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HomeMy WebLinkAboutCC Resolution 9772 (Affordable Housing Units)CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLUTION NO. 9772 A RESOLUTION OF THE CITY COUNCIL APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT AMONG THE SAN RAFAEL REDEVELOPMENT AGENCY, CONTINUUM HOUSING ASSOCIATES, AND BRIDGE HOUSING CORPORATION WHEREAS, the staff of the San Rafael Redevelopment Agency ("Agency") has presented to the City Council a proposed disposition and development agreement ("DDA") with Continuum Housing Associates ("Developer") and BRIDGE Housing Corporation ("BRIDGE") providing for the Agency to lease to Developer pursuant to a ground lease certain property on "C" Street between Second and Third in downtown San Rafael (the "Property") and for Developer's development thereon of approximately 60 housing units, 40% of which would be affordable to lower income persons. WHEREAS, the DDA also provides for BRIDGE Housing Corporation to enter into a monitoring agreement with the Agency providing for BRIDGE to monitor certain aspects of the development Developer will construct on the Property. WHEREAS, the Property is in the area governed by the Amended and Restated Redevelopment Plan for the Central San Rafael Redevelopment Area (the "Plan"); WHEREAS, development of the Property as contemplated by the DDA will assist in the elimination of blight in the area governed by the Plan by providing for new development on currently vacant and formerly blighted lands and will provide at least 24 units of housing for lower income persons. WHEREAS, the DDA is consistent with the Agency's implementation plan in that development of housing on the Property is a project specifically contemplated by that implementation plan. WHEREAS, based on the Agency staff report and the Section 33433 summary, the terms on which the Agency will ground lease the Property to the Developer will, over the 50 years of the initial term of the lease, result in rent payments to the Agency totalling approximately $2,316,700, an amount which, on a present value basis, is less than the estimated current fair market value of the Property for its highest and best uses under the Plan; that fair market value is estimated to be in the range of $909,000 to $1,127,000. 141101.P50 01/14/97 9RI nu 1 "sdhlG�o-) WHEREAS, based on the Agency staff report and the Section 33433 summary, the ground rent payable under the lease is not less than the fair reuse value of the Property of approximately $558,735 given the fact that the DDA and the ground lease require that 20% of the units to be developed on the Property remain affordable for the 50 year initial term of the lease to persons whose incomes do not exceed 50% of area median income and another 20% of the units remain affordable for the term of the lease to persons whose incomes do not exceed 60% of area median income. WHEREAS, a negative declaration has been prepared and approved for the development of the Property. WHEREAS, the City Council and the Agency have held a public hearing on the DDA duly noticed in accordance with Health and SAfety Code Section 33433. THEREFORE, the City Council of the City of San Rafael hereby resolves as follows: Section 1. Based on the City Council staff report, the Section 33433 summary, and evidence submitted at the public hearing on the DDA, the City Council hereby finds: (a) The development of the Property in accordance with the DDA will assist in the elimination of blight in the area governed by Plan. (b) The development of the Property in accordance with the DDA will provide affordable housing for lower income persons. (c) The development of the Property in accordance with the DDA will be consistent with the Agency's implementation plan. (d) The lease payments the Developer will pay for the Property are at least equal to the fair reuse value of the Property taking into account the covenant, conditions, and restrictions imposed on the Developer pursuant to the DDA and lease including the requirement that for the 50 year initial term of the lease 20% of the units must be rented at affordable rents to persons whose incomes do not exceed 50% of median income and another 20% must be rented at affordable rents to persons whose incomes do not exceed 60% of median income. 141101.P50 01/14/97 -2- Section 2. The City Council hereby approves the DDA. I, JEANNE M. LEONCINI, hereby certify that the foregoing was duly and regularly introduced and adopted at a special joint meeting of the City Council with the Redevelopment Agency held on the 21st day of January, 1997, by the following vote: AYES: COUNCILMEMBERS: Heller, Miller, Phillips & Vice -Mayor Cohen NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Mayor Boro 5 JEANN �M.. LEONCINI, ity C erk 141101.P50 01/14/97 -3-