Res 08-006
RESOLUTION NO 08-006
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
POWAY CONSENTING TO THE APPROVAL OF A PURCHASE
AGREEMENT AND A LEASE AGREEMENT BY AND BETWEEN
THE POWAY REDEVELOPMENT AGENCY AND COUNTRY
MONTESSORI SCHOOL OF POWAY, AND MAKING CERTAIN
FINDINGS IN CONNECTION THEREWITH
WHEREAS, the Poway Redevelopment Agency ("Agency") is engaged in
activities necessary to ca rry out and implement the Redevelopment Plan
("Redevelopment Plan") for the Paguay Redevelopment Project ("Project Area"); and
WHEREAS, in order to carry out and implement such Redevelopment Plan the
Agency proposes to enter into that certain Purchase Agreement ("Purchase
Agreement") with Country Montessori School of Poway ("Seller") for the acquisition by
the Agency of that certain real property generally located at 12642 Monte Vista Road in
the City of Poway ("Property"); provided, the Seller's obligation to sell the Property to
Agency is conditioned upon the Seller's ability to obtain financing for the purchase of a
site ("Relocation Site") suitable for the relocation and expansion of the non-profit school
currently operated on the Property ("School"), and
WHEREAS, the Agency intends to acquire the Property with funds from its Low
and Moderate Income Housing Fund ("Housing Funds"), and
WHEREAS, the Property is located outside the Project Area, and
WHEREAS, the use of Housing Funds to acquire the Property will be of benefit to
the Paguay Redevelopment Project by making the Property available to the Agency for
the construction of high quality multifamily housing units on the Property which will be
made available to low and moderate income persons atan affordable rent; and
WHEREAS, the Agency and the Seller desire for the Agency to acquire the
Property from the Seller for a purchase price of Three Million, Four Hundred Thousand
Dollins ($3,400,000) ("Purchase Price"), and
WHEREAS, Agency also proposes to, enter into that certain Lease Agreement
("Lease Agreement" and, together with the Purchase Agreement, "Agreements") with
Seller, which provides that, upon Agency's acquisition of the Property from Seller
pursuant to the Purchase Agreement, Agency will lease the Property back to the Seller
for a term of no more than one (1) year and Seller will pay rent to Agency in the amount
of Eight Thousand Dollars ($8,000) per month, but not less than a total of One Hundred
Thousand Dollars ($100,000) ("Rent"), for the purpose of allowing Seller to continue to
operate the School on the Property during the period in which Seller will be relocating
the School to the Relocation Site, and
WHEREAS, the Agency intends to develop a multifamily affordable housing
project on the Property to implement the Agency's goals and objectives under the
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Resolution No 08-006
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Community Redevelopment Law (California Health and Safety Code Section 33000, et
seq) ("CRL"), 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 Sections 33334.2, et seq , and 33413 of the CRL, and
WHEREAS, the Seller has submitted to the Agency and the City Council of the
City of Poway (the "City Council") copies of the Agreements in a form executed by the
Seller; and
WHEREAS, the Purchase Price payable by Agency for the Property pursuant to
the Purchase Agreement is equal to the fair market value of the Property, as determined
by an appraisal of the Property, plus an amount determined by the Agency and the
Seller to be sufficient to compensate Seller for all relocation assistance and other
benefits to iNhich Seller is entitled pursuant to California Government Code Section
7260, et seq and the regulations promulgated thereunder set forth at Title 25 California
Code of Regulations Section 6000, et seq (collectively, the "Relocation Laws"), and
WHEREAS, the Rent payable by Seller under the Lease Agreement is not less
than the fair market rental value of the Property; and
WHEREAS, pursuant to Sections 33430 and 33431 of the CRL, the Agency is
authorized, after a duly noticed public hearing, to lease the Property without public
bidding; and
WHEREAS, a joint public hearing of the Agency and City Council on the
proposed Agreements was duly noticed in accordance with the requirements of Health
and Safety Code Section 33431, and
WHEREAS, the proposed Agreement was available for public inspection prior to
the joint public hearing; and
WHEREAS, on February 5, 2008, the Agency and City Council held a joint public
hearing on the proposed Agreements, at which time the Agency 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 Agreements have been taken in an appropriate and timely manner; 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 of affordable housing for low and moderate income
households ("Implementation Plan"), and
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Resolution No 08-006
Page 3
WHEREAS, the Agreements will assist the Agency in meeting the objectives set
forth in the Implementation Plan by making the Property available for the development
of affordable multifamily housing units thereon, and
WHEREAS, the City Council has duly considered all terms and conditions of the
proposed Agreements and believes that the acquisition of the Property from Seller
pursuant to the Purchase Agreement and the lease back of the Property to Seller
pursuant to the Lease Agreement 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.
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
Property pursuant to the terms and conditions of the Lease Agreement is not less than
the fair market rental value of the Property
Section 3 The City Council finds and determines that, based upon substantial
evidence provided in the record before it, the Purchase Price to be paid by Agency for
the Property pursuant to the Purchase Agreement is not greater than the fair market
value of the Property plus a reasonable amount to compensate Seller for all relocation
assistance and benefits to which it is entitled under the Relocation Laws.
Section 4 The City Council hereby finds and determines that the use of Housing
Funds for the acquisition of the Property by Agency pursuant to the Purchase
Agreement and the lease back of the Property to Seller pursuant to the Lease
Agreement will be of benefit to the Project Area by making the Property available for
use as affordable housing.
Section 5 The City Council hereby finds and determines that the Agreements are
consistent with the provisions and goals of the Implementation Plan.
Section 6 The City Council hereby consents to the Agency's approval of the
Agreements, and the Agency's purchase of the Property pursuant to the Purchase
Agreement and lease back of the Property to Seller pursuant to the Lease Agreement.
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Resolution No 08-006
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Section 7 This Resolution shall take effect from and after its date of adoption
ADOPTED, SIGNED AND APPR ED this 5th day of February, 2008
ATTEST
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STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO)
I, L Diane Shea, City Clerk of the City of Poway, do hereby certify the foregoing
Resolution No 08-006 was duly adopted by the City CounCil of the City of Poway at a
meeting of said City Council held on the 5th day of February, 2008, and that it was so
adopted by the following vote
AYES BOYACK, EMERY, HIGGINSON, REXFORD
NOES. NONE
ABSENT CAFAGNA
DISQUALIFIED' NONE ~~
L. Diane Shea, City Clerk
City of Poway
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