Res 10-008 RESOLUTION NO. 10-008
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POWAY, CALIFORNIA
APPROVING SPECIFIED EXPENDITURES OF AGENCY LOW AND MODERATE
INCOME HOUSING FUND MONIES AND CONSENTING TO THE EXECUTION OF
NECESSARY DOCUMENTS IN CONNECTION WITH THE DEVELOPMENT OF
BRIGHTON PLACE
WHEREAS, pursuant to the California Community Redevelopment Law (Health
and Safety Code Section 33000 et se .; the "Redevelopment Law"), the City Council
(the "City Council") of the City of Poway (the "City") has adopted, and the Poway
Redevelopment Agency (the "Agency") is responsible for implementing the Amended
and Restated Redevelopment Pian for the Paguay Redevelopment Project Area
adopted by the City Council of the City of Poway by Ordinance No. 117 on January 12,
1984, as amended by Ordinance No. 414 on July 14, 1993, as amended by Ordinance
No. 439 on January 13, 1995, as amended by Ordinance No. 593 on January 1, 2004,
as amended by Ordinance No. 605 on September 16, 2004, as amended by Ordinance
No. 611 on November 25, 2004, as amended by Ordinance No. 641 on August 17,
2006, and as further amended by Ordinance No. 657 on July 12, 2007 (as amended
from time to time, the "Redevelopment Plan"); and
WHEREAS, to assist in implementing the Redevelopment Pian, the Agency on
December 15, 2009 adopted a five-year implementation plan (the "Implementation
Plan") pursuant to Section 33490 of the Redevelopment Law; and
WHEREAS, in furtherance of the Paguay Redevelopment Plan, the
Implementation Plan, and the Poway General Plan, the Agency desires to cause
development of approximately seventy-seven (77) units of affordable multifamily rental
housing and all related landscaping and amenities (the "DevelopmenY'), on the
approximately 4-acres of land located east of Midland Road between Edgemoor Street
and Adrian Street, Assessor's Parcel Numbers: 314-220-69 and 314-220-70, within the
Paguay Redevelopment Project Area (the "Property"); and
WHEREAS, pursuant to an extensive developer selection process, the Agency
selected Brighton Place, L.P., (the "Developer") to construct the Development. In
accordance with Sections 33431 of the Redevelopment Law, the Agency entered into
that certain Disposition and Development Agreement dated as of March 3, 2009 (the
"DDA") with the Developer, pursuant to which, amo�g other matters:
1. The Agency agreed to lease the Property to the Developer
pursuant to the terms, covenants, and conditions of the DDA;
2. The Agency agreed to loan up to Four Million Three Hundred
Eighty-One Thousand Dollars ($4,381,000) of Low and Moderate Income Housing Fund
monies (the "Agency Loan") to be applied toward payment of eligible costs for the
Development to filf the financial feasibility gap between the reasonably anticipated costs
of the Development and the reasonably available private sector debt and equity
revenues to pay such costs;
Resolution No. 10-008
Page 2
3. The DQA requires the Agency Loan to be reduced by any additional
leverage, funds that may be secured by the Developer, including but not limited to
assistance from the Federal Home Loan Bank Affordable Housing Program Funding
and Low Income Housing Tax Credits; and
WHEREAS, the Agency and the Developer subsequently entered into that
certain Predevelopment Loan Agreement dated as of June 16, 2009 (the
"Predevelopment Loan AgreemenY') under which the Agency agreed to provide up to
Eight Hundred Thirty Two Thousand Dollars ($832,000) of Housing Special Program
Fund assistance (the "Predevelopment Loan") to fund specified predevelopment
activities associated with the Development. Under the terms of the Predevelopment
Loan Agreement, if the Agency and the Developer execute a Ground Lease and close
on the Agency Loan, the Predevelopment Loan Promissory Note associated with the
Predevelopment Loan will be cancelled and any amounts disbursed under the
Predevelopment Loan will be considered a first disbursement of the Agency Loan; and
WHEREAS, the Developer has requested additional Agency assistance of up to
One Million Dollars ($1,000,000) to assist the Developer in filling the feasibility gap for
the Development; and
WHEREAS, the Developer has secured an allocation of Seven Hundred Sixty
Thousand Dollars ($760,000) of Federal Home Loan Bank Affordable Housing Program
Funding to further assist the Developer in filling the feasibility gap for the Development;
and
WHEREAS, the Agency desires to assist the Developer ciose the feasibility gap
by committing an additional amount of up to One Million Dollars ($1,000,000) for
construction of the Development (the "Additional Agency Assistance") and by agreeing
not to reduce the Agency Loan by any additional leverage funds that may be secured by
the developer. The Additional Agency Assistance will consist of:
1. One Hundred and Sixty-Eight Thousand Doliars ($168,000) from
the Agency s unappropriated Low and Moderate Income Mousing Fund; and
2. Committing Eight Hund�ed and Thirty-Two Thousand Dollars
($832,000) of the Predevelopment Loan funds to increase the principal amount of the
Agency Loan;
WHEREAS, the Agency and the City Council by Resolutions No. R-09-04
and Resolution No. 09-010 respectively, adopted on March 3, 2009, have made findings
that the ground lease of the Property to the Developer for the construction and
operation of the Development and the funding of the Predevelopment Loan and Agency
Loan and construction of the Development will serve the purposes of the
Redevelopment Law, the Redevelopment Plan, the Implementation Plan, and the City
Generai Plan by eliminating blighting conditions and increasing the supply of affordable
housing units in the Paguay Redevelopment Project Area; and
WHEREAS, the City and the Agency have complied with the requirements of the
California Environmental Quality Act and the applicable state and local implementing
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Page 3
guidelines (collectively "CEQA") through the certification of a Negative Declaration
(including an initial study) for the Development (the "Negative Declaration") certified by
the City Councif on March 3, 2009, copies of which are on file with the City Clerk and
the Agency Secretary; and
WHEREAS, the provision by the Agency of the Additional Agency Assistance
does not affect the lease price for the Property pursuant to the DDA and therefore no
further reports, findings, or other actions are required under Health and Safety Code
Section 33433;
WHEREAS, the following additional materials (collectively, the "Supporting
Documents") have been presented to and considered by the City Council in support of
the findings and approvals set forth in this Resolution: (1) the staff report of February
16, 2010 accompanying this Resolution; (2) the DDA; (3) the Predevelopment Loan
Agreement; and (5) the Certified Negative Declaration. The Supporting Documents are
hereby incorporated by reference in this Resolution and, together with the above recitals
(the "Recitals"), form the evidentiary basis and establish the analytical route for reaching
the ultimate findings and conclusions contained in this Resolution.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Poway, that the foregoing Recitals are true and correct and have served, together with
the Supporting Documenfs, as the basis for the approvals set forth below.
BE IT FURTHER RESOLVED that the City Council approves the funding of the
Additional Agency Assistance to assist the Developer close the feasibility gap for the
Devetopment.
BE IT FURTHER RESOLVED, that the City Council consents to issuance by the
Agency Executive Director of a commitment letter to the Developer evidencing the
Additional Agency Assistance.
BE IT FURTHER RESOLVED, that the City Council consents to execution by the
Agency Executive Director of an amendment to the Predevelopment Loan Agreement,
and an amendment to the DDA, and any ancillary documents required to effectuate the
purpose of this Resolution and to provide the Additional Agency Assistance.
BE IT FURTHER RESOLVED, that this Resolution shall take immediate effect
from and after its passage.
Resolution No. 10-008
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PASSED, ADOPTED AND APPROVED, by the Poway City Council at a
regular meeting thereof this 16th day of February, 2010.
� tsv�� . .
Don Higginson, Mayor
ATTEST:
l�—�����
nda . Troyan, MMC, Clerk
Resolution No. 10-008
Page 5
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN DIEGO )
I, Linda A. Troyan, MMC, Clerk of the City of Poway, do hereby certify under
penalty of perjury that the foregoing Resolution No. 10-008 was dully adopted by the
City Council at a meeting of said Council on the 16th day of February 2010, and that it
was so adopted by the following vote:
AYES: BOYACK, CUNNINGHAM, KRUSE, HIGGINSON
NOES: NONE
ABSENT: REXFORD
DISQUALIFIED: NONE
A Troyan, MMC, Cler
City oway