the Redevelopment Plan for the Paguay
Redevelopment Project (the "Project"); and
WHEREAS, in order to carry out and implement such Redevelopment Plan the
Agency proposes to enter into that certain Disposition and Development Agreement (the
"Agreement") with Community HousingWorks (the "Developer") for the development of
certain property located within the Project Area adjacent to and west of Community
Road, and south of Hilleary Place in the City of Poway (the "Site"), all as described in
the Agreement; and
WHEREAS, the Developer desires to acquire the Site for the purpose of
developing a housing project (the "Housing Development") on the Site, which will
generally consist of a rental housing complex containing fifty-six (56) units, with
associated parking, landscaping and community facilities; and
WHEREAS, the construction and operation of the Housing Development is
intended to implement the Agency's goals and objectives under the Act to provide
decent, safe and sanitary housing for persons and families of low and moderate income,
and to increase, improve and preserve housing available at affordable housing cost to
persons and families of low and moderate income, pursuant to the Redevelopment Plan
and Health & Safety Code Sections 33334.2, et seq., and 33413; and
WHEREAS, the Developer has submitted to the Agency and the City Council of
the City of Poway (the "City Council") copies of the Agreement in a form executed by
the Developer; and
WHEREAS, pursuant to the Agreement, the Agency would ground lease the Site
to the Developer, and the Developer would construct and operate the Housing
Development on the Site; and
WHEREAS, the rent payable by Developer for the Site pursuant to the
Agreement is not less than the fair reuse rental value of the Site, as determined by a
reuse value analysis commissioned by the Agency; and
WHEREAS, pursuant to Section 33433 of the Community Redevelopment Law
(California Health and Safety Code Section 33000, et seq.), the Agency is authorized,
with the approval of the City Council after a duly noticed public hearing, to lease the Site
for development pursuant to the Redevelopment Plan upon a determination by the City
Council that the lease of the property will either assist in the elimination of blight or
provide affordable housing for low- and moderate-income
Resolution No. 05-069
Page 2
persons, that the consideration for such lease is not less than either the fair market
value or fair reuse value of the Site in accordance with the covenants and conditions
governing the lease and the development costs required thereof, and that the lease is
consistent with the implementation plan which has been adopted by the Agency for the
Project; and
WHEREAS, a joint public hearing of the Agency and City Council on the
proposed Agreement was duly noticed in accordance with the requirements of Health
and Safety Code Sections 33431 and 33433; and
WHEREAS, the proposed Agreement, and a summary report meeting the
requirements of Health and Safety Code Section 33433, were available for public
inspection prior to the joint public hearing consistent with the requirements of Health
and Safety Code Section 33433; and
WHEREAS, on June 28, 2005, the Agency and City Council held a joint public
hearing on the proposed Agreement, at which time the City Council reviewed and
evaluated all of the information, testimony, and evidence presented during the joint
public hearing; 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 City Council has reviewed the summary required pursuant to
Health and Safety Code Section 33433 and evaluated other information provided to it
pertaining to the findings required pursuant to Health and Safety Code Section 33433;
and
WHEREAS, the City Council has previously determined, in its adoption of the
ordinance approving the Paguay Redevelopment Project, that the Site was blighted;
and
WHEREAS, the Agreement would provide for the elimination of such blighting
conditions by providing for the construction of a high quality multifamily housing
development on the Site; and
WHEREAS, the Agreement would provide affordable housing for low and
moderate income persons on the Site; and
WHEREAS, the Agency has adopted an Implementation Plan pursuant to Health
and Safety Code Section 33490, which specifically identifies the intent of the Agency to
provide for the development on the Site of affordable housing for low and moderate
income households; and
WHEREAS, the Agreement will assist the Agency in meeting the objectives set
forth in the Implementation Plan by providing for the development and operation of the
Housing Development on the Site; and
Resolution No. 05-069
Page 3
WHEREAS, the Legislature declares in Health and Safety Code Section 36000,
et seq., that new forms of cooperation with the private sector, such as leased housing,
disposition of real property acquired through redevelopment, development approvals,
and other forms of housing assistance may involve close participation with the private
sector in meeting housing needs, without amounting to the development, construction or
acquisition of low rent housing projects as contemplated under Article XXXIV of the
State Constitution; and
WHEREAS, Health and Safety Code Section 37001.5 provides that a public body
does not develop, construct or acquire a low rent housing project under Article XXXIV of
the State Constitution when the public body provides assistance to a low rent housing
project and monitors construction or rehabilitation of the project to the extent of carrying
out routine governmental functions, performing conventional activities of a lender, and
imposing constitutionally mandated or statutorily authorized conditions accepted by a
grantee of assistance; and
WHEREAS, the Agreement provides for assistance by the Agency to the
Housing Development, and the Agency's monitoring of the construction of the Housing
Development to the extent of carrying out routine governmental functions, performing
conventional activities of a lender, and imposing constitutionally mandated or statutorily
authorized conditions accepted by a grantee of assistance; and
WHEREAS, Health and Safety Code Section 37001(a) provides that the term
"low-rent housing project," as defined in Article XXXIV of the California Constitution,
does not apply when the development is privately owned housing, receiving no ad
valorem property tax exemption, other than exemptions granted pursuant to subdivision
(f) or (g) of Section 214 of the Revenue and Taxation Code, not fully reimbursed to all
taxing entities; and not more than 49 percent of the dwellings, apartments, or other
living accommodations of the development may be occupied by persons of low income;
and
WHEREAS, the Housing Development required under the Agreement is to be
privately owned by the Developer, will receive no ad valorem property tax exemption
other than exemptions granted pursuant to subdivision (f) or (g) of Section 214 of the
Revenue and Taxation Code, and less than 49 percent of the apartment units within the
Housing Development are required under the Agreement to be occupied by persons of
low income; and
WHEREAS, the City Council, as the Lead Agency pursuant to the California
Environmental Quality Act, California Public Resources Code Section 21000, et seq.
("CEQA"), has adopted on May 31, 2005 a Mitigated Negative Declaration in connection
with the City Council's approval of General Plan Amendment 05-01, Zone Change 05-
01, Specific Plan 05-01, Development Review (DR) 05-05, and DR 05-06; and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed Agreement and believes that the redevelopment of the Site pursuant thereto
is in the best interests of the City of Poway and the health, safety, and welfare of its
residents, and in accord with the public purposes and provisions of applicable state and
local laws and requirements.
Resolution No. 05-069
Page 4
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway
that:
Section 1. Each of the foregoing recitals is true and correct.
Section 2. The City Council finds and determines that, based upon substantial
evidence provided in the record before it, the consideration for the Agency's lease of the
Site pursuant to the terms and conditions of the Agreement is not less than the fair
reuse rental value of the Site, in accordance with covenants and conditions governing
the lease, and the development costs required under the Agreement.
Section 3. The City Council hereby finds and determines that the disposition of
the Site pursuant to the Agreement will eliminate blight within the Project Area by
providing for the proper reuse and redevelopment of a portion of the Project Area which
was declared blighted for the reasons described above.
Section 4. The City Council hereby finds and determines that the Agreement
would provide affordable housing for low- and moderate-income persons on the Site.
Section 5. The City Council hereby finds and determines that the Agreement
is consistent with the provisions and goals of the Implementation Plan.
Section 6. The City Council hereby determines that the Housing Development
does not constitute a "low rent housing project" within the meaning of Article XXXIV of
the State Constitution, and that the assistance to be provided pursuant to the
Agreement does not constitute development, construction or acquisition of a low-rent
housing project within the meaning of Article XXXIV of the State Constitution. This
Resolution is hereby deemed to constitute final approval of a proposal which may result
in housing assistance benefiting persons of low income, within the meaning of Health
and Safety Code Section 36005.
Section 7. The City Council hereby consents to the Agency's approval of the
Agreement and its lease of the Site pursuant to the Agreement.
Section 8. The City Council hereby finds and determines that there have been
no substantial changes in the Housing Development project or the circumstances under
which the Housing Development project is undertaken, and there is no new information
with respect to the Housing Development Project, which would require any further
environmental analysis or approvals pursuant to CEQA.
Section 9. This Resolution shall take effect from and after its date of adoption.
Resolution No. 05-069
Page 5
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway,
at a regular meeting, this 28th day of June 2005.
ATTEST:
L~~
STATE OF CALIFORNIA )
) SS.
COUNTY OF SAN DIEGO)
I, L. Diane Shea, City Clerk of the City of Poway, do hereby certify that the
foregoing Resolution No. 05-069, was duly adopted by the City Council at a meeting of
said City Council held on the 28th day of June 2005, and that it was so adopted by the
following vote:
AYES:
NOES:
BOYACK,EMERY,REXFORD,CAFANGA
NONE
ABSENT:
HIGGINSON
DISQUALIFIED:
NONE
~~
City of Poway