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HomeMy WebLinkAbout003-01RESOLUTION NO. 3-2001 APPROVING EXECUTION OF A DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN BRIDGE HOUSING CORPORATION AND THE COMMUNITY DEVELOPMENT AGENCY OF THE TOWN OF DANVILLE AND CONSENTING TO EXECUTION OF THE AGREEMENT BY THE COMMUNITY DEVELOPMENT AGENCY WHEREAS, the Town Council (the "Town Council") of the Town of Danville (the "Town") adopted the Redevelopment Plan (the "Redevelopment Plan") for the Downtown Redevelopment Project (the "Project") on July 14, 1986 by Ordinance No. 94, establishing the Downtown Redevelopment Project Area (the "Project Area"); and WHEREAS, the Community Development Agency of the Town of Danville (the "Agency") is vested with responsibility pursuant to the Community Redevelopment Law (Part 1 of Division 24 of the Health and Safety Code of the State of California) (the "Law") to implement the Redevelopment Plan for the Project Area; and WHEREAS, the Agency has adopted a five-year implementation plan for the Project Area in accordance with Section 33490 of the Law (the "Implementation Plan"); and WHEREAS, to cause the mdevelopment of property owned by the Agency on Laurel Drive and Hartz Way in the Project Area in furtherance of the Redevelopment Plan and the Implementation Plan, the Agency and the Town desire to enter into a Disposition and Development Agreement (the "DDA") with BRIDGE Housing Corporation (the "Developer"), a copy of which is on file with the City Clerk; and WHEREAS, among other matters, the DDA provides for the disposition of approximately 2'7- acres of land owned by the Agency (the "Agency Property") to the Developer, and for the redevelopmerit by the Developer of the Agency Property with a multi-family rental housing project for senior citizens, with rents limited to households of very low, low and moderate income (the "Development"); and WHEREAS, redevelopment of the Agency Property pursuant to the DDA would serve major Redevelopment Plan and Implementation Plan goals and objectives by directly redeveloping an underutilized and blighted property, enhancing the physical environment of the Project Area, and providing additional affordable housing within the Project Area; and WHEREAS, the DDA provides for disposition of the Agency Parcel to the Developer only if the Town, in its discretion, grants specified land use entitlements and approves the necessary documentation under the California Environmental Quality Act for the Development; and WHEREAS, the Agency has placed on file a copy of the DDA and the summary called for in Section 33433 of the Law (the "Section 33433 Stmanary"), and has made the DDA and the Section 33433 Summary available for public inspection and copying pursuant to Health and Safety Code Section 33433; and WHEREAS, the Town Council and the Agency have conducted a duly noticed public hearing on the DDA pursuant to Section 33433 of the Law for the purpose of receiving the input and comments of the public on the DDA; and WHEREAS, under the Law the Agency is required to impose rent and occupancy restrictions on the Development in connection with the loan of the Agency' s Housing Funds; and WHEREAS, a Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement") has been prepared to implement this requirement of the Law; and WHEREAS, the DDA anticipates that construction of the Development will also be financed by a loan of the proceeds of bonds subject to further action by the Agency (the "Agency Bond Loan"). If made, the Agency Bond Loan will be secured by a deed of trust in first position on the Property (the "Bond Deed of Trust"); and WHEREAS, the terms of the Agency Bond Loan will require subordination of the Regulatory Agreement to the Bond Deed of Trust; and WHEREAS, Section 33334.14(a) of the Law requires certain findings to be made by the Agency prior to subordination of the Regulatory Agreement; and WHEREAS, through this Resolution, the Town Council desires to make the findings and grant the consents required by Sections 33433, 33413 and 33334.14 of the Law in connection with Agency and Town Council approval of the DDA; and WHEREAS, the Agency and the Town Council have determined that development of the housing project on the Agency Property pursuant to the DDA is consistent with the Town's General Plan and the Redevelopment Plan. Specifically, pursuant to Government Code Section 65402, the Planning Commission of the Town has found that the disposition of the Agency Parcel and construction of the housing project in accordance with the DDA is consistent with the Town's General Plan; and WHEREAS, by staff report accompanying this Resolution and incorporated into this Resolution by this reference (the "Staff Report"), the Town Council and Agency have been provided with additional information upon which the findings and actions set forth in this Resolution are based; now, therefore, be it RESOLVED by the Danville Town Council that: 1. The recitals contained in this Resolution (the "Recitals") are accurate and have formed the basis, in part, for the Town Council's findings and actions set forth below. PAGE 2 OF RESOLUTION NO. 3-2001 2. Pursuant to Section 33433 of the Law, the Town Council hereby finds that the consideration to be given by the Developer under the DDA is not less than the fair reuse value of the Agency Parcel at the use and with the covenants, conditions, and development costs authorized by the DDA for redevelopment of the Agency Property. This finding is based on the facts and analysis set forth in the Recitals, the Staff Report and the Section 33433 Summary accompanying this Resolution. 3. Pursuant to Section 33433 of the Law, the Town Council hereby finds that the conveyance of the Agency Property and the redevelopmerit of the Property pursuant to the DDA will assist in the elimination of blight in the Project Area and is consistent with the Implementation Plan. These findings are based on the facts and analysis set forth in the Recitals, the Section 33433 Summary and the Staff Report accompanying this Resolution. 4. Pursuant to Section 33433 of the Law and based on the tindings set forth in Sections 2 and 3 of this Resolution, the Town Council hereby approves the DDA and all ancillary documents; approves execution by the Ageney Chairperson or Executive Director of the DDA and all ancillary documents, on behalf of the Agency, in substantially the form on file with the Agency Secretary and City Clerk, with such changes as are approved by the Agency signatory (suCh approval to be conclusively evidenced by the execution of the DDA); approves execution by the Mayor or Town Manager of the DDA and all ancillary documents, on behalf of the Town, in substantially the form on file with the Agency Secretary and City Clerk, with such changes as are approved by the Town signatory (such approval to be conclusively evidenced by the execution of the DDA); and approves the grant of the Agency Parcel by the Agency pursuant to the provisions of the DDA, including the condition that the Developer first obtain the Planning Approvals (which may be granted or denied in the Town's policy discretion). 5. Expenditure by the Agency of Housing Fund deposits for this project will serve the purposes of Section 33334.2 of the Law, as well as the goals and objectives of the Plan, by improving and increasing the community' s supply of affordable housing. 6. The Agency intends to apply the housing units to be developed pursuant to the DDA toward satisfaction of its Project Area housing production obligation under Section 33143(b) of the Law in the manner permitted by Section 33413 (b)(2)(A)(ii). 7. Based on the information and analysis included in the Staff Report and otherwise in the record before the Agency, the Agency hereby approves the subordination of the Agency Regulatory Agreement to the deeds of trust for the Construction Loan and Permanent Loan for the project and finds that an economically feasible alternative method of financing the acquisition of the project on substantially comparable terms and conditions to the Bond Loan, but without subordination, is not reasonably available° 8. Nothing in this Resolution shall affect the Town Council's policy discretion in granting or denying the Planning Approvals. PAGE 3 OF RESOLUTION NO. 3-2001 APPROVED by the Danville Town Council at a regular meeting on January 16, 2001, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Doyle, Waldo, Arnerich, Greenberg, None None None Shimansky APPROVED AS TO FORM: CITY ATTORNEY ATTEST: CITY CLERK PAGE 4 OF RESOLUTION NO. 3-2001