Res 06-087
RESOLUTION NO. 06-087
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA
DETERMINING THAT THE ROAD IMPROVEMENT, SEWER AND STORM
DRAINAGE PROJECTS ADJACENT TO THE PROPOSED BRIGHTON AFFORDABLE
HOUSING PROJECT ARE OF BENEFIT TO THE PAGUAY REDEVELOPMENT
PROJECT AND AUTHORIZING PAYMENT OF AGENCY LOW AND MODERATE
INCOME HOUSING FUNDS THEREFOR
WHEREAS, the Poway Redevelopment Agency (the "Agency") is authorized to carry
out the redevelopment of the Paguay Redevelopment Project (the "Project"), pursuant to
the Redevelopment Plan for the Project which was adopted on December 13, 1983, by
Ordinance No. 117 of the City Council, as amended; and
WHEREAS, the City and the Agency, in partnership with the local business and
residential community, have identified a need for certain street improvements, sewer and
storm drainage improvements on and adjacent to Midland Road between Edgemoor Street
and Aubrey Street in the Old Poway Park area of the City, which is located within the
boundaries of the Project (the "Old Poway Park Infrastructure Improvements"); and
WHEREAS, the Agency has acquired approximately 3.5 acres of land for an
affordable housing project to be located within the Old Poway Park area, on the west side
of Brighton Avenue between Edgemoor Street and Temple Street (the "Brighton Affordable
Housing Project"); and
WHEREAS, the Agency has selected San Diego Interfaith Housing Foundation as
the developer for the proposed Brighton Affordable Housing Project, and has entered into
an Exclusive Negotiating Agreement with San Diego Interfaith Housing Foundation which
provides for the planning of the project and negotiation of a Disposition and Development
Agreement for the project; and
WHEREAS, pursuant to the schedule set forth in the Exclusive Negotiating
Agreement, the Agency expects that the Disposition and Development Agreement will be
prepared, negotiated and approved within seven to ten months after the date of the
Exclusive Negotiating Agreement, and that construction of the Brighton Affordable Housing
Project will commence within approximately four months after Low Income Housing Tax
Credits are awarded to the project; and
WHEREAS, the Exclusive Negotiating Agreement contemplates that all of the
apartment units to be constructed in the Brighton Affordable Housing Project will be rented
at affordable rents to low and moderate income households; and
WHEREAS, a portion of the Old Poway Park Infrastructure Improvements are
located directly adjacent to the site of the Brighton Affordable Housing Project, within the
unnamed street on the western boundary of the site of the Brighton Avenue Housing
Project, and such improvements will directly serve and benefit the Brighton Affordable
Housing Project; and
Resolution No. 06-087
Page 2
WHEREAS, such improvements of benefit to the Brighton Affordable Housing
Project include the construction of the street, curbs, gutters, sidewalks, storm drain,
rehabilitation of an existing sewer line and installation of sewer laterals for connection to
the project, water main upgrades and stub-outs for future connection to the project, and
traffic calming (the "Brighton Infrastructure Improvements"); and
WHEREAS, substantial cost savings would result by constructing the Brighton
Infrastructure Improvements as part of the construction of the Old Poway Park
Infrastructure Improvements, rather than constructing the Brighton Infrastructure
Improvements as a separate project at a later time; and
WHEREAS, the Brighton Infrastructure Improvements are necessary for vehicular
and pedestrian access to the Brighton Affordable Housing Project, and for the provision of
sewer and water service to the project, and to provide for proper storm drainage from the
project; and
WHEREAS, pursuant to Section 33445 of the California Health and Safety Code,
the Agency may, with the consent ofthe City Council, pay for all or part of the cost of public
improvements if the City Council determines that the public improvements are of benefit to
the Project, that no other reasonable means of financing are available for financing such
improvements, and that the public improvements will assist in the elimination of blighting
conditions inside the project area or provide housing for low or moderate income persons,
and that the improvements are provided for in the Redevelopment Plan and consistent with
the Agency's Implementation Plan; and
WHEREAS, the Brighton Infrastructure Improvements are of benefit to the Project
by providing infrastructure improvements which are necessary for the construction and
operation of the Brighton Affordable Housing Project; and
WHEREAS, the City and the Agency have made every reasonable effort to seek
alternative sources of funds for the Brighton Infrastructure Improvements, through
solicitation of grants and donations, imposition of appropriate fees, and use of other City
funds, but these funds have been insufficient to pay for the full cost of the Brighton
Infrastructure Improvements; and
WHEREAS, the Redevelopment and Housing Implementation Plan for the Project
provides that the Brighton Affordable Housing Project may include up to 91 affordable
multifamily housing units, and further provides for the installation of public facilities and
improvements to revitalize and leverage private investments in the Project area; and
WHEREAS, the Redevelopment Plan for the Project provides for the Agency to
increase and improve the community's supply of housing which is affordable to low and
moderate income households, and for the construction of adequate roadways and traffic
and circulation improvements to correct street alignment problems and substandard alleys,
to eliminate road hazards and to provide adequate street and freeway access throughout
and nearby the Project Area; and
Resolution No. 06-087
Page 3
WHEREAS, the Agency may use its Low and Moderate Income Housing Fund to
pay to improve real property or building sites with onsite or offsite improvements, but only if
both (A) the improvements are part of the new construction or rehabilitation of affordable
housing units for low- or moderate-income persons that are directly benefited by the
improvements, and are a reasonable and fundamental component of the housing units,
and (8) the Agency requires that the units remain available at affordable housing cost to,
and occupied by, persons and families of extremely low, very low, low, or moderate
income, which contain the long-term covenants required under redevelopment law; and
WHEREAS, the Brighton Affordable Housing Project will provide affordable housing
for low and moderate income persons; and
WHEREAS, the City Engineer has calculated that the City would impose
development impact fees of approximately $677,734,000 upon the Brighton Affordable
Housing Project, assuming that the project contains 91 apartment units, and such fees
would have been used to pay Infrastructure Improvements, such as Brighton Housing
Infrastructure Improvements; and
WHEREAS, the City Engineer has calculated that the Brighton Affordable Housing
Project would receive approximately 85 percent of the benefit ofthe Brighton Infrastructure
Improvements.
NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Poway as
follows:
Section 1. The City Council hereby determines that the Brighton Infrastructure
Improvements will be of benefit to the Paguay Redevelopment Project and the surrounding
community in that the improvements will provide vehicular and pedestrian access to, will
provide water and sewer services to, and will provide for proper storm drainage from, the
Brighton Affordable Housing Project, as necessaryforthe construction and operation ofthe
Brighton Affordable Housing Project.
Section 2. The City Council hereby determines that no other reasonable means of
financing the Brighton Infrastructure Improvements are available to the community. The
Agency finds that Agency staff have made every reasonable effort to seek alternative
sources of funds prior to consideration of Agency funds for the Brighton Infrastructure
Improvements, grants have been sought, donations requested, and other Agency funds
have been utilized for other projects as appropriate within the guidelines of fiscal prudence,
but the Agency has sufficient funds to pay for necessary improvements. The City Council
further finds that development fees, property tax, and other sources of revenue will not be
sufficient to pay for the identified Brighton Infrastructure Improvements.
Section 3. The City Council hereby determines that the payment of funds for the Brighton
Infrastructure Improvements will provide affordable housing for persons of low and
moderate income, which will contain the long-term covenants required under
redevelopment law.
Resolution No. 06-087
Page 4
Section 4. The City Council hereby determines that the payment of funds for the
Brighton Infrastructure Improvements is consistent with the Redevelopment and Housing
Implementation Plan.
Section 5. The City Council hereby determines that the Brighton Infrastructure
Improvements are provided for in the paguay Redevelopment Plan.
Section 6. The City Council hereby determines that the Brighton Infrastructure
Improvements are part of the new construction or rehabilitation of affordable housing units
for low- or moderate-income persons that will be directly benefited by the Brighton
Infrastructure Improvements, and are a reasonable and fundamental component of the
housing units at the Brighton Affordable Housing Project.
Section 7. The Agency hereby approves the expenditure of $294,000 which is a portion
of the $677,734 impact fees from the Agency's Low and Moderate Income Housing Fund
for the advance payment of the portion of the estimated development impact fees which
will be assessed by the City in connection with the development of the Brighton Affordable
Housing Project, which payment shall be used to pay for a portion of the cost of the
Brighton Infrastructure Improvements, and for no other purposes.
Section 8. Upon the approval of the Disposition and Development Agreement for the
Brighton Affordable Housing Project, and the completion of construction of the Brighton
Affordable Housing Project, the Agency shall consult with the City Engineer to review the
determination of the development impact fees which would have been payable by the
Brighton Affordable Housing Project, and the City Engineer's determination that the
Brighton Affordable Housing Project would receive approximately 85 percent of the benefit
of the Brighton Infrastructure Improvements. In the event that the City Engineer finds that
the portion of the development impact fees would be less than $294,000, or that the
Brighton Affordable Housing Project would receive less than 85 percent of the benefit of
the Brighton Infrastructure Improvements, the appropriate expenditure for the Brighton
Infrastructure Improvements shall then be recalculated, and the Agency shall transfer the
excess amount to the Agency's Low and Moderate Income Fund, plus interest at the rate
percent per annum, from other funds of the Agency.
Section 9. In the event that the Agency determines that an affordable housing project
will not be constructed upon the Brighton Affordable Housing Project Site, the Agency shall
promptly transfer the full amount paid hereunder to the Agency's Low and Moderate
Income Fund, plus interest at the rate equal to the City average investment rate of return
percent per annum, from other funds of the Agency.
Section 10. The City Clerk shall certify to the adoption of this Resolution.
Resolution No. 06-087
Page 5
PASSED, ADOPTED AND APPROVED by the City Council of the City of Poway,
State of California, at a regular meeting this 14th day of November 2006.
Micha
ATTES~
!J ~
L. Diane Shea, City Clerk
STATE OF CALIFORNIA )
) SS
COUNTY OF SAN DIEGO )
I, L. Diane Shea, City Clerk of the City of Poway, do hereby certify under penalty
of perjury that the foregoing Resolution No. 06- 087 was duly adopted by the City
Council at a meeting of said City Council held on the 14th day of November 2006, and
that it was so adopted by the following vote:
AYES:
BOYACK, EMERY, HIGGINSON, REXFORD, CAFAGNA
NOES:
NONE
ABSENT:
NONE
DISQUALIFIED: NONE
~~~
L. Di ne Shea, City Clerk
City of Poway